HomeMy WebLinkAboutItem 06.eLakeville
November 3, 2014 Item No.
Resolution Amending 2014 Building Fund Budget
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Resolution
Amending the 2014 Building Fund Budget.
Approval of the Resolution will result in amendment of the 2014 Building Fund Budget.
Overview
Recently there have been several unanticipated events which are adversely affecting the
Building Fund. The facility major maintenance projects and project financing were discussed
with the City Council at the October 14 work session. These events include the following:
• Fire Station #4 - Roof top unit (heating system) malfunction and replacement
• Heritage Center - Skylight replacement
• City Hall - Backup generator malfunction and replacement
• Central Maintenance Facility - Gate access controller
• Central Maintenance Facility - Hoist repair
• Central Maintenance Facility -trench drains
Primary Issues to Consider
➢ Description of purpose of proposed budget adjustments. See attached.
➢ Financing of proposed budget adjustments. See attached.
Supporting Information
Financial Impact: $ See attached budgeted: N/A Source: Various
Related Documents (CIP, ERP, etc.):
Notes:
Primary Issues to Consider
➢ Description of purpose of proposed budget adjustments.
Fire Station #4 - Roof Ton Unit (heating system) malfunction and replacement
The heating component of RTU #4, which serves the Fire Administration area of Fire Station
#4, failed in April. The RTU #4 was not programmed to be replaced within the next 10 years.
The heating component on the RTU is a unique on demand tank -less water heater design.
Repair is not an option and there are no replacement components available. The station also
has two other identical RTUs with the same hot water heating component that serve other
areas of the station. Neither of these units will be repairable if they should fail.
While RTU #4 must be replaced immediately, the benefits to replacing all three at the same
time are minimization of mobilization costs, equipment standardization, equipment lead
times and avoidance of potential failure during winter months. Award of contract was
approved by the City Council at the August 18'h meeting.
Heritage Center - Skylight Replacement.
The main skylights in the Heritage Center are showing signs of delamination and
deterioration thereby resulting in water leaks into the multi-purpose room. Replacement of
the skylight system was originally budgeted at $67,500. Originally it was presumed that the
skylight panels could be replaced on a one for one basis. An engineering evaluation of the
skylights showed that the original panels were framed as windows and were part of the
support structure. These panels are no longer available and replacing them in the same
manner is not an option. The replacement panels will be longer thereby requiring a different
support structure as well as drywall work, modifications to the fire sprinkler system, and roof
work and flashing to the area around the skylights and the gutters. Award of contract was
approved by the City Council at the September meeting.
City Hall - Generator Replacement.
The generator at City Hall provides backup power to the computer servers in the event of a
power failure. The IT department also has an uninterrupted power supply as a backup system
to provide power to the servers while the generator picks up the full load. The UPS can
provide approximately 1 hour of power in the event both the electricity and the generator
fail. The generator sustained significant mechanical failure in August. Cost of replacement
was more cost effective than extensive repair costs. Because of the critical nature of the
backup systems for the servers, staff has obtained bids to replace the generator immediately.
Three quotes were obtained with the lowest being $16, 907. Replacement of the generator
was originally scheduled and budgeted in 2015 for $34,000. The generator was replaced in
late August and was operational in early September.
Central Maintenance Facility- Hoist repair
The Central Maintenance Facility has two heavy duty hoists which are used for repair of heavy
equipment such as snow plow vehicles and fire trucks. The concreate around the rails
supporting one of the front hoists is deteriorating thus causing the hoist to lean slightly when
the vehicle weight is not evenly distributed such as a plow truck with a wing. Being limited to
one heavy duty hoist does impact the completion of repairs to dump trucks and other heavy
equipment. Major repairs to the hoist were not anticipated within the five year Capital
Improvement Plan.
Central Maintenance Facility- Gate access controller.
The memory chips in the CMF gate controller cannot be replaced. The system has reached
the end of its life cycle. If the unit experiences any catastrophic event, electrical surge,
lighting strike, or struck by a vehicle that would damage the board and/or chip, the system
will not be repairable. If the system fails, security and access will be a major operational issue.
Replacement of the gate controller was included in the 2015 original estimate within the five
year Capital Improvement Plan.
Central Maintenance Facility - Trench Drains
In the truck parking area of the Central Maintenance Facility there are three trench drains that
run down the center of the driving lanes. The purpose of these trench drains is to collect
snow melt and water runoff from the trucks and carry it to the storm sewer system. The
concrete holding up the rails that, in turn, hold up the grates was beginning to fail in several
areas. The failing concrete causes the rails to separate from the concrete and bend, causing
the grates to fall into the trench drain. This creates a safety hazard for staff as well as a driving
hazard. In one instance, the grates are being held up with blocks of wood, in other instances
staff has covered the failing areas with sheets of metal. Repairs require that the concrete
around the trench drain be removed, new concrete poured and tied into the existing floor
reinforcement, new rails installed, and the existing grates reinstalled. There will be
approximately 2,800 square feet of concrete removed and replaced.
Cost of the repairs is approximately $36,000. The Building Fund 2014 budget provided
$33,000 to seal the floor. Staff is requesting the $33,000 for floor sealing be re -appropriated
to the trench drain repairs with the remaining $3,000 to be appropriated from the Building
Fund balance. Sealing of the floor would be deferred to a future budget.
➢ Financing of proposed budget adjustments.
There are currently adequate balances available in the Building Fund in 2014 and 2015 for
financing the projects discussed above and scheduled facility improvements as described in
the proposed 2015 - 2019 Capital Improvement Plan. A Summary of the Building Fund
financial projections is shown below.
Building Fund
2014 2015
Adopted Amended Original Revised
Budget Adjust Budget Estimates Adjust Estimates
Revenues
Expenditures
Fire Station 44 - RTU
Heritage Center - skylights
City Hall -generator
CMF - hoists
CMF - gate controller
CMF -floor sealing
CMF - trench drains
Other
Total expenditures
Netchange
Fund Balance -Jan. 1
Fund Balance- Dec 31
67,000
33,000
277,825
377,825
(377,825)
112,000
112,000
41,000
108,000
16,907
16,907
20,850
20,850-
13,350
13,350
(33,000)
-
12,717 (12,717)
- 277,825
802,375
171,107 548,932
815,092
(171,107) (548,932)
(815,092)
36,000
23,283
(23,283)
36,000
802,375
838,375
(838,375)
1,516,976 - 1,516,976 968,044 - 968,044
1,139,151 (171,107) 968,044 181,369 (23,283) 129,669
CITY OF LAKEVILLE
RESOLUTION No.
RESOLUTION AMENDING THE 2014 BUILDING FUND BUDGET
BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota that the
2014 Building Fund budget is hereby approved and amended for the fiscal year
ending December 31, 2014 as per Exhibit A attached hereto.
APPROVED AND ADOPTED this 3rd day of November 2014 by the City Council
of the City of Lakeville, Minnesota.
CITY OF LAKEVILLE, MINNESOTA
Matt Little, Mayor
ATTEST:
Charlene Friedges, City Clerk
2014 BUILDING FUND BUDGET
2014
Adopted
Budget
Revenues
Charges for services $
Investment income -
Miscellaneous
Total revenues
Expenditures
General government
Public safety
Public works
Parks and recreation
Total expenditures
Exhibit A
2014
2014 Amended
Adjustment Budget
S - $
150,712
16,907
167,619
65,600
112,000
177,600
55,000
1,200
56,200
106,513
41,000
147,513
377,825
171,107
548,932
Excess (deficiency) of revenues over expenditures (377,825) (171,107) (548,932)
Otherfinancing sources (uses)
Transferfrom otherfunds
Total otherfinancing sources (uses)
Net change in fund balance
Fund balance, January 1
Fund balance, December 31
960
960
(376,865) (171,107) (548,932)
1,400, 812 116,164 1,516,976
$ 1,023,947 $ (54,943) $ 968,044