HomeMy WebLinkAbout20070507 - VIII-C-3VIII-C-3
MEMORANDUM
TO: Honorable Mayor and City Councilmembers
FROM: Dave Osberg, City Administrator
DATE: May 3, 2007
SUBEJCT: Resolution-Lake Isabelle Funding
RECOMMENDED CITY COUNCIL ACTION
It is recommended that the City Council take action approving the enclosed Resolution of
the City Council of the City of Hastings Establishing a Method for the Funding of the
Lake Isabelle Improvement Project.
BACKGROUND
At the City Council meeting on Monday April 16, 2007 action was taken awarding the
contract for the Lake Isabelle Improvement project to Sunram. Because the bid offered by
Sunram was so favorable, Staff recommended that the entire project be completed in
2007. The City Council then directed the Finance Committee to conduct a meeting and
address the best method for financing the entire project, based on the fact that a limited
amount of funding had been allocated in both the 2006 and 2007 City budgets.
On Thursday April 19, 2007 Finance Committee members Danna Elling Schultz, Tony
Alongi and Mike Slavik conducted a meeting that included Parks and Recreation Director
Barry Bernstein, Finance Director Char Stark and I. Staff explained to the Finance
Committee the current situation which includes a contract award to Sunram, in the
amount of $360,479. Funds remaining in the account as allocated in the 2006 and 2007
Budget include $154,000. After a donation of$10,000 by the East Hastings Improvement
Association, and a grant in the amount of $25,000 expected from the DNR,
approximately $171,000 remains to be funded from alternative sources.
The Committee agreed that 50% of the remaining balance should be allocated from the
Ward 1 park dedication fund. Ward 2, Ward 3, Ward 4 and the Parks Operation fund
would then split equally the remaining 50%. The 2008 Budget process would result in
each of the Ward park dedication funds being reimbursed for the amount allotted for
assisting with the Lake Isabelle Improvement project.
Using current figures, as we have them today, and subject to change, the funding
proposals would be as follows:
Current Balance:
Su~Ram Contract:
Remaining Balance:
East Hastings Donation:
DNR Grant:
Additional Funding:
Ward 1
Ward 2
Ward 3
Ward 4
Park Fund
$154,000
$360,000 ($360,479 actual)
$206,000
$10,000
$25,000
$171,000
$85,500
$21,375
$21,375
$21,375
$21,375
Ward 2, Ward 3 and Ward 4 Park Dedication Funds will be reimbursed as a part of the
2008 Budget process.
City Council approval of the attached Resolution is the recommended action.
David M.
City Adn
RESOLUTION #
Resolution of the City Council of the City of Hastings
Establishing a Method for the Funding of the
Lake Isabelle Improvement Project
Whereas, The Hastings City Council awarded a contract to SunRam in the
amount of $360,479.39 to allow for a variety of improvements to Lake Isabelle, including
the following
1.) Dredging
2.) Fishing Pier
3.) Public Parking
Whereas, Favorable contract prices, well below that which was originally
projected by Barr Engineering, has resulted in the City Council concluding it seeks to
complete the project in its entirety in 2007, rather than complete over a two year period,
and;
Whereas, The City Council has allocated funds as part of the 2006 and 2007
Budget process sufficient to fund a portion of the total project costs, and;
Whereas, The City Council considers the Lake Isabelle project one that will
result in a benefit and enjoyment by all citizens of the City of Hastings, and;
Whereas, The East Hastings Improvement Association has committed $10,000
toward the project, and;
Whereas, The City anticipates receiving a grant in the amount of $25,000 from
the State of Minnesota to assist with funding the construction of the fishing pier, and;
Now, Therefore Be It Resolved, by the City Council of the City of Hastings
that additional funding needed to complete the entire Lake Isabelle improvement project
in 2007 shall be established as follows:
a.) 50% of the remaining balance, (after deduction of the amount currently in the
project fund balance, contribution by the East Hastings Improvement Association,
and the State of Minnesota Grant) shall be allocated from the park dedication
funds currently assigned to Ward 1.
b.) The remaining 50% shall be split equally (four ways) between the
Ward 2, Ward 3 and Ward 4 park dedication funds and the current park operations
reserve funds.
Be it Further Resolved, by the City Council of the City of Hastings
that those funds transferred from the Ward 2, Ward 3 and Ward 4 park dedication funds
shall be considered a short term transfer, and said funds will be reallocated to each of the
park dedication funds as part of the 2008 Budget process; and should additional funding
be secured for the project, that the Ward 1 park dedication fund shall be replenished by a
like amount, only after the Ward 2, Ward 3 and Ward 4 park dedication funds are made
whole.
Adopted by the City Council of the City of Hastings, this
7`n Day of May, 2007
Ayes:
Nays:
Paul Hicks
Mayor
Melanie Mesko Lee
City Clerk
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