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HomeMy WebLinkAbout2017-06-26 City Council Workshop PacketPPLLEEAASSEE NNOOTTEE SSTTAARRTT TTIIMMEE RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at Council Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone ’s opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other’s time keeping remarks brief, to the point and non-repetitive. AGENDA MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 5:00 P.M. Monday, June 26, 2017 City Hall, Council Chambers A.CALL TO ORDER B.ROLL CALL C.APPROVAL OF AGENDA D.UNFINISHED BUSINESS None E.NEW BUSINESS 1.Discussion of Possible Settlement with Ramsey Washington Suburban Cable Commission a.Intent to Close Meeting (§13D.05 subd. 3b) 2. 2018-2022 Capital Improvement Plan and Financial Policies F.ADJOURNMENT THIS PAGE IS INTENTIONALLY LEFT BLANK MEMORANDUM TO:City Council FROM:Melinda Coleman, City Manager Mychal Fowlds, IT Director DATE:June 19, 2017 SUBJECT:Discussion of Possible Settlement with Ramsey Washington Suburban Cable Commission a.Intent to Close Meeting (§13D.05 subd. 3b) Introduction/Background The purpose of this agenda item is to consider action for a possible settlement with the Ramsey Washington Suburban Cable Commission. The City of Maplewood left the Ramsey Washington Suburban Cable Commission effective January 1, 2016. The City and the Commission have not reached a final agreement that relates to the division of existing assets held by the Commission—the financial reserve dollars held by the Commission are substantial and in the opinion of the City represent monies paid by Comcast to the Commission but collected, pro-rata, from Maplewood citizens to which the City is entitled. Minnesota State Statute 13D.05 subd. 3b allows a public body to close a meeting if the closure is expressly authorized by statute or permitted by the attorney-client privilege. Recommendation Before the meeting is closed, the council must state on the record the specific grounds permitting the meeting to be closed and describe the subject to be discussed. Therefore, it is recommended the City Council introduce the following motion: Pursuant to Minnesota Statutes Section 13D.05,Subd. 3b, I hereby move to close the regular meeting and go into closed session to discuss negotiations and a possible settlement with the Ramsey Washington Suburban Cable Commission. Attachments Additional information will be provided at the meeting. E1 Packet Page Number 1 of 226 MEMORANDUM TO:Melinda Coleman, City Manager FROM:Ellen Paulseth, Finance Director DATE:June 26, 2017 SUBJECT:2018-2022 CIP Workshop and Financial Policies Discussion/Review Introduction The Capital Improvement Plan is an annually prepared document that coordinates the planning, financing and timing of major equipment purchases and construction projects. Proposed projects for the 2018-2022 CIP are being reviewed by the various Commissions and a public hearing on the CIP will be held at the Planning Commission meeting on July 18th at 7:00 PM. The final CIP document will be completed throughout the 2018 budget process and a copy of the CIP will be available in electronic format on the City’s webpage. The City Council will be asked to adopt the completed CIP document at the same time the 2018 budget is adopted in December. Adopting the CIP does not commit the council to the proposed projects. However, this timeframe aligns the CIP process with the annual budget process and allows for changes throughout the process. The City’s financial policies have been reviewed at a previous workshop. Council input was incorporated into the draft policies and they are attached for additional review. Background A draft of the CIP is attached to this staff report. The projects are shown by category, year and funding sources. Projects are further described on individual project pages. Department heads are available to answer questions related to the proposed projects. An analysis of debt indicates that the City can accomplish the projects contained in the plan within the City’s existing debt policy framework. The projects have been evaluated for affordability in the context of the 10-year Financial Management Plan. This is a draft document. The fire station rehabilitation projects are subject to change, depending on the outcome of the Fitch fire services study. Recommendation No action required at this time. This item is for discussion only. Council members should consider how they wish to prioritize projects contained in the plan and which projects will be appropriated for the 2018 budget year. Projects proposed for 2018 are highlighted on the next page. Attachments: 1. PowerPoint 2. Draft 2018 – 2022 Capital Improvement Plan 3. Draft Financial Policies E2 Packet Page Number 2 of 226 PROJECT DEPARTMENT PROJECT TITLE COST Buildings FD18.011 Fire Department Rehabilitation of Fire Station #3 Hazelwood $2,400,000 FD18.012 Fire Department Rehabilitation of Fire Station #2 Gladstone $2,100,000 PM18.01 Public Works Maplewood Nature Center Improvements $50,000 $4,550,000 Equipment FD18.010 Fire Department Replacement of Police & Fire 800 MHz Radios $78,300 FD18.014 Fire Department Fire Fighting Turnout Gear 57,400 FD18.017 Fire Department Ambulance Replacement 250,000 PW15.05 Public Works Wood Chipper 70,000 PW16.04 Public Works Asphalt Hot Box 40,000 PD18.010 Police Squad Replacaements 216,300 PW13.03 Public Works Single Axle Plow Truck 220,000 PW15.03 Public Works One 1/2 - Ton Truck 22,000 $954,000 Park Improvements PM07.010 Parks Park Upgrades to Existing Parks $100,000 PM08..060 Parks Open Space Improvements 110,000 PM14.020 Parks Harvest Park Upgrades 50,000 PM15.020 Parks EAB Ash Removal & Planting 100,000 PM15.430 Parks Wakefield Park Upgrades 250,000 PM16.001 Parks Park Maintenance & Reinvestment - Wakefield 1,600,000 PM18.02 Parks Edgerton Community Garden 50,000 $2,260,000 Street Improvements PW09.08 Public Works Farrell/Ferndale Area Street Improvements $7,060,000 PW09.10 Public Works Dennis/McClelland Area Street Improvements 100,000 PW15.11 Public Works Ferndale/Ivy Street Improvements 100,000 PW16.10 Public Works Mailand/Crestview Forest Area Pavement 60,000 PW16.12 Public Works London/Highpoint Area Pavement 1,010,000 PW18.12 Public Works Roselawn & Edgerton Intersection Improvements 100,000 PW14.01 Public Works Pond Clean Out/Dredging Projects 100,000 PW03.21 Public Works Lift Station Upgrades 20,000 $8,550,000 Revevelopment CD02.01 Community Dev Housing Replacaement Program 150,000 CD15.01 Community Dev Gladstone Area Redevelopment $2,000,000 $2,150,000 Total CIP Projects Year 2018 $18,464,000 Capital Improvement Projects Scheduled for 2018 E2 Packet Page Number 3 of 226 DebtE2, Attachment 1 Packet Page Number 4 of 226 Capital Improvement Plan WorkshopJune 26, 20175:00 PME2, Attachment 1 Packet Page Number 5 of 226 2018-2022 Capital Improvement Plan TimelineJune 26, 2017 CIP WorkshopJuly 18, 2017 Planning Commission HearingJuly 24, 2017 City Council HearingDecember 11, 2017 Adoption with Final Budget E2, Attachment 1 Packet Page Number 6 of 226 Purpose of the Capital Improvement PlanCapital Improvement Planning Document for 5 YearsDoes not authorize expendituresCouncil must authorize each item prior to spendingAdoption Required to Issue Debt to Finance theProjects, § M.S. 475.521 E2, Attachment 1 Packet Page Number 7 of 226 2018–2022 Capital Improvement PlanSummary of CIP Projects by CategoryCategory 2018 2019 2020 2021 2022 TotalBuildings4,550,000 881,000 269,000 265,000 469,000 6,434,000Equipment954,000 1,887,500 767,800 675,500 1,723,200 6,008,000Parks2,260,000 750,000 1,400,000 660,000 1,685,000 6,755,000Redevelopment2,150,000 2,750,000 1,350,000 0 150,000 6,400,000Streets8,550,000 7,405,000 13,760,000 22,720,000 8,250,000 60,685,000TOTAL18,464,000 13,673,500 17,546,800 24,320,500 12,277,200 86,282,000 E2, Attachment 1 Packet Page Number 8 of 226 2018-2022 Capital Improvement Plan Funding SourcesE2, Attachment 1 Packet Page Number 9 of 226 Estimated Impact of Capital Improvement Plan on City Property TaxesProperty Tax Payable Year 2018 2019 2020 2021 2022 5-YearImpact15.46%Estimated City Tax Increase(Decrease) on Average HomeEstimated Increase (Decrease)City TaxesEstimated Increase (Decrease)City Tax RateEstimated City Taxes onAverage Home46.244% 47.176% 46.010% 46.795% 46.672%0.926%-2.12%Estimated City Tax Rate$886-2.47% 1.70% -0.26%$935 $945 $991 $1,0232.02%$137$10 $49 $10 $46 $321.43% 5.49% 1.05% 4.88% 3.22% E2, Attachment 1 Packet Page Number 10 of 226 Debt Related to 2018-2022 Capital Improvement Plan$30,296,000 Total New Debt*DEBT TRANSACTIONSCURRENT YEAR AND NEXT FIVE YEARSNewLessDebtDebtDebtEscrow Net DebtYear IssuedPaid Outstanding Funds Outstanding2016 Balance Forward68,623,5300 68,623,5302017 7,370,000 (7,677,820) 68,315,710 (9,160,000) 59,155,7102018 8,363,000 (15,364,230) 61,314,480 (1,225,000) 60,089,4802019 5,840,000 (8,991,290) 58,163,1900 58,163,1902020 6,281,000 (7,093,030) 57,351,1600 57,351,1602021 3,621,000 (7,209,350) 53,762,8100 53,762,8102022 6,191,000 (6,819,730) 53,134,0800 53,134,080*Assumes alternative financing of internal chargesE2, Attachment 1 Packet Page Number 11 of 226 Debt per Capita with Capital Improvement Plan1,359 1,274 1,247 1,135 1,156 1,080 1,017 1,002 957 910 905 763 629 505 402 324 252 198 149 109 ‐200 400 600 800 1,000 1,200 1,400 1,600 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027Net Direct Per Capita with and without CIPNet Direct Debt Per Capita with CIPExisting Net Direct Debt Per CapitaE2, Attachment 1 Packet Page Number 12 of 226 Standard and Poor’s Estimated Ratings165.8%157.3%152.1%139.8%135.4%121.8%122.5%113.1%105.2%102.4% ‐ 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,0002018 2019 2020 2021 2022 2023 2024 2025 2026 2027Ratio of Governmental Funds Net Direct Debt to Total Revenue with New CIP DebtNet Direct Outstanding DebtEstimated Total Gov't Funds RevenueWeakAdequateE2, Attachment 1 Packet Page Number 13 of 226 Standard and Poor’s Estimated Ratings0%10%20%30%40%50%60%70%80%90%100%2018 2019 2020 2021 2022 2023 2024 2025 2026 202722.0%24.2%23.0%17.7%17.0%15.9%15.1%14.6%12.3%12.4%Ratio of Governmental Funds Debt Service to Expenditures with New CIP DebtAnnual Net Debt Service with CIPEstimated Total Gov't Fund ExpendituresAdequateStrongE2, Attachment 1 Packet Page Number 14 of 226 Legal Debt Limitation Calculation with Capital Improvement Plan20182019202020212022Projected market value3,780,370,150 3,874,879,404 3,971,751,389 4,090,903,931 4,213,631,048 Statutory debt limit3% of market value 113,411,105 116,246,382 119,152,542 122,727,118 126,408,931 Amount of debt applicable to debt limit:Equipment 2012A130,000 65,000 - - - CIP 2013A2,975,000 2,750,000 2,520,000 2,290,000 2,055,000 Refunding 2013B750,000 500,000 255,000 - - CIP & Equipment 2014A 2,895,000 2,725,000 2,550,000 2,365,000 2,300,000 CIP & Equipment 2015B 1,050,000 960,000 870,000 780,000 690,000 CIP & Equipment 2016A 1,590,000 1,410,000 1,230,000 1,040,000 920,000 Total debt applicable9,390,000 8,410,000 7,425,000 6,475,000 5,965,000 Legal debt margin104,021,105 107,836,382 111,727,542 116,252,118 120,443,931 December 31Projection of Legal Debt Margin For Existing City DebtFiscal YearE2, Attachment 1 Packet Page Number 15 of 226 Ten-Year Financial Outlook with Capital Improvement Plan47.25%46.24%47.18%46.01%46.79%46.67%46.90%45.89%46.20%44.98%44.76%44.01%42.00%43.00%44.00%45.00%46.00%47.00%48.00%2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027Long-Term Financial Management PlanProjected City Tax RateE2, Attachment 1 Packet Page Number 16 of 226 Ten-Year Financial Outlook with Capital Improvement Plan$874$886$935$945$991 $1,023$1,063 $1,077 $1,110 $1,118 $1,151 $1,170$0$200$400$600$800$1,000$1,200$1,4002016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027Long-Term Financial Management PlanProjected City Taxes on Median Value HomeE2, Attachment 1 Packet Page Number 17 of 226 Environmental Utility Fund Long-Term OutlookNote:  Includes 3‐5% increase in EUF fee in 2018‐2022EUF Fund2018 2019 2020 2021 2022Utility Revenues2,631,000 2,756,250 2,894,063 3,009,825 3,100,120Operating Expenses2,028,604 2,057,676 2,087,330 2,117,576 2,148,428Operating Profit (Loss) 602,396 698,574 806,733 892,249 951,692Less: Debt Service(382,390) (386,550) (384,530) (376,980) (379,700)Less: CIP Expenditures (1,706,500) (780,600) (1,532,500) (1,233,500) (927,500)Change in Net Position (1,486,494)(468,576) (1,110,297) (718,231) (355,508)Beginning Cash Position 1,413,869 502,375 608,799 73,502 (69,729)Add: Depreciation575,000 575,000 575,000 575,000 575,000Ending Cash Position 502,375 608,799 73,502 (69,729) 149,763EUF Fee - Single Family Home2017 2018 2019 2020 2021 2022Monthly$8.33$8.75 $9.17 $9.67 $10.00 $10.25Quarterly$25.00$26.25 $27.50 $29.00 $30.00 $30.75Annually$100.00$105.00 $110.00 $116.00 $120.00 $123.00 E2, Attachment 1 Packet Page Number 18 of 226 Major Projects Scheduled for 2018Hazelwood Fire Station $2,400,000Gladstone Fire Station $2,100,000Wakefield Park Facilities $1,600,000Gladstone Redevelopment $2,000,000Farrell/Ferndale Streets $7,060,000Londin/Highpoint Pavement $1,010,000 E2, Attachment 1 Packet Page Number 19 of 226 Council ConsiderationsOutstanding Debt Goals2018 Capital Improvement ProjectsRestructure Debt Policy to exclude internal chargesIncrease EUF FeeImplement Franchise Fees increase and utilize LGA tofinance internal chargesContinue to Find Efficiencies in Future BudgetsE2, Attachment 1 Packet Page Number 20 of 226 Questions?E2, Attachment 1 Packet Page Number 21 of 226 City of Maplewood Ramsey County, Minnesota 2018 – 2022 Capital Improvement Plan Adopted December 11, 2017 Prepared by the Department of Finance DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 22 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 23 of 226 TABLE OF CONTENTS Page SECTION I – INTRODUCTION Principal City Officials ............................................................................................... 1 City Manager's Letter of Transmittal ......................................................................... 2 CIP Public Improvement Project Authorization Schedule .......................................... 6 Capital Improvement Financing ................................................................................. 9 Population and Housing Statistics ........................................................................... 13 Undeveloped Land Map .......................................................................................... 14 Maplewood Neighborhoods .................................................................................... 15 SECTION II – CAPITAL IMPROVEMENT PLAN Highlights of the Capital Improvement Plan ........................................................... 16 Five-Year Capital Improvement Plan Summary ...................................................... 19 Categories of Expenditures ................................................................................ 19 Timing of Projects and Expenditures .................................................................. 20 Funding Sources ............................................................................................... 21 Tax Impact .............................................................................................................. 22 Debt Analysis .......................................................................................................... 23 Impact on Operating Budget ................................................................................... 27 Utility Funds Analysis .............................................................................................. 28 Projects by Year ...................................................................................................... 30 Projects by Department ........................................................................................... 33 Projects by Category ............................................................................................... 35 Projects by Funding Source .................................................................................... 37 SECTION III – PROJECT DETAILS Ambulance Ambulance Replacement FD18.016 .................................................................. 42 Ambulance Replacement FD18.017 ................................................................... 43 Ambulance Replacement FD18.018 .................................................................. 44 Building Maintenance Park Maintenance Building Updates MT17.01 ..................................................... 45 1902 Building Mechanical Updates MT17.05 ....................................................... 46 1902 Building Roof MT17.06 ................................................................................ 47 City Hall/Police Department Emergency Generator MT18.01 .............................. 48 1902 A/C Replacement ........................................................................................ 49 Community Development Housing Replacement Program CD02.01 ............................................................ 50 Gladstone Area Redevelopment CD15.01 ........................................................... 51 Fire Department Replacement of Police & Fire 800 MHz radios FD18-010 .................................... 52 Fire Station #3 Rehabilitation Hazelwood FD18.011 ............................................ 53 Fire Station #2 Rehabilitation Gladstone FD18.012 ............................................. 54 Replacement of Ladder Truck FD18.013 .............................................................. 55 Fire Fighting Turnout Gear FD18.014................................................................... 56 Replacement of Fire Truck FD18.015 .................................................................. 57 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 24 of 226 TABLE OF CONTENTS Page SECTION III – PROJECT DETAILS (continued) Information Technology Eden System Replacement IT15.020 ................................................................... 58 Server Storage IT16.010 ...................................................................................... 59 Parks and Recreation Park Upgrades PM07.010 .................................................................................... 60 Open Space Improvements PM08.060 ................................................................. 61 Goodrich Park PM11.020 ..................................................................................... 62 Harvest Park PM14.020 ....................................................................................... 63 Emerald Ash Borer Removal and Planting PM15.020 .......................................... 64 Wakefield Park PM15.430 .................................................................................... 65 Park Maintenance and Reinvestment PM16.001 ................................................. 66 Maplewood Nature Center Master Plan PM16.003 .............................................. 67 Maplewood Nature Center Land Acquisition PM16.004 ....................................... 68 Fish Creek Open Space PM16.005 ...................................................................... 69 Maplewood Nature Center Improvements PM18.01 ............................................. 70 Edgerton Community Garden PM18.02 ................................................................ 71 Police Department Squad Replacement PD18.010 ............................................................................ 72 Records Management System PD18.020 ............................................................ 73 Regional Police Firearms Training Range PD18.060 ........................................... 74 Public Works Department Lift Station Upgrade Program PW03.21 ............................................................... 75 Single-Axle Plow Truck PW13.03 ......................................................................... 76 Pond Cleanout/Dredging Projects PW14.01 ......................................................... 77 Single-Axle Plow Truck PW15.01 ......................................................................... 78 Water Tanker PW15.02 ........................................................................................ 79 One-Half-Ton Truck PW15.03 .............................................................................. 80 Wood Chipper PW15.05 ....................................................................................... 81 Street Sweeper PW16.02 ..................................................................................... 82 ToolCat Work Machine PW16.03 ......................................................................... 83 Asphalt Hot Box PW16.04 .................................................................................... 84 Three Tilt-Deck Trailers PW16.05 ........................................................................ 85 Tractor/Utility Machine PW17.01 .......................................................................... 86 16’ Park Mower PW17.02 ..................................................................................... 87 One and ½ Ton Utility Truck PW17.03 ................................................................. 88 Single Axle Plow Truck PW17.04 ......................................................................... 89 Asphalt Paver PW17.05 ....................................................................................... 90 Street Construction Farrell/Ferndale Area Street Improvements PW09.08 ......................................... 91 Dennis McClelland Area Street Improvements PW09.10 ..................................... 92 Sterling Street Bridge Replacement PW12.02 ...................................................... 93 White Bear Ave/I-694 Interchange Project PW15.08 ............................................ 94 Ferndale/Ivy Area Street Improvements PW15.11 ............................................... 95 Rice Street PW16.06 ............................................................................................ 96 Mailand/Crestview Forest Area Pavement PW16.10 ............................................ 97 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 25 of 226 TABLE OF CONTENTS Page SECTION III – PROJECT DETAILS (continued) Schaller Area Pavement PW16.11 ....................................................................... 98 Londin/Highpoint Area Pavement PW16.12 ......................................................... 99 Southcrest/Ferndale Area Pavement PW17.06 .................................................. 100 East Shore Drive Area Street Improvements PW17.08 ...................................... 101 Cope/McMenemy Street Improvements PW18.01 ............................................. 102 Gervais Area Pavement PW18.02 ...................................................................... 103 Roselawn and Edgerton Intersection Improvements PW18.12 .......................... 104 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 26 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 27 of 226 SECTION I INTRODUCTION DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 28 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 29 of 226 CITY OF MAPLEWOOD, MINNESOTA PRINCIPAL CITY OFFICIALS DECEMBER 11, 2017 CITY COUNCIL NORA SLAWIK, MAYOR Term Expires 12-31-2017 KATHLEEN JUENEMANN, COUNCILMEMBER MARYLEE ABRAMS, COUNCILMEMBER Term Expires 12-31-2017 Term Expires 12-31-2017 BRYAN SMITH, COUNCILMEMBER TOU XIONG, COUNCILMEMBER Term Expires 01-04-2020 Term Expires 01-04-2020 CITY MANAGERIAL STAFF Officer Position Date Appointed Melinda Coleman City Manager February 6, 2015 Mike Funk Assistant City Manager/HR Director February 23, 2015 DuWayne Konewko Director of Environmental & Economic Development May 2, 2016 Ellen Paulseth Finance Director May 2, 2016 DuWayne Konewko Director of Parks & Recreation January 1, 2011 Mychal Fowlds Director of Information Technology February 6, 2006 Andrea Sindt City Clerk August 5, 1996 Steve Lukin Fire Chief March 17, 2000 Michael Thompson Director of Public Works June 4, 2012 Kerry Crotty Acting Police Chief June 9, 2017 1 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 30 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 31 of 226 December 11, 2017 Honorable Mayor and Council Members: Introduction The 2018 – 2022 Proposed Capital Improvement Plan (CIP) for the City of Maplewood is submitted herewith. The City Manager, department heads and staff members have worked diligently to produce a document that is practical, substantive and insightful. Capital Improvement Plan Goals Acknowledge and Communicate Public Infrastructure Priorities and Dynamics; Ensure Appropriate Responses to Changing Infrastructure Needs and Demands; Develop a Financial Assessment of Capital Resources Available to Meet Future Capital Project Planning Needs; Institute a Strategic Vision Predicated on Maintaining High Quality Infrastructure Capable of Meeting the Needs of Our Citizens for Today and Tomorrow. The purpose of the City’s CIP is to identify, prioritize and address community needs through careful long-term capital planning and balanced public investment in supporting physical infrastructure. To ensure that this commitment is both meaningful and achievable, appropriate capital improvement factors were given significant consideration in developing a CIP that addresses community priorities over the next five (5) years. The CIP will also provide a planning foundation for future needs assessments to ensure the City is appropriately responding to the critical infrastructure needs necessary for sustainable future growth. The CIP represents a beginning in terms of producing a comprehensive planning response to address changing capital needs by developing a project schedule that will lead to timely and cost-effective project completions. Discussion The 2018 – 2022 CIP has been prepared as a strategic planning tool to assist the City Council in identifying proposed capital improvement projects over the next five years. With the inclusion of preliminary financing sources, and appropriate background information citing needs and projected cost estimates, this document will provide the Council with the information to begin the process for planning improvements that meet the City’s physical infrastructure needs. Consequently, the CIP serves as a flexible guide to properly identify the critical components of the City’s infrastructure, yet maintain flexibility in determining project timeframes, project scope and possible funding sources. The 2018-2022 CIP continues the emphasis of judiciously managing the City’s limited resources by prudently planning for known and/or anticipated future capital expenditures. 2 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 32 of 226 Packet Page Number 32 of 226 Capital Improvement Plan Message, continued A critical step in the plan adoption process is the collaborative nature of plan review that involves the leadership of the City Council, the input of appointed commissions and staff, and comment from the community. Consequently, the strategic value of this plan lies in the acknowledgement of future needs by the governing body and the effective communication of those needs to the general public during project development stages. Likewise, the availability and preliminary designation of fiscal resources to serve both current and future needs is critical to the achievement of plan outcomes that meet with Council approval. For major infrastructure improvements, feasibility studies are performed and affected constituencies are notified to formally disseminate and receive public feedback on proposed project plans. This process culminates with the City Council considering all relevant information and making a final decision on the proposed capital improvements. The public process that supports the advancement of these projects from inception to completion is engendered in the CIP project development and authorization schedule. Formalizing the steps in the CIP project advancement process serves a number of purposes and ensures that the Council and public are kept informed regarding project purposes and desired outcomes, estimated project costs, funding sources, progress and final status. It should be emphasized that projects will require approval in various stages of project development by the City Council in accordance with approved policies. The objectives of the 2018 – 2022 CIP are to present a comprehensive capital improvement program that communicates efforts:  To ensure that community priorities are reflected in the capital investment plans of each City department;  To provide a consolidated financial picture of anticipated expenditures and outline recommended funding strategies to underwrite anticipated capital improvements;  To document and communicate capital improvement processes for City projects that will ensure consistency, an appreciation of the costs and benefits of proposed capital investments, and raise the level of public understanding regarding the City’s public improvement processes;  To provide information on the fiscal impacts of capital investment plans on total City finances; and  To effectively plan for public improvements that support community needs in the areas of private development infrastructure, transportation, public safety, parks and recreation, utilities, and commercial/industrial growth through fiscally responsible economic development initiatives. Accordingly, this document attempts to recognize known or perceived capital improvement needs, but as with any plan recognizes that social, economic and political considerations will by necessity determine final project outcomes. The major categories of expenditures that are identified within the CIP include, but are not limited to: 1) Public Facilities; 2) Street and Utility Construction; Maintenance and Reconstruction; 3) Construction, Maintenance and Upgrades of Parks, Playgrounds and Trails; 4) Private Development Infrastructure and Redevelopment; and 5) Capital Equipment and Vehicles. 3 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 33 of 226 Capital Improvement Plan Message, continued The City Council, consequently, accepts this document with the provision that capital improvement planning is subject to the dynamics of community growth and political leadership and acknowledges that other unanticipated needs may take precedence over planned projects. Projects Major projects in the 2018 – 2022 CIP include: Equipment & Facilities Facility Maintenance and Upgrades Fire Station Rehabilitation Fire Truck Replacements Ambulance Replacements Fleet Replacements Technology Upgrades Police and Fire 800 MHz Radio Replacements Police Records Management System Lift Station Upgrades Regional Police Firearms Training Range Street Improvements Farrell/Ferndale Area Street Improvements Dennis/McClelland Area Street Improvements Ferndale/Ivy Area Street Improvements East Shore Drive Area Street Improvements Mailand/Crestview Forest Area Pavement Schaller Area Pavement Londin/Highpoint Area Pavement Southcrest/Ferndale Area Pavement Cope/McMenemy Street Improvements Gervais Area Pavement Roselawn & Edgerton Intersection Improvements Sterling Street Bridge Replacement Rice Street Project (County is lead agency) White Bear Ave/I694 Interchange Project (County is lead agency) Parks Nature Center Upgrades Master Plan Park Maintenance Community Center Improvements Open Space Improvements Park Improvements Emerald Ash Borer Removal and Planting Economic Development Gladstone Area Redevelopment Housing Replacement Program 4 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 34 of 226 Capital Improvement Plan Message, continued Recommendation The 2018 – 2022 CIP is the product of collaborative planning efforts by City staff and City consultants, City commissions, and the City Council. Projects have been introduced based on anticipated future growth trends articulated in the City’s Comprehensive Plan and engineered improvements in the established areas of the community, and capital deficiencies or infrastructure issues brought to the City’s attention through a variety of sources. Capital expenditures identified within the CIP are the best estimates available, and once the CIP is adopted, will be reviewed and confirmed through individual feasibility reports. We are appreciative of the commitment, good judgement and expertise that each department has contributed to the capital improvement planning process. We recommend adoption of the 2018 – 2022 Capital Improvement Plan to ensure that the City’s infrastructure, facility and equipment needs will be met. Melinda Coleman City Manager 5 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 35 of 226 CIP Public Improvement Project Authorization Schedule The following process is a guideline for authorizing public improvement projects. The process is controlled by Minnesota statutes and community factors. It is, therefore, subject to change. It should be viewed as a guide to assist the City Council and public in understanding the public improvement process used by City staff. City Council action will facilitate each step in the process. As a result, the process time frame is a significant factor affecting the ability of City staff to properly manage and complete approved Council ordered projects within budget and in a timely manner. 1.Council approval of annual CIP projects and City Council resolution ordering preparation of feasibility study will authorize the following: a. Staff and/or consultant preparation of project feasibility studies; b. Staff preparation of detailed financial review of estimated project costs and funding sources; c. Neighborhood meeting may be held prior to feasibility study, subject to need and type of project. Time Frame: June – July 2. Presentation of feasibility study: a. Feasibility study components: i. Review of project scope, preliminary engineering design elements and construction costs; ii. Estimated total project costs, including engineering, administrative, legal and fiscal expenses; iii. Project financial plan/fiscal implications; iv. Preliminary assessment roll, if any, for the public hearing. b. City Council will consider acceptance of feasibility study, and adopt a resolution “Accepting Feasibility Study and Setting Date of Public Hearing on the Project.” Adoption of the resolution initiates the following: i. Notices are mailed to affected residents, per statutory requirements, no less than ten days before public hearing; ii. Public hearing notice is published. Two publications, one week apart, with the second publication no less than three days before the hearing. iii. Staff and/or consultants prepare project plans and specifications. Time Frame: September – November 3.Neighborhood meeting: a. City staff will hold neighborhood project meetings, when appropriate, to review and present project feasibility studies, answer questions and meet with affected property owners. These meetings will include a question and answer component designed specifically to bring awareness to the property owner, obtain citizen input and produce an understanding of the purpose behind the proposed public improvement. 6 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 36 of 226 Capital Improvement Plan Project Authorization Schedule, continued Time Frame: Following the City Council approval to prepare the feasibility study, but prior to the public hearing. 4. City Council holds a public hearing, when appropriate, for the following purposes: a. Presentation of project; b. Presentation of preliminary special assessment rolls and financing implications; c. To hear affected resident input; d. City Council determines whether to order the public improvement. e. A City Council resolution is drafted “Ordering the Project and Authorizing Preparation of Plans and Specifications.” The City Council may order the improvement after the public hearing is closed or at a subsequent Council meeting within 6 months of the public hearing date. By statutory requirement, the City Council resolution ordering the project must be approved on a 4/5 Council vote if it is a project with special assessments. If the City Council rejects the project as presented, a Council vote should determine the final status of the project. Time Frame: November – January 5. Plans and specifications are presented to City Council for approval: a. A City Council resolution is drafted authorizing the following: i. Accepting and approving project plans and specifications; ii. Authorizing the advertisement for project bids. Bids are developed and an invitation to bid is processed. Bid opening date is no less than 3 weeks after publication; iii. Authorizing the preparation of assessment roll; iv. Authorizing staff to pursue an appropriate funding mechanism to underwrite project costs. Time Frame: February – March 6. Assessment roll presented to City Council for approval: a. A City Council resolution is drafted authorizing the following: i. Approval of the preliminary assessment roll; ii. Ordering assessment hearing. Time Frame: February – March 7. City Council acceptance of project bids, award of contracts, and assessment public hearing: a. Affected property owners are officially notified, per Minnesota Statutes, no less than two weeks prior to special assessment hearing; b. Public notice is published no less than two weeks prior to the special assessment hearing, per Minnesota Statutes; c. Staff presents the assessment roll and City Council approves the final assessment roll. 7 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 37 of 226 Capital Improvement Plan Project Authorization Schedule, continued d. All assessment appeals and requested deferrals received prior to the close of the assessment public hearing will be reviewed by staff and brought back to Council with recommendations at a subsequent meeting; e. A City Council resolution is drafted “Accepting Project Bids and Awarding Contracts,” f. Project and construction work begins. Time Frame: March – May 8. City Council considers assessment appeals and requested deferrals and approval of revised assessment roll: a. Council consideration of assessment appeals and requested deferrals filed prior to close of the assessment public hearing; b. A City Council resolution “Adopting Revised Special Assessment Roll” is considered and adopted; c. All actions meet Minnesota Statutes Chapter 429 legal requirements. Time Frame: March – May 9. Project completion is demonstrated by: a. Council acceptance of the project; b. Final presentation and review of project costs vs. project budget. Time Frame: Upon completion of the project 8 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 38 of 226 Capital Improvement Financing Introduction: Implementing capital improvements requires the utilization of sound, economical financing methods. The City of Maplewood has several financing mechanisms available, ranging from cash reserves to special-purpose funds to borrowing through the issuance of municipal bonds. The financing plan for each improvement is based on the policies of the jurisdictions participating in the project and legal requirements. The final selection and scheduling of proposed capital improvements is based on the ability of the City to secure an appropriate financing plan. The total cost for each project includes construction costs, administrative costs and interest. Several funding sources may be used for a given project. The financial viability of each of the projects in the 2018–2022 CIP was analyzed against the following available financing mechanisms: Bonds and Notes: Capital Equipment Notes – these notes are backed by the full faith and credit of the City and are subject to the City’s legal debt limitation. The notes can be used to purchase public safety equipment, ambulance and other medical equipment, road construction and maintenance equipment, and other capital equipment having an expected useful life at least as long as the term of the notes. The notes usually mature in five years, but can be issued for terms of up to ten years. Capital Improvement Bonds – these General Obligation bonds are backed by the full faith and credit of the City and are subject to the City’s debt limit. They are issued to finance infrastructure and facility improvement projects in the City’s Capital Improvement Plan. Due to a statutory requirement, the bonds must be approved by a three-fifths vote of the City Council. The statute also limits the total amount of principal and interest due in any year on all CIP bonds issued by the City to not exceed .16% of the estimated market value of all property in the City. CIP bonds are also subject to a reverse referendum requirement. General Obligation Bonds – These bonds are backed by the full faith and credit of the City and are all, or partly, supported by tax levies. Bonds that are more than 80% supported by tax levies require voter approval prior to issuance. General Obligation Improvement Bonds – these bonds are similar to General Obligation Bonds except they do not require voter approval for issuance because the bonds include only the portion of the public improvement project that is not assessed to property owners. At least 20% of the project cost must be assessed to issue these bonds. 