TITLE
Approval of FY 2020 through FY 2024 Capital Improvement Plan
BODY
Agenda of: February 27, 2019, March 7, 2019, March 13, 2019
Item No.: 2019-062
Time: Fiscal Years 2020 through 2024
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: February 14, 2019
RE: Approval of FY 2020 through FY 2024 Capital Improvement Plan
MOTION
Upon recommendation of Suzanne Coffey, Chief Planning Officer, the Board of Directors for the Great Lakes Water Authority adopts the resolution supporting the Capital Improvement Plan (CIP) for Fiscal Years 2020 through 2024 and for the Chief Executive Officer to approve the five year Capital Improvement Plan (CIP) for Fiscal Years 2020 through 2024, noting an affirmative vote of at least five (5) Board Members is necessary for approval of this Motion; and also authorizes the Chief Executive Officer to take such other action as may be necessary to accomplish the intent of this vote.
JUSTIFICATION
A capital improvement plan addresses the following objectives.
1. Identifies an organization’s priorities within available resources over a multiple year period.
2. Communicates the scope, funding, and timing to stakeholders, coordinating agencies, investors, and the public.
3. Encompasses stakeholder engagement in its development.
4. Aligns with strategic objectives of the organization including effective capital delivery and regulatory compliance at the lowest cost of capital investment.
BUDGET IMPACT
The FY 2020 through FY 2024 Capital Improvement Plan identifies $852.3 million of water system capital improvements and $733.6 million of sewer system improvements. Given that GLWA adopts a two-year budget, it is recommended that FY 2020 and FY 2021 be designated as a two-year capital budget for purposes of carrying out the CIP that coincides with GLWA adopted biennial operating budget (also referenced as the revenue requirement budget).
COMMITTEE REVIEW
Capital Planning Committee Reviewed Preliminary Drafts of the CIP
October 29, 2018
November 30, 2018
December 18, 2018
Full Board Reviewed Final Proposed CIP and Referred to Capital Planning Committee
January 23, 2019
The February 20, 2019 Capital Planning Committee Meeting was canceled, and the matter was referred back to the full Board of Directors for disposition.
APPROVAL REQUIRED
The Articles of Incorporation of the Great Lakes Water Authority requires an affirmative vote of at least five (5) members to approve the 5-year Capital Improvement Plan