Approve Resolution R2020-009, ordering improvements and preparation of plans and specifications for the 2020 Full-Depth Pavement Reconstruction Project, CIF-20-004.

Approve Resolution R2020-009.

On December 3, 2019, City Council ordered the feasibility report for the 2020 Full-Depth Pavement Reconstruction Project. The report was completed and received by City Council on January 21, 2020.

An informational meeting was conducted on January 27, 2020, for the property owners affected by the proposed project. The residents in attendance were provided an overview of the project; an opportunity to discuss the roadway design; and the opportunity to provide additional information about their neighborhood and properties relative to the project. In addition, a brief questionnaire was mailed to property owners asking for information specific to the street, storm water drainage and utilities in their neighborhoods. Attached to this memo is a Feasibility Report Amendment Memo that summarizes the discussion during the open house, a copy of the survey mailed to residents and a compilation of all comments received during the public engagement process.

In accordance with Minnesota Statute 429 and City Resolution R2020-009, a Public Hearing for the 2020 Full-Depth Pavement Reconstruction Project, CIF-20-004, is scheduled for this evening, February 4, 2020. Proper publication and notice for the improvement hearing have been provided.

City Council is recommended to conduct a public improvement hearing for the proposed improvements associated with the 2020 Full-Depth Pavement Reconstruction Project. Once the improvement hearing has been conducted, Council is recommended to consider ordering the improvements in accordance with Resolution R2020-009 and to prepare the plans and specifications for the project. A presentation of the project will be made at the public improvement hearing.

This project is not a petitioned improvement; therefore, adoption of the resolution ordering the improvement requires a 4/5ths vote.

The estimated total project cost is $2,799,500, which includes construction costs, contingency and engineering/administration/legal costs. Table 1 provides the estimated amounts per the 2020 Capital Improvement Plan compared to the updated amounts per the attached feasibility report.

Table 1. Cost and Funding Summary

The current estimate exceeds the CIP budget by $449,500 (19.1 percent). However, it is recommended to proceed with the project with the understanding that actual project costs will be determined once the project is bid, possibly resulting in a lower overall project cost. Project cost increases are mostly a result of including a 1-ft subcut/sand section under the rural residential roadway project areas.

Included in the resolution is new funding language that would allow the city to reimburse project costs from future bond proceeds. This language allows for greater flexibility in funding current and future projects, should the city desire or need this in the future. The additional language allows the city a period of up to three years to issue and reimburse itself with bond proceeds. The language does not change the requirements or administrative process for issuing debt. All debt issuance will still require separate approval by the City Council.