07-28-14 CC WS AgendaCITY OF SHOREWOOD
CITY COUNCIL WORK SESSION
MONDAY, JULY 28, 2014
AGENDA
1. CONVENE CITY COUNCIL WORK SESSION
A. Roll Call
B. Review Agenda
2. 2015 — 2019 CAPITAL IMPROVEMENT PROGRAM
3. ADJOURN
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
6:00 P.M.
Mayor Zerby
Hotvet
Siakel
Sundberg
Woodruff
ATTACHMENTS
Finance Director's memo
® #2
MEETING TYPE
City of Shorewood Council Meeting Item Work Session
Title/ Subject: 2015 -2019 CIP
Meeting Date: July 28, 2014
Prepared by: Bruce DeJong, Finance Director
Reviewed by: Bill Joynes, City Administrator
Larry Brown, Public Works Director
Paul Hornby, City Engineer
Attachments: CIP Projects by Funding Source
Policy Consideration:
How should the City of Shorewood prepare Capital Improvement Plans (CIP) for 2015 -2019?
Background: Staff would like to start the conversation regarding the CIP for 2014 based on the
suggestion from the Mayor and several council members. There are many challenges in regard to
funding CIP projects as we continue to run into low cash balances in many of the funds for trails, parks,
and equipment. This will necessitate raising property taxes, transfers from other sources available
primarily in the enterprise funds from the Water or Sewer fund balances, or possibly bonding.
There are major changes to the CIP from the one adopted for 2014 -2018 in Equipment Replacement,
Street Reconstruction, Trails, and Storm Water. The Equipment Replacement fund needs to have a
more specialized trail plow. This piece of equipment costs about $160,000. The good news is that it can
also be fitted with attachments for mowing. As a result, we can avoid replacing the Ford tractor ($54K)
and the side and rear mower attachments ($30K) that were planned in 2015. This gets us over halfway
to the cost of the new machine and there is some trade value left in the old equipment.
In Street Reconstruction, staff has proposed reconstructing Strawberry Lane and a portion of W 62nd
Street in 2019 instead of the seal coat that was planned. This is coordinated with constructing a trail
and improving storm sewer processes in that area. This is a major increase in cost. We have also added
Eureka Road N to the Street Reconstruction plan. In response to the City Council deciding against an
MSA funded project, something needs to be done on the road. Staff is proposing a reclamation which is
preliminarily estimated at $260,000. The Storm Water improvements associated with Eureka Road N
are still included in this preliminary analysis waiting on some direction from City Council.
The Strawberry Lane trail is basically extended south from Smithtown Road and curves around W 62nd
Street to Cathcart Park. By constructing the trail in conjunction with road work it reduces the estimated
cost from $800,000 down to $345,000.
The Stormwater Fund absorbs new costs for Strawberry Lane and W 62nd in the amount of $283,000.
This will have to be accomplished in conjunction with other regional improvements in the area storm
water management around Freeman Park and Shorewood Oaks area.
The primary challenge in the Park Improvement Fund is deciding what to do in Badger Park. The current
Badger Park plans are over $1,000,000 and staff and WSB are reviewing what can possibly be done to
reduce the cost. Even with the more modest estimate of about $523,000 included in the 2014 -2015 CIP
can't be funded from current resources. The Park Improvement Fund has about $213,000 in fund
balance at year end 2013 - less about $15,000 of remaining project costs for 2014 projects. The
modifications could also be staged over several years instead of one large project. That would not
necessarily reduce the total cost, but the annual resources needed could be minimized.
The Water Fund will postpone a couple of projects from 2014 to 2015. This is the result of the west
water tower inspection. There was freeze damage that makes cleaning and repainting more difficult
which will require more time than will be available this fall after the sprinkling season. This will also
delay the radio /ISP project until 2015. Both projects are adequately funded and delaying a year doesn't
pose any problem from the staff viewpoint.
Financial or Budget Considerations:
The challenge is to determine the most acceptable financing method for the projects the City Council
wants to undertake. There are resources available to pay for many of the contemplated projects, but
the timing of those projects and the specific funding is debatable since there is no one "right way" to
cover these costs.
The enterprise funds were reviewed to determine appropriate rates to cover all the costs associated
with the operations. The Storm Water fund rates need to be increased but a determination of how
much of the storm water work associated with trails is crucial to that process. The Sewer and Water
funds have cash balances in excess of what is necessary for operations and much of that could be
transferred out to other capital projects.
