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Table of Contents Capital Budget fy2013 adopted budget Table of Contents Introduction ������������������������������������������������������������������������������������������������������������������������������������������������������������������������3 The County’s Capital Portfolio ��������������������������������������������������������������������������������������������������������������������������������������������� 3 The County’s Capital Budget Planning and Prioritization ������������������������������������������������������������������������������5 Financing for the Capital Budget ��������������������������������������������������������������������������������������������������������������������������������6 Major Capital Projects ����������������������������������������������������������������������������������������������������������������������������������������������������8 Replacing the Sellwood Bridge �������������������������������������������������������������������������������������������������������������������������������������������� 8 East County Courthouse���������������������������������������������������������������������������������������������������������������������������������������������������������� 9 U2 Block Health Headquarters ������������������������������������������������������������������������������������������������������������������������������������������10 New Countywide Budget System ��������������������������������������������������������������������������������������������������������������������������������������11 Downtown County Courthouse and Hawthorne Ramp Relocation ��������������������������������������������������������������������12 Capital Projects by Fund ��������������������������������������������������������������������������������������������������������������������������������������������� 13 Road Fund (1501) �������������������������������������������������������������������������������������������������������������������������������������������������������������������13 Bicycle Path Construction Fund (1503) �������������������������������������������������������������������������������������������������������������������������14 Willamette River Bridge Fund (1509) ����������������������������������������������������������������������������������������������������������������������������15 Financed Projects Fund (2504) �����������������������������������������������������������������������������������������������������������������������������������������16 Capital Improvement Fund (2507) ����������������������������������������������������������������������������������������������������������������������������������17 Capital Acquisition Fund (2508) ���������������������������������������������������������������������������������������������������������������������������������������20 Asset Preservation Fund (2509)����������������������������������������������������������������������������������������������������������������������������������������20 Information Technology Fund (3503) ����������������������������������������������������������������������������������������������������������������������������22 Photo Credit: Morrison Bridge by Jeff Kubina www.multco.us/budget • Capital Budget 1 Capital Budget fy2013 adopted budget (this page intentionally left blank) www.multco.us/budget • Capital Budget 2 Capital Budget fy2013 adopted budget Multnomah County’s Capital Budget funds improvements and construction Introduction on County-owned buildings, roads, Willamette River bridges, and major new information technology systems. The County proposes to spend $159.0 million on capital improvements during FY 2013, much of which will be spent on a replacement for the Sellwood Bridge. Other major non-routine projects include work on the Downtown County Courthouse as well as the new Countywide budget system. Routine projects have a budget of $24.2 million, while non-routine projects have budgeted expenditures of $134.8 million. The table below shows routine and non-routine capital expenditure by fund: Routine Non-routine Fund Total Projects Projects Roads Fund 1501 $1,185,000 $2,580,000 $3,765,000 Bicycle Path Fund 1503 50,000 0 50,000 Bridge Fund 1509 1,600,000 100,000 1,700,000 Financed Projects Fund 2504 0 3,531,283 3,531,283 Capital Improvement Fund 2507 13,983,720 14,609,080 28,592,800 Capital Acquisition Fund 2508 0 1,424,943 1,424,943 Asset Preservation Fund 2509 7,740,158 0 7,740,158 Sellwood Bridge Replacement 0 105,513,600 105,513,600 Fund 2511 Information Technology Fund 3503 0 6,725,557 6,725,557 Total $24,558,878 $134,484,463 $159,043,341 The County’s Multnomah County owns or leases over 130 buildings totaling over 3.2 million Capital Portfolio rentable square feet. County-run facilities include: • 19 libraries • 7 health clinics and 13 school-based health centers • 4 senior service centers • 2 jails in operation • 3 courthouses • Facilities where citizens vote, pay taxes and obtain marriage licenses • Administrative buildings These facilities house services that the County provides directly to the public. In addition to facilities, the County is also responsible for the maintenance, operation and capital improvement of six Willamette River bridges and 300 miles of County road-, bicycle- and pedestrian-ways1. 1 Capital assets are assets or improvements to assets that have a useful life of 3 or more years. Equipment is capitalized at $5,000 per item and buildings, building improvements, land, roadways, bridges, and purchased or internally developed software is capitalized at $100,000. www.multco.us/budget • Capital Budget 3 Capital Budget fy2013 adopted budget The County’s bridges and roadways are significant components of the regional transportation system. Overlapping jurisdictions are responsible for maintaining most roads and several major Willamette River bridges within the County. The County maintains roads in unincorporated areas, most of which are in eastern Multnomah County. The County also maintains more than 200 IT systems operating on more than 5,000 computers, laptops, and tablets to support the organization’s work. The County includes major IT systems in the capital planning process, due to their importance, cost and scope. The County has an estimated deferred maintenance and seismic liability of $226.1 million for County buildings, of which $204.8 million is seismic liability. The County estimates that it has a further $75.9 million in seismic liability for the Broadway, Burnside, Morrison and Hawthorne bridges. Addressing the deferred maintenance backlog and seismic liability will require new sources of revenue to replace or repair County assets. www.multco.us/budget • Capital Budget 4 Capital Budget fy2013 adopted budget The prioritization and planning methods for projects in Multnomah County’s The County’s Capital Budget depend on the implementing department and the project funding. In FY 2012, the Department of County Assets (DCA) was created Capital in part to ensure the effective management of the County’s capital assets. DCA is responsible for Facilities and Property Management and Information Budget Technology, while Department of Community Services (DCS) is responsible for Land Use and Transportation Projects. The following summarizes planning Planning and and prioritization strategies by capital group: • Facilities and Property Management projects are in the Capital Prioritization Improvement Fund (2507) and the Asset Preservation Fund (2509). Staff work with departments to identify facilities needs and prioritizes projects through a five-year Capital Improvement Plan. Funds are assigned first to highest-scoring projects and scoring criteria are: fire/ life/safety, building envelope integrity, legal compliance, major system maintenance, operational savings, project combinations/efficiencies, work place environment, outside funding, tenant moves and building disposition potential. In FY 2013, staff will continue FY 2012 work on a strategic plan that will influence future capital project planning and prioritization. The plan will develop the County’s long-term capital asset strategy and propose transactions and capital projects to make the County’s current portfolio financially sustainable for the long term. • Information Technology (IT) projects are in the Financed Projects Fund (2504), the Capital Acquisition Fund (2508), and the Data Processing/ Information Technology Fund (3503). Staff work with departments to plan for IT system improvements which will be capitalized. The Information Technology Advisory Board, made up of management staff from all County departments, prioritizes department requested projects based on their ability to reduce risk or liability, to achieve quantifiable returns on investment, and to improve internal and external customer service. • Land Use and Transportation projects are in the Roads Fund (1501), Bicycle Path Fund (1503), the Willamette River Bridge Fund (1509) and the Sellwood Bridge Replacement Construction Fund (2511). Staff use a twenty-year long-term Capital Improvement Plan to identify and rank transportation improvement needs for County roadways and bridges. Land Use and Transportation staff use safety, congestion relief, support of regional land use goals, the availability of project-specific funding, and community support as criteria to evaluate projects for inclusion in the Capital Budget. After prioritizing and aligning projects with long-term plans, these three groups develop program offers for review,
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