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6.B. Capital Improvement Projects
VotA General Business 6. B. SF-1AKOPE TO: Mayor and City Council Mark McNeill,City Administrator FROM: Lori Hensen,Deputy City Clerk DATE: 10/23/2013 SUBJECT: Capital Improvement Projects(F) Action Sought Attachments: cip 2014 Budget Discussion October 23rd,2013 Worksession Capital Project Plans and Funding: In July 2013, Engineering staff presented the draft CIP plan for Council review and discussion. This plan included work estimates that impacted the City infrastructure, including streets,sidewalks,trails;the coordination with the City utilities(sewer and storm water);and Shakopee Public Utilities(SPUC) projects (electric and water). i At the July work session,Council was approached with a request to implement changes in the existing policies for sanitary sewer improvements, specific to sewer lining projects. During this discussion it was determined that City staff would proceed with a multi-year project that could utilize sewer fund resources,and allow the City to connect individual services during project work.Staff is currently working on the development and implementation of this project work,and will keep Council appraised I as to the status of this action. I Also discussed was the initiation of a concrete alley paving program, in areas of the the older portions of Shakopee that are currently served by some 11 miles of unpaved alleys.This discussion introduced the i changes related to assessment policies for alleys as well as defining funding for this project from the storm water/storm drainage system.This project will impact the future years'Capital Plans. Staff is proceeding with future plans based on the Council discussions. I 2014 and 2015 Capital Improvement Program Plans: Since the initial review of planned projects with Council, Engineering staff has continued to work on the confirmation of the projects,anticipated costs,specific funding sources,and other issues related to the final 2014 and 2015 project work. For 2014,the most significant project is the street reconstruction project that will occur on the mapped areas of the attached improvement sheet,with a total anticipated cost of$3.93 million.This will be funded through a blend of Capital fund cash (fund transfer from the General fund),SPUC cost share, special assessments to benefitted property owners,and enterprise fund charges.This project is to upgrade street areas that are nearing 50 years old,and have been scheduled as part of the reconstruction plan for several years. I The Vierling Drive Intersection Improvements are also a large component of the project work,and will provide the pavement rehabilitation needed for safety and capacity concerns.This project will benefit from a large portion of Federal funds(committed and verified) as well as County and State Aid funds. This project again, has been in the work plans for several years,and in 2014 will fall into the project plan flow. i The Shenandoah Business Park Project will be fully assessed to the developer, but as this detail sheet indicates,the developer may be requesting assistance. Finally, in 2014,the annual overlay projects will again be impacting a significant number of streets;this year it will cover areas near Eagle Creek Blvd,and several other smaller sites.The overlay projects do not receive any funding from special assessments, based on policy change several years back,and will require funding from SPUC,State Aid,Sewer funds as well as a small portion from the CIP. In 2015,staff will be undertaking another large overlay project,(see work paper)which covers a multitude of projects and will require the majority of the funding for this work through the CIP funding. The 2015 Street Reconstruction projects will be smaller than the preceding year, and is estimated to be approximately$1.4 million.This project again deals with aging streets in the older areas of the community,and will be funded through the CIP,SPUC,assessments as well as Sewer funds. Mr. Loney has also provided an option to the initial 2014 and 2015 Street Reconstruction projects,which will be discussed on Wednesday evening, based on discussions recently held regarding the allocation of the costs and the split between the two year projects.As you recall,the City has been petitioned by the property owners regarding the condition of roads and sewer lines, and further review of these projects will continue, as well as completion of a feasibility study, currently underway. Fund Transfer from the General Fund This funding for both 2014 and 2015 will be in the form of a fund transfer from the General fund.The anticipated$750,000 transfer in 2014 and the$1M transfer in 2015 will continue to provide a consistent funding source to the CIP,which was initiated in 2013 at$500,000.Without the commitment to this i funding flow,the status and ability to complete these projects will be in jeopardy. As discussed with Council,ensuring this consistent source of funding into the CIP will allow the Engineering staff to continue to plan for the needs of the community, prioritizing the projects specific to the aging infrastructure,and providing for the needs and requests of new development and community expansion. I Future Year Capital Improvement Plans j Staff has completed the anticipated work plans for the capital project years 2016, 2017 and 2018.The projects, (see attached)are similar to the two prior years allow for projects specific to overlays, reconstruction and reclamation.The 2017 projects provide for initial funding for the alley projects that were discussed earlier this year.Another longer term project in upcoming years is the Downtown Improvement plan,currently estimated at approximately$2 million,which will provide for lighting, pavers, ramps,etc.As the project funding and timing details become more defined,those brought back to Council. The Enterprise funds(sewer and storm water)are also coordinated into this CIP,and detail the specific projects that are identified by staff for planning and construction work. 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