The trail projects have been designed to State Aid (MSA) standards and part or all of the MSA
construction allocations that the city receives could be allocated to trails. Eureka Road North was the
only street project anticipated to use MSA funds, but the road could be reclaimed in its current
configuration for significantly less than the amount required to meet MSA standards. This would
potentially free up funds for the trail projects. There are no other MSA construction plans at this point.
Options:
The City Council is encouraged to discuss any capital project changes with staff.
Recommendation / Action Requested:
Staff recommends that the City Council determine which projects it wants to fund and how the costs
should be allocated between funds in order to provide a reasonable estimate of any increased tax levy
support prior to the adoption of the preliminary levy later this summer.
Next Steps and Timelines:
The City Administrator and Finance Director intend to continue discussions regarding capital and budget
items through the Truth -in- Taxation hearing in December.
Connection to Vision / Mission:
Adopting a prudent capital plan contributes to sound financial management.
City of Shorewood, Minnesota
Capital Improvement Program
2015 thru 2019
PROJECTS BY FUNDING SOURCE
Source Project# Priority 2015 2016 2017 2018 2019 Total
402 - Park Improvements
Freeman Plaza
P0100
5
5,000
5,000
Freeman North Playground Equipment
P0102
4
55,000
55,000
Freeman Parking Lot w/ MCWD
P0103
5
50,000
50,000
Freeman Ball Field Lights
P0104
5
75,000
75,000
Freeman Picnic Shelter Re -Roof
P0105
4
3,000
3,000
Freeman - Waterline for Community Garden
P0111
4
8,000
8,000
Cathcart Park - Resurface Tennis /Basketball Courts
P0200
1
6,500
7,000
13,500
Cathcart Park Hockey Boards
P0201
3
40,000
40,000
Cathcart Park Tot Lot
P0202
5
50,000
50,000
Badger Park Tennis Courts
P0301
2
8,000
81000
Badger Park Field Improvements
P0302
n/a
70,000
70,000
Badger Park Parking & Road
P0303
2
178,000
178,000
Badger Park Amenities
P0304
2
157,000
157,000
Silverwood Park - Resurface 1/2 court
P0500
2
2,000
2,500
41500
Silverwood Park Equipment
P0501
3
60,000
60,000
Silverwood Park Swing Set
P0502
3
14,000
14,000
Skate Park Rehab
P0600
3
75,000
75,000
402 - Park Improvements Total
413,500
118,000
121,000
194,500
19,000
866,000
403 - Equipment Replacement Fund
UTV - replace unit 34
034
5
20,000
20,000
Sweeper - replace unit 46
046
5
4,000
4,000
Flatbed - 4 x 2 Replace unit 49
049
5
44,000
44,000
Trailer 18' replace unit 59
059
5
15,000
15,000
Sand Pro 3000 - replace Unit 64
064
2
13,000
13,000
Dump Truck - replace unit 72
072
5
170,000
170,000
Pickup - 350 44 replace unit 81
081
5
42,000
42,000
Groundsmaster Mower replace unit 93
093
5
28,000
28,000
Boom Truck
100
5
84,000
84,000
Chipper
101
5
45,000
45,000
Trail Plow
103
1
160,000
160,000
Cab for mower - replace A04
A04
4
7,000
7,000
Blower for Groundsmaster- replace A08
A08
3
9,000
9,000
Engine(fransmission Analysis Station
A09
n/a
4,500
4,500
Replace Sander
A10
3
14,000
14,000
South Shore Community Center
PF -11 -01
n/a
2,500
43,000
41,000
86,500
Public Works Building
PF -12 -01
n/a
81,000
81,000
Computer Upgrades
T -99 -99
1
10,000
10,000
10,000
10,000
10,000
50,000
403 - Equipment Replacement Fund Total
430,000
141,500
193,000
68,500
44,000
877,000
77urrsday, July 24, 2014
Source Project# Priority 2015 2016 2017 2018 2019 Total
404 - Street Reconstruction Fund
Chaska Road
