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7.4 Resolution 22-8020 Amended Capital Improvement ProgramCITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 02/07/2022 4:00 P.M. AGENDA SECTION NO: ITEM NO: 4 Page 1 ITEM: Resolution No. 22-8020 ORIGINATING DEPARTMENT: FINANCE & ADMINISTRATION BY: Debbie Pack FISCAL APPROVAL: M BY: Resolution No. 22-8020 Adopting the 2022-2026 Amended Capital Improvement Program. BACKGROUND: The Capital Improvement Program includes two distinct categories. The first is the 5 Year Capital Improvement Program (CIP), which is typically large dollar projects with long life cycles that may be funded with current cash, but are often funded with debt financing. The second category is the Sub- CIP which is a mechanism to provide preapproval by the City Commission for larger (over $20,000) cash supported items broken out into six categories: CIP Planning, Building & Facilities, Parks, Streets, Vehicles & Equipment and Water/Wastewater Enhancements. The 2022-2026 Capital Improvement Program was adopted on Dec. 20, 2021, under Resolution No. 21-8009. During the November 22, 2021, City Commission gave staff direction to move forward with the purchase of a building on the General Services campus to house the new automated sanitation trucks. The Amended 2022-2026 CIP includes that project, as follows: Sanitation Building Purchase and install an 8 stall prefabricated metal building on the General Services campus to house the automated sanitation packer trucks. In addition to storage, this building will provide additional security, engine block heaters for trucks, wash bay for trucks and a dedicated maintenance bay for the automated trucks. Project cost: $375,000 Source of funding: Temporary Notes issued in 2022 with General Obligation Bonds supported by user fees issued in 2023 or after completion of project. (Annual debt payment $28,000 for 20 years 2024-2043) No other changes are being made to the 5 year program or the Sub-CIP at this time. The Planning Commission met on February 1, 2022, and reviewed the proposed addition of the $375,000 Sanitation Truck Building and unanimously approved a motion finding that the sanitation truck project and proposed location was in conformance with the City's Comprehensive Plan FISCAL NOTE: The item added in the Amendment, is anticipated to be funded through the issuance of Temporary Notes and/or General Obligation Bonds supported by Sanitation fees. Any purchases related to this additional project exceeding $30,000 and any debt issuance will be presented to the City Commission for approval prior to expenditure commitment or debt obligation. AGENDA SECTION NO: ITEM NO: Page 2 CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION ORIGINATING DEPARTMENT: FINANCE & ADMINISTRATION BY: Debbie Pack DATE TIME 02/07/2022 4:00 P.M. FISCAL APPROVAL: BY: FINAL APPROVAL: BY: A. Approve Resolution No 22-8020 adopting the Amended 2022-2026 Capital Improvement Program B. Approve Resolution No. 22-8020 with amendments the City Commission deems appropriate. C. Postpone consideration of Resolution No. 22-8020 to a specific date giving staff direction on additional information requested. D. Do not approve Resolution No. 22-8020 giving staff further direction. If resolution is not approved, staff does not have the authority to proceed with the procurement of items related to the added project. Attached: Resolution 22-8020 2022-2026 Amended Capital Improvement Program RESOLUTION NUMBER 22-8020 A RESOLUTION ADOPTING THE AMENDED 2022-2026 CAPITAL IMPROVEMENT PROGRAM FOR THE CITY OF SALINA, KANSAS. WHEREAS, the City of Salina has established a Capital Improvement Program Policy as a component of its Financial Policies Document; and WHEREAS, the Policy includes establishment of a five-year Capital Improvement Program (C.I.P.) to guide decision making on public improvements and expenditures; and WHEREAS, on December 20, 2021 and by Resolution No. 21-8009, the City Commission approved the 5 -Year (2022-2026) Capital Improvement. Program (CIP); and WHEREAS, on November 22, 2021 the City Commissjort directed staff to move forward with the plan to purchase a metal building to house the City's automated Sanitation trucks; and WHEREAS, the