HomeMy WebLinkAbout06 22 2015 1 Draft CIP - Workshop REPORT
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL WORKSHOP REPORT
MEETING DATE: JUNE 22, 2015
PREPARED BY: CATHY ERICKSON, ACCOUNTING MANAGER
LARRY POPPLER, CITY ENGINEER/DIRECTOR OF INSPECTIONS
KATY GEHLER, PUBLIC WORKS/NATURAL RESOURCES DIRECTOR
PRESENTED
BY:
CATHY ERICKSON, LARRY POPPLER, AND KATY GEHLER
TOPIC: DRAFT 2016 – 2020 CAPITAL IMPROVEMENT PROGRAM
DISCUSSION: Introduction
This year, the CIP Council Workshops were divided into three parts.
Part 1 provided an outlook to the 2016 CIP and budget, overall discussion
of CIP process, 2016 projects, and the impact of the CIP on the debt levy.
Based on the 2015-2019 adopted CIP the preliminary outlook is a 7.1%
increase in the property tax levy capital projects. This increase is detailed
in the table below:
Amount %
Debt Service Levy increase for 2016 $ 509,034 4.9%
CIP increase based on current long-range plans $ 225,000 2.2%
Equipment Replacement Plan 100,000
Facilities Management Plan 125,000
Property Tax Levy Increase for CIP-Preliminary $ 734,034 7.1%
Part 2: The purpose of this workshop is to complete a city council review
and receive councilor input regarding the proposed 2016-2020 Capital
Improvement Program (CIP) for the following draft plans:
1) Transportation Plan (10-year)
2) Water Operating Plan (10-year)
3) Sanitary Sewer Operating Plan (10-year)
4) Water Quality Operating Plan (10-year)
5) Utility Capital Projects
Part 3: The remaining CIP draft plans, noted below, will be reviewed at the
July 13 Council workshop
6) Facilities Management Plan
7) Equipment Replacement Plan
8) Park Amenities Plan
9) Technology Plan
The July 13 Council workshop will also include the financial analysis of the
Capital Improvement Plans.
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History
The City’s Capital Improvement Program (CIP) has become our most
important and impactful financial planning tool for the following reasons:
It sets forth the actions we intend to take alone or with others to
restore, build or replace city infrastructure estimated to exceed $400
million.
It is a multi-year document which divides the financial planning
focus over nine key infrastructure systems.
The CIP reflects the City Council values as follows:
Delayed repair and maintenance ultimately results in higher costs
so we do not “kick the can down the road to future taxpayers.”
Studies show that the most cost effective road investment dollars is
preventative maintenance so focus funds in this area.
The life span and operating cost of rolling stock and public buildings
can be extended and minimized, respectively, through aggressive
preventative maintenance.
In addition to buying replacement rolling stock, implement tactics
like refurbishment, buying used equipment and buying equipment
with other entities when appropriate.
Invest in technology to squeeze the most out of our personnel
investment.
Collaborate with other entities to more cost effectively do those
things which were once done alone.
Articulate the purpose of each fund balance and focus on
maintaining each at the appropriate level.
Adjust rates annually to mitigate against less frequent but more
significant rate increases.
Current Circumstances
Staff has sought to be consistent in the update of each of the Plans by
using the following methodologies:
Existing Assets/Amenities
Replacement year is based on the useful life of the asset;
Replacement value is based on a current estimated
replacement cost inflated at 3%/year to the scheduled
replacement year;
Replacement is evaluated each year depending on the condition
and safety of the asset, maintenance needed, etc.
Community Growth
Generally speaking, staff has not added resources (vehicles,
equipment, technology, etc) that would be associated with the
growth of the community for several years.
Staff has updated the Plans and will present the 2016 projects at the
workshop for City Council consideration.
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The draft summary documents have been included for City Council review.
The supporting documentation for each of the plans is available if needed.
In addition, a color map has been included to help you visualize the
location of the proposed street improvement projects.
Conclusion
The City Council should provide Staff with comments and input on the Draft
CIP so that it can be refined in preparation for the public review and
approval process.
Once the City Council has completed the review of the CIP plans, and
provided direction on project priorities by plan, staff will make any revisions
before the public hearing if at all possible.
The Planning Commission will be reviewing the proposed CIP on Monday,
July 20 for consistency with the Comprehensive Plan.
A public hearing before the City Council is scheduled for the proposed CIP
on Monday, August 10.
ISSUES: 1. Transportation Plan
2016-2020
The timing of projects has been adjusted based on previously discussed
City Council priorities, pavement degradation analysis, and timing with
other project partners. Staff has attached the following documents for
Council review and discuss at the workshop:
The Summary of the Transportation Plan (10-year)
The 2016 CIP Project Summary sheets that include the project
objectives and costs.
2. Utility Capital Projects
The Water, Sewer, and Storm Water Operating Plans include projects
associated with the Transportation Plan. In addition, the Water Operating
Plan includes the installation of well #10, a 2nd water treatment facility,
water storage and associated wells and the replacement of the automatic
meter reading system (AMRS). The Storm Water Plan includes pond
maintenance and retrofit projects.
2021-2025
Recognizing that many projects are shifted within our 5 year CIP, projects
scheduled for 2021 – 2025 show general non-specific information. Staff
recommends rehabilitation or reconstruction of 2 miles per year.
Other Projects
Several other projects have been discussed in the past but are not included
in the Transportation Plan and others which have been in the CIP have
been moved out until other financing or partnering can be secured. The
City Council should provide direction to City Staff regarding the
incorporation of these projects within the Capital Improvement Plan.
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FINANCIAL
IMPACT:
All items contained in the CIP require City Council approval prior to
construction or acquisition. Approval of the CIP does not obligate the City
to complete the proposed projects. The 2016 projects, equipment
replacement costs and facility repairs will be incorporated into the 2016
budget requests for budgeted funds.
Additional financial information related to the impact of the proposed CIP
on debt levels, fund balance reserves and average utility customer will be
distributed at the 2nd workshop.
RECOMMENDED
ACTION:
The Council should provide comments on the draft document and its
various elements in order that the approval process can proceed as
planned.
REPORTS /
CHARTS
ATTACHED:
1) Transportation Plan (Summary)
2) Map of Transportation Improvements
3) Street Project Fact Sheets