2026-09-21 - City Council Budget Workshop I

04:23Hello,

04:24>> Councilman Sed.

04:26>> Yeah.

04:26>> Hi, it's Linda Lloy. You are on in

04:29council chambers live. So, if you would

04:31please mute your phone uh after we're

04:34done speaking and then um the mayor will

04:38ask if you can hear us at as soon as he

04:40right after he opens the meeting. Okay.

04:44>> Okay. Okay. Thank you.

04:45>> Thank you. Please mute your phone.

04:48>> Yeah.

06:44Is that

07:19test.

10:22Good evening. Welcome to the first

10:24workshop for the proposed 2027 budget.

10:26Councilman Sed will be participating by

10:29phone tonight. Councilman Sed, can you

10:31hear us?

10:32>> Yes, I can hear you.

10:34>> Okay. Tonight, our professional staff

10:36will focus on the preliminary capital

10:38improvement program. As a reminder, no

10:41final actions are being taken at this

10:43meeting since it is a workshop. Also,

10:46all the rules of the city council will

10:47still apply. Speakers are asked to

10:50present their comments in a respectful

10:51and curious manner. Speakers should be

10:54on topic and be cognizant of their

10:56words. Speakers are given three minutes

10:58to address the city council. And to help

11:00speakers stay within the three-minute

11:02time frame, speakers should be aware of

11:03the timer on the side d to your right.

11:06Timer will buzz when it hits zero and we

11:08will alert the speaker that their time

11:09is up. Mr. Kger want to call the first

11:13four.

11:15>> All right. The first four speakers would

11:17be Terresa Hus, Joe Hus, Patrick

11:19Kennedy, and John Doyle.

11:21>> If you've heard your name called, just

11:23please proceed to the front row. Thank

11:26you.

11:34Hi, Teresa Hus, longtime resident and a

11:36member of NEST. I know tonight's meeting

11:39is focused on the capital budget, but

11:41I'd like to look ahead to the next

11:43meeting, the operating budget, and urge

11:45you to consider funding a climate action

11:47plan. A climate action plan would be a

11:50one-time cost of about 0.015% 015% of

11:53our annual budget

11:55and it would give us a clear framework

11:57for measuring, tracking, and reducing

11:59our greenhouse gas emissions while

12:01preparing for the impacts of climate

12:02change. At their core, these plans focus

12:05on implementing the most coste effective

12:07actions to reduce emissions and

12:10strengthen our long-term resilience. And

12:12we've been talking about climate action

12:13plans for years. It began back in 2019

12:16when the city council directed Nest to

12:18prepare Neapville 2036. It continued

12:21through last year when we completed our

12:23greenhouse gas inventory in 2025. Both

12:26of those being important precursors to

12:28having an official plan. And many of you

12:31on the dis have expressed support for

12:33developing one and say you understand

12:35their importance. So our question is if

12:37not now when? Neapville has already

12:40shown it can lead. Our annual

12:42sustainability work plans have helped

12:44move individual initiatives forward.

12:47Staff have worked really hard to keep

12:49sustainability on the agenda, but work

12:51plans alone can't provide the long-term

12:54structure that we need. A climate action

12:57plan would allow us to measure progress

12:59year after year and identify the most

13:02cost-effective actions, ensuring our

13:04investments align with a clear and

13:06forward-looking vision. Funding a

13:09climate action plan is also fiscally

13:11responsible. Communities with climate

13:13plans are better positioned to compete

13:15for federal and state grants tied to

13:17clean energy, sustainability, and

13:19infrastructure. A plan would help

13:22prioritize our actions and save us money

13:25over time through energy efficiency,

13:27reduced operational costs, and avoided

13:30future risks. And most importantly, a

13:32climate action plan would reflect the

13:34values of Neapville residents. The

13:37recent survey showed that sustainability

13:39is a high priority for residents. Many

13:41of us already work on sustainability in

13:44our neighborhoods, our schools, our

13:45faith communities, and in organizations

13:47like Nest. But a citywide plan would

13:50bring these efforts together and

13:52demonstrate that Neapville is committed

13:54to thoughtful and long-term stewardship.

13:57So, I respectfully urge the council to

13:59fund the development of a climate action

14:00plan. It's a practical, communitydriven

14:03investment in Neapville's future, and

14:05now is the right time to move forward.

14:08Thank you for your time.

14:10>> Thank you. Next speaker.

14:12Next speaker. Show us.

14:23>> Thank you.

14:25Um, my name is Joe Hus. I'm a 27year

14:29resident and an S volunteer. And I have

14:30two questions. Um, why didn't we put any

14:33money in the capital budget for a

14:34battery? And second, why would we assume

14:37IMA should operate the battery if we

14:39purchase one? Uh my recommendation is

14:42simple. Put some capital in the budget

14:44for a battery and use a competitive

14:46process to you to choose the best

14:48battery operator.

14:50Uh first, um why doesn't the capital

14:53budget include any funding for a

14:54battery? Both the city's and nest

14:56analysis indicated that a battery would

14:58quickly pay for itself and reduce our

15:01electricity bills. Uh the value is not

15:03only financial as you can see on the

15:05slide. Um the city's consultant found

15:08that the battery can address several

15:10existing reliability violations.

15:12Delaying action not only increases the

15:14risk of a serious outage but also risk

15:17losing millions of dollars in federal

15:20investment tax credits that we'd get

15:21with a battery purchase. The prudent

15:24step is to reserve capital in the budget

15:26now only to be spent if there's

15:28something if if there's a compelling

15:29business case.

15:32And second, um, why would we assume IMEA

15:36would run the battery? In an email from

15:38the city to the battery author, it said,

15:40quote, IMEA expects to control the

15:43battery. At the last electricity

15:45presentation, council emphasized the

15:48importance of local control. IMA is a

15:51government entity based in Springfield

15:53and it's not clear why if any utility

15:56ski if they have any utility scale

15:58batterying operating experience. They

16:01likely don't have the systems or the

16:03processes to operate one effectively.

16:06Neapville should instead follow our

16:08procurement process. Experienced firms

16:10operating hundreds of batteries

16:12nationwide can compete for our business.

16:15A battery would allow us to earn money

16:17through ancillary services such as

16:19frequency regulation and capacity sales.

16:24Um although our current contract

16:26restricts us to only purchase

16:28electricity from IMA, it's silent on

16:31battery operations because batteries

16:33weren't an option when the contract was

16:35written. Competitive bidding is the best

16:37way to contain costs. In closing,

16:40council voted unanimously to direct the

16:43city to gather information for a battery

16:45business case to save Neapville

16:46residents and businesses money. But a

16:49business case is only it only creates

16:51value if the city is prepared to act.

16:53And I ask the council to preserve some

16:55capital in the budget for a battery and

16:58require a competitive process before

17:00selecting an operator. That approach

17:02protects Neapville's options and gives

17:05residents the best cho chance for lower

17:08costs and better reliability. Thank you.

17:11>> Thank you. Next speaker.

17:28>> Thank you.

17:30Good evening. My name is Pat Kennedy, a

17:33resident and former chairman of the

17:34Riverwalk Commission.

17:37Um, I want to give some context to the

17:40uh CIP request on behalf of the

17:41Riverwalk Commission for the South

17:43Extension project specifically.

17:46Um, [clears throat]

17:47the Riverwalk, it's shown on the screen

17:49here, but this section of the RI

17:51Riverwalk was originally expanded the

17:53limits in 2015 for the boundaries of the

17:56Riverwalk. This was planned for quite

17:57some time.

18:00Thank you. The master plan was uh uh

18:03endorsed in 2021 including this project

18:06and held public review at that point. It

18:09was prepared design and permitting

18:11documents in 2023.

18:14At that point I had met with uh Endeavor

18:17Edward Hospital and outlined the project

18:19for them and the idea was that it would

18:20open concurrent with their cardio

18:22cardiovascular building uh which now

18:25opened last fall uh with permitting and

18:28constru permitting and design in 24,

18:31construction in 25, and a concurrent

18:33opening. And at that time, uh we had

18:37procured a um grant [clears throat] from

18:40Janet Yang Roar and her group uh and her

18:44office. I appreciate that. And asked the

18:47hospital to come up with another

18:49donation that would get us to 50% of the

18:51total budget at the time, which was $3

18:53million. And they did so

18:54enthusiastically.

18:56They put that money in our account in

18:582024 where it still sits today.

19:01The project got deferred for one year. I

19:03don't exactly recall why. Last year the

19:06project got deferred because the bridge

19:08was delayed. The 430 South Washington

19:11project therefore got pushed back a year

19:14and the council determined that that was

19:16too many projects in one year uh for the

19:18Riverwalk and the capital improvement.

19:20So, it's currently in the CIP to go to

19:23bid this fall. Um the south extension is

19:29um [clears throat]

19:30the commission proactively reworked our

19:32five-year look ahead to decrease various

19:35projects by over $3.5 million and push

19:37them into the future to accommodate this

19:39as our priority.

19:42Um I I personally believe that there's a

19:45return on investment for anything we do

19:47with our Riverwalk. Our businesses, our

19:49households and home values and our

19:51reputation is all driven by this jewel

19:54we have as a riverwalk in this city.

19:58Um in addition, we so we have this

20:00commitment to a one of our great

20:02institutions in town in Endeavor Edward

20:05Hospital. I think the time is now. the

20:08investment is the right investment and

20:10we ask you to include this project in

20:12the CIP. Thank you.

20:14>> Thank you. Next speaker.

20:19>> Next speaker is

20:21John Doyle followed by Katie Wood and

20:23Chris Hartner.

20:36Right. Uh, John Doyle, Neighborville

20:38resident. Thank you. Um, apologies for

20:40not sending these in advance, but I do

20:42have some questions on the debt strategy

20:44for our electric utility. Uh, first off,

20:47tonight's plan shows up to $10 million

20:49in new debt for 2027. Is there any

20:51borrowing already anticipated beyond

20:542027, and if so, how much? You know,

20:57next year's rate study is going to

20:58determine revenue requirement for 2028

21:00through 2030. How are you going to make

21:02the decision on what gets paid for

21:04through borrowing and what gets paid for

21:06through rates?

21:08Uh the summary says the utilities debt

21:11coverage ratios are well below industry

21:12standards, which is great. Uh so just

21:14curious, what range are we comfortable

21:16operating in now that we're taking on

21:17debt? Uh and I say now that we're taking

21:20on debt. It seems that 2025's borrowing

21:22was the first new debt since 2011 and we

21:25are on track for three consecutive years

21:26of borrowing. So why the sudden change

21:29in funding philosophy?

21:32And lastly but not leastly uh any

21:35benefits that we are getting from

21:36borrowing uh potentially such as

21:38increased rate stability. Do any of

21:40those benefits depend on who our

21:42wholesale power provider is or can we do

21:44that regardless of who we buy our power

21:45from?

21:48I also have some questions about the

21:492027 project list specifically.

21:53Uh, this plan includes almost $30

21:55million in investments for the utility.

21:57Uh, but only about twothirds of that are

21:59accounted for in the presentation. So,

22:00I'm asking where the other $10 million

22:02is. Uh, my assumption is that it's just

22:05all for recurring programs that happen

22:07every year. And if that's the case, my

22:08question would be, is $10 million the

22:10expected annual run rate for those

22:12programs going forward?

22:14Uh, separately regarding the debt I

22:16mentioned, which projects will have the

22:1810 million in bonds tied to them for tax

22:20purposes?

22:22And lastly, I want to talk about the

22:23tollway substation project. Uh it's

22:25become quite hard to keep track of when

22:27we're spending and where we're spending

22:28on what. Uh given the scope creep over

22:30the years, and you know, this has been

22:32going on since 2021. It would uh be

22:34really appreciated if the utility and

22:36staff could give us a little more detail

22:38on what's going on with that project. Uh

22:40you know, something similar to what the

22:41water utility did with the springbook

22:43project. Um, I know this is an order of

22:46magnitude cheaper than the water

22:47project, but it would still be nice to

22:49know, for example, how much of that $6

22:51million is for delivery of something

22:53that we ordered two years ago. Uh, I

22:55know that's going to be a big chunk of

22:57it. Uh, so yeah, those are my questions

23:00and I'll get those emailed out after.

23:01Sorry for not sending them in advance,

23:02but if you can get them tonight, that

23:04would be appreciated. Thank you.

23:06>> Thank you. Next speaker.

23:09>> Next speaker is Katie Wood followed by

23:11Chris Hartner and Monica Connors.

23:18Good evening, uh, Mayor Worley and

23:20members of the city council. I'm Katie

23:21Wood with the Downtown Neighborville

23:23Alliance. Here tonight with Don Portner

23:25with the DNA, Monica Connors from the

23:27NDP, Chris Hartner from Neighborville

23:29Running Company. We're representing the

23:31boards of the DNA and DAC uh, the

23:33downtown advisory committee. First,

23:35thank you for keeping the design of the

23:37Nichols Library parking deck in the 2027

23:40budget. That has been our goal from the

23:42very beginning. design in 2027 with the

23:45hope of building in 2028. We've done the

23:48work. Starting this year, we've met with

23:50the library board of trustees. We've met

23:52with the Chamber of Commerce, the

23:53Neapville Development Partnership, the

23:55Riverwalk Commission, DAC, DNA, and each

23:58one of you. We've received support from

24:00all. And we continue to hear the same

24:03thing. Downtown needs more parking. Our

24:06businesses tell us parking limits, uh,

24:08their ability to do more business.

24:10Developers tell us prospective tenants

24:13ask about parking when considering

24:15downtown Nepville. Consumers tell us

24:17this repeatedly. And now we have four or

24:20five significant developments on the

24:22horizon that could bring approximately

24:24160,000 additional square feet of

24:27commercial space downtown. We need to

24:29plan for that growth, not react to it.

24:32That's why we're concerned about moving

24:34construction of the Nicholls library

24:36deck from 2027 2028 out five six years

24:40to 203132.

24:42We've already delayed this project.

24:43Plans were developed in 2008, revisited

24:46again several years later. Waiting till

24:482032 means we've been talking about this

24:50location for over 25 years. In 2031 is

24:54Neapville's bsentennial. We should enter

24:57that celebration with this

24:59infrastructure in place, not begin major

25:01construction right in the middle of it.

25:03If capital priorities priorities have to

25:06be made, we believe Nickels should even

25:08come before additional streetscape work.

25:10Streetscape is very important, but

25:12adding parking capacity is more

25:14important right now to downtown's

25:16economic health and future.

25:18We were also surprised to see the

25:20municipal center deck emerge as a

25:22priority with significant downtown

25:24parking fund dollars potentially used

25:26for that renovation. We understand that

25:28deck needs m maintenance, but it

25:30primarily serves the government campus

25:33with really limited use by downtown

25:35shoppers and diners. With limited

25:38downtown parking funds available, we

25:39believe they should first be invested

25:42where they can add parking capacity

25:44directly to support our downtown

25:46businesses. So tonight we have three

25:48asks of you. Keep the Nicholls design

25:51moving forward please in 2027 but move

25:54the construction significantly sooner

25:56than 203132

25:58by considering recon priorities uh

26:01readjusting priorities of future

26:04streetscapes. We want to get that

26:05moving. And thirdly please reconsider

26:09the use of the downtown parking fund

26:11dollars for the municipal deck. That

26:13fund was created to support public

26:15parking in the CBD and those dollars

26:18really should be invested. Sorry, I'm

26:20out of time. Thank you. We have a head

26:22start. Let's get this going. I

26:25appreciate your time.

26:26>> Next speaker. Next speaker is Chris

26:29Hartner, followed by Monica Connors and

26:31Neil Malone.

26:32>> I'm Chris Hartner, owner of Neapville

26:34Running Company, uh downtown business

26:36owner, downtown property owner, and I

26:38live right off of downtown. And mine

26:40will be pretty quick because Katie

26:42covered I think uh all the important

26:43stuff. I just want to reiterate that um

26:47in the development of the food and

26:49beverage 1% um I think I don't I don't

26:53recall the exact wording that's in u

26:56that uh document but nobody

27:00of all the people we worked with on it.

27:02I don't think anybody ever thought that

27:04it would be considered to be used for

27:05anything but something built and used

27:09for people coming downtown, shopping,

27:13eating, working, whatever it might be.

27:15Um, there was never any consideration

27:17that it might be used um as for the

27:19municipal deck. And that's pretty much

27:22all I wanted to say on that.

27:25>> Thank you. Next speaker.

27:27>> Uh, next speaker, Monica Connors,

27:29followed by Neil Malone.

27:33Good evening, city council and mayor

27:35Worley. Monica Connors, president of

27:36Neighborville Development Partnership.

27:38I'm here tonight to say a few words

27:40about the Nicholls parking garage and

27:42downtown Neighborville. Downtown

27:44Neighborville brings our city what we

27:46need economically. Tremendous property

27:49tax revenue which helps the schools and

27:51the city. Tremendous sales tax revenue

27:54in the form of sales tax and food and

27:56beverage sales tax. thousands and

27:59thousands of jobs and a quality of life

28:02for our community. According to Placer

28:04AI, 60% of the 9 million visits from

28:07downtown come from people outside of

28:10Neapville. That lowers the tax burden on

28:13all of our residents.

28:17The Nicholls parking structure has

28:18always been part of the 2030 plan as

28:20you've heard. Unfortunately, it was

28:22delayed in 2008. If we continue to delay

28:25this project, it will only cost the

28:27community more in impacts to loss sales

28:30tax revenue and higher construction

28:32cost. According to research,

28:35construction costs have increased 68 to

28:3880% since 2008 and about 5 to 13%

28:43annually. Kushman Wakefield just last

28:45week issued a report that showed

28:48construction commodities up 13%

28:50year-over-year. that affects

28:52construction materials.

28:55This is why the NDP board wants to build

28:57the Nickels parking structure at its

28:58highest capacity because it in maximizes

29:01our investment for the future.

29:04About eight weeks ago, I attended a

29:06virtual retail seminar hosted by IC

29:09International Council of Shopping

29:10Centers that was led by a national

29:12retail sales consultant. They posed

29:15three questions retailers want to

29:16understand in order to choose a

29:18location. One, can they serve enough

29:20customers? Two, can they generate

29:23profitable sales? Profitable. Three, can

29:27they operate successfully over the long

29:29term, not the short term? All of this

29:32depends on parking supply, which is

29:34likely why the consultant listed parking

29:36and infrastructure as one of the top

29:38three items we have to demonstrate in

29:40order to be successful. One of the

29:42things that has impressed me about the

29:44most about Neapville is that we build

29:46for the future. The community has

29:48demonstrated this for decades. Today is

29:51not the day to stop thinking about the

29:52future. Parking impacts our ability to

29:55land new tenants and retain the tenants

29:58that we currently have. It directly

30:00affects our sales tax revenue, our food

30:02and beverage revenue, which impacts see

30:04a fund, police, fire, so many things.

30:07With so much development in our line of

30:09sight, NDP feels we need to invest now

30:12to be successful in the future. Thank

30:14you.

30:16>> Thank you. Thank you. Next speaker,

30:17final speaker is Neil Malone.

30:25>> Uh good evening, Mr. Mayor, members of

30:27the council. Uh thank you for allowing

30:28me the opportunity to provide some

30:30comments. Uh my name is Neil Malone. I

30:32serve as director of government affairs

30:34for the Neighborville Area Chamber of

30:35Commerce. Um, we have submitted uh

30:40comments, written comments as well from

30:42uh myself and from our CEO Kayla

30:44Roosevelt who's here tonight. But I I

30:47feel like I'm um hitting cleanup on a

30:49really good baseball team tonight

30:51because uh the three speakers in front

30:53of me really did a great job of laying

30:55out the case for why this is needed and

30:57why this is needed. Now, uh we had

30:59really five areas in which uh really

31:02kind of speak to the need for the

31:04structure. Um, one is it it addresses a

31:07long-term and long-standing

31:09infrastructure need. Uh, as you've

31:11heard, this has been in the planning

31:13stage for quite some time. Uh, two, it

31:17really location is really important in

31:19as to where this would be located. It

31:22kind of provides that system of uh each

31:25of the cardinal directions having

31:27adequate uh parking resources. Uh three,

31:30it um provides support for downtown

31:33businesses who are who are as mentioned

31:37uh a large part of the economic engine

31:38that drives the city. Um four, it really

31:42should be kind of viewed in the larger

31:44economic development context that this

31:46is an important investment in

31:48infrastructure uh that will continue to

31:51uh encourage tax dollar growth and and

31:54revenue growth from uh uh the businesses

31:57that we represent. And then finally, it

32:00is kind of that opportunity to to

32:02continue on that that larger plan. Uh,

32:05as we've seen in the discussions, there

32:08will be additional parking areas that

32:09will need uh maintenance and

32:12refurbishment as well as some

32:13streetscape work that's going to be

32:15needed done that is going to actually

32:17take parking spots out of rotation while

32:20those are while those projects are being

32:22completed. I think it's important that

32:23we that we provide this additional

32:25capacity prior to some of these other

32:28activities that will be limiting parking

32:30downtown. Um and then respectfully just

32:33on the accelerating of the timeline,

32:35it's really just two points that I

32:36wanted to make. Uh as I mentioned,

32:40as construction projects occur downtown,

32:42it takes parking out of play and so

32:47and with additional refurbishments going

32:49to other decks, it's going to be

32:50important to have that capacity. So

32:52there's not a a an awkward phase, so to

32:56speak, of of not having the available

32:58parking. And then two, just the cost

33:00factor. I mean, when this was initially

33:02proposed, it was somewhere in the

33:04neighborhood of 18.9 million. Now we're

33:08looking at 30 to 36 million with the CIP

33:12putting it at 37.7.

33:15The longer we um delay this project, the

33:17more it's going to ultimately cost our

33:19taxpayers. So, I would encourage that we

33:21move forward uh with the nickel

33:24structure as expeditiously as possible

33:26and here to answer any questions if you

33:28need.

33:31>> Thank you. Any council members have an

33:33item for the public forum portion?

33:35Councilman Hosar.

33:36>> Thank you, Mayor. I had uh questions for

33:38first Mr. Doyle and then uh was going to

33:40ask some questions to the last three

33:42speakers as well. Um probably easy

33:45answers from staff, so I'll I'll turn to

33:47Mr. Kger and um I know Mr. Doyle said

33:51that um the city last took on debt to

33:54support the electric utility in 2011 and

33:56he was just wondering what the change in

33:59philosophy was that we're starting to do

34:00that again. Would you would you mind

34:01answering that Mr. Kger?

34:02>> Uh yeah certainly no problem. Um you

34:05know we we look at that with uh each

34:07individual rate study. Um we have had uh

34:11debt issuances included um subsequent to

34:152011 or planned debt issuance included

34:18in rate studies subsequent to 2011 when

34:21we came around and looked at our cash

34:23position said hey you know what we can

34:25continue operating without issuing the

34:27debt. So you know debt is kind of at

34:31least for us has been our financing of

34:33last resort. What we're mostly doing is

34:36simply balancing rates um with debt load

34:39and then trying to keep the cash above

34:41zero.

34:42>> Okay. So, if I may with a followup,

34:44mayor, go ahead.

34:44>> Um no need for you to have an answer

34:47tonight unless you have one ready. But

34:49one thing I would like to know maybe at

34:51a future presentation would be um what

34:54kind of impact it will have on rates to

34:57be taking on the first debt that we've

34:58taken on in 15 years. Is this going to

35:00cause an increase in rates? Just to be

35:02clear, this is not the general fund is

35:04not going to pay down that debt later.

35:06That's the electric fund will pay it.

35:07Correct. 100%. Okay.

