05-07-2018 Council Work Session Packet

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WS – Item 6 WORK SESSION STAFF REPORT Work Session Item No. 6 Date: May 7, 2018 To: City Council From: Diane Hankee PE, City Engineer Re: Municipal State Aid Street Fund/ 2018 Mill and Overlay Project Background State Aid The City of Lino Lakes Municipal State Aid (MSA) funds are allocated to the City for eligible State Aid roadway improvement projects within the City. On April 9, 2018 the City Council approved an advance of MSA funds in the amount of $2,017,715. The City Council requested that a discussion regarding the use of these funds be included on the next work session agenda. The majority of the MSA funds the City is advancing were encumbered with the I35W Bridge project. Approximately $1,900,000 of the advance will be reserved for the remaining debt service on this project. The rest of the advance funds will remain in the MSA fund. The MSA funds is used for improvements on MSA roadways and collector roadways such as Cedar Street to the east of Otter Lake Drive, and Otter Lake Drive to the north of Main Street. The MSA fund is also used to cover the City’s cost share of County and State projects such as the upcoming intersection improvements to Lake Drive and Elm Street, and Centerville and County Road J. A $150,000 of the MSA funds are being used on the 2018 Mill and Overlay of Ware Road. Pavement Management Program (PMP) The unencumbered Street Maintenance Fund balance is currently $626,700. With the addition of $150,000 in MSA funds there is a total of $776,700 available for street maintenance projects in 2018. The non-structural maintenance portion of the PMP “Asphalt Rejuvenator” project budget is $90,000. This leaves approximately $686,700 available for the City’s Annual mill and overlay project. Based on the awarded contract amount the 2018 Mill and Overlay project cost is $515,700, including a 10% contingency, administration and engineering.