HomeMy WebLinkAbout8A 2009-2013 Capital Improvement Program (CIP)
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4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
June 2,2008
8A
Ralph Teschner, Finance Director and Steve Albrecht, Public Works
Director
CONDUCT INFORMATIONAL MEETING AND CONSIDER APPROVAL OF A
RESOLUTION APPROVING THE 2009 - 2013 CAPITAL IMPROVEMENT
PROGRAM (CIP)
Introduction
This agenda item is an informational meeting on the proposed projects within
the 2009-2013 Capital Improvement Program. A "public hearing" is not
required by state statute, however the aforementioned informational meeting
will provide our residents an opportunity to make recommendations and
comment on particular projects. At the conclusion, a resolution adopting the
2009 CIP may be considered by the City Council.
Historv
Annually the City prepares a capital improvement program (CIP). The CIP is
designed to identify infrastructure improvements and funding sources therefore
that are necessary as a result of primarily two factors; community growth and
infrastructure maintenance and replacement. Such projects include City
initiated improvements, county and state road improvements and
improvements requested by developers. In some cases they involve financial
responsibility on behalf of Prior Lake, while in others they may not.
In addition, the following replacement schedules are included;
1. Equipment Matrix - identifies the City's vehicle equipment needs and
establishes a regular replacement schedule.
2. Park Equipment Matrix - identifies the equipment replacement demands
for 46 neighborhood parks.
3. Transportation Plan Summary - identifies the major roadway
improvements involving both new and reconstruction projects that need
to be coordinated with Scott County.
Earlier a draft copy of the 2009-2013 Capital Improvement Program was
distributed for your review so you would have more opportunity to become
familiar with the proposed projects. Also, a presentation was made to the
Council at its last council workshop. Within the CIP are condensed project
summary sheets (see inserts entitled "Capsule Project Summary") that present
a list of projects by year along with a financing source recap, the City's specific
share of the project cost and the estimated tax impact of each year's projects.
This capsule summary should be helpful for the Council to refer back and forth
between years as a quick reference guide.
Also included is a condensed financial analysis entitled "Financing Funds
Projection" that matches revenue sources with the five year CIP construction
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
ISSUES:
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demands showing the beginning and the ending position of those capital funds
which provide the underlying financing of the projects.
On April 14, 2008 the Prior Lake Planning Commission reviewed the 2009-
2013 Capital Improvement Program. The Commission did not suggest any
changes or revisions to the draft CIP. The Commission found that the CIP was
consistent with the goals and objectives of the City of Prior Lake
Comprehensive Plan.
On May 19, 2008 the Council had the opportunity to review, discuss and
provide direction to Staff on specific items the Council wished to change.
There was consensus by the Council with respect to the 2009 proposed
projects with the program improvements for the remaining years supported by
the Council as a whole. As a result of the request by the Rutgers neighborhood
petition to move up their project Staff has moved the Rutgers reconstruction
project up to 2014 in the Transportation Plan. This change does not effect the
five year CIP, but it does however adjust the preliminary project order.
Because of the condition of the streets in the Rutgers area, Staff supports the
adjustment.
Also, the City just received a petition from the Shady Beach neighborhood
asking for a 2" bituminous overlay only (see attached petition). This is not a
viable consideration because city policy requires concrete curb and gutter for
an overlay project. Because Shady Beach is scheduled for complete street
reconstruction in 2013 Staff would recommend that the current time table be
adhered to.
Current Circumstances
It is important for the Council to recognize that the document is a flexible
planning tool that is affected by the actions of a number of governmental
agencies (State, County and Shakopee Mdewakanton Dakota Community).
The Council should critically review those projects proposed for 2009. Those
improvements selected for bonding will affect the property taxes payable in
2010. Council should remember that the school district and county will also
influence the level of taxes through their annual levies and periodic
referendums and bond issues. Those programs which are not deemed to be of
high priority (particularly in 2009) should be eliminated now so they do not
generate public expectation and also to avoid unnecessary City effort and
expense.
There are no capital park projects identified next year in 2009 because of the
general slowdown of development and the associated curtailment of funds that
are generated to finance the new neighborhood park improvements. Until such
activity picks up and we experience an improvement in the overall economy no
capital park expenditures are proposed.
Historically the TH13 intersections have been a high priority of the Council for
obvious reasons. However, due to the commitment of our future municipal
state aid funds for downtown redevelopment and major county road
cooperative projects involving CSAH 12, 21 and 42 and the general lack of
state funding the remaining TH 13 intersection improvements such as at Main
Avenue, Oakland Beach, and 150th Street are not included for the next five-
FISCAL IMPACT:
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year period.
Another primary CIP concern is the timing of projects in the CIP on proposed
future parks referendums. Until there is a concerted effort from the vested
interests i.e. PLAY, and the various athletic associations and depending upon
final recommendations from the Park Advisory Committee regarding the
Master Park Plan (MPP) there are two general park referendums proposed.
The first is planned for 2019 and the second ten years later. However, the
timing of both could easily be modified if community support is generated
earlier or if it conflicts with referendums of other entities.
Following Council approval of the Capital Improvement Program, Engineering
staff will prepare a feasibility report for those projects identified for next year.
