01-26-09 Council Special Minutes

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MINUTES CITY COUNCIL JANUARY 2G, 2009 IMP. NO. Blesener opened the public hearing to consider the improvement of Eli 2009-O1 & Road and Desoto Street (from Eli Road to LaBore Road) by road 2009-04 - reconstruction, concrete curb and gutter, and drainage enhancements. ELI ROAD AND DESOTO STREET The City Engineer reviewed the existing road conditions and noted that based on those conditions a reconstruction of the street is being proposed. That reconstruction is proposed as a 30-foot urban section roadway with concrete curb and gutter and concrete driveway aprons for Eli Road and a 28-foot urban section for Desoto Street. The Engineer reported that surmountable curb is proposed on the south side of Eli Road and barrier curb on the remainder of the street. He also noted a storm sewer system is proposed to serve the curbed sections of roadway as well as the installation of rain water gardens for storm water treatment at intervals along the project. The Engineer noted that given the level of oil prices as well as the bidding environment, it is felt that very favorable bids will be received for this work. The Engineer then reviewed the City's Assessment Policy relative to street reconstruction projects. The Engineer noted that the City is proposing to freeze the assessment rate at the 2008 level. The cost of storm sewer work is not assessed. The Engineer noted that the total estimated cost of the project is $716,000.00. The Engineer then reviewed the proposed project schedule should the project move forward. He noted that the proposed assessment roll is also included for property owners' review. The Engineer noted that City staff is proposing that the project be bid. If bids are higher than the estimate, then the City is not receiving the cost savings it is anticipating due to low oil prices and a competitive bidding climate. In that case, the project would not be likely to move forward. If the project does move forward, it would be constructed over the summer. An assessment hearing would then be held in the fall with property owners. The Engineer provided a brief outline of how the assessment process works. The Engineer then reviewed an issues list supporting why City staff feels that the project should move forward. That listing included information on the competitive bidding environment, oil prices, the fact that the City is maintaining the assessment rate at 20081evels, the fact that this assessment rate has been artificially suppressed for a number of years given it has been inflated by 3% annually when the market increases have been over 6% from 1996-2006, and that interest rates are at a very favorable level. The City Administrator noted the interest rates that the City has utilized over the past five year period. He pointed out that if bonds were sold 12