07-28-2015 CCM WORKSHOPHUTCHINSON CITY COUNCIL
REVIEW OF 2016 CAPITAL IMPROVEMENT PLAN
MINUTES
TUESDAY, JULY 28, 2015 AT 4:00 PM
CITY CENTER — COUNCIL CHAMBERS
1. Call to Order
Mayor Forcier called the workshop to order at 4:00 p.m. Members present included Mary
Christensen, Bill Arndt, Chad Czmowski and John Lofdahl. Others present were Matt Jaunich,
City Administrator, Marc Sebora, City Attorney and Kent Exner, City Engineer
REVIEW OF 2016 CAPITAL IMPROVEMENT PLAN
2. 2016 Capital Improvement Plan
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that prior to
reviewing the proposed budgets in depth, he prefers to review the capital improvement plan in
depth. Mr. Jaunich noted that he and staff members have been working on the capital
improvement plan document for the past six months. Staff is looking for feedback from the
Council. This document provides framework for staff on assisting in developing budgets. This
document is also used for goal and vision setting for the organization.
Mr. Jaunich began an overview of the five year capital plan document. Total dollars identified in
the plan are $48,112,752. The majority of the plan is comprised of funds for infrastructure
improvements. Another large part of the plan are projects identified in the park and recreation
department — most largely for the pool project. Other large areas in the plan include compost,
fire, water/wastewater/stormwater. The projects are funded by the enterprise funds, taxes,
aid/grants, new debt, special assessment sand special funds/reserves.
Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that facility
improvements will be funded by the capital projects fund and excess LGA in the amount of
$750,000 annually. Fleet and equipment is funded by the equipment replacement fund and a
general fund transfer in the amount of $225,000. Current funding is adequate for the City's
"small" fleet but heavy fleet (cost more than $75,000) has no funding source. Therefore the City
will fund heavy fleet projects with excess LGA and debt certificates. Enterprise funds projects
are funded by cash flow from the operations and cash reserves. Infrastructure improvements are
reviewed annually by the Resource Allocation Committee who review the costs and funding.
These projects are funded by the debt levy, special assessments and debt service payment funded
by the debt tax levy.
Mr. Jaunich then reviewed the five components of the capital improvement plan. These include
the fleet committee, facilities committee, Creekside, Resource Allocation Committee and
General.
Dan Hatten, Fleet Committee, presented before the Council. Mr. Hatten noted that the fleet
committee has identified and classified every piece of City equipment and separated light duty
fleet from heavy duty fleet. Each piece of equipment was evaluated for useful life expectancy,
sharing between departments and purchasing versus leasing. The facilities committee, through
evaluations, was able to eliminate 30 pieces of equipment from the City's overall fleet. Mr.
Hatten reviewed the equipment in the light fleet category, which include 85 pieces of equipment.
Currently, $225,000 of CIP funds are allocated for light duty fleet and is sustainable with the
current CIP plan. The City currently has 56 pieces of heavy duty equipment and there is no
identified funding source for heavy duty fleet. Mr. Jaunich noted that the Council will have to
discuss proper funding for heavy duty fleet. Past practice has been to use cash or reserves and
Mr. Jaunich questioned whether or not that is the best practice to follow.
Dan Jochum, Facilities Committee, presented before the Council. Mr. Jochum noted that the
facilities committee has determined to shift every project on their list back one year in order to
accommodate the pool project. The Facility Planning Concept/Funding Model has been working
well. Current projects on the list include Roberts Park backstops, VMF backstops/dugout,
Northwoods rink improvements, Event Center entry roof, Parks garage parking lot, Rec Center
Air Handler. Mr. Jochum reviewed the five year facilities plan and the projects included. Mr.
Jochum explained how the facilities committee establishes projects and how they fit within their
plan. Mr. Jochum mentioned that the facilities committee feels it is time to discuss building
security, technology upgrades, better customer service and work space/cross training
opportunities at City Center, which is now 21 years old.
Andy Kosek, Creekside, presented before the Council. Mr. Kosek spoke about the capital
improvement plan and how it relates to compost and refuse funds. Mr. Kosek reviewed capital
projects slated for 2016, which include bituminous repairs, bagging line upgrades, front end
wheel loader, portable go -bagger, truck/semi tractor, maintenance shop upgrade, and bag storage
blacktop. 2017 calls for the final phase of bituminous repairs, bagging line upgrades, office
building, wood grinder replacement and truck/semi tractor. In 2018 a skidsteer loader, cold
storage building, loading dock, face replacement on the compost turner and truck/semi tractor are
scheduled. In 2019 the needs include stacking conveyors and walking floor trailer replacement.
2020 calls for another walking floor trailer replacement and a screener replacement. Mr. Kosek
then reviewed Creekside's current production model and compared it to a lower volume
production model. Mr. Kosek then reviewed projects included in the refuse fund over the next
five years. The projects scheduled in these two areas total $2.6 million of the capital
improvement plan. Mr. Kosek asked the Council to consider reviewing a lower volume model
for the Creekside Soils operation.
Kent Exner, Resource Allocation Committee/Public Works, presented before the Council. Mr.
Exner reviewed the roadway improvement projects scheduled in each year. Also included in the
capital improvement plan is a water tower rehabilitation on Golf Course Road, south central
drainage improvements, and Second Avenue bridge. Mr. Exner also talked about future capital
improvement project plan considerations for the Council to be thinking about. Mr. Exner also
spoke about project funding limitations and concerns.
Mr. Jaunich spoke about the water park pool project. $5 million has been identified for this
project. Funding sources include community improvement fund, capital projects fund and excess
fund balance in the general fund. There will be no debt associated with this project. Mr. Reid
also mentioned that the City has been advised that the City can spend down $1 million in reserves
and not affect its bond rating.
Mr. Jaunich reminded the Council of the importance of the CIP document and how it drives the
establishment of the budget.
3. Adj ournment
Motion by Arndt, second by Lofdahl, to adjourn the workshop at 5:20 p.m. Motion carried
unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator