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HomeMy WebLinkAbout2.b. Review of proposed Capital Improvements Plan for 2011-2020ROSEVIOUNT EXECUTIVE SUMMARY CITY COUNCIL City Council Workshop Meeting November 10, 2010 AGENDA ITEM: Review of proposed Capital Improvements Plan for 2011 -2020 E D , S CTION• PREPARED BY: Dwight Johnson, City Administrator AGENDA NO. 2 ATTACHMENTS: Draft CIP; Fire Truck Information APPROVED BY: RECOMMENDED ACTION: Review and discuss draft Capital Improvements Program BACKGROUND Each year, staff presents a draft 10 year capital improvements program (CIP) for consideration by the City Council. The CIP is a valuable planning tool and also is looked upon favorably by bond rating agencies. While the eventual adoption of the plan does not commit us to any specific expenditure, it does represent our best effort to forecast the City's needs for equipment, vehicles, buildings, park improvements, and other capital improvements. Also built in is debt service for various past projects. Staff reviewed cash flow projections for each of the major funding sources to verify that funds are likely to be available for the listed projects. ASSUMPTIONS Many portions of the CIP depend on the pace of development as do some of our major capital revenue sources such as park improvement funds or water developer charges. In general, where it seemed necessary to make a projection, we assumed that 100 new residential units would be built in 2011 and that our historically normal pace of development of about 300 new residential units /year would resume in 2012 and beyond. This is not a prediction as much as it is a planning tool. Many projects would not be needed or built as soon as shown if development does not occur at this pace. DISCUSSION OF LISTED PROJECTS BY YEAR The following is a brief discussion of several of the more noteworthy items in the draft CIP, arranged by year: 2011 UMore Ballfields ($800,000). This project was in the 2010 CIP but agreements with the University of Minnesota are not yet finalized. The project is a joint venture with the University to construct up to five ballfields on UMore property adjacent to DCTC. A $200,000 donation of grading by SKB would be used for this project. The University would provide the land in return for park dedication credit. Replacement Fire Truck Truck ($550,000). The current Fire Engine will be 25 years old in 2011. Please see attached separate information sheets on this item. The estimated price is $50,000 less than in last year's plan and can be purchased without borrowing any funds. 2012 Tennis Courts ($250,000) This project, as recommended by the Park Commission, would construct four additional tennis courts. The location could be in Erickson Park or in some other central location. The previous CIP showed funding for up to eight courts. Biscayne Park Improvements ($70,000) These funds would be used to construct a soccer /lacrosse field. 2013 New Neighborhood Park N -7 ($500.000)—Construction of our next neighborhood park will depend on the timing and location of new growth in the City over the next few years. Interest has been shown in developing the land north of Bonaire Path and east of Bacardi and a plat may be forthcoming in this area. New well construction ($1,250,000). The timing of a new well also depends on the pace of growth. Currently, we can absorb an estimated 1200 -1500 new residential units before a new well is required. However, a new well can take two years to build, so we cannot wait until 1200+ units are actually built. 2014 New Neighborhood Park N- 1($500,000) This park is planned for the Prestwick Place subdivision, but as with other neighborhood parks, the actual timing of this park depends on the pace of development. County Road 73 Right of Way: Bonaire Path to Inver Grove Heights ($347,040). The timing of the extension of Akron Avenue north to our northern border is also dependent on the timing of development and must also be coordinated with Dakota County. This item is for our share of right -of -way acquisition. Water Storage Facility ($2,800,000). This project would be paid from development fees and also depends on the future pace of growth in the community. 