Agenda - Council - 05/26/2015 - Laserfiche WebLink

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bonds by an unanimous vote of its membership present. Like a Capital Improvement bond, the Street Reconstruction bond is not required to have a referendum, but a reverse referendum is allowable. If a petition bearing the signatures of at least 5 percent of the votes cast in the last general election is filed with the City Clerk within 30 days after the public hearing regarding the bonds (March 10, 2015), the bonds may not be issued unless approved by voters. No petition was filed by the April 9, 2015 deadline. 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. At its regular meeting of March 10, 2015 City Council passed resolution #15-03-061 authorizing the issuance of GO Street Reconstruction Bonds . Stacie Kvilvang from Ehler's and Associates, the city's financial consultant, will present the bid results on the night of May 26, 2015, as the GO Street Reconstruction bonds will be bid on earlier that afternoon by prospective bond buyers. The total bonded request is $1,235,000 which remains constant with the original request in March. Notification: Ehlers and Associates 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) and a presale report that are attached. As stated, the GO Street Reconstruction bond issue would be $1,235,000 which covers a majority of the construction costs needed and underwriting and issuance costs ($410,000 of project costs will come from city funds held in the Public Improvement Revolving Fund (PIR) from 2013 unspent road funds). 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 #15-05-130 authorizing approval of the sale of $1,235,000 GO Street Reconstruction Bonds, Series 2015B. #2. Motion to not Adopt Resolution #15-05-130 which would be rejecting the bids of the bond sale. Funding Source: