Minutes - Council - 06/12/2012 - Laserfiche WebLink

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Councilmember Wise recused himself due to a potential conflict of interest and left the Council Chambers at 8:21 p.m. City Attorney Goodrich reviewed the staff report and status of acquiring five parcels relating to the Sunwood Drive Realignment Project. City Engineer Himmer reviewed acquisition costs, noting they are higher than anticipated at $6.2 million. The funding package equals $5.9 million for a funding gap of approximately $289,000. He indicated that bids will be presented, once received, along with costs for street lighting and consulting engineer. The Council discussed the funding options and asked questions of staff. It was noted the HRA will be discussing possible disbursement of land sale proceeds at tonight's meeting. Finance Director Lund presented funding options based on acquisition costs of $6,232,000 including legal costs and answered questions of the Council. She indicated the intention is to give the funds, not loan the funds, for this purpose. City Administrator Ulrich indicated the Council needs to identify funding prior to ordering the project, the cost of which will not be known until bids are opened. He explained project costs and land sale proceeds will come together at the next meeting but staff wanted to discuss the land proceed policy with the HRA tonight to identify enough funding to allow this project to move forward on the anticipated schedule. Councilmember Tossey expressed an unwillingness to consider use of the Equipment Revolving Fund in case of equipment failure. Councilmember Strommen stated she has been on board with this project; however, is growing uncomfortable due to higher than anticipated costs, lower land proceeds, and loss of TOD grant funding. She stated she was reluctant to consider budgeting all funds and future land proceeds to this project when it has not yet been identified how those funds will be paid back. The Council discussed the priority of the Sunwood Drive Realignment Project and consensus was reached this was an important project and would create synergy for The COR and interchange project. However, funding needed to be identified. City Administrator Ulrich recommended purchasing the right -of -way if the Council thinks the project will eventually be completed, noting the Oasis property has already been purchased at $1 million in anticipation of this and the interchange project. He indicated the City Attorney has negotiated offers and delaying purchase of right -of -way parcels may result in issues with the property owner. City Administrator Ulrich stated it would not be a bad investment to purchase rights -of -way even if the City has to wait to identify land proceeds to pay for the rest of the project, and a funding package can be created that does not include Equipment Revolving Funds. City Council / June 12, 2012 Page 10 of 12