9 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 39 of 226 Capital Improvement Financing, continued Municipal State Aid Bonds - these bonds are issued to finance improvements to municipal state-aid streets. Under state law, future allotments of state street aid are pledged to pay the principal and interest on the bonds. The bonds are also backed by the full faith and credit of the city. Special Assessment Bonds - these bonds, backed by the full faith and credit of the City, are payable from special assessment charges made to property owners who benefit from public improvements. Under state law, special assessment bonds can be issued without voter approval provided that at least 20% of the improvement cost has been assessed. Tax Abatement Bonds – these bonds can be issued to finance public infrastructure, public facilities including parks and recreational facilities, as well as development and redevelopment projects. The benefited project or infrastructure does not need to be on or adjacent to the parcel for which taxes are being abated. The maximum principal amount of tax abatement bonds may not exceed the estimated sum of the abatements for the property for the years authorized. These bonds are excluded from the calculation of the net debt limit. Tax Increment Bonds – these bonds can be issued for housing, economic development, construction of public facilities or infrastructure and redevelopment of blighted areas. The bonds can be revenue bonds or general obligation and are not subject to referendum approval. The bonds are not subject to the City’s legal debt limitation. City Funds: Ambulance Service Fund –this fund accounts for customer service charges that are used to finance emergency medical services. Capital Improvement Projects Fund – this fund was established to finance major capital outlay expenditures, through a property tax levy, that cannot be easily financed by alternative revenue sources. It is referred to as the CIP Fund. Economic Development Authority Fund – this fund was established to finance activities of the Maplewood Area Economic Development Authority. Environmental Utility Fund – this fund was established to finance maintenance and improvements to the storm water utility system. Revenues for the fund are generated by a utility charge for surface water runoff. Fire Truck Replacement Fund – this fund was established to finance purchases of fire apparatus. Property taxes are levied annually to fund the purchases. Fleet Management Fund – this fund accounts for operating expenses of public works vehicles and major equipment. These operating expenses, including depreciation, are used as a basis to establish rental rates for departments using the vehicles. These procedures result in a cash reserve for capital replacement. 10 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 40 of 226 Capital Improvement Financing, continued General Building Replacement Fund – this fund was established to provide a funding mechanism for the replacement and/or rehabilitation of City buildings. Property taxes are levied annually for this fund. General Fund – this fund accounts for all financial resources except those required to be accounted for in another fund. The fund accounts for the majority of the City’s operating budget. Information Technology Fund – accounts for the maintenance, repair, and operation of the city’s computer hardware and software. North St. Paul WAC Fund - this fund accounts for revenue from water connection charges and a water surcharge that is paid by the owners of property that receive water from the City of North St. Paul. These revenues are used to finance water system costs that cannot be assessed. Park Development Fund – this fund accounts for the receipt and disbursement of park availability charges PAC. These charges are levied against all new buildings constructed and are paid when the building permit is issued. PAC revenues on residential buildings can only be spent on park developments within the same neighborhood. Commercial PAC revenues can be spent on any park development. Police Department Squad/Equipment Replacement Fund – this fund is being established to finance squad and major equipment expenditures related to the Police Department. Property taxes are levied annually for this fund. Police Services Fund – this fund accounts for money that is legally restricted for police services. Most of the revenues are from the sale of forfeited property. Redevelopment Fund – this fund accounts for activities related to redevelopment and housing rehabilitation and replacement. Sewer Fund – this fund accounts for customer sanitary sewer service charges that are used to finance the sanitary sewer system operating expenses. St. Paul Water Fund – this fund accounts for charges collected by the St. Paul Regional Water Services on behalf of the City of Maplewood. St. Paul Water Availability Charge Fund – this fund accounts for revenue from water connection charges and a water surcharge that is paid by the owners of property that receive water from St. Paul Regional Water Services. These revenues are used to finance water system costs that cannot be assessed. Street Light Utility Fund – this fund accounts for franchise taxes established through a franchise agreement with electricity providers. Customers pay a tax with their electric bills, which is provided to the City for the use on street light, power system and traffic control systems. 11 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 41 of 226 Capital Improvement Financing, continued Street User Revitalization Fund – this fund accounts for franchise taxes established through a franchise agreement with gas providers. Customers pay a tax with their gas bills, which is provided to the City. The City uses the fees to fund street projects. Tree Preservation Fund – developers who are unable to comply with city policies on tree preservation may be allowed to deposit funds for furtherance of city tree goals in other parts of the city. Other Agencies: Little Canada – When roads on the border between Maplewood and Little Canada are improved, the two governments jointly finance the cost of the improvement. MnDOT – a portion of public works improvement costs on State-Aid roads are paid by the Minnesota Department of Transportation. North St. Paul – when roads on the border between Maplewood and North St. Paul are improved, the two governments jointly finance the cost of the improvement. Oakdale – when roads on the border between Maplewood and Oakdale are improved, the two governments jointly finance the cost of the improvement. Ramsey County – when county roads within the city are improved, the cost of the improvements is jointly financed by the two governments. RWMWD – a portion of public works improvement costs that are paid by the Ramsey Washington Metro Watershed District. State Aid – refers to money received from the state for street construction projects. State aid allotments for street construction are based on two factors: population and fiscal need. Fiscal need is determined by the estimated costs of construction and maintenance of the city’s state aid streets over 25 years. Other Sources of Revenue: Sale of Property – the portion of the costs of a project or improvement that are paid for with the proceeds of the sale of other City assets. Grants – Grants and contributions are occasionally received from other sources, usually state or federal agencies. The City Council approves the receipt of grants and contributions. 12 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 42 of 226 Maplewood Population and Housing Statistics Sources: Metropolitan Council and Maplewood Staff ESTIMATED POPULATION NEW OCCUPIED YEAR POPULATION GAIN (LOSS) DWELLING UNITS HOUSEHOLD UNITS 2009 37,755 1,038 20 15,094 2010 38,018 263 16 14,882 2011 38,374 356 16 15,033 2012 39,065 691 20 15,168 2013 38,950 (115)23 15,289 2014 39,054 104 25 15,243 2015 39,742 688 82 15,325 2016 40,234 492 335 15,660 2017 40,726 492 335 15,995 2018 41,218 492 335 16,330 2019 41,710 492 335 16,665 2020 42,200 490 335 17,000 2021 42,675 475 330 17,330 2022 43,005 330 127 17,457 13 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 43 of 226 Undeveloped Landin Maplewood Commercial Property Residential Property Mixed Use Property 14 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 44 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 45 of 226 15 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 46 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 47 of 226 SECTION II CAPITAL IMPROVEMENT PLAN DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 48 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 49 of 226 Highlights of the Capital Improvement Plan Maplewood’s Capital Improvement Plan for 2018 - 2022 contains a total of $86,282,000 in improvements, rehabilitation, and equipment. Many items are routine in nature and others represent significant investments in the community. These betterments are designed to enhance the quality of life and well-being of Maplewood residents. Major highlights of the 2018 – 2022 CIP are as follows: Farrell/Ferndale Area Street Improvements - $7,590,000 The Farrell/Ferndale Area streets, located east of 3M and south of Minnehaha Avenue, will be fully reconstructed in 2018. The project will include the replacement of the road pavement, installation of concrete curb and gutter, expansion of storm water facilities, sanitary sewer and water main repairs, and pedestrian improvements. The following streets are included in the project: Margaret Ave, 5th Ave, Fremont Ave, Farrell St, Ferndale St, Conway Service Dr, Mayhill Rd and 7th St. The project includes 2.0 miles of street, with an average PCI rating of 30/100. Ferndale/Ivy Area Street Improvements - $3,580,000 The Ferndale/Ivy Area streets, located north of Maryland Avenue and west of Century Avenue will be fully reconstructed in 2019 including the replacement of the road pavement, installation of concrete curb and gutter, expansion of storm water facilities, sanitary sewer and water main repairs, and pedestrian improvements. Streets in the project area include Dennis Street, Farrell Street, Ferndale Street, Hawthorne Avenue, Ivy Avenue and Mayhill Road. A regional drainage/hydraulic study will be completed prior to the feasibility study in 2017. Identified flood remediation work will be incorporated into the street improvement project. The project includes a total of 1.2 miles of street, with an average PCI rating of 43/100. Dennis/McClelland Area Street Improvements - $7,060,000 The Dennis/McClelland Area streets will be fully reconstructed in 2020, including replacement of road pavement, installation of curb and gutter, expansion of storm water facilities, sanitary sewer and water main repairs, and pedestrian improvements. The following streets are included in the project: Sterling St, James Drive, McClelland St, Ferndale St, Dennis Ln, O'Day St, Mayer Ln, Farrell St, and Mayhill Rd. Storm water treatment methods will be studied in 2018 for the area near Battle Creek. The project includes 2.1 miles of streets, with an average PCI rating of 31/100. 16 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 50 of 226 Capital Improvement Plan Highlights, continued East Shore Drive Area Street Improvements - $4,820,000 The East Shore Drive Area streets, lying north of Lake Phalen will be be fully reconstructed in 2021. The project will include the replacement of the road pavement, installation of concrete curb and gutter, expansion of storm water facilities, sanitary sewer repairs, water main repairs and pedestrian improvements. The following streets are included in the project area: Adele Street, Gordon Avenue, Ripley Avenue, Sophia Avenue, Walter Street, Fenton Avenue, and Phalen Place. This project has 2.05 miles of street, with an average PCI rating of 39/100. Cope/McMenemy Street Improvements - $6,960,000 Cope Avenue will be partially reconstructed in 2022, including the replacement of road pavement, expansion of storm water facilities, sanitary sewer repairs, water main repairs, and pedestrian improvements. McMenemy Street will be fully reconstructed in 2022, including the replacement of road pavement, installation of concrete curb and gutter, expansion of storm water facilities, sanitary sewer repairs, water main repairs, and pedestrian improvements. The new design for the east section of Cope Avenue aligns with the City's Living Streets Policy requirements. This project has 2.08 miles of streets, with an average PCI rating of 53/100. Gladstone Area Redevelopment - $5,950,000 Specific properties in the Gladstone area have been identified for redevelopment, contingent on available funding. The City will facilitate the acquisition and redevelopment of the properties in accordance with the approved Gladstone Master Plan and the City's Comprehensive Plan. Phase 1 and 2 street, landscape and roadway improvements have been completed. Phase 3 public improvements are scheduled for completion in 2023. The final phase will include funding for the acquisition of property for redevelopment. 17 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 51 of 226 Capital Improvement Plan Highlights, continued Park Maintenance and Reinvestment - $6,755,000 The City of Maplewood adopted a Parks System Master Plan, giving specific priorities to improvements in the parks system. As part of this process, $7,000,000 in maintenance and improvements were identified as high priority and essential to the future health of the parks system. These improvements will help fulfill the community’s goals of "Take Care of What We Have". The projects included in this CIP are: Wakefield Building Replacement, Meeting Rooms and Parking (2018); Sherwood Park Replacement, Hazelwood Building Replacement, Hazelwood Playground Replacement, and Hazelwood Field Improvements (2020). Future projects will be decided at a later date. Rehabilitation of Gladstone and Hazelwood Fire Stations - $4,300,000 The City will remodel Gladstone Fire Station #2 and Hazelwood Fire Station #3 to improve energy efficiencies and provide additional storage and sleeping quarters. In 2011, the city council approved a restructuring of the fire department, resulting in a reduction in the number of fire stations from five to three. In order to better serve the community, one new station was built in the middle of the city's southern leg. The remaining stations will be remodeled at their current locations to meet fire prevention and protection needs into the future. 18 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 52 of 226 Five-Year Capital Improvement Plan Summary Categories of Expenditures Street construction is the largest expenditure category in the five-year CIP. All streets in the CIP have a Pavement Condition Index (PCI) of 50 or below. All but one street in the plan is rated below 43, which involves total reconstruction of the street. It is the goal of the City to maintain the streets in adequate condition, to avoid a total reconstruction scenario. However, the City is catching up on deferred maintenance from prior years. Building improvements include maintenance and mechanical updates to municipal facilities and the Maplewood Community Center. Although the YMCA is operating the community center, the City is responsible for a large portion of the capital improvements. The equipment category includes public works equipment, fire apparatus, squad cars, city vehicles, technology equipment, and lift station equipment. Summary of CIP Projects by Category Category 2018 2019 2020 2021 2022 Total Buildings 4,550,000 881,000 269,000 265,000 469,000 6,434,000 Equipment 954,000 1,887,500 767,800 675,500 1,723,200 6,008,000 Parks 2,260,000 750,000 1,400,000 660,000 1,685,000 6,755,000 Redevelopment 2,150,000 2,750,000 1,350,000 0 150,000 6,400,000 Streets 8,550,000 7,405,000 13,760,000 22,720,000 8,250,000 60,685,000 TOTAL 18,464,000 13,673,500 17,546,800 24,320,500 12,277,200 86,282,000 19 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 53 of 226 Packet Page Number 53 of 226 Capital Improvement Plan Five-Year Summary, continued Timing of Projects and Expenditures The projects and equipment in the five-year CIP have been staged appropriately to align with the affordability and debt parameters set by the City Council. Many projects are being financed with non-property tax revenue sources, such as grants, state aid, and special assessments. Therefore, a large amount in a given year does not necessarily equate to an increase in property taxes. Through long-term financial planning, the City strives to minimize impact on local property taxes. Many projects are contingent on availability of outside funding sources, including some economic development opportunities and cooperative road improvement projects, and will be prioritized as necessary. Each project has a financing plan. A review of funding sources is important in the context of total expenditures. The total amount of capital expenditures included in the five-year plan is $86,282,000. All projects and expenditures are subject to approval and annual appropriation by the City Council, as well as City purchasing policies, capital expenditure policies, City ordinances, and State law. Summary of CIP Expenditures by Year 20 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 54 of 226 Capital Improvement Plan Five-Year Summary, continued Funding Sources A variety of funding sources will be utilized to fund the projects and expenditures. It is estimated that nearly 41% of the CIP will be financed with debt. General Obligation Bonds will be issued to fund the large street and facility projects. Intergovernmental revenue includes state, federal, and local government grants, and will fund an estimated 30% of the projects included in the CIP. Existing fund balances in the enterprise funds will finance nearly 13% of the projects in total. These funds are primarily utility funds, including water, sewer, and environmental funds, and will provide funding for the respective utility component of major street improvement projects. Governmental funds include capital project and special revenue type funds. Capital project funds contain money that has been set aside for a capital expenditure, such as the purchase of fire trucks and squad cars and pavement overlays. Special revenue funds also account for special revenue streams, such as water surcharges, that accumulate for a specific purpose. Existing fund balances in these funds will finance approximately 12% of the CIP expenditures. Other revenue sources include the sale of capital assets. The City often trades in old equipment or sells it at auction. The proceeds are utilized to purchase new equipment. Summary of CIP Funding Sources 21 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 55 of 226 Property Tax Impact General Obligation Bonds will be issued to finance major improvements included in the five-year CIP. The annual debt payments will be serviced through property tax levies in the appropriate year. Annual property tax levies will be required to fund a majority of the equipment over the five year period. An analysis of future property tax levies was undertaken in the CIP process. Estimated property tax levies for new CIP debt and CIP expenditures are shown below: Planned Tax Levies for CIP Expenditures The City maintains a ten-year long term financial management plan. Projected CIP expenditures are incorporated into the plan. Various assumptions are utilized to project the property tax impact of current financial decisions for the ten-year period. For instance, the City estimates the growth in the tax base and makes conservative assumptions about inflation and interest rates on potential new debt. In our analysis, we have assumed that home values will continue to increase moderately. Tax rates will trend downward; however, property taxes will rise at a modest rate due to inflation in the value of homes. Estimated Impact on City Property Taxes 2018 2019 2020 2021 2022 Total Debt Service Principal Payments -260,000 810,000 1,320,000 1,670,000 4,060,000 Capital Improvement Projects: Building Replacement 50,000 50,000 50,000 50,000 50,000 250,000 Fire Equipment -60,000 60,000 60,000 60,000 240,000 Fleet Management 352,000 383,000 410,000 376,000 -1,521,000 IT 50,000 300,000 110,000 50,000 50,000 560,000 Police Equipment 216,300 216,300 216,300 216,300 216,300 1,081,500 CIP Fund 178,300 375,900 231,500 233,200 234,900 1,253,800 Maplewood Community Center 100,000 200,000 200,000 200,000 200,000 200,000 Redevelopment Fund 25,000 25,000 25,000 25,000 25,000 25,000 TOTAL CIP TAX LEVY 971,600 1,870,200 2,112,800 2,530,500 2,506,200 9,191,300 2018 2019 2020 2021 2022 5-Year Impact 1.43% 5.49% 1.05% 4.88% 3.22% $137 $10 $49 $10 $46 $32 -2.47% 1.70% -0.26% $935 $945 $991 $1,023 2.02% 15.46% Estimated City Tax Increase (Decrease) on Average Home Estimated Increase (Decrease) City Taxes Estimated Increase (Decrease) City Tax Rate Estimated City Taxes on Average Home 46.244% 47.176% 46.010% 46.795% 46.672%0.926% -2.12% Estimated City Tax Rate $886 22 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 56 of 226 Debt Analysis During the preparation of the Capital Improvement Plan, the City's present and future debt capacity was evaluated to ensure that the financing plan is sustainable and meets all legal requirements. Our analysis includes a projection of future debt transactions, population changes, tax base growth, debt ratios, and a ten-year cash flow analysis of the utility funds. The analysis was done with the City’s bond rating in mind. Bond Rating The City’s AA+ bond rating from Standard & Poor’s Investor Services is based on local and regional economic factors, demographics, debt structure, management performance, and financial condition. The bond rating is the most important factor in obtaining a favorable interest rate. Standard & Poor’s utilizes two quantitative measures for analyzing the City’s debt burden. They are: 1) total governmental funds debt service as a percent of expenditures; and 2) net direct governmental funds debt as a percentage of total revenue. The City strives to achieve an “Adequate” or better rating from the rating agency on both measures. As a result of our analysis, we believe the projected debt ratios related to the CIP will not adversely impact Maplewood’s bond rating. Utilizing Standard & Poor’s ratio #1, the following chart illustrates the impact of the 2018- 2027 CIP debt on the “Adequate” Standard & Poor’s rating. The analysis contains assumptions about the level of future expenditures and reflects additional debt related to the CIP: 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 22.0%24.2%23.0%17.7%17.0%15.9%15.1%14.6%12.3%12.4% Ratio of Governmental Funds Debt Service to  Expenditures with New CIP Debt Annual Net Debt Service with CIP Estimated Total Gov't Fund Expenditures Adequate Strong 23 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 57 of 226 Capital Improvement Plan Debt Analysis, continued The City has a “Weak” rating on Standard & Poor’s ratio #2, however, this factor is not weighted heavily enough to impact the City’s bond rating, given the City’s healthy overall financial picture. The City is working on restructuring its debt policy to reach the goal of an “Adequate” rating sooner. The following chart illustrates the impact of the new CIP debt on ratio #2, using inflationary assumptions about future total revenues: Since 2010, Maplewood has received either an “Aa1” rating from Moody’s Investors Service or an “AA+” rating from Standard and Poor’s Investor Rating Service. Prior to that, the City maintained an “Aa2” rating with Moody’s Investors Service, which is comparable to a rating of “AA+” from Standard and Poor’s. Moody’s cited continued growth and diversification of the City’s economy, the strength and long-term stability of the tax base, and well maintained finances as rationale for the rating upgrade. Debt Capacity The City utilizes additional measures to compare relative debt burdens, including the amount of debt per capita and the ratio of debt to tax base. The 2018-2022 CIP will require the issuance of $35,291,561 in additional debt to finance the projects and expenditures. The debt will be serviced with tax levies, special assessments, municipal state aid, tax increment, and tax abatement levies. The City analyzed the additional proposed debt in the context of these additional measures. The City’s outstanding debt burden will continue to decrease over the five-year CIP period, due to rapid amortization of existing debt principal. The City’s projected debt profile, including the projected new CIP debt, for the next five years is shown below: 165.8% 157.3% 152.1% 139.8%135.4% 121.8%122.5%113.1%105.2%102.4%  ‐  10,000,000  20,000,000  30,000,000  40,000,000  50,000,000  60,000,000  70,000,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Ratio of Governmental Funds Net Direct Debt to  Total  Revenue with New CIP Debt Net Direct Outstanding Debt Estimated Total Gov't Funds Revenue Weak Adequate  24 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 58 of 226 Capital Improvement Plan Debt Analysis, continued The City monitors the amount of debt per capita as an indicator of financial health. Population projections provided by the Metropolitan Council and City staff were utilized to project Net Direct Debt per Capita. Net Direct Debt includes outstanding debt, net of funds held in escrow for refunding outstanding principal on the call date of the issue. The impact of the 2018 – 2027 CIP on the debt per capita is shown below: 1,359  1,274 1,247  1,135 1,156  1,080 1,017 1,002 957 910 905 763  629  505  402  324  252  198 149  109  ‐ 200  400  600  800  1,000  1,200  1,400  1,600  2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Net Direct Per Capita with and without CIP Net Direct Debt Per Capita with CIP Existing Net Direct Debt Per Capita 25 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 59 of 226 Capital Improvement Plan Debt Analysis, continued The City monitors the ratio of debt to the estimated market value of the City’s tax base. Future market values are projected based on assumptions about inflation, the current housing market and new construction. The following chart illustrates the ratio. Legal Debt Limitation Minnesota Statutes limit the City’s outstanding net debt to 3.0% of the estimated market value of taxable property in the City. However, there are many exceptions. Most of the City’s debt is not subject to the limitation. The difference between the statutory debt limit and the debt subject to the legal debt limitation is referred to as the legal debt margin. The table below shows Maplewood’s legal debt margin for the years 2018-2022. 1.4% 1.1% 1.0% 0.8% 0.6% 0.5% 0.4%0.3%0.2%0.2% 1.6% 1.5%1.4% 1.3%1.3% 1.1%1.1% 1.0%0.9%0.9% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 RATIO OF DEBT TO MARKET VALUE 2018 TO 2027 - with projected CIP and without CIP MAPLEWOOD-CURRENT MAPLEWOOD-PROJECTED 2018 2019 2020 2021 2022 Projected market value 3,780,370,150 3,874,879,404 3,971,751,389 4,090,903,931 4,213,631,048 Statutory debt limit 3% of market value 113,411,105 116,246,382 119,152,542 122,727,118 126,408,931 Amount of debt applicable to debt limit: Equipment 2012A 130,000 65,000 - - - CIP 2013A 2,975,000 2,750,000 2,520,000 2,290,000 2,055,000 Refunding 2013B 750,000 500,000 255,000 - - CIP & Equipment 2014A 2,895,000 2,725,000 2,550,000 2,365,000 2,300,000 CIP & Equipment 2015B 1,050,000 960,000 870,000 780,000 690,000 CIP & Equipment 2016A 1,590,000 1,410,000 1,230,000 1,040,000 920,000 Total debt applicable 9,390,000 8,410,000 7,425,000 6,475,000 5,965,000 Legal debt margin 104,021,105 107,836,382 111,727,542 116,252,118 120,443,931 December 31 Projection of Legal Debt Margin For Existing City Debt Fiscal Year 26 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 60 of 226 Impact on Operating Budget Identifying potential costs associated with implementation of the proposed capital improvement projects is a critical aspect of long-term financial planning. Many of the projects included in the Capital Improvement Plan will have little or no impact on the operating budget. Each individual project page identifies budgetary impact by project, however, many are insignificant in the context of the operating budget. Generally, equipment replacement items will have a positive impact on future operating budgets due to lower maintenance costs. There are no items new to the fleet included in the CIP. Likewise, building maintenance and upgrades will generally have a positive impact on the budget. Specifically, significant energy savings is associated with the fire department rehabilitation projects. Finally, street improvement projects result in substantial savings per mile in maintenance costs. Deferring maintenance on streets in need of improvement will most likely result in higher reconstruction costs in the long run. The projects listed below will have a notable effect on future operating budgets. Specific projects include: 2018 Projects: Emerald Ash Borer Removal and Planting The eradication of the Emerald Ash Borer in Maplewood represents a sizeable commitment to the ongoing maintenance of the City’s ash trees. Removal and replacement of the City’s 2037 ash trees is estimated to cost between $1.4 and $1.8 million. A tax levy of $100,000 in 2018 and $150,000 in future years through 2030 is reflected in the CIP in future years. Park Maintenance and Reinvestment – Wakefield Park Improvements The City’s Parks System Master Plan identified needs in several of the City’s parks, including Wakefield. A new community building and parking facilities will be constructed at Wakefield, beginning in 2018. Ongoing maintenance and utilities for the building and grounds is expected to be around $20,000 per year. 2019 Projects: Software Replacements and Upgrades The replacement of Eden systems will involve slightly higher annual maintenance fees. The move to more current technology is estimated to involve an additional annual commitment of under $10,000. Regional Police Firearms Training Range The construction of the jointly owned training range over the next five years will also involve a future commitment to the maintenance and upkeep of the facility. The ongoing costs have not yet been identified, as the City is currently still in the planning stages with several other East Metro communities. 27 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 61 of 226 Utility Funds Analysis The City has Water, Sanitary Sewer, and Storm Water Utility Funds that help support CIP projects. The City utilizes a ten-year financial management plan to help schedule projects efficiently. An estimated five-year cash flow analysis on each utility fund is shown below: Environmental Utility Fund (EUF) - The analysis for the EUF includes a 3% - 5% inflationary increase in fees each year. These increases are necessary to avoid projected liquidity problems in several years. If the City does not fund the commitments related to projects in this fund, it may be necessary to issue bonds for this component of some of the projects. This fund finances storm water treatment improvements and provides educational resources. St. Paul Water Area Charge (WAC) Fund – This fund finances improvements to the City’s water infrastructure, through a surcharge on water bills. The analysis assumes increases due to system expansion only. The St. Paul WAC Fund is well positioned to fund the CIP projects and meet its other obligations over the five-year period, as shown below: EUF Fund 2018 2019 2020 2021 2022 Utility Revenues 2,631,000 2,756,250 2,894,063 3,009,825 3,100,120 Operating Expenses 2,028,604 2,057,676 2,087,330 2,117,576 2,148,428 Operating Profit (Loss) 602,396 698,574 806,733 892,249 951,692 Less: Debt Service (382,390) (386,550) (384,530) (376,980) (379,700) Less: CIP Expenditures (1,706,500) (780,600) (1,532,500) (1,233,500) (927,500) Change in Net Position (1,486,494) (468,576) (1,110,297) (718,231) (355,508) Beginning Cash Position 1,413,869 502,375 608,799 73,502 (69,729) Add: Depreciation 575,000 575,000 575,000 575,000 575,000 Ending Cash Position 502,375 608,799 73,502 (69,729) 149,763 St. Paul WAC Fund 2018 2019 2020 2021 2022 Utility Revenues 442,000 464,200 477,404 488,612 490,824 Operating Expenses 7,500 7,650 7,803 7,959 8,118 Operating Profit (Loss) 434,500 456,550 469,601 480,653 482,706 Less: Debt Service (44,620) (44,090) (43,430) (42,670) (41,830) Less: CIP Expenditures (303,100) (138,900) (297,500) (362,900) (329,900) Change in Net Position 86,780 273,560 128,671 75,083 110,976 Beginning Cash Position 1,222,028 1,308,808 1,582,368 1,711,039 1,786,122 Ending Cash Position 1,308,808 1,582,368 1,711,039 1,786,122 1,897,098 28 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 62 of 226 Capital Improvement Plan – Utility Funds Analysis, continued The Sanitary Sewer Fund – The Sewer Fund provides the resources for sewer operations and capital improvements to the sewer system. It is funded with user charges, area charges, and connection fees. There are no increases in user charges planned for 2018, however, a 2% inflationary charge is included in the remaining later years. The Sewer Fund is healthy and can accommodate the planned CIP improvements. Street Light Utility Fund – This fund is used to finance street lighting improvements and repairs. It derives revenue from an electric franchise fee of $1.25 per household. There are no projects planned for the five-year CIP because the fund currently has a negative cash flow. The City Council is considering an increase in the amount of the franchise fee for 2018. The fund will have a positive balance by 2020 without the increase: Street Improvement Fund – this fund finances street improvements that are not paid for through the special assessment process. It is funded through a gas franchise fee in the amount of $2.50 per household, which provides about $480,000 in revenue per year. The City uses these funds for street overlay projects. An analysis is not included because all projects are subject to available revenues. The funds are typically depleted on an annual basis. Sewer Fund 2018 2019 2020 2021 2022 Utility Revenues 5,055,000 5,155,300 5,257,606 5,361,958 5,468,397 Operating Expenses 4,913,447 5,005,682 5,097,896 5,191,954 5,287,893 Operating Profit (Loss) 141,554 149,618 159,710 170,005 180,505 Less: Debt Service (249,590) (350,480) (237,120) (136,020) (132,450) Less: CIP Expenditures (623,100) (323,500) (480,500) (555,900) (565,900) Change in Net Position (731,137) (524,362) (557,910) (521,915) (517,845) Beginning Cash Position 4,739,145 4,401,179 4,271,816 4,108,907 3,981,991 Add: Depreciation 393,170 395,000 395,000 395,000 395,000 Ending Cash Position 4,401,179 4,271,816 4,108,907 3,981,991 3,859,146 Street Light Utility Fund 2018 2019 2020 2021 2022 Utility Revenues 490,000 480,000 480,000 480,000 484,000 Operating Expenses 260,000 265,200 270,504 275,914 281,432 Operating Profit (Loss) 230,000 214,800 209,496 204,086 202,568 Less: Debt Service - - - - - Less: CIP Expenditures - - - - - Change in Net Position 230,000 214,800 209,496 204,086 202,568 Beginning Cash Position (135,761) 94,239 309,039 518,535 722,621 Ending Cash Position 94,239 309,039 518,535 722,621 925,189 29 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 63 of 226 Capital Improvement Plan City of Maplewood, Minnesota PROJECTS BY YEAR 2018 2022thru Project Name Department Project # Priority Project Cost 2018 FD18.017Ambulance Replacement 2 250,000Ambulance CD02.01Housing Replacement Program 2 150,000EEDD CD15.01Gladstone Area Redevelopment 1 2,000,000EEDD FD18.010Replacement of Police & Fire 800 MHZ Radios 1 78,300Fire Department FD18.011Rehabilitation of Fire Station #3 Hazelwood 2 2,400,000Fire Department FD18.012Rehabilitation of Fire Station #2 Gladstone 2 2,100,000Fire Department FD18.014Fire Fighting Turn Out Gear 1 57,400Fire Department PM07.010Park Upgrades to Existing Parks 3 100,000Parks and Recreation PM08.060Open Space Improvements 3 110,000Parks and Recreation PM14.020Harvest Park 3 50,000Parks and Recreation PM15.020EAB Ash Removal and Planting 1 100,000Parks and Recreation PM15.430Wakefield Park 3 250,000Parks and Recreation PM16.001Park Maintenance and Re-Investment 3 1,600,000Parks and Recreation PM18.01Maplewood Nature Center Improvements 3 50,000Parks and Recreation PM18.02Edgerton Community Garden 2 50,000Parks and Recreation PD18.010Squad Replacement 1 216,300Police Department PW03.21Lift Station Upgrade Program 2 20,000Public Works PW13.03Single-Axle Plow Truck 2 220,000Public Works PW14.01Pond Clean Out/Dredging Projects 3 100,000Public Works PW15.03One 1/2-Ton Truck 3 22,000Public Works PW15.05Wood Chipper 3 70,000Public Works PW16.04Asphalt Hot Box 3 40,000Public Works PW09.08Farrell/Ferndale Area Street Improvements 1 7,060,000Street Department PW09.10Dennis/McClelland Area Street Improvements 1 100,000Street Department PW15.11Ferndale/Ivy Area Street Improvements 1 100,000Street Department PW16.10Mailand/Crestview Forest Area Pavement 1 60,000Street Department PW16.12Londin/Highpoint Area Pavement 1 1,010,000Street Department PW18.12Roselawn & Edgerton Intersection Improvements 1 100,000Street Department 18,464,000Total for 2018 2019 FD18.016Ambulance Replacement 2 255,000Ambulance MT17.01Park Maintenance Building Updates 3 146,000Building Maintenance MT17.061902 Building Roof 3 410,000Building Maintenance CD15.01Gladstone Area Redevelopment 1 2,750,000EEDD FD18.010Replacement of Police & Fire 800 MHZ Radios 1 79,900Fire Department FD18.014Fire Fighting Turn Out Gear 1 58,300Fire Department FD18.015Replacement of Fire Truck 2 645,000Fire Department IT15.020Eden System replacement 2 250,000IT PM07.010Park Upgrades to Existing Parks 3 100,000Parks and Recreation PM08.060Open Space Improvements 3 250,000Parks and Recreation PM15.020EAB Ash Removal and Planting 1 150,000Parks and Recreation PM16.005Fish Creek Open Space 3 250,000Parks and Recreation PM18.01Maplewood Nature Center Improvements 3 125,000Parks and Recreation 30 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 64 of 226 Project Name Department Project # Priority Project Cost PD18.010Squad Replacement 1 216,300Police Department PD18.060Regional Police Firearms Training Range 3 200,000Police Department PW03.21Lift Station Upgrade Program 2 20,000Public Works PW15.01Single-Axle Plow Truck 2 220,000Public Works PW16.03ToolCat Work Machine 3 58,000Public Works PW16.05Three Tilt-Deck Trailers 3 30,000Public Works PW17.01Tractor/Utility Machine 3 75,000Public Works PW09.10Dennis/McClelland Area Street Improvements 1 100,000Street Department PW12.02Sterling Street Bridge Replacement 1 1,300,000Street Department PW15.11Ferndale/Ivy Area Street Improvements 1 3,630,000Street Department PW16.10Mailand/Crestview Forest Area Pavement 1 1,340,000Street Department PW16.11Schaller Area Pavement 1 60,000Street Department PW18.12Roselawn & Edgerton Intersection Improvements 1 955,000Street Department 13,673,500Total for 2019 2020 MT18.01City Hall/Police Department Emergency Generator 3 69,000Building Maintenance CD02.01Housing Replacement Program 2 150,000EEDD CD15.01Gladstone Area Redevelopment 1 1,200,000EEDD FD18.010Replacement of Police & Fire 800 MHZ Radios 1 81,500Fire Department IT16.010Server Storage 2 60,000IT PM07.010Park Upgrades to Existing Parks 3 100,000Parks and Recreation PM08.060Open Space Improvements 3 25,000Parks and Recreation PM11.020Goodrich Park 3 50,000Parks and Recreation PM15.020EAB Ash Removal and Planting 1 150,000Parks and Recreation PM16.001Park Maintenance and Re-Investment 3 1,000,000Parks and Recreation PM16.003Maplewood Nature Center Master Plan 3 75,000Parks and Recreation PD18.010Squad Replacement 1 216,300Police Department PD18.060Regional Police Firearms Training Range 3 200,000Police Department PW03.21Lift Station Upgrade Program 2 20,000Public