2015 County Road 73 construction to IGH border ($1,405,890). Assessments will be the primary funding source for our share of the construction cost. County Road 42 /Hwy 52 Interchange ($2,753,401 City share). This project is shown in 2015, but will depend on whenever federal funding can be secured. MSA funds and assessments will be needed to fund the City's share. UMore ballfield improvements ($300,000). The initial work planned for 2011 will be barebones and may not include paving the parking or other features. This allocation would allow us to come back and finish a few more portions of the complex. Well 17 construction ($1,500,000). This is another project that depends on the pace of development. 2 DISCUSSION OF SPECIFIC CAPITAL FUNDS AND ONGOING EXPENDITURES 1. Building CIP Fund. The Building CIP fund is projected to have $988,000 at the end of 2010 if we continue to allocate SKB funds to it. The first $400,000 of SKB funds each year is designated for the General Fund; all amounts over $400,000 may be designated for capital funds. Repairs and upgrades are needed at the Community Center including addressing a water intrusion problem and updating the fire alarm system. We also anticipate using Building CIP funds for demolition of the Genz -Ryan property, the house across from City Hall where the Park and Ride lot is planned, and the garage building next to the old St. Joseph's school. Even after these expenditures, if SKB funds continue as projected for the next several years, significant funds will remain for a medium sized building project such as a senior housing /senior center complex. These funds, combined with leveraging our ownership of the land north of the Steeple Center, may help negotiate a public- private partnership for the property. 2. Street CIP Fund. The projected funding for street improvements appears to be adequate for the next several years, subject to future adjustments for the addition of new streets to the system and any inflation. In the second half of this decade, funding may need to be increased according to long range projections. The Street CIP is also currently the funding source for certain street improvements that do not qualify for Minnesota State Aid (MSA) funding, such as the future paving of Akron Avenue north of Bonaire Path. 3. Equipment CIP Fund. This fund is designed to have a steady revenue stream that will meet our short and long term equipment replacement needs without the need for dramatic year to year changes in tax requirements. In 2009, the City analyzed and implemented an alternative equipment replacement financial model that extended the replacement time for many vehicles. The new CIP continues to use this extended replacement financial model. Actual equipment replacement is determined by the condition of the equipment, not the financial model. For example, for the 2011 budget it was determined that a dump truck does not need to be replaced even though it now meets the replacement time schedule on the extended life financial model. The major item for replacement consideration in 2011 is the 25 year old fire engine (see separate information sheets). 4. Park Improvement Fund. This fund has a current balance of $1,400,000. With proposed expenditures for UMore ballfields ($800,000), tennis courts, and a new neighborhood park anticipated within the next several years, the current funds on -hand will be depleted. The future park projects are based on the growth assumptions noted at the beginning of this report. Park dedication revenues are directly related to development. 5. Ice Arena Fund. Anticipated Ice Arena projects are included as a part of the Ice Arena Fund. The General Fund transfers $115,000 per year to the Ice Arena Fund. The Ice Arena Fund was reviewed as part of this CIP update and the current rate of fund transfer is sufficient to fund all of the projects listed in the 10 year plan. Regular Ice Arena updates and repairs should help reduce the chance of a sudden failure of a key Ice Arena system. 6. Minnesota State Aid Fund. The City receives an annual allocation of gas tax revenues from the State each year. Currently, the amount is about $861,000 per year. MSA funds were a significant source of funding for this year's Shannon Parkway improvements. MSA funds can only be used on 20% of our road way system, generally the collector and arterial streets that are not County or State highways. Proposed future uses of MSA funds include the extension of Connemara to Akron Avenue, future improvements on Shannon Parkway south of County Road 42, and the County Road 42 /Highway 52 interchange project. The cash flow of our MSA account has been reviewed to verify that these projects can all be funded as planned. 