Good evening. With it being 06:00, we'll call our meeting to order and start with the pledge of allegiance. I pledge allegiance to the flag of The United States Of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. With that, we'll go roll call around the horn, please. Peterson. Steichen. Nash. And Olson. With that, we also have our agenda. I didn't see any additions or subtractions. Motion to approve. Motion by Nash. Second, Steichen. And second by Steichen. All those in favor, say aye.
Aye. Opposed? Motion carries. We have our consent. Any questions or comments on our consent agenda this evening? I I have a couple on b and c. Mhmm. Well, b, I think, is pretty straightforward, but c, I was just curious if you could run me through how that would it it's an extension with a $25,000 bonus? Correct. Yes. I understand from talking with the city engineer in Moorhead, this incentive is strictly just for them on work that they're completing on their portion of the project,
so it has no financial impact to us. But since this change order is part of the overall project, we have to sign off on it as well. And as I understand too, it has to do with the adjust some adjustment works south of the bridge that's being done. Specifically, I'm not 100 sure what it is. I guess it explains it in the change order, itself there. Its extension also incorporates additional time due to a design error during construction. It's discovered that and they go through all the details right there.
So if I understood correctly, it had to do with the design error that they're doing. And then due to the time extension granted, it was going to be going way too far out in advance or down the road. And so they are offering this incentive on their portion only to get it done in a more expeditious fashion, which I understand they're doing. Right. So I guess my question is, like, does the extension affect the opening of the bridge? I don't know. No. As I understand, it's supposed to be open October 18.
That's I'm not holding my breath for that, but October 18 is what I was led to believe with all this. We'll revisit that in, that's correct, number nine. That'd be fun. Is there any other questions on the consent, Kevin? Sounds good. No. Thank you. No. Any other questions? All right. Hearing no further questions, I will entertain a motion for our consent agenda. So moved. Motion by Peterson. Second. Second by Nash. All those in favor, say aye. Aye. Opposed? Motion carries. With that, it does move us to number five, public comment period. Peyton, has there been any formal request to speak before council this evening?
None received, mayor. Alright. Once again, encourage the public to participate. It's a great way for us to make progress. And now progressing to number six. Six alpha, we have our pinning ceremony for our new police officer, Joel. Is it Bralt? Bralt. Bralt? Chief, the floor is yours. Alright. Mister mayor, council members, earlier this evening, I had the pleasure of welcoming the newest member of Dilworth Police Department, officer Joel Bralt. Joining our police department is more than just starting a new job. It is a commitment to serve, to protect, and to stand as a pillar of trust and integrity in our community.
Officer Bralt brings with him not only the training and qualifications we look for in a law enforcement professional, but also a strong sense of duty, a calm presence, and a genuine desire to make a difference. Officer Baralta stepping into a role that demands courage, compassion, and consistency, qualities that he has already demonstrated in his path to becoming an officer, whether it's working alongside our veteran officers, engaging with residents, or responding to calls with professionalism and care. I have every confidence that officer Bralt will serve Dilworth with honor. Thank you, chief. I look forward we're fully staffed now. Correct? Right now,
yes. I'll take it. Yes. I'll I'll take it. Congratulations to officer Rolfe, and congratulations to you, chief, for getting us fully staffed. We appreciate that. Thank you. Thank you. And since the ceremony commenced prior to six Alpha, we'll move on to seven with no further ado. It does bring us to seven Alpha. We have Resolution 2552 before us this evening, ordering the preparation of report on a water main infrastructure improvement, located on 30 Fourth Street North from those grid locations to that grid location.
Peyton? Thank you, mayor, members of the council. Bear with me the best, that you can so that I can hopefully try and explain one of the more complex staff reports that I've ever put together. And it's complex in the sense in in that there are so many moving parts from the actual utility work that's gonna going to be done. In addition to that, also, some of the, annexation, road improvements, road maintenance agreements. There's just lots of different variables that go into this. But at a high level, what we're looking at is a pretty large scale annexation,
three I believe it's 300 and let me see here. Yeah. 382 acres, plus or minus, That would extend basically from where the Aldi property is in that general vicinity to where our northern city limit lines go all the way north up to County Road 18. And this project is really just made up of a waterline extension, 10 inches main, that's going to be extending from that property out to the new development of the Resco development and Red River Valley Cooperative,
who is here this evening in support of this endeavor. This project is in alignment with what we talked about in our strategic plan. This was one of our identified goals as far as having this energy part developed here long term or short term, however you want to look at it. I guess that wasn't fully defined, but that was one of our stated goals in working through this. And from the staff evaluation perspective, we do feel like this is going to come about, as we say, a logical growth pattern and kind of positions us for future commercial industrial development.
