The URL can be used to link to this page

Home My WebLink About5F - Street Reconstruction 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT AUGUST 7,2006 SF LARRY POPPLER, ASSISTANT CITY ENGINEER CONSIDER APPROVAL OF A RESOLUTION SCHEDULING A PUBLIC HEARING TO CONSIDER THE PROPOSAL TO ADOPT A STREET RECONSTRUCTION PLAN AND THE INTENT TO ISSUE GENERAL OBLIGATION STREET RECONSTRUCTION BONDS Introduction The purpose of this agenda item is to schedule a public hearing to consider a proposal to adopt a Street Reconstruction Plan and the intent to issue general obligation street reconstruction bonds. Historv In 2002, the Legislature made a variety of changes in the powers of local governments to issue bonds and incur other forms of debt. A new subdivision 3b was added to Minnesota Statutes, Section 475.58 authorizing municipalities to issue bonds without a referendum under street reconstruction programs (see also, Laws of Minnesota for 2002, Chapter 390, Section 18). The 2003 Legislature clarified that street reconstruction bonds may be issued for utility replacement and relocation and other activities incidental to the street reconstruction, but does not include the portion of project cost allocable to widening a street or adding curbs and gutters where none previously existed. Granting municipalities the authority to issue bonds under Minnesota Statutes, Chapter 475 for street reconstruction without regard to election requirements affords cities the opportunity of financing this type of improvement without having to specially assess at least 20% of the project costs. The bonds may only be issued if the following conditions are met: a unanimous council vote that the work to be done is part of the reconstruction plan, a public notice is provided, reverse referendum is authorized, and the amount to be financed is subject to the municipalities net debt limit, even if they would be exempt under another law. The law authorizes issuance of obligations without an election for reconstruction of streets, if the bonds are issued under a 5-year Street Reconstruction Plan and the conditions provided above are met. The following table identifies the Street Reconstruction Plan as identified in the 2007-2011 Capital Improvement Program: Year 2007 Project County Road 21 - Franklin to Adelmann R:\Agenda Reports\Aug 7 2006\Agenda 080706 street recon plan set PH.doc www.cityofpriorlake.com City Cost $1,000,000.00 Phone 952.447.4230 / Fax 952.447.4245 FINANCIAL IMPACT: ALTERNATIVES: RECOMMENDED MOTION: ReVi~1J 2007 County Road 12/ TH 13 - TH 13 $300,000.00 to Elm Avenue 2008 Itasca Avenue, Summer Street, $2,160,000.00 Robinson Circle, and Franklin Circle 2009 Brooks Circle, Filmore Avenue, $2,685,000.00 and Mandan Avenue 2009 County Road 21 North $790,000.00 2010 Industrial Circle and Welcome $2,280,000.00 Avenue 2010 County Road 12 $2,640,000.00 2011 Shady Beach Trail south segment $2,585,000.00 and Bayview Circle Total $14,440,000.00 Current Circumstances Issuing general obligation street reconstruction bonds is another mechanism to fund street reconstruction projects. Adopting a Street Reconstruction Plan with the intent to issue general obligation street reconstruction bonds does not require the City to utilize this mechanism. The City could elect to specially assess for these projects even if the City Council approves this resolution. The City must also follow Minnesota State Statutes 429 for projects which the City intends to specially assess. Conclusion Scheduling a public hearing is the first step in adopting a Street Reconstruction Plan and starting the process of utilizing general obligation street reconstruction bonds. Notice of this Public Hearing must be published 10 days prior to the Public Hearing. Staff recommends that the Public Hearing be scheduled for August 21, 2006. Assessments for some of the upcoming County Road projects may not reach the 20% threshold for special assessment. In those cases this mechanism can be utilized to fund the City's portion of the improvements. 1. Approve a resolution scheduling a public hearing to consider the proposal to adopt a Street Reconstruction Plan and the intent to issue general obligation street reconstruction bonds. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a specific reason and provide staff with direction. Alternative # 1. Frank Boyles, Citf~ag r Steve Albrecht, Public Works Director/City Engineer R:\Agenda Report~g 7 2 06\Agenda 080706 street recon plan set PH.doc tiPRl~ tC~ 16200 Eagle Creek Avenue S.E. U f!'J Prior Lake, MN 55372-1714 \ 'lIII "J RESOLUTION 06-xx ~"'NES~Y A Kt::sOLUTION SCHEDULING A PUBLIC HEARING TO CONSIDER THE PROPOSAL TO ADOPT A STREET RECONSTRUCTION PLAN AND THE INTENT TO ISSUE GENERAL OBLIGATION STREET RECONSTRUCTION BONDS Motion By: Second By: WHEREAS, The following table identifies the Street Reconstruction Plan as identified in the 2007- 2011 Capital Improvement Program: Year Project City Cost 2007 County Road 21 - Franklin to $1,000,000.00 Adelmann 2007 County Road 12/ TH 13 - TH 13 to $300,000.00 Elm Avenue 2008 Itasca Avenue, Summer Street, $2,160,000.00 Robinson Circle, and Franklin Circle 2009 Brooks Circle, Filmore Avenue, and $2,685,000.00 Mandan Avenue 2009 County Road 21 North $790,000.00 2010 Industrial Circle and Welcome $2,280,000.00 Avenue 2010 County Road 12 $2,640,000.00 2011 Shady Beach Trail south segment $2,585,000.00 and Bayview Circle Total $14,440,000.00 WHEREAS, Issuing general obligation street reconstruction bonds is another mechanism to fund street reconstruction projects. Adopting a Street Reconstruction Plan with the intent to issue general obligation street reconstruction bonds does not require the City to utilize this mechanism. WHEREAS, Street reconstruction is necessary to provide residents the opportunity of safe travel while commuting throughout the City. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City Council authorizes the scheduling of a public hearing for August 21, 2006, to consider the proposal to adopt a Street Reconstruction Plan and the intent to issue general obligation street reconstruction bonds. PASSED AND ADOPTED THIS 7TH DAY OF AUGUST 2006. YES NO I Haugen I Dornbush I Erickson I LeMair I Millar Haugen Dornbush Erickson LeMair Millar Frank Boyles, City Manager www.cityofpriorlake.com R:\Agenda Reports\Aug 7 2006\Resolution ~6~~~~.~I.fJ'.~~tft ~Hm 952.447.4245 CITY OF PRIOR LAKE, MINNESOTA NOTICE OF PUBLIC HEARING ON THE PROPOSAL TO ADOPT A STREET RECONSTRUCTION PLAN AND THE INTENT TO ISSUE GENERAL OBLIGATION STREET RECONSTRUCTION BONDS Notice is hereby given that the City Council of the City of Prior Lake, Minnesota, will meet on August 21,2006, at 7:00 p.m. at the Prior Lake Fire Station 1, 16776 Fish Point Road, in Prior Lake, Minnesota, for the purpose of conducting a public hearing on (a) the proposal to adopt a five year street reconstruction plan and (b) the intent to issue not to exceed approximately $14,440,000.00 general obligation street reconstruction bonds under its street reconstruction plan for street reconstruction improvements described in the street reconstruction plan. All persons may appear at the August 21, 2006 public hearing and present their views to the Council orally or in writing. If a petition requesting a vote on the issuance of the general obligation street reconstruction bonds is signed by voters equal to five percent of the votes cast in the last municipal general election and is filed with the City Manager within 30 days of August 21, 2006, the City may issue the general obligation street reconstruction bonds only after obtaining the approval of a majority of the voters voting on the question of the issuance of the general obligation street reconstruction bonds. 1926551vl