35:09>> Um the last thing I wanted to ask as a

35:11follow-up to Mr. Doyle's points was um

35:14he had stated that about twothirds of

35:16the electric cost was accounted for in

35:18the presentation. I think there was like

35:20a 10 or 11 million delta and he'd

35:21speculated that maybe

35:24it was the the run rate, I guess, that

35:26would cover that. Do you need time to

35:28look into that or

35:30>> Yeah. You know what? I' I'd like some

35:32time to look into it. I think it is kind

35:33of just our normal um replacement

35:36programs um you know, cable overhead,

35:38poles, um such, but um it will be very

35:42simple for us simply to provide the

35:43reconciliation from the 30 million to

35:46like the $40 million total and we can

35:48get that out to council.

35:49>> All right. Thank you. And then mayor, if

35:50I may ask um Miss Wood, but some

35:53questions and then anyone else in the

35:54group who spoke about the the parking

35:56deck, you feel free to um to say

35:59anything that's responsive to what I'm

36:02going to ask about. So, as I understood

36:03it, the asks were keep Nicholls design

36:06moving forward, readjust priorities of

36:07the streetscape if necessary, and

36:10reconsider our use of the downtown

36:12parking dollars to the municipal deck.

36:13Is that correct?

36:14>> Correct.

36:14>> Okay. And I will say generally I'm

36:17fairly sympathetic to those three asks.

36:19I mean a big thing that I've

36:23you know I've voted on numerous CIPs in

36:26the last few years where this was kind

36:28of anticipated and it seems like there's

36:30a lot of last minute changes. Municipal

36:32deck has been prioritized. Um, I will

36:35say though that from my perspective,

36:37there was a significant new ask in the

36:39letter that I saw, um, and maybe in some

36:41of the discussions we had at DNA, which

36:43is that we're now looking to have the

36:45highest capacity garage possible. Can

36:48you provide any more commentary on what

36:49the thinking is there?

36:51>> Um, in in our discussions with different

36:54groups, um, the thought was if we're

36:57going to do this, let's get the maximum

36:58parking out of it. And when we first

37:01designed the parking deck back in 2008,

37:04I believe that there were some

37:05accommodations made in certain areas to

37:09beautify the parking deck as much as

37:11possible. And taking another look now 20

37:14years later, do we need a lot of those

37:17enhancements? If there is a park, let's

37:19say, can that be better utilized as

37:21parking as an example? So, I think that

37:24was the that was the bent of trying to

37:26get the maximum use out of that space we

37:28can. Um, you know, some at meetings

37:31admittedly said, "Boy, can we go taller

37:34using the Van Beerren parking deck as

37:36the model that years ago we built, I

37:38think that was supposed to be a

37:39three-level deck, and it was some of

37:41your former city council members that

37:42said, "No, let's go higher." And we did

37:44that. That was a smart move. Um, so I

37:47think it's just let's get back to the

37:49design and let's see what we can do

37:51whatever 20 years later since that

37:53design was done almost and see what we

37:56could do to optimize parking. Does that

37:58help?

37:59>> That's extremely helpful. So, I I would

38:01just just for my one council member,

38:03speaking for myself, um like I said, I'm

38:05sympathetic to the three asks. Um

38:09they're in line with what was in the CIP

38:11before in prior years.

38:13>> Um a couple of things that are just kind

38:15of musthaves for me are bikeability,

38:18walkability in downtown, right? Because

38:20if we get a customer in downtown on a

38:23bike path or

38:25um you know feeling more safe to walk

38:28that is just as valuable as having

38:29someone parked downtown. We want

38:31shoppers downtown not just or you know

38:33people downtown not just drivers

38:35downtown. So that's one thing that's

38:37like we we absolutely have to be

38:39prioritizing that at the same time. Um

38:41the other one is just as a suggestion as

38:43somebody who talks to residents. It's

38:45our job to be the voice of residents. My

38:47guess is if the push in the next year is

38:50to to to go a story higher than what was

38:52on the previous elevations, my guess is

38:55that is going to result in community

38:57push back that that just makes this

39:00project go years years out into the

39:02future. That's one council member's

39:04take. I'd throw it out there, but you

39:06know, as we further discuss this over

39:08the next couple meetings, I it's just my

39:10feedback. Thank you, Mayor.

39:12>> Thank you, Councilman White.

39:13>> I appreciate that. Yes, message.

39:18I know Chris might had a

39:21>> if you ask him a question. It's okay.

39:23>> Uh, sure. May Chris, did you have

39:25followup to what? Um,

39:28>> I just wanted to add to Katie's comments

39:30and you asked about um I think most of

39:33the talk of adding a story or maximizing

39:36came out of feedback from others. Not,

39:38this wasn't from us saying

39:42I I as a business owner, property owner,

39:45resident of downtown. I live right

39:47across from uh where North Central just

39:49built the parking uh pavilion. Uh we

39:52didn't we weren't asking for that. We

39:54were just taking that as feedback.

39:56People saying, "Have you maximized it?

39:58Are you looking at um the best ways to

40:00minimize costs per spot?"

40:03We as the DNA and the group aren't

40:06weren't coming saying add a fourth story

40:09maximize this thing. Let's go big. That

40:11was not our request.

40:15>> Okay. Councilman White.

40:17>> Thank you. Uh and a few com uh comments

40:20and uh thanks for the for everyone in

40:23the public coming out to speak on this.

40:25Um, you know, I kind of look at our

40:29downtown as that as the anchor to the

40:31city. It's almost like putting in a

40:34Walmart at a big shopping center and

40:35then Walmart becomes the the anchor. Uh,

40:38and I say that because I get a some push

40:40back. I live in South Neighborville and

40:42I get people in South Neighborville that

40:44we, well, why aren't we doing something

40:45in South Neighborville? And trust me,

40:48there's all areas of the community that

40:51North, South I think should all be

40:53considered. But I think when with the

40:55downtown, it tends to bring in people

40:58from outside. We have the data to show

41:00that and the rest of the uh city tends

41:03to benefit from that because they're not

41:05going to just visit the downtown.

41:06They're going to go other places as

41:08well. So, I do uh appreciate that. Uh

41:11but uh one question for uh well, and to

41:15that point, so I'm I I would support

41:18trying to get that parking deck in there

41:20because of all the reasons that were

41:21explained up here. I think it's a good

41:23thing as far as allowing those

41:26businesses to have customers that find

41:29parking that's convenient for them to go

41:31and shop. And uh in my opinion, I think

41:35there's there's parking in in the

41:37downtown, but it's just not conveniently

41:38located. And I think we end up missing

41:40out on opportunities for our businesses.

41:43Um now, I understand uh Mr. Kger, uh

41:46focus is now on the municipal deck, and

41:49that was that was news to me when I

41:50heard about

41:53Yes, it was. And I believe uh and Mr.

41:55Randolph will have more on this, but it

41:57was a result of kind of a condition

41:59assessment um you know that is uh

42:02municipal deck is now I guess 35 years

42:07old. Um and you know has uh wear and

42:11tear and some structural maintenance

42:12that needs to be conducted. Um uh I I

42:16know that we did not have it in last

42:18year's CIP. Um I believe it was moved up

42:22because of the um condition assessment.

42:26Is that fair, Mr. Randolph?

42:30Uh Walker Consulting in 2022 recommended

42:34a rehabilitation of the deck. It's it's

42:36essentially the waterproofing membrane

42:38that's in between the the two different

42:40slabs of concrete. Um, I don't recall

42:43when it was first introduced into the

42:45CIP, but Walker was back uh this summer

42:48or earlier this year and did another

42:51visual structural inspection of all of

42:53our decks and confirmed that we should

42:55move forward with that.

42:57>> Okay. Now, I know we did a few uh

43:00improvements down there and like a

43:03couple years ago, I know we painted the

43:04entire flooring in the on the deck and

43:07so on. So, I'm hoping that all that

43:10didn't go to waste because now we're

43:12going to have to go through and do all

43:13this um construction to re

43:17>> Yes, that was on the lower level. We're

43:18talking about the uh what's currently in

43:21the CF is for the upper level.

43:23>> Okay. So, all that work we did before

43:25won't go to go to waste. Correct. Okay.

43:27Good. Um thanks. And uh a couple of

43:30other questions on the battery that Mr.

43:34Hus got up to discuss.

43:38Um any update on that, Mr. Kger?

43:40[clears throat]

43:40>> Sure. Um and I've been hitting at it a

43:42little bit. Um I will tell you if um uh

43:45we have uh since uh had discussions with

43:48IMEA, why do we have discussions with

43:50them? Because um uh we are currently in

43:54a full requirements contract with them.

43:56Uh therefore, they need to play a role.

43:58you know, it doesn't mean that they have

43:59full control, but we have looked over um

44:02the financials and in this case um if we

44:06uh were simply buying on the market um

44:09without any assets, a battery makes a

44:12ton of sense. Um if you are hedged with

44:15generation assets on both the energy and

44:18capacity side, uh it makes less sense.

44:21uh as a member of IMEA, they're about

44:23100% hedged, meaning that um there's

44:27ownership in uh either generation or

44:29contracts uh that cover all of the

44:32demand, all of the need. Um uh the the

44:37real benefit you get from battery um

44:40really comes down to um and frequency

44:42regulation is one uh although the value

44:45of that has been uh diminishing. um

44:48really um just kind of your biggest

44:50piece would be kind of like the

44:51arbitrage. So um buy when prices are um

44:56low or um charge [clears throat] it up

44:58when price are low and um discharge it

45:01uh when prices are high. Um with our

45:03current contract um whether we use uh a

45:07kilowatt at 6:00 a.m. or 7 pm which is

45:11our peak time um we pay the same price.

45:14Uh so that kind of eliminates that. Um

45:17it helps but to a much lesser scale um

45:21because it will help uh IMEA reduce

45:25their total peak load. So it will reduce

45:27their capacity needs but to a much

45:30lesser extent um than if we were buying

45:33directly on the market. So, um, yeah,

45:35the, um, information we got from the,

45:39uh, sales folks, and I know I I' I've

45:42made the statement that says, "Oh, you

45:43know what? This thing's going to pay

45:44itself off in in three years." Um, was a

45:47great sales pitch, but, um, would not

45:50work for us until after 2035. Um there

45:54is still uh IMEA is still looking at um

45:58a pilot and Neapville still is in

46:00consideration for their PJM pilot for a

46:03battery and um you know our hope is that

46:07um uh that that's going to play out.

46:10>> Yeah. I mean I'm just looking at it just

46:12in the simplest of terms.

46:15um we would charge we're going to use

46:17IMEA what we currently use to charge the

46:22battery. So we're already using that

46:25that contracted energy. So once we store

46:28it in a battery, why I'm I'm I'm just

46:32kind of dumbfounded why they even have a

46:35say so in what we do with the energy

46:38that comes out of the battery at that

46:40point because we've already bought the

46:42energy from them to fill up the battery.

46:44>> Right. Right. Right. It's it's it's

46:46really kind of the way the contract is

46:47worded. Um and if you do have one near

46:51100% or near 100% hedging, um uh the

46:55additional capacity you get, um you

46:58can't you're less like you're less able

47:00to leverage that because it will always

47:02have to be sold into the market instead

47:05of avoiding a cost that you normally

47:07would have had for the capacity. Um

47:09yeah, I mean when we if we put a battery

47:11in and charged it up, that would be full

47:14requirements um uh coming into IMEA and

47:16we'd be we would be purchasing that. Um

47:19when uh we discharged it, um the way the

47:23contract is written, uh we would not be

47:26paying them for all of the energy that

47:30um uh we required because we would be

47:34using the the stuff we set aside for the

47:37battery. um and that you know that

47:39currently would be in conflict with the

47:41contract. You know, my guess is that

47:42they would be reasonable and um we

47:45continue to have discussions with them.

47:47Um we're not at a point yet uh with the

47:51new scenario where we can kind of give

47:52you a payback. Um but uh we believe it

47:55is going to be north of 10ear. That

47:58doesn't mean we don't do it, but I want

47:59to make sure that I have all the facts

48:01before we bring it to you. Um, just

48:03because it is not in uh the CIP at this

48:07point in time does not mean it would not

48:09be something that we would do in 2027.

48:11Um, but we would only bring it as a

48:13staff recommendation if we thought it

48:15made sense. And regardless, we will

48:18bring the results of that to council

48:20whether it makes sense or not. and all

48:22that takes into consideration

48:24um if we were to put it back into the

48:28market through PJM

48:30basically

48:32um there is it PJM that was given the

48:35the I don't know a wreck or bonuses to

48:39um communities that have the batteries.

48:42>> Yeah. Yes. uh PJM will will provide um

48:45uh credits um for people who have the

48:48batteries just because it makes the the

48:50whole system better and more resilient.

48:53Um however um financially

48:57uh those would um those would have to

49:00run through IMA before they came to us.

49:03It doesn't mean the value is really

49:04diminished. It just means that because

49:06it is a fall requirements contract, it

49:08needs to run through that.

49:10>> Okay. And uh just one more question. The

49:13uh you talked about what Mr. Doyle

49:16mentioned about the finances and the

49:18borrowing and so on. I and maybe he was

49:20being more specific towards uh the

49:22electric utility from a borrowing

49:24standpoint, but I do recall during co

49:27when the rates were like really cheap,

49:29we were looking at taking advantage

49:32uh of of borrowing at that time just

49:34because the rates were so cheap. Any can

49:36you kind of fill us in on that?

49:38>> Yeah, we uh absolutely. um we kind of

49:40take a holistic uh approach to it. Um if

49:43money's cheap uh which you know five six

49:47years ago it absolutely was. We we're

49:50we've just kind of finished up um boy um

49:54at least a decade almost two decades

49:57worth of very very cheap rates. And as

50:00aa rated community um we we pay very

50:03little. Um we're not allowed to make any

50:05money on that. But our first choice if

50:09we have the cash available um is to

50:11issue no debt even as a low percentage.

50:13And and we've been very fortunate over

50:15the years um uh to not have to issue

50:20debt for utility because utilities

50:22typically very capital intensive uh and

50:25um therefore also typically very debt

50:27heavy. Um and we have avoided that um by

50:30historically charging slightly higher

50:32rates so that we could issue less debt.

50:36Okay. Thank you,

50:39>> Councilwoman Jane.

50:41>> Thank you, Mayor. Um,

50:44uh, if I could pose a a question to, uh,

50:47Mr. Krueger for um the

50:51uh battery question again. Uh if my

50:55understanding or memory is correct

50:57around this time in discussions with

50:59director groth he had mentioned that

51:02batteries were more affordable right now

51:04and that this was the time to make those

51:07purchases.

51:09Um, so given that, I guess how might we

51:16use this opportunity

51:18or is there a way for us to work this

51:20in?

51:22>> You know, I I I I think that there will

51:25be um and I think it's a great

51:27opportunity. He's he's absolutely right.

51:28Um, you know, battery place prices over

51:31the last five years have have plummeted

51:34and um, you know, as well as kind of

51:37efficiency gains in them have have

51:39improved significantly as well, which

51:42means that during a charge res charge

51:45cycle, you lose you lose less a smaller

51:48percentage um, just through like normal

51:51losses. Um, so it absolutely is becoming

51:53more efficient. I um uh and I wish I had

51:57it today kind of like the financial

51:59analysis that shows what it would look

52:01like, but right now um uh based on what

52:05I know, I believe it would require, you

52:09know, slightly higher um electric rates

52:12on our part to cover the debt service

52:13associated with the battery. Um but I I

52:16feel it's my obligation to prove that to

52:18you and let and because it's your

52:20decision.

52:22>> Okay.

52:23Um, another question I had was for Mr.

52:27Malone regarding the parking deck. Uh,

52:30you had mentioned that um, we may have

52:34started with an estimate of $18 million

52:36for that parking deck and that we have

52:38moved towards 7 37 million about or 36

52:41million. Um, is that increased due to

52:45materials and labor costs or are there

52:47other aspects that

52:49>> I think there are I think there are

52:50other aspects to that. I mean obviously

52:52time value of money but yeah

52:53construction costs are going up across

52:56industry as materials become more and

52:58more expensive. Um yeah part of that is

53:03dollars in 2026 are less valuable than

53:06they were in 2007. Yeah, I I just wanted

53:09to clarify if that was the the key

53:12difference or was it the design

53:13differences to um

53:16to in ensure based on the feedback of

53:19the residents in that area

53:21>> that I

53:22>> could could that be also

53:24>> prior to my time with the chamber? So

53:25I'm I'm believe so.

53:29>> Yeah, same

53:31>> Mr. Kger.

53:32>> Uh thank you. No, the um uh the design

53:35elements were all include like with the

53:38pocket park and the plaza um and the um

53:42kind of gingerbread touches. Those were

53:44included in the initial estimate. So, it

53:46was it was all simply inflationary

53:49increases.

53:50>> Thank you,

53:52>> Councilman McBroom.

53:54>> Thank you, Mayor. Um first just uh you

53:58know my my experience on the financial

54:00advisory board just to add a little bit

54:02of context that might maybe relates to

54:04this debt discussion as revolves around

54:06the utility um you know for for many

54:10years uh and and Mr. you can maybe

54:14highlight this. Um, but uh that Mayor

54:16Cher was here. There was a big debt

54:18reduction move. There was a big uh there

54:21was a concern that the city had too much

54:23debt and um went on a campaign and and

54:26and used a lot of cash to to to really

54:29kind of clean things up and and to the

54:31point where maybe there was an argument

54:32where uh some infrastructure was

54:35neglected um that we could have used

54:37cash on and and and maybe we went a

54:39little too far and got a little too

54:40conservative on our um uh willingness to

54:43to use debt. I think everybody

54:45understands if there's you know capital

54:47that we're spending right now that's

54:48going to benefit a future generation um

54:51that uh it makes sense. So you know in

54:54that previous rate study uh I believe

54:56the financial advisory board actually

54:58encouraged uh director Munch at the time

55:01um to to issue issue debt and um and

55:04levelize those rates a little bit. So,

55:06um, you know, I'm a I'm in my personal

55:08life, I I'm not a fan of debt, but, um,

55:10you know, it it should and it could be

55:12used properly. Um, and maybe we weren't

55:14utilizing it u to the extent that we

55:16should have at times. So, um, I want to

55:19go back to the, uh, parking deck. I

55:21think a lot of us were maybe a little

55:23bit surprised to recently hear about

55:25the, you know, parking municipal parking

55:27deck. I I had to hear from a business

55:28owner. Um, so I I did call uh, Director

55:32Galahoo. We had conversation about it.

55:34Um, you know, I I do see the parking

55:37deck as an investment. Uh, it's not just

55:39building the parking deck. Um, and and I

55:41think there's a return on that that

55:42investment. Um, uh, and and maybe um,

55:47you know, Pam, if you could kind of our

55:49conversation, you're my understanding.

55:51It really wasn't a a capacity thing from

55:54a staff standpoint. It was more of a

55:57logistical. Um but 30 days ago the

56:00municipal deck what I it wasn't in our

56:02conversations when we were meeting with

56:04DNA. So this is a a fairly new thing. Um

56:08and I I would like to you know maybe

56:10push back and repri prioritize. Um so a

56:14couple things the engineering or getting

56:16the new plans is we are including that

56:19in the 2027 or is that is that moved off

56:22as well?

56:24uh you know that moves off I think

56:26either Mr. Hines or Miss Lowden will be

56:28able to give you a little more detail uh

56:30around the specific timing.

56:33>> Sure. So with regard to the Nickels

56:35deck, the proposal that um we have in

56:38the slides tonight that we're going to

56:39go over includes essentially concept

56:42design remaining for the Nickels deck in

56:462027.

56:47Um and then pushing out the actual

56:49detailed design for the construction

56:51documents that we would need for

56:53bidding. um that pushes that out a few

56:55years to align it with construction

56:57coming after the next phases of

57:00streetscape and after the municipal

57:01deck. So the reason that we um proposed

57:05keeping money in to continue design in

57:08terms of concept was because of some of

57:10the feedback that had been relayed to us

57:11from the meetings that were had where

57:13there's questions around the design. You

57:15know, does it need all the aesthetics?

57:16Do we need the pocket part? Can we um

57:19forego the underground portions? Could

57:22we go higher? Um, you know, if we're if

57:25if we're committed to the design as it

57:27is, we could skip that phase and go

57:28straight to beginning preparation of

57:30construction documents for bidding. Um,

57:32but if we want to investigate any of

57:34those questions, we would want to bring

57:36um a parking expert on board to evaluate

57:38some of those potential cost-saving

57:39measures and things that would make the

57:41deck more costefficient.

57:43>> So, concept design in in this budget,

57:47that's quite different than getting full

57:49engineering designs, right? Correct. And

57:51the numbers a lot bigger, right? The

57:53difference um

57:55>> the numbers for engineering or

57:58>> so we kept the same amount for

58:00engineering as we would expect we'd

58:02need. We just pushed that out and then

58:03added that 100,000 in for the concept

58:07phase.

58:08>> Okay. But what's changed is uh the

58:11timeline of of construction.

58:14Instead of

58:15>> Yes.

58:16>> 2027 2028, we're talking 2031 or

58:20Yeah. So, for the past several years

58:22where we've slotted these within the

58:23capital improvement program, um and and

58:26through our conversations with DAC and

58:27DNA and NDP, um has assumed that we

58:30would basically um dust off the old

58:33plans, fix them up a little bit, and

58:35move on to construction. So, as we

58:38started to take a look further, we did

58:40um begin to understand after having a

58:42courtesy conversation with some deck

58:43experts that we would need to do a

58:45little bit more uh robust design on

58:47those plans to bring it up to current

58:48building codes, which is where that cost

58:50increase comes in. So, that will take a

58:52little bit more time. Um and then as

58:54more of the conversations started to

58:56come around with questions regarding um

59:00the design elements, height, park,

59:02aesthetic features, that's where we felt

59:04like that's going to take us more time.

59:06If we want to reopen those

59:07conversations, we're going to need a lot

59:09more time um to prepare that design.

59:13>> And okay, so in the extending this

59:16timeline, is this a staff capacity thing

59:18or is it logistics?

59:21>> It's it's it's a lot of both.

59:23Logistically, um I I do not recommend

59:26that we conduct major streetscape

59:28projects and multiple projects at a

59:31time. I think that's just too much

59:32impact on the downtown. That does

59:34require a lot of staff time. that those

59:36are the priorities, we can allocate the

59:37staff and and adjust other priorities

59:39accordingly. Um, but I really think it's

59:41it's more of a logistic and the impact

59:43to the downtown that we're concerned

59:44with.

59:46>> Okay. Thank you,

59:48>> Councilman Wilson.

59:51>> Thank you, Mayor. Um, so we had the PUAB

59:54board meeting uh this past Thursday and

59:58the discussion around rates was brought

1:00:01up. We got the report from the finance

1:00:03department looking at it. Sorry, sorry

1:00:05if this has already been talked about,

1:00:07but um with the rate recommendation

1:00:12changes that were brought seem to line

1:00:14up with the electric charges

1:00:17um at least year to date and from the

1:00:19variance from 2025 from from last year.

1:00:22Uh obviously Sans the debt that was um

1:00:27occurred, but um they they seem to line

1:00:30up. And the question was brought up to

1:00:32uh mayor I I don't know if Tracy if you

1:00:35have any comment on this either but uh

1:00:38the question as far as like subsidation

1:00:42subsidi sub subsidies and rates as far

1:00:45as those go uh how those occur and if

1:00:50hopefully I'm remembering those right

1:00:52and not to put hopefully I'm not putting

1:00:54words in um mayor's mouth here but um

1:00:59from what he had said there may be

1:01:02variances monthtomonth but um actual

1:01:07at at the end of the year and I know

1:01:09director Kger you've talked about this

1:01:10before where like things may change

1:01:12monthto monthth but at the end of the

1:01:15day at the end of the year then uh we

1:01:18may be short or or um ahead based on

1:01:23people's purchases purchase of

1:01:25electricity or if we're not ahead if

1:01:29we're in debt that then uh we may need

1:01:31to issue um or purchase debt, which is

1:01:34kind of what happened. Um and and the

1:01:38discussion around not raising rates for

1:01:40some time had had was brought up as well

1:01:44and hence uh what was what had happened

1:01:48last year as far as rate increases as

1:01:49well. So would is is that an accurate

1:01:53representation, Director Kger?

