09.d4a Staff Report - Tennis Court Project - Added Staff Report
Date of Meeting: July 16, 2024
For: Honorable Mayor and Council
From: Kyle Morell, City Administrator
Subject: Tennis Court Reconstruction Project
Background:
The City Engineer has presented the bid results of the Tennis Court Reconstruction Project. For a
reminder, the Base Bid is the full reconstruction of the existing tennis courts. Alternative 1 is the
addition of a tennis court on the east side of the existing courts, and Alternative 2 is the full
reconstruction of the Barton Johnson tennis court.
There are four options for Council to consider, which I have laid out below.
1) Award the Base Bid in the amount of $299,130.70
2) Award the Base Bid plus Alternate 1 in the amount of $400,486.00
3) Award the Base Bid plus Alternate 2 in the amount of $445,989.50
4) Do not award a bid and delay the project
The City approved the 2024 budget with $150,000 allocated for this project. The council approved
the preparation of plans and specifications for the tennis court reconstruction in February. At that
time, the estimate for the base bid was $245,400; alternate one was $168,300, and alternate two was
$143,000.
Around this time, staff discussed using the excess fund balance to help pay for the project, similar to
how the City paid for the new hockey rink boards in 2023. Using $125,000 for the tennis court
project would still leave the City with over 55% fund balance, above the 35% to 50% mandated in
the City’s Fund Balance Policy. An additional source of funding can be found in the 401 CIP Fund,
which has sufficient fund balance to pay for its budget projects through 2031, even with a significant
reduction in the annual levy amount. Transferring $150,000 from the 401 CIP Fund to the Park
CIP Fund would not change the ability of the 401 Fund to pay for its budgeted projects through
2031. I have attached an updated 401 CIP Fund for your review.
Issue:
Should the Council award the bid for the tennis court reconstruction? Can the City afford to pay for
the project?
Request:
Public Works Director Fischer and I met to discuss the bids and what to recommend to the Council.
The original project called for reconstructing our existing courts, maintaining two tennis courts, and
striping four temporary pickleball courts. The Barton Johnson Park Council's request to aid in their
court restoration led us to contemplate adding a playing surface at the Community Center. Given
the results of the bidding, we cannot recommend that the City continue to entertain the idea of
improving the Barton Johnson court. Given the overall use of the facility and the desire to have
dedicated courts for both tennis and pickleball, staff recommends approving the base bid plus
alternate 1.
Options:
1) Award the Base Bid in the amount of $299,130.70
2) Award the Base Bid plus Alternate 1 in the amount of $400,486.00
3) Award the Base Bid plus Alternate 2 in the amount of $445,989.50
4) Do not award a bid and delay the project
Recommendation:
Option 2
Attachments:
401 CIP Fund
404 CIP Fund
Inflation Assumptions
1 Revenue (Non-property tax) 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2 Interest Earnings 0.00% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%
3 Expenses 0.00%
4 CIP Inflation Factor 0.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%
2022 2023 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
ACTUAL ACTUAL Projected
REVENUE
5 Property taxes 217,336 293,791 235,000 120,000 125,000 125,000 125,000 130,000 135,200 140,608 146,232
6 Intergovernmental - - - - - - - -
7 Capital Improvement Debt Levy - - - - - - - -
8 Special assessments - - - - - - - - - - -
9 Investment Income 3,126 2,300 1,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
10 Refunds and Reimbursements
11 Park Dedication Fees
12 Rental and lease income - - - - - - - - - - -
13 Miscellaneous Revenue - - - - - - - - - -
14 Total Revenue 220,462 296,091 236,500 121,000 126,000 126,000 126,000 131,000 136,200 141,608 147,232
EXPENSES
15 Total Current - - - - - - - - - - -
16 Payables internet - - - - - - - - - - -
17 Debt service - - - - - - - - - - -
18 Total Capital Projects 296,733 198,059 196,525 183,041 634,489 - 135,000 112,072 208,135 109,251 618,083
19 Total Expenses 296,733 198,059 196,525 183,041 634,489 - 135,000 112,072 208,135 109,251 618,083
20 Revenue Over / (Under) Expenses (76,271) 98,032 39,975 (62,041) (508,489) 126,000 (9,000) 18,928 (71,935) 32,357 (470,851)
OTHER FINANCING SOURCES / (USES)
21 Bond Proceeds
22 Transfers In - 8,000 - - - - - - - - -
23 Transfers Out to Sewer Fund (2,640)
24 Transfers Out- (150,000)
25 Total Other Sources / (Uses) - 5,360 (150,000) - - - - - - - -
26 accounts payable
27 Prior Period Adjustments
28 Ending Fund Balance 564,735 782,892 672,867 610,826 102,337 228,337 219,337 238,265 166,331 198,688 (124,931)
CITY OF SCANDIA CITY OF SCANDIA
Capital Improvement Plan Capital Improvement Plan
Capital Improvement Fund 401 Capital Improvement Fund 401
CASH FLOW ANALYSIS
