[Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] order um good morning welcome to the June 18 2024 community redevelopment meeting I'd like to call the CRA meeting again to order um so uh first of all first state of businesses the mayor is not going to be here she'll be here for the 9:00 meeting so uh if I could have a motion to excuse her absence for this CRA special meeting so moved second third all in favor fourth all in favor I I I in that most passes unanimously okay and next we'll go to Citizen input does anyone in the audience wish to speak on a topic that's not on the agenda okay nobody's rushing here forward so we'll continue on and then our order of business our main order of business since a special meeting is uh additional funding request on Skinner Boulevard complete streets Urban cdor Improvement project and you know you're going to give us bad news first thing in the morning like this B b or I'm we're going to turn it to Good News okay all right there you go okay Bob Bob iron Smith if you could go ahead and give Bob iron Smith economic development director for the city of dun Eden here at the CRA meeting here today with the uh staff recommending additional funding for the complete streets on Skinner Boulevard this is 1.59 4159 million this is needed uh they went out with the bid leting and uh this was the low bid uh PR local funding agreement that was approved in in April uh the city is uh obligated to fund additional cost for the project uh the good news on this is that dot is bringing another $925,000 to the initiative uh frankly do is is over $6 million in this project here funding 53.7% of the project this is really just unheard of dot is using this kind of as a prototype and what can be done with a State Street to turn into complete Street I do have Les Tyler Finance director here as well as Danielle with do for any questions regarding you know the bid letting this project is on schedule it is designed it is ready to uh start construction in the late fall we expect it to be about a 2-year type initiative this project will certainly transform to downtown we're currently 580 or Skinner Boulevard Bates downtown this will provide for a safe environment for follicular for cyclists for pedestrians it's also going to create a lot of Redevelopment activity this project actually been in the work since 2017 with initial $100,000 Grant from Ford pelis and then we were able to get a million dollar Grant from uh forward pelis and then dot has really stepped up to the play to fund it so unfortunately the environment that we live in today is very inflationary and uh this project similar to other projects that we've done of late came in over bid which which was initially estimated so uh the funding for this would come from different sources I certainly have less here to get any detail on it uh the reason it's going to come here at the C as well as at the city commission is it's crossing different funding sources uh the initial here to day would be $5 84,7 120 from the CRA uh which we do have uh for this project the rest would come from a budget adjustment uh which would necessitate arer interest savings that have occurred as well as the it Broadband uh change or adjustment there so with all that this project continues to move on we really think it's a legacy project certainly here to answer any questions as I said I have Danielle with do and I got Les Tyler here with Finance okay uh so uh any questions from up for staff and and John you want to start with you thank you um so I realize that we're going to go forward with this um can you can you just tell me a couple quick questions um how many bids were there on this project I think we've asked that question once before certainly I do not recall the answer well sure we we had three bids uh for the project they were all were fairly fairly close uh low bid of course was 9,1 184,000 the high bid was 9,931 th000 and the one in the middle was 9,268 so from a staff perspective uh the bids were all in line and and and close together so we have a N9 $9 million project that that's gone forward we had some estimates before we went over those estimates correct um we are now we are now um putting some additional pressure on on the era U fund uh to the tune of over 600 and uh and then the uh oh we have broadband and also broadband and then we had the CRA for almost $600,000 for this so um I just I just want to make a comment and and this is really not directed towards you at this point in time it's it's we're asking questions now um and that is uh I guess when we do these big projects right now we we have to be acutely aware of the fact that we've got uh shall we say a creep going on with regards to bids and uh not not necessarily a good time to do anything um you did make a comment that the do is is lumbering up for another 900 plus uh thousand of course we're we're coming up with with one with 1.5 corre and those monies from from us as well as from Dot um they do come from the not only the uh pelis um residents or taxpayers but also from us significantly at least 50% and and that's not just the CRA formula that's the total formula of what goes into this so um I guess I guess there's really no choice but to go forward that's good yes from staff perspective we we're very much heavily engaged in this project it is a game changer um as I said TOS over $6 million in the project that's almost unheard of they're paying 50 over 53% of it so yeah you know the other aspect was we underground utilities you know we had 2.1 million in there for utilities I do completely understand yeah so it becomes a very comprehensive project you know in many ways this is the uh most complicated infrastructure project that I've worked on not a real estate Redevelopment but an infrastructure and uh yeah there's just uh as you've seen with all the projects lately the inflationary component is is is a large one I will say that uh you know down the line we're going to see an increase in tax base uh we're seeing several Pro properties already uh starting to redevelop which is a good thing and that's what we want to see so this will round out our downtown and something that was originally planned many many years ago with the downtown technical advisory committee in in the 80s uh for the C master plan yeah it was something that that was felt was was needed and so we're finally following through with that and as I said we started this I was shocked when I looked we started this in 2017 so it's been a long time in the making okay um commissioner gal thank you vice mayor yeah um Bob the the CRA fund the 584 what does that mean to you as far as projects diverted you know it's impacting your fund absolutely