1:01:55>> Yeah, I mean I I I think that's a fair

1:01:57assessment. Um, you know, uh, we strive

1:02:01from one rate study period till the end

1:02:04of the following one. Um, we, you know,

1:02:06we look at, hey, where are we going to

1:02:08be three years at the end here? Um,

1:02:11knowing that, um, you're going to have

1:02:13some years better than better than

1:02:16anticipated and some years worse. And,

1:02:19um, yeah, I mean, for this three-year

1:02:21period, um, we're we're actually

1:02:23tracking fairly close. Sure. Um, you

1:02:25know, a lot of it, um, probably the the

1:02:28greatest variable we have, you know,

1:02:30frankly, um, without a major customer ad

1:02:33or or loss, um, is really weather. And,

1:02:36um, you know, that's very difficult to

1:02:39predict.

1:02:40>> Thank you.

1:02:43>> All right. All right, I'm going to

1:02:44reserve my my comments regarding the the

1:02:46parking garage and the funding source

1:02:48for the municipal parking garage for um

1:02:52the actual presentation a little later

1:02:54on in the slides. But with regard to the

1:02:56battery technology, uh I mean we're in a

1:02:59full requirements contract with IMEA.

1:03:02Batteries are for peak shaving and

1:03:03frequency regulation. If the city goes

1:03:05out and acquires a battery and it does

1:03:07anything that would trigger a peak

1:03:09shaving interpretation by the IMEA,

1:03:11their membership is likely going to say,

1:03:14"Okay, thanks for subsidizing us."

1:03:15Because you can't peak shave without

1:03:18being a party to this. So, um I I think

1:03:23at this point where we are with IMA

1:03:26contract, we're we're pretty locked in

1:03:27unless we decide to reopen negotiations

1:03:29and potentially have that conversation

1:03:32um and and get something done earlier,

1:03:34but they were pretty clear about where

1:03:35they were with peak shaving prior to our

1:03:37our conversations.

1:03:40All right, so we need to get Councilman

1:03:42Sed back on the phone. Mr. Kger, you're

1:03:45getting to get your presentation queued

1:03:47up. Are you ready to go?

1:03:50Uh, Miss Lelo said, "I'm not quite ready

1:03:53and I need one minute."

1:03:54>> All right,

1:03:55>> we we are ready, Mayor.

1:03:56>> You can put it on the screen. How about

1:03:58that?

1:04:04>> Yep, they do that back in the booth

1:04:05also. All I can do is All I can do is

1:04:07move forward and back.

1:04:14>> Hello,

1:04:15>> Councilman Sad. Yeah,

1:04:17>> you're back live in council chambers.

1:04:20Please hold on for a second.

1:04:22>> Okay.

1:04:32>> All right. We are all set. Mr. Mayor, go

1:04:34ahead. All right. Uh thank you. Uh and

1:04:37good evening everyone. Tonight is the

1:04:39first of three budget workshops being

1:04:41held to discuss the proposed 2027

1:04:44operating and capital budgets. Uh these

1:04:46workshops are an important part of the

1:04:47annual budget process. Uh they inform

1:04:50the community on how the city will spend

1:04:52tax dollars and provide all of you with

1:04:54the information necessary to make

1:04:56well-informed financial decisions.

1:04:59Tonight, uh we'll start with an overview

1:05:02of the city's capital improvement

1:05:04program, uh more commonly referred to as

1:05:06CIP. Uh we'll review this year's

1:05:08progress and discuss some of the major

1:05:10areas of investment planned for the next

1:05:12five years. uh and that will include an

1:05:14overview of some of the projects uh we

1:05:17have planned and details on how we

1:05:19intend to fund those projects.

1:05:23The CIP provides a multi-year roadmap

1:05:26for the city's infrastructure and

1:05:27capital needs rather than looking at

1:05:29projects one budget year at a time.

1:05:31These types of projects often have long

1:05:34lead times and can span several years

1:05:36from initial planning and design through

1:05:38construction and completion. The

1:05:40multi-year approach allows the city to

1:05:43look ahead at major investments,

1:05:44anticipate funding needs, and better

1:05:47understand how projects fit together

1:05:49over time. It also helps staff and

1:05:52council consider the overall pace and

1:05:54sequencing of capital investment rather

1:05:56than evaluating each project in

1:05:59isolation.

1:06:01But we want to stress is just because we

1:06:03look at the CIP in five-year increments

1:06:05doesn't mean this is a oneanddone review

1:06:07for council. uh you will have multiple

1:06:09checkpoints to review capital projects

1:06:11before significant expenditures occur.

1:06:13Uh the first opportunity is really

1:06:16tonight. Um the reason we have a capital

1:06:18workshop before the proposed budget is

1:06:21published is so that council can discuss

1:06:23priorities, project timing, scope, and

1:06:25funding that gives staff information we

1:06:29need about these major investments so we

1:06:31can adjust as needed and still have two

1:06:33more workshops for council discussion.

1:06:37As individual projects move forward,

1:06:39there are additional opportunities to

1:06:41review their funding, contracts, and

1:06:43other actions necessary to advance the

1:06:45work during the procurement process.

1:06:48This process allows council to provide

1:06:49direction as more information becomes

1:06:52available, particularly for projects

1:06:54with significant cost, complex designs,

1:06:57and changing circumstances.

1:06:59So, inclusion in the capital program

1:07:02should not be viewed as a single point

1:07:03of approval. It's part of a broader

1:07:05process that gives council multiple

1:07:07opportunities to evaluate projects

1:07:10before major expenditures are made. This

1:07:13flexibility is particularly important

1:07:14for multi-year projects because

1:07:16estimates and circumstances can change

1:07:19between the time a project is initially

1:07:21planned and when construction actually

1:07:23begins. Uh this approach allows the city

1:07:26to continue planning for long-term

1:07:28infrastructure investment while

1:07:29maintaining the flexibility to respond

1:07:31to changing priorities, costs, and

1:07:34financial conditions.

1:07:37This year, capital dollars spent and

1:07:40under contract are 11% higher compared

1:07:42to 2025.

1:07:44Uh that improvement in spending is

1:07:46largely driven by projects within the

1:07:48electric and water utilities. Uh along

1:07:50with TED, we expect to spend roughly

1:07:53$157 million this year, about 87% of the

1:07:56CIP with 51% of that work already under

1:08:00contract.

1:08:02Work on the reconstruction of North

1:08:04Aurora Road underpass continues with

1:08:06about $20 million currently uncumbered.

1:08:09Uh this project's funded 90% by outside

1:08:12resources including federal, state, and

1:08:15local partnerships with Aurora as well

1:08:17as Neapville Township. Uh at the same

1:08:19time, water is making steady progress

1:08:21with ongoing work at Springbrook and

1:08:23other capital improvements.

1:08:25Overall, we're making great progress on

1:08:27projects that have been and projects

1:08:29that will continue to be in the budget

1:08:31for many years. And with that, I'll turn

1:08:34things over to Tracy Morocco to walk you

1:08:36through what the upcoming CIP looks

1:08:38like.

1:08:41>> Thanks, Doug. This slide illustrates how

1:08:44our CIP continues to shift towards

1:08:46upgrades and replacements over the fa

1:08:48past five years and will continue to do

1:08:50so in the future. Historically, the CIP

1:08:53has been divided into two major

1:08:55categories. Upgrades and replacements

1:08:57and maintenance. Projects that fall into

1:08:59the upgrade and replacement category

1:09:00involve new assets, large-scale

1:09:02replacements of assets at the end of

1:09:04their useful life, or assets that are

1:09:06being replaced due to external factors

1:09:08such as updated regulatory guidelines.

1:09:11Water main replacements, the Spring

1:09:13Treatment Plant Rehabilitation, and

1:09:15North Aurora Road are all examples of

1:09:16projects that would be would be

1:09:18considered an upgrade or replacement.

1:09:20While most of the city's current capital

1:09:22program falls into this category, we

1:09:24classify another group of projects as

1:09:26maintenance. These are the projects that

1:09:28extend the useful life of existing

1:09:30assets. Examples include road, bridge,

1:09:33and parking deck maintenance programs

1:09:35along with asset repair and improvement

1:09:37programs in the electric utility. About

1:09:3988% of the CIP is allocated to upgrades

1:09:42and replacement projects, while the

1:09:43remaining 12% is allocated to

1:09:45maintenance focused projects. While this

1:09:48split has been relatively consistent

1:09:49over the last few years, we can see this

1:09:51hasn't always been the case. As the city

1:09:54continues to age and as new guidelines

1:09:57are establish established and new

1:09:59developments come online, we will

1:10:01continue experiencing a shift towards

1:10:02upgrades and replacements.

1:10:07The proposed CIP for 2027 totals nearly

1:10:10$211 million. This is an this is 11%

1:10:14higher than the 2026 CIP. Outside of the

1:10:17utilities, this increase is related to

1:10:19the North Aurora Road project, the

1:10:21Riverwalk South Extension Hillside

1:10:23Gateway project, and the municip

1:10:26municipal center deck rehab, and those

1:10:28will be discussed later this evening.

1:10:30Again, I want to be clear that this

1:10:32number is preliminary and subject to

1:10:34change as we continue to work through

1:10:35the budget process. The chart before you

1:10:38shows the areas of the city where

1:10:39investments are being proposed. As is

1:10:42the case in most years, utility

1:10:44infrastructure projects account for the

1:10:45majority of the CIP at 60%.

1:10:49Water makes up 46% or more than 96

1:10:52million of the proposed CIP, primarily

1:10:55due to upgrades at Springbrook. Electric

1:10:59accounts for an additional 14% or nearly

1:11:01$30 million.

1:11:04Outside of the utilities, the next

1:11:05largest area of investment is

1:11:07transportation projects which account

1:11:09for 19% of the total CIP. Projects in

1:11:12this space include the continued

1:11:14construction on North Aurora, the 87th

1:11:16Street Bridge, and various traffic

1:11:18improvements.

1:11:19The remaining 21% is made up of items

1:11:21that include vehicle replacements,

1:11:23technology upgrades, and riverwalk

1:11:25investments.

1:11:27Any

1:11:29questions on those first couple slides

1:11:30before we move on?

1:11:32>> Seeing none, go ahead.

1:11:35>> All right, moving on to the utilities.

1:11:37First up is the water utility. Uh, as we

1:11:40mentioned earlier, Water's capital plan

1:11:41makes up almost half of the overall CIP

1:11:43for next year. The two main priorities

1:11:46include the multi-year reinvestment in

1:11:47the Spring Brook treatment plant and

1:11:49ongoing water main replacements. The

1:11:52Springbrook site improvements consist of

1:11:53all other projects located at or

1:11:55associated with Springbrook that fall

1:11:57outside the treatment plant process.

1:12:00Lead pipe replacement focuses on

1:12:02replacing the remaining lead service

1:12:03lines located in older parts of the

1:12:05city.

1:12:07Mun municipalities are required to do

1:12:09these replacements and Neighborville

1:12:10remains on track to complete the work by

1:12:122027.

1:12:14The utility is also focusing on sanitary

1:12:16sewer improvements to help prevent

1:12:18groundwater and storm water from causing

1:12:20sewer backups in homes. And of course,

1:12:23there are other capital projects that

1:12:24may not be aligned with one of these

1:12:27specific priorities, but are vital to

1:12:28maintaining the utility's day-to-day

1:12:30operations.

1:12:33This slide should look familiar to most

1:12:35of you as the Spring Brook

1:12:36revitalization has been going on for

1:12:38several years now. As a quick reminder,

1:12:40this work is driven by permit

1:12:41requirements, capacity needs, and the

1:12:43plant's age. The progress illustrated on

1:12:46the slide is based on the project's

1:12:48timeline rather than dollars spent. This

1:12:52project began in 2021, and we are just

1:12:54over halfway through it in 2026.

1:12:57Work on the UB disinfection and influent

1:13:00pump station projects is complete, and

1:13:02the South Plant grit and RAZ project is

1:13:05expected to be completed in 2027.

1:13:09Design has been completed for all

1:13:11projects except one, and much of the

1:13:13planned spending is for construction

1:13:14over the next five years.

1:13:19Displayed here is the full scope of W's

1:13:21capital spending for next year's budget

1:13:23and beyond. For 2027, Water's total

1:13:26capital investment adds up to $98.8

1:13:28million.

1:13:29Approximately onethird of this work is

1:13:31associated with Springbrook and the

1:13:33treatment plant with another third going

1:13:35to water distribution work such as water

1:13:37manes. The treatment plant and water

1:13:40main work continues until 2031 at a

1:13:42combined total of $241 million.

1:13:46And as noted earlier, there are many

1:13:47other projects that contribute to the

1:13:49reliability of the utility that must be

1:13:51completed. Some examples include the

1:13:54rehabilitation of various sanitary

1:13:56sewers and waterworks.

1:13:58Here

1:14:00we've outlined some of the improvements

1:14:02coming to our water distribution system,

1:14:04including five major projects that co

1:14:06cover cover just over six and a half

1:14:08miles. Work will take place in portions

1:14:11of the Crest Creek, Bay Colony, Olympic

1:14:13Terrace, and Lawn Meadow subdivisions as

1:14:16well as Ogden Avenue. The Ogden Avenue

1:14:19project is budgeted at $5 million for a

1:14:21half a mile of work. This is higher than

1:14:23the residential replacements as

1:14:25construction on major roadways is more

1:14:27complex and requires increased

1:14:28coordination and traffic control.

1:14:31These projects alone account for $27

1:14:33million of waters CIP. Additionally,

1:14:36we've highlighted some of the other

1:14:38other major water distribution projects

1:14:40here.

1:14:42Two phases of the central elevated tank

1:14:44rehabilitation are budgeted next year

1:14:46for a combined total of $3 million.

1:14:48Phase one involves the construction of

1:14:50piping pertinances and a new tank. While

1:14:53phase two involves the demolition of the

1:14:55existing tank and restoration of excuse

1:14:57me of the site. 2 million is budgeted

1:15:00for the west elevated tank and reservoir

1:15:02coating. This work provides sorry this

1:15:05work protects the structure from UV

1:15:06exposure, corrosion, weather, and other

1:15:08long-term wear. An additional $1.7

1:15:11million in rehabilitation work will

1:15:13cover major maintenance in the city's

1:15:15eight remaining emergency standby wells.

1:15:19Finally, rehabilitation for both the

1:15:21Northwest and Southwest Waterworks are

1:15:23budgeted for a combined total of $3.1

1:15:26million.

1:15:27Work for these projects includes

1:15:29replacing pumps, piping, valves, and

1:15:31automation equipment.

1:15:35We wanted to make one more point about

1:15:36water main replacement work. Like Spring

1:15:38Brook, this is a highly coordinated

1:15:40process. We try to ensure that no area

1:15:43of work overlap one another and

1:15:44coordinate with other departments to

1:15:46make sure we understand their work plans

1:15:48for the coming years. This is a map of

1:15:51replacements through through 2031 with

1:15:54work occurring in areas around and north

1:15:56of 75th Street.

1:16:00Next, we'll discuss a few major sanitary

1:16:02collection and pumping projects that

1:16:04will be under undertaken. First is the

1:16:06East Highland sewer main replacement at

1:16:08$4.3 million.

1:16:11This replaces the existing sanitary

1:16:13sewer where current rehabilitation work

1:16:14has surpassed its useful lifespan. Next

1:16:17is the rehabilitation of the Spring

1:16:19Brook interceptor in the Dragon Lake

1:16:21area of the Spring Brook Forest Preserve

1:16:23totaling 5.9 million.

1:16:26The interceptor is a large sanitary

1:16:27sewer that collects waste water from

1:16:29various parts of the city and transports

1:16:31it to Spring Brook. Finally, we have the

1:16:33rehabilitation of deteriorated sanitary

1:16:36service laterals in Old Neighborville,

1:16:38also known as the Longwood subdivision

1:16:40at $2 million.

1:16:44>> Any questions on the water? CIP.

1:16:46>> Councilman Kelly.

1:16:47>> Thank you, mayor. Uh, thank you for the

1:16:49presentation so far. Just a couple

1:16:50questions on the water um items. You

1:16:54know, there's not really much we can do

1:16:56about any of these. Uh, we don't see

1:16:58them, but uh things we essentially have

1:17:00to say yes to. I'm just curious um if

1:17:03you look at slide 10

1:17:06and 11

1:17:07uh just so we kind of keep track over

1:17:09the years. I'm just curious if the

1:17:12estimated totals were at 198 for

1:17:14Springbrook. Is that the estimated total

1:17:17from when we started the Springbook

1:17:19projects about 5 years ago or is that as

1:17:21of today with inflation or are they the

1:17:24same? And do we expect that to be what

1:17:27it winds up being about five years from

1:17:29now or will that likely go up due to

1:17:31inflation?

1:17:32>> So that's what's in the budget currently

1:17:34as part of the um 2027 numbers. Um the

1:17:39total project costs in future years

1:17:42could increase. This is based on our

1:17:44kind of what we know at the moment and

1:17:46including prior year costs, the actuals

1:17:48included up to um through 2025.

1:17:52Um, so 198 is kind of our number, best

1:17:55known number at the moment. Um,

1:17:58in next year's budget that could go up

1:18:00slightly, um, based on, you know,

1:18:02updated pricing, but that's kind of the

1:18:05our our 2027 number.

1:18:09>> And is it fair to say based on this

1:18:11chart we're looking at, are we about

1:18:13halfway done with the actual work, but

1:18:16we've only spent about 20% of the

1:18:18dollars? Is that accurate on both of

1:18:20those? because the the work I from what

1:18:23I understand with these projects the

1:18:26costs are kind of delayed. Um invoicing

1:18:28comes later once the once the work is

1:18:30finally completed. So the work is

1:18:32halfway done. I think we're just waiting

1:18:34on final invoicing for some of these and

1:18:37I'm sure um director Bennis could

1:18:39explain more but

1:18:42>> yes the uh projects that are completed

1:18:44were I would say smaller projects. Uh

1:18:46the larger projects are underway now and

1:18:49next year with the south plant and north

1:18:51plant expansions. Um so those are the

1:18:53real big ticket items. Uh the ones that

1:18:55we've been done are the smaller ones. So

1:18:58um the south plant project is underway

1:19:00and uh the monthly invoices that we

1:19:02process are large. Uh so as we get the

1:19:05both the south plant and the north plant

1:19:06underway, you'll see the spent uh budget

1:19:09go much higher because there just much

1:19:11larger projects.

1:19:12>> Maybe one quick followup for director

1:19:14Blennice. if you could just tell us from

1:19:16a substantive perspective, are the

1:19:17projects going well? Is it about how you

1:19:20thought and hoped uh the Spring Brook

1:19:22projects would go and and are you happy

1:19:23with where you're at right now?

1:19:25>> Yes. Uh our Springboard projects are

1:19:27going extremely well. Um we're very

1:19:29fortunate. We've had good contractors

1:19:31and uh the projects are going very

1:19:33smoothly. Um I think we've had very few

1:19:36change orders, which is a good sign as

1:19:38well. Uh so yes, I think the the only

1:19:40thing uh that I would probably make a

1:19:42comment on is on the North plant. uh we

1:19:44wanted to be a little bit further this

1:19:46year, but as we got into the south plan

1:19:48construction and finished the final

1:19:50design for the north plant, we realized

1:19:52it was probably better from a

1:19:53coordination standpoint to delay the

1:19:55north plant a little bit uh because we

1:19:57knew more about the south plant and the

1:19:59north plant design because that those

1:20:02two projects had to be coordinated very

1:20:04tightly as we build one and take it

1:20:06offline for the other one. So, it's

1:20:09really important that we understand sort

1:20:10of uh how that works and because of that

1:20:13and what we know now through final

1:20:15design on the NOR plant that got pushed

1:20:17out a little bit and we anticipate going

1:20:19out to bid early next year. U so that's

1:20:21like the only delay but it was a plan

1:20:23delay.

1:20:24>> Thank you, Councilwoman Gibson.

1:20:27>> Thank you, Mayor. Um I'd like to start

1:20:29out by saying this slide 10 is an

1:20:31awesome graphic. Um really helpful. I

1:20:33know I sent through a lot of questions

1:20:35um kind of in a Q&A format. Um, and this

1:20:39sort of holistic view for projects, um,

1:20:42is just really helpful going forward.

1:20:44And great question by Councilman Kelly

1:20:45about projected change in cost. I hadn't

1:20:48thought of that. Um, just in general, I

1:20:51like the slide a lot. Um, I was hoping

1:20:54we could level set about water main

1:20:56replacements. Um, if you could just

1:20:58remind me kind of standard is the goal

1:21:02of what seven to 10 miles a year is what

1:21:05we've been hoping for.

1:21:08Yes. So, with each rate study, uh we are

1:21:11trying to take a little bit more work in

1:21:13that regard. Um our goal is to get to 10

1:21:15miles. Uh we did a condition assessment

1:21:18study several years ago and we've fallen

1:21:20pretty far behind on main replacement

1:21:23and to get caught up, we should we need

1:21:24to get to 10 miles for a while. Um but

1:21:27we can't do all that at once. So, you

1:21:29know, we had to sort of gradually

1:21:31stairstepped that program up and we we

1:21:33took the opportunity with each rate

1:21:35study um to sort of um take on more work

1:21:39with each. So, like hopefully with the

1:21:40next rate study, we go from seven to 10

1:21:43or somewhere in that ballpark. So, we

1:21:45went from like three miles to five miles

1:21:47to seven miles to 10 miles. So, on the

1:21:49water man side, we really have been sort

1:21:51of growing the program with each

1:21:53successive rate study.

1:21:54>> Okay. Again, Director Blanice, um what's

1:21:57like the lifespan of a standard 75 to

1:22:00100?

1:22:01>> Um

1:22:02correct. About 85 years to 100 years. Uh

1:22:05fortunately, some of the pipe that was

1:22:06put in the 60s,7s, and 80s is not

1:22:09lasting that long. It's lasting around

1:22:1150 years. So, uh but pipe put in today,

1:22:15uh should last 85 to 100 years.

1:22:17>> Okay. Thank you. Because I I do notice I

1:22:19don't know if we can go to slide 13. Um

1:22:24this looks like a lot of water main

1:22:25replacement and it absolutely is but I

1:22:27also noticed that it's not a whole map

1:22:30of our city um you know lots of v areas

1:22:34to the south to the west um and this is

1:22:37covering

1:22:40six years of plans so I just throwing it

1:22:43on our radar that

1:22:45um a lot of the city that this is coming

1:22:47up when we're talking about maintenance

1:22:50and increasing um and then on the next

1:22:53slide slide 14.

1:22:56Probably a very dumb question. Sore mane

1:22:59is different than a water mane. Correct.

1:23:01So this East Highland sewer mane um

1:23:051990s that's about 35

1:23:09years ago. Why?

1:23:10>> Sure.

1:23:10>> What's the lifespan of that?

1:23:12>> So that pipe was rehabbed in the 1990s.

1:23:14So we put in a liner uh to extend the

1:23:16life of the pipe. Um and that lining is

1:23:19starting to fail. Uh you can't line a

1:23:21liner. So now that we have we put the

1:23:23liner in the 90s and it's failing. Our

1:23:25only hope is to replace the pipe. So

1:23:28that's why we're doing the rehab for

1:23:29East Highlands. So the the liner put in

1:23:32the 90s gave us more time, but that

1:23:35lining is starting to fail.

