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HomeMy WebLinkAboutRes2010-125 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -125 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE 2010/2011 BIENNIAL BUDGET TO REFLECT MID -CYCLE CAPITAL BUDGET CHANGES WHEREAS, the 2010/2011 Biennial Budget was passed on November 23, 2009, reflecting the City's first biennial budget, covering the period from January 1, 2010 through December 31, 2011, and including both the operating and capital budgets; and WHEREAS, the staff has reviewed and updated the capital component of the budget and reviewed the proposed capital budget changes with the Seward City Council at a work session on November 22, 2010; and WHEREAS, this resolution adopts specific changes to the General Fund and all enterprise fund capital budgets, with specific change highlighted on the spreadsheets attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The 2010/2011 Biennial Capital Budget is hereby amended to incorporate the changes reflected on the attached spreadsheets, which are effective for the calendar year 2011. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 13th day of December, 2010. THE CITY OF SEWARD ALASKA „„r 4441i Willard E. Dunham, Mayor AYES: Valdatta, Bardarson, Keil, Shafer, Dunham NOES: None ABSENT: Smith, Casagranda �,� ®�� If I #4,0 ABSTAIN: None �4,� s� ATTE :0.1: * RR id' a 7J A *MN Jean Jean wis, C4 Cl rk W q w' OS p COUNCIL AGENDA STATEMENT Meeting Date: December 13, 2010 Through: Phillip Oates, City Manage sew From: Kristin Erchinger, Finance Director N'" u :`� RE: Mid -Cycle 2011 Capital Budget Modifications *Qrse 4 1 CAT BACKGROUND & JUSTIFICATION: The City of Seward passed its first biennial budget on November 23, 2009 covering the period January 1, 2010 through December 31, 2011. The City intends to do a mid -cycle budget review during the off -year of each biennial budget cycle (this will occur at the end of each even - numbered year, in preparation for the second year of the approved biennial budget). The purpose of this resolution is to propose changes to the capital budgets for the General Fund and the enterprise funds of the City. The Seward City Council met with staff in a work session on Monday, November 22, 2010, to review the proposed capital budget adjustments. Staff again alerted the Council to the fact that for more than ten consecutive years, there has been no identified source of revenue to repair and/or replace existing City general government infrastructure. The City does generally utilize one -time State revenue sharing funds (when available) to meet some one -time capital expenditure needs. Enterprise funds also lack the ability to meet some of their most critical and high -risk capital needs, based on lack of adequate funding. The capital budget plans reflect a list of needs identified for 2011. However, funding is not appropriated to meet any of these capital budget needs, with the exception of minor General Fund needs which will be met only if State Revenue Sharing funding is received, and capital requirements in the Parking Enterprise Fund and Motor Pool Internal Service Fund. The Harbor capital needs in 2011 were pared back to $28,000 to accumulate revenues from the newly established capital infrastructure fee in order to accomplish meaningful capital repairs in 2012. The Electric capital needs total $1.6 million, with most of those needs being identified as critical, but with no funding to meet those needs. Similarly, the Water capital needs are $4.9 million in 2011, and the Wastewater capital needs are $835,000 in 2011. Staff will continue to pursue grant or loan opportunities, as available. The Parking Fund has $549,000 in capital needs for which funding is largely available, and the Motor Pool Fund has $330,000 in capital equipment needs which are expected to be purchased in 2011. CONSISTENCY CHECKLIST Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: ATTORNEY REVIEW: X Yes No FISCAL NOTE: It is important to note that because the enterprise funds are not making annual contributions to their major repair and replacement funds in accordance with established budget policies of the City, and because the General Fund lacks a specific revenue source to provide for capital budget needs -- including major repairs and replacement of existing infrastructure -- most of the items listed in the capital budget will go unfunded. The lack of a meaningful plan to fund existing City assets will have serious financial implications in the future, if outside funding is unavailable to replace or repair existing assets. Given the anticipated reductions in federal and state funding, the City must develop a mechanism for funding its existing infrastructure, or face significant capital cost increases in the future. Existing debt loads in some funds, combined with insufficient rate structures, will make it ch in if to issue bonds in the future to replace existing infrastructure. Approved: ■ tih RECOMMENDATION: City Council approve Resol 2010- amending the 2011 capital budget. Capital Improvement Plan 1 General Fund - Related Capital Projects low Fiscal Year end 2011 New or Project Funding Source Project Description Replace Year Cos City Portion Other Portion Source STREETS: Poor Condition: Dora Way /Olympia - (.4) R 2012 8118,360 8118,360 Federal Adams: let to 2nd - (.2) It 2012 $115,500 $$115,500 Federal Fair Condition: Fifth Ave: Railway to B Street - (.7) R 2012 8555,170 8555,170 Federal A St: 1st to 3rd - (.2) R 201.2 $104,094 $104,094 Federal Jefferson (entire - .4) It 2012 8317,240 $317,240 Federal C Street and 1) Street - (.2) R 2012 $158,620 $158,620 Federal Birch St. R 2012 $122,144 $12 Federal Sea Lion Drive R 2012 897,449 897,449 Federal Coolidge R 2012 551,033 $54,033 Federal Cedar St. It 201 8119,559 $119,559 Federal Alder St. R 2012 836,179 $36,179 Federal Lowell Canyon Rnad R 2()12 $-16,200 Bette Cato � 846,200 Federal R 2012 8133,705 8133.705 Federal Monroe: 5th to 7th R 2012 899,000 $99,0(10 Federal Adams: 5th to 6th R 2012 $44,000 $44,000 Federal Storm Drain NIR 2012 8410,000 $440,000 Federal New Roads /Paving: Leirer Road and Alameda Road N 2012 $505,000 $505,(10 State /Federal Oak Street N 2012 $350,000 $350,000 State /Federal Total Street Projects: 83,416,253 80 $3,416,253 SIDEWALKS, CURBS, GUTTERS, DRAINAGE: 5th Ave: West side from Adams to Jefferson N 201:1 578,348 $78,348 Federal Railway to Jefferson on 4th N 2012 $1,045,495 $1,045,495 Federal Railway to Jefferson on 5th N 2012 $702,075 $702,075 Federal ilitio Resurrection (Swd Hwy to High School) N 2012 8398.200 $398,200 Federal Benson Dr. north side N 2012 $198,385 $1.98,385 Federal Coolidge Dr. Benson to Swd Hwy N 2012 8263,203 $263,203 Federal Dora Way to Phoenix both sides N 2(112 $468,105 8468,105 Federal Phoenix to Swd