Looks like you've started us out.

Thank you, Owen.

Good evening and welcome to the Monday, June 15th meeting of the Olympia City Council Finance Committee.

It's 4 30 p.m.

We have all three of us council members present and staff.

So an approval of the agenda for tonight.

Summit.

Second.

All right.

It's been moved and seconded to approve the agenda.

All in favor say aye.

Okay, we have an agenda.

Oh, and do we have anybody signed up for public comment this evening?

And sometimes we have a few spectators, but tonight we don't have spectators, but you can watch us later on channel three.

So that's great.

Next up is an approval of meetings from the May 18th.

Have either of you had a chance to review those minutes.

I would move approval on the May 18th minutes.

All right, all in favor say aye.

Aye.

Good.

We've approved the minutes.

That brings us to committee business.

And we're going to start with a briefing on the capital facilities project process.

All right.

Good evening for the record.

Joan Lutz, senior budget and finance manager here to provide capital facilities plan process and information.

So today's goal is to give uh uh the finance committee a clear high-level overview of how the city city of Olympia plans, evaluates, and funds capital projects.

Um this includes what qualifies as a capital project, how the CFP is developed, and where the committee fits into the review process.

So let's start with what is the capital project.

Um so it's a set of planned activities that maintain or improve a city asset, and that could be uh buildings, parks, trails, roads, and these activities include new construction, expansion, renovation, or replacement.

So then from there we have this capital facilities plan known as the CFP, and this is a strategic document that outlines the plan, uh planning development and management of the public infrastructure and facilities to meet community needs.

It is developed in coordination with our comprehensive plan as well as all of our master plans, and we update the CFP annually, therefore the first year of the CFP is the capital budget, and this is a requirement.

Um, the CFP is a requirement of the Growth Management Act.

How it all begins.

I thought that was gonna be small print.

So stay at stage one is the comprehensive plan, which is long-range community vision, and then we have step two, which are the master plans, which are surface service area infrastructure guides.

Stage three is the department-driven proposals.

Um, these are needs identified by the departments.

Uh stage four scope schedule and cost estimations, and these are detailed project definition, and then step five is the capital facilities plan, which is the adopted six-year plan with the first year being the budget.

Yeah, just real quick on this.

Um department-driven proposals, even though they're they're kind of a stage three, they should come from complan master plan, should be driven from that.

So I just want to make sure that's that's listed there.

They're not separate things that come up that are outside of that, right?

They should all be coordinated through and they should have some link back in some way, shape, or form to some master plan or utility plan or something that drives the need for those projects.

So for the community for those watching home, I just want to make sure that's really clear that's where those are driven from.

Just to check my understanding.

This is also sort of hierarchical.

But the highest level planning documents, the comprehensive plan, and then we have each of our master plans beneath that departments are creating implementations, and then you've got project specific planning, and finally that project specific planning ends up with a uh budget request in the capital facilities plan.

Yeah, and then tapers down into what we can actually produce.

Okay, well.

So this is a coordinated review.

It's uh across multiple departments.

Um we do that to uh ensure public um public funding is used properly and in the most effective way.

So like if we can pair two projects together, we want to do that, especially if there's a cost savings.

Um so they uh collaborate to ensure that the projects are feasible, aligned and well scoped, and this includes setting up policies and criteria, reverse reviewing service levels, validating the cost estimates and operational impacts, so how it will reflect on general fund or other funds set on those operations, and then checking alignment across departments and agencies so that we're not doing duplicate work, and then uncoordinated efforts of public facilities and you know, not doing this review can result in costly inefficiencies and gaps in the public service to the community.

It kind of happens through the CFP process of developing the document.

Because I didn't really thought about that.

I thought just the public works planners talked about within the finance team, you hear from each of the departments and develop the capital facilities plan.

They they pretty much work on that together on their own, you know, they don't departments that has capital projects.