1:23:36>> Okay. So presumably the neighborhoods

1:23:39that have been built later, say in the

1:23:4080s and 90s further to the south are

1:23:44better sewer materials and won't need to

1:23:47be replaced or

1:23:48>> we do inspections every year and uh any

1:23:50of the rehabs that we've done in that

1:23:51area

1:23:53according to our inspections are holding

1:23:55and uh we did the inspections of this

1:23:58area that lining in these areas are

1:24:00failing um and it's causing problems.

1:24:04>> Okay. All right. thinks that's really

1:24:06helpful context.

1:24:07>> Counciloman, were you referring to

1:24:09neighborhoods in in the southern portion

1:24:11of neighborville like Maple Brook and

1:24:12some of those older neighborhoods when

1:24:14you're when you said the south or were

1:24:16you

1:24:17>> Yeah, just just in general looking if

1:24:19we're replacing

1:24:20sewer main replacements that had been

1:24:23fixed in the 1990s at $4.3 million. You

1:24:26know, there's a lot of new sewers that

1:24:28were put in around that time, too. And

1:24:30I'm concerned that that means we're

1:24:31going to have to start replacing those

1:24:32soon as well.

1:24:34The uh sewer maze will typically also

1:24:36have a useful life of more than 50

1:24:39years. Um you put the liner in, the

1:24:41liner can get you an additional 30 years

1:24:43potentially if it all goes to plan. U

1:24:46unfortunately the the liner in these

1:24:47areas are failing. Um and we need to be

1:24:50be replaced.

1:24:51>> Okay. Thank you,

1:24:53>> Councilwoman Jane.

1:24:55>> Thank you, Mayor. Um uh along the same

1:24:58line of questioning regarding the water

1:25:01distribution,

1:25:03um are there any like external factors

1:25:07that might interfere with our timeline

1:25:09that

1:25:11you know like weather or

1:25:13you know material access that we should

1:25:17kind of be aware of. I think our biggest

1:25:19limitation is um cash you know

1:25:22availability right you know and funds

1:25:24and also coordination with other

1:25:27departments um you we have to coordinate

1:25:29very closely uh with the road program

1:25:32and road surfacing program uh so we have

1:25:34to make sure that we coordinate closely

1:25:36you know uh with all the utilities that

1:25:38are underground um so that's also a

1:25:41limiting factor as well uh so every year

1:25:44we have meetings and we coordinate with

1:25:47TED electric public works to make sure

1:25:49that we're not getting in each other's

1:25:51way or um or Ted will do a row

1:25:54reservicing and then not come in the

1:25:55next year and tear it up with water mane

1:25:57replacements. So, we want to make sure

1:25:58it's coordinated. So, I think those are

1:26:00the probably the biggest limitations to

1:26:02make sure we do this in a very

1:26:03coordinated fashion.

1:26:04>> Okay. Thank you. And a quick question

1:26:06and I'm I I apologize. I'm going back to

1:26:09slide number

1:26:12five. Um

1:26:15just if someone could explain the drop

1:26:19from 20 2028 to 2029 in our CIP budget

1:26:23of roughly 50 million like is that due

1:26:25to anticipated upgrades that we have in

1:26:28the coming years but we don't

1:26:30necessarily anticipate that starting

1:26:332029

1:26:35just seems like a substantial drop.

1:26:39We'd have to maybe check a little

1:26:40further, but it could be due to the

1:26:42timing of the Springbrook projects. Um,

1:26:45also sometimes what you see in a CIP

1:26:47just in general is the outy years tend

1:26:50to be a little lighter in terms of

1:26:51projects. We tend to frontload them. Um,

1:26:54even though we try our best to spread

1:26:56them out, as you'll see in the

1:26:57presentation tonight, um, but it could

1:26:59be Springbrook and and North Aurora Road

1:27:02dropping off as well some of the larger

1:27:04ticket items.

1:27:04>> Yeah, that makes sense. I just wanted to

1:27:06make sure there was something we weren't

1:27:08uh that I might be missing that might be

1:27:10coming up. So, thank you for clarifying

1:27:12that,

1:27:14>> Councilman White.

1:27:16>> Thank you. Um,

1:27:18a question on the slide number 10, if

1:27:21you can go back to that one. Now, is

1:27:24everything here based on the phosphorus

1:27:27or is there other items on here that

1:27:29deal with other aspects of the

1:27:31revitalization?

1:27:33phosphorus is a is a piece of this. So,

1:27:36uh we are using the phosphorus funds to

1:27:38offset our cost um across all these

1:27:41projects. Um this includes either

1:27:44phosphorous removal. This includes um

1:27:47making the plant larger capacity and

1:27:49also just replacing 50-y old concrete

1:27:53that's starting to fail. U so basically,

1:27:55you know, it's it's maintenance, it's

1:27:57upgrades, it's capacity improvements,

1:27:59and also the uh phosphorous

1:28:01requirements. So, it's all the above.

1:28:04>> And I I asked a question because I mean

1:28:06when I was first on council, I think my

1:28:08first budget was probably 2018's budget.

1:28:11And um I want to say the phosphorus

1:28:14plant was estimated to be $50 million

1:28:16and we had to come up with about 25 and

1:28:19you're telling me we're at 200 million

1:28:21right now. The uh uh original estimates

1:28:25that is correct. Um phosphorus is a

1:28:28piece of this probably the um and and

1:28:30phosphorus is mostly uh included within

1:28:34um Darl I think that's what the cloth

1:28:36media disc filters it

1:28:38>> nutrient removal it be the south plant

1:28:40the north plant and the cloth media disc

1:28:42filters uh are phosphorus related but

1:28:44they also include capacity expansions as

1:28:46well so um I'd say the phosphorous

1:28:49improvements are probably total um

1:28:53around half u of the total cost

1:28:56>> so It's okay. And that's kind of where I

1:28:58was where I was.

1:28:58>> And the $50 million was in 2017.

1:29:01>> Yeah.

1:29:02>> So that's about 10 years old now.

1:29:03>> So it's essentially doubled.

1:29:06>> Yes.

1:29:06>> Compared to where I don't know who was I

1:29:08think it may have been uh Neil, Mr.

1:29:10Malone was talking about how much that

1:29:12things have increased.

1:29:13>> Correct.

1:29:13>> But the parking deck and so you know the

1:29:18longer we wait the more expensive it

1:29:19gets and it's a lot. Thank you.

1:29:26That's all for the questions.

1:29:31>> All right. Uh that would bring things

1:29:33back to me. Let's see. Um for the

1:29:37electric utility 2027 planned capital

1:29:40investments total just under $30

1:29:42million. Uh main focus is to continue

1:29:45with the SCADA and Durham's

1:29:46implementation. Um, as a reminder, this

1:29:49project's necessary to ensure the city

1:29:51can replace the current SCADA system

1:29:53prior to it becoming obsolete in 2028.

1:29:57Last year, the city um uh was expecting

1:30:00a little over $700,000 in federal grants

1:30:03that were going to help fund this

1:30:04project. Uh, however, uh, due to federal

1:30:07policy change, um, grant funding was

1:30:09pulled. Uh, we appealed the decision. Uh

1:30:12and while no grant money is expected in

1:30:152026 to fund the upgrade, uh we're very

1:30:18happy to report that about a million

1:30:20dollars in federal funding will likely

1:30:22be available available

1:30:25to us next year. Um no, this can still

1:30:29change. Uh we're current operating with

1:30:31the impression uh that the federal grant

1:30:34money will be secured in 2027 and that

1:30:36will be included uh as a funding

1:30:38component for the CIP.

1:30:40Um other uh significant capital

1:30:43projects, $3.2 million for utility

1:30:46hardware and metering upgrades. Uh this

1:30:48allows our electric utility to upgrade

1:30:50the hardware required to support

1:30:52metering and billing operations. Uh and

1:30:54then we also plan to continue investing

1:30:57heavily in cable replacement program uh

1:30:59with work scheduled to take place in the

1:31:01areas surrounding the river.

1:31:05Uh another major area of focus, the

1:31:07utility substations. Uh this equipment

1:31:09plays a major role in reliably

1:31:11transmitting power through the city's

1:31:13electrical system. Uh while there are a

1:31:15number of projects that maintain,

1:31:17upgrade or replace substation

1:31:18components, uh this slide highlights a

1:31:21number of significant investments that

1:31:22are planned for the next year. Uh

1:31:24replacing very various 34 and 138 KV

1:31:28relays at the MODF substation is

1:31:30expected to cost 1.3 million. uh relay

1:31:33replacements enhance reliability across

1:31:35the system uh by protecting and

1:31:37isolating things like transmission lines

1:31:39and transformers. Uh utility will invest

1:31:42$1.3 million to purchase substation

1:31:45transformer replacements uh which help

1:31:47ensure that assets meeting the end of

1:31:49their useful life are being replaced in

1:31:51a timely manner. Uh plan also calls for

1:31:54$2 million for cable replacements at

1:31:56various substations. Uh and finally, uh

1:31:59we'll continue to see significant

1:32:00material deliveries for the tollway

1:32:02substation. Um this substation is vital

1:32:05to the city's electrical system because

1:32:07it's responsible for power uh along the

1:32:09entire IDA corridor as well as downtown

1:32:12Neapville. Um and uh question um

1:32:17spending to date, we have spent $9.4 4

1:32:20million in uh uh toll-way substation

1:32:25upgrades uh prior to this point. Um and

1:32:29then uh work uh at least a tollway

1:32:32substation also includes construction of

1:32:34a new building uh to house equipment

1:32:36indoors um which we believe will

1:32:38significantly enhance our reliability.

1:32:43Um on to undergrounding. Uh during last

1:32:45year's budget process, council engaged

1:32:47in a discussion around our plans for

1:32:49undergrounding overhead lines. Uh at

1:32:52that time, uh tier one option outlined

1:32:54on the table on the current slide was a

1:32:56directed path forward. Uh as a reminder,

1:32:59uh this option is anticipated to cost

1:33:02roughly $18 million by 2030 and focuses

1:33:05on on undergrounding lines along major

1:33:08roadways and lines that feed major

1:33:10electrical equipment. Um the option

1:33:13allows the utility to reduce outages for

1:33:15more customers while largely avoiding

1:33:18the need to work in residential

1:33:19neighborhoods. Uh pro proposed CIP

1:33:22includes $1.3 million for the

1:33:24continuation of the tier one approach to

1:33:27undergrounding. Uh and work uh is going

1:33:29to focus on lines that feed major

1:33:31equipment items uh including those that

1:33:34going from the Ogden substation to the

1:33:35Jefferson substation. Uh in the current

1:33:38year,

1:33:40uh we in expect to spend $2.3 million

1:33:45this year uh in undergrounding. Um we uh

1:33:50previously and what uh the 2.3 million

1:33:53and we're continuing to do it. Uh

1:33:55currently working on is Ogden to Eagle

1:33:57Street undergrounding. Um uh and uh

1:34:01we've actually already started the

1:34:02directional boring for that. Um, for

1:34:05next year, the 1.3 uh is significantly

1:34:08less than our original plan. That was

1:34:10due to the fact that we anticipated

1:34:12getting some federal grant funding um to

1:34:16assist us in this from a resiliency

1:34:19standpoint. Uh and that funding did did

1:34:21not pan out. Um, so, uh, our electric

1:34:26utility staff are currently reviewing

1:34:28the rest of the tier one to

1:34:30appropriately kind of sequence it

1:34:32because we're going to have to change it

1:34:33significantly since we'll be doing much

1:34:35less um than we anticipated in 2027.

1:34:41Uh, let's see

1:34:46questions.

1:34:48Are there any questions? Councilwoman

1:34:50Gibson.

1:34:53>> Yeah. Thank you, Mayor. I the toll-way

1:34:55substation upgrades. How does the amount

1:34:57of work we've put into that substation

1:34:59compared to the substation the other 15

1:35:02around the city?

1:35:04>> You know, Mr. Man, you were probably

1:35:06best positioned for that.

1:35:09Yes, we it's been a longterm strategic

1:35:12uh position to upgrade tollway and we

1:35:15are spending more on that tollway

1:35:17because of the impact and proximity to I

1:35:20888 and the impact from salt spray. So

1:35:23when that happens, we've experienced a

1:35:25lot of customer outages. So the thought

1:35:27is to bring that infrastructure inside

1:35:30for long-term reliability.

1:35:36As a followup, would you say most of

1:35:37that works to meet current need or

1:35:39expected increased need in the future?

1:35:45>> When when the building is was designed,

1:35:47it was with both in mind. It does meet

1:35:49an immediate need, but it is planned for

1:35:52the future as well.

1:35:54>> Okay. Thanks,

1:36:00>> Council White.

1:36:02>> Thank you. Uh, and just one quick

1:36:04followup to that. Um, with what we're

1:36:06spending for the the boring and the

1:36:08underground, we were at 94%. Where how

1:36:11much closer does this get us to 100?

1:36:17>> My answer would be a little bit, but uh,

1:36:20Mr. Man might be able to uh, provide a

1:36:22little more detail on that. I I I I

1:36:24think with our current schedule, we were

1:36:26looking at what, like half a percent per

1:36:28year or something.

1:36:33that be that'd be fairly accurate, half

1:36:35a percent per year. But right now, where

1:36:37we're at is the toughest uh remaining to

1:36:41underground. And what we haven't talked

1:36:44about is the rear lots where we would

1:36:46have to negotiate easements with each

1:36:48individual resident. And that becomes a

1:36:51little more problematic and a little bit

1:36:52more expensive,

1:36:54>> right? I mean, and 94% is awesome, but

1:36:59uh I know with the recent storms we had

1:37:01and uh and I want to say they hit your

1:37:04neighborhood, your neighborhood uh loss,

1:37:07they were out of electricity for some

1:37:09significant period of time. I had some

1:37:11friends that live over there as well. It

1:37:13does bring it to light that that little

1:37:15extra 6% and see if we can take care of

1:37:18it. Thanks,

1:37:21>> Councelar. Thank you, Mayor. Um, another

1:37:24question for Director Man. Uh, as a

1:37:26followup to Councilwoman Gibson's

1:37:28question. Um, I know that one of the

1:37:31developments that was contemplated last

1:37:33year u would have been a major power

1:37:35user right by I88. Um, so the CARIS

1:37:39project and that that ended up not

1:37:40happening. Um, how had that gone

1:37:44through, how would that have impacted

1:37:45the I88 substation and what changes, you

1:37:48know, now that it's a residential

1:37:49neighborhood there that's using a

1:37:52significantly different amount of

1:37:53energy?

1:37:55We talking about the data center,

1:37:57correct?

1:37:58>> Okay. U, that could be a lengthy answer.

1:38:01I'll try to shorten it. Um, the demand

1:38:04for their electricity, we would have had

1:38:07to supply it from two different

1:38:08locations for redundancy. So, it been a

1:38:11very significant uh project to

1:38:14undertake. We believe we could have fed

1:38:16them initially from uh tollway

1:38:19substation.

1:38:20However, the second feed would have had

1:38:22to come from another area and the good

1:38:25news is that cost would have been

1:38:27transferred to the cost causer. So, it

1:38:30would have helped with reliability for

1:38:32that location. But on the on the

1:38:34negative side to that then once that

1:38:37infrastructure is installed then we have

1:38:39to own and maintain it. Okay. Thank you,

1:38:41Mayor. Councilman Kelly.

1:38:44>> Thank you, Mayor. Just want to follow up

1:38:45on Councilman White's point about the

1:38:46undergrounding, which I think he's right

1:38:48on the money on that. Uh we we've saw

1:38:50this past summer how important it is. Um

1:38:53two things I just want to follow up on

1:38:54that I heard from staff. Um one from Mr.

1:38:57Kger, I heard we're doing a lot less in

1:38:5927 because of the lack of federal

1:39:01grants. Will we So first question is

1:39:05will we still plan to do the same amount

1:39:07of work just over extended period of

1:39:10time or is that going to impact the

1:39:12long-term scope of what you plan to do?

1:39:14>> You know two things the um the overall

1:39:16scope has not changed. Uh obviously um

1:39:20we are going to have to reprogram a lot

1:39:22of that 2027 work into the final three

1:39:25years. Um but we still need to get it

1:39:27done. Uh and then second related even

1:39:29though it wasn't a question um we are

1:39:31going to continue uh to seek federal

1:39:33funding for assistance with our further

1:39:35further undergrounding. All right. And

1:39:37then the second question for either um

1:39:39either Mr. Kger or Mr. Man. I think I

1:39:42heard you say that right now we're in

1:39:43the hardest part of it. And I always

1:39:46thought the hardest part was going to be

1:39:47if and when we got to the backyards that

1:39:49you mentioned, which I my understanding

1:39:51is we're not there right now. And that

1:39:54would be a decision for a future council

1:39:56whether to proceed with that phase,

1:39:58which would be a separate phase in this

1:40:00phase one. Am I do I have that right?

1:40:02Right.

1:40:03>> Yes, that is correct. If I I may have

1:40:05misspoke. The hardest part is going into

1:40:08the rear lots and negotiating for

1:40:10easements with each individual customer

1:40:12and identifying that. That takes a long

1:40:14time to do. The easiest and quickest

1:40:17path to design is anything three-phase

1:40:20along existing roadways because we

1:40:22already have rights to be there.

1:40:24>> And that's what that's what we're doing

1:40:25right now.

1:40:26>> Yes, sir. That's correct.

1:40:27>> Okay. when um would we reach a decision

1:40:31point for the city council to decide

1:40:33whether or not to proceed with I don't

1:40:35know if it's phase two or phase three or

1:40:37some other phase number but essentially

1:40:39the potential backyard uh situation

1:40:42>> you know that would probably be in 28 or

1:40:4429 time frame um which would allow us

1:40:47time to take care of the design aspects

1:40:50ahead of the you know the end of 2030

1:40:52>> and and what we're doing tier one right

1:40:54now we'll do that regardless of what a

1:40:56future council decides whether they

1:40:57decide to do that additional work or

1:40:59not.

1:41:01>> Our plan right now uh is to, you know,

1:41:04uh complete tier one. Um any council any

1:41:07year could, you know, they could pull

1:41:09the plug on something. Um but um that is

1:41:12that's currently our plan is to complete

1:41:14all of the tier one.

1:41:15>> Very good. Thank you.

1:41:18>> We're going to take a six minute break.

1:41:19We'll be back at 7:37.

1:47:09Okay, it's 7:37. We're going to go ahead

1:47:10and reconvene here. Um, can we confirm

1:47:14that Councilman Sed is still with us on

1:47:15the phone?

1:47:20Councilman Sed, can you hear us?

1:47:27Councilman Sed,

1:47:32we'll just confirm that the line's still

1:47:33open here.

1:47:58enough.

1:47:59>> Hi, Councilman Sad. You're back live in

1:48:02chambers. Thank you.

1:48:02>> Thank you. Thank you. Thank you.

1:48:05>> All right, Mr. Kger, you want to go

1:48:07ahead and proceed with um facilities,

1:48:09transportation, technology, vehicles,

1:48:10downtown products.

1:48:12>> Uh Miss Gall, you will be handling that.

1:48:14>> Thanks, Doug. Uh in this section we will

1:48:17highlight the CIP for facilities, trans

1:48:20transportation, technology, vehicles and

1:48:22downtown projects.

1:48:25Planned capital investment in city

1:48:27facilities totals almost $14 million in

1:48:302027.

1:48:32Most projects in this category are

1:48:34multi-year programs included in several

1:48:36budget cycles.

1:48:382027 is year five of a 10-year

1:48:42renovation plan for the almost

1:48:4340year-old police department. Since

1:48:462022, the locker rooms, patrol sergeant

1:48:49area, and evidence area have all been

1:48:51renovated.

1:48:53At a cost of just over a million

1:48:55dollars, the focus for the next year

1:48:57will be on rehabilitating offices in the

1:48:59investigations division and bathrooms

1:49:02throughout the building.

1:49:04The continuation of living quarter

1:49:05renovations at the various fire stations

1:49:08is returning to the CIP next year. This

1:49:11project was included in several previous

1:49:13capital pro budgets. However, staff

1:49:15prioritize improvements at fire station

1:49:184 training facility in 2026.

1:49:22With the majority of those improvements

1:49:23complete, staff is reprogramming

1:49:26$700,000 for living quarter renovations

1:49:29at fire stations five and six.

1:49:32In terms of new initiatives, public

1:49:34works is including $300,000 for a

1:49:37comprehensive evaluation of city

1:49:39building assets and major systems.

1:49:42This project will allow staff to better

1:49:44understand the overall condition of city

1:49:47buildings, which will help prioritize

1:49:49maintenance and replacement needs in the

1:49:51coming years.

1:49:53The second new project is a feasibility

1:49:55study for long range site plans that is

1:49:58being led by the Nap settlement.

1:50:01The overall goal for this project is to

1:50:03evaluate moving four historical

1:50:05structures, the blacksmith shop,

1:50:08firehouse, stone carver, and print shop

1:50:11to new locations on the settlement

1:50:13property.

1:50:14Phases one and two are planned for 2027

1:50:17and include a focused site assessment

1:50:19and the development of studies to

1:50:21evaluate the relocation of these

1:50:23buildings.

1:50:27As previously mentioned, the highest

1:50:29level of focus outside the utilities is

1:50:31on investments in transportation.

1:50:34In 2027, transportation focused projects

1:50:37are anticipated to cost roughly $41

1:50:40million.

1:50:42Similar to facilities, many of these

1:50:44projects have been a work in progress

1:50:46over the last several years. However,

1:50:49there are two new projects to cover. The

1:50:52first is the signal installation at

1:50:54Jefferson at Westridge Court or what is

1:50:57commonly referred to as the target

1:50:58light. The CIP includes $75,000 for

1:51:03design work in 2027 with installations

1:51:06set to take place in 2028.

1:51:10Although details are not final, staff

1:51:12will propose creating a special service

1:51:14area that both the developer and target

1:51:17will contribute to.

1:51:20The next new project is a traffic signal

1:51:22communications upgrade.

1:51:24Since the use of analog lines is being

1:51:26phased out, a number of traffic signal

1:51:29communication systems need to be

1:51:31upgraded.

1:51:32$300,000 is included in the CIP for

1:51:35these upgrades.

1:51:37The CIP also includes $575,000

1:51:40for continuing initiatives like site and

1:51:43traffic development in the Neapville

1:51:45South 40 located near Route 59 and 103.

1:51:50Additionally, $1.2 million is budgeted

1:51:53for phase two of the centralized traffic

1:51:56signal management system, which includes

1:51:58adding 25 existing signals to the

1:52:01system.

1:52:03Construction costs for this project are

1:52:05estimated to be roughly $2.5 million.

1:52:08However, the city will only be

1:52:10responsible for 20% of these costs with

1:52:13the other 80% being covered by federal

1:52:15funds.

1:52:19On this slide, we outline other major

1:52:21transportation projects that are

1:52:23planned. A little over a million dollars

1:52:25is included for the 248th Avenue

1:52:28upgrades. Design work and land

1:52:30acquisition are planned to continue into

1:52:322027 and construction starting in 2028.

1:52:37Upgrades include construction of new

1:52:39pavement, curb, gutters, street lights,

1:52:42sidewalks, and storm sewers.

1:52:45Almost $2 million is included for the

1:52:48removal and replacement of the Fox River

1:52:50Commons retaining wall and a little over

1:52:52a mill$2 million is budgeted for white

1:52:55oak roadway improvements.

1:52:58This work includes bringing White Oak up

1:53:00to city standards by upgrading curbs,

1:53:03gutters, utilities, street lights, and

1:53:05other amenities.

1:53:08Almost $3.5 million is planned to

1:53:10replace the 87th Street Bridge over

1:53:12Spring Brook Creek. Total construction

1:53:15costs are estimated to be $5.7 million,

1:53:19but the city has secured $3 million in

1:53:22federal funding through the local bridge

1:53:24formula program to help cover the costs

1:53:26of this project.