Hwy both sides N 2012 $673,041 $673,041 Federal Lowell Canyon Road north side N 2012 $176,000 $176,000 Federal. Marathon drainage, culverts both sides N 2012 $113,300 $113,300 Federal Jesse Lee Dr. drainage and culverts, both sides N 2012 S86,900 $86,900 Federal Alice, drainage, culverts N 2012 822,000 $22,000 Federal Bette Cato drainage and culverts, both sides N 2012 $13,200 $13,200 Federal Birch St drainage and culverts, both sides N 2012 S74,800 874,800 Federal Alder St, drainage and culverts, both sides N 2012 825,30(1 $25,300 Federal Lowell Canyon Rd. south aide N 201 $26, 100 $26,400 Federal Cedar St. drainage and culverts, both sides N 2012 863,800 863,800 Federal Benson Drive drainge and culverts, both sides N 2(112 $35,200 $35,200 Federal Total Sidewalk Projects: $4,463,751 $0 $4,463,751 CITY SHOP: New diesel. fuel dispensing system R 2011 875,000 875,000 General Fund Covered dry storage for heavy equipment (if noshop) N Unknown 8125,000 8125,000 General Fund City Shop Facility Phase I: Site Layout /Design R Linknown $75,000 575,000 General Fund City Shop Facility Phase 11: Construction R Unknown 85,280,000 85,280,00(1 General Fund Total City Shop Projects: $5,555,000 85,555,000 $0 ) .. Capital Improvement Plan General Fund - Related Capital Projects j Fiscal Year 40-1-0-fm4 2011 New or Project, Funding Source Project Description Replace Year Cost City Portion Other Portion Source PUBLIC SAFETY: North Forest Acres Road /Levee N 2011 $4,400,000 $0 $4,400,000 Federal/State Lowell Point erosion mitigation R 2011 $200,000 $0 $200,000 Federal /State Fire Hydrant upgrades - Ph. II R 2012 $200,000 $200,000 General Fund Breathing Air Compressor R 2012 $25,000 $25,000 General Fund Generator for AVTEC emergency shelter N t°ntn,.,n $125,000 $125_,000 General Fund Satellite Fire Station / Storage Facility (Forest Acres) N rata,,,, n $960,000 $960,000 Grant Ladder Platform Vehicle N t'nknoa n $950,000 $950,000 Grant Satellite Station on Nash Road N t'nt,,,,,,n $440,000 $440,000 Grant Expand SMIC building storing engine N t'n;,na„n 533,000 $33,000 General Fund Public Safety Building N t' nkno„ -n $5,665,000 $5,665,000 General Fund Total Public Safety Projects: $12.908,000 56,048,000 $6,950,000 PARKS & RECREATION: Campground/bike path D -1 replacement of lost materit R 2011 $50,000 $50,000 General Fund Bench Erosion Engineering Study N 201 1 $150,000 $150,000 Federal /General Beach Erosion repairs at waterfront R 2010 888,000 $88,000 Federal /General TY C landscape, fence, play area R 2012 $25.410 $25,410 General Fund Beach Erosion control finger construction N „known $88,000 $88,000 Federal/General Lagoon Boardwalk rebuild 11 ,,ti,,,,, 5264,000 $264,000 General Fund Replace Wellington Pavilion R „knoHn $400,000 $400,000 General Fund Restroom and Concession Stand Upgrade R ' nk III :,-» $179,300 $179,300 General Fund Informational /directional maps N „thou-„ 823,100 $23,100 General Fund Forest Acres campground improvements R t'a no, n 835,000 $35,000 General Fund Jon Perry softball field fence replacement R Ilk nn: $75.000 $75,000 General Fund Small Outdoor Restroom - Williams Park N t kn "„n $44,000 844,000 General Fund Centennial Park N t'slsno:,n $.127,500 82 $200,000 Grant /GF *NJ Sweet Smelling Toilet at culvert N i k . .,o $18,400 $48,400 General Fund Marathon Campground rehabilitation R ct,n.,,,, $5 $52,800 General Fund Forest Acres Park playground upgrades R r am, $38.500 $38,500 General' Fund Harborsidc Park - Phase 1 /Seaview Campground R nkm>„n $150,150 5150,150 General Fund Harbor Park (new south harbor uplands) N t nknown $890,900 $890,900 State /General Little League Field restrooms 8 t'nkn, >„n $187,000 $187,000 General Fund Boulder Field - turf, fence, grade. drains R t ,knu „„ $275,000 $275,000 General. Fund Playground park at softball comple=x N ntn,,,,n $50,000 $50,000 '1' -hall field at .softball complex N t' nknn , vn $ 100,000 $100,000 Paving in -1D,1 camp spots, parking site's in park-Y•:1111 : N 1 ,kne, „n $85,000 585,000 General Fund Total Parks & Recreation Projects: $3,727,060 $3,527,060 $200,000 CITY HALI/LIBRARY /OTHER: * Clerk's records management software progrnir R 2011 $10,000 $10,000 General Fund * City Hall carpet repairs R 2011 $60,000 $60,000 General Fund * City Clerk Recording and Sound System N 2011 $40,000 $40,000 General Fund City Hall electrical upgrades R 2011 865,000 $65,000 General Fund ADA parking at City Hall N t ' nkn1,,,II $30,000 $30,000 General Fund IUSCG budding' site design N 2010 $40,000 $40,000 General Fund Fix venit0ation at City Hall R 1 ,,. ,,,, $85,000 $85,000 General Fund Community Library /Museum R. 201 $10,000,000 $3,500,000 $6,500,000 Grant 'l'otal City Hall/Library Projects: $10,330,000 $3,830,000 $0,500,000 Mooring Dolphins /Dock Improvements for Sewar N 2011 $1.,500,000 $0 $1,500,000 Grant Total General Fund Projects: 541,990,064 $18,960.060 $23,030,004 Total General Fund Projects for 2011: $6,675,000 $575,000 • $6,100,000 Note: Revenue Sharing for 2(110 wa* used 100?-il to hcgm r,:pa) ua;; FIcctric Fund for prior )ears SMMi1C deficit coverage, to 00 funding rental to pay for General Fund- related capital items in 2010. ' r he r(•foro, 1 resolution will w ale botbre Council to appropriate from Fund Hal No funding has been identified for capital costs in 2011. j Funding for $3 million in local road improvement., ma) be available in 20 12 frum D09' earmarks. Ilili CITY OF SEWARD HARBOR ENTERPRISE FUNC SUMMARY OF FIVE -YEAR CAPITAL IMPROVEMENT PROGRAM FUNDING Description Status 2011 2012 2013' 2014 CRITICAL NEEDS: Highly likely to fail within the next five years Floats & Docks Replace D Float and Piling Replace 50 51,493,110 50 50 D-Float electric system Replace 50 5242250 $0 50 Replace A,B,C,S and G (connection) Floats Replace $0 $0 $0 $4,500,000 Piling for Floats A,B,C,S Replace 50 50 50 5630,000 Replace S Launch Ramp Replace $0 50 50 5550,000 Uplands Trash Dumpsters (6) Replace $0 50 50 540,000 NE Fish Cleaning Station Replace $0 513.650 $0 50 Maintenance Harbor Dredging Maint $0 5225,000 $0 $0 Total Critical Needs: 50 $1,974,010 50 55,720,000 HIGH RISK: Highly likely to fad within the next 5 -10 years. Floats & Docks Replace K & L floats Replace $0 50 50 50 Replace N Launch Ramp Replace $0 50 50 $0 B&C floats - electric system Replace $0 50 50 50 Structures Harbormaster Restrooms Replace $0 5100,000 $0 $0 Equipment Fish Waste Barges Replace $0 $0 535,000 535,000 Total High Risk Needs: $0 5100,000 535.000 535,000 MODERATE RISK: Continuously increasing cost to maintain and operate X - used oil collection facility Maintain 20,000 O - used oil colletion facility Maintain 20,000 F - used oil Maintain 20,000 J - used oil Maintain 20,000 25' Boston Whaler Maintain 5,000 5,000 5,000 5,000 21' Boston Whaler Maintain 3,000 3,000 3,000 3,000 Total Moderate Risk Needs: 528,000 528,000 528,000 528,000 Total Capital Outlay $28,000 52,102,010 563,000 $5,783,000 Fully depreciated (book value) of harbor assets total approximately $4 million CITY OF SEWARD ELECTRIC ENTERPRISE FUND FIVE -YEAR CAPITAL INFRASTRUCTURE PLAN (excluding new Items) Useful Description Life 2011 2012 2013 2014 iiisj CRITICAL NEEDS: Highly likely to fail within the next five years Transmission Transmission to Ft. Ray R $360,000 $360,000 $360,000 $360,000 Transmission by Lagoon R 30 $450,000 50 $0 $0 Distribution Jesse Lee Underground R 50 50 530,000 $0 $0 Camelot Underground R 50 5150.000 50 $0 $0 Mcdonald Yard R $25,000 $0 $0 $0 Operations and Maintenance ROW clearing Transmission M $500,000 560,000 $60.000 $60,000 ROW clearing Distribution M 540.000 540.000 $40,000 $40.000 Paint Transformers Spring Ck M $0 $0 $0 $30,000 Recloser Maintenance M 5 $0 $80.000 $0 $0 Loadtap Changer Sprg Crk M $0 580,000 $0 $0 Critical Needs: $1.525,000 $650,000 $460.000 5490,000 HIGH RISK: Highly likely to fail within the next 5 -10 years. Distribution Old Mill #3 R $0 50 5120,000 $0 Gateway (Upper) R $0 $0 $0 $180,000 Gateway (Lower) R $0 $0 $0 $80,000 Woodland Hills R $0 50 $0 5120,000 Lost Lake Underground R 50 $0 $55.000 $0 $0 SMIC Underground R 50 $0 $0 $0 $105,000 Operations and Maintenance Paint Transformers Ft. Ray M $0 50 530,000 $0 Paint Transformers Lawing M 50 50 $0 $0 Transrupter Mainenance M 5 520 0 0 SO 50 $0 ej Fort Raymond Maintenance Exhaust stack Gen 3 M $0 $0 $0 $0 New Roof over Gen's 3 & 6 R $0 $0 $0 $0 Meter Relay and View Screen U 520 000 $0 $0 $0 Other Software for inventory U $500 $0 550,000 $0 High -Risk Needs: $40,500 555,000 5200,000 $485,000 MODERATE RISK: Continuously Increasing cost to maintain and operate Distribution Lawing Poles F $0 50 50 $25,000 Victor Creek Poles F $0 $0 $0 $110,000 Lake Drive (Stony Creek) R $0 $0 $0 5140,000 Lake Drive (Questa Woods) R $0 $0 $0 S80,000 AVTEC Underground R 50 $0 $0 $0 515,000 Southwest Boat Ramp R 50 $0 $33,000 $0 $0 Lawing to Victor Ck Overhead R 50 50 575,000 $0 $0 Operations and Maintenance Switch at Nash Road U 50 5100,000 $0 $0 Fort Raymond Maintenance Update Ft. Ray controls U $0 5150,000 5150.000 5150.000 Security upgrades U $60,000 560.000 $0 $0 Other AMR U 50 5285,000 5515,000 50 Moderate -Risk Needs: $60,000 $703.000 5665,000 $520.0001 .0 3, Total Needs: 51,625,500 51,408,000 51,325,000 51,495,000 Status R= Replace F -Fix M- Maintenance U= Upgrade N =New ND =No Depreciation irop CITY OF SEWARD WATER ENTERPRISE FUND FIVE -YEAR CAPITAL INFRASTRUCTURE PLAN Description Status 2011 2012 2013 2014 I CRITICAL NEEDS: Highly likely to fail within the next five years Storage and Production Refurbish #4 Production Well Maint $85,000 $0 $0 $01 Facilities Water Storage Tank New $4,060,000 $0 $0 $0 Gateway Tank Roof Replace $300,000 $0 $0 $0 Pressure Station Replace $50,000 $125,000 $400,000 $25,000 Backup generator for well field New $45,000 500K water tank site control, engineering New $180,000 Critical Needs: $4,720,000 $125,000 $400,000 $25,000 HIGH RISK: Highly likely to fail within the next 5.10 years. Facilities Lowell Canyon Water Tank Inspections Maint $30,000 $0 $0 $0 Abandon Wells at Fort Raymond 0 0 0 0 if Distribution Piping Upgrades 0 0 0 0 1 fir.. High -Risk Needs: $30,000 $0 $0 $0 MODERATE RISK: Continuously increasing cost to maintain and operate Facility Control Upgrades Replace $60,000 $35,000 $15,000 $15,000 Generation @ Wells New $30,000 $95,000 $0 $30,000 GIS New $20,000 $20,000 $10,000 $10,000 New #7 Production Well New $50,000 $150,000 $450,000 $0 Moderate -Risk Needs: $160,0001 $300,0001 $475,0001 $55,000 Total Needs: $4,910,000 $425,000 $875,000 $80,0001 4 ilirr uni CITY OF SEWARD WASTEWATER ENTERPRISE FUND FIVE -YEAR CAPITAL INFRASTRUCTURE PLAN Status 2011 2012 2013 2014 I CRITICAL NEEDS: Highly likely to fail within the next five years Lift Stations #4 (FA) Lift Station Generator Replace $90,000 $20,000 $10,000 $10,000 Double Wall Fuel Tanks Replace $40,000 $20,000 $20,000 $20,000 SMIC BypassWVaiving New $55,000 $80,000 $20,000 $0 #1 Lift Station Generator New $140,000 $35,000 $10,000 $10,000 Critical Needs: $325,000 $155,000 $60,000 $40,000 HIGH RISK: Highly likely to fail within the next 5 -10 years. SMIC Lower L.S. Engeering $50,000 $0 $0 $01 High -Risk Needs: $50,000 $0 $0 $0 MODERATE RISK: Continuously increasing cost to maintain and operate Facilities L.P. Sludge Piles @ SMIC $320,000 $0 $0 $01 Moderate -Risk Needs: $320,000 $0 $0 $0 Projects Requiring Funding to Complete: Security New $20,000 $10,000 $10,000 $10,000 GIS New 540,000 $20,000 $10,000 $0 Manholes Maint 580,000 $10,000 $10,000 $10,000 Total Other Projects: $140,000 $40,000 $30,000 $20,000 Total Needs: $835,000 $195,000 $90,000 $60,0001 CITY OF SEWARD PARKING ENTERPRISE FUND FIVE -YEAR CAPITAL INFRASTRUCTURE PLAN Description 2011 2012 2013 2014 CRITICAL NEEDS: Highly likely to fail within the next five years Parking Lots Middle harbor parking lot Repave $350,000 Critical Needs: $0 $350,000 $0 $0 HIGH RISK: Highly likely to fail within the next 5 -10 years. None meet this criteria MODERATE RISK: Continuously increasing cost to maintain and operate Parking Lots N. harbor parking lot Patching, sealing and striping $85,000 Middle harbor parking lot Patching, sealing and striping $50,000 S. harbor parking lot Patching, sealing and striping $95,000 S.E. harbor (permit) lot Patching, sealing and striping $100,000 NE ramp lot Patching, sealing and striping $50,000 Parking office (white chalet) Moderate -Risk Needs: $380,000 $0 $0 $0 NEW Equipment Luke automated pay station $0 $0 $0 $0 Luke automated pay station $0 $0 $0 $0 N. Harbor automated pay station (2) $0 $0 $0 $0 N.E. lot automated pay station (2) $32,000 $0 $0 $0 S.E. lot automated pay station (2) $32,000 $0 $0 $0 Parking Lots NE ramp lot Paving $250,000 Patching, sealing, striping $95,000 Gravel $10,000 $10,000 Additional paving (depends on USCG) New fencing $50,000 N. harbor parking lot Paving S. harbor parking lot Paving S.E. harbor (permit) lot S. harbor uplands parking lot Paving Sealing and striping Note: need decision as to development level in uplands. Boulder field Low -Risk Needs: $169,000 $10,000 $300,000 $0 Total Needs: $549,000 $360,000 $300,000 $0 I■ CITY OF SEIVARD MOTOR POOL FUND 243-1-#'2011 CAPITAL REQUIREMENTS Year to Years to tlili Miles Hr Condition& max Years till LOOK replace based Unit a nepaiinleill Year Vehicle Total Miles Tio ors replace based Replace Cost per ■ ear age miles or max hrs on hours miles an 163C 2011 Replacement 120 Public Works 1988 Flatbed 16,105 3,342 1', I 0 2019 1998 45.000 152 Wastewater 515 Electric I 973 Dozeritiackhoe New Meter l'ool.15 10000 No data 1988 LeaserPurclooe S200,000 456 I !arbor I 999 Flatbed 66.963 6.696 Fair 5 2014 2009 4.5,000 S 330,000 J