Agenda - Council Work Session - 01/18/2011

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In simple terms we have approximately 178 miles of roadway in the City. Taking out 36 miles of MSA roads that have their own funding source leaves 142 miles of local roads, but we are also underfunded with regard to our planned MSA needs. If we were to reconstruct the local roadways every 40 years we would need $142M, or approximately $3.5M annually. If you include sealcoating every 7 years at a price of $25,000/mile and an overlay every 19 years (but only occurs once during the design life) at a price of $105,000/mile we would need another $500,000 and $400,000 respectively, for a total of approximately $4.4M of required funding each year for both maintenance and reconstruction. Currently the only revenue options we have to offset these costs are assessments, MSA, TIF, and the general fund. Other issues that have been discussed with regard to the reconstruction policy include the following: . What is the standard for reconstruction . utilities, cross-sections, trails/sidewalks, load limits, etc. . How to address tax exempt parcels . How to address residents that live on private or County roads . Should it be a flat fee (tax), assessment, or combination . Affects of levy limits and potential bonding as a funding source . Impacts to funding when TIF closes in 2013 ($300,000 reduction in SMP) . A public participation process At the September 21, 2010 Council work session discussions focused on a franchise fee and public participation campaign to educate the residents of the imminent need for roadway improvements, and solicit their feedback on the potential scenarios that exist for a long term sustainable funding source. Staff discussed this matter with Himle Horner, a consultant currently working on marketing for the COR, and requested a proposal to assist the City in completing a public participation program (see attached). Staff is now looking for input on implementation of such a program in an effort to advance this critical infrastructure funding dilemma. Recommendation: Staff recommends award of a Contract to Himle Horner for a cost not to exceed $43,000 to assist with the public informational campaign and data gathering to initiate a street reconstruction policy. Funding Source: Since this is an activity that will directly benefit the street system and general state of repair for the street system, it would be appropriate that this money come from the street maintenance account. However, since that account is already being fully utilized for the 2011 Street Maintenance program, it would mean that we would have to eliminate a section of roadway to afford this effort. Staff recommends that this effort be funded from the Public Improvement Revolving fund which has an adequate fund balance and that this amount be reimbursed by the street reconstruction fund when that gets created. Council Action: Based upon discussion Attachments Funding summary Road construction history Himle Horner proposal Form Review Inbox Reviewed By Date Brian Olson Brian Olson 0113/2011 01:44PM Diana Lund Diana Lund 01/13/2011 02:29 PM Kurt Ulrich Kurt Ulrich 01/13/2011 02:56 PM Form Started By: Tim Himmer Started On: 01/13/2011 09:19 AM