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City Engineer Westby stated staff has not yet completed that cost analysis and wanted to first <br />assure the design assumptions are correct. <br />Acting Mayor Backous asked if there is a road category between urban and rural for areas that <br />are more likely to go to curb and gutter. Then the road does not need to be torn up to install curb <br />and gutter. He asked if that can be factored into road design. <br />Councilmember Riley agreed there are roads built in the mid -1970s that are now in a denser <br />neighborhood and should have curb and gutter so it may not make sense to reconstruct as a rural <br />design. <br />Acting Mayor Backous stated residents would have the option to connect or not connect but it <br />should be there. <br />City Engineer Westby stated staff can look at the roads and include a percentage basis to address <br />that option. <br />City Administrator Ulrich stated it is easier to discuss it in present day dollars and the logic is <br />that whatever inflationary number is applied to expenses, it has to also be applied to the revenue <br />side. He noted if there is a franchise fee, an escalator would be needed, and that should be <br />addressed up front. <br />Councilmember Tossey stated construction costs will increase about the same rate as other costs <br />and housing evaluations increase. He stated support to keep a 20% assessment because it will <br />take into consideration increased housing values. Councilmember Tossey stated a franchise fee <br />would have to allow for an inflationary increase and he thinks residents will already be angry if <br />the franchise fee is instituted. <br />Acting Mayor Backous suggested it be called a "franchise tax" so the intent is clear. <br />Councilmember LeTourneau stated it seems the purpose of the case was to figure out where we <br />stand today, assumptions based on today's visuals. He stated he supports the assumptions and <br />looking at this now allows the Council to learn of the size of this issue and financial impact. <br />Once that is known, the Council can discuss how it can be addressed and the best tools to use. <br />Acting Mayor Backous agreed and noted Council consensus has been voiced to support the <br />assumptions as presented. <br />Councilmember Tossey stated there is still not a definitive answer of how big the costs will be <br />each year. He supported considering what it will cost today since everything has to be assumed <br />when calculating costs in 2018. <br />Acting Mayor Backous stated he does not support sidewalks or curb and gutter everywhere but <br />would support adding an intermediate design for areas that are going from rural to urban in <br />City Council Work Session / July 9, 2013 <br />Page 5 of 7 <br />