06-12-2017 Council Packet - Laserfiche WebLink

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CITY COUNCIL AGENDA ITEM 6A STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: June 12, 2017 TOPIC: Public Hearing. Consider Resolution No. 17-54, Approving Five Year Street Reconstruction Plan and Preliminary Approval of the Issuance of Street Reconstruction Bonds, Michael Grochala VOTE REQUIRED: Unanimous INTRODUCTION Staff is requesting City Council approval of the 2017-2021 Five Year Street Reconstruction Plan and preliminary approval regarding the issuance of Street Reconstruction Bonds. BACKGROUND The City Council initiated a Street Reconstruction program in 2014 using Street Reconstruction Bonds as the primary funding source. The initial phase of street reconstruction was undertaken in 2015 with the improvement of streets in the Shenandoah neighborhood. In January of 2017 the City Council authorized a report on improvements to obtain cost estimates for the next phase of the reconstruction program. The City Council accepted the West Shadow Lake Drive and LaMotte Neighborhood report at the May 8, 2017 regular council meeting. This project is being considered for 2018. The estimated cost of the proposed project is $5,124,000. This estimate does not include any costs for new extensions of sanitary sewer and/or water main to service the neighborhoods. Any proposed sanitary sewer or water extensions, if requested, will be funded separately through special assessments or connection charges. At this time staff is proposing consideration of a street reconstruction plan schedule that includes completing the next two program phases over the next five years as follows: Phase Streets Estimated Cost 2018 West Shadow Lake Drive, Shadow Ct, Sandpiper Drive, LaMotte Dr., LaMotte Circle $5,124,000 2021 4th Avenue, Diane Street, 81st St, Elbe St. and Danube St. $2,524,000 Funding is only being considered for the 2018 project at this time. A 15 year payment schedule would result in annual debt service of approximately $450,000 based on a $5,124,000 project. Staff has worked with the City’s bond counsel Kennedy and Graven, to refine the plan to meet the provisions of Minnesota Statutes 475 relating to street reconstruction and bituminous