certainly taking that into consideration I do have Les here I have spent a lot of time with the finance director Les looking at that because I was acutely concerned about that since it's it's going to be kind of the CRA as you know goes to 2033 so we're in a good position not to impact some of the projects we want to do downtown I.E the downtown streetcap uh portion of the Old City Hall so I think we're in pretty good shape but you know Les is obviously the numbers guy uh so I'm going to let Les go ahead and give a little bit of input on that if I may yeah good morning vice mayor commissioner Les Ty the finance director I just wanted to mention like Bob said we we looked at at the C fund and the uh with these changes the CR the C fund Can U can handle these from a cash flow standpoint uh it brings their fund balance estimate down to about probably 175,000 at the end of 24 time frame or 25 time frame um but just want to mention and that you know moving forward uh if if if the construction costs go up and we have change orders or if other parts of the project cost more then the CR fund will have to pay those you know moving forward and hopefully we won't have many of those but if we do the SI fund will have to absorb those too so uh if those are if those are reminder then the C fund can handle it and if not we'll have to look at doing a um a potential internal loan or that that sort of thing to to help the fund out from a cash flow standpoint if costs do go up during construction okay you know one thing excuse me I wanted to mention I'm sorry is that uh C is a little bit different from the general fund we're not in a situation where we build reserves if you don't spend it that needs to go back to well excuse me go back to tax go back to the taxing authorities so we need to expend the funds so it isn't a situation where we're trying to uh do a 15% or 20% reserve a little bit unique in that fashion and that I certainly understand but I know that CRA doesn't have money we don't have a rating day fund in CRA so this money came from somewhere else correct uh if not in total a little bit from each one or whatever and I know that those numbers change as those projects get closer correct but right now there are no projects in the CRA that are in Jeopardy because of this that's correct that's correct of course you know if if when we go out with the parking garage that'll be another discussion but yeah no we're in good shape okay and and how about uh broadbanding about the same thing there I don't know poor Michael got a hit on this at 6:15 Michael you want to come up good morning Michael nit director so we've already um contracted for phase one that's already been budgeted um phase two three and four which includes public services to City Hall the marina area and downtown we've contracted for the design work we're waiting for that to be complet so that money's already been obligated uh once we get that design work back then we will put off our bid to see where we're at and as I mentioned a previous commission meeting until we get those bids back we won't know which of those other three phases or if we can do them all with what's remaining in the the arpa funding okay and going forward does the design typically change and I guess what I'm getting at is we're going through the design phase now when it goes to actually doing the project if because of this or other things we don't have the funds to complete the project down the road do we have to go back to redesign or to those design will that stay the same for any type of fiber project that I've ever been involved in it stays the same okay un less unbeknownst to what's underground to the city or whoever's doing it um they've run into something but I've never known the design to change okay so something like this down the road can jeopardize the implementation of the project but we don't have to go all the way back to to square one okay all right that's all that I really had thank you vice mayor okay uh commissioner Walker or whoever you are with that suit on today just kidding you look very nice today very nice a lot of heat commissioner Walker very nice today sitting next to him in a t-shirt you know very uncomfortable yeah well we're not going to go into that Jeff it's a very nice t-shirt though appreciate anyway questions commissioner Walker yes uh thank you um so in terms of the whether the 2.6 or the 1.5 million that that basically's come in higher uh do you have a high level summary of what the major cost drivers you're right and you were right with the first number because the dot is bring in 925 I'm going to let Danielle talk a little bit about the bid letting okay Danielle you're asking about the bid and as far as what cost items came in higher whether it was concrete or asalt is what I understand right Danielle with the Department of Transportation thank you it's been a great partner with us too by the way yes thank you I did look at the individual pay items and it was mainly asphalt that came in slightly higher um but there was an overall General trend of just inflationary increases from our original estimate um when we drafted up to LFA in November of last year okay is your is your mic on I can I'm having a hard time yeah it's okay I'm sorry can you say that one more time yeah the the main there was an overall trend of an increase is showing inflation from our original estimate when the local funding agreement was drafted in November of 23 um but the asphalt pay items the Aggregate and we're seeing some rock shortages um that was most of the material increases for overall for the project Trend okay um yeah that's that well I guess I I can understand asphalt oil oil component oil yeah um okay um and you know one of the things that is is somewhat unique to this project is the um federal and state contributions um where are we at percentage wise in terms of federal and state and then the city contribution to this project wow well federal and state combined is 53.7% uh as far as federal and state gee I would have a hard time Discerning that I don't know if you have any additional I don't have that percentage off the top of my head uh yeah it's a heavy lift by federal and state that's over 53% for that project and of course A lot of it is you know obviously it's underground utilities as I said the 2.1 million there about yeah and that's you know in my experience that that is a pretty high percentage for any projects that get taken on I yeah from what I've seen in the past this is you know Danielle can speak more of course she sees a little bigger landscape than I do but yeah this is a very strong participation by by do they want this to happen they have a lot vested too