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Home My WebLink About8A - Adopt a Street Reconst. Plan 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCil AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: SEPTEMBER 5, 2006 SA LARRY POPPlER, ASSISTANT CITY ENGINEER PUBLIC HEARING TO CONSIDER THE PROPOSAL TO ADOPT A STREET RECONSTRUCTION PLAN AND ISSUE GENERAL OBLIGATION STREET RECONSTRUCTION BONDS DISCUSSION: Introduction The purpose of this agenda item is to take public input on the proposed reconstruction plan with the intent to issue general obligation street reconstruction bonds for these projects. 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 financing elements of the Street Reconstruction Plan: Year Project 2007 County Road 21 - Franklin to Adelmann 2007 County Road 12/ TH 13 - TH 13 to Elm Avenue R:\Agenda Reports\September 5 2006\street recon plan PH agenda.doc www.cityofpriorlake.com City Cost $1,000,000.00 $300,000.00 Phone 952.447.4230 / Fax 952.447.4245 2008 ltasca 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 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 Adopting a Street Reconstruction Plan is necessary to utilize general obligation street reconstruction bonds for any of the projects identified in the Street Reconstruction Plan. However, State Statutes requires a unanimous (5-0) vote of the City Council in favor of the attached resolution. Since the full Council is not present, action on this item needs to be deferred to the next Council meeting on Tuesday, September 5, 2006. Staff recommends that the Street Reconstruction Plan be adopted at the next City Council meeting. FINANCIAL IMPACT: 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. ALTERNATIVES: 1. Approve a resolution adopting the Street Reconstruction Plan. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a specific reason and provide staff with direction. RECOMMENDED MOTION: Alternative # 1. ReVr by: -.-J Frank Boyles Steve Albrecht, Public Works Director/City Engineer R:\Agenda Reports\September 5 2006\street recon plan PH agenda.doc ~ PRJ~ t:C~ 16200 Eagle Creek Avenue S.E. U t!l Prior Lake, MN 55372-1714 \ '-' ) RESOLUTION 06-xx ~ A RESOLUTION ADOPTING THE STREET RECONSTRUCTION PLAN AND THE INTENT TO ISSUE GENERAL OBLIGATION STREET RECONSTRUCTION BONDS Motion By: Second By: WHEREAS, The following table identifies the City of Prior Lake Street Reconstruction Plan financing elements: Year Project City Cost 2007 County Road 21 - Franklin to Adelmann $1,000,000.00 2007 County Road 12/ TH 13 - TH 13 to Elm $300,000.00 Avenue 2008 Itasca Avenue, Summer Street, Robinson $2,160,000.00 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 Avenue $2,280,000.00 2010 County Road 12 $2,640,000.00 2011 Shady Beach Trail south segment and $2,585,000.00 Bayview Circle Total $14,440,000.00 WHEREAS, Issuing general obligation 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 adoption of the Street Reconstruction Plan with the intent to issue general obligation street reconstruction bonds. PASSED AND ADOPTED THIS 5TH DAY OF SEPTEMBER 2006. YES NO I Haugen I Dornbush I Erickson I LeMair I Millar HauQen Dornbush Erickson LeMalr Millar Frank Boyles, City Manager R:\Agenda Reports\September 5 2006\street recon plan PH resolution.doc www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245