08-27-2003 Council Agenda - Laserfiche WebLink

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o t Little Cann, aosoti 1-1C1 co.^!rUNIry Deice 1953 - 2003 515 Litde Canada Roacl. Little Canada, DIN 5117-1600 (651) 7664029 / FAX: (651) 766 -4048 wwwcilittle- canada.mn.us IVIEMORANDUM TO: Mayor Fahey and Members of the City Council FROM: Shelly Ruecicert, Accounting Supervisor DATE: July 18, 2003 RE: Franchise Fee Update (IL:11-OR Michael I. Fahey 60L _ CCJL Jim 1..aV- Jiatt Andes Rick Montour Bill Blesencr (-10)1,111\. ZS I K 4TOR Joel R. I- Ianson Based on the July 9th Council meeting, the items below were to be explored further in order to finalize franchise fee charges: C. Trail priority and costs; C. Calculation method of franchise fee, i.e. flat versus percentage; C. Implementation date. Trail Funding As you can see in Attachments A and B, the cost of individual trails has been detailed. The trails are listed in a priority manner. Please note that we have obtained two estimates in regards to the Powerline trail connection. The first alternative is to connect from Payne Avenue to Pioneer Park by acquiring and fencing a 20 -foot corridor through the Heinel property (Attachment A). This option is being considered due to the costs of the Edgerton alternative and the fact that option won't be needed once the Heinel connection occurs. By fencing and gating the trail and paying for the land, perhaps we can resolve the Heinel's concerns. The second alternative is to connect from Payne Avenue to Pioneer Park by rerouting the trail along Edgerton and Allen Avenue (Attachment B). A large part of the costs for this segment involves $75,000 for storm sewer improvements needed to allow filling in this area. Staff believes this is not a great option due to the cost. This segment would also be at risk in the future if (when) Edgerton is reconstructed due to grade differentials that are likely to result. Given this preference, staff obtained estimates of the cost of proceeding with the Edgerton route along with the cost of adding the Heinel route in the future to the cost of the Heinel route today. The result of this analysis was $205,900 for the Heinel only route today and 3332,400 for the Edgerton /Heinel routes now and in the future. For purposes of computing debt service cost on the first priority group of trails, the cost with Heinel is $25,900 more initially, but saved $126,500 in total. Each attachment computes a debt service cost associated with the cumulative cost of the group of trails considered to be of priority. This priority is based on what the narks Commission has listed as -2-