Minutes - Council Work Session - 03/19/2013

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Public Works Superintendent Riemer stated there is a better crack fill mix so that may be an impact. He explained how changes in winter weather results in creating additional potholes. Public Works Superintendent Riemer presented the costs to reconstruct the City's 142 miles of local roadways every 40 years with sealcoating at years 5, 12, 24, and 31, noting that using a $14 per residential customer franchise fee (split between two franchises at $7 each), the amount available for use in the reconstruction efforts in 2012 and 2013 would be $1.53 million annually. With that level of fee, the only way to achieve a program that is fully funded is to require a 50% assessment for reconstruction. However, there would be no assessment for maintenance activities (sealcoats or overlays). Councilmember Elvig explained that to bond for a project, 20% of the project has to be assessed. However, if it is petitioned against, the project then does not move forward so the road further deteriorates. Public Works Superintendent Riemer stated an issue yet to be addressed is retroactivity and where you "draw the line" and start instituting a franchise fee. He indicated staff recommends that initially the City begin the franchise fee with a 50% reconstruction assessment, increasing the fee 5% each year for the first five years to ultimately get to an overall reconstruction assessment of 25 %. Acting Mayor Backous stated he does not want to ask a resident to pay for an assessment in addition to a franchise fee. He preferred that once the assessment is paid off, then a franchise fee could be instituted. Finance Director Lund stated she does not think the utility company will consider that option since it would be difficult to track. Acting Mayor Backous stated it may be something the City has to address, such as a reduced assessment. City Administrator Ulrich stated a rebate program may be another option. Public Works Superintendent Riemer displayed a picture of Garnet Street, considered the Ramsey road in the worst condition. It was reconstructed in 1989 but paved over clay. Councilmember Elvig noted those residents had postponed reconstructing this road because a developer was interested in splitting the lots for development and the road was to be done at the same time. However, due to the economic downturn, that did not move forward which made the dilemma worse. Councilmember Kuzma asked if sewer would be installed at the same time as road reconstruction. City Council Work Session / March 19, 2013 Page 2 of 16