3 7. Utility Funds. Our Utility funds are strong with the exception of the Water Core fund, which has a balance of only about $350,000 currently. The Water Core Fund receives developer contributions and is used to build new wells and storage facilities as well as pay existing debt service on similar facilities. Water rates were raised in 2010 partially in case water fees are needed to help support debt service requirements. No water rate support was actually needed in 2010, and minimal or no support appears to be needed in 2011. Future well and storage projects depend on growth, but fortunately such projects will not be needed until more growth occurs. SUMMARY AND CONCLUSION The draft 2011 -2010 Capital Improvements Program will not require any property taxes beyond what is already proposed in the 2011 budget and is designed to be a realistic plan for future projects and equipment needs. It contains recommendations from staff as well as the Parks and Recreation Commission. The Council is requested to review the plan and direct any changes desired before it is presented for approval. 4 4ROSEMOUNT CITY COUNCIL M E M O R A N D U M To: Mayor and City Council From: Dwight Johnson, City Administrator Date: November 5, 2010 Subject: Summary of Engine 11 Replacement Considerations Attached are some informational items from the Fire Department and maintenance staff regarding the possible replacement of Engine 11. This brief memo summarizes some of the considerations for staff in recommending the replacement of this vehicle in 2011. Engine 11 is a Fire Pumper that operates out of Station 1. It is a front line response vehicle, not a reserve truck. It will be 25 years old in 2011. 1. Based on information from suppliers, price increases may accelerate in coming years. From 2005 to 2008, prices increased by about 6% annually. Companies indicate 3 to 5% increase in 2011 but predict larger increases in 2012 and beyond. New NFPA standards may be required in 2012. Price per year may be a valid way to review the options. Examples: • Current Cost for 2011 is $550,000. Cost per year is $550,000/25 years= $22,000 /yr • If cost is $583,000 in 2012 ( +6 0/o), cost per year is $583000/26 years= 22,423/yr • If costs climb 6% for 5 years, cost per year is ($550,000 *1.338) = $736000/30 yrs= 24,533/yr • If no inflation for 5 years, cost per year is $550,000/30 yrs= $18,333/yr 2. Parts harder to find 3. Less predictable performance 4. Only one or two other cities in a recent survey keep this type of vehicle longer than 25 years. 5. Current truck may still have residual value now; less likely in future years. 6. Newer trucks are more firefighter friendly. Ex. Enough space to put on SCBA gear in the truck. 7. Intangibles: effect on recruitment /retention 8. The current Engine 11 is in good shape for its age, and we have no objective reason to believe it won't last another year. Items 1 -7 should be the considerations for replacing it now, not that it can't last another year. Johnson, Dwight From: Voelker, Jim Sent: Wednesday, November 03, 2010 3:55 PM To: Johnson, Dwight Subject: Price increases Dwight, I talked to three different fire apparatus vendors and all three had different estimates on the price increases in the last six years and into the future. I am going to try and explain the different vendors reasoning for the increased prices in the past and into the future. Since 2005 E -1 fire trucks have had the following increases due to metal price increases, new NFPA requirements and also the new engine emissions price factors. 2005+8% 2006+7% 2007+7% 2008+5% 2009+5% 2010+5% 2011 +3 -5% From Pierce Fire Apparatus the increases have been. 2005 - 2007 + 6% plus a $10,000 metal surcharge 2008+5% 2009 no increase 2010+4% 2011 +3 -4% From Rosenbauer Fire Apparatus the increases have been. 2005- 2010 +3.5% 2007 + $ 7,000 for engine emissions 2009 + $ 7,000 for NFPA standards 2010 + $ 25,000 for engine emissions There will also be an NFPA Standards increase in 2012 from what the manufacturers are hearing. Hopefully these numbers help you, let me know if you need anything else. Jim Voelker Assistant Fire Chief, City of Rosemount 2875 145th Street West Rosemount, MN 55068 iim.voelkerO- ci.rosemount. mn.us 651 - 322- 2067(office) 612 - 414- 0721(cell) Engine 11 is a 1986 Ford L -9000, it was refurbished in 2002 with some repairs, body work and new paint to extend the life of this apparatus. As with any vehicle that is over 24 years old it is now starting to show its age with the inability to get parts for any needed repairs, that was found by the Cities Mechanic when he had to locate parts on the cab. The wiring is also starting to deteriorate as we found in a repair that was done in March for the siren that cost $2437. This truck has never had any major engine or transmission work done to it but could give us problems at any time. E -11 has 42,657 miles and 3361 hours on the truck, the hours are more realistic than the miles because of the engine is running while pumping water for fires and also training. The way that the cab is configured on this age of an apparatus it is difficult if not impossible for Firefighters to safely don their SCBA's because of the close quarters of the back of the cab. With the new fire engines the cabs are much more spacious for this to be done while enroute to a fire, where as we all know time is precious. E -11 is at an age where we could possibly get some money for it, if sold to an outstate agency. 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Replaced bulbs. Parts: 1156 Activity 475 - Equipment Repair Date 08/09/2010 Total Cost $828.70 Details Brake shoes separating. Replaced brake shoes and drums. Parts: 3699, EXPK4515QE, E5977L, E7895L Activity 003 - General Service Date 07/21/2010 Total Cost $735.13 Details Emergency Apparatus - annual pump service. See attached. Activity 475 - Equipment Repair Date 07/21/2010 Total Cost $159.65 Details Front suction drain still won't open. Replace front suction drain valve. Parts: N0110 Activity 475 - Equipment Repair Date 07/07/2010 Total Cost $70.00 Details Front suction drain won't open. Lube drain. Activity 475 - Equipment Repair Date 06/01/2010 Total Cost $52.50 Details Repaired left marker stick on bumper. Activity 480 - Equipment Maintenance Date 05/04/2010 Total Cost $26.25 Details Fill all tires to 100 PSI. Activity 475 - Equipment Repair Date 02/19/2010 Total Cost $2,437.27 Details EAM service to lights and water tank. See attached for details. Date: Tuesday, September 28, 2010 Report Title: Mainenance Summary Rosemount Maintenance Details ID 9183 Model L9000 Description ENGINE 11 (35183) Model Year 1986 Manufacturer FORD Odometer 42,974 Activity 475 - Equipment Repair Date 01/28/2010 Total Cost $103.18 Details Had to make a new door stop - can no longer get parts. Parts: CPS80076 Activity 003 - General Service Date 11/12/2009 Total Cost $275.61 Details Service generator 40 hours. Parts: 87778, 86118, 86120, 85970, 15W40 (21 qts), 1OW30, 85358 Activity 480 - Equipment Maintenance Date 10/01/2009 Total Cost $84.00 Details Repair rear scene light. Activity 480 - Equipment Maintenance Date 08/19/2009 Total Cost $780.39 Details Serviced by Emergency Apparatus. See attached for details. Activity 480 - Equipment Maintenance Date 06/09/2009 Total Cost $188.49 Details Replace chain on chop saw. Parts: 99988800045 Activity 475 - Equipment Repair Date 04/28/2009 Total Cost $66.00 Details Replace auto air eject. Parts: 2800 -1360 Activity 475 - Equipment Repair Date 03/31/2009 Total Cost $38.37 Details Repair hose cap chains, right side. Parts: D6 (s- hooks) Activity 003 - General Service Date 10/14/2008 Total Cost $256.07 Details Service generator 29 hours. Parts: 87778, 86118, 86120, 85970, 15W40 (22 qts), 1OW30, 85358 Activity 475 - Equipment Repair Date 09/10/2008 Total Cost $1,821.53 Details Replace P/S assist cylinder. Parts: E4HZ3A540B, RGTL20SV8282A13 Activity 475 - Equipment Repair Date 12/20/2007 Total Cost $112.81 Details Repair RR flood light. Repair LR flood light. Lube passenger side seat belt latch. Parts: H50TL12, CIB -4537 Activity 475 - Equipment Repair Date 10/04/2007 Total Cost $24.00 Details Repair two compartement lights. Check rear tire air. Date: Tuesday, September 28, 2010 Report Title: Mainenance Summary Rosemount Maintenance Details ID 9183 Model L9000 Description ENGINE 11 (35183) Model Year 1986 Manufacturer FORD Odometer 42,974 Activity 475 - Equipment Repair Date 09/05/2007 Total Cost $24.00 Details Repair RR door