Governing Body desires to amend the 5 -Year (2022-2026) Capital Improvement Program to include the aforementioned project for commencement in 2022. SO NOW THEREFORE BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the 2022-2026 Capital Improvement Program is hereby amended to designate the aforementioned project for commencement in 2022. Section 2. That this resolution shall be in full force and effect from and after its adoption. Adopted by the Board of Commissioners and signed by the Mayor this 7th day of February, 2022. Trent W. Davis, M.D., Mayor (SEAL) ATTEST: JoVonna Rutherford, City Clerk DEPARTMENT OF FINANCE TELEPHONE (785) 309-5735 AND ADMINISTRATION FAX (785) 309-5738 Debbie Pack, Director TDD (785) 309-5747 300 West Ash, P.O. Box 736 Sailing E-MAIL debbie.pack[a@salina.ore Salina, KS 67402-0736 Website: www.salina-ks.gov February 7, 2022 To: Salina City Commission Attached please find a draft of the Amended 2022 through 2026 Capital Improvements Program (CIP). Projects are either scheduled into a specific year or placed in a category for "further review". Projects scheduled into a specific year have a defined scope and cost estimate as well as being associated with a specific funding source, and are grouped into years. The first year of a project is indicated by a (New project) after the title. Projects for further review are those projects that have been identified as potential needs, but which do not yet have a well-defined scope, cost estimate, or financing sources identified. These projects are not considered in the financial projections. Each project is identified by a title and a brief description of the project. Following that, a cost estimate is provided and source of funding is identified. The 2022 "Sub-CIP" (annual cash financed acquisitions and projects) is included at the back of the document. The sub-CIP for 2022 includes the following categories: Sub-CIP Class Budget (all funds) CIP Planning $ 100,000 Buildings and Facilities $ 270,500 Park Improvements $ 174,000 Streets, Traffic and Sidewalks $ 2,386,243 Vehicles and Equipment $ 1,861,800 System Enhancements $ 2,000,000 Sales Tax Support CIP Projects $ 3,750,000 11 Page 2022 Projects Sales Tax Projects: Hike Bike Trail Complete annual segments of the trail improvement. Completion of all trail segments is anticipated by 2025 at current rates of improvement. Project cost: $50,000 Source of funding: Sales Tax Parks Capital Improvements Plan, Phase Three Projects to be identified through Parks Master Plan. Project cost: $500,000 Funding source: Sales Tax Street Surface Improvements Projects listed in Sub-CIP Project cost: $3,200,000 Funding source: Sales Tax Total Sales Tax Cash Projects: $ 3.750.000 Debt Financed Smoky Hill River Renewal - Construction The River Renewal Project focuses on removing sediment, trash and debris; re -shaping the banks were needed; constructing a single accessible hike/bike path; and providing a community gathering place along the downtown portion of the channel. The preliminary design of the in -channel improvements is for all phases identified in the Master Plan. Final Design in -channel improvements selected from the Preliminary Design Phase. Total Project cost: $27,000,000 City at -large (possible additional $10,000,000 Corps of Eng.) 2022 Cost: $5,000,000 Source of Funding: Temporary Note repaid through GO Bonds paid from Sales Tax (annual debt payment $500,000 for 13 years 2024-2036 — budgeted to replace current debt payment for Kenwood Cove which paid off in 2020 ) Total Sales Tax Financed Projects' $ 5,000,000 (2024-2036) annual debt service $500.000/yr) 21 Page 2022 Projects cont. Property Tax Projects: Relocation of Fire Station #4 — Design Only Relocation of Fire Station #4 from NE corner of Crawford and Marymount to the SE corner of Crawford and Markely. Building was built in 1968. Living quarters and apparatus bay are inadequate for modern technology, as well as, apparatus size. Total Cost: $500,000 Funding Source: Temporary Notes issued in 2022 with General Obligation Bonds supported by Property Tax issued in 2024 or after completion of project. (Annual debt payment $33,000 for 20 years 2025-2044) Total Property Tax Financed proiects $ 500,000 Enterprise Fund Projects: Waterline Improvements The water distribution system engineering analysis identified a significant portion of the system in need of replacement due to aging condition and occlusion. Approximately 228 miles of line are cast iron over 40 years old. This project will replace approximately 8 miles of waterline per year with PVC pipe. Project cost: $2,000,000 annually Source of funding: Cash from WaterNVastewater Fund Sanitation Building Purchase and install a 8 stall prefabricated metal building in the General Services compound to house the automated sanitation packer trucks. In addition to storage, this building will provide additional security, engine block heaters for trucks, wash bay for trucks and a dedicated maintenance bay for the automated trucks. Project cost: $375,000 Source of funding: Temporary Notes issued in 2022 with General Obligation Bonds supported by user fees issued in 2023 or after completion of project. (Annual debt payment $28,000 for 20 years 2024-2043) Total Cost 2022 Projects: $ 11,625,000 31 Page 41 Page 2022 Fundina Surnmary Sales Tax Fund Cash $ 3,750,000 Sales Tax Debt Financed 2024 — 2036 $500,000/ r 5,000,000 Property Tax Debt Financed 2025-2044 ($33,000/yr) 500,000 Enterprise Funds Cash 2,000,000 Enterprise Fund Debt 2024-2043 $28,000/ 375,000 Total 2022 Projects $ 11,625,000 41 Page 2023 Projects Sales Tax Projects: Hike Bike Trail Complete annual segments of the trail improvement. Completion of all trail segments is anticipated by 2025 at current rates of improvement. Project cost: $50,000 Source of funding: Sales Tax Parks Capital Improvements Plan, Phase Four Projects to be identified through Parks Master Plan. Project cost: $500,000 Funding source: Sales Tax Street Surface Improvements Projects listed in Sub-CIP Project cost: $3,200,000 Funding source: Sales Tax Total Sales Tax Cash Projects: $ 3,750,000 Property Tax Projects: Relocation of Fire Station #4 — Construction Relocation of Fire Station #4 from NE corner of Crawford and Marymount to the SE corner of Crawford and Markley. Building was built in 1968. Living quarters and apparatus bay are inadequate for modern technology, as well as, apparatus size. Total Cost: $4,500,000 Funding Source: Temporary Notes issued in 2023 with General Obligation Bonds supported by Property Tax issued in 2024 or after completion of project. (Annual debt payment $303,000 for 20 years 2025-2044) Total Propery Tax Financed projects $ 4,500,000 Enterprise Fund Projects: Waterline Improvements The water distribution system engineering analysis identified a significant portion of the system in need of replacement due to aging condition and occlusion. Approximately 228 miles of line are cast iron over 40 years old. This project will replace approximately 8 miles of waterline per year with PVC pipe. Project cost: $2,000,000 annually Source of funding: Cash from Water/Wastewater Fund Total Cost 2023 Projects: $ 10,250.000 51 Page 2023 Projects cont. 2023 Fundina Summary Sales Tax Fund Cash $ 3,750,000 Property Tax Debt Financed 2025-2044 $303,000/ r 4,500,000 Enterprise Fund Cash 2,000,000 Total 2023 Projects 1 $ 10,250,000 61 Page 2024 Projects Sales Tax Projects: Hike Bike Trail Complete annual segments of the trail improvement. Completion of all trail segments is anticipated by 2025 at current rates of improvement. Project cost: $50,000 Source of funding: Sales Tax Street Surface Improvements Projects listed in Sub-CIP Project cost: $3,200,000 Funding source: Sales Tax Parks Capital Improvements Plan, Phase Four Projects to be identified through Parks Master Plan. Project cost: $500,000 Funding source: Sales Tax Total Sales Tax Cash Projects: $ 3,750,000 Enterprise Fund Proiects: Waterline Improvements The water distribution system engineering analysis identified a significant portion of the system in need of replacement due to aging condition and occlusion. Approximately 228 miles of line are cast iron over 40 years old. This project will replace approximately 8 miles of waterline per year with PVC pipe. (annual debt payment $295,000 for 20 yrs 2023-2042) Project cost: $2,000,000 annually Source of funding: Cash from Water/Wastewater Fund Total Cost 2024 Projects: $ 5.750,000 71 Page 2025 Projects Sales Tax Projects: Hike Bike Trail Complete annual segments of the trail improvement. Completion of all trail segments is anticipated by 2025 at current rates of improvement. Project cost: $50,000 Source of funding: Sales Tax Street Surface Improvements Projects listed in Sub-CIP Project cost: $3,200,000 Funding source: Sales Tax Parks Capital Improvements Plan, Phase Four Projects to be identified through Parks Master Plan. Project cost: $500,000 Funding source: Sales Tax Enterprise Fund Projects: Waterline Improvements The water distribution system engineering analysis identified a significant portion of the system in need of replacement due to aging condition and occlusion. Approximately 228 miles of line are cast iron over 40 years old. This project will replace approximately 8 miles of waterline per year with PVC pipe. (annual debt payment $295,000 for 20 yrs 2024-2043) Project cost: $2,000,000 annually Source of funding: Cash from Water/Wastewater Fund Total Cost 2025 Projects: $ 5.750,000 2025 Funding Summa Sales Tax Fund Cash $ 3,750,000 Enterprise Fund Cash 2,000,000 Total 2025 Projects $ 5,750,000 2026 Projects Sales Tax Projects: Hike Bike Trail Complete annual segments of the trail improvement. Completion of all trail segments is anticipated by 2025 at current rates of improvement. Project cost: $50,000 Source of funding: Sales Tax Street Surface Improvements Projects listed in Sub-CIP Project cost: $3,200,000 Funding source: Sales Tax Parks Capital Improvements Plan, Phase Four Projects to be identified through Parks Master Plan. Project cost: $500,000 Funding source: Sales Tax Enterprise Fund Projects: Waterline Improvements The water distribution system engineering analysis identified a significant portion of the system in need of replacement due to aging condition and occlusion. Approximately 228 miles of line are cast iron over 40 years old. This project will replace approximately 8 miles of waterline per year with PVC pipe. (annual debt payment $295,000 for 20 yrs 2024-2043) Project cost: $2,000,000 annually Source of funding: Cash from Water/Wastewater Fund Total Cost 2026 Projects: $ 5,750,000 2026 Funding Summa Sales Tax Fund Cash $ 3,750,000 Enterprise Fund Cash 2,000,000 Total 2026 Projects $ 5,750,000 91 Page Identified but Unfunded Partnership Projects Former Schilling Airforce Base Cleanup — City of Salina's portion of the Dept of Justice settlement for contamination at the former Schiling AFB. Total project costs and period of payment are unknown at this time. Cost Est. $5 to $12 million 101 Page Projects for Further Review Projects for further review are those projects that have been identified as potential needs, but which do not yet have a well-defined scope, cost estimate, or financing sources identified. Fire Station Alerting System A multi -fire station alerting system that is tied into the 911 CAD system designed to alert individual stations of emergency calls. Current system is not a complete system but rather a combination of individual systems tied together by local vendor. System has become unreliable, undependable, outdated and does not provide department with capabilities to meet its Standard of Cover metrics. Project Cost: $500,000 Funding Source: Possible American Rescue Plan Act Funding Facilities Maintenance Building The main office of the Facility Maintenance department, currently located at 420 East Ash is a 27'x48' building. This barely gives staff enough space for accomodations. The balance of the operations is spread out throughout the City in various locations. The primary function of the FM Department is to fulfill the custodial and facility needs of others. A larger location would allow for consolidation of staff and equipment into one centralized facility that would allow senior staff the ability to monitor, organize and manage all facets of the department, increasing efficiency and capacity. Project Cost: $455,000 Funding Source: Unknown General Services Building Currently located at 412 East Ash Street and corresponding Utilities and Parks and Recreation building and storage sites. Current location is undersized and conflicts with the development of the downtown River Renewal project. Project Cost: $10,000,000 Funding Source: Unknown 111 Page