Agenda - Public Works Committee - 10/15/2019

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be assessed a portion of the cost. The estimated project cost for reconstructing this segment of Variolite Street is $2,643,600, of which $315,3330 is estimated to be funded through Stormwater Funds. This leaves an estimated $2,328,270 unfunded. Municipal State Aid System funds are available to pay for the reconstruction of Variolite Street in 2020 since Variolite Street is an MSA route. In addition, approximately $203,000 is available from the unexpended street reconstruction fund as recently discussed. City Engineer Westby stated that from 2015 through 2019, street reconstruction and overlay project funding programs included levying special assessments against benefiting properties to cover up to 25 percent of eligible project costs in compliance with applicable provisions of the When special assessments pays for a portion of the project costs, the first step in the project development process is to request Council authorization to prepare a Feasibility Report. The Feasibility Report explores numerous aspects of the proposed improvements including whether they are feasible, necessary and cost-effective, and whether they should be completed alone or in conjunction with other improvements. Estimated project costs and a project funding program are also developed in greater detail than what was used to estimate costs and funding sources for the Capital Improvement Program. A preliminary project schedule is also developed within the Feasibility Report. Over the last five years, staff have typically started to develop street reconstruction and overlay projects for the following year in July or August, based on workload and scope of the projects. This is because special assessments were used to pay for a portion of the project costs. Later that fall staff requests City Council acceptance of the Feasibility Report and authorization to prepare plans and specifications. Plans are then approved during the winter and the project is bid over the winter so construction can begin in the spring. City Engineer Westby stated that the City does not currently have an adopted five-year Street Reconstruction and Overlay Program identifying projects that are eligible for bonding to allow the Special Assessments Policy is still valid and can be used to guide the City in applying special assessments to street reconstruction and overlay projects when bonding is not needed. On July 16, 2019, the Public Works Committee provided consensus direction for staff to proceed on development of the Variolite Street reconstruction project for 2020. However, during that meeting it was discussed that the Committee would consider whether special assessments should be used to pay for a portion of the project costs at a later date. On September 10, 2019, staff received City Council authorization for Hakanson Anderson to complete topographic survey work, and for Northern Technologies, Inc. to prepare a geotechnical report, including the completion of 61 soil borings and pavement corings. City Engineer Westby stated that staff is now requesting that the Public Works Committee discuss whether special assessment should be used to pay for a portion of the project costs, and then provide a recommendation to the City Council on whether special assessments should be part of the funding program, and, if so, in what amount. If assessments are to be included in the funding program for this project, staff will need to start working on the Feasibility Report as soon as possible. City Engineer Westby stated that staff recommends the following funding program for this project: Public Works Committee / September 17, 2019 Page 5 of 13