HomeMy WebLinkAbout06/11/1986CITY COUNCIL WORK SESSION
June 11, 1986
4:00 p.m.
Large Conference Room
Members present: Mayor McKinley, Councilpersons Seeber, Wright, Budak,
Lichty, Angel and Miller.
The Agenda, as proposed, was approved.
The Mayor announced that this work session was to discuss a plan for a
City-wide Street Improvement Program including financing alternatives.
Eric Thorson, City Engineer, reviewed five (5) types of street improvements
and maintenance. These included:
(1) Maintenance of good condition and new paved streets. This includes
sweeping, crack and joint sealing, utility -cut patching, surface
sealing and other minor repairs. Most of this work is performed by
the Street Department and is funded by Road Use Tax Funds.
(2) Maintenance of unimproved streets. Types of work included in this
category are oiling, grading, patching, pot -hole filling, and the
recycled asphalt projects. Again much of this work is done by the
Street Department and is funded with Road Use Tax Funds.
Paving of unimproved streets. This type of work includes asphalt
paving and concrete paving and is generally constructed by
contractors. The current method of funding this improvement is
with assessments and Block Grant Funds.
(4) Repairs to poor condition paved streets. This includes resurfacing
both black -topping and white -topping, milling, patching, and
mud -jacking. Currently this work is being performed by the City
Street Department and contractors and is funded with City Funds.
(5) Reconstruction of paved streets. This includes replacing existing
streets with asphalt or concrete paving. Much of this work is
currently being!done by contract and is funded with City funds.
In order to get an idea of the magnitude of the problem with the condition of
City streets, Mr. Thorson presented estimated costs of improving the City's
current inventory of streets. For example, the estimated cost to oil all the
unimproved streets in the City would be 2.85 million dollars. The estimated
cost to pave all unimproved streets in Waterloo is estimated to cost 34.8
million dollars. The estimated cost to permanently repair pot -holes in
existing concrete and asphalt streets would be 20.6 million dollars. The
estimated cost to reconstruct streets in the City would be approximately
178 million dollars. The total cost to do all of the above would be
approximately 200 million dollars. Mayor McKinley stressed that now that the
magnitude of the problem is known, the Council must now consider a plan to
begin addressing this problem.
Those streets that are to be included in future street reconstruction
programs were reviewed. Currently the City is allocating one million dollars
yearly to the reconstruction of streets.
The City Engineering Staff showed a video indicating other streets in the
City not included on any of these lists that are in immediate need of
reconstruction.
(3)
Bruce Meisinger, Budget Analyst, was asked to review various financing
alternatives. Several methods were reviewed including the sales and service
tax, a vehicle tax, and general obligation bond financing. The sales and
service tax and the vehicle tax is a recently state -enacted local option tax.
The sales and service tax would generate approximately 3.5 million dollars
per year based on current sales. The vehicle tax would be another method of
financing. In order to generate approximately one million dollars in
revenues and taking the estimated 70,000 vehicles in the City, a tax of $14
per vehicle would be levied. Both the vehicle and sales and services taxes
CITY COUNCIL WORK SESSION
PAGE TWO
require a referendum. The vehicle tax revenues can only be used for street
improvements. Currently the City finances most of its street improvements
through the Road Use Tax Fund. Bruce stated that in order to maintain
generation of one million dollars through the issuance of general obligation
bonds for street reconstruction would require approximately a one percent
(1%) increase in taxes per year. It was also pointed out that the Interstate
Substitution Program now in progress provides many street improvements at a
much lesser cost to the City (15 percent of the construction cost).
Fedon Petrides of Brice, Petrides/Donohue Associates, stated that the
reconstruction of the City street is an ongoing problem and must be
addressed.
Mr. Thorson also indicated that the Engineering Staff will begin work on a
Pavement Management Program. At the current time, the cost of the
implementation of this program is unknown but that the program consists of
three elements: (1) Inventory of current street conditions, (2) the
causation of deteriorating streets, and (3) Logging and analyzing this
information with the use of a computer.
A representative of Cutler Repaving, Inc., presented the Council a program
that would restore the top inch of asphalt. Approximate cost for one block
of City street would be $22,750. Several Councilpersons expressed that this
does not address the real problem of the sub -base and any drainage problems
that may result. Councilperson Miller stated that the City should be looking
at the total problem and not just a temporary solution. Councilperson Seeber
said the bottom line is whether or not the Council wishes to raise taxes to
raise money for these improvements.
There was general discussion between the Mayor and the Councilmembers
regarding whether the City should investigate the local option taxes
explained by Mr. Meisinger or whether the City should pursue funds through
the issuance of the general obligation bonds. If the issuance of general
obligation bonds was usedfas a funding source, the issuance of 3 million
dollars of general obligation bonds would require that taxes be increased by
three percent (3%) the first year and approximately 5-1/2 percent the second
year. The Councilmembers expressed a need to implement a long-range plan for
street reconstruction. It was a general consensus of the Council that the
Engineering Staff be directed to begin design on a long-range plan to repair
to City Streets and that the Mayor explore with the other Governmental bodies
in the County the possibility of a local option tax.
With no further business before the Committee, the meeting was adjourned.
Larry P. Burger
Clerk/Auditor