Adequate lead time is important for surveying, right-of-way acquisition and
engineering to obtain the best possible bids, which is generally early in the
year.
Subsequent years in the CIP are more important from a planning perspective.
Our objective in preparing the CIP has been to balance the tax impacts from
year to year while addressing infrastructure needs.
In reviewing the draft 2009-2013 Capital Improvement Program, the Council
should consider the annual tax impact of the scheduled projects. While state
levy limits have been imposed for the next three years, a special exception
exists for our debt levies associated with capital improvement program
financing.
The major projects proposed for 2009 involving a property tax levy (payable
2010) are listed below along with their individual tax impact:
Proiect DescriDtion
L._ Proiect Levv
City Tax ImDact*
$ %
$9.53 1.03%
$8.17 I 0.88%
Brooksville Hills Street Reconstruction (m J
ArcadialCR 21, Fountain Hills/CR 21
$700,000
$600,000
Listed below is a year-by-year tax recap of all the street reconstruction
projects. The Scott County Assessor has estimated that the average Prior
Lake market value of a home is nearly $300,000. This typical value has been
utilized for purposes of calculating the following tax impact.
Proiect Year and Levv Amount
Tax Imoact
$ %
$17.70 1.91%
$22.80 2.42%
$19.80 2.05%
$24.90 2.53%
$24.00 2.38%
2009* $1,300,000
2010 $1,700,000
2011 $1,500,000
2012 $1,925,000
2013 $1,900,000
*(A 2008 base tax of $925.34 [City portion] was utilized to compute the
beginning percentage increases. Budgetary increases are excluded for
purposes of comparing the effect of capital dollars only within the context of
the CIP. Also this model assumes an annual 2% tax capacity valuation
ALTERNATIVES:
RECOMMENDED
MOTION:
Rer;:Jfi
Frank BOYle1 Cf
ATTACHM~S:
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growth.)
As to the Equipment Matrix, the property tax experiences a bi-annual $10,000
step increase over the matrix's 12 year term. The Equipment Matrix also has,
as one of its funding sources, an annual transfer of $80,000 from the
Enterprise Fund that is adjusted semi-annually as well because a significant
portion of the equipment serves the Water and Sewer departments.
The following alternatives are available to the City Council:
1. Approve the proposed 2009-2013 Capital Improvement Program as
submitted.
2. Provide direction to the staff to modify the proposed program to
mitigate annual tax increases while insuring appropriate maintenance
of public infrastructure.
3. Amend the 2009-2013 Capital Improvement Program as per Council
determination.
Alternative #1 .
1. A Resolution Approving the 2009-2013 Capital Improvement Program.
2. Shady Beach petition.
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
RESOLUTION OS-xx
RESOLUTION APPROVING THE
2009-2013 CAPITAL IMPROVEMENT PROGRAM
MOTION BY: SECOND BY:
WHEREAS, The purpose of a Capital Improvement Program is to protect the infrastructure
of the City of Prior Lake by establishing a replacement plan for existing
infrastructure and to identify those improvements necessary to accommodate
the growth of the community; and
WHEREAS, Vehicle and Park Equipment Matrix's have been incorporated into the Capital
Improvement Program which are intended to identify the City's rolling stock and
neighborhood park equipment needs and provide a regular replacement
schedule; and
WHEREAS, The Capital Improvement Program is a flexible planning document that
attempts to balance the financial resources of the City with its needs; and
WHEREAS, The establishment of a Capital Improvement Program will provide appropriate
information to manage capital change within the City of Prior Lake; and
WHEREAS, It is intended for the Capital Improvement Program to be established for a
period of five (5) years and to be updated annually; and
WHEREAS, The City Council of Prior Lake conducted an informational meeting on the 2009
Capital Improvement Program and offered an opportunity for public testimony
on the capital spending priorities of the City Council.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE that:
1. The recitals set forth above are incorporated herein.
2. The 2009-2013 Capital Improvement Program is hereby approved.
Passed and adopted this 2nd day of June, 2008.
YES
NO
Haugen
Erickson
Hedberg
LeMair
Millar
Haugen
Erickson
Hedberg
LeMair
Millar
H:\CIP\CIP09res.doc
City Manager
www .citJ6\Wrgfl~Jf~<?ldtffke
Phone 952.447.9800 / Fax 952.447.4245
{Seal}
PETITION
FOR
The repair and two inch overlay of blacktop on our street, the
beginning of Shady Beach Trail N .E.
TO: City of Prior Lake
We, the undersigned, request the City of Prior Lake to repair as necessary, then do a two inch
overlay on the street known as Shady Beach Trail N.E. from County Road 42 to and including the
first 900 right turn where the street goes straight west from house number 14144. We, the
undersigned, do not want the entire street torn up to do this work. We definitely do NOT want
concrete curb and gutter and sidewalks installed. We like and enjoy the feel of the slight rise on
either side (jfthe streeti.o direci. titt: flo\\; of water.
We have been more than patient to this point. We have watched the City put patch on patch only to
see the same deterioration happen in a very short time again and again. We now need to do the
overlay as our property values are being effected.
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