HomeMy WebLinkAboutTIC 2020-05-18 Item 2A - COVID-19 - Financial Impacts: 2020 Capital Improvement ProgramCity of Tukwila Allan Ekberg, Mayor
Public Works Department - Henry Hash, Director
INFORMATIONAL MEMORANDUM
TO: Transportation and Infrastructure Committee and City Council
FROM: Henry Hash, Public Works Director
Vicky Carlsen, Finance Director
BY: Gail Labanara, Public Works
CC: Mayor Allan Ekberg
DATE: May 15, 2020
SUBJECT: Financial Impacts of COVID-19
2020 Capital Improvement Program (CIP)
ISSUE
Review status of 2020 CIP projects in response to the financial impacts of the COVID-19 pandemic.
BACKGROUND
At the May 11, 2020 Committee of the Whole meeting, Council reviewed the financial impacts of the COVID-19 pandemic,
provided direction on the expected financial gap in 2020, and provided input on the tools available to close this gap. One of the
tools is to reduce, defer, or cancel public work projects. Some budgeted projects have already been cancelled as part of the
Phase 1 and 2 reductions, these include $1.2 million savings by cancelling the 2020 Overlay and Repair Project and Phase 2
reductions included $210k from the 303 Facilities funds, which eliminated the previously planned City Hall siding and roof
repairs as well as significantly reducing the Citywide facility planning scope.
On May 11, the City Council requested additional information related to capital project funding. Below is an analysis of capital
projects in the residential street, arterial street, and general government improvement funds. The analysis includes description of
funding, expenditures to date, expenditures committed for the remainder of this year, Phase 1 and 2 reductions, and a list of
projects for Council discussion and decisions. Some of these projects are currently planned to be reviewed in Council
Committees, for example the proposed Citywide Facility Plan scope is to be reviewed in the Finance Committee at the end of
May and the 42nd Ave S. Bridge design is currently out for proposals and planned for Transportation and Infrastructure
Committee in June.
The Transportation and Infrastructure committee has been asked to review these projects prior to the full Council review
planned at the May 18 Regular meeting.
ANALYSIS
The attached spreadsheet lists the active 2020 projects from three funds in the CIP: 103 Residential Streets, 104 Bridges
& Arterial Streets, and 303 Facilities. Project descriptions and status are listed.
Column A - Description of funding, either by City or has grant/dedicated funding.
Column B - Estimate of City funded budget/expenditures in 2020.
Column C - Estimate of grant/dedicated revenue in 2020. One anomaly is W Valley Hwy, line 8, where the CIP has
$3.1 m construction budgeted in 2020, but we are still in design, so only $600k is listed in this
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2020 CIP Reductions
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spreadsheet for grant funded expenditures in 2020. Dedicated revenue includes REET, parking taxes,
& MVTF, which are all estimated to be reduced due to COVID-19.
Column D — 2020 expenditures to date.
Column E — Expenditures committed for 2020.
Column F — Phase 1 reductions, showing the construction funds for the 2020 Overlay & Repair Project.
Column G — Funding for Traffic Calming on hold.
Column H — Council Policy Decision List — Go/No Go, could be used for 2020 reductions
Column I — Available column for Council discussion/decision.
Lines 3 and 12 include projects that are completely grant funded, but we have not yet obtained grants, so they cannot
be included as potential reductions for City funding.
Decision Points
Below are the possible decision points for the City Council. Decisions on capital projects do not have to be made at the
May 18, 2020 Regular meeting, rather, decisions on each capital project could be made at a later date when the City
has received data on sales tax, admissions tax, and utility tax revenue at the end of June. These capital projects and
review is part of the tools and decision tree matrix discussed previously.
Fund 103 — Residential Streets
There are currently no savings available in the 103 Fund due to already committed projects and waiting for
reimbursement from Seattle City Light for 42nd Ave S Phase III and 53rd Ave S. The Traffic Calming Project has been
put on hold and the $350,000 unspent in this project is currently needed to maintain a positive ending fund balance. An
Interfund Loan Repayment is listed in this fund to insure a positive fund balance.
Fund 104 —Arterial Streets
There are many projects listed which are grant funded or use dedicated revenues. There are some projects which have
possible savings due to unspent funds. Some of these costs and decisions could be delayed to a future date, such as
the Overlay and Repair Project and 42nd Ave S Bridge design.