2022 2023 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Capital Project Name Year ACTUAL ACTUAL PROJECTED
29 12,000
30 Broadband Development Grants to MIDCO 2022 236,700
31 Development Code Update 2022 5,771
32 Community Center Improvements-Doors & security 2022 16,609
33 Council Chambers remodel 2022 5,103 7,476
34 Gateway Trail 2025 15,000 160,000
35 Broadband Development Grants to MIDCO 2023 12,750 119,500 92,000 300,000
36 County Ped & Bicycle Accomodations 2023 50,000
37 Wall Panel Joint Replacement Fire Hall-leaking 2023 16,250
38 Council Chambers remodel 2023 12,309
39 Security Improvements CCTV for Park 2024 14,000
40 Bliss Additions Stormwater plan 2023 122,525 135,000
41 new Exhaust removal system for truck bays 2024 58,399
42 new Warning Sirens 2025 31,633
43 Arts & Heritage Center Amphitheater 2027
44 Arts & Heritage Center Sidewalk and Walkways 2027
45 CC AC Condenser Replacement 2025
46 Lobbying 2025
47 Fire/PW Potable Well Pump (2000) Replacement 2026 11,699
48 2010 Fire Radios Replace 3 unspupported radios 2030 17,548 24,016
49 2010 Homatro Cutter Twin Line R-1(Jaws of Life)2030 40,945 56,036
50 2015 Lucas CPR Device-replacement 2030 17,548 24,016
51 Cold Storage Building 2030 112,072
52 Additional Comm Cent Elec Locks 2030 18,000 24,016
53 Large Hall and Heritage Room Carpeting 2030 80,052
54 2000 Station Bay floor epoxy coating-maintenance 2031 21,900 31,171
55 2010 Washer/Extractor-replacement 2031 9,125 12,988
56 2017 Thermal Imaging Cameras (1of3) find hot spots 2031 9,733 13,853
57 Zoll Monitor/Defib 2031 51,239
58 Second Fire Station 2032 337,136
59 Community Center Design & Planning 2032 280,947
60 Air Containment Unit 2033
61
Community Center Improvements-Front Office + Equip
Room 74,000
62 CIP placeholder - SERVER REPLACEMENT 2035 7,800
Total Capital Projects 296,733 7,476 198,059 196,525 183,041 634,489 - 135,000 112,072 208,135 109,251 618,083
PROJECTED NEW DEBT TERMS Updated KHM As of Date:6/27/2023
1 Par Amount (Line 14) - - - - - - - - - - -
2 Number of Years 15 15 15 15 15 15 15 15 15 15 15
3 Interest Rate 0 0 0 0 0 0 0 0 0 0 0
4 New Debt Levy - - - - - - - - - - - Capital Project OutlayCapital Project OutlayProject
CITY OF SCANDIA
Financial Management Plan
Park Capital Improvement Fund
Inflation Assumptions
4 CIP Inflation Factor 4.00% 0.00% 2.00% 4.00% 4.00% 4.00%4.00% 4.00% 4.00% 4.00% 4.00%
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
ACTUAL Proposed
REVENUE
5 Property taxes 20,000 20,000 60,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
6 Intergovernmental 10,125 112,500
7 Charges for services
8 Investment Income 620 66 66 66 66 66 66 66 66 66 66
9 Sale of capital assets
10 Park Dedication Fees 24,000 24,000 - - - - - - - -
11 Rental and lease income - - - - - - - - - - -
Transfer from General Fund 150,000 125,000
12 Miscellaneous Revenue 7,949 8,068
13 Total Revenue 38,694 314,634 209,066 50,066 50,066 50,066 50,066 50,066 50,066 50,066 50,066
EXPENSES
14 Total Current
15 Debt service
16 Total Capital Projects 48,113 333,739 350,000 110,000 25,000 64,042 - -
17 Total Expenses 48,113 333,739 350,000 110,000 25,000 64,042 - - - - -
18 Revenue Over / (Under) Expenses (9,419) (19,105) (140,934) (59,934) 25,066 (13,976) 50,066 50,066 50,066 50,066 50,066
OTHER FINANCING SOURCES / (USES)
19 Bond Proceeds
20 Transfers In 150,000
21 Transfers Out 8,000
22 Transfers Out-
22 Total Other Sources / (Uses)- 8,000 150,000 - - - - - - - -
23 Prior Period Adjustments
24 Ending Fund Balance 138,798 63,927 72,993 13,058 38,124 24,147 74,213 124,278 174,344 224,409 274,475
CITY OF SCANDIA
Financial Management Plan
Park Capital Improvement Fund 404
CASH FLOW ANALYSIS
2021 2016 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Capital Project Name Year Costs ACTUAL Proposed
25
25 Park Planning 2022 15000 10,500 4,500
26
Community Center Park-concrete, grill, table,
benches 2022 112500 33,488
27
Playground Equipment - Community Center
Park 2022 122500 180,319
28 Lilleskogen Park Picnic Shelter 2024 43700 3,000
29 Gateway Trail Improvements @ Annex 2024 0 25,000
30 Hay Lake Park - sign 2023 8653 1,500
31 Park signage at Orwell Park (Liten)2023 8653 800
32 Replace rink boards 2024 134984 146,620
33
Lilleskogen Praire/Wetland Restoration
Project 2025 12878 1,125
34 Nature park trails 2025 42700
35 Playground Equipment - Erickson ballfield 2028 66682 80,000
36 Tennis Court/Pickle Ball - repaint 2024 60533 350,000 110,000
37 Expanded Pleasure Rink 2027 12653 16,010
38 Hay Lake Park Shelter water & doors 2027 101226 128,083
39 New Ballfield to Replace South Ball Field 2027 44286 56,036
40 Settlers MonutPossible Reloc/Imp 2027 37960 48,032
41 CIP Place Holder 2031 50000
42 Total Capital Projects 874,908 - 48,113 333,739 350,000 110,000 25,000 64,042 208,083 56,036 - - -
PROJECTED NEW DEBT TERMS
43 Par Amount (Line 19) - - - - - - - - - - - -
44 Number of Years 10 10 10 10 10 10 10 10 10 10 10 10
45 Interest Rate 2.00% 2.50% 3.00% 3.00% 3.00% 3.00%3.00% 3.00% 3.00% 3.00% 3.00%
46 New Debt Levy 0 0 0 0 0 0 0 0 0 0 0 0CAPITAL OUTLAYProject
CAPITAL OUTLAY