HomeMy WebLinkAbout02 09 2015 Work Session Report O� PR12
u M 4646 Dakota Street SE
Prior Lake,MN 55372
`��N1Vfi50��
CITY COUNCIL WORKSHOP AGENDA REPORT
MEETING DATE: FEBRUARY 9, 2015
AGENDA#: WORK SESSION
PREPARED BY: LARRY POPPLER, ENGINEERING & BUILDING INSPECTIONS DIRECTOR
JERILYN ERICKSON, FINANCE DIRECTOR
KATY GEHLER, PUBLIC WORKS & NATURAL RESOURCES DIRECTOR
AGENDA ITEM: A. CREDIT RIVER ROAD PROJECT
B. 150TH AND TH 13 PROJECT
C. PROJECT FUNDING
DISCUSSION: Introduction
The purpose of this workshop is to present to the Council an update on the status of
several projects as well as bonding for 2015 projects.
History
Yearly the City Council approves the Capital Improvement Plan which sets in motion
the projects for the upcoming year and beyond. In some cases the projects involve
other agencies and planning for those projects spans years in order to line up fund-
ing.
City Staff attempt to be conservative in calculating preliminary costs for the projects
in the CIP. However as these projects develop and are studied, new information is
encountered that can sometimes change project costs.
Tonight we would like to share specific information relating to two projects and have
a discussion on overall project funding.
Current Circumstances
Credit River Road
The Credit River Road project builds two segments of Credit River Road adjacent to
CSAH 21. The segment of Credit River Road between Franklin Trail and TH 13 may
be impacted in the future when the CSAH 21 and TH 13 intersection is recon-
structed. City staff has studied this area and will present design options with the City
Council. The costs and impacts of these options will be discussed. We have been
working with the county of late on this topic and there may be some information
available to share from recent discussions.
TH 13/ 150th Street
On the regular City Council agenda is an item which discusses property acquisition
for the TH 13 and 150th Street Project. Please review that report for more infor-
mation. The discussion at the work session will be focused on the reasons for addi-
tional property acquisition and increases in overall costs.
Phone 952.447.9800/Fax 952.447.4245/www.cityofpriorlake.com
Project Funding
The above referenced projects and others listed below have a significant impact on
the tax levy and approach the$10 million bank qualified bonding limits. Project fund-
ing for all projects will be discussed to provide the Council with an overall financial
picture for 2015 projects.
Welcome Avenue (2013)
On February 23, 2015, a closed executive session will be held to discuss the status
of the two special assessment appeals and the potential financial impact. Final anal-
ysis of the project costs and funding sources will be prepared and discussed, as
well.
Stemmer Ridge
Costs have been incurred to prepare a feasibility report reflecting various options.
The Council approved a contract which authorized up to about $95k to prepare this
feasibility report. Project expenditures (excluding staff time) through 12/31/14
amount to $73k for this contract as well as a sanitary sewer extension permit.
The Council will be considering a contract later this evening for the design, prepara-
tion of plans and specifications, and construction observation for the Stemmer Ridge
improvements in the amount of$496,800 in order that the special assessment pro-
ject which the council has already approved may move forward. On a separate track,
the City is also pursuing an agreement with the SMSC. The SMSC is working with
Bolton Menk as their engineer.
If the Stemmer Ridge Project proceeds as a City project, the City would bond ap-
proximately $3.6 Million.
Conclusion
City Staff are looking for direction from the City Council regarding the Credit River
Road alignment options as well as questions or comments with respect to project
funding.
FINANCIAL Estimated Bonding Needs for 2015
IMPACT: Attached is an estimate of the bonding requirements for projects in 2015. The origi-
nal estimate that was prepared in conjunction with the 2015-2019 Capital Improve-
ment Program was$10M. Based on updated figures and Council actions or direction
on specific projects, the estimate has increased to $11.8M. The amounts could fur-
ther change based on actual bids, cost of property acquisition, etc.
On February 23, 2015, the Council will be considering the annual "Declaration of
Intent to Bond" as part of the consent agenda. This will include the $11.8M plus the
other projects that were originally included in the CIP. This preserves the City's op-
tion to issue debt for these projects but in no way obligates the City to do so.
ATTACHMENTS: 1) Bonding Estimate
2
CITY OF PRIOR LAKE
2015A BONDED PROJECTS
Mushtown/Maple Rolling Oaks TH131150th Stemmer Ridge Duluth Ave Credit River Rd 2015 Recon CR21/Main CR83 TOTALS
Panama (CR82 to SRR) Arcadia Signal Payment
TRN15-000001 TRN15-000006 TRN14-000004
2015-2019 CIP:
Tax Levy $ 388,384 $ - $ 650,000 $ - $ 500,000 $ 950,000 $ 1,410,000 $ 250,000 $ 57,000 $ 4,205,384
Assessments $ 906,388 $ 270,000 $ - $ 3,424,187 $ - $ 250,000 $ 975,000 $ - $ - $ 5,825,575
Anticipated Bond Issue $ 1,294,772 $ 270,000 $ 650,000 $ 3,424,187 $ 500,000 $ 1,200,000 $ 2,385,000 $ 250,000 $ 57,000 $ 10,030,959
UPDATED ESTIMATES:
Tax Levy $ 441,570 $ - $ 2,251,000 $ - $ 777,000 S 695,433 $ 1,644,581 $ - $ - $ 5,809,584
Assessments $ 804,190 $ $ - $ 3636000 $ - $ 399,185 $ 1729,895 $ $ $ 5,969,270
Anticipated Bond Issue $ 1,245 7_60 $ $ 2,251,000 $ 3,636,000 $ 777,000 $ 1,094,618 $ 2,774,476 $ S. $ 11.778,854
2/9/2015 12/22/2014 1/26/2015 12/22/2014 11/24/2014
0:19ovds12015 Bond tssuso ;2015 Boyd sonedwe:2015 Bond Schedule 7 2015