1:53:28And finally, construction on the North

1:53:30Aurora Road underpass will continue into

1:53:322028.

1:53:35Now, I'll turn the presentation back

1:53:37over to Tracy to talk about technology.

1:53:43>> Thanks, Pam. Turning to technology,

1:53:44capital investments in this area total

1:53:46$8.1 million. Of that amount, 5.1

1:53:50million is budgeted for the building

1:53:52security and access upgrades project. As

1:53:55previously presented, this project would

1:53:57provide an updated solution for managing

1:53:59secure access to various city buildings.

1:54:02The scope also includes funding to

1:54:03replace cameras, software, and fiber

1:54:05connectivity. The $5.1 million currently

1:54:09reflects the project cost anticipated

1:54:11for 2027.

1:54:13The total project cost for 2026, 2027,

1:54:16and future years is closer to $ 8.3

1:54:18million.

1:54:20However, given the ongoing discussions

1:54:22surrounding the project, the budget

1:54:24remains subject to change, and staff

1:54:26will continue to keep council informed

1:54:27and provide updates on the project scope

1:54:29and budget during upcoming workshops.

1:54:32Other major items include IT's capital

1:54:35replacement programs.

1:54:37These are periodic replacement cycles to

1:54:39refresh various IT assets ranging from

1:54:42PCs and PC accessories to computing,

1:54:45data storage, and networking. The PC

1:54:48replacement program has a budget of 1.4

1:54:50million while the strategic capital

1:54:52replacement program has a budget of

1:54:53730,000.

1:54:56Finally, we have the replacement of our

1:54:57utility billing software budgeted at

1:55:00660,000. Our current utility billing

1:55:02software has been in use for more than

1:55:0430 years. The updated software software

1:55:08will better meet our customers needs and

1:55:10reflect ongoing technology changes over

1:55:12that same time frame.

1:55:16Next is the proposed 2027 renewal of the

1:55:19police department's axon contract. The

1:55:22current contract expires this year and

1:55:24the proposed renewal totals

1:55:25approximately $ 1.5 million in its first

1:55:28year.

1:55:29The proposal consolidates several

1:55:31existing and previously approved Axon

1:55:33programs and resources into a single

1:55:35contract, saving an estimated $1.4

1:55:38million annually compared to maintaining

1:55:41the program separately. The programs now

1:55:43covered by the consolidated contract

1:55:45include digital evidence management

1:55:47software and interview room technology,

1:55:50automated police reporting

1:55:51functionality, virtual reality training,

1:55:54and emergency communication software, as

1:55:57well as bodywn cameras, which are

1:55:59legally mandated under the safety act,

1:56:01and squad car cameras. The consolidated

1:56:04contract also includes drones's first

1:56:06responder technology, which was approved

1:56:09as part of the 2026 budget and discussed

1:56:11in last year's workshops.

1:56:14The proposed 10-year agreement would

1:56:15provide lockedin pricing for each year

1:56:17of the contract with annual increases

1:56:19structured at 3%.

1:56:21Known annual increases provide greater

1:56:23predictability for future budget

1:56:25planning, which reduces uncertainty

1:56:27around future contract costs. While the

1:56:30agreement is structured as a 10-year

1:56:31contract, it also provides the city with

1:56:33an opportunity to reassess the

1:56:35technology, services, costs, and future

1:56:38needs at the five-year mark. This

1:56:40provides a point for the city to

1:56:42evaluate whether the technology services

1:56:44whether the technology and the services

1:56:46continue to align with operational needs

1:56:48and council priorities before proceeding

1:56:50with the remainder of the term.

1:56:53Overall, the proposal balances long-term

1:56:55price certainty and estimated cost

1:56:57savings with the flexibility and

1:56:59opportunity to reassess the city's needs

1:57:01at the 5-year point.

1:57:05Next, we'll discuss our vehicle

1:57:06replacement program. The total cost of

1:57:09vehicle replacements for the next year

1:57:10is $1 million, which is about $3 million

1:57:13more than last year. Ideally,

1:57:16replacement schedules are used to keep

1:57:18the budget flat and avoid major spikes

1:57:20from year to year. However, a number of

1:57:22public works vehicles were reprogrammed

1:57:24into 2027 and delivery of a fire engine

1:57:27was delayed leading to this year's

1:57:29variance. It's important to note that

1:57:32certain vehicles have years of lead time

1:57:34in order to secure delivery for a

1:57:35particular year. For example, the

1:57:37aformentioned fire engine was ordered in

1:57:392024 totaling $1.1 million. This equates

1:57:44to onethird of the $3 million variance

1:57:46in replacement vehicle replacements for

1:57:48next year. Displayed is a breakdown of

1:57:51vehicle replacements by department.

1:57:53Across all city departments, 46 vehicles

1:57:56are planned for replacement next year.

1:57:58Three new vehicles are included in the

1:58:00budget pending FTE approval.

1:58:04>> With that, we can answer questions from

1:58:06this section.

1:58:07>> Councilman Jane.

1:58:08>> Yes. Thank you, Mayor. Um,

1:58:11just a question regarding Well, I'm

1:58:15looking at uh slide number 21 at the

1:58:17top. that says capital investments total

1:58:2013.6,

1:58:22but um the amounts listed on the slide

1:58:27don't add up to that. So, what am I what

1:58:30am I missing?

1:58:34So, there's other projects um that

1:58:36aren't included on this slide. Let me

1:58:37see if there's an additional slide. Um

1:58:40we could provide the full list of

1:58:42facility improvements. These are the

1:58:44highlights we we tend to also have. Um,

1:58:47and we can pull the number. Um, general

1:58:50facility improvements across all city

1:58:53buildings. Um, that's not reflected on

1:58:56the slide. We just kind of pull out some

1:58:57of the major highlights, the major um,

1:59:00expenses. Um, but we could we could

1:59:02provide a full list of what makes up

1:59:04that 13.6 million if you'd like.

1:59:06>> That's fine. No, I just needed to uh

1:59:09make sure my math skills were still it

1:59:12definitely does not add up. Yes.

1:59:13>> Yeah. Thanks, Dad. My dad helped me with

1:59:15my math skills. So, I just want to make

1:59:16sure about that. Uh, the second question

1:59:19I had is still on slide 21.

1:59:22Just if you could give a little bit more

1:59:24of a background to the Neighborville

1:59:27Neighbor Settlement feasibility study,

1:59:29um, the need for the study and what we

1:59:31hope the study will will um, inform us

1:59:35about.

1:59:36>> I think Neapor Settlement is here.

1:59:38>> Yeah, thank you.

1:59:47Miss Calibri, could you state your name

1:59:49and position for the record, please?

1:59:51>> Absolutely. Raina Tomio Calibri,

1:59:53president and CEO of Neighbor

1:59:54Settlement. Good afternoon and as

1:59:56always, it's always a pleasure to be

1:59:58with you. Thank you. Um, the feasibility

2:00:01study study is necessary for a few

2:00:03reasons. Uh there has been no long range

2:00:07uh site plan for neighbor settlement for

2:00:09over

2:00:1120ome years. Uh and as you might imagine

2:00:1420ome years it was set up uh mostly as a

2:00:17settlement village that was telling the

2:00:19story of the 1800s.

2:00:21uh and today it's Neighborville. And in

2:00:25addition to the changes that have

2:00:26happened over the course of the last 10

2:00:28years, all of those buildings, which are

2:00:30part of the legacy that we have and are

2:00:32very important to who we are and um what

2:00:35we have on site, um are being evaluated

2:00:38because we are looking to align

2:00:40ourselves with how we tell the full

2:00:42story of Neapville and the populations

2:00:45and the people that have lived here for

2:00:46almost 200 years.

2:00:50>> Okay. and and the 145,000 for the

2:00:54feasibility study like can you can you

2:00:57just elaborate on what you think that

2:00:59study

2:01:01>> will show or

2:01:03>> Sure.

2:01:03>> what will be done for 145,000.

2:01:06>> Sure. um that this fe feasibility study

2:01:10is based upon an already um plan that

2:01:14has been put forth by the neighbors

2:01:15heritage society and that plan was uh

2:01:19value actually higher than the 150,000

2:01:22and so based on what was paid from um

2:01:25the Neapville Heritage Society from the

2:01:28the private side of this public private

2:01:30partnership one of the important things

2:01:33is really to look at the interpretive

2:01:34plan and how do we tell the interpretive

2:01:38story. How do we interpret the story of

2:01:40the entirety of the city and um the rest

2:01:44of all of those 40 miles that make up

2:01:47the city? So based on some of the

2:01:50results from that, what we are looking

2:01:52to do is really to tell a much more full

2:01:56town and country story. Um and in order

2:01:59to do that there is and it doesn't

2:02:02really necessarily mean that we will um

2:02:04fully mo move the buildings and it may

2:02:07not even be feasible to move the

2:02:09buildings but before we move forward we

2:02:11need to know what we have underneath

2:02:14um what we have in terms of the

2:02:16buildings structurally to see whether or

2:02:18not they can withstand a move for

2:02:20example and then based on that we can

2:02:23develop the interpretive plan that would

2:02:25go along with the rest of the long site

2:02:27plan.

2:02:28>> Okay. Yeah. Thank you answer.

2:02:31>> Um and I have one more question. Um

2:02:33that's regarding the cameras that we

2:02:37hope to discuss more in detail in

2:02:39November. I just wanted to clarify by

2:02:46approving the 5.1 million. Are we

2:02:51um

2:02:54are we do we have room to make different

2:02:57decisions after afterwards? I mean like

2:03:01does this does this lock us in that

2:03:04amount?

2:03:05>> It it it absolutely does not. Um we plan

2:03:07on teing that uh back up on November. Um

2:03:11and uh you know we will do uh basically

2:03:14as council directs us. Okay.

2:03:16>> But but no obligation.

2:03:17>> Okay. Thank you.

2:03:19Councilman Wilson.

2:03:22>> Thank you.

2:03:23>> Thank you. Uh, as far as the

2:03:25transportation goes, is there any way

2:03:28we'd be able to I I just just from

2:03:31hearing feedback from the community and

2:03:33uh just with sort of with projects all

2:03:36over the

2:03:38city this year as far as Book Road and

2:03:41uh I mean, you know, a lot of this is

2:03:43out of our control here. uh you know 59

2:03:47and for various things have happened

2:03:49Washington and Ogden. Is there any way

2:03:51to

2:03:52delay or push back some of these

2:03:56projects here? Um you know I don't know

2:04:00the site south south 40 site development

2:04:04at 1303 and 59. I could see that being

2:04:10just a

2:04:12sort of a major inconvenience for people

2:04:14dealing with construction at 59 or I

2:04:17mean I don't know the the White Oak

2:04:19roadway improvement while not in a major

2:04:23street it's certainly a non-triv trivial

2:04:28amount of money.

2:04:31>> Um we certainly do um you know take into

2:04:34consideration um you know kind of the

2:04:37impacts overall across the city as we're

2:04:38planning out these projects and I know

2:04:40as um director Blendis mentioned we have

2:04:43a coordination meeting with um all of

2:04:44the operate electric water public works

2:04:47we try to make sure that we're closely

2:04:48coordinating um all of our projects this

2:04:51year I agree has not been a good look

2:04:52between the water link project as well

2:04:55as route 59 being under major

2:04:56construction by ID do um and then some

2:04:59of the other work going on so I do

2:05:01understand that there's been a lot of

2:05:02impact particularly south of 75th Street

2:05:04for a lot of our motoring public um in

2:05:07regards to some of these projects that

2:05:08you mentioned. So um we are actually

2:05:11already about to start um those uh

2:05:14improvements for the south 40 site

2:05:15development. So we've bid and award

2:05:17those uh awarded that project already.

2:05:19Um that is adding some turn lanes um

2:05:22into uh the lifetime and the Gorman

2:05:25development. So I'd like to see that

2:05:27continue on. Um I think that's going to

2:05:29be important for that project. Um 87

2:05:32street bridge um I know a question came

2:05:34up about that recently. Um, you know,

2:05:36that is a critical bridge improvement.

2:05:38Understanding the location of that is a

2:05:40little concerning given the continuing

2:05:41work on the water link. But we do think

2:05:43that when we start that project next

2:05:45year, once it goes to bid, I think we're

2:05:46assuming around January um with work

2:05:49starting next spring that a lot of the

2:05:51uh current impacts being felt by the

2:05:53waterlink project will have moved out of

2:05:55the area. So, we're less concerned um

2:05:58with that one. Um, you know, I I agree

2:06:01white oak um is a short stretch that'll

2:06:04be mostly impactful to those residents

2:06:06there. Um, you know, we've had a lot of

2:06:08engagement with those residents already

2:06:10and they're pretty excited about that

2:06:12project and seeing that upgrade. So, um,

2:06:15you know, definitely understand and I

2:06:16think as we continue to plan out our

2:06:18projects and look at our broader range,

2:06:19we'll definitely keep that in mind. But

2:06:21I think I think from a staff

2:06:22perspective, while we may feel some some

2:06:25feedback and some bumps with these

2:06:26things, we're fairly comfortable with

2:06:27where we have most of these projects

2:06:29positioned right now.

2:06:32Councilman White,

2:06:34>> thank you. Uh, similar question to

2:06:36Councilwoman Jane. Um, I know you I know

2:06:39you're only, you know, you hitting the

2:06:41major projects up here, but I'm looking

2:06:42at the transportation 41 million and

2:06:45what I'm seeing

2:06:4775,000. Okay. It's not 75,000 a lot of

2:06:51money, but doesn't seem to, you know,

2:06:55compute for 41 million. In fact, it's

2:06:57like less than what you're showing is

2:06:58less than half of what uh you're asking

2:07:01for. Any anything else would you would

2:07:04want to mention that we would we should

2:07:06know?

2:07:07>> Um you know, uh Tracy just flipped over

2:07:11to kind of like the other major

2:07:13projects. Um we and kind of much I guess

2:07:16we have a couple of themes here. Um we

2:07:19try to highlight um a project that is of

2:07:22importance to the community. Obviously,

2:07:24they're all important. Um, typically

2:07:25those are the highest dollar projects or

2:07:29um, you know, in the case of uh, you

2:07:30know, the target stoplight. Um, it's not

2:07:33a lot of money, but it's important to a

2:07:35lot of people and has been topical. Um,

2:07:38so we try to kind of pick and choose

2:07:40what we think people want to um, talk

2:07:43about. Um, we're certainly not trying to

2:07:44hide anything, but we can give you the,

2:07:46you know, the full entire listing before

2:07:49the next workshop.

2:07:50>> Okay. Thanks. What's also not included

2:07:52here is the annual street maintenance

2:07:54which is $12 million and that's just so

2:07:57routine. Um but that would account for a

2:07:59good chunk of that that's not on the

2:08:01slides.

2:08:01>> Okay. And that's what I'm Yeah, that

2:08:02would be

2:08:03>> and probably MFT projects. Um that's

2:08:05probably not We might have specific

2:08:08projects this year, but not the full

2:08:09plan.

2:08:10>> Okay. No, that that answers my question.

2:08:12Thank you, Councilwoman Gibson.

2:08:14>> Uh thank you, mayor. I wanted to go back

2:08:16to the neighborhood settlement

2:08:18feasibility study. um the 145k for this

2:08:22year and the neighbor settlement CIP

2:08:25which is in the agenda for next meet

2:08:28next week's settlement meeting there's

2:08:31an additional 223,000 for a feasibility

2:08:34study. So if we just speak, is that next

2:08:37year's expense necessary to make this

2:08:39year's expense

2:08:42useful?

2:08:47President Keller Bree, you want to come

2:08:48back.

2:09:02The short answer uh and if I need to

2:09:04introduce myself Rea to Mayo cal race

2:09:07for neighbor settlement um the short

2:09:09answer is we're not entirely sure what

2:09:11will be necessary in 2028.

2:09:14Um and of course we will back we will be

2:09:17back here um to gain that approval and

2:09:20to have certain more certain numbers at

2:09:22the time and then at that point we can

2:09:24also make the calculations. As you know,

2:09:26one of the things that uh the public

2:09:28private private partnership does um very

2:09:31successfully is that it comes together

2:09:33and actually joins in the cost. And so

2:09:36uh at this point we're not certain what

2:09:39that cost will be. We know that a

2:09:40feasibility would study will lead to

2:09:42other things and then with that the

2:09:45heritage society will come forward in

2:09:47terms of um what part it will contribute

2:09:50and I as I said previously in the same

2:09:52way that it has done here um the big

2:09:55lift uh for this in order for us to be

2:09:59able to know what we want to study was

2:10:02done with uh the funding from the

2:10:04Neighborville Heritage Society.

2:10:10Okay. So, the feasibility study is two

2:10:13separate studies. One for 145,000 and

2:10:16then in 28 a second part of the

2:10:18feasibility study for 223,000 or it's a

2:10:21larger feasibility study for 372,000.

2:10:24>> The feasibility study at this point

2:10:26doesn't doesn't include the entire 13

2:10:28acres and it doesn't um and it doesn't

2:10:31include the entirety of the long range

2:10:33plan. Um, part of what we're looking to

2:10:35do right now is to look to see whether

2:10:38or not the pieces that we want to do

2:10:40that would be necessary in the

2:10:42beginning, which is in the in the

2:10:43interpretive plan, are even feasible.

2:10:46So,

2:10:47>> okay. So, if we spent the 145,000 this

2:10:50year and next year we decided not to

2:10:52spend the additional 227, does that make

2:10:54the first 145,000 useless?

2:10:57>> Absolutely. it will be it it will

2:10:59nonetheless be useful because we will

2:11:01then know how to pivot the rest of the

2:11:03site and the rest of the study and the

2:11:05rest of the long range plan.

2:11:06>> Okay. So even if this expense is just at

2:11:08145,000 and next year is for gone.

2:11:11>> I'm sorry.

2:11:13>> So

2:11:15if just at I'm sorry because I said

2:11:17useless and you said absolutely. So I

2:11:18just wanted to make sure we

2:11:19>> Oh, I'm sorry. No, no, useful. I thought

2:11:21you said useful. I'm sorry.

2:11:22>> So it will still be useful even if we

2:11:24don't Yes. allocate the 227

2:11:27and then the following 600,000 for the

2:11:30design development. Will that be

2:11:32necessary as well or will this 145,000

2:11:36still be useful without

2:11:38>> Well, the only the only way we would be

2:11:39spending that is if we see the phys the

2:11:41feasibility study is something that is

2:11:43necessary and then we would move forward

2:11:45to build the actual uh full plan of that

2:11:48long range site plan.

2:11:50>> Okay. And then do we Oh, go ahead. and

2:11:52and if you're looking at the very long

2:11:55range plan of what we would um feasibly

2:11:59consider, it would include another

2:12:01building, but at this point in time, we

2:12:04don't we're not even certain that we can

2:12:06do it with what we have underneath. So,

2:12:09>> okay. And do we know the shelf life of

2:12:11feasibility plans?

2:12:12>> I'm sorry.

2:12:13>> Do we know the shelf life of these

2:12:14plans? Say we do these plans and then

2:12:17decide it's a project we want to tackle

2:12:19in five years. Will we need to, you

2:12:20know, much like with the downtown

2:12:22parking garage, will we need to redo

2:12:24them in five years if we decide to

2:12:25postpone the larger project?

2:12:27>> I don't think that this part of what

2:12:28we're looking to fund would need to be

2:12:30redone. As I said, um those buildings

2:12:33were put there some 40ome years ago. And

2:12:37so knowing what is underneath and

2:12:40knowing the the actual um uh let's say

2:12:46sturdiness of the structures etc. uh is

2:12:48something that is necessary anyway long

2:12:50term.

2:12:51>> Okay. Okay. Thank you. That's really

2:12:53helpful. And then just, you know, to

2:12:55staff, it it feels to me like the

2:12:57feasibility study is spread out over two

2:12:59years. So knowing that when we're

2:13:02looking at 145, it's kind of paired with

2:13:04an additional 227 in the following year

2:13:07would be helpful. We're making the

2:13:09decisions on.

2:13:12>> Thank you.

2:13:13>> Thanks,

2:13:14>> Councilman McBroom.

2:13:16Thank [clears throat] you, mayor. Uh,

2:13:19deputy director Morocco is, uh, is it

2:13:22possible to get like a project by

2:13:24project breakdown,

2:13:27and do you think that would be useful

2:13:28for us to see? Um, and I I assume these

2:13:32numbers come from some spreadsheet you

2:13:33have and uh, and and and maybe it's an

2:13:36overwhelming amount of information, but

2:13:39um,

2:13:40>> is that something that council could

2:13:42>> For sure. we could um we're just kind of

2:13:43going off of prior years just to just

2:13:46provide the highlights. Um and in the

2:13:48full budget book that'll be available on

2:13:49October 9th, we'll have all the projects

2:13:52listed in that book towards the end. Um

2:13:55and they all they all tie out to the

2:13:57categories that you see here. Okay.

2:13:59>> Um but you know for next year for the

2:14:01capital workshop if you want to see the

2:14:03numbers tied out by category um we could

2:14:06definitely do that as well and and for

2:14:08the second and third workshops too if

2:14:09that's more helpful.

2:14:10>> Yeah. Yeah. The reason why I asked and

2:14:11going through this for several years

2:14:13now, I you know, the CIP sometimes can

2:14:15have be hard for people to get their

2:14:16arms around because it's not it's not

2:14:18like the operating budget where it's

2:14:20like we have to pay for these things.

2:14:22It's meant to be flexible and and high

2:14:24level and we may not spend all this

2:14:26money and um we may go through an

2:14:28economic uh recession and and have to um

2:14:31but you know at the same time um you

2:14:34know kind of going like councilwoman

2:14:36Jane council and white sometimes we

2:14:38[clears throat] look at these numbers

2:14:39and it's it's like what am I missing

2:14:41here? Um you know here's what we think

2:14:44is coming in uh and this is what we

2:14:47think we're going to spend it on. Uh,

2:14:48and it sometimes seems like we're

2:14:51missing a lot of pieces here. Um,

2:14:53>> I'm an account and I like to tie out the

2:14:54numbers, too. So, I get it. I like to

2:14:56make sure they all add up. So,

2:14:57>> and is it correct there's four 40

2:14:59million or 50 million that's unfunded

2:15:01out of the 211? Is that right?

2:15:04[clears throat]

2:15:05>> What was that?

2:15:06>> Is there a portion of the of the capital

2:15:08the CIP that's that's unfunded like that

2:15:11we don't

2:15:12>> we don't see revenue for or that we're

2:15:13going to have to borrow for? That's

2:15:15where we have the issuances plugged in

2:15:17for the utility funds. Um we're still

2:15:20kind of finalizing

2:15:22the funding for capital projects MFTt.

2:15:26Um we in the budget book we will have

2:15:30when we finalize the numbers there is a

2:15:31cash balance summary which would show if

2:15:34we you know have any funding deficits

2:15:36there. Um that's provided every year.

2:15:39>> Okay.

2:15:39>> Um but we're still finalizing tweaking

2:15:41that. Thank you, Councilman Wilson.

2:15:47>> Uh, hit the button again. Um, to turn

2:15:50the mic microphone off. Um, yeah. No, I

2:15:54guess to Councilman McGroom's point that

2:15:55I' I'd certainly appreciate it. Um, I

2:15:58guess to I guess talk about the

2:16:00transportation point again. Um, I know

2:16:03the roadway improvements, I guess I

2:16:05always forget about those until they

2:16:06happen. Um, but I'd certainly like to

2:16:09look at them more in detail just

2:16:13uh sort of to beat the dead horse. But I

2:16:17know I've complained about the roadways

2:16:20projects in the past and uh you know we

2:16:23don't typically obviously get a whole

2:16:25lot of bids shouldn't say obviously but

2:16:27we don't get many bids for them but and

2:16:30uh you know

2:16:33certainly to credit you guys the roads

2:16:35here are much better than other cities.