this is going to be a prototype for them taking a state road that runs through a downtown how to change it make it slower safer and create other multim Mobility aspect so it's a big one but yeah Danielle I don't know if you have any addition to add to just in regards to utility cost we are seeing the same sort of material Trend increases I will say out here with the corridor there's also a difficult factor of getting that underground in there so there's some on the constructibility side for this complex project you know I I will say too the other thing from you know the obviously the the input from the commission was very strong and Dot listened heard and they're going to continue to keep that traffic signal at the Crossing that was a big deal so thank you D has been a great partner yeah um yep thank you that was already designed as as a hawk for the most part so for them to make the change is a big deal so we're excited about that and maybe this question is for less but you had mentioned debt financing um how are you able to walk us through how that will work exactly um I I you you mentioned a couple of things but I'm still a little bit you yeah not clear to me yeah in general uh with the budget the way it is today uh we can do this project with no debt financing at all uh if if the if the uh if the private property conversions cost significantly more or more than we have budgeted and or if the there's change orders with the construction that are large uh all that would be the city's responsibility and that would uh I would assume fall to the CRA fund and uh if it's a if it's a small number then uh the fund the fund can handle it but if it became a million dollars or or more then we'd probably come to the commission with an internal loan of some sort for three years to help uh fund those those increas in costs and then if it was and if it was a significant number if became over two 2 million or 3 million which I don't expect that but if it were then we'd probably do an internal loan for a period of time with the commission's approval then we'd go out and get probably a bank loan uh when uh package it with our Aquatic Complex loan and do a bank loan for probably uh 10 or 15 years and uh and and pay that internal Lo off and flend it that way uh so we have two options internal loan would be our first Avenue and then if we needed to if it was a large number we'd eventually uh look at maybe doing a bank loan if that were to happen okay yeah we're we're truly hoping that it's not going to happen yeah I don't want to enter into Danielle's role here as as I'm not an engineer but typically what I've seen is when you're going from four lanes to two lanes you have that lane for mobilization for staging for constru it makes the job a lot easier and Daniel I don't know if you have anything add on that but I'm thinking that can be the case and and we certainly hoping for that but whenever you have that extra area we call for the work Zone um and reducing the number of lanes you have to keep active typically we keep the same number of lanes active especially with that underground work it gives them a little bit more room because they're going to they have that curb they're constrained with the sidewalk we we maintain pedestrian access during construction so that little extra room helps all that happen Okay uh and just as the last question um and I just want to make sure this is more for people anybody watching um my understanding and this is just for confirmation my understanding is is that because of where we're currently at with the broadbanding project um there you know we we want to make sure that the arpa funds get fully incumbered by the end of the year is that is that that's one of the the the deciding factors right in terms of using ARA that's one that's one of the important things is we want to we want to spend or commit the funds as soon as possible that's correct yeah okay all right that's all I've got thank you great um so I just have one question um Les because to me so I'll ask for your confirmation the real impact here is to our four big capital projects the golf course which came you know came in over Skinner coming in over pool in design and the garage almost in design um so I mean because we have have to decide if Broadband beats out those anyway because so it comes back to the impact and in your opinion what's the impact to our key um project goals the only impact I would say would be that we have uh contingency uh we have contingency in the in the arpa fund with interest earnings we've talked about a few times and we're now uh using 390 394,000 those interest earnings uh towards this uh funding this uh we we still have other interest earnings we still got about uh 200,000 of Interest earnings uh that's available for other projects and then that'll and we'll continue to earn interest until the funds are fully spent over the next two years but the only impact that I see is just you know is we had contingency for for any project and we're identifying 394 for this project uh but again we we will have other interests we have 200,000 left and that will continue to grow some in the future but uh that be that' be my impact the biggest impact to me to those projects okay thank you um okay um do have are there any questions from the public any citizen like to come forward and speak to this issue okay seeing none I'll close the public hearing and I'll turn for final comments and uh first I need a motion now so move second okay so final comments commissioner Gal A November 1 deadline for completion would be wonderful understand uh you know I in the you know this project U again is is unique because of the the partnership that we have with Federal and the state and uh I I still I I believe that if you just look at the aesthetic makeup of our downtown specifically to the north um and to the east bringing that area into the downtown is is is going to be a benefit to the city and um so those are my comments m g or TOA sorry I have nothing further thank okay um yeah and my only comment is I mean you know what 53% contribution from others and when you add in the fact that even our money is rescue money arpa money and CRA money and so I mean it's a project banded together by a lot of Partnerships you know paying a lot of the cost and of course Danielle thank you very much for being here appreciate the partnership you guys have offered and I I agree it'll be a great project it's going to be another aspect to widen our downtown and make it special um so um okay uh all in favor I I I and the motion passes unanimously okay and uh if there's nothing else for the good of the order for the CRA meeting I will adjourn the meeting [Music]