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Home My WebLink About09 07 10 City Council Work Session4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL WORKSHOP AGENDA REPORT MEETING DATE: SEPTEMBER 7, 2010 PREPARED BY: JERILYN ERICKSON, FINANCE DIRECTOR JANE KANSIER, BUILDING AND TRANSPORTATION SERVICES DIR PRESENTER: JERILYN ERICKSON AGENDA ITEM: FACILITIES MANAGEMENT PLAN DISCUSSION: Introduction The purpose of this workshop is to present the draft Facilities Management Plan (FMP) to the City Council. History Since 1995, the City has made a significant investment in City buildings required to deliver services to the public. These include Fire Station #1, the Maintenance Center, the Library/Club Prior, the Police Station, City Hall, Fire Station #2 and the Water Treatment Facility. These facilities range in age from new to approximately fifteen years old. The City also manages some older facilities, such as the two downtown buildings (16220 and 16224 Main Avenue), Kop Farm and the old Maintenance Shop. The City has done a comprehensive job of planning for maintenance and replacement of many other assets such as equipment (rolling stock), park equipment and infrastructure. In these cases, the City has developed long- term planning documents (Capital Improvement Program, Transportation Plan, Equipment Replacement Plan and the Parks Equipment Replacement Plan) which identify the need, estimated costs and funding sources necessary for replacement of these assets. These plans are updated, evaluated and approved each year by the City Council. The information related to the upcoming year is then incorporated into the budget. Before now, we have not had the data compiled in a usable format to prepare along-term planning document for the maintenance of City buildings. The 2030 Vision and Strategic Plan includes an objective under the Strong Financial Management vision element to "program new and replacement City facility maintenance as part of multi-year financial tools." A recent update to the 2030 Plan provides more specific language: "prepare a facilities management plan to maximize the usable life of needed buildings." This most recent update was one of seventeen objectives that the Council determined to be priorities when preparing the preliminary 2011 budget. In late 2008, City staff assembled the Facilities Management Team, consisting of Craig Eldred (replaced by Joe Wiita), AI Friedges, Jerilyn Erickson, Charlotte Green, Bob Hutchins, Bill O'Rourke, Doug Hartman and Jane Kansier. This group was responsible for identifying long and short R:\Facilities Management Plan\9-7-10_Workshop_agenda_report.docR:\Facilities Management Plan\9-7-10_Workshop_agenda_report.doc term maintenance needs for all City buildings. As its first task, the team developed a Facilities database. The development of the database was a long term project. We first identified the facilities to be included. Once this list was compiled, each building was measured and inventoried. The inventory included exterior walls and roofs, HVAC equipment, windows, light fixtures, interior wall and floor coverings, interior ceiling materials, doors, bathroom fixtures and all other built-in components. This information was then entered into a spreadsheet database. Each building has its own database. The general useful life of each item was then determined along with a replacement cost. The life expectancy was determined by general industry standards. The