2:16:38uh but at the same time if we could try

2:16:41to you know again uh alleviate some of

2:16:45the construction especially this year.

2:16:46So thank you.

2:16:51That's all for the questions on this

2:16:52one.

2:17:01>> All right, that would be back to me,

2:17:03mayor. Um next up, Riverwalk uh where we

2:17:06have 7.6 6 million in capital investment

2:17:08planned. Uh, of this amount, 6.8 million

2:17:11is being allocated to the South

2:17:13Extension and Hillside Gateway projects.

2:17:15Um, the Riverwalk Foundation, uh, as Mr.

2:17:18Kennedy noted, was able to secure

2:17:20external funding, uh, of roughly $1.5

2:17:23million for the project. Um, although

2:17:25the proposed budget includes a full $6.8

2:17:278 million for the south extension and

2:17:29hillside gateway. Uh the commission has

2:17:32begun discussions with uh the Riverwalk

2:17:34consultant about what a reduced scope

2:17:37and associated costs may look like. Um

2:17:40as Mr. Kenny said, you know, kind of

2:17:42originally the thought was that that

2:17:44south extension Absson Hillside would be

2:17:47about three million and they raised one

2:17:49and a half and you know leaving the

2:17:51other million and half of the city. Um

2:17:54that number has increased significantly.

2:17:56So, uh, erra will be looking at that and

2:17:59presenting their results, uh, to the

2:18:01Riverwalk consultant. Um, as a result of

2:18:05that and their recommendation, uh, a

2:18:07revised estimate for this project could

2:18:09be put into the budget before coming

2:18:10back due for final approval. Um, the

2:18:13remaining $750,000 spread across a

2:18:16number of projects. uh completion of 430

2:18:18South Washington uh roof replacement on

2:18:21uh Webster Street covered bridge uh and

2:18:24replacement of uh Rotary Hill irrigation

2:18:27system.

2:18:33All right, next up, uh downtown parking.

2:18:36Um kind of a busy slide. Uh provides a

2:18:38five-year view of the proposed downtown

2:18:40capital investments which total

2:18:42approximately $62.1 million. Um would

2:18:46like to would like to move back to

2:18:49something that Councilman McBrroom said,

2:18:50"Hey, you know what? We haven't been

2:18:51talking about municipal deck." Um you

2:18:53know, first I heard about it was a month

2:18:55ago. That's that's absolutely correct.

2:18:57Um in uh last year's CIP, uh we had

2:19:01about 4 million in for uh FY28

2:19:06and 29.

2:19:08Um when we looked at all of the downtown

2:19:10projects, uh it it became apparent to

2:19:13say, "Hey, you know what? we can't have

2:19:15municipal center deck out uh at any time

2:19:18while the Nicholls parking deck um is

2:19:22going to be out or down. Um so that's

2:19:25when kind of like the three um big

2:19:28competing projects, streetscape, nickels

2:19:31deck, and city deck. That's when we kind

2:19:34of had to make the decision to say, "All

2:19:35right, how can we sequence these?" Um

2:19:38you know streetscape plus uh city

2:19:42parking deck works. Um streetscape plus

2:19:46nickels parking deck does not. Um too

2:19:48much disruption. Uh nickels parking deck

2:19:51uh plus municipal parking deck does not

2:19:54because taking too many uh slots out of

2:19:56service. Um so we went uh you know

2:20:00through the um exercise of sequencing

2:20:02these. Um we uh tried to minimize the

2:20:07kind of impact on the downtown. Um and

2:20:11you know looking at the three major ones

2:20:14um you know putting the municipal center

2:20:16deck um uh and then um the uh

2:20:21streetscape for Jefferson and Maine uh

2:20:24running those concurrently uh was able

2:20:27to knock those two out um uh with uh

2:20:30without having what we believe to be

2:20:32significant disruption before moving on

2:20:35to the Nicholls parking deck. Um we

2:20:38thought this would be a better

2:20:39opportunity to balance the impact of the

2:20:42work on downtown businesses, residents

2:20:43and visitors. Uh and also um considering

2:20:47cash flow and capacity city staff. Um

2:20:50streetscape projects have already been

2:20:52underway. Um they have established

2:20:54momentum uh and you know this this would

2:20:57allow us to continue that at least along

2:20:59the Jefferson piece. um provide

2:21:01additional time to evaluate the

2:21:03long-term downtown parking strategy and

2:21:06design of the Nichols parking facility

2:21:08uh which is the largest investment of

2:21:10these. Um and uh the current proposed

2:21:13schedule for Nickels Deck would have

2:21:15concept design and engineering taking

2:21:17place in 27 through 30 followed by

2:21:20approximately 36 million in construction

2:21:23happening in 31 and 32. Um

2:21:27you know uh you might be wondering um

2:21:30you know why would we go back to look at

2:21:31design if we already have an approved

2:21:32concept you know as we spoke about this

2:21:35before um uh you know the the updates to

2:21:39the old plan um were very significant I

2:21:41know there's been a lot of talk about

2:21:42kind of shelf life of plans uh and you

2:21:45can get a few years out of those um we

2:21:47have proven that uh you can't get 19

2:21:50years out of them um just because uh of

2:21:55things that we don't control such as

2:21:57international building code. Um,

2:22:00from a parking standpoint,

2:22:03we also have additional data that's

2:22:05being analyzed uh that can help with the

2:22:07downtown parking discussion.

2:22:10Uh, one, we got the 2026 citizen survey

2:22:13showed a reasonable level of

2:22:14satisfaction. Um our TED group uh also

2:22:18conducted a separate parking uh downtown

2:22:20parking survey um in July and those

2:22:24results are going to be expected in

2:22:25October, November and that's going to be

2:22:27another important data data point um for

2:22:29our planning purposes.

2:22:32Um you know we talked about you know the

2:22:34timing with this parking deck. Um you

2:22:36know why is it a little bit of a

2:22:37surprise? Well uh because within the

2:22:40last month it was moved up by a year. Um

2:22:44and you know we usually talk about kind

2:22:46of the upcoming year. So wanted to

2:22:47explain that um you know temporarily

2:22:50temporarily closing spots here um in uh

2:22:55on the south side of the river um impact

2:22:57what happens on the north as well as

2:22:58vice versa. Um so uh you know staff felt

2:23:02it best to do the Jefferson Streetscape

2:23:05alongside the m municipal um and um then

2:23:09you know pushing out nickels

2:23:11um

2:23:13uh let's see um the other you know the

2:23:17other the other factor that you know we

2:23:19believe we can work out with this uh but

2:23:21certainly um you know if council uh

2:23:25would like us to do something different

2:23:26we can absolutely accommodate that. um

2:23:29is that this works with kind of like uh

2:23:31staff timing um and staff involvement as

2:23:34well, trying to kind of spread that out.

2:23:36Um you know, it wasn't our intent to

2:23:37delay projects uh because we want to get

2:23:40them all done. Um we just don't want to

2:23:44overburden

2:23:46um the downtown uh and also um you know,

2:23:49city staff with too many projects at the

2:23:51same time.

2:23:53Um, now if that didn't completely

2:23:54confuse you, I was going to turn over to

2:23:57continue the discussion and have Tracy

2:23:59talk about uh the actual funding of the

2:24:02downtown projects.

2:24:07>> Thanks, Doug. Uh, this next slide shows

2:24:09how these proposed parking deck

2:24:10projects, just the parking deck

2:24:12projects, I'm not streetscape, um, are

2:24:15funded and how those funds are

2:24:16allocated, uh, to be transparent. In a

2:24:19few minutes, uh, we will talk about the

2:24:21funding sources for downtown parking,

2:24:23uh, which includes home roll sales tax

2:24:25and the downtown food and beverage. The

2:24:27project shown here represent

2:24:28approximately $48.4 million in total

2:24:31costs between 2027 and 2032. Of that

2:24:35amount, approximately $30.7 million is

2:24:38proposed to come from the downtown

2:24:39parking fund and $17.7 million from the

2:24:42capital projects fund. Municipal Center

2:24:45deck rehabilitation is budgeted at $9

2:24:47million. The proposed split is 50%

2:24:50downtown parking and 50% capital

2:24:52projects, which equates to $4.5 million

2:24:56allocated to each fund. The 50/50

2:24:58allocation reflects that city hall,

2:25:00neighbor settlement, and library

2:25:01employees use this deck heavily during

2:25:03the week. This allocation is staff's

2:25:06recommendation at this time. When the

2:25:08project comes back to city council, we

2:25:09can re-evaluate the proposed 50/50

2:25:12split. For the Nicholls Library parking

2:25:15facility, we propose allocating

2:25:16twothirds from the downtown parking fund

2:25:18and one-third from the capital projects

2:25:20fund. This equates to a $25.1 million

2:25:24from the downtown parking fund and $

2:25:25122.6 million from the capital projects

2:25:27fund. Not included on this slide, but

2:25:30important to note is that the water

2:25:32street deck was construct was

2:25:33constructed as part of the larger water

2:25:36street redevelopment. The parking deck

2:25:38was funded through various sources

2:25:40including water street tiff dollars

2:25:41downtown parking fund as well as a

2:25:43public private partnership.

2:25:46The downtown parking deck maintenance

2:25:48budget um is budgeted at se sorry at

2:25:50$1.7 million over the next several

2:25:53years. The proposed allocation is also

2:25:55twothirds downtown parking and one-third

2:25:58capital projects which equates to an

2:26:00allocation of $1.1 million and $600,000

2:26:03respectively.

2:26:04The CIP also includes one elevator

2:26:07maintenance project for the parking deck

2:26:08at a cost of $40,000.

2:26:11The proposed split is also 2/3 downtown

2:26:13parking and one-third capital projects.

2:26:17And with that, we'll answer questions on

2:26:18this section.

2:26:19>> Council Hzar. Thank you, Mayor. Um,

2:26:22first of all, I'm going to ask Mr.

2:26:24Kennedy to come back up. And Ms. LLO, I

2:26:27was hoping that you could put up his.

2:26:29Um, actually, you know what? I'm gonna

2:26:32ask Doug if you could go back uh to the

2:26:35Riverwalk slide and then as soon as we

2:26:37get through that I wanted to um go to

2:26:39Mr. Kennedy's slides. Okay. So, one

2:26:42thing I I wanted to make sure is really

2:26:44clear is um a few years ago there was

2:26:48discussion of the um

2:26:52private donations or outside donations

2:26:54being about half of a $3 million spend

2:26:56on on the trail. One thing to be really

2:26:59clear about is that was the trail.

2:27:01What's being talked about here is two

2:27:03separate projects with this which is a

2:27:05south extension, the trail and the

2:27:07hillside gateway. So if you factor the

2:27:09gateway out of that, the delta there is

2:27:11not nearly as extreme as it it would

2:27:14seem. So it didn't grow from 3 to 6.8

2:27:16million. This is mixing an apple and an

2:27:19orange. And I see that director Kger's

2:27:20nodding. So I just want to make sure

2:27:22that's out there. Um and then with that,

2:27:26I was hoping Miss Oh, she could put up

2:27:28the slides Mr. Kennedy had.

2:27:39All right. And would you mind just

2:27:40flipping through? I think um I think Mr.

2:27:42Kennedy, you had slide one up there, but

2:27:44I'm not sure if if you got to click

2:27:47through any of them.

2:27:49You know, just maybe three seconds of

2:27:50slide would be good.

2:27:58Yeah, sure. Hello everybody. Thank you

2:28:00for Ian for the question and I really

2:28:02rushed through. I I felt the pressure of

2:28:04that three minutes so didn't really say

2:28:06uh hello to everybody last time but

2:28:09>> Sure.

2:28:09>> Yeah. So,

2:28:10>> and just as background um Pat was the

2:28:14chair of the Riverwalk Commission, great

2:28:15chair um for a number of years. Um I

2:28:20have been on the commission since um

2:28:24the beginning of my time as a council

2:28:25member and the you know the concern I

2:28:29really want to bring up tonight is with

2:28:31regard to process.

2:28:33Um so when first of all Mr. Kenny when

2:28:38did this strip of land uh between Edward

2:28:41Hospital roughly and um Dunkin Donuts

2:28:45like when did that become land for the

2:28:48riverwalk? Could you repeat that?

2:28:51The boundary for the river walk to my

2:28:53understanding was extended in 2015 as a

2:28:55subject

2:28:57is when the planning for this starts,

2:28:59right? And then um can you flip to the

2:29:02slide that shows the the overhead view

2:29:04of the map?

2:29:05>> Okay. So, if you can see the the Dunkin

2:29:09Donuts on the right side of the screen.

2:29:11Okay. Correct me if I'm wrong, but

2:29:13Duncan invested funds in building a

2:29:16retaining wall with that riverwalk

2:29:18trail. you know, basically the city made

2:29:20them do that for the Riverwalk. Correct.

2:29:24>> That's right. Okay.

2:29:25>> So, just to be clear, we're not just

2:29:27talking about

2:29:29funds that Edward has invested in this

2:29:31or that uh Representative Yang Roar has

2:29:35secured for the city, but private

2:29:37businesses relying on the city's um

2:29:41mandate also invested funds in this

2:29:43Riverwalk extension. So, I just want to

2:29:44make sure you know that that is clear.

2:29:48um as as far as process and you can

2:29:50correct me if I you know wrong on any of

2:29:52these dates. It's been a long time on

2:29:54this commission but in 2022 and 2023

2:29:59our consultants, architects, civil

2:30:01engineers came together and we had

2:30:04months if not years of refinements to

2:30:08this map that came up with this final

2:30:09alignment. And those refinements

2:30:11included making sure that the lighting

2:30:14was not um placed in a way that would um

2:30:19be injurous to neighboring residences.

2:30:22Uh the rules governing the path. Um ADA

2:30:25accessibility was, you know, fixed

2:30:28several times. Um there's a bike path.

2:30:33Uh, you know, one thing to note here is

2:30:35this is a safety project because

2:30:37currently if you've walked this, I don't

2:30:38recommend it, but if you've walked this,

2:30:41you know, the sidewalk is right up

2:30:42against Washington Street. You can

2:30:44literally feel cars whooshing by if

2:30:46you're on a a bike or a, you know, or or

2:30:49walking. There has been a fatality at

2:30:52Martin and Hills and um Washington in

2:30:54the last 20 years. Um so anyway all of

2:30:58these things were discussed ad nauseium

2:31:01right for months and months and months

2:31:02and actually years. Um and we finally

2:31:05landed on this proposal which just

2:31:07incorporated the feedback of so many

2:31:09residents and the

2:31:14the project was ready to go in 23 with a

2:31:17bid in 24 and a build in 25. It was

2:31:20bumped to 2024.

2:31:22Then it was bumped to 2025.

2:31:25um now bumped to you know the discussion

2:31:29that we're having now and um as you

2:31:32mentioned earlier Edward

2:31:35gave their $800,000 check with the

2:31:37understanding that this gateway would

2:31:39open up in conjunction with the opening

2:31:41of their heart facility um which by the

2:31:43way has passed and um

2:31:48Representative Yang Yangor I called her

2:31:50office today um it was news to her that

2:31:53we were talking about considering

2:31:55different plans uh for this path. Um I

2:31:58bring all this up to say a whole lot of

2:32:00stakeholders invested

2:32:02really years in the development of this

2:32:04path. Um I heard um a comment I think

2:32:10director Kger um city manager Kger said

2:32:12that the commission is looking into

2:32:14other options. To be clear, the last

2:32:17commission meeting was on September

2:32:20the 8th and this was or the 9th and this

2:32:23was not even on the table at that

2:32:25meeting. As late as August, I had asked

2:32:28city staff, are there any potential cuts

2:32:30to the budget uh regarding Riverwalk?

2:32:33Answer was no. Had we known this, the

2:32:36commission could have at least started

2:32:37discussions. So what we're talking about

2:32:40when we're we're talking about going

2:32:42back to a engineering consultant that

2:32:45spent years developing this to come to

2:32:48us in a month with some kind of proposed

2:32:51reduction

2:32:52um to to shave off a million dollars is

2:32:55in my opinion scrapping you know the

2:32:58many many many pieces of input that went

2:33:00into this. And if this was going to be

2:33:03an issue this should have been raised

2:33:06frankly years ago. Um, and many

2:33:08objections of this project were raised.

2:33:10Um, and many of the the, you know,

2:33:13criticisms of it were incorporated in

2:33:15the final design. Um, so all of that to

2:33:18say, I um, I think it's Well, you're a

2:33:22civil engineer, so I'll ask you, Mr.

2:33:24Kennedy, do you think it is realistic to

2:33:26think any kind of proposal is going to

2:33:29come back to us that's vetted uh, in the

2:33:31next two months that's that's going to

2:33:33reduce the cost of this? Uh first just

2:33:36for clarification for the record um

2:33:40Janet Yangwar's uh contribution was 800

2:33:42and the hospital was 700.

2:33:44>> Apologize. Want to

2:33:45>> we flip those back and forth a little

2:33:47bit. Um

2:33:48>> relative to the potential phasing of the

2:33:51project. Um I'm all for having

2:33:54consultants. We have great consultants

2:33:55for the Riverwalk. Uh and the commission

2:33:57does a great job of looking at all the

2:33:59alternatives. I'm, you know, as an

2:34:01engineer, I'm always all for looking at

2:34:04alternatives for this particular

2:34:07stretch. You could even, you know,

2:34:09visually look at it on the screen. If

2:34:11the commitment is to connect the

2:34:13Riverwalk at that point north of

2:34:17Hillside, bring it under the bridge

2:34:18behind the Dunkin Donuts and connect it

2:34:21to the hospital. Um, that is you you can

2:34:25visually see that's going to be 80% of

2:34:27the budget. if if not if not more the

2:34:30basic infrastructure of putting a path

2:34:32in and connecting it. the cost of the

2:34:36amenities and benches and landscaping

2:34:38and those other things tend to be

2:34:40smaller portions of a project like this

2:34:43and um you know so I I personally feel

2:34:47like if we're going to follow through

2:34:49and have a have a project once you defer

2:34:53that and spread that over two years or

2:34:55three years or multiple phases we've

2:34:57already seen the impact that inflation

2:34:59can have on that but now you're looking

2:35:01at multiple mobilizations for smaller

2:35:04portions of that work. So, um I'm

2:35:08curious to see what comes back. If

2:35:10there's phasing that though, though that

2:35:13doesn't connect one end to the other and

2:35:15build half of it, I don't I don't really

2:35:17know that that fulfills the intent of

2:35:19the project.

2:35:20>> Thank you. I I appreciate that. And and

2:35:22you know,

2:35:24also I would add if it's hey, let's cut

2:35:27the ADA ADA accessibility or let's cut

2:35:30the safety um you know, with the

2:35:33distance to Washington or let's no

2:35:35longer collect the hospital or let's

2:35:38waste the improvements that Duncan did

2:35:40in reliance on the city. I just I just

2:35:42don't see any of those as as good

2:35:44options. So, thank you, Mayor.

2:35:46Councilman Kelly.

2:35:47>> Thank you, Mayor. Um, couple of

2:35:50different topics I'd like to ask about

2:35:52and talk about. I guess maybe I'll start

2:35:53with the Riverwalk since we're on it

2:35:55right now. Um, couple of questions. Uh,

2:35:59one for Mr. Kennedy, one for staff. When

2:36:02you spoke in public form, I think,

2:36:03unless I misheard, I think I heard you

2:36:05say that we are asking for the full

2:36:08project to move forward. And I just want

2:36:10to know who is we. Are you are you on

2:36:12the commission still? Is that just you?

2:36:14Is

2:36:14>> I am not on the commission. I I guess

2:36:16>> is that the royal we or who? It is

2:36:18mostly me. I'm part of a fundraising

2:36:20group, but um no, I I'll only speak on

2:36:23behalf of myself tonight. Thank you for

2:36:25noticing that.

2:36:25>> I just want to be sure. And then for

2:36:27staff, I guess where So what I heard

2:36:29from Councilman Holleshower just now was

2:36:31that this was a potential well a a

2:36:36variety of alternatives was not in front

2:36:38of commission at their most recent

2:36:40meeting or it sounds like at any point.

2:36:41So, where I'm trying to level set in my

2:36:44head, where did and I don't even see it

2:36:46on the slide, but in your presentation

2:36:48you mentioned the consultant potentially

2:36:51bringing back alternatives. Who is it

2:36:53that asked for that to happen?

2:36:56>> Yeah. Um, uh, Andy probably will be able

2:36:59to better handle that. Our Riverwalk

2:37:02rep.

2:37:04>> Thanks, Doug. Uh, sure. So, uh, you

2:37:06know, the the project right now as it's

2:37:08budgeted is for the, you know, the full

2:37:10improvement, uh, you know, in in the

2:37:11CIP. Uh, there's been some discussions

2:37:13with the, uh, commission chair, uh, just

2:37:16about the the cost of the project. Um,

2:37:19we in the, you know, intense phase of

2:37:21the engineering over the last couple of

2:37:23months. And, uh, you know, the most

2:37:26recent estimate that we got was about a

2:37:28million dollars more than, uh, what the

2:37:30current budget is. uh mostly due to um

2:37:33some of the structural elements being uh

2:37:35more substantial than were originally

2:37:37anticipated. So I think that just

2:37:39spurred on the discussion about you know

2:37:42uh what the uh you know right approaches

2:37:45and and how we should move forward. So

2:37:47um like I said as of right now the full

2:37:51u amount for the entire project is

2:37:53included in the budget. Um and the

2:37:55intent was that we would move forward to

2:37:58bid the project uh you know in the next

2:38:00month or two. Okay,

2:38:02I I think that answers it. Other than I

2:38:05heard that there's been some discussion

2:38:06with the chair. So I guess what I'm

2:38:08maybe my last question for now is has

2:38:11the commission our advisory commission

2:38:13as a body have they taken any sort of a

2:38:17vote to either recommend that we do the

2:38:20full project or that we should seek

2:38:22alternatives or I guess where are they

2:38:25as a commission?

2:38:26>> Mr. Kger. Um yeah, and uh Deputy

2:38:31Director Hines probably helped me out

2:38:32with this. Um I don't believe that the

2:38:36commission as a whole um took uh any

2:38:41votes to kind of like look at the

2:38:43options. Um I don't know if at their

2:38:47last meeting they said, "Hey, we um I

2:38:51don't know if they took a vote um to

2:38:52say, "Hey, we should put the whole 6.8

2:38:54million forward." But you probably know

2:38:56better. No, at this point the commission

2:38:59uh has not reviewed any other options.

2:39:01Um we did ask the consultant to take a

2:39:03look at that and so we would bring that

2:39:05to you know an upcoming commission

2:39:07meeting to u get the commission's

2:39:10feedback.

2:39:11>> Okay. And will that happen before like I

2:39:13guess I'm try trying to figure out how

2:39:15this is going to play out for us then.

2:39:16Is this going to be part of the

2:39:18decision-making matrix at workshop three

2:39:20and we'll have input from the commission

2:39:22between now and then or what is your

2:39:25plan on what we're going to do with

2:39:26this?

2:39:28>> Uh yeah, I I I don't know if um uh

2:39:33ERRA is going to be done with their

2:39:35analysis. Um I No, wait. You thought

2:39:38they would be done prior to workshop

2:39:39three. Um but I mean as it stands right

2:39:42now we have the full um 6.8 8 million um

2:39:46in the budget.

2:39:48>> Okay. Okay. Uh and then if I could,

2:39:51mayor, on a different topic.