And as I mentioned, what the water main, is with this project. Come on. Have a seat up here, Andrew. So good timing. So about the Welcome in. Sit down. Yeah. And catch us catch us up. Yeah. So about the project itself, the actual infrastructure improvement is just, as I said, just an extension of water from where Aldi is located. This is north for all those curious. I see a compass rose in the bottom. I appreciate that thing. So this wireline extension will run from Aldi all the way out to here to
support the Resco development. There was talk when we were first getting started with all this over the and we've been working with the develop the the team, developing this property several months now. And, in an ideal world, we could get sewer sanitary sewer out there to that point as well. But we have before you a project that's about $1,300,000 plus or minus. That was going to elevate the project to around $3.13200000.0
dollars, and we just couldn't we can't get there as a city right now. And their understanding of that, that said, the water service supplied to them is vitally important from a fire suppression standpoint, helps for insurance numbers. And having to provide their own system on their housing their own system out there is is gonna be rather costly, and they view this as a better investment for them to have municipal water there at this location. This right here is given an idea of the the area that's going to be
annexed, and so everything you see highlighted is what is set to be annexed. Okay? Now where this north is up top now, mayor. So Appreciate that. Thank you. Yeah. So, right down here where my cursor is is where Aldi is located, just below here. So in order for us to deliver water out there and go through a special assessment process, these parcels have to be annexed into the city limits. We have the ability to extend the water services without annexation if we decided to
do that, but that's not usually a practice to extend utility services to someone outside of your jurisdiction. So to do this and to assess benefiting property owners, which is everyone that you see here. So Andrew and his team have put together the waterline extension in a way that that 10 inches main that will run up 30 Fourth Street will support all of these parcels. It's not just supporting the RESCO and the co ops
properties. It's supporting everything, that you see right here. Okay. But in total, yeah, the total acreage of all of these, parcels of land is about three eighty two acres. Now along with that, in talking about the annexation, and I think we noted this before, this is all subject to an orderly annexation agreement that we have with Oakport and Moorhead Townships. So if we go back to the slide right here, what you see, these two parcels below Fifteenth Avenue, this is part of Moorhead Township.
The ones north of Fifteenth Avenue are all part of Oakport Township. And so we have orderly annexation agreements with them right now, which from a annexation standpoint makes the process incredibly simple. It's a matter of the city adopting a resolution that you're moving forward with annexation, and that's about the extent of it. I'll submit some paperwork down to the office of, I can't boundary adjustments or whatever it's called, down in Saint Paul. And they work their magic on their end,
and the properties are effective essentially brought into the city limits at that time. You have to and the reason why we have to do the annexation of all the parcels, you can't just spot annex where you do just say these two properties and those properties only. You have to bring them all all in at the same time to avoid, spot annexation. And, again, and that's all per per state statute. So along with that too, and we'll talk about this in a little bit, when we do that, that's annexing land on both sides of Fifteenth Avenue at that time.
So that means Fifteenth Avenue now becomes a city roadway at that point in our maintenance responsibility, which it's in relatively good shape being a, a new paved road that got done just a few years back now. And again, the main one of the main motivations for doing this is so that we can assess benefiting parcels for this utility improvement. But as a matter of transparency, we just don't do a resolution without notifying property owners. We do notify them that we would be moving forward with this.
And this one concurrently, though, would also be dealing with this assessment improvement hearing process. So there'd be public hearings involved just like we would with any other 04/29 process. Andrew, I don't know if you wanna talk anymore about the Peyton. Oh, I'm sorry. So okay. Just a couple of questions. That one, the orderly annexation Yes. There is a cost to that that we have to pay out Port and Morehead in addition. So I'm just curious as to the amount of that. Yep. Additionally, we can assess benefiting properties, but since they're all egg land, they will not be assessed.