replacement costs for the items were derived from standard cost estimates used by architects. Wold Architects (the architect for the City Hall and Police Station project) was very helpful in this regard. In some cases, costs were determined by specific quotes from contractors. We were then able to estimate the timing and potential cost of replacement of each item on the list. Identifying possible funding sources was the next step. The result is the Facilities Management Plan attached to this report. rrent Circumstances The draft FMP has been developed in a format that is similar to the other long-term planning documents which have been adopted by the City Council. The Plan identifies the uses and sources of funds and any net change in the fund balance reserves on an annual basis. Use of Funds The categories under Use of Funds are shown by age of construction with the oldest at the top and most recent at the bottom. Because buildings are long-term capital assets, Staff thought it was appropriate to show the expenditures over a 25-year period. This is similar to the Park Equipment Replacement Plan. A sample copy of the inventory database for the Maintenance Center has been included with this report to provide Council with an example of the level of detail and complexity that has gone into developing this Plan. As with the other long-term plans, the FMP will be reviewed and updated each year. The timing of the replacement or repair is based on the general useful life of each item. The timing is not absolute. Replacement and/or repairs will be reviewed and alternatives considered that minimize the financial impact and maximize the useful life for each of the assets. Source of Funds The FMP incorporates certain funding assumptions that Staff would like Council to consider. First, Staff recommends using residual funds from the Building Fund as seed money to establish the Facilities Management Fund. Approximately $250,000 is available due to savings from prior building projects including City Hall, Police Station and Fire Station #2. Staff believes it would be appropriate to designate these funds to maintain the City's capital assets. R:\Facilities Management Plan\9-7-10_Workshop_agenda_report.doc 2 Second, the Council should consider which sustainable funding source(s) is available to provide sufficient resources to maintain existing buildings. When discussing property tax projections earlier in the year, Staff had presented Council with an option of capturing the levy capacity beginning in 2014 after the market referendum debt for Fire Station #1 matures (in 2013) and directing it to partially fund the FMP. Another possible funding source is the Capital Facilities Charge (CFAC). The CFAC is a $10 fee that is charged on each utility account every billing cycle. The City bills on a bimonthly schedule so each account contributes $60/year. This charge was originally established in 1992 as a funding source for paying the debt on bonding for capital and plant expenditures. In 1995, bonds were issued for the new maintenance facility. The CFAC was increased to fund the repayment of this debt service, as well. The maintenance facility debt matures in 2014. In 2005, the CFAC was increased to $10 to provide a funding source for the construction of the Water Treatment Facility and the corresponding debt that was issued. The CFAC revenue is recorded in the Water Fund and Sewer Fund. Later this fall, Staff will be presenting the Water Operating