2:39:53>> Um so, some some questions and thoughts

2:39:55on the Nicholls library deck. Um and

2:39:59there was some discussion early on in

2:40:00public forum and I like the mayor, I I

2:40:02kind of held my my thoughts. I want to

2:40:04see what staff had to say in in this

2:40:06chart, which was helpful to see how

2:40:08everything's kind of fitting together.

2:40:10Um you know, it's interesting. That's a

2:40:13much larger project now than the capes.

2:40:15Only a few years ago, the streetscapes

2:40:16were kind of the the monster project and

2:40:19the question was whether we would do

2:40:20them or not and and when. And and I'm

2:40:23glad that we have and that we're still

2:40:24going to finish up on those. So, I think

2:40:26we certainly are certainly are investing

2:40:28a significant amount of money in the

2:40:29downtown through uh through the

2:40:31streetscapes and and now our municipal

2:40:33deck. Um for me, the question on the

2:40:36Nickels deck is less about the timing

2:40:38and more uh whether we should do it or

2:40:41not. And and I heard mostly posit

2:40:44feedback, I guess, from council during

2:40:46public forum, but for what it's worth,

2:40:48I'll I'll give maybe the contrarian view

2:40:50on it. And and I'll do that saying that

2:40:52I'm I've been the liaison on DAC for the

2:40:55whole time I've been on council and and

2:40:56they've been talking about this deck for

2:40:58pretty much the whole time I've been on

2:40:59council for for many years now. And and

2:41:02I've heard the the pleas for it from the

2:41:04business owners and the property owners

2:41:06and and I understand it certainly uh and

2:41:09I'm sensitive to those um requests.

2:41:13My thought is for and I've got a lot of

2:41:15thoughts on it, but my overarching

2:41:16thought is for almost a $40 million

2:41:19project,

2:41:21it's it really should be something that

2:41:23we decide one way or the other based on

2:41:25the data and the real need of it. And

2:41:28and [snorts] Mr. Creger mentioned, you

2:41:30know, that we've got one data, really

2:41:33only one data point so far, I would

2:41:35argue, which is the city survey, uh,

2:41:37that came in with, I believe it was 12%

2:41:40said it was poor, and 88% said it was

2:41:44better, either excellent, good, or or

2:41:45fair, I think, were the three other

2:41:47categories. So when you've got 88%

2:41:50saying it's it's I would argue okay at

2:41:53least if not better than that um to

2:41:57invest 37 million that seems like seems

2:41:59like an awful lot. Um I'll say just from

2:42:02a when you walk around town I really

2:42:05never see the decks that we've already

2:42:07got being full. Um but that's just

2:42:10visual not data, right? I I'm very

2:42:12curious to see what staff's data will

2:42:14show. I've been told and it was just

2:42:16mentioned earlier that we're going to

2:42:18have some actual data and information

2:42:21regarding the usage rates on the decks

2:42:23that we have. For one, I'll be very

2:42:25surprised if it show [clears throat] if

2:42:28it shows that they're ever full even on

2:42:31the busiest days. I I just don't think

2:42:33that they are. Um and I think that's for

2:42:35a few reasons. One, I'm just not sure

2:42:37there's the need. And two, people don't

2:42:39love parking in decks. I think we hear

2:42:40that all the time. I think that's one

2:42:42reason the Nickels lot is as popular as

2:42:45it is right now and so hard to get a

2:42:47spot because people will circle. We all

2:42:49hear people circle for the surface lot

2:42:51parking spaces and and don't want to go

2:42:53to the top levels of the decks. Um so to

2:42:56replace it with a deck,

2:42:59I I just don't really see it. What we've

2:43:01heard is that there's a need, but we

2:43:04we've also heard that downtown visitors

2:43:06are at the most they've ever been over

2:43:08the past few years. It continues to grow

2:43:10and grow. certainly doesn't seem like

2:43:12parking's been an impediment to that. Uh

2:43:15our food and beverage taxes continue to

2:43:17grow. Um and when we think about the

2:43:20future, I just don't know that I see

2:43:24trying to make downtown a more car

2:43:26ccentric area as what we necessarily

2:43:29want to be doing. and um how we've grown

2:43:33but the parking satisfaction is higher

2:43:35than it used to be is is kind of an open

2:43:37question but one one thought and it's

2:43:39just a thought but you know we approved

2:43:41happy hour to come back to Neighborville

2:43:43in part on the basis that we've got much

2:43:45more ride share um and maybe that's a

2:43:48piece of this is that you've got more

2:43:49ride share more cart more car pooling

2:43:51more walking biking there may not be I

2:43:55think hey we're a downtown suburban

2:43:57destination there's always going to be

2:43:58people that want to drive here.

2:44:00Obviously, cars aren't going away. Uh

2:44:03but directionally, it seems like people

2:44:04are driving and parking uh a car on

2:44:08their own less than they used to be. Um

2:44:11so, I'm I'm just not there on this,

2:44:14especially considering the cost. And

2:44:15granted, it continues to go up. If

2:44:17people are committed to wanting to do

2:44:18it, then sure, it probably should be

2:44:20done sooner rather than later because it

2:44:22will cost less. And for what it's worth,

2:44:24if a majority council wants to do it, I

2:44:26hope that you do it in the way that's as

2:44:29visually pleasing as it could be done, I

2:44:31would not support, let's scale it back

2:44:34or make it taller, get rid of the pocket

2:44:36park because it might save some money. I

2:44:38would say if we're going to do it, we

2:44:39should do it right. I I for one would

2:44:41say yes, include the pocket park,

2:44:42include the bells and whistles on the

2:44:44outside, make it look nice. uh because

2:44:46that is a concern I have too that you're

2:44:48really going to change the character of

2:44:49the downtown if if you build this uh in

2:44:52my opinion not for the better. So um so

2:44:55that's that's my position. I I just

2:44:57don't think the need has been proven and

2:44:59so to just kind of go along with it

2:45:01because it's been in part of the

2:45:02discussion for a long time for $40

2:45:04million if we don't meet it. Um I I'm

2:45:08just not there. And so my question I

2:45:10guess is process-wise what is staff view

2:45:13for this? Will this be a decision matrix

2:45:17at the final uh budget workshop? Is it

2:45:20going to be a standalone agenda item at

2:45:22some point? You know, I I would argue we

2:45:24haven't really had a full presentation

2:45:27from staff and and if and when we do, it

2:45:29should certainly include that data um

2:45:31that staff is accumulating. So, I mean,

2:45:32is that going to be an agenda item

2:45:34before the budget might get approved or

2:45:37into next year? I mean, there's only

2:45:39100,000, but I also think it would be

2:45:41helpful for both the business community

2:45:43and residents to know if we're going to

2:45:44do this or not. I for me, I I wouldn't

2:45:47even want to do the 100,000, to be

2:45:49honest, if we weren't going to do it. If

2:45:51the council's committed to doing it,

2:45:52then then fine. Uh but I don't want to

2:45:55just keep dragging it out and say,

2:45:56"Well, we'll talk about it in five

2:45:58years. We'll do 100,000 now." I think at

2:46:01some point some council's got to decide

2:46:02whether we're going to do this big

2:46:03picture wise or not. But I don't know

2:46:05what your plan is for the near term if

2:46:07we're going to make that decision.

2:46:12>> So, we won't have um the results of the

2:46:16data collection that we completed in

2:46:18July ready as part of this budget

2:46:20process in order to present that. Um I I

2:46:23would anticipate that that's going to be

2:46:25coming, you know, kind of after we have

2:46:27our next workshop. So, you know, we're

2:46:28targeting October, it might be November.

2:46:31Um it's including um development

2:46:33projections, customer service data, as

2:46:36well as our parking occupancy data. So,

2:46:37it's a lot to pull together. Um and it

2:46:41in the past we've brought a pretty

2:46:42substantial report. I think when you

2:46:44know the last time we actually brought a

2:46:45full report was in 2015 and I I actually

2:46:48don't think we even brought it until

2:46:49around January or November of the

2:46:50following year. So, we definitely are

2:46:51trying to get this one to you faster. I

2:46:53think a couple of um you know kind of

2:46:56key points with the schedule that we

2:46:58have. You know, we are deep in the

2:46:59design on the streetscape with the

2:47:02intent of constructing it next year.

2:47:04That hasn't changed. Um, you know, I

2:47:07think public works is is well on the way

2:47:09to getting ready for the municipal

2:47:10center um deck rehab. So, you know, I

2:47:13think there are pieces of this plan that

2:47:15can um you know, move forward as planned

2:47:19and then um as we refine the

2:47:21conversation around the nichls deck and

2:47:23as we hear more feedback and we bring

2:47:24this data point, you know, I think we

2:47:26can kind of refine the decision as it

2:47:28relates to the future phases of being

2:47:30Chicago and Jackson. So, um you know, I

2:47:34think as Doug mentioned, like we're here

2:47:36to hear the feedback on this and we can,

2:47:38you know, kind of work through the

2:47:39discussion on how we sequence those, but

2:47:41I think as far as the municipal deck and

2:47:43uh Jefferson Streetscape go, those are

2:47:45those are going to be pretty ready to go

2:47:47for construction for next year. So my my

2:47:49last thought, mayor, if I could, is just

2:47:51I would really ask that we get that data

2:47:53and and I would suggest it should be a

2:47:56council meeting agenda item where the

2:47:58public would be aware and it's not just

2:48:00something as part of the budget process

2:48:01that we're just going to say 40 million

2:48:03is approved by a show of hands and a

2:48:05workshop. Um I think we should have that

2:48:07data, have a full meeting, have the

2:48:09neighborhood aware, have the business

2:48:11owners aware, have everybody come to a

2:48:12meeting and really discuss it before any

2:48:14final decision is made.

2:48:16Thank you, Councilwoman Jane.

2:48:18>> Thank you, Mayor. Um, I won't be com I I

2:48:22too will be talking about the parking

2:48:24decks. Uh, not making any comments in

2:48:26general about uh where I stand, but I I

2:48:30do agree with Councilman Kelly on data

2:48:33being important and helping us make

2:48:36these decisions. And so, I do appreciate

2:48:40Mr. Mr. Kger, your um your reasoning

2:48:43behind the shift in the timeline and the

2:48:46projects that you propose. Uh I would I

2:48:50would like to also see the results of

2:48:52that survey before we make any decisions

2:48:56including um the municipal center deck.

2:49:00for me. I I I I guess I I'm you may have

2:49:04spoken to this earlier, but if you could

2:49:07clarify the urgency um or if there if

2:49:11there's structural needs that um need to

2:49:14uh be attended to right away or is this

2:49:17something that could be delayed? If you

2:49:20could just speak to that.

2:49:22>> Um yeah, at a high level, I'll look for

2:49:24Mr. Randolph to see um uh if if I

2:49:28misspeak. Um, you know, last year we had

2:49:30it slated in for 2028, 2029. I do not

2:49:34believe anything has changed to make it

2:49:37more urgent. Kind of the the

2:49:39acceleration of that by one year was

2:49:41really just part of the coordination.

2:49:43Um, so if it I mean, if it pushed one

2:49:45year, I'm assuming that wouldn't be a

2:49:48big issue. Um, I'm guessing we could

2:49:51probably push two. Um, but probably

2:49:53wouldn't want to go beyond that. Is that

2:49:55fair?

2:49:59I would want to consult the the

2:50:00structural report before I uh provide

2:50:03feedback on that. Uh in my experience,

2:50:06you don't want to put off uh maintenance

2:50:08to waterproofing membranes on a

2:50:11structural deck. Um

2:50:14but yes, if if it was slated for 28 29

2:50:18and we are accelerating it for

2:50:22uh logistical reasons or

2:50:25you know then then that's a real

2:50:27consideration but I will u I will have

2:50:30information for the council soon.

2:50:33>> Yeah. Thank you

2:50:36>> Councilman Mc Broom.

2:50:37>> Thank you mayor. [clears throat]

2:50:39Um, going quickly back just briefly back

2:50:41to the Riverwalk. I appreciate

2:50:43Councilman Kelly's questions. I was a

2:50:45little confused on what we were talking

2:50:46about. Um, just for my own clarity, uh,

2:50:50Director Hines, the the full projects

2:50:53in in the CIP budget, what's the concern

2:50:57that we're talking about here that we

2:50:59think that uh, a bid may come in higher

2:51:01than what we're budgeting for and it's

2:51:03by a million dollars or is that what

2:51:06we're talking about?

2:51:07>> Uh, yes. So the final design, you know,

2:51:10the latest cost estimate is is more than

2:51:12what we budgeted for. So I think the the

2:51:14question was, you know, do we need to

2:51:16look at other options

2:51:18>> by a million dollars

2:51:19>> approximately? Yes.

2:51:20>> Okay. [clears throat] Doesn't seem

2:51:22insurmountable. Um but um okay,

2:51:27thank you for that. Um as far as the the

2:51:29the parking deck goes, I I agree with

2:51:32Councilman Kelly on on the transparency

2:51:34and the data. Um, you know, I I guess

2:51:36the the counter to um the need I have

2:51:39seen a lot of data from DNA and Chamber

2:51:42of Commerce and and and I think it's um

2:51:46you know, the people that these business

2:51:47owners want in those parking spots

2:51:49aren't necessarily necessarily in our

2:51:51neighborville survey. They don't live

2:51:53here. And um I look at it as what 380

2:51:57400 new shoppers. And um I just think we

2:52:02should keep that in mind. Um, you know,

2:52:04our our it is it is very expensive to

2:52:06run a city and in order to to to keep

2:52:09that property tax levy low comparatively

2:52:14to our other communities,

2:52:16uh, we we need we need economic we need

2:52:19economic activity. We need economic

2:52:21growth. And um, so I I I understand

2:52:24fully why these downtown business owners

2:52:26want an avenue to get more vehicles um,

2:52:29downtown. Um, but I I I think you're

2:52:34100% right. Um, I'd like to see a staff

2:52:36recommendation. Um, you know, uh, you

2:52:40take guidance from us and we kind of

2:52:43push you in different directions on on

2:52:45the budget, but $40 million spend,

2:52:47getting data and getting a staff

2:52:49recommendation on it, I think, uh, and

2:52:51and having a public forum and, yeah,

2:52:53notifying the public and getting more

2:52:55feedback. I mean, it's it's not a small

2:52:57small thing. My my last uh concern would

2:53:01be, you know, and along the lines of the

2:53:04$100,000, we can say h 100,000 is is

2:53:06meaningless, but I was kind of the same

2:53:07way when we first started talking about

2:53:09this when I thought that the engineering

2:53:10plans, which is million and a half

2:53:12bucks, um that we don't just throw that

2:53:15in the CIP, unless we're really serious

2:53:17about doing that, we should probably

2:53:19treat $100,000 like that as well. Now, a

2:53:22lot of us might not be here by the time

2:53:24we get to 2031 and to vote on it, but um

2:53:29you know, so uh and lastly, I I'm I

2:53:32since I've been sitting up here, I I've

2:53:33kind of seen maybe a recurring theme a

2:53:36little bit. Um where um you know, we've

2:53:38had, you know, extensive permit delays.

2:53:42Um, we've um looked at opportunities

2:53:44like Fifth Avenue having to be pushed

2:53:46off and and I'm I'm starting to feel

2:53:49like and and this is nothing against

2:53:51staff. I think that you guys are doing a

2:53:53great job, but I think your job is

2:53:54mostly reactionary and and it's

2:53:56preventing anyone from from really

2:53:58taking the time or having the ability to

2:53:59do any forward looking and and so I

2:54:02think about things like being told that

2:54:04we can't we can't uh pursue a Fifth

2:54:06Avenue uh development, you know,

2:54:08hundreds of millions of dollars of

2:54:10development. Um, and then I look at this

2:54:12timeline and say, "Well, if you're going

2:54:14to do a parking deck in 2030 and we

2:54:16start talking about Fifth Avenue, we're

2:54:18going to be told we can't do that." So,

2:54:20um you know, uh I think council when we

2:54:23get to operating budget, I think that

2:54:24our our planning and engineering is is

2:54:27probably uh at capacity and and I don't

2:54:30think they're able to um tackle multiple

2:54:33projects and and I think we're seeing

2:54:34some of that in in the CIP and um so I'm

2:54:38I'm going to be supporting, you know,

2:54:39whatever it takes to to get our planning

2:54:42department the resources they need to to

2:54:44be able to take advantage of of uh

2:54:46investment opportunities for us. So,

2:54:48Councilman

2:54:50Wilson.

2:54:51>> Uh, thank you, Mayor. Um, didn't turn

2:54:54off the microphone this time. Um I I

2:54:57guess similar thoughts and thank you

2:55:00Councilman Holes for the uh background

2:55:04on the Riverwalk, some of which I guess

2:55:08I wasn't aware of or had needed to be

2:55:10reminded by, but um I guess

2:55:15similar to getting data for the Nicholls

2:55:19Library parking deck. I mean maybe this

2:55:21is just a counterfactual but I would be

2:55:22curious if it I don't no idea possible

2:55:25to see if how much utilization

2:55:29that

2:55:30small stretch of I guess a block um

2:55:35would actually be used. Uh I I don't

2:55:38know. To me, it's just And again, I

2:55:40guess kind of going back here to the

2:55:42theme of, you know, delaying things

2:55:44longer is going to increase the cost,

2:55:46but um

2:55:49at the same time, just

2:55:5267 million for um a

2:55:56small piece of uh land when I I'm not

2:56:00entirely sure how much it would be

2:56:01utilized is expensive to me. Um, I mean,

2:56:06you know, but whereas

2:56:09you you could argue that the parking

2:56:11deck at at the Nichols Library, you can

2:56:13make a very good argument that uh it

2:56:16would bring in more people to downtown

2:56:18businesses, which is certainly the

2:56:21downtown business community's argument

2:56:23um would bring in more revenue um which

2:56:27would certainly be appealing. I I guess

2:56:29kind of to Councilman Kelly's point, I I

2:56:32would be interested though in having

2:56:33like a I don't know what that would look

2:56:35like as far as like a public

2:56:38hearing or uh because because it it does

2:56:40seem like some of these projects like

2:56:41this would like, you know, a few years

2:56:45down the line, the public this ends up

2:56:47getting developed and then the public is

2:56:49like, "Wow, this is almost $40 million."

2:56:52And they're like, "I I didn't even know

2:56:53about it." Um, so I don't know to to

2:56:56that point I would be uh interested in

2:56:58in seeing feedback like that. So thank

2:57:01you

2:57:03>> Mr. Kger. I'm going to start with just a

2:57:04couple questions about the history on

2:57:06the Riverwalk um in this particular

2:57:08extension. You've been around for this

2:57:10entire discussion going back to 2015 I

2:57:14believe when it first started. Was it

2:57:16your understanding that there was a um

2:57:20some sort of fundraising expectation

2:57:22from the Riverwalk Foundation and uh the

2:57:26city would do a match or what was what's

2:57:28your recollection?

2:57:28>> Yeah. And and you know, thank you for

2:57:30the question. Um you will not find

2:57:32anything in writing. Um uh and you know,

2:57:35Mr. Kennedy may be able to add on as

2:57:38well. Um you know, there uh so there

2:57:41were no there are no formal commitments

2:57:43or obligations. um my understanding uh

2:57:46at least with the south extension and

2:57:48and thank you for clarifying you know

2:57:50you know it didn't double in value that

2:57:52includes both the hillside gateway as

2:57:54well you know it certainly wasn't my

2:57:56intention to to show that that um and

2:57:58and it goes back boy I don't know maybe

2:58:01yeah probably like the full 10 years

2:58:03where we think hey you know we think

2:58:04this will be about three million and um

2:58:07you know foundation was created said hey

2:58:09all right you know um I I I don't think

2:58:13they stopped at the 1.5. I think it was

2:58:15just the hey we hit the 1.5. Um, you

2:58:19know, you add Hillside Gateway in that

2:58:21increased costs. Um, you know, as uh

2:58:24Deputy Director Hines mentioned, you

2:58:26know, increasing the size of some of the

2:58:28structural elements, increase costs.

2:58:30Costs are always going to increase.

2:58:31That's, you know, that's that's not

2:58:33anybody's fault. Um, that's just kind of

2:58:35the the way it has been going. Um, but

2:58:39um, you know, I I think the informal

2:58:42original thought was kind of like a

2:58:4450-50 deal. Um, but you're not going to

2:58:47find that um, in writing anywhere. I I

2:58:50don't know. Is that consistent,

2:58:53>> Mr. Kennedy?

2:58:57>> Yes. Thank you. Uh yeah, I I'd say that

2:59:00was the intention and and uh so now we

2:59:03are a a fundra fundraising group within

2:59:06the um Neighborville Riverwalk

2:59:07Foundation and we have been uh actively

2:59:10working. If you look back at the

2:59:12projects that have been accomplished

2:59:14through the master plan, I think we're

2:59:17at this point over 50% as they've kind

2:59:20of all um come through different um

2:59:24entities. Uh Rep. Fosters um

2:59:28Representative Fosters uh grant and some

2:59:31of the other projects along the uh the

2:59:33river the riverbank ecological

2:59:35restoration projects that have been

2:59:37funded with other people's money. Um so

2:59:39we've worked we've worked hard at that

2:59:41and we'll continue to work at our

2:59:42fundraising. Um there's still

2:59:45opportunities for uh different naming

2:59:47rights and those types of things um even

2:59:50at you know as during construction and

2:59:52even as the the project moves forward.

2:59:54And in fact, we believe with support and

2:59:57with approval and with momentum for the

3:00:00project moving forward, that will kind

3:00:02of put some wind in our sales as a

3:00:04fundraising group as well.

3:00:07>> So, right now we're at the the two

3:00:09donations, the 700 and the 800,

3:00:12>> the grant from the state and the 700

3:00:14donation from Edward, right?

3:00:17>> That's correct.

3:00:18>> Basically, the extent of of all private

3:00:20donations at this point for this

3:00:21project,

3:00:21>> for this specific project, that's

3:00:23correct. And I I will in 2023 in the

3:00:26look ahead CIP budget and based on our

3:00:29consultants the budget for for the

3:00:31project was $3 million. And so we that

3:00:35that's kind of the basis for how we

3:00:36raise the 1.5 million. And and uh I

3:00:39again I think maybe the project needs a

3:00:41little bit momentum to to support

3:00:43further fundraising around it as well.

3:00:45>> Director Hines, um when it comes to the

3:00:496.8

3:00:50number you've got in here. What do you

3:00:53have for

3:00:56padding there? I mean, we haven't had a

3:00:59Riverwalk project in the last three and

3:01:00a half years I've been on the council

3:01:02that's hit budget. They've always gone

3:01:04over. The last one we had was over seven

3:01:06digits in change orders. So, is it 6.8

3:01:11or

3:01:14is it 9.8?

3:01:17>> Uh, I I think you know 6.8 is a

3:01:20reasonable number. I mean, we we won't

3:01:22know, you know, what the market

3:01:23conditions are at that exact time. But I

3:01:26will say, you know, going back in time a

3:01:27little bit, uh, you know, we we've had

3:01:29three major projects over the last few

3:01:31years. The Eagle Street Gateway, which

3:01:34we only had two biders, and that did

3:01:35come in significantly over budget. Um

3:01:38the uh North Central College Park uh we

3:01:41had better luck. So we did get five

3:01:43biders and actually uh the low bid was

3:01:46uh pretty significantly underneath the

3:01:48engineers estimate. Um so that's you

3:01:51know uh good news. But you know we we'll

3:01:54have to see how the south extension

3:01:56goes. It's a it's a bigger project. Um

3:01:58so I'm not sure if it's going to

3:01:59generate you know the same number of

3:02:00biders but hopefully it will. And uh you

3:02:03know I think the 6.8 8 million is a is a

3:02:06reasonable number at this point.

3:02:08>> And is there funding established in this

3:02:11number for the continued care and

3:02:13feeding of the new addition to the

3:02:15Riverwalk? What would that look like on

3:02:17an annual basis? Do we know?

