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Home My WebLink About2014-065 Council Resolution• CITY OF LINO LAKES RESOLUTION NO. 14-65 RESOLUTION ADOPTING A STREET RECONSTRUCTION PLAN AND TAKING CERTAIN ACTIONS IN CONNECTION WITH THE ISSUANCE OF STREET RECONSTRUCTION BONDS THEREUNDER follows: BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota (the "City"), as Section 1. Background. 1.01. The City is authorized under Minnesota Statutes, Section 475.58, subdivision 3b (the "Act"), to prepare a plan for street reconstruction in the City over the next five years that will be financed under the Act, including a description of the proposed work and estimated costs, and to issue general obligation bonds to finance the cost of street reconstruction activities described in the plan. 1.02. Before the issuance of any bonds under the Act, the City is required to hold a public hearing on the plan and issuance of the bonds. 1.03. Pursuant to the Act, the City, in consultation with its City engineer, has caused preparation of the "2015 through 2019 Five -Year Street Reconstruction Plan for the City of Lino Lakes, Minnesota" (the "Plan"), which describes certain street reconstruction activities in the City for the years 2015 through 2019. The reconstruction activities described in the Plan include, but are not limited to, reconstruction of Hokah Drive, Rice Court, Totem Trail, Arrowhead Drive, Tomahawk Trail, Tomahawk Court, Chippewa Trail, and Arrow Court, including the replacement of curb and gutter, as needed, required upgrades of the existing stormwater management system, and bituminous surfacing, and the reconstruction of West Shadow Lake Drive, Sandpiper Drive, Shadow Court, LaMotte Drive, and LaMotte Circle, including upgrades of existing stormwater management system and bituminous surfacing (collectively, the "Project"). 1.04. On this date, the City Council held a public hearing on the Plan and the issuance of the Bonds, after publication in the City's official newspaper of a notice of public hearing at least 10 days but no more than 28 days before the date of the hearing. Section 2. Plan Approved. 2.01. The City Council finds that the Plan will improve the City's street and utility systems, which serves the interests of the City as a whole. 2.02. The Plan is approved in the form on file in City Hall. Section 3. Bonds Issued under Plan. 3.01. The City anticipates the need to issue general obligation street reconstruction bonds under the Plan (the "Bonds") for the purposes of financing the project costs described as 2015 expenditures. Such Bonds may be issued pursuant to the Act in the principal amount not to exceed $3,150,000. 3.02. The City hereby provides its preliminary approval to the issuance of the Bonds. The Bonds may not be issued without further action by the City Council. Furthermore, the issuance of such Bonds is subject to Section 3.03 hereof. 3.03. If a petition requesting a vote on the issuance of the Bonds, signed by voters equal to • • • five percent (5%) of the votes cast in the last municipal general election, is filed with the City Clerk within 30 days after the date of the public hearing, the City may issue the Bonds only after obtaining approval of a majority of voters voting on the question at an election. The authorization to issue the Bonds is subject to expiration of the 30 -day period without the City's receipt of a qualified petition under the Act, or if a qualified petition is filed, upon the approving vote of a majority of the voters voting on the question of issuance of the Bonds. 3.04. City staff are authorized and directed to take all other actions necessary to carry out the intent of this resolution. Adopted by the City Council of the City of Lino Lakes, Minnesota this 23rd day of June, 2014. The motion for the adoption of the foregoing resolution was introduced by Council Member Roeser and was duly seconded by Council Member Kusterman and upon vote being taken thereon, the following voted in favor thereof: Roeser, Kusterman, Rafferty, Stoesz, Reinert The following voted against same: none ATTEST: Juli u he Bartell, City)Clerk Jeff Reinert, Ma or • • • 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: INTRODUCTION Unanimous 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. • • • Phase Streets Total Length (Feet) Estimated Cost I Hokah Dr, Rice Ct, Totem Tr, Arrowhead Dr, Tomahawk Tr, Tomahawk Ct, Chippewa Tr, Arrowhead Ct 10,535 $3,009,125 II West Shadow Lake Drive, Shadow Ct, LaMotte Dr, LaMotte Circle 10,643 $3,040,015 III 815t St, Danube St, Elbe St, Red Maple Ln, HoIIy Dr, HoIIy Ct 10,441 $,2,982,179 IV Oak Ln, Knoll Dr, Joyer Ln, Karth Rd, Talle Ln, Canfield Rd, Gaage Ln 9,735 $2,780,598 V 77th St, Gordon Ave, Rehbein St, Peltier Lake Dr, James St 11,229 $3,207,139 Total 52,583 $15,019,056 The estimated costs detailed above do not include any replacement or installation of new watermain or sanitary sewer. If the residents of these neighborhoods would like to have sanitary sewer or watermain installed as part of a street reconstruction project they will need to petition for these improvements and agree to be assessed 100% of