Works PW14.01Pond Clean Out/Dredging Projects 3 100,000Public Works PW15.02Water Tanker 2 110,000Public Works PW16.02Street Sweeper 3 210,000Public Works PW17.0216' Park Mower 3 90,000Public Works PW09.10Dennis/McClelland Area Street Improvements 1 6,530,000Street Department PW16.06Rice Street 2 5,460,000Street Department PW16.11Schaller Area Pavement 1 1,490,000Street Department PW17.06Southcrest/Ferndale Area Pavement 1 60,000Street Department PW17.08East Shore Drive Area Street Improvements 1 100,000Street Department 17,546,800Total for 2020 2021 MT18.021902 A/C Replacement 3 65,000Building Maintenance FD18.010Replacement of Police & Fire 800 MHZ Radios 1 83,200Fire Department PM07.010Park Upgrades to Existing Parks 3 110,000Parks and Recreation PM08.060Open Space Improvements 3 150,000Parks and Recreation PM11.020Goodrich Park 3 250,000Parks and Recreation PM15.020EAB Ash Removal and Planting 1 150,000Parks and Recreation PD18.010Squad Replacement 1 216,300Police Department PD18.060Regional Police Firearms Training Range 3 200,000Police Department PW03.21Lift Station Upgrade Program 2 20,000Public Works PW17.031 1/2-Ton Utility Truck 3 90,000Public Works PW17.04Single-Axle Plow Truck 2 230,000Public Works PW17.05Asphalt Paver 2 56,000Public Works PW15.08White Bear Ave / I694 Interchange Project 2 15,500,000Street Department 31 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 65 of 226 Project Name Department Project # Priority Project Cost PW17.06Southcrest/Ferndale Area Pavement 1 1,670,000Street Department PW17.08East Shore Drive Area Street Improvements 1 5,370,000Street Department PW18.01Cope/McMenemy Street Improvements 1 100,000Street Department PW18.02Gervais Area Pavement 1 60,000Street Department 24,320,500Total for 2021 2022 FD18.018Ambulance Replacement 2 272,000Ambulance MT17.051902 Building Mechanical Updates 3 269,000Building Maintenance CD02.01Housing Replacement Program 2 150,000EEDD FD18.010Replacement of Police & Fire 800 MHZ Radios 1 84,900Fire Department FD18.013Replacement of Ladder Truck 2 900,000Fire Department PM07.010Park Upgrades to Existing Parks 3 110,000Parks and Recreation PM08.060Open Space Improvements 3 25,000Parks and Recreation PM11.020Goodrich Park 3 50,000Parks and Recreation PM14.020Harvest Park 3 50,000Parks and Recreation PM15.020EAB Ash Removal and Planting 1 150,000Parks and Recreation PM16.001Park Maintenance and Re-Investment 3 1,000,000Parks and Recreation PM16.004Maplewood Nature Center Land Acquisition 3 300,000Parks and Recreation PD18.010Squad Replacement 1 216,300Police Department PD18.020Records Management System 3 250,000Police Department PD18.060Regional Police Firearms Training Range 3 200,000Police Department PW03.21Lift Station Upgrade Program 2 20,000Public Works PW18.01Cope/McMenemy Street Improvements 1 6,860,000Street Department PW18.02Gervais Area Pavement 1 1,370,000Street Department 12,277,200Total for 2022 GRAND TOTAL 86,282,000 32 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 66 of 226 Capital Improvement Plan City of Maplewood, Minnesota PROJECTS BY DEPARTMENT 2018 2022thru Total2018 2019 2020 2021 2022DepartmentProject# Priority Ambulance FD18.016 255,000255,000Ambulance Replacement 2 FD18.017 250,000250,000Ambulance Replacement 2 FD18.018 272,000272,000Ambulance Replacement 2 777,000250,000 255,000 272,000Ambulance Total Building Maintenance MT17.01 146,000146,000Park Maintenance Building Updates 3 MT17.05 269,000269,0001902 Building Mechanical Updates 3 MT17.06 410,000410,0001902 Building Roof 3 MT18.01 69,00069,000City Hall/Police Department Emergency Generator 3 MT18.02 65,00065,0001902 A/C Replacement 3 959,000556,000 69,000 65,000 269,000Building Maintenance Total EEDD CD02.01 450,000150,000 150,000 150,000Housing Replacement Program 2 CD15.01 5,950,0002,000,000 2,750,000 1,200,000Gladstone Area Redevelopment 1 6,400,0002,150,000 2,750,000 1,350,000 150,000EEDD Total Fire Department FD18.010 407,80078,300 79,900 81,500 83,200 84,900Replacement of Police & Fire 800 MHZ Radios 1 FD18.011 2,400,0002,400,000Rehabilitation of Fire Station #3 Hazelwood 2 FD18.012 2,100,0002,100,000Rehabilitation of Fire Station #2 Gladstone 2 FD18.013 900,000900,000Replacement of Ladder Truck 2 FD18.014 115,70057,400 58,300Fire Fighting Turn Out Gear 1 FD18.015 645,000645,000Replacement of Fire Truck 2 6,568,5004,635,700 783,200 81,500 83,200 984,900Fire Department Total IT IT15.020 250,000250,000Eden System replacement 2 IT16.010 60,00060,000Server Storage 2 310,000250,000 60,000IT Total Parks and Recreation PM07.010 520,000100,000 100,000 100,000 110,000 110,000Park Upgrades to Existing Parks 3 PM08.060 560,000110,000 250,000 25,000 150,000 25,000Open Space Improvements 3 PM11.020 350,00050,000 250,000 50,000Goodrich Park 3 PM14.020 100,00050,000 50,000Harvest Park 3 PM15.020 700,000100,000 150,000 150,000 150,000 150,000EAB Ash Removal and Planting 1 PM15.430 250,000250,000Wakefield Park 3 PM16.001 3,600,0001,600,000 1,000,000 1,000,000Park Maintenance and Re-Investment 3 PM16.003 75,00075,000Maplewood Nature Center Master Plan 3 33 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 67 of 226 Total2018 2019 2020 2021 2022Department Project# Priority PM16.004 300,000300,000Maplewood Nature Center Land Acquisition 3 PM16.005 250,000250,000Fish Creek Open Space 3 PM18.01 175,00050,000 125,000Maplewood Nature Center Improvements 3 PM18.02 50,00050,000Edgerton Community Garden 2 6,930,0002,310,000 875,000 1,400,000 660,000 1,685,000Parks and Recreation Total Police Department PD18.010 1,081,500216,300 216,300 216,300 216,300 216,300Squad Replacement 1 PD18.020 250,000250,000Records Management System 3 PD18.060 800,000200,000 200,000 200,000 200,000Regional Police Firearms Training Range 3 2,131,500216,300 416,300 416,300 416,300 666,300Police Department Total Public Works PW03.21 100,00020,000 20,000 20,000 20,000 20,000Lift Station Upgrade Program 2 PW13.03 220,000220,000Single-Axle Plow Truck 2 PW14.01 200,000100,000 100,000Pond Clean Out/Dredging Projects 3 PW15.01 220,000220,000Single-Axle Plow Truck 2 PW15.02 110,000110,000Water Tanker 2 PW15.03 22,00022,000One 1/2-Ton Truck 3 PW15.05 70,00070,000Wood Chipper 3 PW16.02 210,000210,000Street Sweeper 3 PW16.03 58,00058,000ToolCat Work Machine 3 PW16.04 40,00040,000Asphalt Hot Box 3 PW16.05 30,00030,000Three Tilt-Deck Trailers 3 PW17.01 75,00075,000Tractor/Utility Machine 3 PW17.02 90,00090,00016' Park Mower 3 PW17.03 90,00090,0001 1/2-Ton Utility Truck 3 PW17.04 230,000230,000Single-Axle Plow Truck 2 PW17.05 56,00056,000Asphalt Paver 2 1,821,000472,000 403,000 530,000 396,000 20,000Public Works Total Street Department PW09.08 7,060,0007,060,000Farrell/Ferndale Area Street Improvements 1 PW09.10 6,730,000100,000 100,000 6,530,000Dennis/McClelland Area Street Improvements 1 PW12.02 1,300,0001,300,000Sterling Street Bridge Replacement 1 PW15.08 15,500,00015,500,000White Bear Ave / I694 Interchange Project 2 PW15.11 3,730,000100,000 3,630,000Ferndale/Ivy Area Street Improvements 1 PW16.06 5,460,0005,460,000Rice Street 2 PW16.10 1,400,00060,000 1,340,000Mailand/Crestview Forest Area Pavement 1 PW16.11 1,550,00060,000 1,490,000Schaller Area Pavement 1 PW16.12 1,010,0001,010,000Londin/Highpoint Area Pavement 1 PW17.06 1,730,00060,000 1,670,000Southcrest/Ferndale Area Pavement 1 PW17.08 5,470,000100,000 5,370,000East Shore Drive Area Street Improvements 1 PW18.01 6,960,000100,000 6,860,000Cope/McMenemy Street Improvements 1 PW18.02 1,430,00060,000 1,370,000Gervais Area Pavement 1 PW18.12 1,055,000100,000 955,000Roselawn & Edgerton Intersection Improvements 1 60,385,0008,430,000 7,385,000 13,640,000 22,700,000 8,230,000Street Department Total GRAND TOTAL 86,282,00018,464,000 13,673,500 17,546,800 24,320,500 12,277,200 34 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 68 of 226 Capital Improvement Plan City of Maplewood, Minnesota PROJECTS BY CATEGORY 2018 2022thru Total2018 2019 2020 2021 2022CategoryProject# Priority Buildings FD18.011 2,400,0002,400,000Rehabilitation of Fire Station #3 Hazelwood 2 FD18.012 2,100,0002,100,000Rehabilitation of Fire Station #2 Gladstone 2 MT17.01 146,000146,000Park Maintenance Building Updates 3 MT17.05 269,000269,0001902 Building Mechanical Updates 3 MT17.06 410,000410,0001902 Building Roof 3 MT18.01 69,00069,000City Hall/Police Department Emergency Generator 3 MT18.02 65,00065,0001902 A/C Replacement 3 PD18.060 800,000200,000 200,000 200,000 200,000Regional Police Firearms Training Range 3 PM18.01 175,00050,000 125,000Maplewood Nature Center Improvements 3 6,434,0004,550,000 881,000 269,000 265,000 469,000Buildings Total Equipment FD18.010 407,80078,300 79,900 81,500 83,200 84,900Replacement of Police & Fire 800 MHZ Radios 1 FD18.013 900,000900,000Replacement of Ladder Truck 2 FD18.014 115,70057,400 58,300Fire Fighting Turn Out Gear 1 FD18.015 645,000645,000Replacement of Fire Truck 2 FD18.016 255,000255,000Ambulance Replacement 2 FD18.017 250,000250,000Ambulance Replacement 2 FD18.018 272,000272,000Ambulance Replacement 2 PD18.020 250,000250,000Records Management System 3 3,095,500385,700 1,038,200 81,500 83,200 1,506,900Equipment Total Equipment: Computers IT15.020 250,000250,000Eden System replacement 2 IT16.010 60,00060,000Server Storage 2 310,000250,000 60,000Equipment: Computers Total Equipment: PW Equip PW15.02 110,000110,000Water Tanker 2 PW15.05 70,00070,000Wood Chipper 3 PW16.02 210,000210,000Street Sweeper 3 PW16.03 58,00058,000ToolCat Work Machine 3 PW16.04 40,00040,000Asphalt Hot Box 3 PW16.05 30,00030,000Three Tilt-Deck Trailers 3 PW17.01 75,00075,000Tractor/Utility Machine 3 PW17.02 90,00090,00016' Park Mower 3 PW17.05 56,00056,000Asphalt Paver 2 739,000110,000 163,000 410,000 56,000Equipment: PW Equip Total Park Improvements PM07.010 520,000100,000 100,000 100,000 110,000 110,000Park Upgrades to Existing Parks 3 PM08.060 560,000110,000 250,000 25,000 150,000 25,000Open Space Improvements 3 35 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 69 of 226 Total2018 2019 2020 2021 2022CategoryProject# Priority PM11.020 350,00050,000 250,000 50,000Goodrich Park 3 PM14.020 100,00050,000 50,000Harvest Park 3 PM15.020 700,000100,000 150,000 150,000 150,000 150,000EAB Ash Removal and Planting 1 PM15.430 250,000250,000Wakefield Park 3 PM16.001 3,600,0001,600,000 1,000,000 1,000,000Park Maintenance and Re-Investment 3 PM16.003 75,00075,000Maplewood Nature Center Master Plan 3 PM16.004 300,000300,000Maplewood Nature Center Land Acquisition 3 PM16.005 250,000250,000Fish Creek Open Space 3 PM18.02 50,00050,000Edgerton Community Garden 2 6,755,0002,260,000 750,000 1,400,000 660,000 1,685,000Park Improvements Total Redevelopment CD02.01 450,000150,000 150,000 150,000Housing Replacement Program 2 CD15.01 5,950,0002,000,000 2,750,000 1,200,000Gladstone Area Redevelopment 1 6,400,0002,150,000 2,750,000 1,350,000 150,000Redevelopment Total Street Construction PW09.08 7,060,0007,060,000Farrell/Ferndale Area Street Improvements 1 PW09.10 6,730,000100,000 100,000 6,530,000Dennis/McClelland Area Street Improvements 1 PW12.02 1,300,0001,300,000Sterling Street Bridge Replacement 1 PW15.08 15,500,00015,500,000White Bear Ave / I694 Interchange Project 2 PW15.11 3,730,000100,000 3,630,000Ferndale/Ivy Area Street Improvements 1 PW16.06 5,460,0005,460,000Rice Street 2 PW16.10 1,400,00060,000 1,340,000Mailand/Crestview Forest Area Pavement 1 PW16.11 1,550,00060,000 1,490,000Schaller Area Pavement 1 PW16.12 1,010,0001,010,000Londin/Highpoint Area Pavement 1 PW17.06 1,730,00060,000 1,670,000Southcrest/Ferndale Area Pavement 1 PW17.08 5,470,000100,000 5,370,000East Shore Drive Area Street Improvements 1 PW18.01 6,960,000100,000 6,860,000Cope/McMenemy Street Improvements 1 PW18.02 1,430,00060,000 1,370,000Gervais Area Pavement 1 PW18.12 1,055,000100,000 955,000Roselawn & Edgerton Intersection Improvements 1 60,385,0008,430,000 7,385,000 13,640,000 22,700,000 8,230,000Street Construction Total Utilities PW03.21 100,00020,000 20,000 20,000 20,000 20,000Lift Station Upgrade Program 2 PW14.01 200,000100,000 100,000Pond Clean Out/Dredging Projects 3 300,000120,000 20,000 120,000 20,000 20,000Utilities Total Vehicles PD18.010 1,081,500216,300 216,300 216,300 216,300 216,300Squad Replacement 1 PW13.03 220,000220,000Single-Axle Plow Truck 2 PW15.01 220,000220,000Single-Axle Plow Truck 2 PW15.03 22,00022,000One 1/2-Ton Truck 3 PW17.03 90,00090,0001 1/2-Ton Utility Truck 3 PW17.04 230,000230,000Single-Axle Plow Truck 2 1,863,500458,300 436,300 216,300 536,300 216,300Vehicles Total GRAND TOTAL 86,282,00018,464,000 13,673,500 17,546,800 24,320,500 12,277,200 36 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 70 of 226 Capital Improvement Plan City of Maplewood, Minnesota PROJECTS BY FUNDING SOURCE 2018 2022thru TotalSourceProject# Priority 2018 2019 2020 2021 2022 Ambulance Fund FD18.016 255,000255,000Ambulance Replacement 2 FD18.017 250,000250,000Ambulance Replacement 2 FD18.018 272,000272,000Ambulance Replacement 2 777,000250,000 255,000 272,000Ambulance Fund Total Bonds GO CIP CD15.01 5,950,0002,000,000 2,750,000 1,200,000Gladstone Area Redevelopment 1 FD18.011 400,000400,000Rehabilitation of Fire Station #3 Hazelwood 2 FD18.012 700,000700,000Rehabilitation of Fire Station #2 Gladstone 2 MT17.05 269,000269,0001902 Building Mechanical Updates 3 MT17.06 410,000410,0001902 Building Roof 3 MT18.01 69,00069,000City Hall/Police Department Emergency Generator 3 MT18.02 65,00065,0001902 A/C Replacement 3 PD18.060 800,000200,000 200,000 200,000 200,000Regional Police Firearms Training Range 3 8,663,0003,100,000 3,360,000 1,469,000 265,000 469,000Bonds GO CIP Total Bonds GO Improvement PW09.08 3,128,3003,128,300Farrell/Ferndale Area Street Improvements 1 PW09.10 2,857,500100,000 2,757,500Dennis/McClelland Area Street Improvements 1 PW15.11 2,039,310100,000 1,939,310Ferndale/Ivy Area Street Improvements 1 PW17.08 2,563,400100,000 2,463,400East Shore Drive Area Street Improvements 1 PW18.01 3,635,660100,000 3,535,660Cope/McMenemy Street Improvements 1 14,224,1703,228,300 2,039,310 2,857,500 2,563,400 3,535,660Bonds GO Improvement Total Bonds GO Special Assessment PW09.08 838,700838,700Farrell/Ferndale Area Street Improvements 1 PW09.10 1,010,5001,010,500Dennis/McClelland Area Street Improvements 1 PW15.11 524,790524,790Ferndale/Ivy Area Street Improvements 1 PW16.10 699,660699,660Mailand/Crestview Forest Area Pavement 1 PW16.11 793,500793,500Schaller Area Pavement 1 PW16.12 494,868494,868Londin/Highpoint Area Pavement 1 PW17.06 738,300738,300Southcrest/Ferndale Area Pavement 1 PW17.08 693,400693,400East Shore Drive Area Street Improvements 1 PW18.01 995,540995,540Cope/McMenemy Street Improvements 1 PW18.02 1,030,1331,030,133Gervais Area Pavement 1 7,819,3911,333,568 1,224,450 1,804,000 1,431,700 2,025,673Bonds GO Special Assessment Total Bonds MSA 37 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 71 of 226 TotalSourceProject# Priority 2018 2019 2020 2021 2022 PW12.02 115,000115,000Sterling Street Bridge Replacement 1 115,000115,000Bonds MSA Total Bonds Tax Abatement PM07.010 520,000100,000 100,000 100,000 110,000 110,000Park Upgrades to Existing Parks 3 PM11.020 350,00050,000 250,000 50,000Goodrich Park 3 PM16.001 3,600,0001,600,000 1,000,000 1,000,000Park Maintenance and Re-Investment 3 4,470,0001,700,000 100,000 1,150,000 360,000 1,160,000Bonds Tax Abatement Total CIP Fund FD18.010 407,80078,300 79,900 81,500 83,200 84,900Replacement of Police & Fire 800 MHZ Radios 1 MT17.01 146,000146,000Park Maintenance Building Updates 3 PM15.020 700,000100,000 150,000 150,000 150,000 150,000EAB Ash Removal and Planting 1 1,253,800178,300 375,900 231,500 233,200 234,900CIP Fund Total City of Roseville PW16.06 200,000200,000Rice Street 2 200,000200,000City of Roseville Total City of St. Paul Water Dept PW09.08 798,000798,000Farrell/Ferndale Area Street Improvements 1 PW09.10 742,000742,000Dennis/McClelland Area Street Improvements 1 PW15.11 96,90096,900Ferndale/Ivy Area Street Improvements 1 PW17.08 307,200307,200East Shore Drive Area Street Improvements 1 PW18.01 682,800682,800Cope/McMenemy Street Improvements 1 2,626,900798,000 96,900 742,000 307,200 682,800City of St. Paul Water Dept Total City of White Bear Lake PW15.08 500,000500,000White Bear Ave / I694 Interchange Project 2 500,000500,000City of White Bear Lake Total Environmental Utility Fund PW09.08 1,453,0001,453,000Farrell/Ferndale Area Street Improvements 1 PW09.10 1,455,000100,000 1,355,000Dennis/McClelland Area Street Improvements 1 PW14.01 200,000100,000 100,000Pond Clean Out/Dredging Projects 3 PW15.11 710,600710,600Ferndale/Ivy Area Street Improvements 1 PW16.10 70,00070,000Mailand/Crestview Forest Area Pavement 1 PW16.11 77,50077,500Schaller Area Pavement 1 PW16.12 53,50053,500Londin/Highpoint Area Pavement 1 PW17.06 86,50086,500Southcrest/Ferndale Area Pavement 1 PW17.08 1,147,0001,147,000East Shore Drive Area Street Improvements 1 PW18.01 856,000856,000Cope/McMenemy Street Improvements 1 PW18.02 71,50071,500Gervais Area Pavement 1 6,180,6001,706,500 780,600 1,532,500 1,233,500 927,500Environmental Utility Fund Total 38 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 72 of 226 TotalSourceProject# Priority 2018 2019 2020 2021 2022 Federal Grants PW18.12 679,500679,500Roselawn & Edgerton Intersection Improvements 1 679,500679,500Federal Grants Total Fire Equipment Fund FD18.013 900,000900,000Replacement of Ladder Truck 2 FD18.014 115,70057,400 58,300Fire Fighting Turn Out Gear 1 FD18.015 645,000645,000Replacement of Fire Truck 2 1,660,70057,400 703,300 900,000Fire Equipment Fund Total Fleet Management Fund PW13.03 220,000220,000Single-Axle Plow Truck 2 PW15.01 220,000220,000Single-Axle Plow Truck 2 PW15.02 110,000110,000Water Tanker 2 PW15.03 22,00022,000One 1/2-Ton Truck 3 PW15.05 70,00070,000Wood Chipper 3 PW16.02 210,000210,000Street Sweeper 3 PW16.03 58,00058,000ToolCat Work Machine 3 PW16.04 40,00040,000Asphalt Hot Box 3 PW16.05 30,00030,000Three Tilt-Deck Trailers 3 PW17.01 75,00075,000Tractor/Utility Machine 3 PW17.02 90,00090,00016' Park Mower 3 PW17.03 90,00090,0001 1/2-Ton Utility Truck 3 PW17.04 230,000230,000Single-Axle Plow Truck 2 PW17.05 56,00056,000Asphalt Paver 2 1,521,000352,000 383,000 410,000 376,000Fleet Management Fund Total Gas Franchise Fee PW16.10 546,34060,000 486,340Mailand/Crestview Forest Area Pavement 1 PW16.11 586,00060,000 526,000Schaller Area Pavement 1 PW16.12 397,432397,432Londin/Highpoint Area Pavement 1 PW17.06 801,40060,000 741,400Southcrest/Ferndale Area Pavement 1 PW18.02 242,56760,000 182,567Gervais Area Pavement 1 2,573,739457,432 546,340 586,000 801,400 182,567Gas Franchise Fee Total IT Fund IT15.020 250,000250,000Eden System replacement 2 IT16.010 60,00060,000Server Storage 2 PD18.020 250,00050,000 50,000 50,000 50,000 50,000Records Management System 3 560,00050,000 300,000 110,000 50,000 50,000IT Fund Total Municipal State Aid PW15.08 500,000500,000White Bear Ave / I694 Interchange Project 2 PW16.06 200,000200,000Rice Street 2 PW18.12 187,75050,000 137,750Roselawn & Edgerton Intersection Improvements 1 39 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 73 of 226 TotalSourceProject# Priority 2018 2019 2020 2021 2022 887,75050,000 137,750 200,000 500,000Municipal State Aid Total Park Improvement Fund PM08.060 560,000110,000 250,000 25,000 150,000 25,000Open Space Improvements 3 PM14.020 100,00050,000 50,000Harvest Park 3 PM15.430 125,000125,000Wakefield Park 3 PM16.003 75,00075,000Maplewood Nature Center Master Plan 3 PM16.004 300,000300,000Maplewood Nature Center Land Acquisition 3 PM16.005 100,000100,000Fish Creek Open Space 3 PM18.01 175,00050,000 125,000Maplewood Nature Center Improvements 3 PM18.02 50,00050,000Edgerton Community Garden 2 1,485,000385,000 475,000 100,000 150,000 375,000Park Improvement Fund Total Police Equipment Fund PD18.010 1,081,500216,300 216,300 216,300 216,300 216,300Squad Replacement 1 1,081,500216,300 216,300 216,300 216,300 216,300Police Equipment Fund Total Proceeds from Sale Property FD18.011 2,000,0002,000,000Rehabilitation of Fire Station #3 Hazelwood 2 FD18.012 1,400,0001,400,000Rehabilitation of Fire Station #2 Gladstone 2 3,400,0003,400,000Proceeds from Sale Property Total Ramsey County PM16.005 150,000150,000Fish Creek Open Space 3 PW15.08 14,500,00014,500,000White Bear Ave / I694 Interchange Project 2 PW16.06 5,060,0005,060,000Rice Street 2 PW18.12 187,75050,000 137,750Roselawn & Edgerton Intersection Improvements 1 19,897,75050,000 287,750 5,060,000 14,500,000Ramsey County Total Redevelopment Fund CD02.01 450,000150,000 150,000 150,000Housing Replacement Program 2 450,000150,000 150,000 150,000Redevelopment Fund Total Sanitary Sewer Fund PW03.21 100,00020,000 20,000 20,000 20,000 20,000Lift Station Upgrade Program 2 PW09.08 571,000571,000Farrell/Ferndale Area Street Improvements 1 PW09.10 414,000414,000Dennis/McClelland Area Street Improvements 1 PW15.11 261,500261,500Ferndale/Ivy Area Street Improvements 1 PW16.10 42,00042,000Mailand/Crestview Forest Area Pavement 1 PW16.11 46,50046,500Schaller Area Pavement 1 PW16.12 32,10032,100Londin/Highpoint Area Pavement 1 PW17.06 51,90051,900Southcrest/Ferndale Area Pavement 1 PW17.08 484,000484,000East Shore Drive Area Street Improvements 1 PW18.01 503,000503,000Cope/McMenemy Street Improvements 1 PW18.02 42,90042,900Gervais Area Pavement 1 40 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 74 of 226 TotalSourceProject# Priority 2018 2019 2020 2021 2022 2,548,900623,100 323,500 480,500 555,900 565,900Sanitary Sewer Fund Total State Grants PW12.02 1,185,0001,185,000Sterling Street Bridge Replacement 1 1,185,0001,185,000State Grants Total Water - WAC Fund PW09.08 271,000271,000Farrell/Ferndale Area Street Improvements 1 PW09.10 251,000251,000Dennis/McClelland Area Street Improvements 1 PW15.11 96,90096,900Ferndale/Ivy Area Street Improvements 1 PW16.10 42,00042,000Mailand/Crestview Forest Area Pavement 1 PW16.11 46,50046,500Schaller Area Pavement 1 PW16.12 32,10032,100Londin/Highpoint Area Pavement 1 PW17.06 51,90051,900Southcrest/Ferndale Area Pavement 1 PW17.08 275,000275,000East Shore Drive Area Street Improvements 1 PW18.01 287,000287,000Cope/McMenemy Street Improvements 1 PW18.02 42,90042,900Gervais Area Pavement 1 1,396,300303,100 138,900 297,500 326,900 329,900Water - WAC Fund Total Watershed District PM15.430 125,000125,000Wakefield Park 3 125,000125,000Watershed District Total 86,282,00018,514,000 13,723,500 17,596,800 24,370,500 12,077,200GRAND TOTAL 41 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 75 of 226 SECTION III PROJECT DETAILS DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 76 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 77 of 226 Ambulance Service DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 78 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 79 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Modular ALS Ambulance Project #FD18.016 Priority 2 Very Important Justification Replacement of a 2009 Ford Road Rescue ambulance. At the time this ambulance is replaced, it will have approximately 200,000 miles on it. The repair and maintenance costs of this ambulance will become significant over the next few years. Currently we have one of our ambulances down for some type of repair weekly. We are also very concerned that due to the age and the condition of these vehicles, we could develop a breakdown causing a delay in our response time or when transporting a patient to a hospital. Our plan is to utilize three ambulances and one spare. Replacement schedule would be one ambulance every two to three years. Budget Impact/Other We anticipate lower maintenance and operating costs, due to the efficiencies achieved with newer equipment. Useful Life 15 years Project Name Ambulance Replacement Category Equipment Type Equipment Contact Fire Chief Department Ambulance Total Project Cost:$255,000 Total2018 2019 2020 2021 2022Expenditures 255,000255,000Equip/Vehicles/Furnishings 255,000 255,000Total Total2018 2019 2020 2021 2022Funding Sources 255,000255,000Ambulance Fund 255,000 255,000Total 42 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 80 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Modular ALS Ambulance Project #FD18.017 Priority 2 Very Important Justification Replacement of a 2000 Ford Road Rescue ambulance. At the time this ambulance is replaced, it will have over 150,000 miles on it. The repair and maintenance costs of this ambulance have become significant over the past few years and it is old and wearing out. Our goal is to replace an ambulance every five years based on its condition. We normally have one of our ambulances down for some type of repair weekly. We are also very concerned that, due to the age and the condition of these vehicles, we could develop a breakdown causing a delay in our response time of when transporting a patient to a hospital. Over the past 3 years, we have reduced our fleet from 6 ambulances to 4 operational ambulances. Our plan is to utilize three ambulances and one spare. Replacement schedule will be one ambulance every two to three years. The replacement schedule may be altered following the consultant study. Budget Impact/Other We anticipate lower operating and maintenance costs. At least one ambulance is in the shop for maintenance at any given time. Useful Life 15 years Project Name Ambulance Replacement Category Equipment Type Equipment Contact Fire Chief Department Ambulance Total Project Cost:$250,000 Total2018 2019 2020 2021 2022Expenditures 250,000250,000Equip/Vehicles/Furnishings 250,000 250,000Total Total2018 2019 2020 2021 2022Funding Sources 250,000250,000Ambulance Fund 250,000 250,000Total 43 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 81 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Modular ALS Ambulance Project #FD18.018 Priority 2 Very Important Justification Replacement of a 2014 Ford Road Rescue ambulance. The the time this ambulance is replaced, it will have approximately 200,000 miles on it. The repair and maintenance costs of this ambulance will become sidnificant over the next few years. Currently we have one of our ambulances down for some type of repair weekly. We are concerned that, due to the age and condition of these vehicles, we could develop a breakdown causing a delay in our response time or when transporting a patient to a hospital. Our plan is to utilize 3 ambulances and one spare. Replacement schedule would be one ambulance every 2 to 3 years. Budget Impact/Other We anticipate lower maintenance and operating costs, due to the efficiencies achieved with newer equipment. Useful Life 15 years Project Name Ambulance Replacement Category Equipment Type Equipment Contact Fire Chief Department Ambulance Total Project Cost:$272,000 Total2018 2019 2020 2021 2022Expenditures 272,000272,000Equip/Vehicles/Furnishings 272,000 272,000Total Total2018 2019 2020 2021 2022Funding Sources 272,000272,000Ambulance Fund 272,000 272,000Total 44 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 82 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 83 of 226 Building Maintenance DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 84 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 85 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 1810 Park Maintenance building roofing system (BUR) has been recommended for renewal. Project #MT17.01 Priority 3 Important Justification The 1810 roofing system has been recommended for renewal per the Asset Management Study. Budget Impact/Other These improvements should have a positive impact on the budge due to increased efficiency of the mechanical systems and reduced maintenance. Useful Life 20 years Project Name Park Maintenance Building Updates Category Buildings Type Improvement Contact Public Works Director Department Building Maintenance Total Project Cost:$146,000 Total2018 2019 2020 2021 2022Expenditures 146,000146,000Construction/Maintenance 146,000 146,000Total Total2018 2019 2020 2021 2022Funding Sources 146,000146,000CIP Fund 146,000 146,000Total 45 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 86 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description 1902 Building HVAC upgrades. Project #MT17.05 Priority 3 Important Justification The roof mounted AHU system is recommended for renewal. The AHU system includes heating coils, cooling coils, and a VAV distribution system. The system ensures proper air flow and reliability to the work environment. The AHU unit has been recommended for renewal per the Asset Management study for 2020. Budget Impact/Other We anticipate increased efficiencies with the new mechanical system, resulting in a positive impact on the operating budget. Useful Life 20 years Project Name 1902 Building Mechanical Updates Category Buildings Type Improvement Contact Public Works Director Department Building Maintenance Total Project Cost:$269,000 Total2018 2019 2020 2021 2022Expenditures 269,000269,000Construction/Maintenance 269,000 269,000Total Total2018 2019 2020 2021 2022Funding Sources 269,000269,000Bonds GO CIP 269,000 269,000Total 46 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 87 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 1902 Public Works Building Roof (BUR) renewal is needed. The roof renewal excludes roofing from the 2005 addition. Project #MT17.06 Priority 3 Important Justification In recent years, several leaks have occurred and each leak has been repaired by a contractor. The roof system is beyond its useful life and needs to be replaced to protect the interior of the building. The roof renewal has been recommended for action per the Asset Management Study in 2018. Budget Impact/Other The improvement should result in savings to the operating budget. The roof will require less maintenance and will be more energy efficient. Useful Life 20 years Project Name 1902 Building Roof Category Buildings Type Improvement Contact Public Works Director Department Building Maintenance Total Project Cost:$410,000 Total2018 2019 2020 2021 2022Expenditures 410,000410,000Construction/Maintenance 410,000 410,000Total Total2018 2019 2020 2021 2022Funding Sources 410,000410,000Bonds GO CIP 410,000 410,000Total 47 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 88 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description City Hall/Police Department Emergency Generator located inside of the police department garage area was new in 1985 and has been recommended for renewal. Project #MT18.01 Priority 3 Important Justification In the event of a power outage the emergency generator provides back-up power to critical equipment and emergency lighting throughout the building. The emergency generator has been recommended for the renewal per the Asset Management Study for 2020. Budget Impact/Other Useful Life 20 years Project Name City Hall/Police Department Emergency Generator Category Buildings Type Improvement Contact Public Works Director Department Building Maintenance Total Project Cost:$69,000 Total2018 2019 2020 2021 2022Expenditures 69,00069,000Construction/Maintenance 69,000 69,000Total Total2018 2019 2020 2021 2022Funding Sources 69,00069,000Bonds GO CIP 69,000 69,000Total 48 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 89 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 12.5 ton roof top mounted A/C unit located on the 2005 additionn on the 1902 Public Works building has been recommended for renewal. Project #MT18.02 Priority 3 Important Justification Based on industry standards the life expectancy of the mechanical A/C unit is 15-20 years, This unit will be 16 years old and has been recommended for renewal per the Asset Management Study for the year 2021. Budget Impact/Other Useful Life 20 years Project Name 1902 A/C Replacement Category Buildings Type Improvement Contact Public Works Director Department Building Maintenance Total Project Cost:$65,000 Total2018 2019 2020 2021 2022Expenditures 65,00065,000Construction/Maintenance 65,000 65,000Total Total2018 2019 2020 2021 2022Funding Sources 65,00065,000Bonds GO CIP 65,000 65,000Total 49 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 90 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 91 of 226 Environment and Economic Development Department DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 92 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 93 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The purchase of vacant or dilapidated properties to then prepare sites for new housing is proposed for 2018 and 2020. Project #CD02.01 Priority 2 Very Important Justification The primary purpose of the Housing Replacement Program is to prevent neighborhoods from deteriorating. If a single dwelling deteriorates to the point of becoming a detriment or an eyesore, it will have an affect on the surrounding area. Other property owners may not be motivated to care for or to improve their properties if they live near or next to a rundown house. With this in mind, the city council established the Housing Replacement Program. The city council also has adopted policy guidelines that set standards for the purchase and resale of these properties. The cost estimate is based on the premise of purchasing a minimum of one property every other year until the goals of the program change. The city is currently updating its comprehensive plan which will incorporate the housing policy requirements directed from the Metropolitan Council and also the housing policy goals established by the Maplewood City Council. This CUP expenditure is reflected to match those expected policy goals. Budget Impact/Other There will be no direct impact on the operating budget. However, this program is designed to improve the tax base in the City, which could potentially lower property taxes. Useful Life Project Name Housing Replacement Program Category Redevelopment Type Improvement Contact EEDD Director Department EEDD Total Project Cost:$450,000 Total2018 2019 2020 2021 2022Expenditures 450,000150,000 150,000 150,000Construction/Maintenance 150,000 150,000 150,000 450,000Total Total2018 2019 2020 2021 2022Funding Sources 450,000150,000 150,000 150,000Redevelopment Fund 150,000 150,000 150,000 450,000Total 50 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 94 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Specific properties in the Gladstone area will be identified and the City may facilitate the acquistion and redevelopment of the properties in accordance with the approved Gladstone Master Plan and the City's Comprehensive Plan. Project #CD15.01 Priority 1 Critical Justification The development of the Gladstone is underway. Phase 1 and Phase 2 street, landscape and roadway improvements have been completed. Plans are underway for Phase 3 public improvements beginning in 2023. The Shores senior housing project on Phalen Place was constructed in 2012 and 50 future units are to be completed in the near future. In addition, redevelopment occurred in 2015 on the former Maplewood Bowl site, resulting in 50 affordable and 107 market-rate senior housing. The final phase will include funding for the acquisition of property for redevelopment. Specific properties will be identified and the City may act as developer or in agreement with a private developer to acquire and demolish existing buildings and property for development in accordance with the approved Gladstone Master Plan and the City's Comprehensive Plan. Budget Impact/Other There will be no direct impact on the operating budget. However, this program is designed to improve the tax base in the City, which could potentially lower property taxes. Useful Life Project Name Gladstone Area Redevelopment Category Redevelopment Type Improvement Contact EEDD Director Department EEDD Total Project Cost:$5,950,000 Total2018 2019 2020 2021 2022Expenditures 5,950,0002,000,000 2,750,000 1,200,000Land Acquisition 2,000,000 2,750,000 1,200,000 5,950,000Total Total2018 2019 2020 2021 2022Funding Sources 5,950,0002,000,000 2,750,000 1,200,000Bonds GO CIP 2,000,000 2,750,000 1,200,000 5,950,000Total 51 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 95 of 226 Fire Department DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 96 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 97 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description 800 MHz Mobile and Portable Radios Project #FD18.010 Priority 1 Critical Justification In 2007, all public safety agencies within Ramsey County moved from the old UHF VHF radio system to the new 800 MHz system. This new system provided interoperability between all public safety disciplines and improved total state communications. Moving to the new system required a total replacement of all existing radio devices within Ramsey County. Through a grant process at the time, Ramsey County was able to replace all existing radios within Ramsey County used by public safety disciplines. There was no cost to the city of Maplewood for this replacement. Starting in 2015, those radios purchased back in 2007 were no longer supported by manufacturer which in turn will require us to purchase newer models. Currently within the city of Maplewood's public safety, we have 265 radios. We are trying to reduce that number, at an average cost of $3,500 per radio. Starting in 2016, we started replacing about 10 of these a year as needed. The technology has not changed, we just won't be able to get the current radios repaired as they begin to break down. We will continue to look for grant opportunities as they become available as well as work with our neighboring departments to ensure the best possible pricing. Budget Impact/Other There will be no additional operating costs after the initial purchase. A maintenance plan is in place. Useful Life 10 years Project Name Replacement of Police & Fire 800 MHZ Radios Category Equipment Type Equipment Contact Department Fire Department Total Project Cost:$832,300 Total2018 2019 2020 2021 2022Expenditures 407,80078,300 79,900 81,500 83,200 84,900Equip/Vehicles/Furnishings 78,300 79,900 81,500 83,200 84,900 407,800Total Future 424,500 Total Total2018 2019 2020 2021 2022Funding Sources 407,80078,300 79,900 81,500 83,200 84,900CIP Fund 78,300 79,900 81,500 83,200 84,900 407,800Total Future 424,500 Total 52 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 98 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Remodel Hazelwwod Fire Station #3 This request may be altered, depending on the results of the fire station location and operational review. Project #FD18.011 Priority 2 Very Important Justification In 2011, the city council received information on new staffing scenarios for the fire department and at the same time approved the fire department going from five fire stations to three. In order to better serve our community, one new station needed to be built in the middle of the city's leg. The plan is for the other two to be remodeled at their current locations. In 2018, our goal is to start remodeling the station that is located at the intersection of Hazelwood and County Road C. This station will become our North District Station Number Three. Currently, the facility is only capable of having two firefighters staffed around the clock. The current station was built over 40 years ago with the energy efficiencies that were available at that time. With the remodeling of this station, today's energy efficiencies will be built-in with additional storage and sleeping quarters that will meet our needs into the foreseeable future. Our goal is to start construction in the spring of 2018 and be opperational by November 2018. The necessary changes to this station will allow the Maplewood Fire Department to continue to provide outstanding service to its residents and those that visit and work in our fine city. Any delay in remodeling this station has a high potential for a decrease in our service level as we continue to have substantial increases in our calls for emergency services. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs and increased energy efficiencies. Useful Life 20 years Project Name Rehabilitation of Fire Station #3 Hazelwood Category Buildings Type Improvement Contact Fire Chief Department Fire Department Total Project Cost:$2,400,000 Total2018 2019 2020 2021 2022Expenditures 2,400,0002,400,000Construction/Maintenance 2,400,000 2,400,000Total Total2018 2019 2020 2021 2022Funding Sources 400,000400,000Bonds GO CIP 2,000,0002,000,000Proceeds from Sale Property 2,400,000 2,400,000Total 53 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 99 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Rehab Gladstone Fire Station #2 This request may be altered, depending on the results of the fire station location and operational review. Project #FD18.012 Priority 2 Very Important Justification In 2011, the city council received information on new staffing scenarios for the fire department and at the same time approved the fire department going from five fire stations to three. In order to better serve our community, one new station needed to be built in the middle of the city's leg. The plan is for the other two to be remodeled at their current locations. In 2018, our goal is to start remodeling the station that is located at 1955 Clarence Street. This station will become our Central District Station Number Two. Currently, the facility is only capable of having four firefighters staffed around the clock. The current station was built in 2000 and had to be scaled back due to the high cost of construction at that time. Even though this station is only 14 years old, many changes have been made in energy efficiencies in this short period of time. With the remodeling of this station, today's energy efficiencies will be built-in along with additional storage, more office space and sleeping quarters that will meet our needs into the foreseeable future. Our goal is to start construction in the spring of 2018 and be in operation by November 2018. The necessary changes to this station will allow the Maplewood Fire Department to continue to provide outstanding service to its residents and those that visit and work in our fine city. Any delay in remodeling this station has a high potential for a decrease in our service level as we continue to have substantial increases in our calls for emergency services. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs and increased energy efficiencies. Useful Life 20 years Project Name Rehabilitation of Fire Station #2 Gladstone Category Buildings Type Improvement Contact Fire Chief Department Fire Department Total Project Cost:$2,100,000 Total2018 2019 2020 2021 2022Expenditures 2,100,0002,100,000Construction/Maintenance 2,100,000 2,100,000Total Total2018 2019 2020 2021 2022Funding Sources 700,000700,000Bonds GO CIP 1,400,0001,400,000Proceeds from Sale Property 2,100,000 2,100,000Total 54 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 100 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description 75' Ladder Truck Project #FD18.013 Priority 2 Very Important Justification This truck will replace a 2000, 75’ ladder/ pumper fire truck that at the time if its replacement it will be 22 years old. The mileage at the time of replacement will be close to 200,000 miles. With the purchase of the new truck in 2017 this truck will be move to a station were the usage will be slightly reduce which will help keeping the maintenance cost lower and prolong the life of the truck. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 12 years Project Name Replacement of Ladder Truck Category Equipment Type Equipment Contact Fire Chief Department Fire Department Total Project Cost:$900,000 Total2018 2019 2020 2021 2022Expenditures 900,000900,000Equip/Vehicles/Furnishings 900,000 900,000Total Total2018 2019 2020 2021 2022Funding Sources 900,000900,000Fire Equipment Fund 900,000 900,000Total 55 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 101 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Fire fighting turnout gear, including pants, coat, boots, and hoods. Project #FD18.014 Priority 1 Critical Justification We are requesting to replace 22 sets of turnout gear. This request allows us to bring our current tourout gear (pants, coats, gloves, hoods, boots) up to date with the NFPA 1851 edition 2014 and OSHA 1910.156. Currently, we are not able to meet the NFPA 1851 or OSHA 1910 requirements for cleaning and repairing of firefighter turnout gear. When repairs are required, or when washing and drying is needed, firefighters do not have a second set of turnout gear available. Washing and drying the turnout gear is of paramount importance in order to remove the carcinogens which are embedded in the turnout gear. A turnout gear replacement program will be implemented which places turnout gear in "spare" status after 5 years, with replacement at 10 years which is the end of the useful life of the turnout gear. Budget Impact/Other After the initial purchase, further sets will be purchased in the operating budget. Useful Life 6 years Project Name Fire Fighting Turn Out Gear Category Equipment Type Equipment Contact Fire Chief Department Fire Department Total Project Cost:$115,700 Total2018 2019 2020 2021 2022Expenditures 115,70057,400 58,300Equip/Vehicles/Furnishings 57,400 58,300 115,700Total Total2018 2019 2020 2021 2022Funding Sources 115,70057,400 58,300Fire Equipment Fund 57,400 58,300 115,700Total 56 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 102 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description 1500 GPM Fire Truck Project #FD18.015 Priority 2 Very Important Justification This truck will replace a 2000 fire truck that has significant rust issues and ongoing maintenance costs. The goal of our replacement program for fire trucks is to have all first line pumpers replaced every 20 years. The new engine will have the additional space as well as have the capabilities of doing the function of both rescue and fire suppression. It will also be foam capable. At the time of replacement, this truck will be 19 years old. Budget Impact/Other There will be a positvie impact on the operating budget due to lower maintenance costs. The truck will be purchased with a Tax Exempt Master Lease Agreement through the Government Leasing Program with a ten-year amortization period. Useful Life 20 years Project Name Replacement of Fire Truck Category Equipment Type Equipment Contact Fire Chief Department Fire Department Total Project Cost:$645,000 Total2018 2019 2020 2021 2022Expenditures 645,000645,000Equip/Vehicles/Furnishings 645,000 645,000Total Total2018 2019 2020 2021 2022Funding Sources 645,000645,000Fire Equipment Fund 645,000 645,000Total 57 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 103 of 226 Information Technology DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 104 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 105 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Replacement of portions of Eden Systems software Project #IT15.020 Priority 2 Very Important Justification Currently we are using the application Eden Systems by Tyler Technologies to manage a variety of items within various City departments. While Eden Systems is not going away any time soon, they are not actively improving the application either. In some departments we have a need to become more mobile while also bringing resources closer to our applications/customers. This item would be to replace some modules of Eden Systems with a new application that would provide us those capabilities. In 2017 we will look at more mobile based modules for employees in the field. 2019 would be upgrading any modules left with Eden Systems. Budget Impact/Other The annual maintenance agreement may increase, depending on options chosen. Impact on the operating budget will most likely be less than $5,000 annually. Useful Life 20 years Project Name Eden System replacement Category Equipment: Computers Type Equipment Contact IT Director Department IT Total Project Cost:$250,000 Total2018 2019 2020 2021 2022Expenditures 250,000250,000Equip/Vehicles/Furnishings 250,000 250,000Total Total2018 2019 2020 2021 2022Funding Sources 250,000250,000IT Fund 250,000 250,000Total TotalBudget Items 2018 2019 2020 2021 2022 40,00010,000 10,000 10,000 10,000Maintenance 10,000 10,000 10,000 10,000 40,000Total Future 10,000 Total 58 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 106 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Additional SAN nodes for servers Project #IT16.010 Priority 2 Very Important Justification Our storage area network (SAN) provides dist space to all of our servers. This item is being included to replace older nodes within that SAN and to add additional storage in the future if need be. By 2020 we will be ready to retire some of the current SAN nodes in use. Also, with the large volume of video that we are beginning to see recorded we will need additional storage in the future. This item will provide a solution to both of those challenges. Budget Impact/Other There will be no additional annual ooperating costs beyond the initial purchase. Useful Life 10 years Project Name Server Storage Category Equipment: Computers Type Equipment Contact IT Director Department IT Total Project Cost:$60,000 Total2018 2019 2020 2021 2022Expenditures 60,00060,000Equip/Vehicles/Furnishings 60,000 60,000Total Total2018 2019 2020 2021 2022Funding Sources 60,00060,000IT Fund 60,000 60,000Total 59 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 107 of 226 Parks and Recreation DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 108 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 109 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Community field upgrades, equipment, fences, courts at Nebraska, Sunset, and Sherwood Parks. Project #PM07.010 Priority 3 Important Justification A main theme identified by our Parks System Master Plan was “Taking care of what we have” in our aging parks system. This proposal will provide the City with resources to continue updating and/or replacing basketball and tennis courts, fields, fences and playgrounds to accomplish that goal. Budget Impact/Other The upgrades should not impact the operating budget, except for a sustained decrease in maintenance costs. Useful Life 20 years Project Name Park Upgrades to Existing Parks Category Park Improvements Type Improvement Contact Park Director Department Parks and Recreation Total Project Cost:$1,070,000 Total2018 2019 2020 2021 2022Expenditures 520,000100,000 100,000 100,000 110,000 110,000Construction/Maintenance 100,000 100,000 100,000 110,000 110,000 520,000Total Future 550,000 Total Total2018 2019 2020 2021 2022Funding Sources 520,000100,000 100,000 100,000 110,000 110,000Bonds Tax Abatement 100,000 100,000 100,000 110,000 110,000 520,000Total Future 550,000 Total 60 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 110 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Provide funding for open space improvements. Project #PM08.060 Priority 3 Important Justification Maplewood's Neighborhood Preserve system includes 15 preserves. Seven of the sites have maintained trails and nine sites have received major restoration or active management. The Parks System Master Plan calls for adding trails where appropriate and restoring sites to native vegetation. 2017-2018 projects include restoration projects at Prairie Farm Preserve (funded by $62,000 grant), Priory Preserve enhancements (entry, boardwalk, sitting area, restoration), and buffer improvements at Jim's Prairie. Trails will be constructed at Spoon Lake Preserve (2018 design, 2019 construction), Joy Park (2021), and Prairie Farm (2025, short section). Restoration projects are planned for 2020 and 2022. Budget Impact/Other The improvements will require maintenance. Staff time will be allocated to future budges once the improvements are completed. Useful Life 20 years Project Name Open Space Improvements Category Park Improvements Type Improvement Contact Park Director Department Parks and Recreation Total Project Cost:$710,000 Total2018 2019 2020 2021 2022Expenditures 560,000110,000 250,000 25,000 150,000 25,000Construction/Maintenance 110,000 250,000 25,000 150,000 25,000 560,000Total Prior 150,000 Total Total2018 2019 2020 2021 2022Funding Sources 560,000110,000 250,000 25,000 150,000 25,000Park Improvement Fund 110,000 250,000 25,000 150,000 25,000 560,000Total Prior 150,000 Total 61 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 111 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Goodrich Park improvements. Project #PM11.020 Priority 3 Important Justification One of the major recommendations in the Parks System Plan is to fill the need for destination or “signature” parks. Reinvestment in four centrally-located parks and connecting them with trails was recommended. One of these signature parks has been identified as Goodrich Park and it is envisioned as a major destination for community gathering in Maplewood. Key features include a universally accessible playground, additional parking, natural resources restoration, ball field upgrades and picnic shelters with restrooms. Budget Impact/Other Equipment and facilities will require maintenance and periodic upgrades. These costs will be identified and built into the operating budget upon completion. Useful Life 20 years Project Name Goodrich Park Category Park Improvements Type Improvement Contact Park Director Department Parks and Recreation Total Project Cost:$350,000 Total2018 2019 2020 2021 2022Expenditures 50,00050,000Planning/Design 300,000250,000 50,000Construction/Maintenance 50,000 250,000 50,000 350,000Total Total2018 2019 2020 2021 2022Funding Sources 350,00050,000 250,000 50,000Bonds Tax Abatement 50,000 250,000 50,000 350,000Total 62 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 112 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Creation of the Harvest Park Master Plan. Project #PM14.020 Priority 3 Important Justification Harvest Park is a 25 acre park located at 2561 Barclay. This park is reaching its effective life cycle, and many of the amenities are in poor condition. Staff will work with residents to develop a master plan for this park in 2018 and begin implementation of that plan starting in 2022. The plan will likely include a re-configuration of the ball fields, a picnic shelter, new playground, new internal trails, and additional amenities. Budget Impact/Other Equipment and facilities will require maintenance and periodic upgrades. These costs will be identified and built into the operating budget upon completion. Useful Life 20 years Project Name Harvest Park Category Park Improvements Type Improvement Contact Park Director Department Parks and Recreation Total Project Cost:$100,000 Total2018 2019 2020 2021 2022Expenditures 100,00050,000 50,000Planning/Design 50,000 50,000 100,000Total Total2018 2019 2020 2021 2022Funding Sources 100,00050,000 50,000Park Improvement Fund 50,000 50,000 100,000Total 63 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 113 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Remove and Replace Ash Trees to Control the Spread of EAB Project #PM15.020 Priority 1 Critical Justification Emerald Ash Borer (EAB) causes widespread decline and death of ash trees and has decimated ash populations in some states. EAB has recently been confirmed in Maplewood. The 2011 inventory of park and boulevard trees (does not include natural areas), found 2037 ash trees (21% of the 9563 trees). To remove and replace these ash trees at $700-$900 each would require $1,425,900- $1,833,300. In June 2011, Maplewood City Council approved a plan for managing EAB in Maplewood. The plan includes strategic removal of ash trees, starting with removal of those in poor health prior to EAB being found in Maplewood. The inventory identified 250 poor quality ash. Funding is needed to remove and replace 125 poor quality ash trees each year over the next two years. We assume EAB will be confirmed in Maplewood in 2017 or 2018 and significant funding will be needed to keep up with removals once it is here. Budget Impact/Other There will be no additional impact to the operating budget once this project is completed. Tree maintenance is already incorporated into the annual operating budget. Useful Life 15 years Project Name EAB Ash Removal and Planting Category Park Improvements Type Improvement Contact Park Director Department Parks and Recreation Total Project Cost:$1,900,000 Total2018 2019 2020 2021 2022Expenditures 700,000100,000 150,000 150,000 150,000 150,000Construction/Maintenance 100,000 150,000 150,000 150,000 150,000 700,000Total Future 1,200,000 Total Total2018 2019 2020 2021 2022Funding Sources 700,000100,000 150,000 150,000 150,000 150,000CIP Fund 100,000 150,000 150,000 150,000 150,000 700,000Total Future 1,200,000 Total 64 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 114 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Plan and redevelop Wakefield Park and implement outcomes. Project #PM15.430 Priority 3 Important Justification Wakefield is a 41 acre park located at 1590 Frost Avenue. Over the past 10 years the use of the park has changed. Until recently it was an important part of our adult softball program. Due to changing demographics, that is no longer the case. This project proposes to redevelop Wakefield Park, including the removal of ball fields, and the creation of a park that better serves the needs of Maplewood’s diverse population. Wakefield has also been identified as one of the signature parks in our Parks System Plan. The City will be working closely with the Watershed District on this redevelopment to improve water quality in the area. The Wakefield Park concept includes a mix of active and passive programming that provides areas for picnicking and gathering while preserving much of the park for passive recreation and exploration. A key component of this project is a multi-purpose building featuring flexible programming space, kitchen facilities and restrooms as well as outdoor spaces for education and recreation. Budget Impact/Other Equipment and facilities will require maintenance and periodic upgrades. These costs will be identified and built into the operating budget upon completion. Useful Life 20 years Project Name Wakefield Park Category Park Improvements Type Improvement Contact Park Director Department Parks and Recreation Total Project Cost:$250,000 Total2018 2019 2020 2021 2022Expenditures 50,00050,000Planning/Design 200,000200,000Construction/Maintenance 250,000 250,000Total Total2018 2019 2020 2021 2022Funding Sources 125,000125,000Park Improvement Fund 125,000125,000Watershed District 250,000 250,000Total 65 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 115 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Parks System Master Plan Implementation Project #PM16.001 Priority 3 Important Justification At the time the Parks System Plan was adopted, specific prioritization was given to improvements in the parks system. With more projects than funding available, prioritization was necessary to guide where funds would be allocated. As part of this prioritization process, it was identified that the Maintenance and Reinvestment portion of the plan would be the highest priority and essential to the future health of the parks system. The Maintenance and Reinvestment recommendation identifies $7,000,000 of improvements to our existing system. This addresses the highest priorities that we heard from our residents of "Taking care of what we have" and for trail connectivity throughout our park system. For all of these projects, staff will lead the community through a thorough public process. Future projects will be decided at a later date and will be based on outcomes gained from the Parks System Master Plan. Budget Impact/Other Equipment and facilities will require maintenance and periodic upgrades. These costs will be identified and built into the operating budget upon completion. Useful Life 15 years Project Name Park Maintenance and Re-Investment Category Park Improvements Type Improvement Contact Park Director Department Parks and Recreation Total Project Cost:$5,600,000 Total2018 2019 2020 2021 2022Expenditures 3,600,0001,600,000 1,000,000 1,000,000Construction/Maintenance 1,600,000 1,000,000 1,000,000 3,600,000Total Future 2,000,000 Total Total2018 2019 2020 2021 2022Funding Sources 3,600,0001,600,000 1,000,000 1,000,000Bonds Tax Abatement 1,600,000 1,000,000 1,000,000 3,600,000Total Future 2,000,000 Total TotalBudget Items 2018 2019 2020 2021 2022 100,00020,000 20,000 20,000 20,000 20,000Other (Insurance, Utilities) 20,000 20,000 20,000 20,000 20,000 100,000Total Future 20,000 Total 66 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 116 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Create Master Plan for Maplewood Nature Center. Project #PM16.003 Priority 3 Important Justification The Park System Master Plan identifies the need for a Master Plan to be completed for the Maplewood Nature Center. The first step in developing the Master Plan is to conduct a feasibility study to: 1) evaluate short-term and long-term environmental and nature programming eneds, 2) determine whether the existing Visitor Center and site can meet those needs, and 3) recommend a course of action (renovation, new center, or new site). The Master Plan would then develop concepts for the Visitor Center and site improvements, development or redevelopment. Budget Impact/Other This project will have no additional budget impacts. If recommendations are adopted and construction is undertaken additional budget impacts would be identified at that time. Useful Life 20 years Project Name Maplewood Nature Center Master Plan Category Park Improvements Type Improvement Contact Park Director Department Parks and Recreation Total Project Cost:$75,000 Total2018 2019 2020 2021 2022Expenditures 75,00075,000Planning/Design 75,000 75,000Total Total2018 2019 2020 2021 2022Funding Sources 75,00075,000Park Improvement Fund 75,000 75,000Total 67 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 117 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Purchase additional properties adjacent to the nature center. Project #PM16.004 Priority 3 Important Justification Maplewood Nature Center was built in 1978 and added onto in 1994. Indoor exhibits were redone in 2005 and stormwater improvements and landscape demonstrations were done in 2008. Over half of the 40-acre site is wetland. The visitor center and yard take up just over one acre of land and include the main building, shed, parking lot, demonstration garden, picnic area, and nature play area. This is a small footprint for the amount and the type of use the center receives. Due to the wetland and property boundaries, we cannot expand on the existing site. The project would acquire an adjaenct lot to the east and a lot to the northeast. These acquisitions would allow for significant enhancements of the picnic and play area, the addition of a garage/storage area, and the oppurtunity to make a bike trail connection between Brand and East 7th Street. Budget Impact/Other There will be minimal additional impact on the operating budget; however, costs for trail maintenance and land upkeep will be identified and incorporated into the annual budget. Useful Life 20 years Project Name Maplewood Nature Center Land Acquisition Category Park Improvements Type Improvement Contact Park Director Department Parks and Recreation Total Project Cost:$300,000 Total2018 2019 2020 2021 2022Expenditures 300,000300,000Land Acquisition 300,000 300,000Total Total2018 2019 2020 2021 2022Funding Sources 300,000300,000Park Improvement Fund 300,000 300,000Total 68 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 118 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Improvements at Fish Creek Open Space Project #PM16.005 Priority 3 Important Justification Maplewood acquired the 70-acre Fish Creek site in 2013. Ramsey County owns the adjacent land and the City and County work closely together on management of their sites. Partner Great River Greening (GRG) conducted woodland and prairie restoration at the site in 2012-2015. In 2015, an archeological investigation was conducted on the site and in January 2015 Council approved an updated Mater Plan. Phase I Improvements at the site are scheduled for 2016 and will include installation of trails. A parking lot, kiosk, and sitting areas are scheduled for 2017. Interpretation of site history and natural resources is scheduled for 2018. Future phases will include the installation of the rustic trail along Fish Creek, a programming shelter, and amenities in the parcel near Carver Road. Budget Impact/Other Additional operating costs will be incurred to maintain the parking lot. These costs will be identified and incorporated into the annual budget after completion. Useful Life 15 years Project Name Fish Creek Open Space Category Park Improvements Type Improvement Contact Park Director Department Parks and Recreation Total Project Cost:$568,000 Total2018 2019 2020 2021 2022Expenditures 250,000250,000Construction/Maintenance 250,000 250,000Total Prior 318,000 Total Total2018 2019 2020 2021 2022Funding Sources 100,000100,000Park Improvement Fund 150,000150,000Ramsey County 250,000 250,000Total Prior 318,000 Total 69 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 119 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Repairs, storage, and exhibit renovation at the Maplewood Nature Center site. Project #PM18.01 Priority 3 Important Justification Maplewood Nature Center Visitor Center was built in 1978, added onto in 1994, and received major repairs and maintenance in 2017. Improvements are needed to the grounds and exhibits. 1) Replace detached storage shed with a larger storage shed (2018). 2) Replace three observation decks (2018). 3) Replace 600' boardwalk (2019). The boardwalk was constructed in 2000. It's expected useful life was 20 years, but the cables and floats have begun to show more critical deterioration and should be done prior to 2020. 4) Replace indoor exhibits (2024). Exhibits were constructed in 2004 with a useful life of 20 years. Budget Impact/Other There will be no additional budget impact to the operating budget once this project is completed. Maintenance of these is already incorporated into the annual operating budget. Useful Life 20 years Project Name Maplewood Nature Center Improvements Category Buildings Type Improvement Contact Park Director Department Parks and Recreation Total Project Cost:$175,000 Total2018 2019 2020 2021 2022Expenditures 175,00050,000 125,000Construction/Maintenance 50,000 125,000 175,000Total Total2018 2019 2020 2021 2022Funding Sources 175,00050,000 125,000Park Improvement Fund 50,000 125,000 175,000Total 70 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 120 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Infrastructure for Edgerton Community Garden. Project #PM18.02 Priority 2 Very Important Justification The Parks System Master Plan calls for providing community gardens and for reaching diverse populations with park facilities and programming. Edgerton Community Garden is the only community garden run by the city. It has 44 plots, which are rented by a very diverse group of gardeners. There are several apartment buildings in the neighborhood so there is a need here for garden space. Water is provided via a water tank that staff fills weekly during the growing season. There has long been a need to expand the garden and add water infrastructure. In 2017, we will be adding 10 raised beds and fruit trees to the garden. Plans for 2018 include: 1) expand the garden to serve more people, 2) install water line, spigots, fencing, and shed, and 3) extend the school sidewalk to the garden. Budget Impact/Other There will be no additional impact to the opertaing budget once this project is completed. Maintenance of these is already incorporated into the annual operating budget. Useful Life 20 years Project Name Edgerton Community Garden Category Park Improvements Type Improvement Contact Park Director Department Parks and Recreation Total Project Cost:$50,000 Total2018 2019 2020 2021 2022Expenditures 50,00050,000Construction/Maintenance 50,000 50,000Total Total2018 2019 2020 2021 2022Funding Sources 50,00050,000Park Improvement Fund 50,000 50,000Total 71 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 121 of 226 Police Department DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 122 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 123 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Each year the police department needs to replace four to six marked squad cars. The fully burdened cost of police squads is $36,050. Instead of building in an annual inflation increase, it is recognized that certain elements (e.g., light bars, push bumpers) may or may not be replaced depending on condition and servicabiltiy. The vehicles are purchased through the State Cooperative Purchasing Program. Project #PD18.010 Priority 1 Critical Justification In recognition that effective policing efforts require high visibility and high mobility, the department needs to maintain and invest in fleet operations. As vehicles become more efficient and as we collect and evaluate data about the best fleet resources for specific types of police work, maintaining a current and operational fleet is critical. Marked police vehicles are the primary means of responsive service delivery. At present the police department operates 26 marked squads. With the exception of two police reserve squads, a marked police car has a useful life for approximately 40 months - 100,000 to 120,000 miles.. Budget Impact/Other Adhering to the appropriate replacement schedule has a positive impact on the operating budget by minimizing maintenance costs and down time. Useful Life 4 years Project Name Squad Replacement Category Vehicles Type Equipment Contact Police Chief Department Police Department Total Project Cost:$2,163,000 Total2018 2019 2020 2021 2022Expenditures 1,081,500216,300 216,300 216,300 216,300 216,300Equip/Vehicles/Furnishings 216,300 216,300 216,300 216,300 216,300 1,081,500Total Future 1,081,500 Total Total2018 2019 2020 2021 2022Funding Sources 1,081,500216,300 216,300 216,300 216,300 216,300Police Equipment Fund 216,300 216,300 216,300 216,300 216,300 1,081,500Total Future 1,081,500 Total 72 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 124 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Records Management System. In 2015, the police department purchased a new records management system (RMS) in collaboration with the Ramsey County Sheriff's Office and several other Ramsey County law enforcement agencies. This rrequest reflects the need to build a fund to cover the expected replacement cost of $600,000. Project #PD18.020 Priority 3 Important Justification Planned obsolesence of the department's current records management system. Budget Impact/Other There will be no additional impact on the operating budget, other than the annual costs already identified in the CIP expenditures. Building this fund will make system replacement easier in the future and this proposal corresponds with the planned replacement of the jointly owned Computer Aided Dispatch system at the Ramsey County Emergency Communications Center. Useful Life 10 years Project Name Records Management System Category Equipment Type Equipment Contact Police Chief Department Police Department Total Project Cost:$500,000 Total2018 2019 2020 2021 2022Expenditures 250,000250,000Equip/Vehicles/Furnishings 250,000 250,000Total Future 250,000 Total Total2018 2019 2020 2021 2022Funding Sources 250,00050,000 50,000 50,000 50,000 50,000IT Fund 50,000 50,000 50,000 50,000 50,000 250,000Total Future 250,000 Total 73 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 125 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Capital investment in shared Regional Police Firearms Training Range Project #PD18.060 Priority 3 Important Justification This project represents allocation of funding for Maplewood to join a consortium of East Metro communities in the design, development, building, and operation of a Regional Police Firearms Training Range. At present Cottage Grove and Woodbury have secured funding for the purpose of planning a training site that would include a firearms range. There continues to be discussions and preliminary planning for a Regional Range that would be shared and governed by a number of East Metro law enforcement agencies. The Regional Range is now expected to cost $5 to $13 million dollars and would largely be funded by state issued bond funds. At present, a legislative bonding measure is under consideration that may provide some clarity for options going forward. Budget Impact/Other Additional costs will be identified upon completion of the facility. Maintenance and upkeep will be shared with member cities. A formula has not yet been developed. At present the department spends approximately $22,000 annually on range rental for mandatory firearms training and qualification. Training time is increasing difficult to get. Making a capital investment or partnership ensures access to quality training facilities. Useful Life 40 years Project Name Regional Police Firearms Training Range Category Buildings Type Improvement Contact Police Chief Department Police Department Total Project Cost:$1,800,000 Total2018 2019 2020 2021 2022Expenditures 800,000200,000 200,000 200,000 200,000Construction/Maintenance 200,000 200,000 200,000 200,000 800,000Total Future 1,000,000 Total Total2018 2019 2020 2021 2022Funding Sources 800,000200,000 200,000 200,000 200,000Bonds GO CIP 200,000 200,000 200,000 200,000 800,000Total Future 1,000,000 Total TotalBudget Items 2018 2019 2020 2021 2022 88,00022,000 22,000 22,000 22,000Maintenance 22,000 22,000 22,000 22,000 88,000Total Future 110,000 Total 74 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 126 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 127 of 226 Public Works Department DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 128 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 129 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The city has an annual program to refurbish lift stations. Project #PW03.21 Priority 2 Very Important Justification This program involves the refurbishing of lift stations. This expenditure is a preventive maintenance expenditure to help reduce backups and failures due to emergency situations. The program includes pump rebuilds, wet well inspections and general site improvements for the nine lift stations located throughout the City. The remaining funds will be allocated for technological upgrades to the telemetry at various lift stations. Budget Impact/Other The upgrade program has a positive impact on the operating by reducing maintenance costs. Useful Life 60 years Project Name Lift Station Upgrade Program Category Utilities Type Maintenance Contact Public Works Director Department Public Works Total Project Cost:$200,000 Total2018 2019 2020 2021 2022Expenditures 100,00020,000 20,000 20,000 20,000 20,000Construction/Maintenance 20,000 20,000 20,000 20,000 20,000 100,000Total Future 100,000 Total Total2018 2019 2020 2021 2022Funding Sources 100,00020,000 20,000 20,000 20,000 20,000Sanitary Sewer Fund 20,000 20,000 20,000 20,000 20,000 100,000Total Future 100,000 Total 75 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 130 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 2000 single-axle plow truck, Unit 538 is due for replacement in 2018. Project #PW13.03 Priority 2 Very Important Justification The 2000 model year plow truck is due for replacement. This unit is one of eight single-axle trucks in the fleet. This truck is an intergral piece of equipment in the fleet for the street maintenance division. It is utilized year round. In summer, the truck is used for patching and paving streets. In winter, it is used every snow/ice event for treating and plowing city streets. Budget Impact/Other An annual savings is realized over the next five years totaling $42,750.00 of which $37,750.00 would have been required for maintenance and $5,000.00 lost on trade-in value. Useful Life 15 years Project Name Single-Axle Plow Truck Category Vehicles Type Equipment Contact Public Works Director Department Public Works Total Project Cost:$220,000 Total2018 2019 2020 2021 2022Expenditures 220,000220,000Equip/Vehicles/Furnishings 220,000 220,000Total Total2018 2019 2020 2021 2022Funding Sources 220,000220,000Fleet Management Fund 220,000 220,000Total TotalBudget Items 2018 2019 2020 2021 2022 -36,200-7,550 -8,550 -9,550 -10,550Maintenance -7,550 -8,550 -9,550 -10,550 -36,200Total Prior -6,550 Total 76 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 131 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Stormwater ponds, also known as wet ponds, "NURP" ponds, or retention basins, are a necessary component for land development in order to manage stormwater runoff. These basins within the city of Maplewood were typically built to control runoff rates to minimize downstream flooding and erosion. These ponds are now also viewed as a mechanism to capture and settle pollutants. Maintaining the city’s stormwater ponds requires the removal of sediment by conducting dredging projects. Project #PW14.01 Priority 3 Important Justification Due to the buildup of sediment, maintenance is required to ensure these basins are providing the designed rate control and maintain their ability to improve quality of stormwater runoff. As part of the pond maintenance program, the city has established a goal of completing at least one pond assessment every two years based on available funding and staff resources. Additionally, the city will look to capitalize on partnerships with the local watershed districts and neighboring cities that are doing similar projects. The city is required to have a pond maintenance program as part of its NPDES MS4 general permit. This program would also coordinate with our flood mitigation projects and may be used for finalizing out identified projects as a result of the July 2011 flood event if they are of a higher priority than a pond cleanout. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 50 years Project Name Pond Clean Out/Dredging Projects Category Utilities Type Maintenance Contact Public Works Director Department Public Works Total Project Cost:$300,000 Total2018 2019 2020 2021 2022Expenditures 200,000100,000 100,000Construction/Maintenance 100,000 100,000 200,000Total Future 100,000 Total Total2018 2019 2020 2021 2022Funding Sources 200,000100,000 100,000Environmental Utility Fund 100,000 100,000 200,000Total Future 300,000 Total 77 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 132 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 2003 single-axle plow truck, Unit 537, is due for replacement in 2019. Project #PW15.01 Priority 2 Very Important Justification The 2003 model year single-axle truck is due for replacement. This unit is one of eight single-axle trucks in the fleet. This truck is an intergral piece of equipment in the fleet for the street maintenance division. It is utilized year round. In summer, the truck is used for patching and paving streets. In winter, it is used every snow/ice event for treating and plowing city streets. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 15 years Project Name Single-Axle Plow Truck Category Vehicles Type Equipment Contact Public Works Director Department Public Works Total Project Cost:$220,000 Total2018 2019 2020 2021 2022Expenditures 220,000220,000Equip/Vehicles/Furnishings 220,000 220,000Total Total2018 2019 2020 2021 2022Funding Sources 220,000220,000Fleet Management Fund 220,000 220,000Total 78 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 133 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 1996 water tanker, Unit 543, is due for replacement in 2020. Project #PW15.02 Priority 2 Very Important Justification The 1996 water tanker is in need of replacement due to age, high engine hours and heavy structural wear to the tanker's frame/body. Operating this unit is no longer cost effective. This tanker is utilized year round by all three divisions in Public Works. The street department uses the tanker to wash medians, the utility department uses it to flush sanitary sewer mains and the parks department uses it to flood ice rinks. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name Water Tanker Category Equipment: PW Equip Type Equipment Contact Public Works Director Department Public Works Total Project Cost:$110,000 Total2018 2019 2020 2021 2022Expenditures 110,000110,000Equip/Vehicles/Furnishings 110,000 110,000Total Total2018 2019 2020 2021 2022Funding Sources 110,000110,000Fleet Management Fund 110,000 110,000Total 79 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 134 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 1999 1/2-ton truck, Unit 508, is due for replacement in 2018. Project #PW15.03 Priority 3 Important Justification One 1999 1/2-ton truck is scheduled for replacement. This unit is used for miscellaneous jobs in the building maintenance division. The truck has high mileage and due to its age is in need of costly engine work that exceeds that value of the truck. