HomeMy WebLinkAbout9B - 2010-2014 Capital Improvement Plan
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MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
JULY 20, 2009
9B
JERIL YN ERICKSON, FINANCE DIRECTOR
STEVE ALBRECHT, PUBLIC WORKS DIRECTOR
CONSIDER APPROVAL OF A RESOLUTION APPROVING THE 2010-2014
CAPITAL IMPROVEMENT PROGRAM (CIP)
Introduction
The purpose of this agenda is for the City Council to approve the 2010-2014
Capital Improvement Program (CIP).
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City staff updates the CIP on an annual basis. The CIP is designed to identify
infrastructure improvements needed due to ongoing maintenance and repair
and community growth and the associated funding sources. Such projects
include City-initiated improvements, county and state road improvements and
improvements requested by residents and developers. The 2010-2014 CIP
($28.4 million) appears to be significantly less in scope than the 2009-2013
CIP ($37.9 million). The previous CIP incorporated the County projects and
the associated County funding which resulted in increased project totals.
The 2010-2014 CIP only reflects the City's share of other governmental
agency projects.
On April 27, 2009 the Prior Lake Planning Commission reviewed the 2010-
2014 CIP. The Commission did express some concern about not having City
neighborhood reconstruction projects scheduled for 2010 and 2011. The CR
12 project will actually serve as the City's neighborhood reconstruction
project in those years and will include more than 82 residential properties
within the City. The Commission found that the CIP was consistent with the
goals and objectives of the City of Prior Lake Comprehensive Plan.
A draft copy of the 2010-2014 Capital Improvement Program was distributed
for your review in conjunction with the May 18, 2009 council workshop. The
CIP included a summary of demands versus funding sources which reflected
the projected cash balances after taking into account conservative revenue
projections, CIP construction demands and 2009 construction obligations.
Projects were presented by department, funding source, and detail.
Included with the CIP were the following long-term planning documents:
. Equipment Replacement Program - identifies the City's vehicle
and equipment needs and establishes a regular replacement
schedule.
www.cityofpriorlake.com
Phone i952.447.~800 / Fax 952.447.4245
. Neighborhood and Community Park Equipment Replacement
Matrix - identifies the equipment replacement demands for 46
neighborhood parks.
. Transportation Plan - identifies the major roadway
improvements involving both new and reconstruction projects that
need to be coordinated with Scott County.
Staff provided a detailed overview of the 2010 and 2011 projects and
highlights for the major projects scheduled for 2012-2014. The impact of the
bonds that would be required to support the1 O-year transportation plan was
graphically shown from an annual debt levy perspective as well as the cost to
a $300,000 residential property owner.
The City has also received the following petitions related to improvements for
consideration as part of the 2010-2014 CIP:
. Lords StreetlEdgewater Circle Maintenance Overlay (received Sept.
2008, included in draft CIP for 2011)
. Shady Beach Trail Full Depth Mill and Pave (received March 2009,
Amended see below)
. Shady Beach Trail Amended Maintenance Overlay (received May 21,
2009)
. Sycamore Trail Reconstruction as City Street (received May 21,2009)
On June 1, 2009 the City Council held the Informational Public Hearing for
the CIP. Residents concerned about the timing and scope of the proposed
reconstruction of neighborhood streets spoke at the hearing. Specifically the
Shady Beach Trail residents who had petitioned the City requested that their
street be reconstructed this summer. The public hearing was closed, but
because only three of the City Council members were present consideration
of the CIP was deferred until the July 20, 2009 meeting. Staff was directed
to bring additional information to the City Council at the June 15th City Council
Workshop for discussion.
On June 15, 2009 the City Council held a workshop and discussed the issues
related to the Transportation Implementation Plan (TIP). It should be noted
that, unlike previous years, Transit Projects have been added to the CIP in
order to better estimate transit needs. Staff was directed to modify the TIP to
reevaluate the proposed projects considering the status of existing utility
infrastructure sustainability with street conditions. Staff was directed to
propose a large scale street resurfacing project for 2010 for City Council
consideration. The City Council stipulated that only neighborhood areas
where minimal utility repair or issues are anticipated in the next 10+ years
could be considered for resurfacing. Neighborhoods where utilities and
streets are both in need of repair were to be given priority for reconstruction.