the cost. Costs associated with the replacement or repair of existing water and sanitary sewer utilities would be covered by the City's utility fund. The timeline for completing the plan phasing is dependent on the determination of a debt structure acceptable to the council. Springsted Inc. has prepared preliminary debt service schedules based on bond issuance of 10, 15, and 20 years. A 15 year schedule would result in annual debt service of approximately $269,000 based on a $3,000,000 project. Staff has worked with WSB, Springsted Inc. and the City's bond counsel Kennedy and Graven, to refine the plan to meet the provisions of Minnesota Statutes 475. Approval of the plan would allow for the City to consider proceeding with a project in 2015 regardless of the outcome of the proposed charter amendment. At this time staff is proposing consideration of a street reconstruction plan schedule that includes the first two project phases over the next five years as follows: Phase Streets Total Length (Feet) Estimated Cost 2015 Hokah Dr, Rice Ct, Totem Tr, Arrowhead Dr, Tomahawk Tr, Tomahawk Ct, Chippewa Tr, Arrowhead Ct 10,535 $3,009,125 2019 West Shadow Lake Drive, Shadow Ct, Sandpiper Drive, LaMotte Dr, LaMotte Circle 10,643 $3,040,015 If the plan is approved by the City Council residents will have 30 days from the date of the meeting (July 23, 2014) to petition for the plan to be placed on the 2014 Election Ballot for consideration. 1575 votes were cast in the 2013 election. A petition signed by 79 eligible voters would be needed to require the election. If no petition is received the council may move forward with project development and financing. • • • Staff would like to emphasize the following points: 1. The plan and associated funding only support the construction of street and required storm sewer improvements. Any additional utility improvements such as water main or sanitary sewer would need to be funding through other means. 2. The plan only authorizes bonding for the Shenandoah Area. Phase II of the plan would need to be authorized under an amendment to the plan. 3. Approval of the plan and bond authorization does not obligate the City to construct a project or issue bonds. Julie Eddington, the City's Bond Consul, will be present at the meeting to address any questions related to the process or statutory requirements. Representatives from WSB will also be present to address question regarding pavement management or the Street Reconstruction Plan. RECOMMENDATION Staff is recommending approval of Resolution No. 14-65. ATTACHMENTS 1. Resolution No. 14-65 2. 5 Year Street Reconstruction Plan 3. Street Overlay and Reclaim Projects 2005-2014 • • • 2015 through 2019 DRAFT Five -Year Street Reconstruction Plan for the City of Lino Lakes, Minnesota June, 2014 CITY RNOL (� F KES Draft Draft 6/13/2014 • • City of Lino Lakes Five -Year Street Reconstruction Plan 2015 through 2019 I. PURPOSE Street reconstruction is a major expenditure of city funds for the reconstruction of streets. Street reconstruction may include bituminous overlays, utility replacement and relocation, public safety street modifications, and other incidental activities, turn lanes and other improvements having a substantial public safety function, realignments, other modifications to intersect with state and county roads, and the local share of state and county road projects. Except in the case of turn lanes, safety improvements, realignments, intersection modifications, and local share of state and county road projects, street reconstruction does not include the portion of project costs allocable to widening a street or adding curbs and gutters where none previously existed. A Street Reconstruction Plan ("SRP") is a document designed to anticipate street reconstruction expenditures and schedule them over a five-year period so that they may be purchased in the most efficient and cost effective method possible. An SRP helps enable the matching of expenditures with anticipated income. As potential expenditures are reviewed, the city considers the benefits, costs, alternatives and impact on operating expenditures. The City of Lino Lakes, Minnesota (the "City") believes the street reconstruction process is an important element of responsible fiscal management. Major capital expenditures can be anticipated and coordinated so as to minimize potentially adverse financial impacts caused by the timing and magnitude of capital outlays. This coordination of capital expenditures is important to the City in achieving its goals of adequate physical public assets, preservation of public assets and sound fiscal management. Good planning is essential for the wise and prudent use of limited financial resources. The SRP is designed to be updated periodically. The Street Reconstruction • Plan is a part of the City's capital improvement plan. In this manner, it Draft Draft 6/13/2014 • 1 1 becomes an ongoing fiscal planning tool that continually anticipates future capital expenditures and funding sources. II. THE STREET RECONSTRUCTION PLANNING PROCESS For the City to use its authority to finance expenditures under Chapter 475.58, Subdivision 