06-23-14 Council Packet - Laserfiche WebLink

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CITY COUNCIL AGENDA ITEM 6A STAFF ORIGINATOR: Michael Grochala MEETING DATE: June 23, 2014 TOPIC: Public Hearing. Consider Resolution No. 14-65 Approving 5 Year Street Reconstruction Plan and Preliminary Authorization to Issue Bonds VOTE REQUIRED: Unanimous INTRODUCTION Staff is requesting City Council consideration to approve a 5 Year Street Reconstruction Plan and preliminary authorization to issue bonds. BACKGROUND Following receipt of the 2004 Pavement Management study the City significantly expanded its pavement management program. Over the last nine years we have seal coated nearly 49 miles of streets and completed overlay/full depth reclaim projects totaling over 8 miles. An additional 2 miles of streets will receive an overlay or a full depth reclaim in 2014 under our annual program. However, financing for roadways in need of more extensive reconstruction has not been approved under past ballot initiatives. Due to their costs it is not practical to accommodate these types of projects under annual budgeting. In the past reconstruction projects were proposed to be funded by the issuance of improvement bonds paid, in part, by special assessments. This in turn required election under City Charter provisions. After evaluating financing alternatives for street improvement projects the City Council directed staff to develop a 5 year Street Reconstruction Plan that fulfilled the requirements of Minnesota Statutes, Chapter 475. Under state law street reconstruction bonds can be issued, without election, provided the following requirements are met: a) The City must prepare a 5 year street reconstruction plan b) The City must hold a public hearing c) The City Council must approve the plan by unanimous vote. d) A 30 day period must elapse during which time a petition may be submitted requesting an election. The petition must be signed by voters equal to 5% of the votes cast in the last municipal general election. The draft plan was first presented to the council in March. The plan was based on pavement management ratings and consideration of average daily traffic on street segments. The draft plan proposed a 5 phase reconstruction process that addresses approximately 10 miles of city streets.