Plan and the Sewer Operating Plan at which time the Council will further discuss utility rates and the impact of any change in the existing $10 CFAC. The FMP reflects the CFAC as a possible funding source. This would not be reallocating the existing $10 fee but, rather, increasing the fee with the intent that the additional revenue generated is recorded in the Facilities Management Fund for the purpose of maintaining or replacing existing buildings as identified in the FMP. The FMP reflects the CFAC at the following rates: Year Rate 2011 $0.00 2012 $3.50 2013 $4.50 2014 $5.25 2015+ $5.50 The financial impact on each resident to fund the FMP will depend on Council's funding philosophy. The property tax will have a greater financial impact on the owners of higher valued properties. A residential property valued at $800,000 would pay more property tax to fund the expenditures than a property valued at $200,000. If the CFAC is used, then every property owner is charged the same amount. The CFAC is not based on the value of the property. Staff has included an "Other" category to reflect other sources of funds that may be available. The City recently received an insurance settlement for hail damage to the Fire Station #1 roof. These funds would be available to offset future roof replacement costs for that facility. Management of City Facilities The 2008 budget included a Building Superintendent position that would have provided continuous monitoring of City facilities. Due to declining development-related revenues, the position was not filled that year and was R:\Facilities Management Plan\9-7-10_Workshop_agenda_report.doc 3 not included in the 2009 or 2010 budgets. Staff from various departments has provided resources when needed to react to conditions such as leaking roofs, malfunctioning HVAC, broken pipes, etc. The City could benefit from a dedicated resource that could provide proactive review and analysis of the facility conditions, energy efficiency, replacement needs, etc. Staff will evaluate the options available such as reallocating current staff to meet changing City priorities, outsourcing to a management company or collaborating with the county or another city. Staff will also explore options and costs to further expand the use of the Cartegraph software to track and manage the City's facilities. The City has used the pavement module of the Cartegraph system for many years to track and rate the condition of its street pavement. The software is now being expanded to help us inventory and manage a variety of other public assets such as water, sewer, storm sewer, street and park infrastructure. The system is also currently being used to track staff time related to maintenance of City infrastructure. In 2011, staff plans to implement a fleet management component of Cartegraph. This tool allows for accounting of City costs and resources related to the maintenance of City infrastructure. Access to this information allows Staff and the City Council to make value- based infrastructure management decisions. Conclusion Staff has prepared a draft Facilities Management Plan. A copy has been included with this agenda report. The primary focus of the workshop is to receive direction on the following: 1) Expenditures a) Is 25 years an appropriate length of time for this plan? b) Is the assumption of useful life the appropriate tool to estimate the timing of a future replacement, upgrade, etc.? 2) Funding Sources a) Should the