Current Circumstances
As directed by the City Council, Staff has revaluated the TIP utilizing new
criteria that incorporates the condition of utilities and roads. The attached
TIP details the expanded resurfacing project for 2010 and the new
reconstruction project schedule. The major changes to the TIP are that the
ISSUES:
FISCAL IMPACT:
program incorporates a $700,000 resurfacing program in 2010 which is
designed to extend the life of existing streets where only minor utility repairs
are required another 10 to 15 years. The program also advances the
Boudins/Timothy/RutgerslWatersedge project to begin in 2011 due to the
poor condition of the existing sanitary sewer. The following changes should
be noted:
. 2010: Lords/Edgewater, Shady Beach/Bayview and
Rustic/Glendale/Oakland Beach Resurfacing
. 2011: Boudins/Timothy Reconstruction
. 2012: RutgerslWatersedge Reconstruction
. 2013: Mushtown/Panama/Maple Utility Extension/Reconstruction
. 2013: Martindale/Carriage Hills Resurfacing
. 2014: Eau Claire/Highland/Marsh/Skyline Reconstruction
. 2014: Franklin Trail Resurfacing/Utility Repair
The proposed changes allow the City to make resurfacing repairs to the
Shady Beach, Lords and Rustic neighborhoods in 2011 and to advance the
Boudins area project from 2014-2015 to 2011-2012 with design beginning in
2010. The resurfacing project will allow the City to extend the life of streets in
three additional neighborhoods which more than doubles the number of
residents receiving street improvements in the five-year CIP.
In comparison with the 2009-2013 CIP, the proposed accelerated investment
in streets and infrastructure will increase the proposed bonding by $400,000
(2010) with debt service beginning in 2011. This increase will put the City at
about $2,100,000 in tax levy funding for roadway infrastructure which is
proposed to be sustained in to the future of the program.
The new neighborhood reconstruction program proposes to utilize
prioritization of the complete infrastructure condition in a given area to
establish a ranking. This requires detailed analysis of utilities by Staff in
advance of projects but provides for a better justification of project need.
In reviewing the draft 2010-2014 Capital Improvement Program, the Council
should consider the annual tax impact of the scheduled projects. While state
levy limits have been imposed through 2011, a special exception exists for
debt levies associated with capital improvement program financing.
The major projects proposed for 2010 involving a property tax levy (payable
2011) are listed below:
Project Description
CR21 Extension (CR42 to CR16)
CR42/McKenna Signal
CR12 Phase III (Elm to west of CR81)
Neighborhood Street Resurfacing Program
CR21/Arcadia Intersection - Design & ROW
Total
Project Levy
$ 140,000
40,000
720,000
700,000
500,000
$ 2,100,000
Listed below is a year-by-year recap of all the street reconstruction projects
included in the proposed CIP that indicate tax levy as one of its funding
sources. The Scott County Assessor has estimated that the average Prior
Lake market value of a home is approximately $300,000. This hypothetical
property value has been utilized for purposes of calculating the following tax
impact.
Project Year Levy Year Tax Levy Funding Tax Impact
2010 2011 $2,100,000 $26.72
2011 2012 $2,265,000 $28.83
2012 2013 $2,280,000 $29.05
2013 2014 $2,000,000 $25.44
2014 2015 $2,000,000 $25.44
The tax impact reflects the impact of issuing bonds to support the proposed
CIP and the associated tax levies needed to service the debt. 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 growth for the City and this hypothetical property.
In reality, the market value and tax capacity of a specific property may
fluctuate up or down from year to year depending on market conditions. The
proportion of the value of a single property to the total market value of the
city (including residential, commercial and industrial properties) may also
fluctuate. Consequently, it cannot be assumed that the actual tax impact of
the will be exactly as indicated in the above table. The amounts reflected are
estimates only given certain assumptions.
The Equipment Replacement Program (ERP) utilizes general tax levies to
support replacement of the City's equipment and vehicle fleet. The property
tax levy reflects annual $10,000 increases over the program's 12-yearterm.
The ERP also has as one of its funding sources, an annual transfer of
$90,000 from the Enterprise Fund. This transfer is adjusted semi-annually as
well because a significant portion of the equipment serves the Water and
Sewer departments.
The Neighborhood and Community Park Equipment Replacement Matrix
utilizes general tax levies to support the ongoing repairs and maintenance
reflected in the General Fund Parks Department budget. Annual increases
of $20,000 have been planned within the Parks Department budget for years
2010 through 2014. In addition, a Park Equipment Revolving Fund would be
established to fund ongoing park maintenance expenditures. Historically, the
Council supported using annual $100,000 transfers from the General Fund
contingency funds, if available, to establish this fund.
