Agenda - Council - 08/28/2018 - Laserfiche WebLink

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Notifications are not required for this case. Observations/Alternatives: Observations: Preparing a Feasibility Report for the proposed improvements will allow staff to refine estimated project costs and develop a proposed funding program, and allows for the use of special assessments against benefiting properties as a partial funding source. The Feasibility Report will explore numerous aspects of the proposed improvements including whether they are feasible and necessary, whether they are cost-effective, and whether they should be completed alone or in conjunction with other improvements. Estimated costs will be explored in greater detail than was used to estimate costs for the CIP. A more detailed project funding program will also be explored, including a description of the methodology used to calculate individual special assessments for benefiting parcels. A preliminary project schedule will also be developed. While preparing the Feasibility Report, Staff will conduct a public input meeting with the residents of Ford Brook Estates to explain the need for the proposed improvements, the scope of the improvements, estimated costs, proposed funding program, and proposed schedule. Staff anticipates requesting Council acceptance of the Feasibility Report later this fall to allow the project to proceed in a timely manner with construction beginning in the spring of 2019. This will also provide for compliance with all applicable provisions of the City Charter, the City's Special Assessments Policy, and Minnesota Statute Chapter 429. If these streets are not reconstructed in 2019, they would need to be added to the next 5-year SROP to allow reconstruction between 2020 and 2024 instead. However, this would reduce the amount of pavement maintenance work that can be completed in 2019 since no new streets can be added to the current 5-year SROP, which is attached for reference. Alternatives: Alternative #1 — Motion to adopt Resolution #18-175 ordering a Feasibility Report for Improvement Project #19-01, Ford Brook Estates Street Reconstructions. Alternative #2 — Motion of other. Funding Source: Upon Council authorization, the Feasibility Report will be completed in-house as part of Staffs normal duties. While preparing the report, Staff will explore available options for minimizing project costs, such as by using a full -depth reclamation process instead of removing and replacing the existing pavement. Staff will also utilize data gathered using Ground Penetrating Radar and soil borings per previous Council approvals. Preliminary project costs are currently estimated to be $240,000. Staff proposes to fund the proposed improvements using a combination of special assessments to benefiting properties, street reconstruction bond funds, and stormwater utility funds, as needed. Based on 2013 cost estimates, the City must fund approximately $11,000,000 for Street Maintenance Program costs over the 5-year period from 2015 to 2019 to maintain an acceptable level of service. This equates to an average annual expenditure of $2,200,000 to fund all sealcoat, overlay, and street reconstruction projects. The City currently budgets $500,000 annually for sealcoat projects, leaving $1,700,000 to fund all overlay and street reconstruction projects in a given year. Per the adopted Special Assessments Policy, special assessments may fund up to 25% of overlay and street reconstruction projects. Staff proposes to use street reconstruction and overlay bonds to pay for project costs initially, with up to 25% of the bonds being paid back over time with special assessment proceeds. Recommendation: