ITEM: 5.1 New Business- Nate Monahan, Program Supervisor
Title
Recommendation of 2013-2017 Five-Year Capital Improvement Plan for Park Development Funds
Background
The City maintains a five-year Capital Improvement Plan for Park Development Funds. The Capital Improvement Plan is a flexible plan based upon long-range physical planning and financial projections. Flexibility is achieved through annual review and revisions as necessary. All improvements listed in the plan are proposed and must come back to the Park Board for review and recommendation to the City Council. The City Council then makes all final decisions on capital improvements.
Revenue for the capital improvement plan comes from park dedication fees required of all new residential($2,813), commercial($7,747) and industrial($5,166) development. The residential fee is split with 65% of the fee going to parks and 35% of the fee going to open space. 100% of the commercial and industrial fees go to parks.
Revenue from park dedication fees can only be used for development of new parks and trails, for new improvements to community parks used by all residents and for improvements to neighborhood parks that serve new growth. It cannot be used for park maintenance.
*After meeting with our finance and planning and development director we have increased our yearly park dedication fees significantly due to the amount of growth we are currently experiencing and will experience in the future. We are however still budgeting at a conservative level with our current numbers shown on the 2013 - 2017 CIP.
At the August 2012 Park Board meeting the Board was informed of recent and major park projects that emerged and would affect the Park Fund. Funding strategies were approved by City Council to finance these projects and with consideration to the impact on the Park Fund. The major projects are Aquatore Park Field #1 Relocation as a result of the Fogerty Curling Rink Expansion and the development of a 38 acre Lexington Athletic Complex.
A review of the sources of funding to offset costs of these major projects are:
1. Capital Improvement Fund (CIF): This fund can be used at the discretion of the City Council to provide monies to city-wide projects that enhance or benefit the community. The amount of $1,900,000 will be transferred to the Park Fund from the CIF ($850,000 was already transferred in 2012). This transfer will not be repaid from the Park Fund.
2. Internal Funds Borrowing: This is borrowed money from the Water Utility Fund or Capital Improvement Fund and will be repaid from the Park Fund in annual payments according to the Finance Department's recommendation as indicated in the CIP. In 2013, the amount of $1,000,000 will be transferred to the Park Fund.
3. Other Funds: Minnesota State Aid - $150,000 to pay for the right turn lane at Lexington Athletic Complex, Open Space - $95,000 for trails at Lexington Athletic Complex, and Utilities (Sewer and Water) $110,000 at Lexington Athletic Complex.
Total Revenue: $385,000 (Does NOT need to be repaid)
The plan elements that follow are to be considered by the Park Board for recommending the 2013-2017 Capital Improvement Plan for Parks to the City Council.
Plan elements:
· Aquatore Park Field #1 Relocation project will carry over to 2013 as the wetland mitigation will be determined in the spring. Once determined, bids will be sent out to construct a new lighted ball field. City staff, Park Board and City Council knows this field is necessary as indicated in field usage statistics presented by staff.
· Aurelia Park replacement of tennis and basketball courts in the amount of $45,000 which was previously approved by the Park Board.
· Legacy Creek Park became a priority project for 2012. However, only three bids were received and all were higher than the estimated amount to develop the park. The average bid was $164,826 and the estimate was $87,970. Thus they were rejected and new bids were sent out in 2013. The neighborhood was informed of this delay. All costs for park consulting fees, playground equipment, shelter, basketball court materials and park accessories were paid in the amount of $79,190. Staff is recommending the amount of $125,000 for 2013 to develop the park in anticipation of increased costs for park development as demonstrated in the first bids. This item has been previously recommended by the Park Board and was approved by the City Council on March 7, 2013.
· The Lexington Athletic Complex is a project that began last year with the purchase of 38 acres and the contracting of a park consultant. The bid process for this park project will began late 2013 or early in 2014 once we figure out the wetlands on this property. Delaying the bid process to early 2014 should give us a better biding climate as seen with Legacy Creek Park Project.
1. Shifting existing projects, amending projects or removing projects. Projects may be programmed for a different year by either moving them forward or back in the plan or the CIP is amended to accommodate a project reprioritization.
2. Prioritizing new or proposed projects. New projects come up through staff, board members, council members and residents.
· The Lakeside Commons Park Parking Lot Improvement (1.5 acre) project was scheduled for 2012 however City Council wanted to continue with the temporary overflow parking lot for another year. It has now been moved to 2013 as the Park Board has indicated this as an asset to the park's function. *The $165,000 will only cover the construction costs, not the land acquisition.
Recommendation
By motion, recommend the City Council adopt the 2013 to 2017 Capital Improvement Plan for Park Development Funds.