2. September 23, 2020 MinutesCity of Scandia
Capital Improvement Committee
September 23, 2020
A Capital Improvements Committee meeting was held on the above date with modifications.
Due to the health advisory issued by the State regarding the COVID-19 outbreak, to avoid public
gatherings and limit social contact, the meeting was conducted over an electronic platform. All
committee members and staff who joined the meeting remotely could hear each other and
contribute to discussions. City Administrator Ken Cammilleri was the presenter and displayed
the meeting materials for participants to view on their remote screens.
City Administrator Cammilleri called the meeting to order at 5:30 p.m. The following were
participants to the meeting: Committee members Terry Gorham, Dominic Mitchell, Mark
Lofstrom, and Council member Steve Kronmiller. Staff participating: City Administrator Ken
Cammilleri, City Fire Chief Mike Hinz, and Public Works Director Adam Hawkinson.
No motion on the approval of August 23, 2020 minutes.
CAPITAL IMPROVEMENT FUND 401
Community Center Upgrade was pushed out to 2024 as it needs to be timed with the Heritage
Alliance’s Art Center project. Instead a$15,000 was added for 2021 to replace carpet, paint and ADA
door compliance in the city offices and board room. The second fire station was also moved to 2022
at the suggestion of a Councilmember. A recent motion by the Council also added $47,000 to the
Capital Improvement Fund to address the Layton Ave. N. Bliss Addition stormwater issues in 2021.
The Broadband Expansion item was increased to $250,000 to improve the grant application and
shorten the timeline of expansion with a cost sharing method between the City, Midco and
residents. Also $15,000 will need to be added for a long-range financial plan approved by the
Council at their last meeting.
Public Works Director Hawkinson reviewed the changes to the Equipment Replacement Fund:
increase the Kubota tractor to $45,000 in 2024; move the replacement of 1999 Tractor to same year
as Tiger Ditch & Broom Mowers to 2021 from the proposed 2022 as the trade-in value would be
better; increase the One Ton F550 Work Truck to $56,000 in 2023 to more accurately reflect
replacement cost; and increase the 2011 Mack Dump Truck replacement to $225,000 and move to
2023.
The Committee reviewed how these expenditures will cause a declining cash balance. Staff is
recommending that a $100,000 tax levy be added to the budget to start building up a reserve. The
long-range financial plan approved by the Council will provide other ways for financing the city’s
capital needs.
There is currently no concern with the Park Improvement Fund balance. Although Gorham pointed
out it seemed to have a significant growing balance, other Committee members pointed out the
funding is based on potential grants and nothing is concrete beyond 2021.
September 23, 2020
Capital Improvement Committee
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The Equipment Replacement Fund is proposed a $100,000 tax levy to sustain a small reserve. Future
equipment needs could be met with bonding.
The Road Improvement Fund has the largest tax levy but is projected to be depleted by 2024 where
additional bonding will have to be considered. Cammilleri pointed out that by incorporating the
second fire station in a bond the cost can be spread out over a longer period of time and allow the
city to continue to fund additional capital projects like broadband expansion. Chief Hinz added that a
bond will spread the burden between current and new residents over time. The second fire station
expense was moved back to 2021. A financial management plan will give the city more tools to
consider.
PROJECTS IN 408 LOCAL ROAD IMPROVEMENT FUND
The Committee reviewed the 2020 PASER ratings and Future Street Reconstruction maps.
Engineer Goodman was not in attendance, but Public Works Director Hawkinson explained how
these are developed and reviewed each year. Engineer estimates are then used to project
future costs. Crack-filling and Seal-coating is not reflected in the Street Reconstruction map but
are planned. Cammilleri said the city needs to build into the budget road preservation expenses
and address an assessment policy which may be topics for this committee’s discussion.
Mitchel requested a separate meeting for roads including a special assessment options to have
some options to bring to the Council which was agreed to by the Committee.
Next meeting will be in early October.
The meeting adjourned at 6:40 p.m.
Respectfully submitted,
Colleen Firkus, Treasurer