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2. CIP Minutes 5-15-19City of Scandia Capital Improvement Committee May 15, 2019 The Capital Improvements Committee met at 5:30 p.m. at the Scandia Board Room on this date. Committee members present were: Steve Kronmiller, Terry Gorham, Dominic Mitchell, Mark Lofstrom, Perry Rynders, Adam Hawkinson, Mike Hinz, Ryan Goodman and Colleen Firkus. Mayor Maefsky was also present. Firkus opened the meeting since no chair had been appointed. The agenda was approved with a motion by Hinz and a second by Rynders. The minutes from the April 11, 2019 meeting were approved with a motion by Rynders and seconded by Kronmiller. The work plan was briefly reviewed to guide the meeting discussion. Local Road Improvement Fund Projects Engineer Goodman gave updates on the road projects planned under the City's Pavement Management Plan for years 2020 through 2025. The annually reviewed Paser Pavement Ratings of city roads was reviewed, of which Goodman noted there were no 1-2 rated roads left in the city after last year's large road project. If another project like 2018 were done in 2020, the estimated cost would be $4 million. However, Goodman presented two options to spread the work over a 5 - year period; one being Full Pavement Replacement, the second being a combination of Full Pavement and Mill & Overlay, thereby reducing the project cost. This 5 -year plan covers most of the roads rates 4 and below. Goodman suggested the City is in a good situation to do the more conservative yearly road projects rather than Full Pavement projects that will drain the fund balance. Goodman also suggested the City look at changing its current policy of owning and maintaining driveway culverts to reduce project costs. The Committee expressed concern that using a Mill & Overlay combination option would produce a bigger problem down the road with roads not lasting as long as a Full Replacement option, especially if a development goes in that affects traffic loads, and that roads rated 5 — 6 are not being addressed and will all need Full Replacement at the same time. Goodman suggested that regular maintenance including crack sealing and ditching on the 5 — 6 rated roads will maintain their drivability even if the rating drops to 3 — 4. The lowest rated 1-2 roads were paved last year and are now 30 -year roads. Roads are evaluated annually and the plan is adjusted accordingly. Using the combination option would result in average road projects of $619,000 over the five years projected. A budget projection of using the Full Replacement approach from 2021-2025 shows the Local Road Improvement Fund going to a big deficit by 2024. The Committee recommended Goodman's combo plan, but also increasing the levy annually to address the issue of deteriorating 5 - 6 rated roads rather than borrowing so much for such large road projects. The Committee also asked if Engineer Goodman could do a 10 -year projection with yearly cost estimates dealing with roads rated 5 — 6 and the impact to the levy. Lastly, the Committee recommended the Council review the cost/benefits of changing its policy on owning and maintaining driveway culverts. Mayor Maefsky & Kronmiller brought up the subject of gravel resurfacing alternatives as a long-term cost saving measure. Goodman pointed out gravel maintenance has typically come out of the Public Works contractual maintenance budget. The Committee suggested doing a pilot project of an alternative aggregate on a short section of 185th Street running east from Olinda Trail to just past intersection with Oakgreen to encompass a known soft problem area estimated to be 3,600 feet. Hawkinson believed it would be more beneficial to test an area with slopes, such as Old Marine Trail, but a longer section may be cost prohibitive. The Committee asked Kronmiller to provide Goodman with information on the material and for Goodman to find out where it could be obtained and an estimate cost for a pilot project on 185th Street. Where it would be funded from is to be determined. Bliss CommuniLV Septic System Nitrate Level Options Goodman provided a brief overview of the Bliss Community Septic system. The issues identified are: • The need to address nitrate limits in Bliss permit renewal with $10,000 budgeted in 2019 for MPCA permit renewal assistance. • The need to address inflow and infiltration issues — peak flows after major storm events are in excess of design flow with $10,000 budgeted in 2019 for I&I inspections. • Inadequate reserves for eventual replacement of system components. • Limited capacity for expansion based on current flows. One of the groundwater testing wells has historically tested high in nitrates. Starting in 2016 the MPCA has required the City to address this issue with a Nitrogen Mitigation Plan. Bolton & Menk responded June/July 2016 with a plan with two alternative Denitrification Systems with cost estimates of $525,500 and $960,000. Hawkinson has been talking with the MPCA to check the feasibility lower cost solutions such as moving the test well to another location, checking piping in the system for leakage, and testing the sand filters. There is a September 2, 2019 MPCA deadline for providing a mitigation plan as part of the 2020 permit application. It is not necessary to implement a plan until 2023, but a plan must be submitted. The results of the lower cost resolutions and the MPCA's reaction will determine if a project will need to be started. The Committee's role is to recommend to the City as to how a project would be paid for — by the 100 users or by other city capital improvement funds. A/E Lift Station and Drain field memo Goodman recapped his April 3, 2019 memo on the capacity of the Anderson/Erickson. A Scandia City ordinance states that new connections are not allowed without sufficient capacity. The calculated peak flows in 2017 and 2018 do not exceed the treatment facility's capacity, but did so in 2019, presumed to be due to excessive precipitation and snow melt. Based on the City Ordinance, sufficient capacity would not be available if peak flow over a 3 -day period averaged 90% of the 6,700 gallons per day design flow. There have been a number of instances in recent years when this value has been surpassed. With one home still being constructed and approved for connection to the system, and multiple other homes on the system which only have single occupants, meaning that greater flows from them should be expected in the future, It is not recommended that additional new residences be approved for connection to the Anderson/Erickson drainfield system at this time. PRC Capital Improvement List Gorham presented a preliminary list of possible Park projects generated at the May 6 PRC meeting. Additional expansion around the Community Center and the lower ballfield in conjunction with other community groups is of interest to the PRC. Gorham will bring back the list with priorities, cost estimates and possible funding sources. Goodman recommended a DNR Outdoor Recreation grant program, specifically for picnic shelters. The Committee will need to address a budget recommendation for 2020 at a future meeting. Alternative Capital Proiects Mayor Maefsky requested the Committee consider adding a project to update the Community Center. There are placeholders in the CIP for carpeting, wallpaper, painting and exterior work, but with no funding. Maefsky would like to bring back a scope and cost estimate of an architectural study to reconfigure the community center space to changes in design making it less generic and more uniquely Scandia. Site Visit for Buildings and Equipment There was no site visit as Committee had no questions on equipment or buildings. The next meeting is scheduled for June 13, 2019 at 5:30. in the Community Building. Topics of discussion will be updates on 10 -year road project estimates, aggregate pilot cost estimate, Bliss remediation efforts, PRC project update/budget recommendation, community center study, and funding alternatives. Ryan is not available land will send a report. Meeting adjourned at 7:45 with a motion by Mitchell, seconded by Rynders. Respectfully submitted, Colleen Firkus, Treasurer