Agenda - Council - 03/10/2015 - Laserfiche WebLink

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The issuance of General Obligation Street Reconstruction Bonds will be used to fund the street reconstruction portion only of the project. The sidewalk and any utility improvements are not and cannot be included in this bonding request as Road Reconstruction bonds cannot be used for those items that did not previously exist prior to reconstruction. The only exception to the possible inclusion of non -prior existing items is if the city could justify that that the improvement has a substantial public safety function. If authorized, The GO Street Reconstruction Plan Bonds are scheduled to be sold the morning of May 26, 2015, with approval of the sale and terms brought forward to the City Council for their approval that same evening (May 26, 2015). The May 26, 2015 date will coincide with the date that the acceptance of bids for Garnet Street/168th Avenue will be brought to council for authorization. Notification: The City Council authorized the calling of the public hearing for the intention to issue General Obligation Street Reconstruction Plan Bonds and the proposal to adopt a street reconstruction plan at its regular meeting of February 10, 2015. Ehlers and Associates, the city's financial consultant, has prepared a Five -Year Street Reconstruction Overlay Plan (SROP) based on the Long -Term Street Maintenance Program prepared by the Engineering Department and also depicted in the city's 2015-2019 Capital Improvement Plan (CIP) as required by statute. Stacie Kvilvang of Ehlers & Associates, will be present at the meeting to answer any questions related to the Street Reconstruction Bonds, Street Reconstruction Plan and the process forward. Observations/Alternatives: Observations: The Five -Year Street Reconstruction and Overlay Plan 2015-2019 shows bonding schedules for each of these respective years. Statute states that a Five -Year plan must be produced outlining projects and costs for the next five years. If the city does not wish to follow this schedule (with the projects that are listed) over the next five years a new five-year plan will need to be devised. For example, if projects A-E are included in the five-year plan and the city wishes to do project F instead of B, the plan needs to be amended and the public hearing process will need to be undertaken again on the revised plan. The city is proposing to bond annually as years 2016-2019 in the plan are based on current engineer cost estimates and an annual inflationary factor. Alternatives: #1. Motion to Adopt Resolution #15-03-061 Adopting the Street Reconstruction Plan and Approving the Issuance of General Obligation Street Reconstruction Bonds #2. Motion to not Adopt Resolution #15-03-061 at this time Funding Source: The issuance of Street Reconstruction Bonds (and a small percentage from special assessments) will fund the Garnet Street and overlay improvements as outlined in the Long -Term Street Maintenance Program and the 2015-2019 CIP. Recommendation: Staff recommends Alternative #1 as this is the authorization to issue debt with final approval of the acceptance of the bond sale terms at the City Council's regular May 26, 2015 meeting. The issuance of debt follows the direction that City Council authorized as the funding mechanism of how road reconstruction projects were to be funded (with a small portion funded via special assessments). Action: