Agenda - Council - 07/09/2019 - Laserfiche WebLink

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Public Works Committee 5. 1. Meeting Date: 06/18/2019 By: Bruce Westby, Engineering/Public Works Title: Review Plan to Spend Unencumbered Pavement Management Program Funds Purpose/Background: Purpose: The purpose of this case is to review Staff's plan to spend unencumbered pavement management program funds. Background: During the Public Works Committee meeting on May 21, 2019, Staff was directed to present a case this month explaining the amount and sources of the unexpended pavement management program funds, why these funds were not spent earlier, and what Staff's plans are to spend the funds. The current balance of the unencumbered funds is approximately $901,000. This includes $872,500 from 2013 budgeted pavement management project funds that went unspent ($1,327,500 was budgeted, $455,000 was spent), and $28,500 from 5-years of bond premiums and interest earnings. Staff chose not to expend the funds earlier because street reconstruction bonds cannot be used to fund improvements that did not previously exist. For example, if curb & gutter or sidewalk did not exist before a street was reconstructed, but was to be constructed as part of a street reconstruction project, street reconstruction bonds could not fund such improvements. In addition, when the City widens or strengthens (thicker pavement section) a street, the extra costs for widening or strengthening cannot come from street reconstruction bonds. The city therefore used some of the excess funds to cover such improvements on previous projects. Given the City's long-term pavement management plan and current funding policy, these funds were retained for `un-bondable' costs that may have arisen. Staff plans to expend the unencumbered funds using approximately $698,000 to cover City Improvement Projects #19-01, Ford Brook Estates Street Reconstructions, and #19-03, Wood Pond Hills & Chestnut Ridge Street Reconstructions. In addition, since the City is currently considering the implementation of franchise fees, including potential rebates of these fees to offset special assessments on properties previously assessed for street reconstruction and overlay improvements, Staff did not want to add another year of debt to the tax levy if the franchise fee were to be implemented. This will leave a balance of roughly $203,000 that could be used to fund franchise fee rebates if franchise fees are implemented, or it could be used to fund a portion of the 2020 street reconstruction or overlay improvement projects. Timeframe: Staff estimates 10 minutes will be required to present this case and respond to questions. Observations/Alternatives: NA Funding Source: NA Recommendation: