Title
Resolution Regarding Approval of FY 2023 through FY 2027 Capital Improvement Plan
Body
Agenda of: February 23, 2022
Item No.: 2022-061
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Interim Chief Executive Officer
Great Lakes Water Authority
DATE: February 9, 2022
RE: Resolution Regarding Approval of FY 2023 through FY 2027
Capital Improvement Plan
MOTION
Upon recommendation of Jody Caldwell, Interim 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 2023 through 2027, and authorizes the Chief Executive Officer to approve the five year Capital Improvement Plan (CIP) for Fiscal Years 2023 through 2027, including the ten year outlook, 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 2023 through FY 2027 Capital Improvement Plan identifies $965.6 Million of water system capital improvements and $761.8 Million of sewer system improvements. Giving that GLWA adopts a two-year budget, it is recommended that FY 2023 and FY 2024 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
The Capital Planning Committee reviewed Preliminary Drafts of the CIP on October 19, 2021 and December 14, 2021. The full Board of Directors reviewed the Final Proposed CIP on January 26, 2022 and referred the CIP back to the Capital Planning Committee.
The Final Proposed CIP was presented to the Capital Planning Committee at its meeting on February 15, 2022. The Capital Planning Committee unanimously recommended that the GLWA Board adopt the Resolution and approves the FY 2023 through FY 2027 Capital Improvement Plan.
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.