Minutes - Public Works Committee - 11/21/2006

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Chairperson Elvig noted the Council has made a conscious decision to increase the budget for the Street Maintenance Program from the original budget of $100,000/$150,000 to the 2007 $400,000 budget (less the $27,000 that maybe carried over from 2006). He asked if the current budget covers the City's problem areas. City Engineer Jankowski replied there are a couple of subdivisions staff had hoped to program that have been pushed off another year; one is Golden Eagle Estates and the other is Northfork. Mr. Jankowski indicated he drove through Golden Eagle Estates today; it needs an overlay, but could last another year. The proposed budget requires pushing back with longer schedules than desired, but the City is coming to the end of the peak with the number of roads that were built in the late 1970's early 1980's. All of those roads are reaching the point where an overlay is needed, and they have been playing catch up the last few years. Mr. Jankowski noted there was a significant increase in oil prices last year. Staff does not anticipate a large increase in the sealcoating price this year, but he has increased this cost approximately 14% over 2006. Costs related to oil have been increased 25%. Chairperson Elvig asked what the result would be to the General Fund Budget if the 25% increase is not needed for oil costs. Public Works Director Olson replied the remaining funds could be rolled over to the following year or the General Fund could be reduced. Chairperson Elvig suggested the Street Maintenance Program budget be reviewed at the time the 2007 General Fund Budget is approved. Public Works Director Olson indicated the 2007 General Fund Budget will have been adopted by the time the public hearing is held for the Street Maintenance Program; Council will have the ability to modify the Street Maintenance Program budget at that time. Mayor Gamec informed the Committee there are residents on two streets interested in participating with the City to improve their streets from gravel to paved road. Public Works Director Olson advised the $400,000 budgeted for 2007 includes $50,000 that had been discussed for the paving of dirt streets because the City had not received any petitions for the extension of paved roadways in 2007. He indicated staff would like to notify the residents affected by the 2007 Street Maintenance Program in order to get the process started with citizen involvement. Mr. Olson indicated the Feasibility Study contains a listing of the schedule of project milestones associated with the program. Staff anticipates presenting the study to City Council on December 12, 2006 and holding a Public Hearing on the program on January 23, 2007. Motion by Councilmember Jeffrey, seconded by Councilmember Olson, to recommend that the City Council accept the Feasibility Study for the 2007 Street Maintenance Program and set the date of January 23, 2007 for a public hearing. Public Works Committee /November 21, 2006 Page 7 of 8