ALTERNATIVES:
RECOMMENDED
MOTION:
ReView7:J
The projected impact on the tax levies is as follows:
2010 2011 2012 2013 2014
CIP (new) 139,000 252,000 272,000 274,000 240,000
Equipment 10,000 10,000 10,000 10,000 10,000
Matrix*
Park Matrix* 20,000 20,000 20,000 20,000 20,000
Subtotal 169,000 282,000 302,000 304,000 270,000
CIP (existing) (31,209) (60,589) (52,438) (58,638) (109,837)
Other Debt 64,165 35,463 42,162 49,325 (145,057)
(existinq)
Total 201,956 256,875 291,724 294,687 15,106
*Part of general tax levy (not debt levy)
To provide sufficient funding for the capital and operating expenditures
indicated in the proposed CIP the following adjustments would be necessary
to the annual property tax levy:
2010 2011 2012 2013 2014
Adjustment +2.04% +2.53% +2.80% +2.75% +0.14%
The following alternatives are available to the City Council:
1. Approve the proposed 2010-2014 CIP as submitted.
2. Provide direction to the staff to modify the proposed program.
Alternative #1.
Frank Boyles, LJ1ger
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4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
RESOLUTION 09-xx
A RESOLUTION APPROVING THE 2010-2014 CAPITAL IMPROVEMENT PROGRAM
WHEREAS
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
Second By:
Motion By:
The purpose of the Capital Improvement Program(CIP) is to protect the infrastructure
of the City of Prior Lake by establishing a replacement plan for existing infrastructure
and by identifying those improvements necessary to accommodate the growth of the
community; and
Transit Projects have been added to the CIP for planning purposes; and
The CIP is a flexible planning document that attempts to balance the financial
resources of the City with its needs; and
The establishment of a CI P will provide appropriate information to manage capital
change within the City of Prior Lake; and
It is intended for the CIP to be established for a period of five (5) years and to be
updated annually; and
On June 1, 2009, the City Council of Prior Lake conducted an informational hearing on
the 2010 CI P and offered opportunity for public testimony on the capital spending
priorities of the City Council; and
On June 15, 2009, City Council had directed staff to make certain changes to the
Transportation Plan which have been incorporated into the CIP; and
The City reasonably expects to reimburse the expenditures made for certain costs of
the projects included in the CIP from the proceeds of bonds; and
The City has determined to make a declaration of official intent ("Declaration") to
reimburse certain estimated costs for projects included in the CIP from proceeds of
bonds in accordance with the Internal Revenue Service Reimbursement Regulations
(Treasury Reg. 1.150-2).
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The 2010-2014 Capital Improvement Program is hereby approved.
3. The City may declare other separate statements of reimbursement intent in connection with
specific public improvements projects as they are initiated under Minnesota Statutes Chapters
429 and 444, or for other capital projects, with the understanding that such additional
declarations of reimbursement intent will supplement this resolution. All reimbursed
R:\Council\2009 Agenda Reports\07 20 09\CIP ResolutiWtOOr.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures
eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations.
4. This Declaration has been made no later than 60 days after payment of any original
expenditure to be subject to a reimbursement allocation with respect to the proceeds of bonds,
except for the following expenditures:
a. costs of issuance of bonds;
b. costs in an amount not in excess of $100,000 or five percent of the proceeds of an
issue; or
c. "preliminary expenditures" up to an amount not in excess of 20 percent of the
aggregate issue price of the issue or issues that are reasonably expected by the City to
finance the project for which the preliminary expenditures were incurred.
The term "preliminary expenditures" includes architectural, engineering, surveying, bond
issuance, and similar costs that are incurred prior to commencement of acquisition,
construction or rehabilitation of a project other than land acquisition, site preparation, and
similar costs incident to the commencement of construction.
5. This Declaration is an expression of the reasonable expectations of the City based on the facts
and circumstances known to the City as the date hereof. The anticipated original expenditures
for the Projects and the principal amount of the bonds are consistent with the City's budgetary
and financial circumstances. No sources other than proceeds of bonds to be issued by the City
are, or are reasonably expected to be, reserved, allocated on a long term basis, or otherwise
set aside pursuant to the City's budget or financial policies to pay such Project expenditures.
6. This Declaration is intended to constitute a declaration of the official intent for the purposes of
the Reimbursement Regulations.
PASSED AND ADOPTED THIS 20th DAY OF JULY 2009.