latch. Activity 475 - Equipment Repair Date 04/25/2007 Total Cost $24.00 Details Right windshield wiper doesn't work. Check front tire pressure. Valve cap missing. Done Bill Murphy Activity 480 - Equipment Maintenance Date 01/02/2007 Total Cost $24.00 Details Tighten rear door hinges. Tighten packing on heater core valves. Activity 475 - Equipment Repair Date 12/05/2006 Total Cost $1,364.00 Details Check for oil leak under belly pan. Found oil dripping from primer pump discharge, normal per Mike H. Remove and clean auto air eject. Replace pump drain (part #71803 -3B). Activity 480 - Equipment Maintenance Date 11/13/2006 Total Cost $72.00 Details Clean front suction hose drain valve. Activity 499 - Miscellaneous Date 11/01/2006 Total Cost $9,557.00 Details Historical data from Manager Plus Activity 003 - General Service Date 10/16/2006 Total Cost Details General service. Activity 480 - Equipment Maintenance Date 10/09/2006 Total Cost Details Change differential lube. Repair right pump compartment light. Replace air filter. Total Cost $19,244 Date: Tuesday, September 28, 2010 Report Title: Mainenance Summary Rosemount 10 -YEAR CAPITAL IMPROVEMENT PLAN (CIP) BACKGROUND Historically, the City of Rosemount has usually had some form of 5 -year CIP in place to utilize for its capital improvements. There have been times where just a single year's capital improvements have been addressed and funded. As the City continues to grow, we believe that the careful development and continuous utilization of a realistic Capital Improvement Plan is essential to the proper management of the City. As we looked at developing a new 5- year CIP, it became apparent that the dilemma that the City of Rosemount faces is one of continued growth combined with restoration/reconstruction of the older portions of our city. This being the case, it was almost impossible to develop a plan for a 5 -year period that was very realistic. As work continued on the plan, we decided to explore the possibility of looking out farther and developing a longer plan that would more realistically allow us to plan for the City's future. What has evolved is the following 10 -year Capital Improvement Plan. We believe that great strides have been made to more accurately plan for the future of the City of Rosemount. This document is only a working guide that is utilized by the City Council and its staff to prepare for the future. The first year of the plan will be included as part of the formal budget that is prepared yearly as part of our Truth -in- Taxation process with the following years developed as a working tool for future years' discussions. GENERAL /ADMINISTRATIVE DESCRIPTION The CIP provides for specific funding of items, the nature of which is not considered "current" in their use or life expectancy. These items are generally of a higher estimated cost than $5,000 and will have a life expectancy of 3 years or greater. The source of funding for these expenditures is typically the general tax levy. In some instances, other funding is utilized. For example, beginning in 1996, revenues received from user fees are being designated in various CIP funds for capital improvement/equipment purchases. If these revenues are realized, the equipment or project will be completed and if the revenue is not realized the equipment will not be purchased. Individual departments are designated for each item proposed for purchase in this plan. TYPES OF CAPITAL IMPROVEMENT FUNDS Another area of change for the CIP is the implementation of three separate funds to isolate and better track the types of capital improvements being planned for. The following briefly describes each of the three: Building CIP Fund - This fund is used to account for the on -going capital improvements and possible additions to government buildings. Street CIP Fund - This fund is used to account for the on -going street construction and reconstruction projects within the City and all other major maintenance items related to both paved and unpaved streets including, but not limited to, street lights, signal lights, sidewalks and gravel road resurfacing. Equipment CIP Fund - This fund is used to account for the on -going replacement of and additions to City equipment. 0 M n 3 N n O O iv � C C D1 S (RD 0 m a n m 3 5 0 m - aao 0003 K N O 0 L N �. 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