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CR 95-175 1996-2000 Capital Improvement Plan e e e \ , September 28, 1995 (, ~ .y <0 o P K \ '" Council Report 95-175 1996-2000 CAPITAL IMPROVEMENT PLAN Proposed Action Staff recommends adoption of the following motion: Move to adopt the 1996-2000 Capital Improvement Plan. Overview The Capital Improvement Plan (CIP) is a five year planning document intended to as- sist the city in planning major improvements to the community in the areas of utilities, transportation, parks, buildings, and other community facilities. Each year the city and community review the CIP to determine specifically, improvements for the coming year and to plan prospectively, into the future. Adoption of this motion will result in the plan being approved and will enable staff to begin preparation for detailed discussions on the improvements detailed in the plan. Adoption of the plan does not automatically en- sure that any of the projects proposed in the plan will actually occur, Further action will be needed on each of the projects to ensure their completion. Primary Issues to Consider o Response to questions raised by Council and community o Impact on funding sources o Options SupportinQ Information o Staff analysis of issues o 1996-2000 Capital Improvement Plan - draft version, 9/28/95 ._ ;("OC~?-. :.o:.c::'c:~ --=::~'~~~'_.".>~ .. ~~ '-~-2':":';;::".-----==--- Steven C. Mielke City Manager . e . . e . Page 2 Staff Analysis of Issues for the CIP Report o Response to questions raised by City Council and community members A variety of questions were raised regarding issues within the Capital Improve- ments Plan. The following is intended to respond to each of those issues. 1. Joint Traininq Facilitv. MF-4 The joint training facility has been removed from the Capital Improve- ments Plan. The lead agency on this proposed facility is the City of Eden Prairie. They have indicated that the current plan is to attempt to build the fac[[[ty utilizing grant funds from various other sources and would not currently require any capital funding from member cities. If the facility is constructed it would be incumbent upon each municipality to share in the annual operating expenses, which are unknown at this time. 2. Parkinq Ramp A potential parking ramp addition has been added to the CIP in response to a concern that additional parking may be needed to accommodate both the theater/restaurant project on Suburban Chevrolet, and the arts facility currently planned for the north side of Suburban Chevrolet property. This item would require extensive study prior to a decision to construct, howev- er, the estimate to construct has been prepared in an effort to put this item in the Capital Improvements Plan. It also could represent funds nec- essary to acquire parking in other areas of the downtown in order to ac- commodate the same parking need. 3. Arts Facility The arts facility currently under discussion by the City Council has been added to the CIP in answer to a Council request. While shown as a 1996 project, this item would require additional approvals prior to construction. The amount shown in the CIP reflects a past resolution of the City as to funds the Council would commit to the construction of the structure. 4. 800 Mhz Radio System This item is not in the Capital Improvement Plan but is instead, in the Equipment Replacement Plan. Since the item was raised as part of the CIP, I have attached a memorandum from the Police Department that dis- cusses various options relevant to this potential expense. The item is de- picted in the Hopkins Equipment Replacement Plan. Page 3 . 5. Pavilion Acoustics This item has been in previous Capital Improvement Plans and has been omitted from this plan. Acoustics in the pavilion are insufficient to meet musical performance standards, and thus, the anticipation of music and sound events being more frequently held in the pavilion has never been realized. The addition of acoustic treatments to the pavilion would help address this issue. The addition of a potential arts facility and the lack of an overwhelming need to construct has caused this item to be pulled from the plan. 6, Moline Water Treatment Site It was suggested at the Council Work Session that we consider moving the old Moline treatment plant from the property near the water tower on County Road 3 to make way for economic development purposes. Staff has studied this site from the perspective of the City's need for the site, as well as the ability to develop the property. Our recommendation would be to leave the Moline property and building in place and to proceed with redevelopment of the structure to improve . the aesthetics and the usability of the building. While it is no longer used for water treatment purposes, it still serves as a useful building for the Public Works Department, and moving it from its current location does not seem practical. In analyzing the surrounding property, it appears possible to place an additional building near the water treatment facility and utilize a shared parking arrangement, which may allow for economic develop- ment/redevelopment of that segment of County Road 3. 7. Sidewalk Repair The City has had, for four years, a sidewalk repair plan, The City has as- sumed the responsibility for maintenance of sidewalks and at the end of 1995, will have completed the first sweep through the community to im- prove sidewalks. Knowing that this will now become an ongoing mainte- nance item for the City, it seems appropriate to remove it from the Capital Improvement Plan and put it into the operating budget. Therefore, the item has been removed from the Capital Improvement Plan and will be maintained in the general fund. 8. Maetzold Field Plav Equipment . Staff indicated a potential desire to add additional play equipment to the Maetzold Field Park. After further review we have determined that the . e e Page 4 current plan for play equipment should be sufficient to meet the park's needs. Therefore, no additional equipment has been added to this year's Capital Improvement Plan for Maetzold Field. 9. Wheelchair Lift - Firehall Staff has decided to recommend the fire wheelchair lift be moved back one year in the plan and that it be reanalyzed next year as well. The lift is intended to allow handicapped access to the upper level of the fire hall, which currently is restricted to non-public uses. A handicapped access ramp would allow for greater utilization of the meeting room, but when analyzed against other competing needs, staff currently recommends this construction not occur in 1996. 