residual balance in the Building Fund be used as seed money to establish the Facilities Management Fund? b) Should future property tax levies include an amount to fund a portion or all of the expenditures identified in the Plan? c) Should the Capital Facilities Charge be expanded in order to fund a portion or all of the expenditures identified in the Plan? 3) Management of the Plan a) What type and amount of resources should be dedicated to manage the City's facilities? R:\Facilities Management Plan\9-7-10_Workshop_agenda_report.doc 4 _ 04 rttto~ _.. t~ ~ CITY OF PRIOR LAKE Council Workshop 09.07.201 u ra 2011- 2035 FACILITIES MANAGEMENT PLAN en~~~ 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2028 2027 2028 2029 2030 2031 2032 2033 2034 2035 Totals Use of Funds: Old Maintenance Shop - - - - - - - - _ _ _ _ _ _ _ _ Kop Farm Buildings - - - - - - - - - _ _ _ _ _ _ _ - - _ - _ 16220 Main Avenue - - - - - - - - - - - - - - 7,707 - - - - 5,906 - - - - 13,61; 16244 Main Avenue - - - - 52,167 - - - - 48,381 - - - - - 8,989 - 271 - - - - 69,153 176,96 F're Staton #1 - - 246,847 342,035 59,905 - - 59,571 - - - - - - - - 4,384 - - - 20,600 252,091 985,43 Maintenance Center - 158,706 - - 361,694 420,355 184,481 - - - 157,432 6,416 - 37,815 - 56,165 - 19,394 27,092 - - - 1,429,541 Library 8 Club Prior - - - 236,651 - - - 90,029 61,196 - - - - - - _ _ _ - 393,87' Cry Hall - - - - 25,275 - - - - 1,006,611 - - - - 1,265,309 - - 214,884 161,148 - - - 2,693,42' Police - - - - - 47,762 - - - - 336,281 - - - - 562,905 - - - 214,684 - - - - - 1,161,83 Fire Station #2 - - - - - 19,105 - - - - - - 64,658 27,227 - 109,120 - 248,879 - - - - 75,144 - - 544,13; Water TreatmentFaclKy - - - - - - - - _ _ _ _ _ _ _ _ _ - Pike Lake Buildings - - - - - - - - - - _ _ _ _ _ _ _ _ - Total Use of Funds 158,706 246,847 578,687 Scurce of Funds: InterestEamings(2°~} 5,000 5,100 5,261 7,967 Annual Property Tax Levy - - - 135,000 CapdalFacilityCharge - 161,658 209,196 245,637 Other'rl 167,699 Total Source of Funds 5,000 166,758 382,156 368,604 Change in Fund Balance 5,000 8,052 135,309 (190,083) Beginning fund Balance 250,000 255,000 263,052 398,361 Ending Fund Balance 255,000 263,052 398,361 208,278 473,766 512,497 184,481 - 149,600 115,577 1,500,523 6,416 64,658 65,041 7,707 2,013,499 - 257,868 23,778 463,036 161,148 - 75,144 20,600 321,244 7,400,82 4,166 2,653 369 4,632 12,704 17,978 24,070 2,619 10,654 17,717 24,947 33,502 2,145 10,463 13,824 21,966 21,520 27,135 36,118 43,811 52,782 409,10E 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 2,970,00( 258,964 260,634 262,284 263,934 265,584 267,234 268,884 270,534 272,184 273,834 275,484 277,134 278,784 280,434 282,084 283,734 285,384 287,034 288,684 290,334 291,984 6,401,65; - - - - 167 69~ 398,150 398,287 397,653 403,566 413,288 420,212 427,954 408,153 417,838 426,551 435,431 445,636 415,929 425,897 430,908 440,700 441,904 449,169 459,802 469,145 479,766 9,948,451 (75,617) (114,210) 213,172 403,566 263,688 304,635 (1,072,569) 401,737 353,180 361,510 427,724 (1,567,863) 415,929 168,030 407,130 (22,336) 280,756 449,169 384,658 448,545 158,522 2,547,63; 208,278 132,661 18,452 231,624 635,190 898,878 1,203,513 130,944 532,680 885,860 1,247,370 1,675,094 107,231 523,160 691,189 1,098,319 1,015,983 1,356,739 1,805,908 2,190,566 2,639,111 132,661 18,452 231,624 635,190 898,878 1,203,513 130,944 532,680 885,860 1,247,370 1,675,094 107,231 523,160 691,189 1,098,319 1,1)75,983 1,356,739 1,805,908 