10.4. SR 11-04-2013 /i
Elk Request for Action
Fiver
To Item Number
Mayor and City Council 10.4
Agenda Section Meeting Date Prepared by
Work Session November 4, 2013 Tim Simon, Finance Director
Item Description Reviewed by
2014 Capital Improvement Plan Cal Portner, City Administrator
Reviewed by
Action Requested
Continue 2014-2018 Capital Improvement Plan (CIP) discussions.
Background/Discussion
On August 12 and October 7, Council reviewed the 2014-2018 equipment purchase requests,
infrastructure improvement funds, and technology needs for the next five years.
Government Building Fund
This fund covers building construction and maintenance,landscaping, and remodeling projects for
municipal buildings. Building Maintenance Supervisor Gary Lore,in working with other department
heads,has estimated the replacement/repairs over the next 20 years and presented is 2014-2018 to
correlate with the CIP. These numbers are estimates only and will be updated annually. Staff will walk
through the projects and reserve standards that are set up in case of emergency repairs/replacements.
The primary funding source, aside from interest earnings,is the expansion fee. We are still anticipating
calling in the Library bonds on the call date of February 01, 2016, based on estimated cash balances
available.
Projects that will need to be prioritized over the next few years are the clubhouse at Pinewood and the
Ice Arena.
2014 primary projects include:
Activity Center—roof replacement ($100,000)
Activity Center—boiler,ventilation,AC unit, carpet/tiles,lighting upgrade ($126,557)
Lion's Park modification for warming house ($7,000)
Sealcoating-municipal buildings ($10,000)
Development Fund (City)
The Development Fund has a cash balance of$868,646 as of October 31, 2013,less the committed
amounts for Preferred Powder internal loan ($472,000), Comprehensive Plan update ($60,000), and using
the remaining Spectrum Payment In Lieu of Fees over 3 years ($145,707),leaves a balance of$190,939.
This fund has been used for the development of Northstar Business Park and Natures Edge Business
Center—Phase I. The primary revenues are any conduit bonding administrative fees and the tax
abatement repayments for economic development projects. Repayment of the Preferred Powder internal
loan and future land sales in Natures Edge Business Center will replenish the fund.
UREI
Capital Outlay Reserve Fund
This fund has no revenue stream other than interest income and donations. It has recently been used for
the purchase and replacement of IT hardware and software. The undesignated cash balance as of
September 30, 2013 is $1,413,293. The 2013 General Fund has a transfer in from the Capital Outlay
Reserve Fund of$112,900 for capital replacements and in 2014, $97,000 for capital replacements will be
directly budgeted against the fund versus a transfer in. In addition,the 2014 preliminary General Fund
budget has a transfer in of$200,000 from this fund from prior years excess fund balance. If all our 2014-
2018 technology replacements are fully funded from the Capital Outlay Reserve Fund it will be $562,500.
After the transfers, capital outlay and technology CIP the remaining balance will be approximately
$440,893 to fund future equipment and capital outlay.
Park Improvement Fund
The Park Improvement Fund was created to provide a funding source for replacement and further build
out/repairs of our current parks/trails. The current funding source is an annual transfer from the
Municipal Liquor Store Fund based on a percentage (45%) of profits after approved transfers. This was
amended during last year's CIP review. We will review the priorities and requests for 2014,which were
recommended by the Park and Recreation Commission.
We will also review a donation request for lighting at the Oak Knoll Fields. This would be in conjunction
with a donation from the football and lacrosse organizations. The estimated cost of lighting the field is
$135,000 and football and lacrosse is proposing to donate $73,000 over four years with $43,000 in 2014.
This represents approximately 54% of the project cost. In 2014, the year of the project,this would leave
a funding gap of$92,000 of which $30,000 will be donated to the city, $10,000 per year 2015-2017. The
overall financial impact after the donations is $62,000. Staff has identified several funding options if the
Council is in agreement with the project. Option 1 could be to use any excess General Fund fund
balance at the end of the year and transfer to the Park Improvement Fund for the gap. This would be a
one-time use and is appropriate with our fund balance policy,which states as example number two; to fund
a one-time (non-recurring) expenditure orgrant match opportunity. Option 2 could be to amend a budgeted
transfer from the liquor store ($137,500) to the Ice Arena,which will not happen in 2013 to the park
improvement fund. If Council would like more options staff will be prepared to discuss.
