Loading...
07 11 19 CIP minutesCity of Scandia Capital Improvement Committee July 11, 2019 The Capital Improvements Committee met at 5:35 p.m. at the Scandia Board Room on this date. Committee members present were: Terry Gorham, Perry Rynders, Dominic Mitchell, Mark Lofstrom, Adam Hawkinson, Mike Hinz, Stephen Kronmiller, and Colleen Firkus. Firkus opened the meeting. There was no agenda to approve. The minutes from the June 13, 2019 meeting were approved as amended with a motion by Lofstrom and seconded by Rynders. Review of draft Capital Improvement Program 2020-2024 CAPITAL IMPROVEMENT FUND The Committee reviewed the draft report generated by former city administrator Neil Soltis under contract to assist the city with the budget process. Kronmiller noted the addition of $100,000 in 2020 and $600,000 in 2021 to the Capital Improvement Fund at the request of the EDA. The EDA and the Community Center Renovation Committee will be requesting money from existing funds in 2020 for design plans for an upgrade to the Community Center building. The amount in 2021 is a placeholder for construction costs with the source of those funds yet to be determined, but with the plan assuming it is funded by debt. The Committee determined there is not enough information to add any figures for Broadband until after a meeting with CTC. This is to be discussed at the August 8 meeting. EQUIPMENT REPLACEMENT FUND The Committee agreed to request a $100,000 transfer from the Capital Improvement Fund to address the projected 2021 shortfall of $74,221 in the Equipment Replacement Fund. PARK IMPROVEMENTFUND Rynders pointed out the note on p. 10 regarding a negative fund balance at 12/13/19 should really be a positive fund balance. The Committee agreed that the following projects would be 50% funded by donations/grants: Playgrounds, Picnic shelter, Amphitheater, and Ballfield Fencing. It was noted that most of the projects listed are just maintaining and improving the existing parks and that it was not necessary to prioritize as there are so few and would proceed if funding is available. Hawkinson did point out the Zamboni replacement was a priority as it is from 1965. LOCAL ROAD IMPROVEMENT FUND Soltis noted in his memo that adopting the engineer’s recommendation of a Combination Full Pavement & Mill Overlay plan is a change in the approach from the previous recommendation where the City chose to do more reclamation work versus complete restoration. The Committee reiterated their position it would be better to have an average annual road project of $650,000 funded through the levy than large projects bonded, and for lower rated roads to have a complete restoration for longer lasting roads. The Committee thought there were more Mill Overlay streets in the engineer’s original schedule. Current projections with the additional $55,000 added to the levy annually have all the projects listed repaved in five years with a fund balance of $511,153 at the end of 2024. 201 SEWER SYSTEM The Committee did not understand the 57% increase in 2020 revenue as they did not have a copy of the budget. The Committee agreed to the annual 5% increase in user fees noting an annual increase was suggested by the Wastewater Committee a couple years ago to start building up reserves required for system replacements. The budget numbers will be reviewed by Hawkinson and Firkus. The Committee was concerned with cash flowing the Nitrate Treatment project in 2022. Kronmiller suggested using Capital Improvement money to help fund this deficit. The Committee was split as to whether it was appropriate or not to use tax levy money in this manner for a small user group. Hawkinson suggested a fix could be done in phases and not all in one year. EPA personnel have not been returning his calls regarding a new test well. It was suggested the problem was there from the beginning with the placement of the noncompliant test well. UPTOWN SEWER The Committee agreed with Hawkinson’s recommendation for an annual 5% rate increase. The next meeting will be August 8, at 5:30 p.m. to discuss broadband implementation. The meeting adjourned at 7:15. Respectfully submitted, Colleen Firkus, Treasurer