Minutes - Public Works Committee - 02/15/2005

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Public Works Director Kapler explained this budget is currently being worked through as a bubble of overlays, which come in about an 18 to 20 year cycle. He suggested for a longer term solution they look at setting some funds aside to tap into at a later time, rather than just riding the bubble and going back down. Chairperson Elvig concurred. City Engineer Jankowski indicated there are streets in the City that will be about 35 years old in 2011. At that point they will need to think about doing more than overlays. Mayor Gamec inquired about a revolving fund in relation to this budget. Assistant Public Works Director Olson replied the City has a Public Improvement Revolving Fund. It is not dedicated solely to street maintenance; it is also used for building repairs and public improvements associated with facilities, parking lots, tennis courts, etc. Chairperson Elvig agreed it would be beneficial to set up a fund dedicated to streets. He suggested staff gather information on this type of fund, taking into account future street reconstructions. He would suggest determining an amount to be collected each year for the fund, based on a ten year forecast. Assistant Public Works Director Olson indicated without taking into account direction from last year to start applying a 50/50 contribution to gravel road elimination in the City, staff looked at $300,000 in 2002 when completing the fiscal impact analysis. Last year the City streets were increased by almost six miles, and that amount was increased to $450,000. Chairperson Elvig directed staff to provide the Finance Officer with a copy of the minutes regarding the discussion of setting up this street fund. Public Works Director Kapler indicated staff discussed a ten year forecast a few years ago and scaled it back to seven years. He explained once you forecast beyond seven years the forecasting information gets really gray. Chairperson Elvig asked when the Committee will review this information again. Assistant Public Works Director Olson replied it will come before the Committee at budgeting time. Mayor Gamec inquired about overlays and sealcoats in Town Center. Assistant Public Works Director Olson replied the sealcoat would be completed five years after construction. This has not been taken into account in the Master Development Agreement. The Master Development Agreement identifies all the issues that the developer would be assessed for, and the first sealcoat is not included in those assessment amounts. He noted this project is a lot Public Works Committee/February 15, 2005 Page 4 of 8