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 10 years Project Name One 1/2-Ton Truck Category Vehicles Type Equipment Contact Public Works Director Department Public Works Total Project Cost:$22,000 Total2018 2019 2020 2021 2022Expenditures 22,00022,000Equip/Vehicles/Furnishings 22,000 22,000Total Total2018 2019 2020 2021 2022Funding Sources 22,00022,000Fleet Management Fund 22,000 22,000Total 80 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 135 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 1997 wood chipper, Unit 705, is due for replacement in 2018. Project #PW15.05 Priority 3 Important Justification Replacement is scheduled for the 1997 wood chipper. This piece of equipment is utilized by all divisions in Public Works. Because of its age and high engine hours the machine is unreliable and needs costly maintenance and repair. The new chipper will be equipped with new safety features and a Tier 4 compliance engine, making it better for the environment. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name Wood Chipper Category Equipment: PW Equip Type Equipment Contact Public Works Director Department Public Works Total Project Cost:$70,000 Total2018 2019 2020 2021 2022Expenditures 70,00070,000Equip/Vehicles/Furnishings 70,000 70,000Total Total2018 2019 2020 2021 2022Funding Sources 70,00070,000Fleet Management Fund 70,000 70,000Total 81 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 136 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 2010 Elgin street sweeper, Unit 703, is due for replacement in 2020. Project #PW16.02 Priority 3 Important Justification The 2010 street sweeper is scheduled for replacement because of its age and condition. Street sweepers are high wear machines and are scheduled for replacement on a seven to ten year basis. Owning and operating these pieces of equipment beyond this life span is not cost effective as the maintenance and repair costs increase dramatically and the trade-in value decreases. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 7 years Project Name Street Sweeper Category Equipment: PW Equip Type Equipment Contact Public Works Director Department Public Works Total Project Cost:$210,000 Total2018 2019 2020 2021 2022Expenditures 210,000210,000Equip/Vehicles/Furnishings 210,000 210,000Total Total2018 2019 2020 2021 2022Funding Sources 210,000210,000Fleet Management Fund 210,000 210,000Total 82 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 137 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 2011 ToolCat 5610-F, Unit 732, is due for replacement in 2019. Project #PW16.03 Priority 3 Important Justification Currently, the city operates two ToolCat Work Machines. Both ToolCats are utilized year round in all three divisions of Public Works and are the primary pieces of equipment for sidewalk snow removal. The 2011 ToolCat is in need of replacement due to high engine hours and use. The machine is continuously in need of repair which makes it unreliable and no longer cost effective to operate. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 5 years Project Name ToolCat Work Machine Category Equipment: PW Equip Type Equipment Contact Public Works Director Department Public Works Total Project Cost:$58,000 Total2018 2019 2020 2021 2022Expenditures 58,00058,000Equip/Vehicles/Furnishings 58,000 58,000Total Total2018 2019 2020 2021 2022Funding Sources 58,00058,000Fleet Management Fund 58,000 58,000Total 83 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 138 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 2006 Hot Box for asphalt, Unit 729, is due for replacement in 2018. Project #PW16.04 Priority 3 Important Justification The 2006 Hot Box is in need of replacement. This equipment is used to patch potholes throughout the city. It is an asset to the street department because it can keep hot mix warm in cooler temperatures. This allows for early spring patching when potholes are at the peak. This is a heavy use piece of equipment and should be replaced every 10 years. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name Asphalt Hot Box Category Equipment: PW Equip Type Equipment Contact Public Works Director Department Public Works Total Project Cost:$40,000 Total2018 2019 2020 2021 2022Expenditures 40,00040,000Equip/Vehicles/Furnishings 40,000 40,000Total Total2018 2019 2020 2021 2022Funding Sources 40,00040,000Fleet Management Fund 40,000 40,000Total 84 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 139 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Three 2001 tilt-deck trailers, Units 718, 719 and 720, are due for replacement 2019. Project #PW16.05 Priority 3 Important Justification Three 2001 trailers are in need of replacement. These trailers are utilized by all maintenance divisions in Public Works. Due to structural defects caused by years of use, the trailers will no longer pass the annual D.O.T. inspections and are unsafe for use. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 15 years Project Name Three Tilt-Deck Trailers Category Equipment: PW Equip Type Equipment Contact Public Works Director Department Public Works Total Project Cost:$30,000 Total2018 2019 2020 2021 2022Expenditures 30,00030,000Equip/Vehicles/Furnishings 30,000 30,000Total Total2018 2019 2020 2021 2022Funding Sources 30,00030,000Fleet Management Fund 30,000 30,000Total 85 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 140 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 1987 maintenance tractor, Unit 712, is due for replacement in 2019. Project #PW17.01 Priority 3 Important Justification The 1987 maintenance tractor is in need of replacement due to its age and needed engine repairs that exceed the value of the tractor. This unit will be replaced with a multi-purpose machine that can be utilized by all division in Public Works to perform functions such as snow removal on trails, sidewalks, parking lots and summer maintenance including trail mowing, boulevard mowing and miscellaneous construction work throughout the city. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 15 years Project Name Tractor/Utility Machine Category Equipment: PW Equip Type Equipment Contact Public Works Director Department Public Works Total Project Cost:$75,000 Total2018 2019 2020 2021 2022Expenditures 75,00075,000Equip/Vehicles/Furnishings 75,000 75,000Total Total2018 2019 2020 2021 2022Funding Sources 75,00075,000Fleet Management Fund 75,000 75,000Total 86 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 141 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 2007 Jacobsen mower, Unit 660, is due for replacement in 2020. Project #PW17.02 Priority 3 Important Justification The 2007 mower is due for replacement. This is the largest mower in the park maintenance fleet. It cuts a 16 foot path and is utilized every day during the mowing season throughout the parks system. This machine has high engine hours and is showing heavy wear. It is inefficient and no longer cost effective to operate. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 7 years Project Name 16' Park Mower Category Equipment: PW Equip Type Equipment Contact Public Works Director Department Public Works Total Project Cost:$90,000 Total2018 2019 2020 2021 2022Expenditures 90,00090,000Equip/Vehicles/Furnishings 90,000 90,000Total Total2018 2019 2020 2021 2022Funding Sources 90,00090,000Fleet Management Fund 90,000 90,000Total 87 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 142 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 2009 1 1/2-ton utility truck, Unit 612, is due for replacement in 2021. Project #PW17.03 Priority 3 Important Justification The 2009 1 1/2-ton utility truck is due for replacement. This is the primary truck used in the utility department. It is equipped with a crane for maintenance of the city's nine sanitary sewer lift stations. The truck has high miles and the crane system is becoming unreliable and is often out of service. Without this unit in service lift station pumps are unable to be maintained. This could result in costly sanitary sewer back-ups and overflows that could have an impact on residents and the environment. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 12 years Project Name 1 1/2-Ton Utility Truck Category Vehicles Type Equipment Contact Public Works Director Department Public Works Total Project Cost:$90,000 Total2018 2019 2020 2021 2022Expenditures 90,00090,000Equip/Vehicles/Furnishings 90,000 90,000Total Total2018 2019 2020 2021 2022Funding Sources 90,00090,000Fleet Management Fund 90,000 90,000Total 88 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 143 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 2005 single-axle plow truck, Unit 532, is due for replacement in 2021. Project #PW17.04 Priority 2 Very Important Justification The 2005 model year single-axle plow truck is in need of replacement due to high miles and maintenance costs. This unit is one of eight single- axle trucks in the fleet. This truck is an intergral piece of equipment in the fleet for the street maintenance division. It is utilized year round. In summer, the truck is used for patching and paving streets. In winter, it is used every snow/ice event for treating and plowing city streets. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 15 years Project Name Single-Axle Plow Truck Category Vehicles Type Equipment Contact Public Works Director Department Public Works Total Project Cost:$230,000 Total2018 2019 2020 2021 2022Expenditures 230,000230,000Equip/Vehicles/Furnishings 230,000 230,000Total Total2018 2019 2020 2021 2022Funding Sources 230,000230,000Fleet Management Fund 230,000 230,000Total 89 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 144 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The 2001 asphalt paver, Unit 725, is due for replacement in 2021. Project #PW17.05 Priority 2 Very Important Justification The 2001 asphalt paving machine is in need of replacement. The paver is utilized by the street department to pave city streets, parking lots, park trails and other miscellaneous asphalt areas throughout the city campus and facilities. This machine has many high wear moving parts and hydraulic lines that become worn out over time and are not repairable. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name Asphalt Paver Category Equipment: PW Equip Type Equipment Contact Public Works Director Department Public Works Total Project Cost:$56,000 Total2018 2019 2020 2021 2022Expenditures 56,00056,000Equip/Vehicles/Furnishings 56,000 56,000Total Total2018 2019 2020 2021 2022Funding Sources 56,00056,000Fleet Management Fund 56,000 56,000Total 90 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 145 of 226 Street Construction DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 146 of 226 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 147 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The Farrell/Ferndale Area streets are proposed to be fully reconstructed in 2018. Full street reconstruction projects generally include the replacement of the road pavement, installation of concrete curb and gutter, expansion of stormwater facilities, sanitary sewer repairs, watermain repairs, and pedestrian improvements. Project #PW09.08 Priority 1 Critical Justification The streets just east of 3M and north of Conway Ave. are in need of full street reconstruction including significant drainage improvements. Most streets have no curbing and water cannot properly be channeled out of the street section. Storm water pipe and BMPs will be required in the neighborhood. Infiltration basins, rainwater gardens, and other techniques will have to be explored to address drainage and treatment deficiencies. The proposed project will also include new trails and sidewalks. The following streets are included in the improvements: Margaret Ave., 5th Ave., Fremont Ave., Farrell St., Ferndale St., Ferndale St., Conway Service Dr., Mayhill Rd., and 7th St. The project includes $30,000 for fog seal preventative maintenance treatment (area to be determined) and $100,000 for sanitary sewer main lining (location to be determined). 2.3 miles of streets, Average PCI: 35/100 Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name Farrell/Ferndale Area Street Improvements Category Street Construction Type Improvement Contact Public Works Director Department Street Department Total Project Cost:$7,160,000 Total2018 2019 2020 2021 2022Expenditures 7,060,0007,060,000Construction/Maintenance 7,060,000 7,060,000Total Prior 100,000 Total Total2018 2019 2020 2021 2022Funding Sources 3,128,3003,128,300Bonds GO Improvement 838,700838,700Bonds GO Special Assessment 798,000798,000City of St. Paul Water Dept 1,453,0001,453,000Environmental Utility Fund 571,000571,000Sanitary Sewer Fund 271,000271,000Water - WAC Fund 7,060,000 7,060,000Total Prior 100,000 Total 91 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 148 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The Dennis/McClelland Area streets are proposed to be fully reconstructed in 2020. Full street reconstruction projects generally include the replacement of the road pavement, installation of concrete curb and gutter, expansion of stormwater facilities, sanitary sewer repairs, watermain repairs and pedestrian improvements. Project #PW09.10 Priority 1 Critical Justification These streets have continued to deteriorate and will require a full reconstruction with the addition of concrete curb and gutter. The following streets are included in the improvements: Sterling St., James Dr., McClelland St., Ferndale St., Dennis Ln., O'Day St., Mayer Ln., Farrell St., and Mayhill Rd. Unique storm water treatment methods will be required in this area near Battle Creek along with installation of drainage infrastructure. The proposed project will also include pavement replacement, sidewalks, and trails. Project includes $30,000 for fog seal preventative maintenance treatment (area to be determined) and $100,000 for sanitary sewer main lining (location to be determined). The $100,000 in 2018 is for a regional drainage/hydraulic study to be completed prior to the feasibility study. In 2014, city crews were required to do an emergency repair to a portion of the storm sewer network that drains directly to Battle Creek. Mayer Lane sites approximately 35 feet above Battle Creek. Improving the storm sewer system in this area will be challenging due to the significant grade difference between the neighborhood and Battle Creek. Therefore, it is proposed to complete a pre-study of potential drainage mitigation that will be needed along Battle Creek. 2.04 miles of streets, Average PCI: 31/100 Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name Dennis/McClelland Area Street Improvements Category Street Construction Type Improvement Contact Public Works Director Department Street Department Total Project Cost:$6,730,000 Total2018 2019 2020 2021 2022Expenditures 6,730,000100,000 100,000 6,530,000Construction/Maintenance 100,000 100,000 6,530,000 6,730,000Total Total2018 2019 2020 2021 2022Funding Sources 2,857,500100,000 2,757,500Bonds GO Improvement 1,010,5001,010,500Bonds GO Special Assessment 742,000742,000City of St. Paul Water Dept 1,455,000100,000 1,355,000Environmental Utility Fund 414,000414,000Sanitary Sewer Fund 251,000251,000Water - WAC Fund 100,000 100,000 6,530,000 6,730,000Total 92 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 149 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The Sterling Street Bridge is an existing timber bridge that crosses Fish Creek and is proposed to be replaced in 2019. Project #PW12.02 Priority 1 Critical Justification The bridge on Sterling Street in south Maplewood is in need of replacement in the coming years and programmed for a 2019 replacement in accordance with the council adopted bridge program. State Bridge Funds are expected to pay for a majority of the cost of the project once it qualifies for funding as a result of its condition. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 50 years Project Name Sterling Street Bridge Replacement Category Street Construction Type Improvement Contact Public Works Director Department Street Department Total Project Cost:$1,400,000 Total2018 2019 2020 2021 2022Expenditures 1,300,0001,300,000Construction/Maintenance 1,300,000 1,300,000Total Prior 100,000 Total Total2018 2019 2020 2021 2022Funding Sources 115,000115,000Bonds MSA 1,185,0001,185,000State Grants 1,300,000 1,300,000Total Prior 100,000 Total 93 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 150 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The existing interchange, including the bridge and ramps, located at the intersection of I694 and White Bear Avenue are proposed to be replaced in 2020 by Ramsey County. Project #PW15.08 Priority 2 Very Important Justification According to Ramsey County's TIP (Transportation Improvement Plan) the county is leading an interchange project at the intersection of White Bear Avenue and Interstate 694. This project is currently proposed to be constructed in 2020. The city's estimated share for these would be scheduled to be paid in the year the project is constructed. It should be noted that the date for this project is subject to change and this project serves as a place holder for the proposed project. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 50 years Project Name White Bear Ave / I694 Interchange Project Category Street Construction Type Improvement Contact Public Works Director Department Street Department Total Project Cost:$15,500,000 Total2018 2019 2020 2021 2022Expenditures 15,500,00015,500,000Construction/Maintenance 15,500,000 15,500,000Total Total2018 2019 2020 2021 2022Funding Sources 500,000500,000City of White Bear Lake 500,000500,000Municipal State Aid 14,500,00014,500,000Ramsey County 15,500,000 15,500,000Total 94 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 151 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The Ferndale/Ivy Area streets are proposed to be fully reconstructed in 2019. Full street reconstruction projects generally include the replacement of the road pavement, installation of concrete curb and gutter, expansion of stormwater facilities, sanitary sewer repairs, watermain repairs, and pedestrian improvements. Existing storm water drainage issues will fixed as part of this project. Project #PW15.11 Priority 1 Critical Justification The streets north of Maryland Ave. and west of Century Ave. are in poor condition and in need of repair. The streets include Dennis St., Farrell St., Ferndale St., Hawthorne Ave., Ivy Ave., and Mayhill Rd. These streets have concrete curb and gutter which for most areas will remain. However, there are know areas with poor drainage where the curb and gutter will need to be replaced. The existing pavement will be removed and replaced. The proposed project will also include sidewalks, trails, and storm water quality features. The project includes $30,000 for fog seal preventative maintenance treatment (area to be determined) and $100,000 for sanitary sewer main lining (location to be determined). The $100,000 in 2017 is for a regional drainage/hydraulic study to be completed prior to the feasibility study. In response to the July 11, 2011 flood, the city identified 22 area for flood remediation projects. The city has completed 15 projects and has leveraged partnerships with Ramsey Washington Metro Watershed District and Ramsey to help fund and complete several of the projects. The proposed study will evaluate 4 of the reaming 6 areas. Identified flood remediation work from this study will then be incorporated into the street improvement project to give a comprehensive approach to improvements needed in this specific area. 1.18 miles of streets, Average PCI: 43/100 Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name Ferndale/Ivy Area Street Improvements Category Street Construction Type Improvement Contact Public Works Director Department Street Department Total Project Cost:$3,830,000 Total2018 2019 2020 2021 2022Expenditures 3,730,000100,000 3,630,000Construction/Maintenance 100,000 3,630,000 3,730,000Total Prior 100,000 Total Total2018 2019 2020 2021 2022Funding Sources 2,039,310100,000 1,939,310Bonds GO Improvement 524,790524,790Bonds GO Special Assessment 96,90096,900City of St. Paul Water Dept 710,600710,600Environmental Utility Fund 261,500261,500Sanitary Sewer Fund 96,90096,900Water - WAC Fund 100,000 3,630,000 3,730,000Total Prior 100,000 Total 95 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 152 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Ramsey County is proposing to fully reconstruct Rice Street between County Road B and Larpenteur Avenue in 2020. This will be a county led project. Full street reconstruction projects generally include the replacement of the road pavement, installation of concrete curb and gutter, expansion of stormwater facilities, sanitary sewer repairs, watermain repairs and pedestrian improvements. Project #PW16.06 Priority 2 Very Important Justification According to Ramsey County's TIP (Transportation Improvement Plan) the county is leading a street reconstruction project on Rice Street from Larpenteur Avenue to County Road B. This project is currently proposed to be constructed in 2020. The city's estimated share for these would be scheduled to be paid in the year the project is constructed. It should be noted that the date for this project is subject to change and this project serves as a place holder for the proposed project. Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name Rice Street Category Street Construction Type Improvement Contact Public Works Director Department Street Department Total Project Cost:$5,460,000 Total2018 2019 2020 2021 2022Expenditures 5,460,0005,460,000Construction/Maintenance 5,460,000 5,460,000Total Total2018 2019 2020 2021 2022Funding Sources 200,000200,000City of Roseville 200,000200,000Municipal State Aid 5,060,0005,060,000Ramsey County 5,460,000 5,460,000Total 96 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 153 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The street pavement in the Mailand/Crestview Forest area is proposed to be rehabilitated in 2019 due to poor pavement condition. Typically, the street pavement is milled or reclaimed and new pavement is installed. This type of rehabilitation work is done in areas with concrete curb and gutter which have underground utilities in good condition. Project #PW16.10 Priority 1 Critical Justification The streets lying north of Hillwood Drive and east of Highpoint Curve are in poor condition and in need of repair. The streets include Mailand Road, Deer Ridge Lane, Crestview Forest Drive, O'Day Street, O'Day Circle, Pond Avenue, O'Day Lane, Mary Lane and Mary Street. These streets have existing curb and gutter which will be maintained and the existing pavement is proposed to be reclaimed and replaced. The proposed project will be partially funded by the gas franchise fee. 2.06 miles of street, Average PCI 42/100 Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name Mailand/Crestview Forest Area Pavement Category Street Construction Type Improvement Contact Public Works Director Department Street Department Total Project Cost:$1,400,000 Total2018 2019 2020 2021 2022Expenditures 1,400,00060,000 1,340,000Construction/Maintenance 60,000 1,340,000 1,400,000Total Total2018 2019 2020 2021 2022Funding Sources 699,660699,660Bonds GO Special Assessment 70,00070,000Environmental Utility Fund 546,34060,000 486,340Gas Franchise Fee 42,00042,000Sanitary Sewer Fund 42,00042,000Water - WAC Fund 60,000 1,340,000 1,400,000Total 97 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 154 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The street pavement in the Schaller area is proposed to be rehabilitated in 2020 due to poor pavement condition. Typically, the street pavement is milled or reclaimed and new pavement is installed. This type of rehabilitation work is done in areas with concrete curb and gutter which have underground utilities in good condition. Project #PW16.11 Priority 1 Critical Justification The streets lying north of Highwood Ave. and south of Linwood Ave. are in poor condition and in need of repair. The streets include Valley View Ave., Lakewood Ct., Lakewood Dr., Marnie Cir., O'Day St., Schaller Dr., Timber Ave., Crestview Dr., Currie Ct., Dahl Ave., Dorland Rd., Dahl Ct., Phylis Ct., Timber Tr., and Linwood Ct. These streets have existing concrete curb and gutter which will be maintained and the existing pavement is proposed to be reclaimed and replaced. The proposed project will be partially funded by the gas franchise fee. 2.28 miles of street, Average PCI 38/100 Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name Schaller Area Pavement Category Street Construction Type Improvement Contact Public Works Director Department Street Department Total Project Cost:$1,550,000 Total2018 2019 2020 2021 2022Expenditures 1,550,00060,000 1,490,000Construction/Maintenance 60,000 1,490,000 1,550,000Total Total2018 2019 2020 2021 2022Funding Sources 793,500793,500Bonds GO Special Assessment 77,50077,500Environmental Utility Fund 586,00060,000 526,000Gas Franchise Fee 46,50046,500Sanitary Sewer Fund 46,50046,500Water - WAC Fund 60,000 1,490,000 1,550,000Total 98 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 155 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The street pavement in the Londin/Highpoint area is proposed to be rehabilitated in 2018 due to poor pavement condition. Typically, the street pavement is milled or reclaimed and new pavement is installed. This type of rehabilitation work is done in areas with concrete curb and gutter which have underground utilities in good condition. Project #PW16.12 Priority 1 Critical Justification The streets lying north of Mailand Rd. and South of Londin Ln. are in poor condition and in need of repair. The streets include Londin Ln., Crestview Dr., Highpoint Curve, King Ave., Pond Ave., and Marnie St. These streets have existing curb and gutter which will be maintained and the existing pavement is proposed to be reclaimed and replaced. The proposed project will be partially funded by the gas franchise fee. 1.73 miles of street, Average PCI 40/100 Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name Londin/Highpoint Area Pavement Category Street Construction Type Improvement Contact Public Works Director Department Street Department Total Project Cost:$1,070,000 Total2018 2019 2020 2021 2022Expenditures 1,010,0001,010,000Construction/Maintenance 1,010,000 1,010,000Total Prior 60,000 Total Total2018 2019 2020 2021 2022Funding Sources 494,868494,868Bonds GO Special Assessment 53,50053,500Environmental Utility Fund 397,432397,432Gas Franchise Fee 32,10032,100Sanitary Sewer Fund 32,10032,100Water - WAC Fund 1,010,000 1,010,000Total Prior 60,000 Total 99 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 156 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The street pavement in the Southcrest/Ferndale area is proposed to be rehabilitated in 2021 due to poor pavement condition. Typically, the street pavement is milled or reclaimed and new pavement is installed. This type of rehabilitation work is done in areas with concrete curb and gutter which have underground utilities in good condition. Project #PW17.06 Priority 1 Critical Justification The streets lying south of Highwood Ave. and east of Sterling St. are in poor condition and in need of repair. The streets include Valley View Ave., Sterling St., South Crest Ave., Dennis St., O'Day St., McCelland St., Ferndale St., and Nemitz Ave. These streets have existing concrete curb and gutter which will be maintained and the existing pavement is proposed to be reclaimed and replaced. The proposed project will be partially funded by the gas franchise fee. 2.56 miles of streets, Average PCI: 41/100 Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name Southcrest/Ferndale Area Pavement Category Street Construction Type Improvement Contact Public Works Director Department Street Department Total Project Cost:$1,730,000 Total2018 2019 2020 2021 2022Expenditures 1,730,00060,000 1,670,000Construction/Maintenance 60,000 1,670,000 1,730,000Total Total2018 2019 2020 2021 2022Funding Sources 738,300738,300Bonds GO Special Assessment 86,50086,500Environmental Utility Fund 801,40060,000 741,400Gas Franchise Fee 51,90051,900Sanitary Sewer Fund 51,90051,900Water - WAC Fund 60,000 1,670,000 1,730,000Total 100 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 157 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The East Shore Drive Area streets are proposed to be fully reconstructed in 2021. Full street reconstruction projects generally include the replacement of the road pavement, installation of concrete curb and gutter, expansion of stormwater facilities, sanitary sewer repairs, watermain repairs, and pedestrian improvements. Project #PW17.08 Priority 1 Critical Justification These streets have continued to deteriorate and will require a full reconstruction with the addition of concrete curb and gutter. The following streets are included in the improvements: East Shore Dr., Adele St., Gordon Ave., Ripley Ave., Sophia Ave., Walter St., Fenton Ave., Phalen Pl., Sophia Ave., and Ide St. This project lies directly north of Lake Phalen. The proposed project will also include pavement replacement, watermain replacement on several of the above streets, and unique storm water treatment methods along with the installation of drainage infrastructure. Project includes $30,000 for fog seal preventative maintenance treatment (area to be determined) and $100,000 for sanitary sewer main lining (location to be determined). 2.33 miles of street, Average PCI: 35/100 Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name East Shore Drive Area Street Improvements Category Street Construction Type Improvement Contact Public Works Director Department Street Department Total Project Cost:$5,470,000 Total2018 2019 2020 2021 2022Expenditures 5,470,000100,000 5,370,000Construction/Maintenance 100,000 5,370,000 5,470,000Total Total2018 2019 2020 2021 2022Funding Sources 2,563,400100,000 2,463,400Bonds GO Improvement 693,400693,400Bonds GO Special Assessment 307,200307,200City of St. Paul Water Dept 1,147,0001,147,000Environmental Utility Fund 484,000484,000Sanitary Sewer Fund 275,000275,000Water - WAC Fund 100,000 5,370,000 5,470,000Total 101 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 158 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description Cope Ave. has existing concrete curb and gutter and is proposed to be partially reconstructed in 2022. Partial street reconstruction projects generally include the replacement of the road pavement, expansion of stormwater facilities, sanitary sewer repairs, watermain repairs, and pedestrian improvements. McMenemy St. currently has bituminous curb and is proposed to be fully reconstructed in 2022. Full street reconstruction projects generally include the replacement of the road pavement, installation of concrete curb and gutter, expansion of stormwater facilities, sanitary sewer repairs, watermain repairs, and pedestrian improvements. Project #PW18.01 Priority 1 Critical Justification Cope Ave. has continued to deteriorate and will require a partial reconstruction. The east section of Cope Ave. is currently four lanes wide with no pedestrian facilities. As part of the partial reconstruction Cope Ave. will be designed to meet the requirement of the City's Living Streets Policy. Cope Ave. improvements will also include pavement replacement and replacement of the existing water main. McMenemy St. has continued to deteriorate and will require a full reconstruction with concrete curb and gutter. McMenemy St. improvements will also include pavement replacement and replacement of the existing water main. Project includes $30,000 for fog seal preventative maintenance treatment (area to be determined) and $100,000 for sanitary sewer main lining (location to be determined). 2.08 miles of streets, Average PCI: 53/100 Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name Cope/McMenemy Street Improvements Category Street Construction Type Improvement Contact Public Works Director Department Street Department Total Project Cost:$6,960,000 Total2018 2019 2020 2021 2022Expenditures 6,960,000100,000 6,860,000Construction/Maintenance 100,000 6,860,000 6,960,000Total Total2018 2019 2020 2021 2022Funding Sources 3,635,660100,000 3,535,660Bonds GO Improvement 995,540995,540Bonds GO Special Assessment 682,800682,800City of St. Paul Water Dept 856,000856,000Environmental Utility Fund 503,000503,000Sanitary Sewer Fund 287,000287,000Water - WAC Fund 100,000 6,860,000 6,960,000Total 102 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 159 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The street pavement in the Gervais area is proposed to be rehabilitated in 2022 due to poor pavement condition. Typically, the street pavement is milled or reclaimed and new pavement is installed. This type of rehabilitation work is done in areas with concrete curb and gutter which have underground utilities in good condition. Project #PW18.02 Priority 1 Critical Justification The streets lying north of Highway 36 and east of Barclay St. are in poor condition and in need of repair. The streets include Gervais Ave., Gervais Ct., Flandrau St., Barclay St., Sextant Ave., Eleventh Ave., and Ariel St. These streets have existing concrete curb and gutter which will be maintained and the existing pavement is proposed to be reclaimed and replaced. The proposed project will be partially funded by the gas franchise fee. 2.10 miles of streets, Average PCI: 47/100 Budget Impact/Other There will be a positive impact on the operating budget due to lower maintenance costs. Useful Life 20 years Project Name Gervais Area Pavement Category Street Construction Type Improvement Contact Public Works Director Department Street Department Total Project Cost:$1,430,000 Total2018 2019 2020 2021 2022Expenditures 1,430,00060,000 1,370,000Construction/Maintenance 60,000 1,370,000 1,430,000Total Total2018 2019 2020 2021 2022Funding Sources 1,030,1331,030,133Bonds GO Special Assessment 71,50071,500Environmental Utility Fund 242,56760,000 182,567Gas Franchise Fee 42,90042,900Sanitary Sewer Fund 42,90042,900Water - WAC Fund 60,000 1,370,000 1,430,000Total 103 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 160 of 226 Capital Improvement Plan City of Maplewood, Minnesota 2018 2022 thru Description The intersection of Roselawn Ave. and Edgerton St. is proposed to be reconstructed from a signalized intersection of a roundabout in 2019. As part of this project the signalized intersection will be replaced with a compact roundabout and a ADA accessable connection from the intersection to Edgerton Elementary School will be installed. The City of Maplewood and Ramsey County, in partnership, applied for and was awarded a Highway Safety Improvement Program (HSIP) grant to help fund this project. Project #PW18.12 Priority 1 Critical Justification The project is located at the intersection of Roselawn Avenue and Edgerton Street. Currently the intersection is controlled by a traffic signal with single lanes of traffic approaching from each direction. Existing grades and vegetation, primarily in the northwest and northeast quadrants, limit intersection sight distance to the point where right turns on red are not permitted for eastbound or southbound traffic. A compact roundabout will be constructed as part of this project along with ADA pedestrian improvements. The HISP grant covers 90% of the estimated construction costs. Budget Impact/Other Useful Life 20 years Project Name Roselawn & Edgerton Intersection Improvements Category Street Construction Type Improvement Contact Public Works Director Department Street Department Total Project Cost:$1,055,000 Total2018 2019 2020 2021 2022Expenditures 100,000100,000Planning/Design 955,000955,000Construction/Maintenance 100,000 955,000 1,055,000Total Total2018 2019 2020 2021 2022Funding Sources 679,500679,500Federal Grants 187,75050,000 137,750Municipal State Aid 187,75050,000 137,750Ramsey County 100,000 955,000 1,055,000Total 104 DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 161 of 226 Prepared by: City of Maplewood Finance Department 1830 County Road B East Maplewood, MN 55109 (651)249-2902 Melinda Coleman, City Manager Ellen Paulseth, Finance Director DRAFT 6/26/2017 E2, Attachment 2 Packet Page Number 162 of 226 FINANCIAL MANAGEMENT POLICIES The City of Maplewood has an important responsibility to its citizens to plan the adequate funding of services desired by the public, to manage the municipal finances wisely, and to carefully account for public funds. The City strives to ensure that it is capable of adequately funding and providing local government services needed by the community. The City will maintain or improve its infrastructure on a systematic basis to insure the maintenance of quality neighborhoods for its citizens. In order to achieve these goals, this plan has the following objectives for the City’s fiscal performance: 1.To be proactive, rather than reactive, in the City’s policy-making efforts to ensure that important decisions are not controlled by financial problems or emergencies. 2.To enhance the City Council’s policy-making ability by providing accurate financial information related to the various authority or service levels provided by the City. 3.To assist in sound management of the City government by providing accurate and timely information on financial condition. 4.To provide sound principles to guide the City Council with decisions that will have significant financial impact on the City. 5.To set forth operational principals that minimize the cost of local government, to the extent consistent with services desired by the public, and minimize financial risk. 6.To utilize revenue policies and forecasting tools to prevent undue or unbalanced reliance on certain revenues, especially property taxes, and that also distribute the cost of municipal services fairly and provide adequate funds to operate desired programs. 7.To provide essential public facilities and prevent deterioration of the City’s infrastructure and various facilities. 8.To protect and enhance the City’s credit rating and prevent default on municipal debts. 9.Ensure the legal use and protection of City funds through a good system of financial and accounting controls. 10. Record expenditures in a manner that allocates to current taxpayers or users the full cost of providing current services. 11. To adopt a balanced budget in the General Fund that will ensure an adequate, stable fund balance. E2, Attachment 3 Packet Page Number 163 of 226 To achieve these objectives the following fiscal policies have been adopted by the City Council to guide the City’s budgeting and financial planning process. Each fiscal policy section includes a statement of purpose and a description of the policy. 1.REVENUE MANAGEMENT POLICY 2.CASH AND INVESTMENTS POLICY 3.RESERVES POLICY 4.OPERATING BUDGET POLICY 5.CAPITAL IMPROVEMENT PLAN POLICY 6.ECONOMIC DEVELOPMENT AUTHORITY FUND POLICY 7.DEBT MANAGEMENT POLICY 8.ACCOUNTING, AUDITING AND FINANCIAL REPORTING POLICY 9.RISK MANAGEMENT POLICY 10. GRANT MANAGEMENT POLICY 11. PUBLIC PURPOSE EXPENDITURE POLICY 12. CAPITAL ASSETS POLICY 13. PROCUREMENT POLICY E2, Attachment 3 Packet Page Number 164 of 226 1. REVENUE MANAGEMENT POLICY It is essential to responsibly manage the City’s revenue sources to provide maximum service value to the community. The most important revenue policy guidelines established by the City Council are for the two major sources of city revenue: property taxes and fees/charges. A. Purpose The purpose of this policy is to establish broad goals to assist the City in managing its revenue. These goals will consider diversification and stabilization; equity; economic development; and collections. i. Diversification The City will strive to maintain a diversified revenue base to prevent fluctuations in revenue. Property taxes add stability to the revenue base, but should not be the sole source of revenue. When possible, the City will seek out new sources of revenue to diversity the tax base. This could include long- term solutions, such as franchise fees or additional fees and charges. Short- term solutions should also be considered, such as a one-time sale of assets. The City will strive to support policies that promote economic development in the City to encourage a diversified local economy and expand the tax base. ii. Equity The City will strive to ensure that funding is derived from a fair, equitable and adequate resource base, while minimizing tax differential burdens. Services having a citywide benefit shall be financed with revenue sources generated from a broad base, such as property taxes and state aids. Services where the customer determines the use should be financed with user fees, charges, and assessments related to the level of service provided. iii. Economic Development The City’s revenue sources should not unduly reduce the City’s economic competitiveness or negatively impact individual choices in the local economy. The City’s overall revenue structure should be designed to recapture some of the financial benefits resulting from economic and community development investments. The City will strive to keep a total revenue mix that encourages growth and keeps Maplewood economically competitive. iv. Collections City staff should engage in vigilant collections of outstanding balances due to the City. However, the cost of collections should not exceed the marginal extra revenue obtained or absorb a large percentage of the amount collected. City staff and collections contractors may write off accounts receivable in amounts of $5.00 or less without Council approval. E2, Attachment 3 Packet Page Number 165 of 226 B. Property Taxes When possible, property tax increases should accommodate incremental adjustments. Further, when discussing property taxes, the City should simultaneously explore other revenue and expenditure alternatives that will maximize the City’s future financial flexibility and ability to provide services. This may include considering options such as debt management, fees and charges, cost allocation, use of reserves, and expenditure cuts. Possible factors for considering an increase in property tax include:  Maintenance of City services.  