HomeMy WebLinkAboutPort Policay #120o,
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FORT O
Attachment 2
San Diego Unified Pert Distrlat
Document No. 57740
Filed MAY 3 12011
Office of the District dierk
BPC Policy No. 120
SUBJECT: CAPITAL IMPROVEMENT PROGRAM (CIP)
PURPOSE: To establish a policy for the orderly development or improvement of the
capital assets of the Port District through a Capital Improvement Program ("CIP
Policy").
PREAMBLE: The Unified Port District of San Diego has a responsibility to provide for
the orderly development and improvement of the lands and capital assets under its
jurisdiction to execute its State Tidelands Trust obligations. The Port District
acknowledges that each area of tidelands in its trust offers different Public Trust assets
and value, and that each possesses varying degrees of opportunity for development,
real estate, maritime, recreation and conservation as well as constraints.
The Port District, therefore, establishes this CIP Policy for the purpose of improving its
CIP process and results. This CIP Policy is intended to facilitate capital development
projects and budgets which are strategically cohesive, ensure clear and consistent
treatment of all proposed capital projects on the tidelands, streamline the process,
increase efficiency, reduce costs and improve outcomes.
It is the policy of the Port District to evaluate and rank capital development projects as
follows:
• To reflect sound land use and capital improvement planning principles, as well
as the strategic development, business and operational goals set by the Board of
Port Commissioners ("BPC").
• To implement the appropriate and necessary sequencing of capital improvement
projects based upon operational and business demands.
• To ensure projects given priority have a direct relationship to the establishment
or improvement of capital assets needed to facilitate upcoming priority
developments and pressing operational needs.
••
To distribute the Port's capital investments in a balanced manner throughout the
tidelands located in all of the Member Cities.
• To advance projects that are consistent with the Port District Act and the Port's
numerous duties and state mandates:
A) To serve as an economic engine for the region;
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B) To be an environmental steward of the bay and tidelands;
C) To provide public access to the waterfront;
D) To provide recreational and community services as specified under the
Port District Act;
E) To ensure public safety and Homeland Security; and
• To provide a process for identifying, evaluating and mitigating the detrimental
impacts of tidelands operations on adjacent off -tidelands communities, including
maritime terminal impacts that qualify for Maritime Terminal Impact Funds
("MTI F").
The CIP process will proceed as follows:
1. The CIP will be developed using a long-term land use planning strategy every
five (5) years. Annually, each fall, the CIP program will be revisited, reevaluated
and revised to ensure that the project selection and priority is consistent with the
Port District's strategic goals (COMPASS) and the current business and
operational needs in Tight of changing circumstances.
2. The CIP project selection process should be open, inclusive, efficient and
effective by producing a program within a reasonable period of time. The
resulting CIP program should reflect the Port District's specific strategic goals
(COMPASS) and business or operational needs.
A) Port Staff, Port Commissioners, representatives of Member Cities, Port
Tenants, and other public stakeholders may propose CM projects for Port
tidelands;
B) Port Staff, Port Commissioners, and representatives of Member Cities may
propose off -tidelands projects to address Port operational and marine terminal
impacts using the process described below.
3. On -Tidelands Projects:
For consideration during the annual and five-year CIP review process, a project
proponent will develop for each proposed on -tidelands project the following
objective assessment:
A) A project description including a statement of need for the project;
B) Identification of the specific strategic goals (COMPASS) the project
addresses;
C) A financial analysis of the costs of the project, the availability of grant
funding or matching funds, as well as any expected return on investment
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("ROI") — including operational costs, maintenance costs, and life -cycle
costs — of the project;
D) An analysis of any anticipated non -monetary public benefits of the project;
E) An explanation of the project's compatibility with existing, related
development projects both on and off -tidelands (including non -Port District
development projects);
F) A rational assessment of the need for the timing of the improvements, and
an explanation of the appropriateness of the timing of the investment;
G) An explanation of how. the project implements or facilitates the
implementation of the Port Master Plan or other approved plans; and
H) An analysis of the project's potential to create future economic benefit or
impact if no immediate economic benefit is identified.
4. Off -Tidelands Projects:
The Port District recognizes that certain communities may be subject to
disproportionate adverse impacts and constraints as a result of the presence of
Maritime Terminals, and potentially other Port. operations on the tidelands, while
at the same time enabling a significant benefit to the District, or region, as a
whole.
The Port District, therefore, includes as part of this CIP Policy a provision for the
inclusion of off -tidelands projects in the CIP and the establishment of a Maritime
Terminal Impact Fund (the "MTIF") as set forth below.
For purposes of this policy, "Off -Tidelands Impacts" are defined as impacts to
communities adjacent to, directly associated with, or which are a result of the
Port District's maritime terminals and other operations, which are of a unique,
adverse or exclusionary nature.
Off -Tideland Impacts are recognized only when a direct relationship between the
'Port District's on -tidelands operations clearly result in adverse impacts that can
be reasonably established as specified under the Port District Act. Examples of
such impacts can include, but are not limited to, diminished air quality, heavy
movement of vehicles or equipment through adjacent commercial or residential
areas, or disproportionate degradation or use of public infrastructure such as
roads, streets; sidewalks, all of which may occur within and disproportionately
impact the communities in proximity to the Port's tidelands operations.
