Road & Path Program Information
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REPORT ON ROAD & PATH PROGRAM 2-16-2018
At the regular monthly City Council meeting on February 1st, Nick Miller from Hawley Troxell, Sun Valley’s Bond Counsel, spoke about the adoption of Ordinance 524, which authorizes the issuance and sale of General Obligation Bonds Series 2018. Following the presentation by Mr. Miller and comments by Christian Anderson from Zions Bank on bond market topics, the Council unanimously voted to waive three readings and adopt the ordinance clearing the way to issue the bonds.
Following a meeting with Moody’s Investor Services on January 29th, the City received a AA2 rating on February 6th. The report cited as positives the City’s strong reserves, healthy fund balance policy, sound financial management and mix of revenue sources that help mitigate the high exposure to a single industry.
The competitive bid for the bonds will be held on Tuesday February 27th at 9:30 AM, MST.
Also on February 1st, the City’s team met with representatives from CH2M for the Program Initiation Workshop #2. We discussed various frameworks: design, financial, reporting, project controls and stakeholder strategy, including an organizational chart and a decision-making framework. Workshop #3 will take place on March 1st.
On February 15th, we received a bid proposal for Project Year 1. Our City Engineer will be evaluating the documents and will report to and recommend a decision to the City Council on March 1st.
Key dates:
2/27 Competitive Bond Sale
3/1 Recommendation of Award-Year 1 (2018) Project and Workshop #3
Final Official Closing Statement
REPORT TO COUNCIL ON ROAD & PATH PROGRAM 1-04-2018
This report is the first of monthly reports that will deal with the Sun Valley Road & Path Bond Issue and the Road & Path Program itself. It is my intention to address issues and progress on both these topics each month during my opening remarks at regular Council meetings. The remarks will be posted on the City website after each Council meeting. Today, we will hear from Nick Miller from Hawley Troxell, Sun Valley’s Bond Counsel, regarding legislative and administrative steps that must be taken before bond issuance. Christian Anderson from Zions Bank will address financial topics on the bonds.
Regarding the Road & Path Program:
On December 15th, Bill Whitesell, Wendy Crosby, Bryce Ternet and I, along with Mark Bowen, Travis Casch, and Betsy Roberts from CH2M and Sherri Newland, representing S&C Engineers, attended our kick-off meeting to discuss the construction program.
We spoke of the Bond Proposition, its passage by the voters and what success will look like (safe roads and paths for all citizens and visitors and improved livability). We discussed the Program Framework, Specific Projects, and Program Planning along with a comprehensive Program Schedule and Program Cash Flow. We also developed next steps for the group.
It was decided that each year’s projects would be considered separately and that separate RFPs and RFQs be issued annually. The exceptions to this process would be contracts for Survey and Geotechnical. A Construction General Contractor will be chosen by competitive bid each year. On today’s agenda we will consider a contract with S&C Engineers engaging them as Owner’s Representative for the project.
The projects for Year 1 are the Bitterroot area, Skyline Lane and Spur, Community School Guardrail, and Elkhorn Segment E path. Total spend is budgeted for approximately $2.2M. Should we decide to include Elkhorn Segment C path, it would add another $160K to the first year spend.
NEXT STEPS
Year 1 design task order is complete and design is in process. Tomorrow (Jan 5) there is a meeting in Boise with CH2M and Bill and Sherri (S&C Engineers) to review design so far. We anticipate 100% Design Completion sometime between Jan 8th - 18th.
CH2M has be asked to reach out to potential construction bidders to make them aware of this project. The bid package will be assembled and ready by Jan 19th. Bid opening will be on Feb 8th.
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On November 7th, the citizens of Sun Valley re-elected Council President Keith Saks and Council Member Brad DuFur both to four-year terms. I congratulate both of them and look forward to our continued collaboration on the issues in our fair City.
The voters also passed the Bond Election Ordinance authorizing the City to issue up $17.5 million Sun Valley General Obligation Bonds for the replacement, reconstruction, and improvement of roads, paths, bridges and related infrastructure throughout the City. Preliminary work began this morning on the bond issue and meetings are scheduled with staff and the City Engineer to discuss timeline issues for the roads and paths projects.
The tasks entrusted to the City’s elected officials and staff are formidable and weighty. They will not be taken lightly. We promise diligence, transparency and dedication to perform and complete our duties.
Thank you to our citizens for an affirmation of confidence in officials and staff.
Onward!
Peter
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General Obligation Bonds on November 7th Ballot
Hello neighbors,
Wednesday afternoon we hosted an outreach meeting for our citizens to further discuss information on our Bond election ordinance, which is on the November 7th ballot. Along with our council and staff in attendance, we were fortunate to have Christian Anderson from Zions Bank, the City’s Financial Advisor and Betsy Roberts, Sun Valley’s City Engineer from CH2M Hill. Both of our guests answered questions and provided details which in a project of this scope will prove invaluable. Please click here to view our presentation from the Open House on October 25th.