Long-term protection of the City’s infrastructure.  Meeting legal mandates imposed by outside agencies.  Maintaining adequate fund balance and reserve funds sufficient to maintain or improve the City’s bond rating.  Funding City development and redevelopment projects that will clearly result in future tax base increases. The expenditures of development and redevelopment funds must be in accordance with a defined strategy as shown in the City’s Comprehensive Plan, Capital Improvement Program and other Council documents. Property tax increases to meet other purposes will be based on the following criteria:  A clear expression of community need.  The existence of community partnerships willing to share resources. C. Service Fees and Charges The City will consider service fees and charges wherever appropriate for the purposes of keeping the property tax rate at a minimum and to fairly allocate the full cost of services to the users of those services. Service fees and charges broaden the base to include tax exempt properties, which still have municipal costs associated with the property. Specifically, the City may:  Establish utility rates sufficient to fund both the operating costs and the long-term depreciation and replacement of the utility systems.  As part of the City’s enterprise effort, evaluate City services and pursue actions to accomplish the following:  Find community based partners to share in service delivery.  Make services financially self-supporting or, when possible, profitable.  Annually review City services and identify those for which charging E2, Attachment 3 Packet Page Number 166 of 226 user fees are appropriate. These services will be identified as enterprise services and a policy for establishing fees will be set for each. Included as part of this process may be a market analysis that compares our fees to comparable market cities.  Identify some enterprise services as entrepreneurial in nature. The intent of entrepreneurial services will be to maximize revenues to the extent the market allows.  Waive or offer reduced fees to youth, seniors, community service groups, and other special population groups identified by the Council as requiring preferential consideration based on policy goals. Selected criteria are used to determine the specific rate to charge for a fee for service. The approach for establishing the rate criteria is determined by the policy relating to the fee in the City policies and procedures manual. The rate criteria can be one of five approaches:  Market Comparison Attempt to set fees in the upper quartile of the market.  Maximum set by External Source Fees set by legislation, International Building Code, etc.  Entrepreneurial Approach Fees will be at the top of the market.  Recover the Cost of Service Program will be self-supporting.  Utility Fees A rate study will be updated or reviewed each year. D. Non-recurring and Volatile Revenues Non-recurring revenues should directed towards one-time uses and should not be relied on to fund ongoing programs. Several one-time revenue sources, such as intergovernmental transfers, grants, and insurance dividends are outside of direct City control and must be relied upon conservatively. The City Manager and Finance Director shall ensure that the budget preparation process includes an evaluation of all major non-recurring revenues, in order to minimize reliance on unpredictable revenues for on-going operating costs. Volatile revenues, such as court fines, interest earnings and building permits can produce undependable yields and should not be heavily depended on to fund ongoing programs. High yields from these sources should be treated in a manner similar to non-recurring revenues. Revenues can be considered volatile if they vary by more than 10% from budgetary estimates. E2, Attachment 3 Packet Page Number 167 of 226 2. CASH AND INVESTMENTS POLICY Effective cash management is essential to good fiscal management. Investment returns on funds not immediately required can provide a significant source of revenue for the City. Investment policies must be well founded and uncompromisingly applied in their legal and administrative aspects in order to protect the City funds being invested. A. Purpose The purpose of this policy is to establish the City’s investment objectives and establish specific guidelines that the City will use in the investment of city funds. It will be the responsibility of the Finance Director to invest city funds in order to attain a market rate of return while preserving and protecting the capital of the overall portfolio. Investments will be made, based on statutory constraints, in safe, low risk instruments. B. Scope/Funds This policy applies to the investment of all city funds available for investment and not needed for immediate expenditure. The City will consolidate cash balances from all funds to maximize investment earnings. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. C. Delegation of Authority Authority to manage the investment program is granted to the Finance Director who shall act in accordance with established written procedures and internal controls for the operation of the investment program consistent with this investment policy. Procedures should include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements and collateral/depository agreements. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Finance Director. The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield: i. Safety: Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to minimize the risk of market fluctuations, such as credit risk and interest rate risk. Credit risk is the risk that the borrower will be unable to make their debt service payments to the investors. Interest rate risk is the risk that rates will (for example) rise while the investments you hold have lower rates – if the City were to sell their investments prior to maturity in this case, they would have to sell the investments at a loss. E2, Attachment 3 Packet Page Number 168 of 226 ii. Liquidity: The investment portfolio must remain sufficiently liquid to meet all operating costs that may be reasonably anticipated. The portfolio must be structured so that securities mature concurrent with cash needs to meet anticipated demands. Cash needs will be determined based on cash flow forecasts. iii. Diversification of instruments: A variety of investment vehicles must be used so as to minimize the exposure to risk of loss. The investment portfolio must be diversified by individual financial institution, government agency, or by corporation (in the case of commercial paper) to reduce the exposure to risk of loss. iv. Diversification of maturity dates: Investment maturity dates should vary in order to ensure that the City will have money available when needed. v. Yield: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. D. Oversight The City Manager shall oversee the City’s investment program. The Finance Director will maintain a more detailed and comprehensive investment policy based on the principles established by the City Council and consistent with the most current guidelines within the public sector. On at least an annual basis, the Finance Director shall provide a status report to the City Council. Annually, the City Council shall designate depositories for investment purposes. E. The City shall invest in the following instruments as allowed by Minnesota Statute 118A i. Government Securities: Direct obligations of the federal government or its agencies, with the principal fully guaranteed by the U.S. Government or its agencies. ii. Certificates of Deposit: A negotiable or nonnegotiable instrument issued by commercial banks and insured up to $250,000, or the amount set, by the Federal Deposit Insurance Corporation (FDIC). iii. Repurchase Agreement: An investment that consists of two simultaneous transactions, where an investor purchases securities from a bank or dealer. At the same time, the selling bank or dealer agrees to repurchase the securities at the same price plus interest at some agreed-upon future date. The security purchased is the collateral protecting the investment. E2, Attachment 3 Packet Page Number 169 of 226 iv. Prime Commercial Paper: An investment used by corporations to finance receivables. A short-term (matures in 270 days or less), unsecured promissory note is issued for a maturity specified by the purchaser. Corporations market their paper through dealers who in turn market the paper to investors. The City will only purchase commercial paper issued by U.S. corporations or their Canadian subsidiaries that has been rated highest quality (A1, P1 and F1) by two of three rating agencies. v. State or Local Government Securities: Any security that is a General Obligation of the State of Minnesota or any of its municipalities. vi. Statewide Investment Pools: Statewide investment pools that invest in authorized instruments according to M.S. §118A.04, such as the Minnesota Municipal Money Market (4M) Fund. vii. Money Market Mutual Funds: Money market mutual funds that invest exclusively in U.S. Government and agency issues. F. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business or that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City. G. Internal Controls, Audits, External Controls The Finance Director is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse. Accordingly, compliance with City policies and procedures should be assured by the Finance Director, and addressed through the annual audit (CAFR) process. H. Authorized Financial Institution and Dealer In accordance with Minnesota Statutes §118.02, the responsibility for conducting investment transactions resides with the City Council. Also, the Council shall be responsible for designating the depositories of the funds. Depositories shall be selected through a banking services procurement process, which shall include a comprehensive review of credit characteristics and financial history by the Finance Director or reliance on selection criteria by an independent third party. In selecting depositories, the creditworthiness of the institutions under consideration shall be examined. The City Council shall designate depositories after a recommendation from staff. E2, Attachment 3 Packet Page Number 170 of 226 Only approved security broker/dealers authorized in Minnesota Statutes 118A.06 shall be utilized for safekeeping and custody. All financial institutions and broker/dealers must supply the following as appropriate: i. Audited financial statements; ii. Proof of Financial Industry Regulatory Authority (FINRA) certification, iii. Proof of state registration; iv. Completed broker/dealer questionnaire for firms who are not major regional or national firms; v. Certification of having read the City’s investment policy. I. Broker Representations Municipalities must obtain from their brokers certain representations regarding future investments. The City of Maplewood will provide each broker with information regarding the municipality’s investment restrictions. Before engaging in investment transactions with the City of Maplewood, the supervising officer at the securities broker/dealer shall submit a certification stating that the officer has reviewed the investment policies and objectives, as well as applicable state laws, and agrees to disclose potential conflicts of interest or risk to public funds that might arise out of business transactions between the firm and the City of Maplewood. All financial institutions shall agree to undertake reasonable efforts to preclude imprudent transactions involving the city’s funds. J. Collateralization The City funds must be deposited in financial institutions that provide at least $250,000 in government insurance protection. At no time will deposits in any one institution exceed the insured amount unless such excesses are protected by pledged securities. Pledged securities, computed at market value, will be limited to the following: i. United States Treasury bills, notes or bonds that mature within five years; ii. Issues of United States government agencies guaranteed by the United States government; iii. General obligation securities of any state or local government with taxing powers rated “A” or better, or revenue obligation securities of any state or local government with taxing powers rated AA or better, provided no single issue exceeds $300,000 with maturities not exceeding five years; E2, Attachment 3 Packet Page Number 171 of 226 iv. Irrevocable standby letters of credit issued by Federal Home Loan Banks accompanied by written evidence that the bank’s public debt is rated AA or better; v. Time deposits that are fully insured by any federal agency. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 110 percent (110%) of the market value of principal and accrued interest. Collateral shall be deposited in the name of the City of Maplewood, subject to release by the City’s Finance Director. All certificates of deposit and repurchase agreements purchased by the City shall be held in third-party safekeeping by an institution designated as primary agent. The primary agent shall issue a safekeeping receipt to the City listing the specific instrument rate maturity and other pertinent information. All deposits will be insured or collateralized in accordance with Minnesota Statutes Chapter 118. No other collateral except as designated above will be authorized for use as collateral for City funds. K. Safekeeping and Custody When investments purchased by the City are held in safekeeping by a broker/dealer, they must provide asset protection of $500,000 through the Securities Investor Protection Corporation (SIPC) and at least another $2,000,000 supplemental insurance protection. L. Diversification It is the policy of the City to diversify its investment portfolios to eliminate the risk of loss resulting from the over concentration of assets in a specific maturity, a specific issuer, or a specific class of maturities. The portfolio, as much as possible, will contain both short-term and long- term investments. The City will attempt to match its investments with anticipated cash flow requirements. Liquidity is necessary to pay for recurring operations. Maturities should not be extended beyond the dates necessary to meet these projected liquidity needs and should be staggered in such a way that avoids over concentration in a specific maturity sector. Extended maturities may be utilized to take advantage of higher yields; however, no more than 20% of the total investment portfolio should extend beyond five (5) years and in no circumstance should any extend beyond ten (10) years. The portfolio will reflect diversity by class of maturity and issuer. The following limits are imposed for investments of a specific class: i. Commercial Paper: At any one time, no more than 20% of the total portfolio shall consist of commercial paper investments. Maximum holdings for any one issuer of commercial paper will be 5% of the total portfolio. E2, Attachment 3 Packet Page Number 172 of 226 ii. Certificates of Deposit: At any one time, no more than 70% of the total portfolio shall consist of certificates of deposit. Maximum holdings for any one issuer of a certificate of deposit will be $250,000, or the amount insured by the Federal Deposit Insurance Corporation (FDIC), unless collateral is provided in accordance with this policy and Minnesota Statute Chapter 118. Maximum holdings for any one issuer of collateralized certificates of deposit will be 5% of the total portfolio. iii. Government Securities: At any one time, no more than 70% of the total portfolio shall be invested in obligations of the federal government or its agencies. iv. Repurchase Agreements: At any one time, no more than 5% of the total portfolio shall be invested in repurchase agreements. v. State or Local Government Securities: At any one time, no more than 50% of the total portfolio shall be invested in State or local government securities. Maximum holdings for any one issuer of state or local government securities will be 10% of the total portfolio. vi. Money Market Funds: At any one time, no more than 70% of the total portfolio shall be invested in authorized money market mutual funds. M. Investment Reporting The Finance Director shall prepare an investment report at least quarterly, including a management summary that provides a clear picture of the status of the current investment portfolio and transactions made over the last quarter. The investment reporting function shall include requirements for budgetary reporting, interim reporting, internal reporting, and annual reporting. i. Budgetary Reporting: As part of the annual budget, interest income shall be estimated for all funds based on a formal cash flow forecast. This forecast shall take into account the historical pattern of inflows and outflows of general fund cash, the adopted fiscal policies and any other pertinent factors affecting cash flow. The budget document shall explicitly state the assumptions of the cash flow forecast, the assumed interest rate on short-term investment and the interest estimated for any long-term investments. E2, Attachment 3 Packet Page Number 173 of 226 ii. Interim Reporting: The investment portfolios for the City funds shall be provided to the Council with the periodic budget versus actual reports. These reports shall be sequenced by maturity and shall state the type of investment, annualized rate of return based on the daily interest amount. The Finance Director shall summarize any changes in investment strategy or anticipated variances from the investment income budgeted as part of monthly reporting process. iii. Internal Reporting: Finance Department procedures shall ensure that investment portfolios are maintained on the City’s records system on a daily basis and available to management or the City Council at any time. Management shall be provided investment portfolios monthly together with their budget versus actual reports. iv. Annual Reporting: Within 90 days of the City’s fiscal year end, the Finance Director shall prepare a written comprehensive fiscal report on the investment program and investment activity. This report shall include: a. A summary of the investment activity and rate of return for the fiscal year then ended; b. A discussion of how the year’s investment activity compares to the stated objectives and the budgeted amount; c. A detailed comparison of total rate of return with other benchmarks. Benchmarks for comparison may include: the Minnesota Municipal Money Market fund; other state investment pools that have similar investment restrictions; treasury bill rates that are indicative of a strictly passive investment strategy; performance indexes, as set forth in the Government Finance Officers’ monthly publication of the Public Investor (e.g. the 10 bill index); or any other index that may be deemed appropriate; d. A discussion of the outlook for interest rates and the economic trend for the upcoming year, investment strategies to be implemented and budgetary expectations for investment income. N. Investment Committee The City Council may appoint an investment committee to serve at its pleasure. The mission of the committee shall be to monitor the City’s investment portfolio and make recommendations to the Finance Director and City Manager. The committee shall consist of five members defined as follows: the City Finance Director, the City Manager, two City Council members, and one member of the community who has a background in public finance and no financial connection E2, Attachment 3 Packet Page Number 174 of 226 with the City. The Finance Director shall serve as the facilitator of the committee. The committee shall meet as often as it sees fit, but no less than once per year and no more than once per quarter. O. Interest Earnings Interest earnings will be credited to all major funds with a positive cash balance at the end of each month, based on the average cash balances during that month. Market value adjustments will be credited to the source of the invested monies monthly based on the average cash balances during that month. The City will use the average yield of the two-year Treasury note as a benchmark for performance comparisons. P. Conclusion The intent of this policy is to ensure the safety of all City funds. The main goal of the City will be to achieve a market rate of return while maintaining the safety of its principal. E2, Attachment 3 Packet Page Number 175 of 226 3. RESERVES POLICY A. Purpose It is important for the financial stability of the City to maintain reserve funds for unanticipated expenditures or unforeseen emergencies, as well as to provide adequate working capital for current operating needs to avoid short-term borrowing. The Reserve Policy of the City is managed closely with the City’s Debt Management Policy. The City may choose to consider paying cash for capital projects that can be anticipated and planned for in advance. Therefore the City’s reserve levels fluctuate, in part, based on capital project plans. In establishing an appropriate fund balance, the City needs to consider the demands of cash flow, capital asset purchases, need for emergency reserves, ability to manage fluctuations of major revenue sources, credit rating and long- term fiscal health. B. Classifications Fund balances in governmental funds are reported in classifications that disclose constraints for which amounts in those funds can be spent. These fund balance classifications apply to governmental funds: i. Nonspendable: Consists of amounts that are not in spendable form, such as inventories and prepaid items. ii. Restricted: Consists of amounts related to externally imposed constraints, established by creditors, grantors or regulatory agencies. iii. Committed: Consists of amounts that have internally imposed constraints, established by resolution of the City Council. The committed amounts cannot be used for any other purpose unless the Council removes or changes the specified use by resolution of the City Council. iv. Assigned: Consists of amounts that are intended to be used for a specific purpose; intent can be expressed by the City Council or by a delegate of the City Council. v. Unassigned: Consists of the residual classification for the General Fund and also reflects negative residual amounts in other funds. C. Authorization The City Council authorizes the Finance Director and/or City Manager to assign fund balance that reflects the City’s intended use of the specified funds. When both restricted and unrestricted resources are available for use, it is the City’s E2, Attachment 3 Packet Page Number 176 of 226 policy to use restricted resources first, and then use unrestricted resources as needed. When unrestricted resources are available for use, it is the City’s policy to use resources in the following order: 1) committed, 2) assigned, 3) unassigned. D. Fund Balance Policies i. General Fund: The General Fund is established to account for all revenues and expenditures which are not required to be accounted for in other funds. Revenue sources include property taxes, license and permit fees, fines and forfeits, program revenues, intergovernmental revenues, investment earnings, and transfers in. The General Fund’s resources finance a wide range of functions, including the operations of general government, public safety, and public works. The General Fund will have committed fund balances at year end for purchase order encumbrances and budget carryovers. The General Fund may have a portion of its fund balance classified as nonspendable if there are long-term receivables, inventories, or prepaid items. The General Fund is the only fund that can have any unassigned fund balance. The City’s unassigned fund balance in the General Fund shall be maintained at a minimum level of 40% of annual general fund operating expenditures. ii. Special Revenue Funds: Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. Governmental accounting standards require that substantial inflows of revenues into a special revenue fund be either restricted or committed in order for the fund to be considered a special revenue fund. The City will maintain fund balances in the Special Revenue Funds at a level which will avoid issuing short-term debt to meet the cash flow needs of the current operating budget. iii. Debt Service Funds: Debt service fund balances are considered restricted. The resources being accumulated in the funds are for payments of principal and interest maturing in current and future years. The City’s fund balance in the Debt Service fund shall be at a minimum level of 50% of annual debt service expenditures. Because the majority of annual debt service is paid on February 1 and August 1 of each year, funds must be available for payment of February 1 debt service. iv. Capital Project Funds: Capital project fund balances are considered restricted or committed. The resources being accumulated are for current and future projects. Capital project funds E2, Attachment 3 Packet Page Number 177 of 226 are used to account for and report financial resources that are restricted, committed, or assigned to expenditures for capital assets. The fund balances in these funds within the Capital Improvement Budget vary annually based upon the timing of construction projects. The City will maintain reserves in the Capital Project Funds at a minimum level sufficient to provide adequate working capital for current expenditure needs. The maximum amount of reserves should include the amount necessary to pay for future capital projects. Future capital projects must be identified and quantified in a written finance plan for the fund in the City’s annual budget document. v. Enterprise Funds: The City will maintain reserves in the Enterprise Funds at a minimum level sufficient to provide adequate working capital for current expenditure needs. Generally, the City shall strive for a minimum of 3-months operating cash in these funds. The maximum amount of reserves should include the amount necessary to pay for future capital needs. Future capital projects must be identified and quantified in a written finance plan for the fund in the City’s annual budget document. Rates and fees in these funds will be analyzed annually for a five year period to provide for level rate changes. Enterprise Fund net position (equity) will be classified in one of the following categories: a. Net Investment in Capital Assets The component of net position, which is the difference between the Assets and deferred outflows of resources and the Liabilities and deferred inflows of resources of Enterprise Funds, that consists of capital assets less both accumulated depreciation and the outstanding balance of debt that is directly attributable to the acquisition, construction or improvement of the capital assets. b. Restricted The component of net position that consists of assets with constraints placed on their use by either external parties or through constitutional provisions or enabling legislation. c. Unrestricted The difference between the Assets and deferred outflows of resources and the Liabilities, deferred inflows of resources and net position of Enterprise Funds that is not reported as Net investment in capital assets or Restricted net position. E2, Attachment 3 Packet Page Number 178 of 226 vi. Internal Service Funds: These funds are used to allocate common costs among the various funds and programs of the city. Deficits and surpluses are allowed however the goal is to maintain reserves at 10% of budgeted expenditures. vii. Stabilization Arrangements: Stabilization arrangements are defined as setting aside amounts for use in emergency situations or when revenue shortages or budgetary imbalances arise. The City will set aside amounts by resolution as deemed necessary that can only be expended when certain circumstances under which a need for stabilization arises. The need for stabilization will only be utilized for situations that are not expected to occur routinely. viii. Committed Specific Revenue Sources in Special Revenue Funds: The specific revenue source of each special revenue fund and the specific purposes for which they are committed are as follows, less any amounts that are classified as nonspendable or restricted by their nature: Special Revenue Fund Specific Revenue Sources Committed For Charitable Gambling Tax Charitable Gambling Taxes Economic Development Recreation Programs 100% of Fund Balance Parks and Recreation Police Services 100% of Fund Balance Public Safety Tree Preservation 100% of Fund Balance Public Works Taste of Maplewood 100% of Fund Balance Economic Development Cable Television 100% of Fund Balance Communications Maplewood EDA 100% of Fund Balance Economic Development The State and Federal Grants Funds are subject to externally enforceable legal restrictions and are classified as restricted. E2, Attachment 3 Packet Page Number 179 of 226 4. OPERATING BUDGET POLICY A. Purpose The operating budget is the annual financial plan for funding the costs of City services and programs. The general operating budget includes the General Fund, Special Revenue Funds, and Capital Project Funds. Enterprise operations are budgeted in separate Enterprise Funds. B. Balanced Budget The City Manager shall submit a balanced budget for the General Fund in which appropriations shall not exceed the total of the estimated revenues and available fund balance. Balanced budget is defined as a budget in which current revenues plus net operating transfers and one-time use of excess reserves will be sufficient to support budgeted expenditures. One-time revenues or use of excess reserves will not be used to fund on-going expenditures. One-time funding sources shall only be used to fund capital improvements, equipment, or other one-time expenditures. The City will provide for all current expenditures with current revenues. The City will avoid all budgetary procedures that balance current expenditures at the expense of meeting future years’ budgets, such as postponing expenditures, rolling over short-term debt, and using reserves to balance the operating budget. C. Budget Period The City’s budget year is the calendar year. The City legally adopts an annual budget for the General Fund. Budgets for Special Revenue Funds, Debt Service Funds, Capital Project Funds and Enterprise Funds are adopted for management purposes only. D. Basis of Budgeting The modified accrual basis will be used for all of the Governmental Funds in the budget. The accrual basis will be used for the budgets of the Enterprise Funds. The basis of budgeting is the same as the basis of accounting used in the City’s audited financial statements. E. Budget Amendment Process Budget appropriations are by department total within the General Fund rather than by account. Budget changes that involve the transfer of appropriations among accounts only require the approval of the City Manager or designee. Council approval is required for budget changes that involve a transfer of appropriations between funds or from contingency accounts. The budget changes can be made at any Council meeting. For budget changes that can be E2, Attachment 3 Packet Page Number 180 of 226 approved by the City Manager or designee, the department head must complete a budget transfer request form on which the following is indicated: budget transfer amount, accounts involved, purpose, justification, date approved by department head, and department head initials. This form is submitted to the Finance Director for review. Upon approval by the Finance Director, a copy of the form is given to the department head. F. Long-Term Financial Forecasts The City Manager will coordinate the development of the five-year capital improvement plan budget and ten-year outlook with the development of the operating budget. Operating costs associated with new capital improvements will be projected and included in future operating budget forecasts. The budget will provide for adequate maintenance of the capital plant and equipment, and for their orderly replacement. The impact on the operating budget from any new programs or activities being proposed should be minimized by providing funding with newly created revenues whenever possible. G. Budget Form and Information Excess revenues from a specific fiscal year will be placed into the City’s reserves in a manner consistent with the City’s fund balance reserve policies. The operating budget will describe the goals to be achieved and the services and programs to be delivered for the level of funding. All unencumbered appropriations for the City’s operating budget lapse at year end. Amounts reserved for encumbrances are classified as assigned fund balance. Budget carryovers from a prior fiscal year must be approved by the City Manager, Finance Director and City Council. H. Level of Control The City Manager will ensure that a budgetary control system is in place to adhere to the adopted budget. The City Manager may approve the transfer of budget amounts between accounts within a department’s budget. City Council approval is required for any increase in a department’s budget. The budget changes can be made at any Council meeting. The legal level of budgetary control is at the department level in budgeted funds. I. Performance Measurement The Finance Department will provide regular monthly reports comparing actual revenues and expenditures to the budgeted amounts. Each year the City will strive to obtain the Government Finance Officers Association Distinguished Budget Award. The City’s annual Budget shall be made available to citizens and the public upon request and available on the City’s website. The City shall maintain transparency and accountability of its financial resources and assets. E2, Attachment 3 Packet Page Number 181 of 226 5. CAPITAL IMPROVEMENT PLAN POLICY A. Purpose The demand for services and the cost of building and maintaining the City’s infrastructure continues to increase. The City cannot afford to accomplish every project or meet every service demand. Therefore, a methodology must be employed that provides a realistic projection of community needs, the meeting of those needs, and a framework to support City Council prioritization of those needs. That is the broad purpose of the CIP. B. Scope The CIP includes the scheduling of public improvements for the community over a five- year period and takes into account the community’s financial capabilities as well as its goals and priorities. A “capital improvement” is defined as any major nonrecurring expenditure for physical facilities of government. Typical expenditures are the cost of land acquisition or interest in land, construction of roads, utilities and parks. Vehicles and equipment can be covered in a CIP or covered separately under an equipment schedule. The CIP is directly linked to goals and policies, land use, and community facility sections of the Comprehensive Plan since these sections indicate general policy of development, redevelopment, and maintenance of the community. C. CIP Development Process  Compile and prioritize projects. Staff will consolidate and prioritize recommended projects into the proposed Capital Improvement Plan.  Devise proposed funding sources for proposed projects. Proposed funding sources will be clearly stated for each project.  Project and analyze total debt service related to the total debt of the City.  