2,190,566 2,639,111 2,797,633 (i) Insurance Proceeds (2013) nanceCeMer 1998 delmann Street 2011.2035 Inv Size Instl Tada1's mst (each) Casl br ~otalim lib Fly 2011 2012 2013 2014 2015 2018 2017 2018 2019 2020 2021 2022 2023 2024 2025 2028 2027 2028 2029 2030 2031 2032 2033 2034 2035 Totals ExtedoraSke Work Feb-09 os 500 sl 1896 53.00 51,500 25 2,078 2,078 etlon 5yslem 750 S 1998 56.75 55,083 20 8,045 8,045 k 2618 s< 1888 SA.SD 517,004 50 xo 300 sl 1988 EO 30 nhrsne Roofing (Replacement) 39000 st 1998 EA.00 5312,000 19 361,894 381,694 nbrane Roofing (Repair) 39000 sf 1998 51.50 558,500 0 lams and Caulking (willows, Mick, elc.) 1988 50.50 $0 10 ce-Chain Link 790 If 2WA 514.00 511,080 20 19,394 19,394 ce-Painted Wood 225 It 2007 520.00 54,500 15 8,418 6,418 /Gate-25'x8' 1 # 2009 525,000.00 525,000 15 37,815 37,815 and Windows :IFremes 18 # 1998 5800.00 512,800 50 :I Doors 22 # 1998 5800.00 517,600 50 ide Steel DOOn 4 # 1998 Sp 50 od Doors 15 # 1998 5850.00 512750 50 w Doors 1 # 1998 $900.00 EB00 50 od Door Hardware # 1990 EO 50 ling Doors 4'z4' 1 # 1998 52,500.00 52,500 10 Iinp Fire Doors 4 # 1996 EO 70 lional Melal Overhead Doors (13x6) A # 1998 ED 70 ninum Windows (2 z 4) 18 sr 2 # 1998 5440.00 5880 20 1,051 1,051 ninum Windows (3 x 4) 12D 51 10 # 1998 5880.00 56,800 20 7,881 1,881 Hiram W Mows (4 x 5) 220 sf 11 # 1996 EABD.00 59,880 20 11,558 11,558 Hiram Wndwas(3x1) 144 s1 48 # 1986 5300.00 514,400 Za 17,194 17,194 ninum W Movrs (1x2) 100 sf 50 # 1996 5150.00 57,500 10 11,955 8,955 Hiram Windows (1) 1 sl 1 # 1996 5150.00 f150 20 179 170 IIgMS (4x4) 18 sF 1 # 1988 5900.00 5900 20 1,075 1,075 IgMs (4x A) 221 s1 7 # 1990 51,800.00 512,800 20 15,045 15,045 liphls (18 x 70) 1110 sf 1 # 1996 $3,000.00 53,000 20 3,582 3,582 d En17 1 # 1998 EO 20 ps 1 # 1996 ED 20 y Wdls, a Ceilings Flcors 4884 sf 1996 59.00 542,156 40 ~ilient Flooring 168 sf 1998 55.00 5A4D 50 pet 702 sf 1998 37.501 57,805 20 8,081 9,081 icrete Foors 35,332 sf 1998 53.00 5105,998 18 112,451 112,451 el Floors 3324 sf 1998 50 10 el Grate Ftcors 152 sf 1998 30 15 rsnce Mess s 1998 E35.OD f0 10 nted Walls 18924 st 1998 52.00 533,848 20 40,418 40,418 Ilcoverings Cedar 3904 sf 1998 515,00 $58,560 25 81,061 81061 icrete Block Walls 22472 sf 1998 m 20 'elrock 371 sf 1998 SD 15 Il The 408 sf 1998 $9.00 53,872 25 5,083 5,083 ling Tile 5070 st 1996 53.50 511,145 20 21,188 21,188 icrete Ceiling 2143 sf 1998 $0 20 Iar CellinA 484 sf 1996 $0 20 el Ceiling 3324 sf 1998 55.W 318,820 20 19,845 19,845 wms lets 5 # 1898 5600.00 53,000 1A 3,183 3,183 tals 2 # 1998 5400.00 5800 1A 849 849 ks 6 # 1896 5300.00 51,800 18 1,910 1,910 al TOlel Pad9icns 4 # 1996 575.00 5300 50 leers # 1998 55,000.00 50 25 nw:rs 2 # 1896 51,500.00 53,000 25 4,153 4,153 00 Bench 4 # 1896 51,000.00 $4,000 25 6,537 5,537 xrTOwel Dispenser 3 # 1986 5400.00 $1,200 20 1,433 1 q33 R:1Facilikes Management Plan@010 Facilities Managemenl_Plan 2010.09.07Maintenance Cenler Page f o/3 nance Center 1998 delmann Slreel 2011-2035 Inv Sae Instl Today's coN hG) Cast rot WhI MV Ule Ery 2011 2012 2013 2014 2015 2018 2017 2015 2019 2D2D 2021 2022 2023 2024 2025 2028 2027 2028 2028 2030 2031 2032 2W3 2034 2035 Tolais °ixtures da L'pM Fixures 2x4) /B # 1998 5300.00 513,800 20 18,178 18,478 dar L'pM FizNres(2z2) 67 # 1998 $300.00 52D,100 20 24,000 24,000 dar LIgM FlzWres (1 x 1) 22 # 1998 530D.00 58,800 20 7,881 7,881 dot L'pM FizNres (2' 0) 2 # 1998 5300.00 5800 20 718 718 dot LigMFizMres (fY 0) 27 # 1998 5300.Oa 58,100 20 9,812 