07-28-2021 Council Packet - Laserfiche WebLink

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time. We recommend reevaluating the roadways in this group over the next several years to prioritize streets that are degrading quicker or become a higher priority. The pavement management plan is illustrated in the enclosed figure titled 15-Year Pavement Management Plan. The pavement management plan is also tabulated at the conclusion of this staff report. Budgetary costs provided are total project costs and include pavement rehabilitation, minor utility upgrades, 15% contingency costs, and 25% indirect costs for engineering, administration, finance, and legal costs. Costs provided are in 2021 construction dollars. The effects of construction inflation should be considered when budgeting these projects. Additionally, project areas and costs should be reviewed annually to verify that streets or utilities have not degraded more than anticipated. Funding Historically, the City has been funding these projects with a combination of special assessments and the City’s Infrastructure Capital Improvement Fund. Ultimately, the availability and type of funding will be determined on an annual basis during the preparation of Capital Improvement Plans. The process of identifying funding is a collaborative process between City staff and the City Council. The City Council should be aware that municipal bond rates are near all-time lows. Taking on bonded debt may be a beneficial funding mechanism within the next few years. This would allow the City to take on debt with low interest to rehabilitate a greater number of aged roadways within the City. As construction prices continue to inflate from 3%-5% annually, low interest rates make bonding for projects more appealing for many municipalities. STAFF RECOMMENDATIONS: Staff recommends that the City Council approve the 15-Year Pavement Management Plan for inclusion in the upcoming City’s Capital Improvement Plan.