2. Discussion on evaluation criteriaProject Priorities
Capital improvement projects should be prioritized in some way so that limited funding can
be allocated to those which are most important. This is difficult because the varying nature
of the projects and their benefits and objectives are so disparate as to be essentially not
comparable. Some public agencies have developed elaborate rating and ranking systems to
try to set priorities. Complicated scoring systems may have some disadvantages because
they may give a false sense of objectivity or precision to the priority setting process. Others
use simpler systems, or simply do not try to compare projects that are like "apples and
oranges." There is no accepted system or "industry standard" for prioritizing projects.
The Capital Improvement Committee developed the following priority rating system in 2008,
which was also used for the 2009 and subsequent updates:
Critical or urgent, high-priority projects that should be done if at all
possible; a special effort should be made to find sufficient funding for
all of the projects in this group.
2 Very important, high-priority projects that should be done as funding
becomes available.
3 Important and worthwhile projects to be considered if funding is
available; may be deferred to a subsequent year.
4 Less important, low -priority projects; desirable but not essential.
N/A Used for replacements of existing equipment.
The following are other commonly used capital project evaluation criteria
Legal Mandates
Is the project needed to meet state or federal
regulations?
Fiscal and Budget Impacts
What is the total capital cost?
Impact on operating budget?
Impact on tax base, tax rate and user fees?
Is there any state or federal funding available?
Health and Safety Impacts
Will the project improve the health and/or safety
of the residents in a measurable way?
Environmental, Aesthetic and
Does the project reduce pollution levels?
Social Effects
Improve the appearance of neighborhoods?
Ensure community values are achieved?
Economic Development Impacts
Does the project promote the economic vitality
of the community (job creation or business
development)?
Project Feasibility
Does the project demonstrate that it can be
implemented as planned?
Is the timing, phasing and proposed funding
reasonable?
Is there public support for the project?
Distributional Effects
Who benefits from the proposed projects?
Is the distribution of projects balanced?
Disruption/Inconvenience
How much disruption or inconvenience is caused
by the project?
Impact of Deferral
What are the implications of deferring the
project?
Uncertainty of Risk
What degree of risk or uncertainty is inherent in
acquiring the facility (demand, obsolescence)?
Inter -municipal Effects
What are the effects on inter -municipal
relationships?
Is there an opportunity for inter -municipal
cooperation?
Relationship to Other Projects
Are there advantages from this project accruing
to other projects?
Project Name: _
Estimated Cost:
FORM E
CAPITAL IMPROVEMENT RATING SHEET
or Considerations Score Range
A. Town Department Priority Classification
1. Mandatory 10
2. Maintenance 7
3. Improve Efficiency 5
4. New Service 2
B. Priority Ranking
1. Very high 10
2. High 7
3. Medium 5
4. Low 2
C. Project's Expected Useful Life (Three years or less score zero)
1. 20 or more years 10
2. 10 - 19 years 5
3. 5 - 9 years 2
D. Effect on Operating & Maintenance Costs
1. Reduce Cost 10
2. Cost Unchanged 5
3. Increase Cost 2
E. Effect on Town's Revenue (tax base)
1. Increase Revenues 10
2. Revenues Unchanged 5
3. Decrease Revenues 2
F. Availability of State/Federal Grant Moneys (If no, score zero)
1. Yes 5
TOTAL SCORE
Adapted from "Developing a Capital Improvement Program", Metropolitan Council of
the Twin Cities Area.
26
Austin, Texas
Prioritization Criteria
• Federal or State Mandates: Consent Decree, ADA Requirement, or
new regulatory requirements
• Urgent Need: Public health, safety or security threat; Infrastructure
failure; degradation of service; legal mandate
• Planning Priorities: Direct implementation of Regional,
Comprehensive, Small Area, and Neighborhood Plans
• Policy Priorities: Specific policy direction approved by the City Council
• Business Priorities: Implements department plan/policy; Addresses
Business Plan Horizon Issues; tangible improvement to service delivery
• Impact Criteria: Sustainability (Economy, Environment, Society/Equity),
Cost (O&M, revenues, leveraging)
Template of a CIP Criteria Scale
Criteria A Description -Ad
Required Project Is the project required to meet
legal, compliance, or regulatory
mandates?
Rating Scale (1-9)
1=not required/mandated
5=pending requirement
9= required or mandated
Strategic Alignment To what extent is the project 1=no alignment with strategies
aligned with our government's 5=partial alignment with
overall strategies? strategies
9=full alignment with strategies
Value to Citizens How much value will the outcome 1=minimal value
of this project bring to our 5=partial value
citizens? 9=high value
?4
City of Charlottesville, Virginia
FY 2014 — 2018 Capital Improvement Program
Project Evaluation and Criteria Scoring
Criteria #1— City Council Adopted Strategic Vision and/or Priorities
How does the project help meet the goals of the City Council Strategic Vision and/or the City Council
Priorities?
Review Committee Scoring
5 Project meets the goals of the City Council Strategic Vision and/or Priorities
0 Project does not meet the goals of the City Council Strategic Vision and/or Priorities
Criteria #2 — Public health and safety
How does the project eliminate or prevent an existing health, environmental, or safety hazard?
Review Committee Scoring
5 Project completely eliminates or prevents an existing health, environmental, or safety hazard.
3 Project partially eliminates or prevents an existing health, environmental, or safety hazard.
0 Project does not eliminate or prevent an existing health, environmental, or safety hazard.
Criteria #3 — Infrastructure investment / protection
How does the project protect and preserve the City's infrastructure?
Review Committee Scoring
5 The project improves and / or protects the City's infrastructure.
3 The project maintains the City's infrastructure.
0 The project does not protect or preserve the City's infrastructure.
Criteria #4 — Impact on City operational finances / revenue generation
Explain how the project will have a positive, neutral, or negative impact on the City's operational
Finances.
Review Committee Scoring
5 The project will result in a positive net impact on City finances.
3 The project will result in a neutral net impact on City finances.
0 The project will result in a negative net impact on City finances.
Criteria #5 — Leverages outside funding
How will the project leverage outside funding to facilitate completion of the project, and how much
additional funding will be leveraged?
Review Committee Scoring
5 The project will leverage outside funding for project completion.
0 The project will not leverage outside funding for project completion.
Criteria #6 — Environmental sustainability/LEEDS building certification
How does the majority of the project support the City of Charlottesville's environmental sustainability
goals and commitments?
Review Committee Scoring
5 Project directly meets the City's environmental sustainability goals/commitments (e.g., the
project is directly related to a sustainability initiative and/or is committed to pursuing LEED
certification for new construction or major renovations, where applicable)
3 Project contributes to the City's environmental substantiality efforts
0 Project neither fulfills a LEED requirement nor does it contribute to the City's environmental
substantiality efforts.
Criteria #7 — Encouragement of economic development
How will the project help stimulate development or redevelopment of properties and/or encourage
economic development in the City corridors?
Review Committee Scoring
5 The project will encourage increased economic development in the City's corridors.
0 The project will not encourage increased economic development in the City's corridors.
Criteria #8 — Ties in to other projects / organizations
Does the project tie into other existing or proposed projects, and/or will the project be done in
partnership with another non -City organization?
Review Committee Scoring
5 The project ties into another existing project(s) or the project will be done in partnership with
another non -City organization
0 The project does not tie into another existing project and will not be done in partnership with
another non -City organization.
Criteria #9 — Improves and/or increases the level of service provided by the City
How does the project improve and/or increase the level of service provided by the City?
Review Committee Scoring
5 The project improves and/or increases the level of service provided by the City.
0 The project does not improve and/or increase the level of service provided by the City.
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