Park Dedication Fund
The Park Dedication Fund has seen a decrease in revenues in recent years as the recording of new plats
has slowed. This fund currently has one contract for deed obligation outstanding for the Pinewood Golf
Course. The estimated revenues in the attached exhibit have been completed with the assistance of the
city Planning Department. With the existing obligations and the estimated revenues,no projects have
been programmed in the current five-year CIP until revenues are sufficient to fund obligations or repay
the internal loans.
GRE Reserve Fund
■ RDF payment
The GRE Reserve Fund receives an annual payment for hosting the RDF plant. As you recall, the
Council approved a new agreement with a per MSW received fee. This fund was identified as a funding
source several years ago to make a portion of the Pinewood contract for deed payment. The cash
forecast assumes the RDF plant continues operation and the payment remains at the new revised level. If
park dedication revenues are insuffient to make half of the yearly contract for deed payment,this fund
N:\Public Bodies\Agenda Packets\l 1-04-2013\Final\x10.4 sr capital improvement plan.docx
has made internal loans to the Park Dedication Fund. Once park dedication revenues are sufficient this
fund will be repaid.
■ Peaking Plant payment
Starting in 2010, the city received payment from GRE for hosting the peaking plant. This amount will be
received over five years in the amount of$375,000. This amount is coded to the GRE Reserve Fund but
tracked separately. In 2011, the Council authorized the use of these funds for the downtown parking lot
acquisitions and the paying off of the ice arena bonds. In 2012, these funds were used for the grant match
of Bailey Point.
Next steps:
The complete document will be approved on December 16 at a regular meeting.
Financial Impact
N/A
Attachments
■ 2014-2018 Capital Improvement Plan Worksheets
N:\Public Bodies\Agenda Packets\l 1-04-2013\Final\x10.4 sr capital improvement plan.docx
10128/2013
A 1 B 1 C I D I E K L M N O P 0 R
1
2
3 CITY OF ELK RIVER
4 Building Reserve Capital Budget
-5- Estimate Estimate Estimate Estimate Estimate Estimate
6 2011 2012 2013 2014 2015 2016 2017 2018
7 Beginning Cash Balance 3,331,528 5,697,200 5,056,199 4,606,343 4,238,518 4,390,698 4,721,073 5,126,976
8
9 Sources of Funds
10
11 Other Revenues 756,949 634,637 850,000 850,000 1,300,000 1,300,000 1,300,000 1,300,000
12 Bond Proceeds - 6,857,654 - - - - -
13 Miscelleanous 13,169
14 Fire Station#1 expansion from Ambulance 62,894 5,241 - - - - - -
15
16 Grants - 6,521 - - - - - -
17 Other contributions
18 Transfer In(Other sources)
19 Liquor Funds 2,750,000 - - - - - - -
20 Interest earnings 56,267 71,118 76,843 69,095 63,578 87,814 118,027 128,174
21 Total Sources of Funds 3,626,110 7,688,340 925,843 919,095 1,363,578 1,387,814 1,418,027 1,428,174
22
23 Expenditures
24
25 Fire Station Expansion#3 - - - - - - -
26 Old Liquor Store demo - - - - - - - -
27 Public Works Facility Expansion 681,657 7,661,499 650,000 - - - -
2B Public Works heaterlhvac-old building - - - 18,000 - - -
29 Public Works office build out - - - 4,500 - - - -
30 Ice Arena Project - 7,823 - - - - -
31 City hall carpet replacement - - - - - - -
32 City hall roof repair - - - - - - - -
33 City hall RTU's - - - - - - - -
34 City hall paint repair exterior - - - - - - -
35 City hall EMS control upgrades - - - - - - -
36 City hall(space redesign) - - - 15,000 - -
37 City hall parking lot repair - - - - - - - -
38 City hall re-commissioning - 17,400 - - - -
40 Public Safety building-carpel - - - - 70,000 - -
