8-08-19 CIP MinutesCity of Scandia
Capital Improvement Committee
August 8, 2019
The Capital Improvements Committee met at 5:30 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. The agenda was approved with a motion by Rynders, seconded by
Kronmiller. The minutes from the July 11, 2019 meeting were approved with a motion by Gorham,
seconded by Rynders.
Review of draft Capital Improvement Program 2020-2024
CAPITAL IMPROVEMENT FUND
The Emergency Generator was deemed a priority and should be purchased in 2020 regardless of
grant revenue. Fire Chief Hinz stated they are on the process of their fourth attempt at a grant.
Quotes ranged from $68,000 to $72,000. The Committee said to increase the cost to $70,000.
Councilmember Kronmiller reported that the City Council decided to not move forward this year
with a grant application. Legislative action is being looked at to allow the City to create special
districts that would allow special assessments; something that is only allowed for townships. A
Midco expansion would cost the city taxpayers $5.1 million for co -axial cable for a portion of the
city. CTC proposed fiber to all homes in the city for $5.7 million cost to the city. Kronmiller said
borrowing $5 million over 10 years would put a $500,000 annual debt service on the levy which
would be a huge commitment to the community. Kronmiller indicated the Broadband committee is
still exploring options and does not have a recommendation yet. The CIP Committee recommended
holding off putting any money in the CIP fund for broadband. They support the project through debt
service pending other options as they believe there is strong community interest.
Public Works Director Hawkinson indicated the Bliss Stormwater plan is more about water quality
rather than stormwater. However, the City has a grant to address the issue so now is the time to
move forward. Hawkinson indicated the Engineer would like to greatly expand the project to
address all the issues at one time. However, the City cannot afford to do that now and needs to start
addressing the low areas where excess water can overtax the 30+ year old sewer system through
inflow & infiltration. Hinz noted that the lake is much larger than it used to be which greatly
impacted the watershed which creates multiple issues with ice on roads in the winter and
overflowing in spring during large rain events. The Committee questioned the source of the
additional $375,000 of grant money, but felt it was important to go forward with the project
regardless of grant revenue.
August 9, 2019
Capital Improvement Committee
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Fire Chief Hinz reported that he received quotes totaling $180,00 for a second fire hall storage
building ($96K for building, $36k finishing, $20K well, $20k septic, plus 5%). Hinz recommend selling
the Annex, which has a tax base of $290,000, to fund the second fire station.
The Committee recommended removing the MN Dot Entry Monuments from the CIP as they
considered it a low priority project.
Hawkinson stated a cold storage is necessary as it was inefficient to run down to the garage at the
community center to retrieve equipment to work. He indicated it would be shared with the Fire
Department. Hawkinson looked at a 60' x128' building for $175,000. Hinz looked at one 40'x100'.
Hinz mentioned that if the Community Center is redeveloped it may result in removal of the garage
in the parking lot. The Committee thought it was a low priority, but since it was in 2024, they
recommended putting $150,000 in the CIP for shared storage building for the Public Works and Fire
Department.
Kronmiller brought up the number of sirens in the city. Hinz reported that the City has three sirens
and is eight sirens short for complete coverage. Hugo and Forest Lake have complete coverage as
they got grant money for all new sirens after the huge storm that went through a few years back.
Scandia did not have a plan in place and missed that opportunity. The siren is an item that keeps
being pushed down the line until funding can be acquired.
PARK IMPROVEMENTFUND
Gorham did a quick search on grant money for playground equipment and found a lot of
opportunities were out there, but did not know if the City would be eligible; more work would have
to be done. The Committee recommended showing 50% grant funding for the Zamboni in 2020, the
Community Center playground equipment in 2021, the ballfield playground in 2023, and remove the
2023 bleacher/concession improvements as a low priority since the bleachers are being upgraded
this year. The Committee asked Hawkinson if the Zamboni could be nursed along a few more years.
Hawkinson indicated it was made in 1969 and is on its last legs, and without a Zamboni there is no
rink for Vinterfest. The Committee suggested the City purchase a used Zamboni and look for grant
money to help fund it, but purchase either way. The Committee recommended leaving the ballfield
fence in 2024 but considered a low priority.
EQUIPMENT REPLACEMENT FUND
Hawkinson indicated the Tiger ditch rear mower and boom be moved from 2021 to 2020 to be
replaced with the JD Tractor.
1999 JD Tractor estimated to be sold for $10,000 in 2020
2011 Ford F250 estimated to be sold for $7,000 in 2021
2011 Mack dump truck estimated to be sold for $40,000 in 2022
FD boat and grass rig estimated to be sold for $10,000 in 2022
2003 Tanker estimated to be sold for $25,000 in 2023
Hawkinson suggested it might be possible to sell the old Zamboni as a retro item, or even for parts.
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Capital Improvement Committee
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Hawkinson also asked for the 2009 JD 1445 tractor description be updated to 2017 Kubota 3990,
estimated to be sold for $5,000 in 2024.
Hawkinson made a case for a new loader as a high priority. The latest storm showed the City's
inadequacy for responding to a big event. The County provided assistance, but only for two days.
The bucket on the JD Tractor is being used as a loader for salt in the winter and there is little
clearance into the salt storage shed with the mower on the side. It is a big job to remove the mower
and it used to assist in snow removal in the winter by clearing brush and trees. High winds cause a
lot of trees to come down throughout the year and the JD is not made for loading and is not as safe
as a loader. The attachments on a loader can also be used on the skid steer. The tractor price is
reduced by $9,000 by not purchasing the loaded on the tractor. A new loader would also allow two
teams to go out on tree removal as the skid steer is inadequate to move larger trees. The loader can
be also used for snow removal. Hawkinson stated it makes sense to have a piece of equipment to be
used appropriately for projects. He believes it would fit in the shop if equipment were rearranged.
The Committee recommended the purchased in 2020.
201 SEWER SYSTEM
Hawkinson reported that he has been unable to get a response from the MPCA since May and that
the City will have to take that out as an option for permit renewal. The Committee's only
recommendation for resolving cash flow problems was incorporate pump replacement in with
capital projects such as the Bliss Stormwater and the Bliss Nitrate Treatment. If there is no money
for pump replacements, then money will have to be borrowed.
The meeting adjourned at 7:05 with a motion by Mitchell, seconded by Gorham.
Respectfully submitted,
Colleen Firkus, Treasurer