10. ST-12 A member of the Planning Commission recommended that the City Coun- cil delete ST-12. ST-12 is an extension of Second Avenue South from Third Street South to Fifth Street South. This roadway, if constructed, would act as a collector road through the current Hennepin County public works property. The City is currently exploring redevelopment opportuni- ties on this site. Depending on the development that is constructed, a roadway through this property may be necessary. Staff is recommending that this project remain in the plan. o Impact on Funding Sources The Capital Improvement Plan has 15 potential funding sources for Capital Proj- ects. Each funding source is independent of the other and some projects use several funding sources. The Finance Department has analyzed the 1996-2000 CIP and has included a summary of the Plan's impact on each of the various funding sources. 1. General Fund The general fund, if all projects were constructed at their current level, would require either additional resources or a reduction in the fund bal- ance reserved for cash flow purposes. The general fund assumptions in- clude a conservative assumption that current year budgets will balance between expenditures and revenues, when in fact, the likelihood is that revenues will outpace expenditures, leaving a better revenue projection in the general fund than the current plan shows. Additionally, grant funds . . . Page 5 may come available for some projects which would reduce the effort nec- essary within the general fund to support the projects. 2. Municipal State Aid Funds Many of the transportation related items would be paid for using municipal state aid funds. Our projections show that current funding levels of the municipal state aid account are adequate to pay for the transportation projects planned for. 3. Utilitv Funds The City maintains four utility funds, each responsible for payment of ex- penses for water, sanitary sewer, refuse, and storm sewer projects. The Plan, if adopted and constructed, may require a slight increase in water rates to maintain a positive cash balance. All the other utilities should be sufficient under current projections. These projections also take into ac- count operational expense projections. o Options The City Council is being asked to adopt the plan in its current form. The Coun- cil has the option to amend the plan, or to refer it back to staff for additional work. This plan is not mandatory, and therefore is done out of a desire to prac- tice good management techniques. There is no deadline for adoption, therefore, if additional work is necessary, it can do so without repercussions. ----- .- To: From: Chief Johnson Heather Alex G-// Thursday, August 10, 1995 800 Mhz Trunked Radio Update Date: Subject: Here is an update on the 800 Mhz Regional Trunked Radio System issue as it relates to Hopkins' Equipment Replacement Plan. The Legislature passed a bill to allow the system to be designed. A consultant has been retained to develop a system design and RFP's scheduled to be published in June or July of 1996. The project should be awarded some time in late 1997 with construction starting around the same time. . Hennepin County has proposed a joint Hennepin County - City of Minneapolis subsystem of this backbone. A draft report to the Hennepin County Board of Commissioners has been reviewed and a final copy is being worked on right now. It is expected that the Board will look favorably on this plan and it will pass. A new report with an ammended project timeline and capital budget analysis. will be coming out soon. If all !:Joes as planned, Hennepin County plans to move it's ambulance service and 911 dispatch operations for dependent cities to the new 800 Mhz. system sometime in 1998. Independents (like Hopkins) wou Id have the opportunity to ioin sometime after that. 1. How does the near certainty of Hennepin County chanqinq technoloQv around 1998 affect the City of Hopkins as it relates to the Equipment Replacement Plan? Hopkins has a budgeted amount of $293,000.00 for replacement of the police radio system in 2001. We have several options to consider for replacement of our system: . 1. Do nothinq. Our equipment is in good working condition and should operate for many more years. This option would permit us to keep our radio frequencies, fixed site equipment, consoles, etc. for an indefinite period of time. Somewhere in the next 10 or so years some technological mandates will require new licensees to purchase equipment that complies with new spectrum refarming rules promulgated by the FCC. . . . Current licensees will be grandfathered in. However, we lease our mobile and portable equipment from Hennepin County. Since they will be moving to the digital technology we would lose the lease option on conventional equipment. Since this equipment is amoritzed, we would probably be able to buyout our lease and own the equipment. We could then operate indefinately until Interference problems with refarmed frequencies (made available by other agencies going digital and giving up their conventional UHFNHF frequencies for refarming) force us to purchase all new equipment. When this happens, (sometime after 1998) our budget amount would be inadequate. 2. Move to the new BOO Mhz diQital technoloQV under the Hennepin County Plan which makes their svstem available to independent users free of charQe. Sometime after 1998 we would be able to "hook up" to the trunked system via microwave link and operate as an independent talk group on the new County system. Microwave link up charges would cost about $160,000 which would be on a lease basis spread out over a period of years. Console upgrades would cost about $90,000. This falls within our current budget amount for $290,000.00 in 2001. Leased equipment (mobiles and portables) would be available through the county (as we do now) which would be an operating budget item. Lease costs would increase by about double our current amount (possibly less as equipment costs decline). There is an option in the County Plan for user fees, however this is not being recommended. SUMMARY: Both options provide for continuing with our current equipment until around 1999 - 2001. Our budget amount for 2001 seems to be adequate to migrate to the County system at that time if we choose option #2.