09-13-2023 Workshop Packet - Laserfiche WebLink

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To help accomplish that strategic initiative, a Gateway Signage Task Force was established in 2022. This task force, consisting of City Council, Planning and Parks & Recreation members, staff, and historical society members, developed recommendations for fifteen gateway signs varying in type, size, and location based on traffic volumes. As part of that discussion, the task force recommended staff identity funds through the CIP budget process; however, no funding source was identified. City staff contacted two vendors to request an estimate regarding the fabrication and installation cost of gateway and wayfinding signage. The following table provides a basic estimate for this type of signage, not including professional services (signage plan, engineering, & design fees): Type of Sign Starting Cost per Sign Large Gateway Monument Starting at $80,000 Small Gateway Starting at $45,000 Welcome Sign Starting at $9,500 Wayfinding Starting at $8,000 One other of the responding vendors provided a rough estimate for total cost based on comps for other cities where they have done work similar to the size of Little Canada. Excluding professional services (vendor estimated at $60,000 - $80,0000) – they anticipated $250,000 for a full wayfinding program, including modest gateways/welcome signs. City staff believes that a gas franchise fee can be a key funding source for this strategic plan initiative. As stated previously, gas and electric franchise fees are an equitable way to raise funds for important infrastructure needs. Capital infrastructure costs are continuing to rise, and there are few sources of dedicated funding outside of the General Fund Levy. Fifteen years ago, street rehabilitation projects typically came at approximately $200/LF. In today’s dollars, a typical pavement reclamation projects with spot curb and gutter and utilities are costing right around $300/LF, which is a 50% increase. Fifteen years ago, complete reconstruction projects were costing $433/LF. In today’s dollars, our typical reconstruction projects with new curb and gutter are costing around $650/LF representing an increase of 50.2%. This trend is also supported by additional comparisons of the Construction Cost Index (CCI). By comparing April 2008 and April 2023 as the comparison years, the CCI shows a 50% increase in construction costs in the twin cities metro area. Electric Franchise Fees Impact on Capital Infrastructure Fund (Fund 450): Since the electric franchise fee ordinance has been in place, franchise fees have provided an essential source of revenues for the Capital Infrastructure Fund 450. The franchise fees have exclusively been used to fund street infrastructure capital projects. Other sources of revenue for Fund 450 have included approximately $400,000 per year of Municipal State Aid (MSA) funds and approximately $160,000 of General Property Tax Levy each year. Other revenues are mostly one-time contributions to the fund, such as grants, or special assessment revenues. Special assessments represent the residents share of a street improvement project. Special assessment costs are paid in the year the project is constructed; however, the collection is typically over a ten or fifteen-year period, thus this type of revenue will fluctuate year after year based on the re-payment schedule.