As most of you know, we have been thinking about, debating, and discussing the replacement, reconstruction, rehabilitation, and improvement of our streets and paths since the summer of 2015 when the Transportation Plan was reviewed and adopted. Discussions continued through 2016 when the Council reclassified some roads and declared funding for paths and roads a top priority.
In July of this year, we specifically asked for and received citizen input on funding and through the summer, funding continued to top the Council’s agenda. The details of all of these discussions can be found on our website as well as the continued coverage by the Idaho Mountain Express and their many articles on the topic. We also placed 7 ads in the Idaho Mountain Express, sent a mailer to all registered voters in the City, and sent 3 email blasts.
Speaking of our website, please take a fresh look at the updated information and our own continuing coverage. We have been placing commentary on the site since July of this year and updates as warranted. New to the site is a presentation of the materials used at our Citizens Outreach meeting this past Wednesday. Four of the slides specifically point out the uses of the funds on a yearly basis as well as the roads and paths to be addressed that year. Remember that all proceeds can only be used for the road and path project. Other uses are prohibited.
Also, please consider updating your email address since we send email blasts regularly on this and other important topics. If emails are inconvenient, please look at the local press for notices and advertisements of meetings.
The message is thus: please keep informed in any way you choose on this very important issue. We will continue to share all that we can with our citizens.
A few notes regarding fiscal matters that bear on this bond election:
- While the Local Option Tax collected by the City is absolutely necessary to maintain the fiscal good health of the City, it is not enough to bring our roads and paths up to an acceptable level. LOT, available to the City, (1% Air LOT does not go to the City but to the Air Service Board) over the last 4 years has averaged $1.3M; not enough to tackle this major project. 1% Air LOT, by the way, partially goes to fund needed air service to our valley. It helps in making our trips and our kids and grandkids trips more convenient and thus more frequent. It has been very successful and welcomed, as evidenced by an overwhelming 82% in favor on its renewal this year. A portion of the Air LOT also goes to a marketing effort that is also funded by commercial enterprises, including our neighbor, the Sun Valley Company. The partnership for marketing is ongoing and successful. The vibrancy of our valley is certainly dependent upon economic success and will continue to be so. We celebrate success.
- The fiscal health of our City is very good. We are projecting an Ending Fund Balance of over $4M. The Council continues to act responsibly on all budget matters and leans to the conservative axis
- The Council has not taken the 3% property tax increase that it is permitted to take, without voter approval, for 7 years. Acting prudently, watching expenses, and being fiscally conservative have contributed to the good health of our balance sheet.
- The time is now to consider the health of our paths and roads.
- Please vote on November 7th!
Peter
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On the November 7th ballot, there will be a proposal for the issuance of bonds by the City of Sun Valley and the levy to pay for the bonds. The issue of $17.5 million General Obligation Bonds will be for the replacement, reconstruction, and improvement of roads, bicycle and pedestrian paths, bridges and related infrastructure throughout the City. The proceeds from the bond issue cannot be used for any other purpose and a two-thirds super majority of voters is required for passage of the issue. If passed, work on the roads and paths would begin in the Spring of 2018.
The sale of these bonds would help the City fulfill its commitment to the community to improve livability and to provide for the health, safety and welfare of Sun Valley residents and visitors. Having roads and pedestrian and bicycle paths that are well-maintained, as well as aesthetically pleasing, accrues benefits to our full- and part-time residents. Keep in mind that the proceeds from the bonds, all $17.5 million, can only be used for the betterment of our transportation infrastructure. No other use of funds is permitted.
There are approximately 30 miles of roads and paths in the City. The average age of those paths and roads is well over 30 years, which is when the last meaningful rehabilitation occurred. Based on the rating system of the Asphalt Institute of America, 36% of street footage is in fair to very poor condition and 26% of our multi-use paths are in fair to poor condition.
Bond Facts:
Issuer: City of Sun Valley
Size of issue: $17,500,000
Type: General Obligation Bonds
Term of Bonds: 20 years (2018-2038)
Anticipated rating: AA
Municipal Advisor: Zions Public Finance Inc.
Bond Counsel: Hawley Troxell Ennis & Hawley LLP
Anticipated Interest rate: 2.93%
Total Amount to be Repaid: $23,544,975
Projected Annual Property Tax Levy for Various Values:
$100K Taxable: $55.43 per year
$500K Taxable: $277.14 per year
$1MM Taxable: $554.30 per year
Post-election Bond Issuance Timeline:
Week 1: Draft Preliminary Official Statement
Week 4: Meet with rating agency; adopt bond resolution
Week 6: Obtain rating; publish Official Statement
Week 8: Bond Sale; closing documents
Week 10: Closing and delivery of funds
Stay tuned for more information…
Peter