04-21-2015 City Council Minutes - Laserfiche WebLink

Home Browse Search

City Council Minutes April 21, 2015 Page 4 of 6 interchange and now those predictions show a 30%-40% increase by 2030 (5,000-6,000 cars). Council Member Akerson questioned if the interchange cost is the City's responsibility. Tim Bray stated that the County is adamant about their interchange policy and the cost sharing with the City. He noted that the basis for this firm stance is because of the decision by the City for the alternate route. Mr. Bray reiterated that the cost sharing breakdown is for MnDOT to pay 70% and the County to pay 30%. Of the County's 30%, the City's portion of this would be $558,000 which equates to 9% of the total interchange cost. Council Member Pederson asked if the cost participation breakdown would be the same with traffic signals and when did the State decide on the interchange versus the traffic signals. Mr. Bray noted that when project development occurred the impression was that the interchange would take place someday. The interchange was officially added last year and MnDOT agreed that it would be part of the project. Council Member Pederson stated that the interchange cost was sticker shock and now the City Council must decide on the long term financial effects. Mayor Sjoblad questioned if a public works truck, salt shed, and garage addition is included in the County's construction cost numbers. Rob Hall noted that these costs are not included. MnDOT won't provide for this and the County was conservative in their construction cost estimates which do include construction, engineering, inflation, and contingencies. Council Member Pederson noted that to get a true picture of the financial impact to the City, the operating costs need to be added to the construction costs and the City's has no ability to collect transportation State aid. The City's revenue stream is from one source which is property tax levies and he considers streets as both assets and long-term liabilities. He further noted that an objective of the City's comp plan is to reduce the tax burden in the City. According to the comp plan, the City should analyze the financial return versus the financial obligation to justify infrastructure projects. Council Member Pederson questioned if the Highway 371 turnback does not occur will the County not maintain this road. Tim Bray clarified that general maintenance will occur. He explained that the County will not be punitive to the City if this turnback does not occur. That is not the County's intention. Highway 371 will be treated as a part of the County's transportation system and its service life needs to be met before replacement would occur.