8.3. SR 09-02-2014 - Laserfiche WebLink

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City of Elk - Request for Action River O. To Item Number Mayor and City Council 8.3 Agenda Section Meeting Date Prepared by General Business September 2, 2014 Justin Femrite, P.E., City Engineer Item Description Reviewed by Quiet Zone Funding Tim Simon, Finance Director Reviewed by Cal Portner, City Administrator Action Requested Approve,by motion, funding option for quiet zone improvements and internal loan resolution. Background/Discussion Direction from the City Council at the July 7, 2014, meeting was for staff to identify funding options to support an expanded quiet zone project that would include the installation of a 4-quadrant gate system at Jackson Avenue. In addition to this treatment at Jackson Avenue,the project will include installation of a wayside horn system at Proctor Road, and supplemental safety measures (channelization devices/raised medians) at 171"Avenue, 165"'Avenue, and Jarvis Street. The remaining crossings,will receive smaller upgrades that include minor channelization devices and signage upgrades. Historically, there has been no state or federal funding available to assist in the funding of quiet zones. The State Legislature set a new precedence in their last session when they allocated funding to the cities of Little Canada and Shoreview for their quiet zone upgrades. The same bill included $2.OM for additional railroad grade crossing safety improvements along rail routes used for oil transport. Staff has submitted the needs for our safety upgrades to the state for consideration,but there is no guarantee of funding. Staff reviewed various funding options from special assessments to bonding. Since this is a community- wide benefit staff identified using internal funds to avoid several fees that come with outside funding (studies, bond issuance costs etc.) Financial Impact The current estimate for implementation of a quiet zone is $1,350,000. The current Capital Improvement Plan identifies $500,000 of the costs funded from the Street Improvement Reserve. Staff discussed options to fund the remaining$850,000 less any amount that potentially could be received in state grants. It is proposed to cover this outstanding amount with a loan from the Municipal Liquor Store Enterprise Fund to be repaid with tax levy line item over a 10-year period starting with the 2015 levy payable 2016. An $850,000 note,with 2.46% (08/12/14 10 year US treasury rate) interest would require an annual tax levy line item of$96,402.30. The first payment would be made on February 1, 2017. Attachments • Loan Amortization schedule • Internal loan resolution P a w E A E U s r NaA f RE]