Minutes - Council - 06/26/2012 - Laserfiche WebLink

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Substitute motion failed. Voting Yes: Councilmembers Elvig and Backous. Voting No: Mayor Ramsey, Councilmembers McGlone, Strommen, Tossey, and Wise. City Attorney Goodrich indicated the City Council had previously given direction to proceed with purchase agreements for road rights -of -way. City Engineer Himmer noted acquisition of Wiser Choice Liquors is included in the $2.7 million, which was approved at the last Council meeting. City Attorney Goodrich advised that the site acquired by Wiser Choice Liquors has the option for an alternate access from Sunwood Drive in case this project does not move forward. Thus, that relocation and purchase is not predicated on this road project. The Council debated the merits of the Sunwood Drive Realignment project, each stating their position, for or against. Councilmembers Tossey, McGlone, and Wise advocated strongly to proceed with award of the contract as recommended by staff. Councilmember Elvig stated he understands the need for this project but is concerned with timing and funding, wanting to understand all costs including acquisition before awarding bids to assure the City's funds were not dangerously depleted. Councilmember Strommen asked questions of staff relating to funding for this project and impact on utility funds. City Engineer Himmer reviewed the $5.35 million funding package as presented in March, noting the only difference is to add street lighting, which will be a separate contract with Connexus, and the temporary road on Zeolite Street. He described how he analyzed the bid, line by line, to identify items related to water, storm water, and sanitary sewer. The funding being presented reflects real bid prices and correlate to those specific items plus a small overhead for engineering components. Finance Director Lund advised there are healthy balances in the Water Utility Fund, Stormwater Utility Fund, and Sanitary Sewer Fund to cover these costs. With regard to the Equipment Fund, Finance Director Lund indicated the 2013 budget contains $581,000 of equipment purchases and the Council will determine whether to issue equipment certificates or use the Equipment Fund. Councilmember Backous stated he thought Councilmember Elvig's motion was worthwhile to lower the City's risk, but he supported this effort to get ready for the overpass, which is key to developing The COR. Motion carried. Voting Yes: Mayor Ramsey, Councilmembers Tossey, Backous, McGlone, Strommen, and Wise. Voting No: Councilmember Elvig. City Council / June 26, 2012 Page 9of12