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MINUTES OF THE <br />ORONO CITY COUNCIL MEETING <br />Monday, June 28, 2010 <br />7:00 o’clock p.m. <br />_____________________________________________________________________________________ <br /> Page 6 of 10 <br /> <br />(10. STREET CIP – SCHEDULE AND FUNDING OPTIONS, Continued) <br /> <br />Kellogg pointed out the City would also be spending additional money to maintain Willow Road if the <br />improvement work is not completed next year. <br /> <br />Olson stated the City Council will need to decide whether to do Old Crystal Bay Road next year. <br /> <br />Kellogg stated there are a number of issues that they will need to look at before construction can begin. <br />Kellogg noted they did conduct traffic and pedestrian counts already before the school year was over this <br />spring. <br /> <br />Franchot noted the City’s projects this year came in considerably under budget and asked where those <br />unused funds go. <br /> <br />Olson stated that money would remain in the MSA fund and could be used by the City on other projects. <br /> <br />Kellogg stated the construction fund remains at the state and the funds are allocated as the projects are <br />finalized. Kellogg indicated the money left over from those other two projects could be used on future <br />projects. <br /> <br />Franchot stated given the low bids, the leftover MSA funds, and the money that would be saved from not <br />having to maintain Willow Road for three additional years, he would recommend the City Council <br />consider going with Option 2. <br /> <br />Kellogg pointed out there are limitations on how large the MSA balance can be and that once the balance <br />exceeds a certain level, the City could incur penalties. Kellogg stated the City’s balance currently is a <br />little over $1 million, but that presently they are not close to being at the maximum level. <br /> <br />Olson stated the City would need to update those figures and that he anticipates bringing a new pavement <br />management plan to the Council depicting all the improvements for 2010 through 2015. <br /> <br />McMillan asked if the bonds are callable. <br /> <br />Olson stated they could be but that they would have a higher interest rate. Olson stated he does not <br />foresee interest rates falling in the next couple of years. <br /> <br />Bremer indicated she would be in favor of moving the project on Old Crystal Bay Road up. <br /> <br />Olson noted work on Old Crystal Bay Road will need to commence very quickly. <br /> <br />Murphy stated it appears that on average the City will spend $900,000 every year on various projects and <br />that the City Council should look at what other projects will be coming in the future as much as they can <br />and also determine what the tax impact will be. Murphy stated he would like to capitalize on the current <br />low interest rates as much as possible. <br /> <br />LeQuay noted that the City’s Comprehensive Plan defines a public city street as 50 feet and that Railroad <br />Avenue is shown as a city street but it is only 40 feet wide. LeQuay asked why that is considered a city <br />street when it does not meet the requirements and that he would request that street not be widened any <br /> <br />Item #02 - CC Agenda - 07/12/2010 <br />Approval of Council Minutes 06/28/2010 [Page 6 of 10]