41 Public Safety building-2nd floor buildout - - - - - - -
42 Public Safety building-additional garage spa - - - - - - 287,170
43 Public Safety building-garage floor - 20,056 - - - - - -
44 Public Safety building-parking lot repairs - - - - - - -
45 Public Safety building-Roof-top units - - - - - - - -
46 Public Safety building-Fire side remodel - - - - 85,000 - - -
47 Public Safety building-Roof - - - - - - - -
48 Public Safety building-floor tiles - - - - - 33,122 - -
49 Public Safety building-floor repair - 5,000 - - -
51 Fire Station#1-Roof - - 1D4,050 - - - - -
52 Fire Station#1-Garage Floor - - - - 48,000 - - -
63 Fire Station#1-Parking lot - - - - - - - -
54 Fire Station#1-Lighting Retrofit - - - 3,500 - - - -
55 Fire Station#1-Garage Doors - - - - - - - -
56 Fire Station At-Roof top units - - - - - - - -
57 Fire Station#1-Water meter&water heater 3,416 - - - -
58 Fire Station#1-furnace - - 5,200 - - - -
59 Fire Station#1-service doors 2,838 19,741 - - - - -
61 Lion's Park-Automatic doors - 6,521 - - - - - -
62 Lion's Park-warming house - - - 7,000 - - -
63 Lion's Park-carpet - - - - - - - -
64 Lion's Park-Furnace - - - - - - - -
65 Lion's Park-Relocation 15,222 - - - - - - -
66
67 Activity Center-Roof - - - 100,000 - - -
68 Activity Center-Boilers - - - 10,800 - - -
69 Activity Center-Ventilation - - - 20,000 - - - -
70 Activity Center-AC units - - - 25,000 - - -
71 Activity Center-CarpatlTiles - 5,000 - 20,800 - - - -
72 Activity Center-EMS controls - - - 17,487 - - -
73 Activity Center-Exterior Lighting - - - - - 11,040 -
74 Activity Center-Doors - - - 10,620 - - -
75 Activity Center-Interior Lighting/ceiling tiles - - 21,650 - - -
77 Sealcoating program(Gov't buildings) - 10,000 10,000 10,000 10,000 10,000 10,000
78 Transfer Out•Public Safety Bldg(DSF) - 250,000 250,000 250,000 250,000 250,000 250,000 250,000
79 Transfer Out-Insurance Fund 329,196 - - - - - - -
81 Streets Roof repair - - - - - - -
82 Miscellaenous projects(future building repair - 7,000 10,000 10,000 10,000 10,000 10,000 10,000
83 2012A Bonds(PW Building) - - 111,006 505,373 506,633 507,022 606,664 505,459
84 20xxA Bonds(Ice Arena) - - - - - - - -
85 2022A Bonds(Fire Station) -
86 2006C Bonds(Library Debt) 231,525 234,301 232,025 231.990 231,765 236,255 236,460 234,475
94 Total Building Reserve Uses of Funds - 1,260,438 8,229,341 1,375,699 1,286,920 1,211,398 1,057,439 1,012,124 1,297,104
95
96 Ending Cash Balance 6,697,200 6,056,199 4,606,343 4,238,518 4,390,698 4,721,073 5,126,976 5,258,047
97
98 Cash reserve balance for future repairslmaint. 100,000) (150,000) (200,000) (250,000) (300,000) (350,000) (400,000 450,000
99
100 Total cash available 5,597,200 4,906,199 4,406,343 3,988,518 4,090,696 4,371,073 4,726,976 4,808,047
101
HLibrary Outstanding Balance call date 02101116 3,773,203 3,641,333 3,309,308 3,077,318 2,846,663 2,809 298 2,373,838 2,139,383
pay off bonds
City of Elk River
Park Improvement Fund
Oak Knoll Football field lights
2014F 2015F 2016F 2017F 2018F
Revenues
Other Revenue
Interest Income 462 296 170 235 4,052
Grants/Donations
Misc.(Hillside/Woodlands) 10,000 10,000 10,000 10,000 10,000
Transfer In-Liquor Fund 260,000 260,000 260,000 260,000 260,000
Donations 73,000 Donation from Football/Lacrosse
Total Revenue 270,462 270,296 270,170 270,235 274,052 73,000 $43,000 in 2014
Expenditures
Playground Safety 6,000 3 5,000 5,000 5,000 5,000
Trail Repairs&Connections 113,000 1 100,000 100,000 100,000 100,000
Orono Park Improvements 51,000 4 20,000
Orono Park Health Beat Fitness 11,500
Bailey Point Kiosk 15,000
Dog Park irrigation and trees 6,000 5
Park Property Lines 3,000 3,000 3,000 3,000