Strander Blvd Extension (line 7) — this is the second of two mandatory payments to repay the state grant for design
funds. Most of these funds ($475,000) is from dedicated revenues.
42nd Ave. S. Bridge (line 11) — is for the 30% design of the 42nd Ave S Bridge and shows the authorized amounts of
$320k in City funding and $680k from the new Solid Waste utility tax dedicated to streets for a total $1 million. This
project is currently out for proposals and is planned for Transportation and Infrastructure review in June. This project
was approved by Council earlier this year in an effort to prepare for possible federal and state funds. Similar to the last
recession, there is a possibility of a Federal infrastructure bill that would be used for "shovel ready' projects, such as
this. If Council chooses to delay the 30% design, the City will then apply in 2021 for the next round of BRAC funding.
The City was unsuccessful in seeking BRAC funds in 2017 and in 2019. The possible savings would include the $320k
in general funds and the $680k solid waste utility tax designated for streets, which would then to be dedicated by
Council for other 104 CIP projects. As a reminder, Ordinance No. 2609, which increased solid waste utility tax from 6%
up to 16% effective July 1, 2020, dedicated taxes above the original 6% be dedicated to road maintenance and road
related projects.
Overlay and Repair 2020 (line 13) — this project was cancelled during the Phase 1 reductions for a savings for $1.2
million in 2020.
2020 Bridge Inspections (line 15) — there is $335k budgeted in 2020, which covers the 42nd Ave S Bridge In-depth
Inspection for $39,884 and the retainage required to the contractor for the S 196th St Bridge Repair. The remaining
balance that could be reduced is $20k from Line 15 and $200k from Line 17, which cancels the painting of the S 119th
St Pedestrian Bridge in the Allentown/Duwamish neighborhood.
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Info Memo
2020 CIP Reductions
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ADA Improvements (line 18) — could be cancelled for this year and the budget reduced by $50k.
The Annual Signal Program (line 19) — already includes a 50% reduction of $62.5k, savings which cancels some
maintenance and purchase of replacement parts in 2020.
Walk & Roll Plan update (line 22) — with the required update to the Transportation Element of the Comprehensive Plan
(line 21), the City had scheduled an update to the Walk & Roll Plan for $75k, but it is not required by law.
TIB Channelization Study (line 23) — is the balance of $25k still remaining from the original $100,000 budgeted.
303 Fund - Facilities
For the 303 Fund, the City had $656k beginning fund balance for facility improvements.
TCC siding repairs (lines 28) — the Council's adopted budget had designated $200k to complete this maintenance
projects. The City received two quotes and the new budget is estimated at $120k. There are savings of $80k from this
reduced bid and then the current estimate $120k listed as decision points.
City Hall Siding repairs (line 28+) — as part of Phase 2 reductions, the city reduced this fund by $100k to reflect the
cancelation of this project.
2020 Facilities Study (line 291 — as part of Phase 2 reductions, this project was reduced by $110k, leaving $190k as
another decision point for the 2020 Facilities Study/Seismic. This project would provide an updated seismic study for
our remaining city facilities as well as preliminary study for use of the facilities once the Justice Center is opened in the
fall. This study and scope is currently planned to be reviewed by the Finance Committee at the end of May.
FISCAL IMPACT
The attached table provides a summary of the current status and funding of all projects in the 103, 104 and 303 funds
and the possible available funds by cancelling, modifying or deferring these projects.
RECOMMENDATION
Discussion only or possible recommendation for full Council for review for May 18 Regular meeting.
