06 13 19 CIP minutesCity of Scandia
Capital Improvement Committee
June 13, 2019
The Capital Improvements Committee met at 5:37 p.m. at the Scandia Board Room on this date.
Committee members present were: Terry Gorham, Perry Rynders, Adam Hawkinson and Mike
Hinz. Stephen Kronmiller showed up at 6:00 p.m.
Hawkinson opened the meeting since no chair had been appointed. The agenda was approved with
a motion by Rynders and a second by Gorham. The minutes from the May 15, 2019 meeting were
approved with a motion by Rynders and seconded by Hinz.
Engineer Report
The Committee discussed the engineer's report that provided 10, 15 and 20 -year project cost
estimates for road rated 5 to 6 on the Paser Road Rating. Starting in 2026 it would cost $655,000
annually to repave roads Paser rated 5 to 6 over a 20 -year time frame.
The Committee recommended that while funding sources are adequate for the next five years under
the current projected plan, the Local Road Improvement Fund balance would be depleted by 2024.
The Council should consider increasing the levy gradually to maintain a fund balance to fund an
average annual road project of $650,000. Rynder, seconded by Kronmiller, moved to recommend
the levy be increased $55,000 per year for the next five years and adopt the 5 -year spending plan
(Combination Full Pavement & Mill Overlay plan) as proposed by the engineer. No vote was
taken, but there was a consensus between Committee members. The Committee noted the
recommendation of a 5% annual increase from two years ago was not adopted by the City Council.
Public Works 201 Sewer Update
Hawkinson reported city engineers are looking at a potential sand filter problem that could be
contributing to high nitrates in the test well, and how the sand filter may have been impacted by
recent flooding., put in 1986, Kronmiller replace sand, nitrate problem been there since the
beginning, became an issue when the state dropped their standard and no longer compliant. Other
wells compliant. MPCA contact on vacation to replace test well. Cost to dig new well. Kronmiller
believes the city has a responsibility to contribute expenses for fixing system.
PRC Capital Improvement List
The Committee reviewed the PRC projects added into the existing CIP plan projects. It was noted the
picnic shelter was listed in 2019 as well as 2022. Possible grant or donations need to be considered
in the revenue side of the plan for playground equipment and the picnic shelter at Lilleskogen.
Recommend donations and grants be added for $15,000 each year. The Committee would like to see
the City invest more in parks and recreational areas and agreed to recommend to the Council to
increase Park Capital Improvement funding by $30,000 per year. Rynder, seconded by Gorham,
moved to recommend to the City Council to increase Park Capital Improvement funding by
$55,000 per year, with $25,000 coming from a combination of grants and donations. No vote was
taken, but there was a consensus between Committee members. It was also noted that the City
would benefit from a grant writer.
Capital Improvement Expenditures by Department for 2020 Budget
Hinz reported that the Fire Dept./Public Works parking lot is 20 years old and receives heavy
weighted traffic. Hawkinson agreed it needs to be reclaimed. The Emergency Generator is
purchased if a FEMA grant is received, otherwise moved to the next year. HVAC replacement is
necessary. The second fire station item would be a place to keep equipment to serve the most
dense areas of the city and bring down ISO insurance ratings for any residences within 5 miles. A
substation would also increase the area of available firefighters. The old school site on Manning
was considered as a site. Fire Dept. operational costs would increase by utilities, but not more
personnel. Well and septic would have to be installed. Possible funding would be to create a TIF
district. Another source would be to sell the old fire building now called the Annex. A substation
would need room for an engine and a tender as well as gear for firefighters and be about a 40 x
80' pole building. The Committee recommended moving the substation to 2021 to allow more
time for discussion by the Council, and to consider selling the Annex to help fund a fire
substation.
The next meeting is scheduled for July 11, 2019 at 5:30. in the Community Building. Topics of
discussion will be rating Capital Improvement projects by Department, and discuss how to pay for
Bliss upgrades and A-E expansion as it is at capacity.
Meeting adjourned at 7:50 with a motion by Gorham, seconded by Rynders.
Respectfully submitted,
Colleen Firkus, Treasurer