3:02:19>> Uh we we we we do have an estimate for

3:02:22that number. Um I it's not you know

3:02:24that's that's in the operating budget uh

3:02:26not the not the capital budget. So I I

3:02:29don't know that number off the top of my

3:02:30head.

3:02:34Okay. Um, with regard to the

3:02:40downtown parking garage project, I I

3:02:42think Councilman McBroom brought up a

3:02:44very good point. Um,

3:02:47Miss Connor's stated very earlier on the

3:02:50record, 60% of the visitors to the

3:02:53downtown for shopping and dining are

3:02:55estimated to be from out of town

3:02:58visitors. And I'm not aware of any of

3:03:01our data capture through the national

3:03:04community survey plan that was only

3:03:06mailed to Neapville residents,

3:03:08a select number. And then this new optin

3:03:12plan um survey theoretically somebody

3:03:16doesn't have to live in Neapville to

3:03:17fill that out, but they have to have the

3:03:19initiative to to fill it out. Would that

3:03:21be accurate, Miss L?

3:03:26Um, on the community survey, I'm looking

3:03:28over at Doug and

3:03:30>> I'm talking about the special parking

3:03:31survey that was is is currently in

3:03:33progress. National community survey was

3:03:35absolutely Neighborville residents only

3:03:36and only a portion of them.

3:03:38>> Yeah, thank you for the clarification.

3:03:39So, yeah, that was available to any

3:03:41downtown patron as well as um it was

3:03:43promoted to um retailers and employees

3:03:46of those of the retailers um in the

3:03:49downtown as well. So that was we we had

3:03:50QR codes available um broadcast all over

3:03:53the downtown during that um time frame

3:03:55where we were doing those parking

3:03:56counts. So that was open to any downtown

3:03:58visitor at that time as well as promoted

3:04:00through um our typical channels. So not

3:04:02not at all limited to just um uh city of

3:04:06Neighborville um residents.

3:04:09And my understanding in different

3:04:10presentations I've seen is that we are

3:04:12well below the parking ratios for

3:04:17number one a downtown with the number of

3:04:20stores and square footage dedicated to

3:04:22retail and restaurants

3:04:24um as compared to other cities and our

3:04:28true competition. Is that

3:04:33still accurate?

3:04:36Um yeah, I would say that is that is

3:04:39accurate. I know that is what um you

3:04:41know the data that was prepared by um

3:04:43DNA and DAC showed. Um you know they

3:04:45were using um some some benchmarks. Um

3:04:48historically um the city has used its

3:04:51own downtown parking generation rate

3:04:53which is very close to what they were

3:04:55using. Um so the last time we did the

3:04:58full report um we did provide an

3:05:00estimate of um 2.0 to 2.5 spaces per

3:05:04thousand square feet. that excludes any

3:05:05residential development. Um so we were

3:05:08using a similar ratio at that point. Um

3:05:10which did show that based on the amount

3:05:12of um commercial square footage that

3:05:14there was a a need for additional

3:05:16parking spaces.

3:05:18>> Okay. And when it comes to the

3:05:20streetscape improvement plan, um how

3:05:23many spaces are we taking offline during

3:05:27that project

3:05:30>> for the um Jefferson um and Main Street

3:05:34streetscape? Total of 36 on street

3:05:36spaces

3:05:37>> that will be gone through the duration

3:05:39of the project or

3:05:41when the project is over.

3:05:43>> Um that those would be unavailable uh

3:05:45while the project is underway. I mean,

3:05:47depending on staging, we might not have

3:05:49to take all of those out at one time,

3:05:50but the the maximum during construction

3:05:52would be 36.

3:05:54>> Okay. And and um Mr. Hines, do we know

3:05:57how many would be out of service at city

3:06:00hall

3:06:04or one of you, Mr. Randolph?

3:06:07>> Yeah, the project is split over two

3:06:08years. It would be it would be one half

3:06:11at a time. So, one half one year and one

3:06:13half the other.

3:06:14>> What does that equate to approximately?

3:06:17It's half of 370

3:06:21>> about 170 I'm learning from director

3:06:24loud.

3:06:25>> So theoretically we're taking 200 spaces

3:06:27offline at the same time.

3:06:30>> Yes. Without any sort of replacement for

3:06:33those spaces. Correct.

3:06:36>> Correct.

3:06:37>> So you can kind of see where I'm going

3:06:39with this as far as

3:06:43the concerns. uh you know, one way or

3:06:45the other, we're going to have parking

3:06:46challenges with that project. We're

3:06:48going to have parking challenges if we

3:06:50decide to build a parking garage. But I

3:06:53think there's something more and beyond

3:06:55that, and that is by the end of this

3:06:58year, we're estimated to have about $16

3:06:59million in a downtown parking fund that

3:07:02was dedicated for more parking. And if

3:07:05we're not going to build that more

3:07:07parking, why are we collecting

3:07:10$16 million

3:07:12in special tax revenues from food and

3:07:16and and beverage in the downtown

3:07:19specifically for the downtown parking

3:07:22fund if we're not going to ever build

3:07:26the facility? and

3:07:29we should be getting rid of that tax or

3:07:32giving the money back if we're never

3:07:34going to build a facility that we

3:07:35promised or that was in the cards long

3:07:38ago. So, I I've got some great concerns

3:07:40about what we're doing there. And and

3:07:43quite frankly, I mean,

3:07:45the last piece of of my concern would be

3:07:49the downtown parking fund being used for

3:07:52maintenance on the municipal parking

3:07:54garage deck. I mean, we just heard

3:07:59it mentioned that city employees use

3:08:02that, the Nichols Library employees use

3:08:03that and Neighbor Settlement employees

3:08:06and and Neighborville settlement uses it

3:08:08and not one of those groups pays into

3:08:12that downtown parking fund.

3:08:15So to suggest that we're going to use

3:08:18half of the down or half of the funding

3:08:21for repairs in the Neighborville

3:08:23Municipal Center parking garage and tap

3:08:25the downtown parking fund for it. I just

3:08:28don't think it's it's

3:08:30uh the appropriate use of those funds as

3:08:34this was pitched to the retailers and

3:08:36the uh the restaurant owners who made

3:08:38the investment in our downtown many

3:08:40years ago under the guise that they

3:08:42would be collecting these taxes. they

3:08:44would be increasing their prices to have

3:08:48parking for their customers.

3:08:51So, I I think it's u just not an

3:08:54appropriate budget allocation.

3:08:58Thank you. Councilman Elzar, you got a

3:09:00followup.

3:09:00>> Thank you, Mayor. Just had a couple of

3:09:01follow-up questions for uh Mr. Kennedy.

3:09:05He looks excited.

3:09:09Um I think you said it earlier, Mr.

3:09:10Kennedy, but just wanted to verify. Um,

3:09:14had this project been approved in the

3:09:16I'm sorry, if if it had been Yeah.

3:09:19approved in the CIP in the original year

3:09:21it was proposed, not delayed, half the

3:09:24funding for the path was covered by

3:09:25private donors. Correct.

3:09:28>> Um, I'm sorry, I missed the

3:09:30>> Okay. Sorry. If this had been approved

3:09:32in the year that it was first proposed,

3:09:34>> Yeah.

3:09:35>> you had half

3:09:36>> $1.5 million was half of the then cost.

3:09:39>> That That's correct. Correct. We've had

3:09:41inflation in the cost of materials and

3:09:43construction. Um, and now the hillside

3:09:46gateway has been added in. But that's

3:09:47toss that out. But the actual cost of

3:09:50the path, the issue we now have is a

3:09:53inflation in the cost of goods and

3:09:55construction. Correct. Or that's a major

3:09:57issue.

3:09:58>> Okay.

3:09:59Is it a fair to say it's a hard cell to

3:10:02go back to the donors and say we now

3:10:04want to maintain

3:10:06one half private donations and a reason

3:10:08for that is that we delayed the project

3:10:10for three years and we want you to cover

3:10:14the inflation for us. Is that fair to

3:10:15say that's a hard ask?

3:10:18>> Yeah, I I can't speak for uh the

3:10:20leadership at the hospital. Well, I I

3:10:22know they were disappointed when it was

3:10:24deferred um to this point and they they

3:10:27expressed that. Um but I I can't speak

3:10:30to them. It being being the person who's

3:10:33gone back to them each time and sat down

3:10:35and talked to them after each deferral.

3:10:37Um yeah, those are uncomfortable

3:10:39conversations. So, I wouldn't look

3:10:40forward to that.

3:10:41>> Okay. And then um just as a you know

3:10:43following up on um Councilman Broom's

3:10:46point um he talked about the $1 million

3:10:48being or sorry the cost being 1 million

3:10:51more than anticipated. I just wanted to

3:10:53make sure that it's clear on the record

3:10:54that that means 6.8 million is 1 million

3:10:57more than we had hoped. We had hoped for

3:10:59more like 5.8 million if we were using

3:11:01last year's numbers but um yeah just

3:11:04just want to make sure that's clear.

3:11:05It's not we're talking about 7.8 million

3:11:07or something like that. Um

3:11:10and then uh final

3:11:13question is fair to say that in other

3:11:16riverwalk extension projects or

3:11:18expansion projects when naming rights

3:11:20have been sold to pavilions or squares

3:11:23or things like that those have generally

3:11:25raised six figure sums um which is

3:11:29donated back to the city for riverwalk

3:11:31maintenance. Correct. Or I'm sorry is

3:11:32donated back for riverwalk maintenance.

3:11:34Correct.

3:11:35>> Yeah. Any fundraising we do would the

3:11:38the sole purpose of our fundraising

3:11:40committee is for master plan projects

3:11:42and this is our focus and our primary uh

3:11:45objective right now. So, anything we

3:11:47raised now or even over the next couple

3:11:50years um would go to the city to support

3:11:53uh this project.

3:11:54>> Yeah. And the final question is um just

3:11:56to verify, there were $3.5 million of

3:11:59other riverwalk projects that that the

3:12:02commission chose to defer into the

3:12:04future to prioritize this one. Correct.

3:12:07not only defer but to look at the um

3:12:10extent of those projects as they sit um

3:12:12today the scope of those projects and

3:12:15even

3:12:15>> so in other words

3:12:16>> reduce the scope of those projects

3:12:18>> in other words other projects were cut

3:12:20>> that's right

3:12:20>> for this okay thank you mayor

3:12:23>> Councilman Kelly

3:12:24>> thank you mayor a couple of follow-ups

3:12:25on the funding allocation that hasn't

3:12:28got garnered a whole lot of discussion

3:12:30but one thing I will agree with you on

3:12:32what I might disagree and then a

3:12:33question for staff um for the funding

3:12:37split on the municipal deck. I will say

3:12:39I wasn't sure what staff was going to

3:12:40propose there from my perspective when I

3:12:43saw 5050. I I thought that made sense

3:12:46actually because granted it's used by

3:12:47city and settlement employees during the

3:12:49day. Uh but then it's of course also

3:12:52used uh on the top deck during the day

3:12:54for residents but for shoppers and

3:12:57diners at night and on the weekends. And

3:12:59I'll say that's it's one reason that I

3:13:01don't personally see the Nickels deck

3:13:03being a necessity because I can always

3:13:06find a spot. I'll say in the municipal

3:13:07deck to me, that's one of the one of the

3:13:10um it's not a secret, but just a lot of

3:13:12people don't use it, but it's right at

3:13:14Water Street and right across the river

3:13:15from uh from the rest of downtown. Um so

3:13:18that makes sense to me. Um I will say on

3:13:23the uh food and beverage tax for the

3:13:25downtown parking fund, I'll agree with

3:13:28the mayor. I think we should only be

3:13:29collecting what we actually need. If we

3:13:31are going to do the nickels deck, then

3:13:32we'll need a lot. Uh obviously if we

3:13:35don't I would be curious from staff if

3:13:37you could get some information for us

3:13:39regarding

3:13:41what else what big ticket items we're

3:13:43going to have over the next many years.

3:13:44I know the central parking facility has

3:13:45talked about um having to be redone at

3:13:48some point and what the potential just

3:13:50very ballpark costs on that might be.

3:13:52Would that eat up the entirety of the

3:13:54fund plus a million per year for the

3:13:57next many years? Um, and in any case, at

3:14:00some point, whenever we've built out the

3:14:02parking that we're going to need,

3:14:03whether that's redoing central andor

3:14:06nickels, potentially at some point, I

3:14:08think it would make sense to move into a

3:14:09maintenance phase and maybe we reduce or

3:14:11eliminate that that um tax. Um, the

3:14:14question for staff, I guess, is if you

3:14:16can explain for us how you came to that

3:14:185050 proposal for the municipal deck.

3:14:21>> Uh, yeah, you know, and thank you for

3:14:23that clarification. Um, you know, it it

3:14:26it uh it's certainly not a black and

3:14:29it's not a white um for, you know, the

3:14:31city obviously does use that um for city

3:14:35business. Should the downtown parking

3:14:38fund be used to assist us in funding

3:14:41city business? Absolutely not. um you

3:14:44know our our thought and and Ted has

3:14:46been tasked with this is is try to

3:14:48evaluate

3:14:49um you know kind of the percentage usage

3:14:52um you know and I don't know if it's

3:14:54that because it's used by both so you

3:14:57know um the at the low it would be zero

3:15:01if it were 100% used by non city

3:15:04non-settlement non- library people uh it

3:15:07would be 2/3 um it's going to be

3:15:09somewhere in between um Ted is going to

3:15:11come up with an estimate of use to say,

3:15:14you know, hey, on average it's um I'll

3:15:17pick something to make the math easy.

3:15:19Say it's um 40% um used by downtown

3:15:25patrons, 60% used by the city. You'd

3:15:27say, okay, we have the 60%. Um that

3:15:31piece is going to be paid for entirely

3:15:33by the city. The remaining 40%,

3:15:36twothirds of that would be paid for um

3:15:39uh by the downtown parking fun. and then

3:15:42the remainder would be paid for by the

3:15:43city. Um that is what kind of got us

3:15:47near the 5050. So there was a little

3:15:49more thought put behind it. It wasn't

3:15:50just, you know, split the difference. Um

3:15:53that is why we don't have kind of an

3:15:55exact percentage because we're still

3:15:57trying to calculate, you know, the best

3:15:59percentage of use of the those spaces

3:16:02>> and and we'll receive that use estimate

3:16:04from staff before making final decisions

3:16:06on this.

3:16:06>> Yeah. Yes. All right. Thank you.

3:16:12It's all the questions.

3:16:14>> That's not all the presentation though.

3:16:17Uh I think Deputy Director Morocco has

3:16:20the next section.

3:16:22>> Just a few more on how we fund capital

3:16:24projects.

3:16:26Um first up we have the home sales tax.

3:16:29This is the single largest revenue

3:16:30source dedicated to funding capital

3:16:32improvements. It was implemented in 2016

3:16:35as a conscious decision to create a

3:16:36consistent funding source to support

3:16:38ongoing capital investment. In turn,

3:16:41this allows the city to responsibly

3:16:42manage debt because of that consistent

3:16:44funding source. To date, over $13

3:16:47million in home sales tax funds have

3:16:50been collected. The current tax rate of

3:16:52threequarters of 1% remains the lowest

3:16:55home sales tax rate of surrounding

3:16:57communities.

3:16:59Sorry, I'm skipping ahead. Home sales

3:17:01tax however does not apply to big ticket

3:17:03or essential items like titled vehicles,

3:17:05qualifying groceries or medical

3:17:07healthcare items. You will notice that

3:17:09home sales tax revenue is projected to

3:17:11increase by 3% from 26 202 sorry 2026 to

3:17:162027. Uh this increase is primarily due

3:17:19to due to sustained consumer spending

3:17:21and the ongoing impact of inflation.

3:17:24Additionally, many municipalities,

3:17:26including Neapville, are benefiting from

3:17:27expanded online sales tax collections as

3:17:30consumers continue to spend more online.

3:17:33The 2027 budget estimate is $24.8

3:17:36million, up from 24.1 million projected

3:17:39for 2026.

3:17:44Sorry. All right. motor fuel tax, motor

3:17:47fuel and local gas taxes are used to

3:17:48fund the city's street maintenance

3:17:50program which includes resurfacing and

3:17:52reconstruction. The motor fuel tax or

3:17:55MFT is further made up of state MFT and

3:17:58the transportation renewal fund or TRF.

3:18:01MFT is a fixed rate per gallon while TRF

3:18:04is adjusted annually based on the

3:18:06consumer price index. For 2027, MFT is

3:18:10forecasted at 7.6 million which is a

3:18:134.8% increase from

3:18:16The increase is driven by TRF since

3:18:18motor fuel tax is projected to decline

3:18:20slightly. The state is still evaluating

3:18:23how MFT structure may need to evolve in

3:18:26the future, particularly as vehicle

3:18:28technology and fuel consumption patterns

3:18:31change. Uh for now, staff is taking a

3:18:34wait andsee approach at the local level

3:18:35as the state considers its options. Once

3:18:38the state's direction becomes clear,

3:18:40staff can evaluate whether a similar

3:18:42approach would be appropriate or

3:18:44workable at the local level.

3:18:46Neighborville's local gas tax is a flat

3:18:484 cents per gallon. Revenues here have

3:18:50remained consistent with past years at

3:18:52around 2.4 million, but have yet to

3:18:55return to prepandemic levels of 2.7

3:18:57million. Motor fuel tax revenues will

3:19:00continue to be closely monitored due to

3:19:02the current uneasy oil market and

3:19:04forecasted decline in consumption.

3:19:08Next, we have the downtown food and

3:19:10beverage tax. Businesses located

3:19:12downtown collect and remit the

3:19:14additional threequarters percent on food

3:19:16and beverage sales in addition to the

3:19:18citywide tax. The downtown food and

3:19:21beverage taxes fully dedicated to the

3:19:22downtown parking fund to support

3:19:24construction, maintenance, and

3:19:25improvement of downtown parking

3:19:26facilities. As a chart illustrates,

3:19:29collections have rebounded since 2021

3:19:31and have been at approximately $1

3:19:33million.

3:19:35For 2027, staff is projecting a slight

3:19:37decline of approximately 2% or $20,000.

3:19:41This projection is based on current

3:19:42collection trends and does not reflect

3:19:44any potential impact from the recent

3:19:46repeal of the happy hour ban. Staff will

3:19:49continue to monitor collections and if

3:19:50current trends improve, we will re

3:19:52re-evaluate our preliminary estimates.

3:19:58All right. Last, we have capital debt

3:19:59support. Um, this is another way capital

3:20:01is funded through the issuance of bonds.

3:20:04Neighborville is considered a low debt

3:20:05burden community by our bond rating

3:20:07agencies. Our conservative practices on

3:20:10debt issuances help maintain this low

3:20:12debt burden. In addition, debt is

3:20:14carefully planned and issued on a

3:20:15reimbursement basis to avoid unnecessary

3:20:18borrowing. The result is our prestigious

3:20:21AAA bond rating for 30 years. The 2027

3:20:24CIP assumes a plan debt issuance of

3:20:27nearly $50 million in new in new utility

3:20:30debt. This includes $10 million for the

3:20:33electric utility and $40 million in the

3:20:35water utility. It's very important to

3:20:37note that utility debt in the water and

3:20:39electric funds is separate from the

3:20:40general fund. As a result result of

3:20:43this, the debt the utilities would be

3:20:44taking on has no impact to the property

3:20:47tax levy.

3:20:48The 2027 budget includes no new bond

3:20:51issuance for capital outside of the

3:20:53utilities. Over the past five years, $15

3:20:56million has been issued for general

3:20:58capital projects. This was included in

3:21:00the 2025 GEO bonds along with $30

3:21:03million for the utilities. With that,

3:21:06I'll turn it over to Doug for closing

3:21:08remarks.

3:21:11All right. Thanks, Tracy. So, what comes

3:21:13next? Um, as we talked about previously,

3:21:16uh, we're currently finalizing the

3:21:17proposed budget which will be published

3:21:19on October 9th. Um, we'll include all of

3:21:22the detail. Uh, this is the closest we

3:21:24come to publishing a phone book here at

3:21:26the city. Um, our second workshop

3:21:29scheduled for October 27th is going to

3:21:31cover our operating budget and major

3:21:34funds. Uh, and then if needed, third and

3:21:36final budget workshop would take place

3:21:38on November 10th. Uh, public hearing and

3:21:40approval of the 2027 budget and property

3:21:42tax levy will take place at our regular

3:21:45city council meetings in December. Um,

3:21:48this concludes staff presentation for

3:21:50the evening, mayor. Um, and we're happy

3:21:52to answer any answer any other

3:21:54additional questions. Councilman White.

3:21:57>> Um, thank you. Just a quick question.

3:21:59You you mentioned the motor fuel tax.

3:22:01I've been asking this one. You probably

3:22:02knew it was coming. Um, what are we

3:22:04doing with the uh, you know, electric

3:22:07vehicle registration, getting some of

3:22:09that funding to come back to the city?

3:22:13>> As we mentioned, we're kind of taking a

3:22:14wait and see approach. I think there was

3:22:15some proposed legislation from the state

3:22:18on, you know, um, an additional search

3:22:21charge for electric vehicles. Um, but I

3:22:23think that's still going through the

3:22:24process. So until we kind of see some

3:22:27activity at the state, I don't think

3:22:28we're ready to take any action at the

3:22:30local level just yet.

3:22:32>> Yeah. Since I mean the whole point being

3:22:34they're charging us for when we register

3:22:36our cars, but we're not getting any of

3:22:37that back to the city like we would be

3:22:39if we were actually spending gas money

3:22:41on gasoline. We get we get that money

3:22:43back. Um and seems like I I don't know

3:22:47how many years I brought this up and I

3:22:49still see no action on it.

3:22:52>> Yeah. you know, we um we continue to

3:22:54track it with the um with the

3:22:56legislation. Um other states have done

3:22:58it and they've done it successfully. I I

3:23:00think it's more important for us here in

3:23:03Neapville because we have such a much

3:23:05higher adoption of electric vehicles.

3:23:08Exactly.

3:23:08>> So, you know, we've got more more cars.

3:23:11Uh and you do mention um electric

3:23:13vehicles vehicles do pay more to the

3:23:15state um for their registration.

3:23:18However, the state shares zero of that

3:23:21with us as opposed to somebody buying

3:23:23gas at a gas station where we do get a

3:23:25share. But yeah, no, we are we're

3:23:27continuing to track.

3:23:29>> Okay. Thank you, Councilman Hozar.

3:23:32>> Thank you, Mayor. Um I was curious why

3:23:35um grocery tax revenue wasn't listed as

3:23:38a a revenue source on here or did I miss

3:23:40it?

3:23:42>> Grocery tax is in the general fund.

3:23:44Okay. um which we cover at the last two

3:23:46workshops is operating.

3:23:48>> Got it. Thank you. And then um just

3:23:50final thing I wanted to um clarify. I

3:23:53thought I heard that you said it,

3:23:55Director Morocco. Um but there are no

3:23:59bonds being issued for anything outside

3:24:01of utilities this year. Correct.

3:24:02>> No plan, nothing planned.

3:24:04>> Okay. So in other words, balance budget

3:24:05for the CIP stuff outside of utilities.

3:24:10Uh we do you know as I mentioned the

3:24:12cash balance summary you know there

3:24:15that's where we would be transparent on

3:24:17any um kind of planned spend downs and

3:24:21reserves for funds in prior years we

3:24:23have had that but um you know nothing at

3:24:27the moment planned to for general debt

3:24:30outside of the utilities.

3:24:31>> Awesome job then. Thank you mayor.

3:24:34>> All right well folks thank you very much

3:24:36for all your your work on this tonight.

3:24:38Um, our workshop is now concluded and we

3:24:41will wish everybody a good night.

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