YES
NO
Haugen
Erickson
Hedberg
leMair
Millar
Haugen
Erickson
Hedberg
leMair
Millar
Frank Boyles, City Manager
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City of Prior lake
Proposed 2010-2019 Transportation Plan
Updated 7/15/09
Year Improvement MSA Street Tax Bond Assessments Utility Water Trunk County/ Total City
Oversizing Levy Type Fund Quality Fund State Cost
2010 CR421McKenna Road Signal $75,000 $40,000 Recon $115,000
2010 Resurfacing Program (Shady,Rustic,Lords) $700,000 Recon $100,000 $800.00C
2010 CR 21/Arcadia Intersection - Design & ROW $500,000 Recon $500,000
2010 CR 12 Phase III $125.000 $720,000 429 $480,000 $350,000 $100,000 $1,775,OOC
2010 CR 21 (CR 42-North) 2nd Phase $310.000 $100,000 $140,000 Recon $50.000 $600,000
2010 Project Totals $510,000 $100,000 $2,100,000 $480,000 $450,000 $150,000 $0 $0 $3,790,006
2011 CR 12 Phase IV $300,000 $350,000 429 $360,000 $100,000 $1,110,OOC
2011 BoudinsfTimothy/Denise/Lois/Natalie $840,000 Recon $560,000 $500,000 $60,000 $1,960,OOC
2011 CR 21/Arcadia Intersection $300,000 $100,000 $1,075,000 Recon $100,000 $100,000 $750,000 $2,425,OO(j
2011 Project Totals $600,000 $100,000 $2.265,000 $920,000 $600,000 $160.000 $100,000 $750,000 $5.495,006
2012 Industrial Park $1,OOO,00C' 429 $900,000 $80,000 $50,000 $2,030,OOC
2012 RutgerslWatersedge/Grayling $980,000 429 $650,000 $500,000 $80,000 $2,210,OOC-
2012 CR21/Fountain Hills Siqnal $300,000 Recon $300,OOC
2012 Project Totals $0 $0 $2,280,000 $1,550,000 $500,000 $160,000 $50,000 $0 $4,540,006
2013 Main AvefTH 13 $425,000 $200,000 $900,000 Recen $100,000 $80,000 $200.000 $1,905,OO~
2013 Martindale/Carriage Hills Resurfacing $500,000 Recon $20,000 $520,00
2013 Mushtown/Maple/Panama $600,000 429 $700,000 $100,000 $60.000 $1,460,00
2013 Project Totals $425,000 $200,000 $2,000,000 $700,000 $200,000 $160,000 $0 $200,000 $3,885,006
2014 Franklin Trail Resurfacing (CR 44 to Summer) $300,000 Recon $100,000 $400,OOC
2014 Eau Claire/Hiqhland/Marsh/Skvline $1,700,OOC' 429 $970,000 $600,000 $80,000 $3,350,OOc-
2014 Project Totals $0 $0 $2,000,000 $970.000 $700.000 $80.000 $0 $0 $3.750,000
201bDowntown South $425,000 $700,000 429 $575,000 $200,000 $75,000 $1,975,OOC
201E.CR 83 Coop Agreement Payment $57,000 429 $57.000
201 E.Credit River/Maplewood/Grainwoood/Albanv $1,300,OOC' 429 $740,000 $550,000 $80.000 $2,670.00C
2015 Project Totals $425,000 $0 $2,057;000 $1,315,000 $750,000 $155,000 $0 $0 $4,702.000
201 E. Balsam/Sunrise/Spruce $1,OOO,OOC' 429 $600,000 $350,000 $80,000 $2,030,OOC
201€.TH 13/150th Street $500.000 $150,000 $1,OOO,OOC' Recon $150.000 $80,000 $1,880,OOC
2016 Project Totals $500,000 $150,000 $2,000,000 $600,000 $500,000 $160,000 $0 $0 $3,910,000
2017 CR 42/TH 13 $200,000 $1,OOO,OOC Recon $100,000 $80,000 $1,380,OOC
2017 Island View Circle $750,000 429 $500,000 $350,000 $80,000 $1 ,680,OO~
2017 Project Totals $200,000 $0 $1,750,000 $500.000 $450,000 $160,000 $0 $0 $3,060,000
201 E.Vale/ButlemuVKenVMonroe $1,OOO,OOC 429 $500,000 $350,000 $80,000 $1,930,OOC
201E:CR21/Main AvefTH13 $1,425,000 $500,000 $1,300,000 Recon $150,000 $80,000 $3,455,OOC
2018 Project Totals $1,425,006 $500,000 $2,300,000 $500,000 $500,000 $160,000 $0 $0 $5,385.000
201 S'Blind Lake/Dublin Cedar/HillcresVLyons $1,200,000 429 $680,000 $400,000 $80,000 $2,360,OOC
201S'Resurfacin~ Proqram $800,000 Recon $100,000 $20.000 $920,000
2019 Projectrotals< "e".' $0 $0 '$2,000,000 $680,000 $500,000 $100,000 .$0 $0 $3,280;000
Program Totals $4,085,000 $1,050,000 $20,752,000 $8,215,000 $5,150,000 $1,445,000 $150,000 $950,000 $41,797,000
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