Minutes - Council - 07/25/2006 - Laserfiche WebLink

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Motion by Councilmember Cook, seconded by Councilmember Strommen, to introduce an ordinance authorizing the sale of Lot 1, Block 1, Business Park 95 Second Addition, and to direct staff to provide further information regarding the sale price prior to final approval of the sale. Further discussion: Councilmember Elvig suggested language be included in the purchase agreement to ensure that the property is improved within a five year timeframe, and that prohibits it from being flipped. Councilmember Strommen replied this was discussed by the EDA, and they thought it was unlikely that Zero-Zone would put out this much money and let the property sit idle. Councilmember Cook stated he would like to see the property developed, but as long as the City is receiving fair market value he is not concerned if the property gets flipped as long as it is something appropriate for the area. Councilmember Elvig directed staff to review the suggestions regarding the language in the purchase agreement for improvement of the property and the prohibition of the property being flipped. Mayor Gamec noted this sale will be an improvement in taxes received, as there are currently no taxes being generated on the property. Motion carried. V oting Yes: Mayor Gamec, Councilmembers Cook, Strommen, Elvig, Jeffrey, Olson, and Pearson. Voting No: None. Case #4: Consider Award of Bids for Divisions B & C on the 2006 Street Maintenance Program City Engineer Jankowski reviewed that bids were opened on July 11,2006, for Divisions B & C of the 2006 Street Maintenance Program and proposals were received from three bidders. At the July 11, 2006 Council meeting, direction was provided to staff to review the scope of the project to accomplish as much work this year as the project budget would allow. It was suggested by Council that the extension of 160th Lane, which was bid at $45,419 was not a high enough priority to pursue this year. Mr. Jankowski explained after analyzing the individual projects it was determined that IP #06-10 could be eliminated from the 2006 program for the following reasons: (1) it was determined to be in the best condition for continued patching, (2) this project involves the consideration for the placement of watermain lines in a feasibility study currently being studied, and (3) initially staff had determined this would provide enough of a project cost reduction to allow the remaining projects to be undertaken under the 2006 budget. However, after refining project costs with the Finance Director it was pointed out that there are monies involved with the paving of dirt streets coming out of this same segregated fund. City Engineer Jankowski stated staff has determined if Welcomes Road is constructed, and the City has an increased share of costs associated with that project due to the higher prices, and the St. Francis Boulevard frontage road is constructed which is needed for the planned trail, the budget would be approximately $50,000 short. The recommendation of staff is to schedule the public hearings for all of these projects. City Code includes a provision in the assessment process that states if a project exceeds the estimated amount by more than 10% it should not be awarded. Staff recommends assessing all of the overlay projects at 110% of feasibility study estimates, with the City paying the additional cost. If there are no challenges, the projects would be awarded on September 14,2006; a special meeting would be needed to award the bid. Staff City Council / July 25, 2006 Page 8 of 20