Parks Master Plan Update** 50,000 2
Parks Master Plan needs assessment 15,000 2
Upgrade irrigation to smart systems 5,000 5,000 5,000 5,000
YAC Complex welUnigation 35,000 6
Deerfield playground replacement 70,000
Deerfeild improvments 25,000
Athletic field improvements 30,000 30,000 30,000 30,000
Baldwin Park improvements 15,000
Windsor park improvements 20,000
Lions Park Playground replacement 80,000
Oak knoll field upgrades 135,000
Total Expenditures 276,000 274,500 268,000 143.000 143.000 135,000
Revenues less Expenditures (5,538) (4,204) 2,170 127,235 131.052 (62,000)
Cash Balance-Beginning 15,406 9,868 - - 5,664 7,834 135.069
54.1%Donation as%of cost
Cash Balance-Ending 9,868 5,664 7,834 135,069 266,121
=anticipated to do an RFP for both Comp Plan and Park Plan,costs may be reduced.
Yearly Transfer is made in June after City audit from Liquor Profits
The following projects are anticipate to be on future Park Improvement Plan updates
YAC Ball Field lights
Skate Park replacement
Pavement for YAC Complex
Pavement for YAC Football
YAC Athletic Field w/lighls
YAC Fields 5 and b lights
Orono Parking Lot lights
Orono Parking Lot reconstruction
Orono Complex upgrades
Interpretive/Ski chalet
Hockey Rink Trott Brook
Hockey Rink at Lions Park
Upgrad lighting at the Orono Complex
Softball Field at Trott Brook Park
Splash Pad at Orono Park
Flush toilets and shelter Orono Park
Major trail repair near Trott Brook
Major trail repair Woodland Trails
Volleyball courts w/lights Orono Park
Additional ball fields wllights
Additional Soccer/Lacrose fields w/lights
Trail connections
Park kiosks and signage
Hillside Park improvements
City of Memorandum
Elk
River
To: Tim Simon, Finance Director
From: Michael Hecker, Parks and Recreation Director
Date: October 30, 2013
Subject: Oak Knoll Athletic Field Lighting
The project to install athletic field lighting at Oak Knoll has been a discussion item for staff
and the Parks and Recreation Commission for the past six months. Youth Football
Association past President Todd Raymakers and Youth Lacrosse Association member Jeff
Hendricks, both of Elk River,presented at the June and August Commission meetings their
organizations desire to donate financially to build a 100-yard football field. They both have
stressed the need in Elk River for an additional field with lights by offering to donate
$73,000 to this purpose. The city currently has one field with lights at YAC (Youth Athletic
Complex).
The initial request was to construct a second field at YAC but staff found that the estimated
costs for a second field with lights and adequate parking was well over$500,000. At the
August 14 Parks and Recreation Commission meeting, staff was directed to research the
feasibility of re-purposing one of the soccer fields at Oak Knoll to be used for football and
lacrosse. Staff discussed the proposal with the Three Rivers Soccer Association(IRSA) and
they are in support of the project with some field scheduling changes.
Staff continues to work closely with representatives from both football and lacrosse to
estimate the costs on installing athletic field lighting. This project includes electrical and
irrigation upgrades needed to develop an improved lighted field at Oak Knoll.
If this project moves forward, City Council will need to formally approve the donation.
Staff is also working with the City Attorney on a formal agreement regarding the
contributions and field time commitments in accordance with the new field scheduling
policy.
P0ME0E0 9T
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Knoll lights memo.docx
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