Attachment: 2020103, 104, & 303 CIP Projects
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Project
Fund No. Protect
Status
2020 CIP Projects
103, 104, & 303 Funds
A B
City Funding
Funding 2020 Budget
C
D E
F
G H I
Grant/
2020
Phase 1 & II
103 Fund
Dedicated Rev
Expenditures Committed
Reductions
Balance Policy Decision Council
Funding
to Date for 2020
5/11/2020
Reduction Go / No Go? Decision
103 Fund - Residential Streets
1
103
99410303
42nd Ave S Phase III
Physically completed, final payments
City
$ 378,000
$ 24,102
$ 353,898
2
103
99110301
53rd Ave S
Utility undergrounding, Comcast next
Grant Funded
399,000
120,140
278,860
3
103
Various
(3) Safe Routes to School Projects
Not started, seeking grants, no $ to date
Grant Funded
$ 5,301,000
4
103
81910301
Traffic Calming
On hold due to negative fund balance
City
400,000
9,564
53,504
$ 350,000
5
103
Interfund Loan Repayment
Covers SCL expenditures for 42 & 53
City
336,932
Total 103 Fund $ 1,177,000
104 Fund - Arterial Streets
$ 153,806
$ 1,023,194
$ 350,000
6 104 104 Wages & Benefits Ongoing staff expenses City $ 485,383
$ 93,471 $ 391,912
7
104
98610403
Strander Blvd Extension
Closed, final 2020 grant reimbursement
City
147,362
$ 475,000
622,362
8
104
99310410
West Valley Hwy
Design funds only, underway
Grant Funded
600,000
60,237
539,763
9
104
91310407
BAR Bridge over Airport Way
Construction awarded 5/4/20
Grant Funded
-
2,614,000
17,861
2,596,139
10
104
91810404
42nd Ave S Bridge Replacement
In-depth bridge inspection
City
39,884
39,884
11
104
91810404
42nd Ave S Bridge Replacement
30% Design proposals due 5/19/20
City/WM tax
320,000
680,000
$ 1,000,000
12
104
9030404
S 144th St Bridge - Sidewalks
Not started, seeking grants, no $ to date
Grant Funded
-
227,000
13
104
92010401
Overlay & Repair 2020
Design underway, ready to bid, on hold
City
1,400,000
128,453
71,547
$ 1,200,000
14
104
82010403
Traffic Counts 2020
Ongoing, contract began 1/1/20
City
18,750
3,300
15,450
15
104
92010402
Bridge Inspections 2020
4 legally required bridge inspections
City
196,000
93,000
2,252
49,444
20,000
16
104
91710406
S 196th St/200th St Br Repair
Completed, retainage to be paid
City
1,304
16,000
17
104
91610407
S 119th St Pedestrian Bridge
Painting of pedestrian bridge on hold
City
200,000
18
104
91510405
ADA Improvements
ADA ramps at 53, 58, on hold w/ Overlay
City
50,000
50,000
19
104
82010404
Annual Traffic Signal
Ongoing, reduced by 50%, deferred maint.
City
125,000
2,549
59,951
62,500
20
104
11301302
Wetland & Envir Mitigation
Ongoing, required by permit
City
40,000
16,219
23,781
21
104
82010405
Transp Element of the Comp Plan
Not started, required by GMA, due by 2021
City
400,000
400,000
22
104
82010406
Walk & Roll
Update not started, on hold
City
75,000
75,000
23
104
81710404
TIB Channelization Study
Study completed, $25k balance remaining
City
25,000
25,000
24
104
Park Impact Fees Transfer to 301
Housekeeping transfer from 104 to 301
City
1,009,000
$ 325,646
1,009,000
$ 5,835,232
$ 1,200,000
$ 1,432,500
Total 104 Fund $ 4,331,379 $ 4,462,000
303 Fund - Facilities
25 Beginning Fund Balance Drawdown of fund balance $ 656,000
27
303
91930304
6300 Dry Fire Sprinkler System
Completed
City
30,000
$ 30,000
28
303
91630305
TCC Siding Repairs
Not started, 2 quotes received in 2019
City
200,000
$ 120,000
303
91630305
TCC Siding Repairs - Savings
Savings from bids
City
80,000
303
91630304
City Hall Siding Repairs
No started
City
100,000
$ 100,000
29
303
82030301
2020 Facilities Study/Seismic
RFPs in, not started
City
300,000
110,000
190,000
Total 303 Fund
$ 630,000
$ 30,000
$ -
$ 210,000
$ 390,000
Total 1 $ 1,822,500
Lines 3 & 12, not added in totals as completely grant funded and no grants to date.
Dedicated revenues include FEET, Parking tax, & MVFT
Grant funded
Line 11, Solid Waste Utility tax revenue may be reduced due to COVID-19
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