06-28-2010 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, June 28, 2010 7:00 o'clock p.m. (I0. STREET CIP —SCHEDULE AND FUNDING OPTIONS, Continued) Kellogg pointed out the City would also be spending additional money to maintain Willow Road if the improvement work is not completed next year. Olson stated the City Council will need to decide whether to do Old Crystal Bay Road next year. Kellogg stated there are a number of issues that they will need to look at before construction can begin. Kellogg noted they did conduct traffic and pedestrian counts already before the school year was over this spring. Franchot noted the City's projects this year came in considerably under budget and asked where those unused funds go. Olson stated that money would remain in the MSA fund and could be used by the City on other projects. Kellogg stated the construction fund remains at the state and the funds are allocated as the projects are finalized. Kellogg indicated the money left over from those other two projects could be used on future projects. Franchot stated given the low bids, the leftover MSA funds, and the money that would be saved from not having to maintain Willow Road for three additional years, he would recommend the City Council consider going with Option 2. Kellogg pointed out there are limitations on how large the MSA balance can be and that once the balance exceeds a certain level, the City could incur penalties. Kellogg stated the City's balance currently is a little over $1 million, but that presently they are not close to being at the maximum level. Olson stated the City would need to update those figures and that he anticipates bringing a new pavement management plan to the Council depicting all the improvements for 2010 through 2015. McMillan asked if the bonds are callable. Olson stated they could be but that they would have a higher interest rate. Olson stated he does not foresee interest rates falling in the next couple of years. Bremer indicated she would be in favor of moving the project on Old Crystal Bay Road up. Olson noted work on Old Crystal Bay Road will need to commence very quickly. Murphy stated it appears that on average the City will spend $900,000 every year on various projects and that the City Council should look at what other projects will be coming in the future as much as they can and also determine what the tax impact will be. Murphy stated he would like to capitalize on the current low interest rates as much as possible. ti • LeQuay noted that the City's Comprehensive Plan defines a public city street as 50 feet and that Railroad Avenue is shown as a city street but it is only 40 feet wide. LeQuay asked why that is considered a city street when it does not meet the requirements and that he would request that street not be widened any • Page 6 of 10