A debt study will be provided, summarizing the combined property tax impact of all the existing and proposed debt. On an annual basis, the City Council will evaluate the proposed CIP for the following:  Project Prioritization;  Funding Source Acceptability;  Acceptable Financial Impact on Tax Levy, Total Debt, and Utility Rate Levels;  The City should annually consider a variety of financing options, including issuing equipment certificates, cash financing, tax-exempt leasing, or direct bank investment as appropriate financing mechanisms to meet capital needs. E2, Attachment 3 Packet Page Number 182 of 226 6. ECONOMIC DEVELOPMENT AUTHORITY POLICY A. Purpose The Economic Development Authority (EDA) was created by the City Council, who acted to appoint the members of the City council to serve as the Board of Commissioners. Under M.S. Chapter 469, Economic Development, cities are permitted to establish an EDA. M.S. § 469.107 gives authority to the City Council to levy a tax up to 0.01813 percent of estimated market value in the City. The Revenue Management Policy of the City, as included in this Financial Management Plan, sets policy for when a tax levy may be considered. The EDA is subject to the statutory levy limits of the City. This policy section establishes the amount of tax levy that will be considered for the EDA. B. Funding The City Council may annually appropriate money to the EDA from a tax levy or other available source. The appropriation can be equivalent to the maximum that could be provided by a tax levy for economic development purposes. The annual tax levy shall be set based on the amount needed when combined with other available sources achieves the funding level set by this policy. To provide other sources (non-tax) of funding to the EDA, the City Council shall annually review the fund balance in the General Fund to determine whether sufficient unreserved fund balance is available for transfer from the General Fund to the EDA. The decision shall be made at the time the annual EDA tax levy is established. If other sources of revenue are not available, the EDA may request the tax levy at the maximum allowed. C. Procedure for Using Funds Expenditures may be made from the EDA based on the following criteria: 1. The EDA appropriates the funds as part of the annual budget, or 2. The EDA authorizes an amendment to the EDA budget outside of the annual appropriation process. E2, Attachment 3 Packet Page Number 183 of 226 7. DEBT MANAGEMENT POLICY A. Purpose The purpose of the debt policy is to ensure that debt is used wisely and that future financial flexibility remains relatively unconstrained. Debt is an important mechanism to fund capital expenditures. It can reduce long-term costs due to inflation, prevent lost opportunities, and equalize the costs of improvements to present and future constituencies. Debt management is an integral part of the financial management of the City. Adequate resources must be provided for the repayment of debt, and the level of debt incurred by the City must be effectively controlled to amounts that are manageable and within levels that will maintain or enhance the City’s credit rating. A goal of debt management is to stabilize the overall debt burden and future tax levy requirements to ensure that issued debt can be repaid and prevent default on any municipal debt. A high debt level places a financial burden on taxpayers and can create economic problems for the community. The debt policies ensure that the City’s outstanding debt does not weaken the City’s financial structure, provides manageable limits on debt, and allows for the best possible credit rating. B. Policy Wise and prudent use of debt provides fiscal and service advantages. Overuse of debt places a burden on the fiscal resources of the City and its taxpayers. The following guidelines provide a framework and limit on debt utilization: i. Conditions for Issuance a. The City will confine long-term borrowing to capital improvements, equipment, or projects that have a life of at least five years and cannot be financed from current revenues. b. Net general obligation debt will not exceed the statutory limit of 3% of the estimated market value of taxable property in the City, as required by M.S. § 475.53. c. The City shall use a competitive bidding process for the sale of debt unless the use of a negotiated process is warranted due to adverse market conditions, timing requirements, or a unique pledge or debt structure. The City will award competitively issued debt on the true interest cost (TIC) basis. d. The City should strongly consider market conditions (i.e., interest rates, construction market) when planning for the issuance of debt. The City should consider issuing debt, rather than paying cash, when interest rates are lower. E2, Attachment 3 Packet Page Number 184 of 226 e. Debt should be structured in a manner that distributes costs and benefits appropriately. Intergenerational equity aspects should be considered when financing capital assets. The debt payments should be distributed over the useful life of the asset. f. Long-term forecasts should support the assumption that the City will be able to repay the debt without causing financial distress. g. Interfund borrowing for periods of more than one year shall only be undertaken for capital expenditures. A payment schedule for the borrowed amounts shall be established by the City Council. Interest charges for interfund loans utilizing tax increment bonds will be in accordance with Minnesota Statutes, §469.178, Subd 7. ii. Restrictions on Debt Issuance a. Where possible, the City will issue revenue (including general obligation backed revenue) or other self-supporting type bonds instead of general obligation bonds. b. The City will not use long-term debt for current operations. c. The City should not issue debt with a longer amortization period than the life of the asset being financed. d. When possible, the City should use pay-as-you-go financing for equipment and other minor capital assets. iii. Financial Limitations a. The City will strive to keep the total maturity length of general obligation bonds below 20 years and structure the bonds to allow for retirement of at least 50% of the principal within 2/3 of the term of the bond issue. b. Bond rating categories shall be used as a means of assessing the City’s financial condition. The City will strive to achieve and maintain a ratio of governmental funds debt service to expenditures that will result in an adequate, or better than adequate, debt and contingent liability profile rating from the rating agencies. c. The City will strive to limit the amount of net direct outstanding debt at or below the range of $900 to $1,600 per capita. E2, Attachment 3 Packet Page Number 185 of 226 d. The City will maintain regular communications with bond rating agencies about its financial condition and will follow a policy of full disclosure in every financial report and bond statement. The City will comply with Securities and Exchange Commission (SEC) reporting requirements. e. The City is committed to providing continuing disclosure to certain financial and operating data and material event notices as required by Securities and Exchange Commission (SEC) Rule 15c2-12. The Finance Department shall be responsible for the preparation of all disclosure documents and releases required under Rule 15c2-12. f. When feasible, the City will use refunding mechanisms to reduce interest costs and evaluate the use of debt reserves to lower overall annual debt service. Refunding of outstanding debt shall only be considered when present value savings of at least 3.0% of the principal amount of the refunded bonds are produced, according to Minnesota statutes. Savings from refundings will be distributed evenly over the life of the refunded bonds unless special circumstances warrant a different savings structure. g. Retirement funds will be examined annually to ensure adequate balances and funding progress. h. The City should maintain the highest credit rating possible. iv. Professional Service Providers a. Municipal financial advisors should be selected through a process of evaluating formal proposals every 5 years. Selection should be based on, but not limited to, experience with the type, size, and structure of the bonds typically issued, ability to commit sufficient time to accomplish necessary tasks, and lack of potential conflicts of interest. b. Proposals for bond counsel should be solicited and considered on an occasional or as-needed basis. Consideration should be given to experience with municipal debt, ability to commit sufficient time to accomplish necessary tasks, and lack of potential conflicts of interest. c. The City should strategically maintain good relations with rating agencies and a positive perception in the marketplace. E2, Attachment 3 Packet Page Number 186 of 226 C. Conduit Debt Policy The City of Maplewood is granted the power to issue conduit revenue bonds and other conduit revenue obligations under Minnesota Statutes, Section 469.152-469.165, as amended, and Minnesota Statutes, Chapter 462C, as amended. The Maplewood City Council, being aware that such financing may prevent the emergence of blighted land, excessive unemployment and the need for redevelopment financing from the State and Federal governments, has expressed its support for the use of such financing but has reserved the right to approve or reject projects on a case-by-case basis. The following criteria have been developed as a guide for review of applications: i. Criteria a. The project is to be compatible with the overall development plans and objectives of the City and neighborhood where the project is located. b. New businesses locating in Maplewood must show new tax base being generated by the project. c. Locating in areas of the City that the City wishes to develop, redevelop, or which in any way complements any development plans or policy of the City, will constitute a prime purpose under these guidelines. It is also the City’s intent to assist in business expansions or relocations within the City where it can be shown that such would have a substantial, favorable impact on employment, tax base, or both. d. It is the City’s intent to assist new or existing businesses in the acquisition of existing facilities, where such acquisition will maintain the stability of the tax base, employment, or both. e. The project must not put a burden on existing City services or utilities beyond that which can be reasonably and economically accommodated. f. The applicant (and/or the lessee) must have a good financial standing, show a substantial net worth or equity in the project, and have an acceptable earnings history or pro forma. Projects are to show, in the application for financing, an owner equity or other collateral (such as a bank Letter of Credit, a Bankers Acceptance, Pledge of a Certificate of Deposit, insurance company guarantee, or similar security) which will be satisfactory to the end-lender or rating agency, all determined with reference to total project costs. E2, Attachment 3 Packet Page Number 187 of 226 g. The credit rating and method of offering conduit* bonds or notes of the City are important considerations. The City will not entertain applications for such financings unless (i) the debt is rated investment grade by a nationally recognized rating agency or (ii) the debt is sold in a private placement. Debt will be considered sold in a private placement (i) if no advertising or solicitation of the general public occurs, and (ii) if the bonds are initially sold to not more than ten purchasers (not including any underwriter or placement agent as a purchaser) and (iii) the City receives written certification from each initial purchaser (or each underwriter or placement agent based on its reasonable belief) that: (a) such purchaser has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and the risks of the debt, and (b) such purchaser is not purchasing for more than one account or with a view to distributing the debt. In addition, for a private placement either (a) all bonds or notes (except for one bond or note) must always remain in minimum denominations of not less than $100,000, or (b) investment letters from not only each initial purchaser, but from any subsequent purchaser must be obtained which contains the above described certifications from the purchasers. Any offering material for a private placement must prominently state in effect that: “THE CITY OF MAPLEWOOD HAS NOT ASSUMED ANY RESPONSIBILITY TO REVIEW THIS OFFERING MATERIAL AND HAS NO RESPONSIBILITY FOR ITS ACCURACY OR COMPLETENESS. THE CITY HAS NO FINANCIAL OBLIGATION OF ANY NATURE WITH RESPECT TO THE OFFERED BONDS.” Finally, to qualify as a private placement the financing documents must require annual financial statements from the benefited private party (or the ultimate provider of credit) to be delivered to each investor (or a trustee). h. *The term “conduit” refers to any type of City revenue obligation the proceeds of which are loaned to a private party and for which the City has no financial obligation. i. Applications for acquisition of or replacement of machinery and equipment will be discouraged unless in conjunction with a totally new business in Maplewood, a physical plant expansion of an existing business, or where it is shown that the equipment acquisition is essential to the continued operation of the business in Maplewood. Also, it is the City’s intent to assist where possible in the acquisition of pollution control equipment for any new or existing business being required to meet mandated standards. j. A further permitted use under these guidelines are projects, whether profit or nonprofit, engaged in providing health care services, including hospitals, nursing homes, and related medical facilities, E2, Attachment 3 Packet Page Number 188 of 226 when either of the following findings can be made:  Number of new jobs is increased.  The project would provide a facility or service considered desirable or necessary by the community. The following procedures have been developed to facilitate the application for financing: ii. Procedures a. The applicant shall make an application for financing on forms available from the Finance Department of the City of Maplewood. The completed application is to be returned to the Finance Director, accompanied by the processing fee, whereupon the application will be forwarded to the City Council with a staff recommendation. Specific findings shall be made and recited regarding the criteria as well as satisfaction of public purposes of the applicable statutes. b. The application cannot be considered by the City until tentative City Code findings and requirements have been made with respect to zoning, building plans, platting, streets and utility services. c. The applicant is to select qualified financial consultants and/or underwriters, as well as legal counsel, to prepare all necessary documents and materials. The City may rely on the opinion of such experts and the application shall be accompanied by a financial analysis (pro forma income statement, debt service coverage, mortgage terms, etc.) by the underwriter as to the economic feasibility of the project and the underwriter’s ability to market the financing. Financial material submitted is to also include most recent fiscal year-end, audited, financial statements of the applicant and/or of any major lessee tenant, if readily available. d. Further, in the case of the tax exempt mortgage placements, the applicant will be required to furnish the City, before passage of the Final Resolution, a comfort letter (but not necessarily a letter of commitment) from the lending institution, to the affect that said lending institution has reviewed the economic feasibility of the project, including the financial responsibility of the guarantors and find that, in their professional judgment, it is an economically viable project. e. The applicant shall furnish along with the application, a description of the project, plat plan, rendering of proposed building, etc., and a brief description of the applicant company, all in such form as shall E2, Attachment 3 Packet Page Number 189 of 226 be required at the time of application. This data, as necessary, may be furnished to members of the City Council for background information. f. If an allocation of bonding authority is required under Minnesota Statutes, Chapter 474A, as amended, the applicant shall be required to pay any required application fee and provide any required application deposit as specified in Chapter 474A, without regard to whether the application fee or application deposit will be refunded. g. The applicant shall covenant in the applicable conduit bond documents to comply with all applicable requirements of the Internal Revenue Code of 1986, as amended (the “Code”), and the applicable Treasury Regulations, including, but not limited to: (i) the arbitrage and rebate requirements of Section 148 of the Code; and (ii) the qualified bonds provisions of Sections 141(e), 142, 143, 144, and 145 of the Code. The applicant shall be the party responsible for monitoring the conduit bonds for compliance with such requirements and to remediate nonqualified bonds in accordance with the requirements of the Code and applicable Treasury Regulations. The applicant shall be the party responsible for monitoring compliance with the requirements of Section 148 of the Code. h. The applicant shall covenant in the applicable conduit bond documents to reimburse the City for all costs paid or incurred by the City (including the fees of attorneys, financial advisors, accountants, and other advisors) as a result of the City’s response to or compliance with an audit, inspection, or compliance check (random or otherwise), by the Internal Revenue Service, the Minnesota Department of Revenue, the Minnesota Office of the State Auditor, or any other governmental agency with respect to the conduit bonds or the project financed with the proceeds of the conduit bonds. The following administrative fees and provisions apply to the application for financing: iii. Administrative Fees and Provisions a. The City Council reserves the right to deny any application for financing at any stage of the proceedings prior to adopting the final resolution authorizing issuance of the industrial development financing. The City Council may waive any provision of this Conduit Bonds Policy if the City Council determines that such waiver is in the best interests of the City. E2, Attachment 3 Packet Page Number 190 of 226 b. The City is to be reimbursed, and held harmless, for and from any out-of-pocket costs related to the actual or proposed issuance of conduit revenue bonds. In addition, a nonrefundable processing fee of $2,500 must be submitted with the application. Upon closing, an administrative fee is due and payable to the City based on the following schedule: On the first $10,000,000 .50% of par On portion in excess of $10,000,000 .10% of par c. In the case of a refinancing, the fee shall be calculated at 50% of the above schedule. The City will be reimbursed for any technical changes to a bond issue previously issued at 25% of the above schedule. d. All applications and supporting materials and documents shall remain the property of the City. Note that all such materials may be subject to disclosure and/or public review under applicable provisions of State law. e. The Finance Department shall, report all conduit debt issues in the Comprehensive Annual Financial Report in accordance with Generally Accepted Accounting Principles and shall report any material events with regard to all conduit debt issued by the City, and still outstanding, to the City Council. D. Post-Issuance Compliance Policy for Tax-Exempt Governmental Bonds The City of Maplewood issues tax-exempt governmental bonds to finance capital improvements. As an issuer of tax-exempt governmental bonds, the City is required by the terms of Sections 103 and 141-150 of the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury Regulations promulgated thereunder (the “Treasury Regulations”), to take certain actions subsequent to the issuance of such bonds to ensure the continuing tax-exempt status of such bonds. In addition, Section 6001 of the Code and Section 1.6001- 1(a) of the Treasury Regulations, impose record retention requirements on the City with respect to its tax-exempt governmental bonds. This Post- Issuance Compliance Procedure and Policy for Tax-Exempt Governmental Bonds (the “Policy”) has been approved and adopted by the City to ensure that the City complies with its post-issuance compliance obligations under applicable provisions of the Code and Treasury Regulations. i. Effective Date and Term. The effective date of this Policy is the date of approval by the City Council of the City and shall remain in effect until E2, Attachment 3 Packet Page Number 191 of 226 superseded or terminated by action of the City Council of the City. This Policy amends and restates the Post- Issuance Compliance Procedure and Policy for Tax-Exempt Governmental Bonds adopted by the City Council of the City on June 10, 2012. ii. Responsible Parties. The Finance Director of the City shall be the party primarily responsible for ensuring that the City successfully carries out its post-issuance compliance requirements under applicable provisions of the Code and Treasury Regulations. The Finance Director will be assisted by the staff of the Finance Department of the City and by other City staff and officials when appropriate. The Finance Director of the City will also be assisted in carrying out post-issuance compliance requirements by the following organizations: a. Bond Counsel (the law firm primarily responsible for providing bond counsel services for the City); b. Municipal Advisor (the organization primarily responsible for providing financial advisor services to the City); c. Paying Agent (the person, organization, or City officer primarily responsible for providing paying agent services for the City); and d. Rebate Analyst (the organization primarily responsible for providing rebate analyst services for the City). The Finance Director shall be responsible for assigning post-issuance compliance responsibilities to members of the Finance Department, other staff of the City, Bond Counsel, Paying Agent, and Rebate Analyst. The Finance Director shall utilize such other professional service organizations as are necessary to ensure compliance with the post- issuance compliance requirements of the City. The Finance Director shall provide training and educational resources to City staff who are responsible for ensuring compliance with any portion of the post- issuance compliance requirements of this Policy. iii. Post-Issuance Compliance Actions. The Finance Director shall take the following post- issuance compliance actions or shall verify that the following post-issuance compliance actions have been taken on behalf of the City with respect to each issue of tax- exempt governmental bonds issued by the City: a. The Finance Director shall prepare a transcript of principal documents (this action will be the primary responsibility of Bond Counsel). E2, Attachment 3 Packet Page Number 192 of 226 b. The Finance Director shall file with the Internal Revenue Service (the “IRS”), within the time limit imposed by Section 149(e) of the Code and applicable Treasury Regulations, an Information Return for Tax-Exempt Governmental Obligations, Form 8038-G (this action will be the primary responsibility of Bond Counsel). c. The Finance Director shall prepare an “allocation memorandum” for each issue of tax-exempt governmental bonds in accordance with the provisions of Treasury Regulations, Section 1.148-6(d)(1), that accounts for the allocation of the proceeds of the tax-exempt bonds to expenditures not later than the earlier of:  eighteen (18) months after the later of (A) the date the expenditure is paid, or (B) the date the project, if any, that is financed by the tax-exempt bond issue is placed in service; or  the date sixty (60) days after the earlier of (A) the fifth anniversary of the issue date of the tax-exempt bond issue, or (B) the date sixty (60) days after the retirement of the tax-exempt bond issue. Preparation of the allocation memorandum will be the primary responsibility of the Finance Director (in consultation with the Municipal Advisor and Bond Counsel). d. The Finance Director, in consultation with Bond Counsel, shall identify proceeds of tax-exempt governmental bonds that must be yield-restricted and shall monitor the investments of any yield-restricted funds to ensure that the yield on such investments does not exceed the yield to which such investments are restricted. e. In consultation with Bond Counsel, the Finance Director shall determine whether the City is subject to the rebate requirements of Section 148(f) of the Code with respect to each issue of tax-exempt governmental bonds. In consultation with Bond Counsel, the Finance Director shall determine, with respect to each issue of tax-exempt governmental bonds of the City, whether the City is eligible for any of the temporary periods for unrestricted investments and is eligible for any of the spending exceptions to the rebate requirements. The Finance Director shall contact the Rebate Analyst (and, if E2, Attachment 3 Packet Page Number 193 of 226 appropriate, Bond Counsel) prior to the fifth anniversary of the date of issuance of each issue of tax-exempt governmental bonds of the City and each fifth anniversary thereafter to arrange for calculations of the rebate requirements with respect to such tax-exempt governmental bonds. If a rebate payment is required to be paid by the City, the Finance Director shall prepare or cause to be prepared the Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, Form 8038-T, and submit such Form 8038-T to the IRS with the required rebate payment. If the City is authorized to recover a rebate payment previously paid, the Finance Director shall prepare or cause to be prepared the Request for Recovery of Overpayments Under Arbitrage Rebate Provisions, Form 8038-R, with respect to such rebate recovery, and submit such Form 8038-R to the IRS. iv. Procedures for Monitoring, Verification, and Inspections. The Finance Director shall institute such procedures as the Finance Director shall deem necessary and appropriate to monitor the use of the proceeds of tax-exempt governmental bonds issued by the City, to verify that certain post-issuance compliance actions have been taken by the City, and to provide for the inspection of the facilities financed with the proceeds of such bonds. At a minimum, the Finance Director shall establish the following procedures: a. The Finance Director shall monitor the use of the proceeds of tax- exempt governmental bonds to: (i) ensure compliance with the expenditure and investment requirements under the temporary period provisions set forth in Treasury Regulations, Section 1.148- 2(e); (ii) ensure compliance with the safe harbor restrictions on the acquisition of investments set forth in Treasury Regulations, Section 1.148-5(d); (iii) ensure that the investments of any yield- restricted funds do not exceed the yield to which such investments are restricted; and (iv) determine whether there has been compliance with the spend-down requirements under the spending exceptions to the rebate requirements set forth in Treasury Regulations, Section 1.148-7. b. The Finance Director shall monitor the use of all bond-financed facilities in order to: (i) determine whether private business uses of bond-financed facilities have exceeded the de minimus limits set forth in Section 141(b) of the Code as a result of leases and subleases, licenses, management contracts, research contracts, naming rights agreements, or other arrangements that provide special legal entitlements to nongovernmental persons; and (ii) determine whether private security or payments that exceed the E2, Attachment 3 Packet Page Number 194 of 226 de minimus limits set forth in Section 141(b) of the Code have been provided by nongovernmental persons with respect to such bond-financed facilities. The Finance Director shall provide training and educational resources to any City staff who have the primary responsibility for the operation, maintenance, or inspection of bond-financed facilities with regard to the limitations on the private business use of bond-financed facilities and as to the limitations on the private security or payments with respect to bond-financed facilities. c. The Finance Director shall undertake the following with respect to each outstanding issue of tax-exempt governmental bonds of the City: (i) an annual review of the books and records maintained by the City with respect to such bonds; and (ii) an annual physical inspection of the facilities financed with the proceeds of such bonds, conducted by the Finance Director with the assistance with any City staff who have the primary responsibility for the operation, maintenance, or inspection of such bond-financed facilities. v. Record Retention Requirements. The Finance Director shall collect and retain the following records with respect to each issue of tax- exempt governmental bonds of the City and with respect to the facilities financed with the proceeds of such bonds: (i) audited financial statements of the City; (ii) appraisals, demand surveys, or feasibility studies with respect to the facilities to be financed with the proceeds of such bonds; (iii) publications, brochures, and newspaper articles related to the bond financing; (iv) trustee or paying agent statements; (v) records of all investments and the gains (or losses) from such investments; (vi) paying agent or trustee statements regarding investments and investment earnings; (vii) reimbursement resolutions and expenditures reimbursed with the proceeds of such bonds; (viii) allocations of proceeds to expenditures (including costs of issuance) and the dates and amounts of such expenditures (including requisitions, draw schedules, draw requests, invoices, bills, and cancelled checks with respect to such expenditures); (ix) contracts entered into for the construction, renovation, or purchase of bond-financed facilities; (x) an asset list or schedule of all bond- financed depreciable property and any depreciation schedules with respect to such assets or property; (xi) records of the purchases and sales of bond-financed assets; (xii) private business uses of bond- financed facilities that arise subsequent to the date of issue through leases and subleases, licenses, management contracts, research contracts, naming rights agreements, or other arrangements that provide special legal entitlements to nongovernmental persons and copies of any such agreements or instruments; (xiii) arbitrage rebate E2, Attachment 3 Packet Page Number 195 of 226 reports and records of rebate and yield reduction payments; (xiv) resolutions or other actions taken by the governing body subsequent to the date of issue with respect to such bonds; (xv) formal elections authorized by the Code or Treasury Regulations that are taken with respect to such bonds; (xvi) relevant correspondence, including letters, faxes or emails, relating to such bonds; (xvii) documents related to guaranteed investment contracts or certificates of deposit, credit enhancement transactions, and financial derivatives entered into subsequent to the date of issue; (xviii) bidding of financial products for investment securities; (xix) copies of all Form 8038- Ts, Form 8038-Rs, and Form 8038-CPs filed with the IRS and any other forms or documents filed with the IRS; (xx) the transcript prepared with respect to such tax-exempt governmental bonds, including but not limited to (a) official statements, private placement documents, or other offering documents, (b) minutes and resolutions, orders, or ordinances or other similar authorization for the issuance of such bonds, and (c) certification of the issue price of such bonds; and (xxi) documents related to government grants associated with the construction, renovation, or purchase of bond-financed facilities. The records collected by the Finance Director shall be stored in any format deemed appropriate by the Finance Director and shall be retained for a period equal to the life of the tax-exempt governmental bonds with respect to which the records are collected (which shall include the life of any bonds issued to refund any portion of such tax-exempt governmental bonds or to refund any refunding bonds) plus three (3) years. The Finance Director shall also collect and retain reports of any IRS examination of the City or any of its bond financings. vi. Remedies. In consultation with Bond Counsel, the Finance Director shall become acquainted with the remedial actions (including redemption or defeasance) under Treasury Regulations, Section 1.141-12, to be utilized in the event that private business use of bond- financed facilities exceeds the de minimus limits under Section 141(b)(1) of the Code. In consultation with Bond Counsel, the Finance Director shall become acquainted with the Tax Exempt Bonds Voluntary Closing Agreement Program described in Notice 2008-31, 2008-11 I.R.B. 592, to be utilized as a means for an issuer to correct any post-issuance infractions of the Code and Treasury Regulations with respect to outstanding tax-exempt bonds. vii. Continuing Disclosure Obligations. In addition to its post-issuance compliance requirements under applicable provisions of the Code and Treasury Regulations, the City has agreed to provide continuing disclosure, such as annual financial information and material event notices, pursuant to a continuing disclosure certificate or similar E2, Attachment 3 Packet Page Number 196 of 226 document (the “Continuing Disclosure Document”) prepared by Bond Counsel and made a part of the transcript with respect to each issue of bonds of the City that is subject to such continuing disclosure requirements. The Continuing Disclosure Documents are executed by the City to assist the underwriters of the City’s bonds in meeting their obligations under Securities and Exchange Commission Regulation, 17 C.F.R. Section 240.15c2-12, as in effect and interpreted form time to time (“Rule 15c2-12”).The continuing disclosure obligations of the City are governed by the Continuing Disclosure Documents and by the terms of Rule 15c2-12. The Finance Director is primarily responsible for undertaking such continuing disclosure obligations and to monitor compliance with such obligations. viii. Other Post-Issuance Actions. If, in consultation with Bond Counsel, Municipal Advisor, Paying Agent, Rebate Analyst, the City Manager, the City Attorney, or the City Council, the Finance Director determines that any additional action not identified in this Policy must be taken by the Finance Director to ensure the continuing tax-exempt status of any issue of governmental bonds of the City, the Finance Director shall take such action if the Finance Director has the authority to do so. If, after consultation with Bond Counsel, Municipal Advisor, Paying Agent, Rebate Analyst, the City Manager, the City Attorney, or the City Council, the Finance Director and the City Manager determine that this Policy must be amended or supplemented to ensure the continuing tax-exempt status of any issue of governmental bonds of the City, the City Manager shall recommend to the City Council that this Policy be so amended or supplemented. ix. Taxable Governmental Bonds. Most of the provisions of this Policy, other than the provisions of Section 7, are not applicable to governmental bonds the interest on which is includable in gross income for federal income tax purposes. On the other hand, if an issue of taxable governmental bonds is later refunded with the proceeds of an issue of tax-exempt governmental refunding bonds, then the uses of the proceeds of the taxable governmental bonds and the uses of the facilities financed with the proceeds of the taxable governmental bonds will be relevant to the tax-exempt status of the governmental refunding bonds. Therefore, if there is any reasonable possibility that an issue of taxable governmental bonds may be refunded, in whole or in part, with the proceeds of an issue of tax- exempt governmental bonds then, for purposes of this Policy, the Finance Director shall treat the issue of taxable governmental bonds as if such issue were an issue of tax-exempt governmental bonds and shall carry out and comply with the requirements of this Policy with respect to such taxable governmental bonds. The Finance Director E2, Attachment 3 Packet Page Number 197 of 226 shall seek the advice of Bond Counsel as to whether there is any reasonable possibility of issuing tax-exempt governmental bonds to refund an issue of taxable governmental bonds. x. Qualified 501(c)(3) Bonds. If the City issues bonds to finance a facility to be owned by the City but which may be used, in whole or in substantial part, by a nongovernmental organization that is exempt from federal income taxation under Section 501(a) of the Code as a result of the application of Section 501(c)(3) of the Code (a “501(c)(3) Organization”), the City may elect to issue the bonds as “qualified 501(c)(3) bonds” the interest on which is exempt from federal income taxation under Sections 103 and 145 of the Code and applicable Treasury Regulations. Although such qualified 501(c)(3) bonds are not governmental bonds, at the election of the Finance Director, for purposes of this Policy, the Finance Director shall treat such issue of qualified 501(c)(3) bonds as if such issue were an issue of tax-exempt governmental bonds and shall carry out and comply with the requirements of this Policy with respect to such qualified 501(c)(3) bonds. E2, Attachment 3 Packet Page Number 198 of 226 8. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING POLICY A. Purpose The key to effective financial management is to provide accurate, current, and meaningful information about the City’s operations to guide decision making and enhance and protect the City’s financial position. B. Policy i. The City’s accounting system will maintain records on a basis consistent with generally accepted accounting standards (GAAP) and principles for local government accounting as set forth by the Government Accounting Standards Board (GASB) and in conformance with the State Auditor’s requirements per State Statutes. This allows for the modified accrual basis of accounting for populations exceeding 2,500, or cash basis for smaller communities. ii. The City will establish and maintain a high standard of accounting practices. iii. The City will follow a policy of full disclosure written in clear and understandable language in all reports on its financial condition. iv. The Finance Department will provide timely monthly and annual financial reports to users. v. An independent public accounting firm will perform an annual audit and issue an opinion on the City’s financial statements. vi. Annually the City Council and staff will meet with the Auditors to review the audit report. vii. Periodic financial reports on budget performance will be provided to the City Council monthly. viii. The City shall annually submit the Comprehensive Annual Financial Report (CAFR) to the Government Finance Officers Association (GFOA) for the purpose of earning the Certificate of Achievement for Excellence in Financial Reporting. ix. The City’s CAFR shall be made available to citizens and the general public upon request and on the City’s website. The City shall strive to maintain full transparency and accountability of all of its financial resources and assets. E2, Attachment 3 Packet Page Number 199 of 226 x. The City Council may appoint an audit committee for the purpose of providing independent review and oversight of the City’s financial reporting processes, framework of internal control, and independent auditors. The Committee will consist of the City Manager, Finance Director, and two members of the City Council. The Committee will establish guidelines for operation and scope of work. E2, Attachment 3 Packet Page Number 200 of 226 9. RISK MANAGEMENT POLICY A. Purpose A comprehensive risk management plan seeks to manage the risks of loss encountered in the everyday operations of an organization. Risk management involves such key components as risk avoidance, risk reduction, risk assumption, and risk transfers through the purchase of insurance. The purpose of establishing a risk management policy is to help maintain the integrity and financial stability of the City, protect its employees from injury, and reduce overall costs of operations. B. Policy i. The City will maintain a risk management program that minimizes the impact of legal liabilities, natural disasters or other emergencies through the following activities: a. Loss prevention - prevent losses where possible. b. Loss control - reduce or mitigate losses. c. Loss financing - provide a means to finance losses. d. Loss information management - collect and analyze data to make prudent prevention, control and financing decisions. ii. The City will review and analyze all areas of risk in order to, whenever possible, avoid and reduce risks or transfer risks to other entities. Of the risks that must be retained, it shall be the policy to fund the risks which the City can afford and transfer all other risks to insurers. iii. The City will maintain an active safety committee comprised of City employees. iv. The City will periodically conduct educational safety and risk avoidance programs within its various divisions. v. The City will, on an ongoing basis, analyze the feasibility of self-funding and other cooperative funding options in lieu of purchasing outside insurance in order to provide the most cost-effective coverage. vi. The Finance Director will maintain effective internal control policies designed to help safeguard the City’s assets. vii. Staff will report to the Council annually on the results of the City’s risk management program for the preceding year. E2, Attachment 3 Packet Page Number 201 of 226 10. GRANT MANAGEMENT POLICY A. Policy i. The City will aggressively pursue all available grant opportunities. Each grant shall be evaluated on the long-term financial impact to the City. The City will only accept grants for one-time or capital items or when the continued funding of the program can be incorporated into the City’s future budgets. ii. All grants and other federal and state funds shall be managed to comply with the laws, regulations, and guidance of the grantor. iii. The wishes and instructions of the donor will be strongly considered when managing and expending gifts and donation. iv. The Finance Department must be notified of all grant applications prior to submission of the grant application. The Finance Department must also be notified of all related requests for reimbursement at the time of request. E2, Attachment 3 Packet Page Number 202 of 226 11. PUBLIC PURPOSE EXPENDITURE POLICY A. Purpose The City Council recognizes that public funds may only be spent if the expenditure meets a public purpose and the expenditure relates to the governmental purpose for which the City of Maplewood was created. The meaning of “public purpose” is constantly evolving. The Minnesota Supreme Court has followed a broad approach and has generally concluded that “public purpose” means an activity that meets ALL of the following standards:  The activity will primarily benefit the community as a body.  The activity is directly related to functions of government.  The activity does not have as its primary objective the benefit of a private interest whether profit or not-for-profit. This policy is intended to provide guidelines regarding which expenditures are for public purposes and authorized in accordance with the City’s annual budget process, and which expenditures are not considered to fall within the public purpose definition and are therefore not allowed. There is a public benefit in ensuring high employee productivity and morale. B. Responsibility The City Manager is the responsible authority overseeing all City expenditures and as such is the chief purchasing agent for the City. Responsibility for administering this Public Purpose Expenditure Policy has been delegated to the Finance Department. Further, all officers and employees authorized by their Department to make purchases for the benefit of their respective departments are responsible for complying with this policy and corresponding procedures. C. Policy Expenditures of public funds must comply with the public purpose standards defined above. When reviewing an expenditure to verify the standards have been met, the City Manager, or his/her designee, should consider the time of day the event is held, the business purpose of the event, whether the event was intended to attract non-City employees, the frequency of the event, and the reasonableness of the cost. The following guidelines address specific examples of public expenditures, but examples are not meant to be all-inclusive. E2, Attachment 3 Packet Page Number 203 of 226 i. Examples of Permitted Expenditures for Meals and Refreshments Use of City funds in reasonable amounts for meals and/or refreshments for elected and appointed city officials and employees are permitted in the following circumstances, with Department Head approval:  City-sponsored events of a community-wide interest where staff are required to be present (e.g., 4th of July Festival, National Night Out, Citizens Police Academy).City council, boards and commissions meetings held during or adjacent to a meal hour.  Meetings related to City business at which the attendees include non-city representatives.  Professional association meetings, conferences and training when meals are included as part of the registration or program fee, or in accordance with the travel policy.  Election judge training meetings.  Annual employee recognition and appreciation events (e.g., service awards, de minimis food and beverage, employee Christmas breakfast.  Annual recognition events for volunteer and non-employees (e.g., annual fire department banquet and volunteer appreciation lunch).  Fire department meetings and in-house training sessions.  Multi-departmental meetings scheduled during or adjacent to a meal hour when no other meeting time is available.  Work activities requiring continuous service when it is not possible to break for meals (e.g., election days, water main breaks, emergency snow removal, time-sensitive public safety responses).  Healthy snacks and incentives of moderate value provided to attendees of safety, health, and wellness programs for City employees.  Events recognizing completion of a significant work-related project (City Manager approval required). E2, Attachment 3 Packet Page Number 204 of 226 ii. Examples of Other Permitted Expenditures  Up to $100 may be used toward a retirement or farewell recognition event when an employee retires or resigns after a minimum of 10 years with the City. The funds may be used for a cake, beverages, decorations, and a plaque. The funds may not be used for a gift.  Uniforms, clothing or apparel that is considered necessary for safety or for visible staff recognition by the public (e.g. safety footwear and eyewear for maintenance personnel, shirts purchased to identify staff leadership status at events).  Staff time and equipment use for city sponsored employee events as approved by City Council and/or City Manager as allowed by state statute (e.g. set-up for annual employee picnic).  City expenditures for non-profit organizations allowed by state statute. iii. Prohibited Expenditures Use of City funds for meals and/or refreshments for elected and appointed City officials and employees are prohibited:  Food and refreshments for routine work meetings.  Alcoholic beverages.  Employee functions or celebrations that are solely social in nature (e.g., birthdays, holiday luncheon, ice cream social).  Fundraisers for non-City related events (e.g., Chamber of Commerce).  Participation in optional activities unless included as part of an overall conference registration fee (e.g. optional golf rounds, sporting events, concerts).  Employee-sponsored fundraising events (e.g., charitable giving campaign).  For funeral flower arrangements upon death of an employee, elected official, or one of their immediate family members.  Clothing or apparel that is not considered necessary for safety or for visible staff recognition by the public (e.g. sweatshirts for a job E2, Attachment 3 Packet Page Number 205 of 226 well done, departmental shirts given to staff to promote team spirit).  Employee coffee and supplies, coffee services iv. Permitted Use of Assets Specific City assets such as equipment may be used by City employees for personal reasons only when City management has established the following:  Costs and wear resulting from use of the assets are reasonable and minimized.  Administrative controls are in place to ensure that the use is appropriate and not abused.  There is a documented/demonstrated City benefit by such usage (e.g. such as the Mobile Device Policy or Information Security Policy) as approved by the City Manager. Such permitted use may include:  Incidental and de minimis use of City-owned electronic equipment such as City-owned mobile devices, tablets, copiers, etc. as specifically covered under other City policies.  Incidental and de minimis use of non-motorized tools, such as hammers and wrenches. v. Prohibited Use of Assets Examples of use of City assets for personal use is prohibited in the following circumstances:  City employees washing personal autos at the public works facility car wash.  Employees borrowing City-owned non-motorized or motorized tools for personal use. vi. Documentation All expenses allowed above must be fully documented. The expected documentation will include: date and time of the event, business reason for the event (agenda from a meeting is sufficient), staff and E2, Attachment 3 Packet Page Number 206 of 226 non-city representatives in attendance, and a receipt for the actual purchase. Supervisor approval and written documentation is required for use of City assets. Failure to provide sufficient documentation may result in a denial of the expense. Any expenditure for meals or refreshments that exceeds $250 for one event must have prior, written authorization by the Department Head, before the purchase is made. Any expenditure for meals or refreshments that exceeds $500 for one event must have prior, written authorization by the City Manager, before the purchase is made. Failure to obtain the necessary authorization may result in denial of the claim. vii. Special Requests From time to time, there may be an event that is a proper public expenditure, but that is not contemplated by the policy above. Departments may submit to the City Manager, or the City Manager’s designee, a request for such a public expenditure in writing. This request must show how the expenditure is related to a public purpose as stated in the Purpose section above. Only expenditures that meet all of the findings in the Purpose section above may be approved. viii. Periodic Review This policy shall be reviewed at least once every five years by the City Manager or designee. E2, Attachment 3 Packet Page Number 207 of 226 12. CAPITAL ASSETS POLICY A. Purpose It is essential for financial reporting and cost accounting purposes that City departments follow a uniform policy for capitalizing expenditures. The purpose of the capital assets policy is provide a plan for the replacement and purchase of capital assets without significantly impacting the annual property tax levy. B. Capitalization Thresholds The City will maintain a schedule of individual capital assets with values in excess of the amounts shown below and an estimated useful life of greater than two years: Asset Type Threshold Land and land improvements Always Construction in Progress Always Easements $ 50,000 Buildings and building improvements $ 50,000 Infrastructure $100,000 Machinery and Equipment $ 5,000 Intangible Assets $ 50,000 Capital assets purchased through the issuance of debt should be capitalized and depreciated over their estimated useful life, regardless of cost. C. Recording Capital Assets Capital assets should be recorded and reported at historical cost. When the historical cost of a capital asset is not practicably determinable, the estimated historical cost of the asset should be determined by appropriate methods. Estimated historical cost should be identified in the records, including the basis of determination. Donated capital assets should be recorded at fair value at the time of acquisition. D. Contributed (Donated) Capital Acceptance of contributions of capital assets shall be in accordance with applicable Minnesota Statutes and shall be approved by the City Council. Contributed capital assets should be recorded and depreciated in the same manner as all other capital assets. In addition, capital assets acquired through contribution from an outside source should be identified in the records of the City, including documentation of the actual or estimated value and the basis of determination. For financial reporting purposes, depreciation for contributed capital shall be recorded separately from depreciation on other capital assets. E2, Attachment 3 Packet Page Number 208 of 226 E. Intangible Assets Intangible assets possess three characteristics:  Lack of physical substance,  Initial useful life in excess of one year, and  Nonfinancial in nature. Examples of intangible assets include easements, land use rights, patents, trademarks, copyrights, or software that is purchased, licensed or internally generated. An intangible asset should be recognized in the statement of net position only if it is identifiable. This means that the asset can either be:  Sold, transferred, licensed, rented or exchanged, or  Arose from contractual or other legal rights, regardless of whether those rights are transferable or separable. Donated intangible assets should be recorded at the fair market value as of the donation acceptance date. F. Improvements The City will maintain its assets to protect its capital investment and to minimize future capital expenditures. Capital asset improvement costs should be capitalized if:  The costs exceed the capitalization threshold, and  One of the following criteria is met:  The value of the asset or estimated life in increased by 25% of the original cost or life period, or  The cost results in an increase in the capacity of the asset, or  The efficiency of the asset is increased by more than 10% of its current value. Otherwise the cost should be classified as a repair and maintenance expense under the appropriate department and expense category. E2, Attachment 3 Packet Page Number 209 of 226 G. Depreciating Capital Assets Capital assets will be depreciated over their estimated useful lives unless they are:  Inexhaustible (i.e., land and land improvements, certain works of art and historical treasures, or  Construction work in progress. For financial reporting purposes, the straight-line method will be used to calculate depreciation with no salvage value. No depreciation will be taken in the year of acquisition and a full year of depreciation will be taken in the year of retirement. For depreciation purposes, the following guidelines will be used to estimate the useful life of the asset: Buildings and Building Improvements Useful Life Buildings – wood frame 30 years Buildings – brick/block 50 years Buildings – temporary/portable 20 years Roofing 20 years Siding 20 years HVAC/Plumbing/Electrical systems 20 years Fire suppression systems 10 years Security systems 10 years Cabling 10 years Flooring 10 years Elevators 20 years Windows 15 years Infrastructure Useful Life Streets, including curb and gutter 30 years Storm drain systems 30 years Parking lots 25 years Sidewalks 25 years Pedestrian bridges 25 years Dams 40 years Paved trails 25 years Street lights 25 years Water/Sewer mains and lines 50 years Water storage facilities 50 years Water supply facilities 40 years Lift stations 30 years E2, Attachment 3 Packet Page Number 210 of 226 Other Improvements Useful Life Fencing and gates 10 years Outside sprinkler systems 20 years Athletic fields, bleachers 25 years Septic systems 20 years Swimming pools 20 years Tennis and basketball courts 25 years Fountains 20 years Retaining walls 20 years Outdoor lighting 20 years Monuments 10 years Traffic signals 20 years Light poles 20 years Landscaping and trees 20 years Boat launch pads 25 years Equipment, Machinery and Vehicles Useful Life Appliances 5 years Audio/Visual equipment 5 years Business machines/office equipment 5 years Radio and communications equipment 5 years Computer equipment/software 3 years Furniture and cabinets 10 years Water softeners/heaters 5 years Grounds equipment – mowers, etc. 3 years Machinery 7 years Tools 5 years Playground equipment 10 years Photocopiers 3 years ATV’s and snowmobiles 3 years Motor vehicles – cars, light trucks 5 years Light equipment 5 years Street sweeper 5 years Heavy trucks 10 years Heavy equipment – loaders, graders 10 years E2, Attachment 3 Packet Page Number 211 of 226 13. PROCUREMENT POLICY INTRODUCTION The purchasing procedures are important because they: 1. Ensure purchases conform to legal requirements; 2. Prevent expenditures from exceeding the budget; 3. Provide proper documentation for purchases; 4. Prevent payment for items not received; 5. Ensure accurate accounting; 6. Provide payment of all bills within 35 days of receipt; and 7. Prevent duplicate payments on the same invoice. All purchasing by local government units is regulated by State law. Because of these laws and because of the unique nature of budget and tax levy procedures for funding City government, all City employees must conform to these purchasing policies and procedures. The Finance Department will review and approve all purchases and employee reimbursements and will ensure that all purchases and payments are legal, properly coded, and well documented. If the purchase is over $20,000 Council approval is required prior to the purchase. However, Council approval is not required on purchases over $20,000 for postage, ATM funds, regular utility bills, insurance premiums, payments due to other units of government or payments required to be made before the next regular meeting of the Council to avoid endangering public safety, damaging public or private property, or interrupting City services. Items under $20,000 (materials, supplies, and equipment for day-to-day use) must be purchased at the best price available subject to appropriate guidelines and procedures. A minimum of two verbal quotations must be obtained whenever possible on purchases of $5,000 to $9,999 and a minimum of two written quotations must be obtained whenever possible on purchases of $10,000 to $19,999. Approval must be obtained from the City Manager or his/her designee on all purchases between $10,000 and $19,999. All purchases totaling $20,000 to $49,999 require two written quotations from prospective vendors. The City Manager or his/her designee must approve the purchase prior to obtaining City Council approval. These written quotations must be attached to a requisition (or payment authorization form) which is submitted to the Finance. For purchases between $50,000 and $99,999, the City Manager or his/her designee will determine if the purchase will need to be made on a formal bid basis and meet all procedural requirements or if it will require two or more written quotations from prospective vendors. All purchases of merchandise, materials, equipment, and repair or maintenance services totaling $100,000 or more (except emergency purchases and purchases made using cooperative purchasing) must be purchased on a formal bid basis and meet all procedural requirements. The Council must approve all bid awards. All purchases must be handled through use of appropriate procedures and forms. E2, Attachment 3 Packet Page Number 212 of 226 PROCEDURES FOR PURCHASES UNDER $20,000 Generally, these purchases will be of materials, supplies, and equipment for day-to-day use. Purchases of food including meals, snacks and beverages for city employees is not allowed for department meetings or in-house training sessions unless there is a speaker or trainer who is not a city employee. Excluded from this limitation are purchases of food for (a) City Council meetings held at meal time, (b) employee recognition events such as the employee Christmas breakfast and city employee picnic/social event/holiday event, (c) training of election judges, (d) Fire Department meetings and in-house training sessions or (e) as approved in advance by the City Manager. The City of Maplewood may contribute up to $100 toward a retirement or farewell recognition event when an employee retires or resigns after a minimum of 10 years with the City. The money may be used for a cake, beverages, decoration and a plaque of appreciation for the promotion of the City. The money may not be used for a gift. Gifts must be paid for by contributions by other employees. Individual departments are responsible for organizing and communicating farewell or retirement parties. The expense will be charged to the Administrative Division of the department in which the person was employed. < $5,000 Only one verbal quotation is required; however, the purchase is to be at the best possible price. These purchases should be processed on a VISA purchasing card whenever possible. If the vendor will not accept a purchasing card, then it should be processed on a Payment Authorization form unless a purchase order is required, in which case a requisition is prepared. The form must be signed by an authorized purchaser with the appropriate purchase limits. $5,000 to $9,999 Verbal quotations should be obtained from at least two possible vendors and those quotations should be listed on the Payment Authorization or requisition which is submitted for approval. The form must be signed by an authorized purchaser with the appropriate purchase limits. $10,000 to $19,999 Prior to the purchase, approval must be obtained from the City Manager or his/her designee. A minimum of two written quotations should be obtained whenever possible and attached to the appropriate forms which are submitted for approval. The form must be signed by the City Manager or his/her designee. E2, Attachment 3 Packet Page Number 213 of 226 PROCEDURES FOR PURCHASES FROM $20,000 TO $49,999 1. Prior to the purchase, approval must be obtained from the City Manager or his/her designee. 2. Obtain quotations by supplying prospective vendors with a description or specifications of the merchandise, materials, equipment, or services to be purchased. A minimum of two (2) written quotations, whenever possible, shall be supplied for such purchases. If two quotations cannot be obtained, an explanation must be included as to the reason for only one bid. 3. If the purchase is over $20,000 Council approval is required before the purchase can be made. To obtain Council approval, an agenda report must be prepared and submitted to the City Council. For details on this procedure, see your department head or supervisor. 4. Prepare the requisition form according to the requisition form procedures if the transaction is not eligible for processing on a payment authorization form. The quotations are to be attached to the requisition or payment authorization form and be maintained as part of the City's records. E2, Attachment 3 Packet Page Number 214 of 226 PROCEDURES FOR PURCHASES FROM $50,000 TO $99,999 The City Manager or his/her designee will make the determination if the purchase needs to be made on a formal bid basis or if the purchase can be made by obtaining a minimum of two written quotations. If two or more written quotations are required: 1. Obtain quotations by supplying prospective vendors with a description or specifications of the merchandise, materials, equipment, or services to be purchased. A minimum of two (2) written quotations, whenever possible, shall be supplied for such purchases. If two quotations cannot be obtained, an explanation must be included as to the reason for only one bid. 2. If the purchase is over $20,000 Council approval is required before the purchase can be made. To obtain Council approval, an agenda report must be prepared and submitted to the City Council. For details on this procedure, see your department head or supervisor. 3. Prepare the requisition form according to the requisition form procedures if the transaction is not eligible for processing on a payment authorization form. The quotations are to be attached to the requisition or payment authorization form and be maintained as part of the City's records. If a formal bid basis is required: 1. It is the responsibility of the requesting department to prepare specifications. After specifications have been prepared, they shall be submitted to the City Manager for approval. No advertisement for bids shall be published until specifications are approved by the City Manager. 2. Advertisement in the official local newspaper (and other publications if appropriate) at least ten (10) days in advance of bid opening is required. The City may use its web site or a recognized industry trade journal as an alternative method to disseminate solicitations of bids, requests for information, and requests for proposals if certain steps are followed to designate the method (MN Stat. 331A.03, subd. 3). 3. Time must be allowed between the date of bid opening and bid award to permit examination and tabulation of bids and submission of recommendation to the City Manager and Council. 4. Council award of bid. The Council may wish to table an award on a difficult matter, thereby delaying the purchase. Therefore, careful consideration must be given to the complexity of an item and thorough information must be provided. 5. Once the Council has awarded the bid, a requisition form must be prepared by the department head with a notation indicating the date that the City Council approved the bid award. Also, a copy of the agenda report must be attached to the requisition. For construction contracts, a payment authorization form should be completed, instead of a requisition, each time an application for payment is ready to be processed. If the item will be purchased using cooperative purchasing, Council approval is required before the purchase can be made. To obtain Council approval, an agenda report must be prepared and submitted to the City Council. For details on this procedure, see your department head or supervisor. E2, Attachment 3 Packet Page Number 215 of 226 PROCEDURES FOR PURCHASES $100,000 AND OVER All merchandise, materials, or equipment purchases totaling $100,000 or more (except emergency purchases and items purchased using cooperative purchasing) must be purchased on a formal bid basis. The following procedural requirements must be met before an item may be purchased: 1. It is the responsibility of the requesting department to prepare specifications. After specifications have been prepared, they shall be submitted to the City Manager for approval. No advertisement for bids shall be published until specifications are approved by the City Manager. 2. Advertisement in the official local newspaper (and other publications if appropriate) at least ten (10) days in advance of bid opening is required for purchases less than $200,000. The City may use its web site or a recognized industry trade journal as an alternative method to disseminate solicitations of bids, requests for information, and requests for proposals if certain steps are followed to designate the method (MN Stat. 331A.03, subd. 3). 3. If the purchase is $200,000 or more, the first advertisement must appear no less than twenty- one (21) days before bid opening and the second notice shall be published between that time and the deadline for bids. In the case of public improvement projects, publication must be made twice in the official newspaper and twice in the “Construction Bulletin” no less than three (3) weeks before the deadline for submission of bids for the first notice and the second notice shall be published between that time and the deadline for bids. 4. Time must be allowed between the date of bid opening and bid award to permit examination and tabulation of bids and submission of recommendation to the City Manager and Council. 5. Council award of bid. The Council may wish to table an award on a difficult matter, thereby delaying the purchase. Therefore, careful consideration must be given to the complexity of an item and thorough information must be provided. 6. Once the Council has awarded the bid, a requisition form must be prepared by the department head with a notation indicating the date that the City Council approved the bid award. Also, a copy of the agenda report must be attached to the requisition. For construction contracts, a payment authorization form should be completed, instead of a requisition, each time an application for payment is ready to be processed. If the item will be purchased using cooperative purchasing, Council approval is required before the purchase can be made. To obtain Council approval, an agenda report must be prepared and submitted to the city Council. For details on this procedure, see your department head or supervisor. E2, Attachment 3 Packet Page Number 216 of 226 SOLE SOURCE PURCHASES If there is no ability to solicit multiple bids, departments must demonstrate that the purchase from a particular vendor is sufficiently justified as a sole source. Sole source means that a single vendor is uniquely qualified to meet the department’s procurement objective. To be considered a sole source and therefore exempt from the bid process, one of the following conditions must be met: 1. The actual product or service needed is the only one that will meet the department’s need or requirement, and it can only be purchased from one source (manufacturer or distributor). 2. The product or service must match or be compatible with current equipment or services. 3. The product needed is specifically required for use in conjunction with a grant or contract. 4. The service needed is controlled or mandated by the local, state, or federal government. 5. Artistic services. 6. An unusual or compelling urgency exists. If the need meets one of the above criteria, the department can either negotiate with the vendor directly or can request that the Finance Department negotiate with the vendor on its behalf. E2, Attachment 3 Packet Page Number 217 of 226 PURCHASES FROM EMPLOYEE-OWNED COMPANIES Before making a purchase in excess of $200 from, or entering into a contract with, a business entity owned wholly, or in part, by an employee of the City of Maplewood, City employees must obtain at least two (2) price quotes which are to be kept on file in the Finance Department for one (1) year after receipt. On purchases under $10,000, price quotes can be copies of the latest price listings, excerpts from current catalogs or written quotes provided by vendor. On purchases totaling $10,000 to $49,999, there must be two written quotations from prospective vendors. Before the purchase is made, it must be reviewed by the supervisor of the employee making the purchase to confirm that the decision to make a purchase from, or enter into a contract with, the business entity owned wholly, or in part, by the City employee is based on rational economic factors including, but not limited to, price and availability of goods and services. Two price quotes are not needed when services are purchased from an independent contractor who is a recreation referee, official or instructor. A business entity owned wholly, or in part, by a City employee shall be defined as: an entity organized for profit, including an individual, sole proprietorship, partnership, corporation, joint venture, association, or cooperative in which the City employee or a member of the City employee’s immediate family has a financial interest excluding interests consisting solely of publicly issued stock holdings constituting equal to or lesser than 5% of the entity’s total public stock issue. A member the City employee’s immediate family is defined as: the City employee’s spouse, the City employee’s child, the City employee’s parent, or the City employee’s sibling. E2, Attachment 3 Packet Page Number 218 of 226 COOPERATIVE PURCHASING Per MN Statute 471.345, subd. 15, municipalities may contract for the purchase of supplies, materials, or equipment by utilizing contracts that are available through the state’s cooperative purchasing venture authorized by section 16C.11. If a municipality does not utilize the state’s cooperative purchasing venture, a municipality may contract for the purchase of supplies, materials, or equipment without regard to the competitive bidding requirements if the purchase is through a national municipal association’s purchasing alliance or cooperative created by a joint powers agreement that purchases items from more than one source on the basis of competitive bids or competitive quotations. Cooperative purchasing is intended to save government agencies time and money when purchasing common products. Of course, there are no guaranteed savings, but cooperative buying power is a time-tested method of savings. Cooperative purchasing is currently allowed through the following sources: State of Minnesota’s Cooperative Purchasing Venture (CPV) Program U.S. Communities Government Purchasing Alliance National Intergovernmental Purchasing Alliance Company (National IPA) Houston-Galveston Area Council (HGACBuy) BuyBoard National Purchasing Cooperative National Joint Powers Alliance (NJPA) National Cooperative Purchasing Alliance (NCPA) TCPN Cooperative Purchasing Group The Interlocal Purchasing System (TIPS) Savvik Buying Group (North Central EMS Cooperation) University of Minnesota Purchasing Services E2, Attachment 3 Packet Page Number 219 of 226 ETHICS Ethical business standards shall govern all procurement transactions. Infractions of City policy shall be reported to the City Manager or Human Resources Director. Disciplinary action for those violating the City’s ethical business standards will be taken in accordance with applicable City policies, up to an including termination of employment. City personnel shall not solicit or accept a significant gift from a supplier or prospective supplier. A significant gift is defined as an item, service, favor, monies, credits, or discounts not available to others which could influence purchasing decisions, and also may include the payment of travel costs for City personnel to visit a vendor’s location (airfare, hotel, etc.) City personnel may accept trivial items as a matter of courtesy, but may not solicit them. Acceptance of social invitations to occasional business meals, entertainment, and hospitality will be subject to prudent judgement as to whether the invitation places or appears to place the recipient under any obligation, the appropriateness of the occasion, frequency, and choice of facilities. Questions about the value of a gift or appropriateness of an invitation should be referred to your supervisor to ensure compliance the City’s conflict of interest policy. It is also inappropriate for end users to make purchasing decisions based on marketing strategies by vendors that provide gifts or gift cards which could benefit them personally. Often the pricing offered, as well as future pricing, is much higher than pricing available through the cooperative purchasing contracts or other vendors. If a gift or gift card is received, it is the property of the City. It is the policy of the City of Maplewood that its employees conduct the affairs of the City in accordance with the highest ethical, legal, and moral standards. An employee must not be in a position to make a decision for the City if his or her personal, professional, or economic interests (or those of an immediate and extended family member) may be directly influenced or affected by the outcome. E2, Attachment 3 Packet Page Number 220 of 226 ADVERTISING FOR BIDS GUIDELINES: All purchases $100,000 and over (except emergency purchases and items purchased using cooperative purchasing) require solicitation and receipt of sealed competitive bids. Also, on purchases between $50,000 and $99,999, the City Manager or his/her designee will make the determination on whether the purchase requires solicitation and receipt of sealed competitive bids or two or more written quotations. PROCEDURES: 1. Advertisement for public bids shall be placed in the City's official newspaper (or alternate method if designated by the City) at least ten (10) working days prior to the date of bid opening. 2. If the purchase is $200,000 or more, the first advertisement must appear no less than twenty- one (21) days before bid opening and the second notice shall be published between that time and the deadline for bids. In the case of public improvement projects, publication must be made twice in the official newspaper and twice in the “Construction Bulletin” no less than three (3) weeks before the deadline for submission of bids for the first notice and the second notice shall be published between that time and the deadline for bids. 3. The department requesting the bids will prepare the bid specification and the following must be adhered to:  bids must be typed or written in ink;  bids must be signed in ink;  all erasures or changes must be initialed;  bids must be received no later than stated in the advertisement of bids; and,  for public improvement projects, bids must be signed by the City Clerk. 4. The advertisement for bids will include:  date and time by which bids must be submitted;  location for delivery of bids; and  date, time, and place of bid opening. 5. Bid Security. If the purchase is $100,000 or more the bid must be accompanied by cash, certified check, cashiers check, or bid bond payable to the City of Maplewood in an amount equal to five percent (5%) of the total bid, conditioned that if the bidder is the successful bidder, he/she will enter into a contract in accordance with said bid and will furnish such performance bonds as specified. The security of the successful bidder will be held until delivery of the goods or services has been completed. 6. Bids are received by the City Clerk's office. 7. Council will award the bid and the award will be based on, but not limited to, the factors of price, delivery date, City's experience with the products/services proposed, City's evaluation of the bidders ability to service City in terms of the requirements as called for in the specifications, quality of merchandise offered, and analysis and comparison of specifications. E2, Attachment 3 Packet Page Number 221 of 226 AFFIRMATIVE ACTION The City of Maplewood is committed to developing mutually beneficial relationships with small, minority- owned, women-owned, disadvantaged, veteran-owned, and local business enterprises. Maplewood has developed an initiative to create opportunity for vendors to market their products to the City and encourage departments to offer opportunities to such vendors. E2, Attachment 3 Packet Page Number 222 of 226 PROMPT PAYMENT OF CITY BILLS State law required municipalities to pay obligations with a standard payment period except where good faith disputes exist. A city whose council has at least one regularly scheduled meeting per month must pay bills within 35 days of receipt. A city or joint powers organization which does not have at least one regularly scheduled meeting per month must pay bills within 45 days of receipt. The date of receipt is defined as the completed delivery of the goods or services or the satisfactory installation or assembly, or the receipt of the invoice for the delivery of goods, whichever is later. Cities have the responsibility to notify vendors of invoice errors within 10 days of receipt. The statute also requires cities to calculate and pay interest of 1½ percent per month on bills not paid within the standard payment period. State law specifies $10 as the minimum monthly interest penalty payment for the unpaid balance of any one overdue bill or $100 or more. For unpaid balances less than $100, the city shall calculate and pay the actual interest penalty due the vendor. In cases of delayed payments due to good faith disputes with vendors, no interest penalties accrue. Where such delayed payments are not in good faith, the vendor may recover costs and attorneys' fees. Statute applies to all purchases of goods, leases and rents, and contracts for services, construction, repair and remodeling entered into on or after January 1, 1986. Purchases or contracts for service with a public utility or telephone company are not subject to the requirements of this statute. (Statute No. 471.425) All City employees that receive bills should promptly send them to the Finance Department with the appropriate forms so that they can be paid within 35 days of receipt. Checks for the payment of bills are mailed every Tuesday. This payment processing is referred to as “regular accounts payable processing.” All documentation for checks must be submitted to the Accounts Payable Technician in the Finance Department by 4:30 p.m. on Wednesdays. If payment of the bill by regular accounts payable processing would result in a late payment charge, a special check will be issued when requested by the department making the purchase, provided the late payment charge is over $2.00. E2, Attachment 3 Packet Page Number 223 of 226 STATE SALES AND USE TAX Purchases made by cities are generally exempt from sales and use tax. To make tax-exempt purchases, the City must provide the seller with a completed Form ST3. Use tax is similar to the sales tax and is the same rate. The use tax must be paid when the City makes taxable purchases without paying sales tax. An example of this would be a taxable purchase from a vendor outside of Minnesota who does not charge the City sales tax. In this case, the City has to pay use tax to the State of Minnesota and complete a tax return. In order to meet this legal requirement, the department making the purchase should calculate the use tax. Then in the coding section of the appropriate form for the purchase, the use tax amount should be added to the same account that the purchase is coded to. In addition, the use tax amount should also be listed in the coding section as a negative amount and coded to account 101-2031. For example, if a taxable purchase was made from an out-of-state vendor for Dept/Prog 202 and no sales tax was charged, the account coding would be as follows: $106.88 101-202-000-4110 (6.88) 101---------2031 As a result, the vendor would be paid $100 and $6.88 would be paid to the State of Minnesota automatically by the City. E2, Attachment 3 Packet Page Number 224 of 226 PURCHASE DISCOUNTS Some vendors offer a discount of 1% to 2% for payment of their invoices within the discount period. If this discount is over $2.00, a special check should be requested. However, occasionally the department that purchased the goods sends the invoice and/or receipt of goods to the Finance Department after the discount period has expired. In these cases, the purchase discount lost will be added to the total purchase price and coded to the appropriate expenditure account (e.g., supplies, services, etc.). E2, Attachment 3 Packet Page Number 225 of 226 FINAL PAYMENTS ON CITY CONSTRUCTION CONTRACTS The State of Minnesota requires the filing of Form IC-134 prior to the final payment of any contract involving employees under code section 270C.66 CONTRACTS WITH STATE: WITHHOLDING. "No department of the state of Minnesota, nor any political or governmental subdivision of the state, shall make final settlement with any contractor under a contract requiring the employment of employees for wages by said contractor and by subcontractors until satisfactory showing is made that said contractor or subcontractor has complied with the provisions of section 290.02. A certificate by the commission of revenue shall satisfy this requirement with respect to the contractor or subcontractor." Before final payment can be made on any contract which involves the payment of wages by a contractor of the city to any employee, or subcontractors with employees that performed work on a job for the city, the contractor must furnish to the city a copy of Form IC-134 that has been certified by the Minnesota Department of Revenue. These forms should be kept on file in your department with all other contract documents for possible review by the auditors. Contractors and subcontractors should obtain the IC-134 forms from the State of Minnesota. Subcontractors or sole contractors must provide their certified IC-134 form to the prime contractor when their portion of work is completed. The prime contractor then submits all certified IC-134 forms to the City when requesting their final payment. E2, Attachment 3 Packet Page Number 226 of 226