Municipal Facilities

The municipal facilities group represents facilities and equipment owned and operated by the City of Salem that is necessary to support the operations of the City. The infrastructure categories encompassed in this group cover airport facilities, civic center complex, fire stations and equipment, parking structures, and shops complex.

Funding Summary

Funding sources consist of:

Operating revenues are generated by charges to customers, applicants, or others who purchase, use, or directly benefit from the services provided. Operating revenues are utilized as either a funding source to service debt incurred or to accumulate reserves to fund projects on a pay as you go basis.

Federal Grants are funds received primarily from the Federal Airport Improvement Program (AIP). These funds are limited to projects specifically tied to the City’s Airport.

General Obligation Bonds are proceeds commonly derived from voter-approved debt issued. The applicable annual debt service is paid back through a specific property tax levy on properties. The bond proceeds can only be expended on capital projects meeting the specific purpose stated on the ballot measure.

Capital Project Summary

Capital project category and project classifications are further detailed groupings that are defined by the operating department in project identification and assessment. The categories in this grouping consist of:

Airport – Facilities operated and maintained by the City of Salem with a terminal building, control tower, hangers and runway/taxiways.

Fire Stations and Equipment - all structures and applicable apparatus operated and maintained by the City of Salem that support the provision of fire and life safety emergency response services.

Parking Structures – all parking structures operated and maintained by the City of Salem.

Shops complex – all facilities utilized for the provision and operations of transportation and utilities services, parks operations, fleet services and printing/reprographic services in the City of Salem.

Further classifications of these project categories are identified in the subsequent category sections.

Other Relevant Factors

The proposed costs for all projects are the costs anticipated in the year of construction. Project construction cost estimates are indexed using the Engineering News Record (ENR) cost index, an average of the Seattle, San Francisco, and Los Angeles indices. This brings the original project cost estimate up to "current year" dollars. This value then has an assumed 3 percent annual inflation increase in subsequent years.

The City has completed a comprehensive master plan for the airport and shops complex categories. This master plan identifies the needed infrastructure improvements over a 20 year planning period. The Capital Improvement Program provides detail on planned projects that have an identifiable funding source over the immediate five year future. Those projects without an identifiable funding source are reflected in the unfunded project listing (reference supplemental “Unfunded Project Listing”).

The category of Shops Facilities currently does not have any identifiable funded project.

Airport

Funding Summary

Important Information

Airport Operating Revenues are derived from landing and parking fees, rents from land and building leases, fuel sales, and other miscellaneous sources. FAA Airport Improvement matching grants (5% local, 95% FAA) are secured for capital projects. FAA grants are awarded on the basis of available funding and a safety/need ranking by the FAA. Projects identified for grant funding are considered eligible for FAA funding.

Salem Municipal Airport

McNary Field is a Part 139 FAA certified Air Carrier Airport capable of serving general aviation and air carrier operations as well as the Army National Guard Aviation Support Facility. Airport tenants include Federal Express, Garmin Industries, West Coast Fasteners, the Oregon Aeronautics Division, Carpenter Commercial Properties, Microflect, and approximately 90 corporate and general aviation privately-leased facilities. Capital improvements are designed to promote and ensure enhanced airport safety, security, and compliance with FAA directives, improved access, and continuation as a self-sustaining entity.

Airport projects comply with the approved Airport Master Plan. The primary source of funds for these projects is FAA Airport Improvement Funds, as approved by Congress and apportioned by the FAA regional offices.  A five percent local match is required for each capital project.

Fire Stations and Equipment

Funding Summary

Important Information

Need for a Five and a Half Minute Response

In 1995, the Salem City Council adopted an emergency response time standard of five and a half minutes to be met a minimum of 85 percent of the time. In cases where someone’s heartbeat or breathing has stopped, studies show that irreversible brain damage sets in after six minutes and, without resuscitative efforts, survival rates decrease dramatically. In fire situations research shows that “flash over” often occurs within four minutes after open burning begins in a structural environment. Flash over is the phenomenon that takes place when a fire in a part of a room heats all combustible contents of the room to their ignition temperature, so that the fire goes from involving a single piece of furniture to involving the entire room.

The Fire Department responded to 16,175 calls for service in 2004, and met the Council’s standard 57 percent of the time. The staffing of a tenth engine company in July 2005 had a positive impact on response times. As of November 2005, the department was meeting the response time objective on approximately 67 percent of all calls for service.

CIP Requirements

The City has grown geographically, and the population has increased from 76,300 in 1975 to over 144,000 in 2004. Historically, fire stations have been strategically placed throughout the City so that reasonable response times to the maximum number of calls may be achieved. Staff has determined that two additional fire stations, one in West Salem and one in East Salem, would further improve overall response times as defined by the Council-adopted standard. The last fire station added to the system, Station 9 at Boone & Battle Creek in Southeast Salem, was constructed in 1982. The additional stations will carry with them annual operating costs of approximately $1.2 million.

This CIP also includes projects that would replace two of the City’s current stations, Station 5 and Station 7, and renovate other existing stations with seismic reinforcement and back-up power. Both Stations 5 and 7 would be replaced with facilities capable of housing more resources than the existing stations. Structural changes to stations are being proposed to help prevent injury to personnel and damage to equipment in an earthquake. In a disaster, fire stations may be used to provide temporary shelter, information and medical care.

Staff has also determined that fire apparatus will need to be replaced in the near future. The current fleet of fire apparatus was purchased in 1992 with general obligation bond proceeds. The life expectancy of fire apparatus is generally 15 years, due to the frequency of activity and extreme operating environments. Fire Department staff recommends that the department continue to replace the apparatus every 15 years in order to ensure the reliability of the fleet.

Projects within the fire department’s capital plan have an estimated total cost of approximately $24.2 million. A general obligation bond is proposed as the funding source of the capital plan. A general obligation bond measure will be presented to voters on the November 2006 election ballot.

CIP Bond Program

Parking Structures

Funding Summary

Important Information

On March 9, 2000, the Downtown Parking Advisory Board received updated information regarding proposed improvements to the parking structures. These repairs and improvements are necessary to ensure the stability of the structures and to maintain them properly. Much of the list requires further analysis and engineering evaluation, which may result in modification, however, it is appropriate to introduce these projects into the Capital Improvement Program as a basis for future financial planning.