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IV.5. Amend 2024-2028 Capital Improvement Plan for Shady Oak Beach Parking Lot Mill & Overlay Project; Bishop CITY OF HOPKINS City Council Report 2024-074 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Kelly O’Dea, Recreation Director Date: June 11, 2024 Subject: Amend 2024-2028 Capital Improvement Plan for Shady Oak Beach Parking Lot Mill & Overlay Project _____________________________________________________________________ RECOMMENDED ACTION MOTION TO approve an amendment to the 2024-2028 Capital Improvement Plan increasing the City’s cost of the Shady Oak Beach Parking Lot Mill & Overlay project by $24,750. OVERVIEW The City Council approved the 2024-2028 Capital Improvement Plan (CIP) on November 21, 2023. The approved CIP included the mill and overlay of the Shady Oak Beach parking lot with an estimated cost of $80,000. The milling will be completed by the City of Minnetonka Public Works Department and overlay done by a contractor. Five bids were received for the contracted portion of the project. The total cost of the project with the lowest bid is $155,000. The cost of the project is split 33% Hopkins and 67% Minnetonka based on our joint recreation agreement. The City’s share of the project will increase from $26,400 to $51,150. The approved CIP includes a budget for the Park Fund, which uses franchise fees and fund balance for planned maintenance projects and bond payments. The CIP planned to use $283,018 of its fund balance in 2024 and end the year with a positive $763,106 fund balance. The amended amount will change this projection to end 2024 with a positive fund balance of $738,356. SUPPORTING INFORMATION • Project Detail for 16-CIP-R003 (as amended) Finance Department Joint Recreation Department CAPITAL IMPROVEMENT PLAN City of Hopkins, MN - CIP Contact Management Analyst 2024 2028thru Department Recreation Description Increased 2024 amount by $75,000 from original 2024-2028 CIP. Increased City share of parking lot mill and overlay project by $24,750. Park Fund has available Fund Balance to absorb addition cost. Amendment considered by City Council on June 11, 2024. Project #16-CIP-R003 Priority 3 Important Justification Shady Oak Beach is jointly operated by the cities of Hopkins and Minnetonka. The facility is open from June - August each summer with the revenues generated from season pass sales and daily admissions. The facility was most recently renovated in 1998. An additional renovation on the lifeguard shack was completed in 2021. 2024: Inflatable replacement ($10,000); parking lot mill and overlay ($155,000) 2025: Miscellaneous building maintenance 2026: Miscellaneous building maintenance 2027: Miscellaneous building maintenance 2028: Miscellaneous building maintenance Budget Impact/Other Useful Life 10-20 yearsProject Name Shady Oak Beach Improvements Category PW - Parks Type Improvement Future Total Project Cost:$475,000 Total20242025202620272028Expenditures 140,000165,000 20,000 10,000 10,000 10,000Construction/Maintenance 165,000 20,000 10,000 10,000 10,000 140,000Total Total20242025202620272028Funding Sources 93,800110,550 13,400 6,700 6,700 6,700GU - Other Governmental Units 46,20054,450 6,600 3,300 3,300 3,300PDF- Park Dedication Fund 165,000 20,000 10,000 10,000 10,000 140,000Total Wednesday, May 29, 2024 The joint recreation agreement in place between the cities of Hopkins and Minnetonka provides for the sharing of operational and maintenance expenses for Shady Oak Beach. These expenses are split 33% city of Hopkins and 67% city of Minnetonka. Shady Oak Beach is operated from June - August annually; however the park is available for use year round.