2008_1013_packet - Laserfiche WebLink

Home

6. Seal .Coat :-Each year city maintenance staff seal coats approximately 15 miles of city streets. 62 This consists of applying a film of bituminous oil and covering it with fine aggregate. These 63 treatments have proven to add a minimum of 10 years to the life of the pavement. With 64 potential budgetary constraints in 2008, we may need to reduce the size of the program 65 depending on the bid prices received in February 2009 for materials. Asphalt material prices 66 are extremely volatile and doubled in price by mid-summer 2008. Reducing the program 67 will have a negative impact on the life of the pavements as every $,I of deferred maintenance 68 has a $,5 future cost. M 70 FINANCIAL IMPACTS '7 1 There are reserves in the Street Infrastructure Fund to fund the Mill and Overlay program. Due '72 to estimated 20-25 percent increases in construction costs this level of program is not sustainable '7 3 from the interest earnings. Low market interest rates will also impact the funds ability to sustain 74 this program in the future. '7 5 76 The reconstruction work and MSS street overlays are proposed to be funded from the City's 77 MS A account. We estimate that we will need almost $,1.9 from our MSS account for this work 78 plan. We will only have $1.4 million available in our state aid account. M.S. 162.14 provides '7 9 for municipalities to make advances from future year's MSA allocations for the purpose of expediting construction. This process not only helps reduce the construction fund balance, but also allows municipalities to fund projects that may be delayed due to funding shortages. In 82 order to advance encumber MSS dollars to ensure we have adequate funding for this level of 83 MSA construction,, the City needs to make a formal request. Staff will be bringing a resolution 84 to the City Council later this year to make this formal request. 6 The sealcoat crack sealing, and major patching are funded from the street maintenance budget. This budget is supported by the general fund tax levy. The proposed budget holds the supplies line items at 2008 levels. Due to the nearly doubling of some asphalt materials costs in 2008 and 9 other materials affected by transportation cost increases, we are estimating completing aDDroximatelv 50 percent of our normal Davement DOliCVlevel manor maintenance in 2009- This 9'i would increase if we see significant reduction in current materials pricing before we bid 92 materials in February of 2009. 93 94 By taking action today, the Council will be authorizing staff to work on plans for the projects as 9:w described. As project bids are opened, staff will bring individual contracts to the City Council 96 for approval. A detailed cost breakdown will be included with those Council Actions. 97 98 STAFF RECOMMENDATION 99 Staff Recommendation: The following projects are recommended for construction in 2009. Mill and Overlav Proiects County Road C2 (Cleveland Ave to Langton Lake Parr Street Infrastructure Fund $,71,864.00 -County Road C2 (cul- de- sac to Lexington) MSS $25,996.10 Page 3 of 4