02/13/2012 Council Packet (2) - Laserfiche WebLink

Home Search

Why This Issue Needs to be Resolved This issue needs to be resolved because of: 1. Financial reasons o Increased costs to the city and taxpayers o Problem continues to compound because streets continue to deteriorate because of lack of reconstruction o Wasted feasibility studies 2. Safety and liability concerns 3. Public support for changing the charter 1. Financial Reasons Increased Costs to the City and Taxpayers As a result of the failed referendums, the projected timely reconstruction of streets hasn't begun, forsaking a potential savings of $11 million (see Figure 2). This backlog of reconstruction projects cannot be ignored. Inflation drives up the cost of reconstruction every year due to higher costs for labor and construction materials. An example of the cost of deferring reconstruction is West Shadow Lake Drive. According to the city's Pavement Management Report, "The estimated cost of reconstruction in 2005 was $2,375,700. It is estimated the 2008 costs would be $2,750,000 due to increases in construction costs." (Source: Pavement Management Report, 2004, Page 12) Problem Continues to Compound Roads have a life span. Even with proper maintenance, they eventually wear out and need to be rebuilt. In Lino Lakes, 11 miles of roads are at that critical stage. The city's Pavement Management Report shows that streets will continue to deteriorate. As a result, the number of miles requiring reconstruction will increase. If streets already identified as needing reconstruction aren't completed and removed from the list, the number of projects and expenses will grow, compounding the problem. Over time, the financial burden could become so great that the city would never be able to manage it. Citizens should be concerned that the city can't, with any predictability, complete reconstruction projects in a timely manner using the most cost - effective financing available. Wasted Feasibility Studies Every proposed reconstruction project requires a feasibility study. The cost of the study varies depending upon existing conditions, existing information and the size of the project. Studies are good for 5 -10 years though if voters turn down a project, it may need to be updated. The chart below shows the cost of studies and updates for upcoming projects. Project Cost of Initial Feasibility Study Cost to Update Shenandoah $30,000 $3,000 West Shadow Lake Drive $55,000 $4,500 Source: Lino Lakes City Engineer Affected property owners absorb feasibility costs if a project moves forward. If voted down, money required for the study is wasted. 3