7.2 Centennial Road Improvements Bond AuthorizationAGENDA SECTION
NO:
ITEM
NO: 2
Page I
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
ORIGINATING DEPARTMENT
Finance & Administration
BY: Rod Franz
DATE TIME
2/22116 4:00 P.M.
FISCAL APPROVAL:
BY: V_i~
FINAL APPROVAL:
ITEM: Resolution No. 16-7325
Consider Resolution Number 16-7325, Initiating proceedings by the Governing Body for street and
intersection improvements in the City of Salina, Kansas
BACKGROUND:
Improvements to Centennial Road from Jumper to the south city limits have been incorporated into
the Capital Improvements Program for several years. The project estimate in the Capital
Improvements program is $1,500,000, with $700,000 of that to be provided by bond proceeds and
$800,000 in Federal Exchange Funds scheduled for fiscal years 2016 and 2017. While the Exchange
Funds allocation is not certain, it has been consistent since its inception, and we have incorporated
this funding source into our Capital Improvement Planning.
Construction is scheduled for 2016. The authorization requested is $1,300,000 plus costs of
temporary financing and issuance. This cost includes the construction bid, project design, and other
miscellaneous costs, and a 5% allowance for contingent items. With Federal Exchange Funds
included in the financing, the ultimate amount of bonds sold will be on the order of $500,000 for a
term of 15 years. Annual payments will be approximately $40,000 per year, and are incorporated into
the Capital Improvements program financial pro -forma.
This project will involve the removal, replacement, and upgrading of Centennial Road from Jumper to
the south city limits. The project will include: removal and replacement of existing pavement, addition
of curb and gutter, addition of underground storm sewers, extension of reinforced box culverts, and a
10' sidewalk on one side of Centennial road. This project will complete improvements to Centennial
road throughout the length of the Airport Industrial Park
The resolution authorizes the project under the Main Trafficways statute (KSA 12-685), and is now
necessary to insure that preliminary costs (property acquisition, etc.) may be paid out of bond
proceeds. We anticipate construction to occur in 2016, and the bonds for the project to be issued in
2017.
FISCAL NOTE:
This project is included in the 2016 — 2020 Capital improvements program at an estimated cost of
$1,500,000, with $700,000 to be financed with bonds. The annual bonding expense at that level was
estimated at $52,000 over 15 years. As bid, the project will now require $500,000 in bonds, with an
estimated annual payment of about $40,000. This will be provided with future tax levy's, beginning
with the 2018 budget year.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
2122110 4:00 P.M.
RESOLUTION NUMBER 16-7325
A RESOLUTION INITIATING PROCEEDINGS BY THE GOVERNING BODY
FOR CERTAIN STREET, INTERSECTION, SIDEWALK, AND OTHER
RELATED IMPROVEMENTS IN THE CITY OF SALINA, KANSAS,
WHEREAS, by the adoption of Ordinance No. 02-10071 on February 25, 2002, the Governing
Body of the City of Salina, Kansas (the "City"), designated Centennial Road as a main traffieway
pursuant to K.S.A. 12-685 et seq. (the "Act"), and
WHEREAS, the Governing Body of the City has determined that it is necessary to improve or
reimprove portions of said main trafficway as follows:
Removal and replacement of the existing pavement, addition of curb and gutter, addition
of underground storm sewers, extension of reinforced box culverts, sidewalks on one side
of the road, and other related and necessary improvements, all located generally on
Centennial Road from Jumper to the south City limits.
(the "Improvements"); and
WHEREAS, reports, estimates and plans have been compiled and furnished to the Governing
Body of the City to provide them with sufficient information in order to enable them to commence
proceedings for the construction of the Improvements.
NOW THEREFORE BE IT RESOLVED by the Governing Body of the City of Salina,
Kansas:
Section 1. Proceedings are hereby initiated pursuant to the provisions of the Act for the purpose
of proceeding with the Improvements.
Section 2. The City Manager and other City staff are authorized to take all necessary actions to
proceed with the Improvements.
Section 3. It is anticipated that the cost of the Improvements shall be paid from funds of the City
available for such purpose and/or by the City -at -large through the issuance of one or more series of
general obligation bonds and/or temporary notes of the City as provided by the Act, the estimated
maximum principal amount of such obligations being $1,300,000.00, plus costs of issuance and plus costs
of interest on any temporary financing.
Section 4. The City expects to make capital expenditures on and after the date of adoption of this
Resolution in connection with the Improvements, and intends to reimburse itself for such expenditures
with the proceeds of one or more series of general obligation bonds and/or temporary notes of the City in
the estimated maximum principal amount of $1,300,000.00, plus costs of issuance and plus costs of
interest on any temporary financing.
Section 5. This resolution shall be in full force and effect from and after its adoption.
Adopted by the Board of Commissioners and signed by the Mayor this 22nd day of February,
2016.
(SEAL)
ATTEST:
Shandi Wicks, CMC, City Clerk
-2-
Jon R. Blanchard, Mayor