Title
Resolution Regarding Approval of FY 2021 through FY 2025 Capital Improvement Plan
Body
Agenda of: February 26, 2020
Item No.: 2020-056
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: February 12, 2020
RE: Resolution Regarding Approval of FY 2021 through FY 2025 Capital Improvement Plan
MOTION
Upon recommendation of Suzanne Coffey, Chief Planning Officer, The Board of Directors for the Great Lakes Water Authority (GLWA), Adopts the resolution supporting the Capital Improvement Plan (CIP) for Fiscal Years 2021 through 2025 and the Chief Executive Officer to approve the five year Capital Improvement Plan (CIP) for Fiscal Years 2021 through 2025, 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 2021 through FY 2025 Capital Improvement Plan identifies $935.4 million of water system capital improvements and $739.4 million of sewer system improvements. Given that GLWA adopts a two-year budget, it is recommended that FY 2021 and FY 2022 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 15, 2019
December 17, 2019
Full Board Reviewed Final Proposed CIP and Referred to Capital Planning Committee
January 22, 2020
The November 19, 2019 Capital Planning Committee Meeting was canceled, the content was addressed during December 17th committee meeting.
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.