3b, it must meet the requirements provided therein. The street reconstruction planning process is as follows: The City staff prepares an SRP reflecting the street reconstruction projects anticipated to be undertaken within the next five years (based on their priority, fiscal impact, and available funding) and the estimated costs thereof. If general obligation bonding is deemed necessary, the City works with its financial advisor to prepare a bond sale and repayment schedule. A public hearing is held to solicit input from citizens on the SRP and the issuance of bonds. Notice of such hearing must be published in the official newspaper of the City at least 10, but not more than 28 days prior to the date of the public hearing. The City Council must approve the SRP and the sale of street reconstruction bonds by a unanimous vote of those members present at the meeting following the public hearing. Voters may petition for a reverse referendum on the issuance of street reconstruction bonds. If a petition bearing the signatures of voters equal to at least 5% of the votes cast in the last general election requesting a vote on the issuance of street reconstruction bonds is received by the City Clerk within 30 days after the public hearing, the City may only issue general obligation street reconstruction bonds after approval by voters at an election. If no petition is submitted, general obligation street reconstruction bonds may be issued without an election. In subsequent years, the process is repeated annually or as expenditures are completed and new needs arise. III. PROJECT SUMMARY AND FINANCING Street reconstruction projects anticipated to be undertaken within the next five years and the estimated costs thereof are set forth in Appendix A. A map of the proposed project streets is included in Appendix B. Those for Draft Draft 6/13/2014 • • • which street reconstruction bonds are anticipated to be issued are marked with an asterisk in Appendix A and are currently anticipated to include the following: 2015 Street Reconstruction Bond Financed Expenditures — The 2015 Street Reconstruction Project includes the reconstruction of the following streets; Hokah Drive, Rice Court, Totem Trail, Arrowhead Drive, Tomahawk Trail, Tomahawk Court, Chippewa Trail, and Arrowhead Court, by replacement of curb and gutter as needed, required upgrades of the existing stormwater management system and bituminous surfacing General obligation street reconstruction bonds are proposed to be issued in 2015 in an aggregate principal amount of approximately $3,150,000 for the costs of the Shenandoah Area Improvements and the costs of issuing the bonds. Such bonds may be combined with other financing tools, including general obligation improvement bonds, to finance other capital improvements in the City. Street reconstruction bonds are included in the amount of indebtedness of the City which cannot, under Minnesota Statutes, Section 475.53, exceed 3% of the assessor's taxable market value for the City ("TMV"). The proposed bonds will not exceed statutory limits. All other foreseeable capital expenditures are expected to be financed through other revenue or financing sources. 2019 Street Reconstruction Project The 2019 Street Reconstruction Project includes the reconstruction of the following streets; West Shadow Lake Drive, Sandpiper Drive, Shadow Court, LaMotte Drive, and LaMotte Circle which may include required upgrades of existing stormwater management system and bituminous surfacing. No bonds are being contemplated for this project at the present time. Draft Draft 6/13/2014 • • • Shenandoah Area Improvements: Hokah Dr, Rice Ct, Totem Tr, Arrowhead Dr, Tomahawk Tr, Tomahawk Ct, Chippewa Tr, Arrowhead Ct Total Shenandoah* West Shadow and LaMotte Area Improvements: West Shadow Lake Drive, Shadow Ct, Sandpiper Drive, LaMotte Dr, LaMotte Circle Total West Shadow and LaMotte APPENDIX A PROJECT COSTS 2015 2016 2017 2018 2019 $3,009,125 $3,040,015 Totals by year $3,009,125 0 0 0 $3,040,015 *Expenditures proposed to be financed by Street Reconstruction Bonds to be issued in an aggregate principal amount of approximately $3,150,000 in 2015. Draft Draft 6/13/2014 I - * fi-1-1-iftt fTTTT Hodgson Rd_i_ •. --- - 1 11 - - - . - - - - - 3 ' ',...,;--i-i--', • , , -f,'„_;:..'T ....,..._:...L.1_.:.._:,:', - t PI. 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'IVDA L ST' MAPLE ST RD W ERGREENTRL ❑ 0 Z I J W( Y 1 MARVY ST< p C ELM ST 81STSTW ELMCREST AVE N PARK c CEDARJST W 0 x rr F ARROWHEAD 09 - CHERRY LN HN4,7ORN RD BALDWIN -1 CIR 4 PLUM LN L Nay ' LINDA AVE Z COYOry 62ND ST 0 RAVENS WOODRIQ Com: �.. <. eTRIDGE HUNT L BOG 447ERN LN ��-1 O K p Cr ,O YN p p . 0 I- f =l 3 ., "O Y N' a m r m. 0 ws W W p N 2<N m a. x� �-Q_.r x .' -'11 r CEDAR ST e. C1: 2005 - 2014 Overlay and Reclaim Projects PH:5 A SEDGE I,.u�.'. r rt{ _ I MOLITOR' ;64TH HOLLY,DR E F Anil `� . ;1 , it 1 rwvi �' ►icej MIME AMIN* r„Nife •�� /?F TELE DR z 7 v �-4 65THST OR Reclaim 2010 - - Overlay 2011 — 2006 2012 2007 — 2013 — 2008 — 2014 2009 0 4,000 11 Feet FEILING p ° TA CT WSB & Associates, Inc. K\02029-230\GIS\Maps\Redaim_Overlay.mxd Date 6/17/2014