9,872 riot L'pM Fixtures (4' IS 71 # 1998 5300.00 521,300 20 25,433 25,433 dot L'phl Fixtures (1 x 3) 1 # 1998 b300.00 5300 20 355 358 ahead Ezledor M FWUres 4 # 1998 SO 20 plosion Proof Light Futures 4 # 1998 50 ZO 4n ,Mechanical, HVAC Ta .ECTRIC CABINET UNIT HEATER EUH 2125y2009 1 # 1998 53,DW.00 53,D00 18 3,183 3,183 ENTRIMASTER EXHAUST FANS EXF 2x1512009 3 # 1996 §4,000.00 512,000 20 14,328 14,329 ENTRIMASTER EXHAUST FANS EXF-i 2125Y1009 1 # 1998 54000.00 S4,DDD 20 4,778 4,778 ENTRIMASTER E%FiAUST FANS F~(F-14 y25l2009 1 # 1996 54,000.00 54,000 20 4,718 4,778 ELHI INDUSTRIES EXHAUST FAN E%F-3 y25l2009 1 # 1998 54,000.00 S4,D00 20 4,778 4,776 ENTRIMASTER EXHAUST FANS IXF-4 y2yP00A 5 # 1998 54,DOD.DD 520,000 20 23,881 23,881 ENTRIMASTER EXHAUST FANS FXF-5 y25f2009 1 # 1996 54,000.00 54,000 20 4,718 4,778 EVERBER RAY INFRARED HEATERS IRH y2512009 2 k 1998 53,80000 $7,800 20 9,075 9,075 EVERBER RAY INFRARED HEATERS IRH y25/2009 2 k 1898 53,800.00 $7,800 20 9,075 9,075 IDUSTRIAL AIR MAKE-UPAIR UNIT MAU-2 y2r~pp9 1 # 1998 $30,000.00 530,000 21 38,896 36,988 IDUSTRIAL AIR MAKE-UP AIR UNIT MAU3 y25R009 i k 1898 $30,000.00 530,000 21 38,898 36,998 IDUSTRIAL AIR MAKE-UP AIR UNIT MAU-4 y25200A i k 1998 530,000.00 530,000 21 38,898 38,698 IDUSTRIAL AIR MAKEd1P AIR UNIT MAU-5 y2512009 1 # 1996 $30,000.00 530,000 21 38,898 gg~ggp IDUSTRIAL AIR MAKE-UP AIR UNff MAU-1 y2S7200B 1 k 1896 $30,000.00 530,000 21 38,898 38,898 °NNO%ROOFfOP UNIT RHG7 y2512009 1 # 1996 518,000.W 518,000 20 19,105 19,10.5 ENNOX ROOFTOP UNIT RHG2 y2512009 1 # 1998 §16,000.00 518,000 20 18,105 18,105 EVERBER RAY INFRARED HEATERS IRH y2512009 8 k 1986 53,800.00 522,800 20 27,224 27,224 OX ALERT C6C02 SYSTEM YL512009 1 # 2010 515,W0.00 515,000 20 27,092 27,092 DC coMml system (Dead) y25Y2009 i # 1998 §35,000.00 535,000 18 37,132 37,132 must Vents 8 # 1998 EO 20 sls•Tmdc LM 1 # 1988 S35,W0.00 535,000 30 58,185 56,185 sls-Car Lift 1 # 1998 57,000.00 51000 20 6,356 8,358 sls-lhil' Lifl i # 1998 S6,OOD.00 SB,D00 20 7,164 7,184 edread Crane i # 1998 535,000.00 $35,000 25 48,448 48,448 dGe Exhaust System 4 # 1998 52,OOD.OD 58,000 25 11,074 11,074 'Alt Reels 17 k 1998 5300.00 55,100 20 fi,090 8,090 :wash Stallon 1 k 1998 5300.00 5300 10 SCircle Sink ~ 1 # 1998 52,000.00 52,000 20 2,388 2,388 ~uM Fans 1 # 1998 50 es, Fumishings6E ui meM region Oesk 1 k 1998 $500.00 5500 20 597 587 tll Mounted Display Cases 1 # 1998 52,000.00 52,000 20 2,388 2,368 om Divider 1 # 1998 SO 20 r Fixtures and A liances nets and Sinks 1 # 1996 52,500.00 52,500 20 2,985 2,985 riHOOd 1 # 1996 5350.00 5350 20 418 418 edor ldenlifiralion Signs # 1998 5100.00 SO 50 edor Diredianal Signs # 1998 52,500.00 EO 20 Sah Suiltlin ncrele Floor 3800 sf ZO ncrele Ceiling 3800 sf 20 notate Wags 8000 sf 20 15tore rage Door (1D z 10) 1 # 2008 20 :el Door 1 # 2006 20 R:1FadlifiesManagemeMPlan12010_FacilNas_Management_PIan2010.09.07MaintenanceCeMer _ Page2ar3 nano Center 1998 delmarei Street 2011-2035 Im Size Imo Todays COSt Imch) Casl for total nv ills 2011 2012 2013 2014 2015 2018 2017 2018 2018 2020 2021 2022 2023 2024 2025 2028 2027 T018 2028 2030 2031 2032 2033 2031 2035 Totals icrate Floor 600 sf 2008 20 Jause Boob Ceilnp 800 sf 2008 20 Oause SoaN WaOs 1000 sf 2008 20 Totals S S 158,708 S S S 381894 E 420,355 S 184,481 S S S E 157,432 E 8,418 S E 37,815 S E 58165 E E - S 19,391 E 27,092 S E S S E S 1,429,548 R:1Fadli6esManagemeMPlan12010_Factlities_Managemmt PIan2010.09.07MaintenanceCenter Page3o/3 1 2 3 4 5 6