Scenario 2 - $165 gate, $300 PD, and strengthening the reserve

In the past, the District has failed to develop a comprehensive plan to fund the necessary replacement of equipment and vehicles. The same is true for upkeep and repairs on District buildings and facilities.

All departments were working with decades-old equipment that broke down with alarming frequency. Unfortunately, in some cases, they still are.

This is the only street sweeper owned by the District. It is shown mid-repair here. It is a 1980s model that flings debris to the sides instead of vacuuming and removing it from the roadway.

Fiscal responsibility requires that we anticipate and plan for these replacements. Under the General Manager's direction, Staff worked closely to develop a 20-year Capital Improvement Plan (CIP). This CIP assumes:

• All departments and divisions are included
• The plan will serve as a budgetary guideline.
• The plan does not attempt to predict future price increases
• Staff will refine actual costs through estimates as each we get closer to each replacement

The Roads Assessment also has a structural deficit that has not yet been addressed, and this is compromising the road crew's ability to do their jobs efficiently.

As part of assessing the road department needs, we have to also assess and prioritize the condition of the water mains that run under the roads. It makes no sense to repave the roads, only to destroy them when we replace the underlying water lines. We are working to hire a competent firm to assess and prioritize the 110+ mile water system and anticipate having that process completed within the next two years.

We intend to use excess reserves to meet infrastructure capital needs, particularly in the roads department, in anticipation of beginning major infrastructure rehabilitation projects in the near future.