The Port District is currently, and intends to remain, in compliance with all
applicable regulatory requirements with respect to maritime terminal operations
and adjacent impacts. The Port considers this element of the CIP policy to be
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above and beyond compliance, to reflect best practices and sound land use
planning principles, and to be in the public interest.
Proponents of proposed CIP projects related to Off -Tidelands Impacts must
present the following for inclusion in the CIP process:
A) A project description .including a statement of need for the project;
B) A statement of how the project relates to on -tidelands operations;
C) Identification of the Off -Tidelands Impacts and a description, supported by
independent verification, of the pro rata shares of the Off -Tidelands
Impacts caused by on -tidelands operations on the off -tidelands
infrastructure;
D) A financial analysis of the costs of the project, the availability of grant
funding or matching funds, how the Member City anticipates funding its
proportional share of the costs, as well as any expected ROI — including
operational costs, maintenance costs, and life -cycle costs — of the project;
E) An analysis of any anticipated non -monetary public benefits of the project;
F) A statement of whether the infrastructure impacts are the result of on -
tidelands maritime terminal operations that would qualify for MTIF funding;
G) An explanation of how the project implements or facilitates the
implementation of the Port Master Plan or other approved plans; and
H) An analysis of the project's potential to create future economic benefit or
impact if no immediate economic benefit is identified.
5. Where a proponent proposes a CIP project, the Port District must receive the
proponent's completed information regarding the project at least 60 days before
the BPC begins its annual review of the CIP. Once this information is received,
an objective Port Staff assessment of the project including the factors set forth in
sections 3 and 4 will be prepared. That Port Staff assessment shall attach the
proponent's information to the Staff assessment and forward it directly to the
BPC as part of the public C!P process.
6. The proposed list of CIP projects, along with the proponent's information and
Port Staffs assessment, shall be made publicly available at least 10 days before
a CIP workshop or BPC meeting in which the CIP program will be considered.
7. Proposed CIP projects will be evaluated and ranked based on the following
criteria (in no particular order):
A) Contribution to the Port's strategic goals (COMPASS);
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B) Adherence to Port objectives and the Port District Act;
C) Represents a balanced distribution of the Port District's proposed capital
investment throughout the tidelands and Member Cities;
D) Capacity to produce revenue and to enhance local and regional economic
growth;
E) Capacity to provide non -monetary public benefits; and
F) Maintains off -tidelands infrastructure and mitigates Off -Tidelands Impacts
necessary to support tidelands operations, particularly maritime terminal
operations.
8. Funding for CIP projects will be established by the Executive Director consistent
• with the BPC-adopted budget, and the calculations for MTIF funding. Only off -
tidelands, maritime -terminal -related impact projects will qualify for MTIF funding.
Funds for new CIP projects will be placed in a CIP reserve at the end of each
fiscal year based on available unrestricted/undesignated reserves. Once in the
CIP reserve, the funds can be allocated to projects in the five-year plan in accord
with the procedures set forth above.
Once a particular MTIF project is identified for funding, those funds will be placed
in reserve at the end of each fiscal year without regard to actual revenues and
expenses. CIP projects may be phased such that the completion of a phase of
the project results in a complete and usable product even if the project in its
entirety is not complete.
9. Maritime Terminal Impact Fund:
On July 6, 2010, the Port District established the MTIF with an initial capital
contribution of $500,000. Additional funding for the MTIF will include one-half of
one percent (.5%) of gross maritime terminal revenues earned from the
operation of the Tenth Avenue Marine Terminal and the National City Marine
Terminal each year. These funds shall be in addition to other CIP funds
allocated to capital. development or improvement to be put towards maritime -
terminal -impact projects.
10. Reporting to the Board:
The CIP budget once approved by the BPC shall constitute direction from the
BPC regarding Port District administration of the program. The Executive
Director will update the BPC periodically on the execution of the approved CIP
program, and may propose on an individual basis, consistent with the objectives
and analysis identified above, additional projects for BPC consideration and
approval. If new or additional information is discovered during the
implementation of an approved CIP project that makes the implementation of the
project infeasible or impractical, then this information will be reported promptly to
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the Board.
11. Notwithstanding any other provision of this policy, the annual funding for the CIP
may be changed or otherwise suspended from time to time if the BPC makes a
finding that, because of a fiscal emergency there is an established need for all or
part of these funds to be expended for the repair, operation, maintenance or
development of Port District infrastructure critical and paramount to the operation
of the Port District.
For purposes of this provision, "fiscal emergency" means an extraordinary
occurrence or combination of circumstances that was unforeseen and
unexpected and which requires immediate and sudden action of a drastic but
temporary nature.
RESOLUTION NUMBER AND DATE: 2011-45, dated April 12, 2011 (Supersedes BPC Policy
120, Resolution 202008-116, dated July 1, 2008; and Resolution 82-13, dated January 5, 1982)
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