LR -15 -01
5
87,000
87,000
Mayflower Road
LR -15 -02
5
33,000
33,000
McKinley Court
LR -15 -03
5
40,000
40,000
Murray Hill Road
LR -15 -04
5
52,000
52,000
Star Circle & Lane
LR -15 -05
5
453,000
453,000
Summit Avenue
LR -15 -06
5
32,000
32,000
Amlee Road
LR -16 -01
5
332,000
332,000
Garden Road
LR -16 -02
5
42,000
42,000
Gillette Curve
LR -16 -03
5
35,000
35,000
Manitou Lane
LR -16 -04
5
317,000
317,000
McKinley Place N & S
LR -16 -05
5
65,000
65,000
Shady Hills Circle
LR -16 -06
5
51,000
51,000
Echo Road
LR -17 -01
5
71,000
71,000
Howards Point Road
LR -17 -02
5
180,000
180,000
Kathleen Court
LR -17 -03
5
22,000
22,000
Oak Ridge Circle
LR -17 -04
5
29,000
29,000
Riviera Lane
LR -17 -05
5
371,000
371,000
Shorewood Lane
LR -17 -06
5
423,000
423,000
Mann Lane
LR -18 -01
5
444,000
444,000
Maple Street
LR -18 -02
5
100,000
100,000
Bayswater Road
LR -19 -01
5
100,000
100,000
Boulder Circle
LR -19 -02
5
49,000
49,000
Christmas Lane W
LR -19 -03
5
32,000
32,000
Lilac Lane
LR -19 -05
5
46,000
46,000
Strawberry Lane & W 62nd
LR -19 -06
5
1,365,000
1,365,000
Vine Street
LR -19 -07
5
33,000
33,000
Eureka Road N
LR -19 -08
5
260,000
260,000
Street Sign Replacement
LR -99 -001
2
6,900
7,200
7,500
7,800
8,100
37,500
Maintenance - Bituminous Sealcoating
LR -99 -100
1
228,000
245,000
184,000
238,000
305,000
1,200,000
404 - Street Reconstruction Fund Total
931,900
1,094,200
1,287,500
789,800
2,198,100
6,301,500
406 - Trails
Smithtown from Co Rd 19 to Regional Trail
T006
1
703,500
703,500
Strawberry Lane & W 62nd
T007
1
345,000
345,000
406 - Trails Total
703,500
345,000
1,048,500
601 - Water Fund
Air Compressor - Replace unit 38
038
3
12,000
12,000
Utility Truck w /crane & toolbox replace unit 76
076
5
77,000
77,000
Utility Vehicle - replace unit 77
077
4
26,000
26,000
Pick -up - 4 x 4150 Replace Unit 80
080
5
35,000
35,000
Radio /ISP Communications System
W -10 -01
1
80,000
80,000
Water Main - Star Circle & Lane
W -11 -02
n/a
130,000
130,000
W, Water Tower - Rehab & Painting
W -13 -03
3
450,000
450,000
601 - Water Fund Total 784,000 26,000 810,000
611 - Sanitary Sewer Fund
Sewer Jetter - replace unit 60 060 5 51,000 51,000
Thursday, July 24, 2014
Source Project# Priority 2015 2016 2017 2018 2019 Total
Lift Station 10 Rehab - 4773 Lakeway Terrace
SS -15 -01
3
80,000
80,000
Lift Station 20 Rehab - 26550 Noble Road
SS -16 -01
3
70,000
70,000
Lift Station 7 Rehab - 5600 Woodside Road
SS -16 -02
3
80,000
80,000
Lift Station 18 Rehab - 4996 Shady Island Point
SS -17 -01
3
10,000
10,000
Infiltration and Inflow Reduction
SS -99 -05
1
70,000
70,000
70,000
70,000
70,000
350,000
611 - Sanitary Sewer Fund Total
150,000
271,000
80,000
70,000
70,000
641,000
631 - Stormwater Management Fund
Smithtown Road Trail Stormwater
SS006
1
234,500
234,500
Star Circle & Lane
STM -15 -01
5
31,000
31,000
Grant Lorenz
STM -15 -02
5
50,000
50,000
50,000
150,000
23350 Academy Drainage
STM -15 -04
4
75,000
75,000
Garden Road
STM -15 -05
4
26,000
26,000
Amlee Road
STM -16 -01
4
78,000
78,000
Manitou Lane
STM -16 -02
4
75,000
75,000
Riveria Lane
STM -17 -01
4
87,000
87,000
Shorewood Lane
STM -17 -02
4
99,000
99,000
Mann Lane
STM -18 -01
4
105,000
105,000
Maple St
STM -18 -02
4
24,000
24,000
Strawberry & W 62nd
STM -19 -02
4
283,000
283,000
631 - Stormwater Management Fund
416,500
203,000
236,000
129,000
283,000
1,267,500
Total
GRAND TOTAL 3,829,400 1,853,700 1,917,500 1,251,800 2,959,100 11,811,500
Thursday, July 24, 2014