Minutes - Public Works Committee - 09/19/2006

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pond which accepts the drainage from Business Park 95 and the eastern portion of the Mississippi subdrainage district No 1. Plans for the upgrade of Highway 10 will require the eventual acquisition of the property within this district and this improvement would likely increase the value of the property and consequently the cost of the acquisition. Mr. Jankowski indicated staff is looking for direction on continuing to pursue this project. Chairperson Elvig requested further information on the City's obligation to this district. City Engineer Jankowski replied this is a taxing district; the City could continue to collect until there are enough funds collected to complete the improvements. Public Works Director Olson advised Mr. Hickman, who has indicated a preference for the easement to be obtained through a purchase, would be able to increase his display area without creating large ponds on his property, so there is some value involved. He reviewed the following options for consideration: 1. Pursue the project at this time and increase the annual levy to the district to recover the project costs. Alternately the project costs could be recovered over a six year period at the present levy. 2. Delay the project for a period until the fund balance more closely matches the cost of the project. 3. Reconsider alternate outlets for the Business Park 95 regional pond which were evaluated in 2000. Councilmember Cook expressed his preference in delaying the project. He stated there is no reason to spend an additional $150,000 to put in a drainage line for water runoff if it is not wanted by the property owners. Chairperson Elvig asked what other properties are affected. Public Works Director Olson replied the Hamilton and Holasek properties are affected. Chairperson Elvig asked if these are functioning properties. City Engineer Jankowski indicated the City has purchased the Deals on Wheels property, and the only other property within the district that does not have storm sewer is J.R's Entertainment Center, so it is really just the one other property that is affected. Public Works Director Olson advised it should be noted that currently the cost of the phase 2 project is estimated at $266,300 with $40,000 for property acquisition. The district currently has a fund balance of $142,800 with anticipated 2007 revenue of $43,348. Consensus of the Committee was to direct staff to delay the project for a period until the fund balance more closely matches the cost of the project, and to direct staff to inform Mr. Hickman of the Committee's position to not proceed with the easement purchase on his property. Public Works Committee /September 19, 2006 Page 7 of 9