Agenda - Council - 05/24/2016 - Laserfiche WebLink

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lour Misiion: To work together to reiposibty grow our community, and to provide quality, coat -effective, and efficient government ierrlcas. CC Regular Session 7. 6. Meeting Date: 05/24/2016 By: Diana Lund, Finance Information Title: Adopt Resolution # 16-05-092 Approving the Issuance of General Obligation Street Reconstruction Bonds Purpose/Background: Purpose: To provide funding for road reconstruction and bituminous overlays via the issuance of Street Reconstruction Plan Bonds. Background: Over the past several years, much discussion has taken place over the financing of road improvements. These needed improvements: Sealcoats, Overlays and Reconstructions are based on the 60-year Long -Term Street Maintenance Program that the engineering depailinent had compiled on all of the city's streets based on a PASER rating (the lower the PASER rating, the worse the road). Based on the Long -Term Street Maintenance Program, it was estimated that the highest priority projects averaged $2.2M over the first five years and increased after that. Of the estimated $2.2M, $500,000 would be funded from the General Fund and the remainder from the issuance of debt. The payment of said debt would be paid from an annual tax levy and assessment to benefiting parties. 2015 was the first year that the City issued road reconstruction debt to fund the first road reconstruction project (Garnet and 168th Avenue) as outlined in the Long -Term Street Maintenance Program. and the 2015-2019 Capital Improvement Plan (5-Year Road Plan that was adopted in 2015 and that outlined the respective projects and costs for years 2015-2019). The City issued a total of $1,205,000 GO Street Reconstruction bonds in 2015 for Garnet/168th Avenue reconstruction and overlay projects. The second road reconstruction project to be undertaken per the Street Maintenance Program and the 2015-2019 Capital Improvement Plan is Andrie Street and 164th Lane. Again, the proposed funding is to come from the issuance of Street Reconstruction Plan Bonds. The City Council case prior was to accept the construction bid for Andrie Street/164th Lane in the amount of $1,568,162.65 with an authorization request coming to City Council in late July for the acceptance of bids for the Sunwood Drive Overlay project (approximately $300,000). The total bonding amount required for both projects (hard & soft costs) is estimated at approximately $1.735M. The issuance of General Obligation Street Reconstruction Bonds will be used to fund the street