I mean, we're we're basically They'd be deferred. That's correct. So basically, the rest of the city would have to pay for it. Until which time, yeah, they came online. And I'll and and I can go I've got part of the your other question later on in the slide deck here. So we'll get to that in just a second. Did you wanna say anything else regarding the water main extension, and I know it's pretty simple and straightforward there? It is. I saw you had the exhibit up. It's essentially an extension along 30 Fourth Street. I did visit with more in public service, prior to tonight to talk about,
you know, what the demands would be initially, and there's no there's no issues on their end with, the water service and this waterline extension. It's a distribution, extension for the City Of Dilworth essentially at this point, so And on the and we'll start diving into the financial components of this. Oh, I'm sorry. Sorry. Go ahead. What size pipes out there right now Like, that that ends at Aldi. Is it 10 inch, or is it bigger than that? It's a 10 inch. Okay. Yep. And does that come all the way from Highway 10? Yeah.
It comes from the Booster Station just on the North Side of Highway 10. Yep. And it's all 10 inch all the way to Highway 10 that you Mike? I'm just curious. I mean, if what this 10 inch obviously, you're the engineer, but 10 inch is big enough to go all the way to the end there. Yeah. As as Dilworth grows to the north, we're gonna need some connections east and west to provide the the grid looping that we're gonna need. I was able to to, find a a water main kind of a master plan from years and years and
years ago. And it also indicated that this corridor would have a a 10 inch line along 30 Fourth Street, but then there would be some 12 inch lines, particularly Fifteenth Avenue in the future. I'm going off my memory here, so I'm I'm not getting all the details. But it's supporting what your question is, that it long term, yes, we're gonna need more than just a solo line going up to the north. So so so, Ben, can you go back to that highlighted? Because then I gotta I gotta adjust my notes. So I wrote down, and I may have gotten this wrong, but I wrote down that the water main is able to service that whole section.
All those highlighted is I under was I understanding that correctly? Because that's what I wrote down. Because my question was, is the is the 10 inch main large enough to support additional development outside of the the initial two squares in the northwest corner? What's highlighted there? I was under the impression that this 10 inches line would be able to service. Am I wrong in that? That's how I understand it. You're not wrong. But what we were just talking about is as development, continues, we are gonna have to cross connect east to west, such as along Fifteenth Avenue to provide some redundancy to those areas.
Because as as the demand increases and the demand all over increases, we have to provide looping in order to to maintain the level of service that they're gonna expect. So it is. But when the Right. For it is for now. But we won't have to replace the 10 inch pipe in the future to put in a 15 inch pipe. No. Correct. We'll just have to add more to the infrastructure. K. Then that then that make because I don't wanna dig this up. Yeah. Or I don't want the city of Doris to have to dig this up in thirty years and say we didn't plan to add enough. That that's not a good investment.
Yeah. Mayor and council too that, it depends upon the uses that are up there. I mean, if it's strictly, sprinkler systems, fire, not so much just domestic use of the industries, this may bode for quite a while. But at some point, if we get a heavier water user up there in that energy park, we may have to look at it and extension it a little bit sooner. But that's all in the future and that's all unknown at this point. Okay. Thank you. Any other questions right now? Paying on, get us back. So we'll get into the start getting to some of the financial stuff. Again, this project is about $1,300,000
And with Andrew's estimate in there, he put in the typical bonding cost that's associated with what we work through Ehlers and all that. We anticipate those numbers being a little less because we're not going to do a tradition we wouldn't do a traditional bond for something like this And it's something a lot of the work that we'll be able to do internally or just go to a local institution if we go with any type of a financing option. And so how the special assessments are broken down, it's on a per acre basis.
So the extension of or this project cost in $1,300,000 That's all divvied up among all of the highlighted parcels that we were just looking at on a per acre basis. And, you can see right there what the RESCO and the co ops cost will be. Those costs would be paid upfront, the $52,000 and the $17,000 number that you see there. So that number would come off the top from the get go, and then everything else would be a deferred assessment to the remainder remaining of those
properties. And that's a $69,000 number that would be paid upfront. And so this is just a funding example. You know, we're not saying this is how we have to go necessarily, but this would say you took out half million dollars from your water fund reserves, that would leave about a $750,000 municipal bond to a local institution. And, again, these numbers aren't set until after we have an idea of what the project is actually gonna be, whether that'd be at bedtime or once Andrew and his team refine the numbers a
little more. Again, hopefully, we have a, you know, pretty high estimate at this point. And so this would look at about a, yeah, 3 quarters of million dollar municipal bond, which is just another way of doing our whole Eller process there. And this just gives a repayment example of what it would look like. And so our current reserve balance, because I know that question may come up, I did jot it down. Just a little note here at the bottom, is around $1,600,000 That's as of the,
last what would you say? Or I have to say it says of September 20. Gotcha. So that's like the last official number that we would have on the book, like, once everything is logged in at that time. A road maintenance agreement with the city of Moorhead from up to Fifteenth Avenue well, all the way from 30 Fourth Street, Highway 10 up to the County Road 18. We have this road maintenance agreement. We maintain pay for improvements northbound. Moorhead City of Moorhead has the southbound lanes.
This project was originally done at 30 Fourth Street from Highway 10 on a was put in, in 02/2005. And I always thought it was earlier than that, but confirming with the city of Morehead, that's when it was because that was actually the city engineer's first week of work is when they were bidding that out. So he remembers it vividly when they bid out that project there. So it's only it's about 20 year old roadway. What they so what that agreement spelled out that we did,
that got approved in 02/2019, something that we worked on for about a year and a half or so with council member Nash then, at the time was a repayment structure that was set forth. Once Aldi went in, we'd agreed in principle to go on and cover that cost up to Fifteenth Avenue. So that part's already off the books. We've already paid to the City of Moorhead, I think it was like $230,000 I know it's within the staff report there. Anyways,
that does that had nothing to do at but at that time, since Dilworth was not out beyond Fifteenth Avenue, that number was at $697,000 for that far north portion, plus it accrues $825,000 in annual interest. It's not a percentage based. It's just an annual, amount of $25,000 That amount today is about $848,172 That's what's on that land right now. And how Moorhead recouped that dollar since it's not in the city limits,
they can't assess us. But what they do charge us for, which is similar to what we had to do with the Aldi, was an access fee, we'll call it. And the landowners, Resco and the coop, that is actually part of what they would have to pay to the city of Morehead. So they would be that they would be 25% of that $848,000 number, which would leave us with about $636,000 remaining on the land from Fifteenth Avenue up to their property.
Is all this making sense? Because I know this can be a little confusing here. I can show it on a map if need be. I know there's a lot of layers here. One of the so when this came about or or just when I was going through this, I did give a call over to the city of Moorhead, just to the engineering department, and just said, you know, hey. What is your interest or your your flexibility level in paying this back? Again, the other one that we'd actually worked out an agreement with the city of Morehead for that south portion that we did back in 02/2019,
I think we were set to pay it back over the course of five or ten years. I can't remember what the number was, but we just went on and paid it all up front. So we had a set amount. For this right here, given that they weren't anticipating this being developed in any capacity, I talked just through a couple different examples and options, and they seem extremely open and flexible to maybe entertaining, anything that we put forth in that regard. One was an incremental payment schedule. So, let's use,
for example, this $18,000.900 dollars 18,900 number. You would practically set up an account, you know, basic fund accounting type things that we do here for a city. And each year to that account, you just add 18,900 to it. So you're not doubling it every year. It's just a deposit of $18,900 So $18,900 for us is about, I don't know, 0.6% of the levy, we'll say. And that's in today's dollars. Obviously, that percentage will increase over time that you would just deposit that account.
So in a few years, that number would be over a $100,000, and the payoff for that would be in eight years. Another option I floated to them, just pay $18.09 over you know, to cover the interest payment for the next ten years and then just do one sizable payment at year eleven to pay it all off. That would maybe allow for if any other development comes in, and that would give us an opportunity to maybe collect some of those dollars, you know, with them being within the city and, you know, in collection of more revenue,
more property taxes at that time. And this was, what, vice mayor Nash was asking about a second ago. There is a township repayment that we have to do. I did not include this in the staff report, getting lots of moving parts and couldn't remember at all. So we're required statutorily once land is annexed within the city. And we had to do this for our prior annexations, if you remember, as part of the resolutions that we pay back to the townships their lost revenue over the course of a two year span. And my estimate I just went through all the parcels and added up the dollar
amounts. I estimate that number to be about $1,900 a year total between the two townships that we would have to pay back over the course of two years. So a little less than $4,000 that would come out of our pockets to pay the townships. As alluded to as well, there would be additional maintenance responsibility. So we've talked about that on a staff level. So 30 Fourth Street Northbound would be our responsibility out to County Road 18. And I think Mike would attest to this.
Even the current section that we're responsible for that goes to all over the Fifteenth Avenue, that's something that the city of Moore had with that being a designated emergency route on their end. They've already gone out there and pretty well cleared it, and we don't typically have a ton of maintenance responsibilities at all with 30 Fourth Street. Anticipation is that would continue on even with this as well because they would go out and clear coming back down as well, but this does add Fifteenth Avenue from 30 Fourth Street over to County Row 9.
Mill and overlay, we are scheduled, you know, we just we're we're doing some work right now on 30 Fourth Street. The next big project that's slated to take place is in '27. That's what that's noted for right now. That's when, you know, they're, like, on a twenty year cycle to go back in and mill an overlay from the the 2005 project. And so our responsibility on the northbound lane would be about 166 k. Now keep in mind, that project itself is actually closer to, I think, like $1,900,000
I believe is what it is. However, as part of the maintenance agreement, we're applying we did receive STBG funding for this. So we have a lot of federal dollars that's being applied towards that roadway. In addition to that, as part of the contract, the city of Morehead has to apply MSA funds towards the project regardless of what side of the road it's on, hence why the total cost amount from Fifteenth Avenue or no. Actually, this project is going from practically Ditch 50 all the way to County,
Road 18. That's why our share is only a $166,000, which is a heck of a deal. And I also wanted to take note of the property tax estimate that would come about with all of these annexed areas. It would be around $90,000, And that number is what we received from the assessor's office based upon today assuming they're they develop in accordance with, I can't remember what the size of the development was,
like, say, a $15,000,000 structure and a $5,000,000 structure, just as an example, plus the farmland that would be brought into the city limits. Now obviously, you bring in these additional landowners they will be paying more taxes presumably or obviously because they will now be in the city limits and so they'll be subject to a city tax, which is gonna be more than what the, the county taxes them or what they receive from the townships. Do we know how much more? We do. And I can pull them up one by one if you need me to.
I guess if if I knew the general increase on ag land is about all I need. Do you have a do you have a sense of that off the top of your head, Don? Do you remember what she told you? I mean, I can pull them up here because I know there's lots of factors that go into it here. Julie? Well, I I mean, I get your point on this. Like, there's a concern that the properties in between are going to get taxed a bit more. Yeah. I'm curious to know how much they're Yeah. Which is gonna happen regardless whenever it gets annexed in. Right. And and again, lots of elements to weigh in on here,
and that's Mhmm. And we just temper I mean, we preliminary preliminarily agreed on a 9.7% increase for all of our residents. I mean, so we understand that the need for increases at times. But if we can minimize, increases at when and if at all possible, I think it's it's important to do so. So I didn't even get a chance to grab my calculator, but Do you want me to add them all up? Again, I'm just looking for an average percent increase. But like I said,
I mean, I got an I got an idea, and that's that's enough to get started, I think. I mean, from my vantage. Unless someone want counsel, does anybody want the math done? Roughly 13,000, isn't it? I'm again, from my perspective, I'm looking at the percentage increase, not Let's say 140%. Yeah. Six three Yep. I'd say 20%. That's a fair number. Again, there's lots of factors that vary in to it. It's not just a straight percentage. Eleven, twelve thousand. Right. Thank you. Yep. Mayor and council, I know you're going to have more questions on this, but I think there's such a depth and such a great opportunity for the city
to consider here. First of all, you have companies that are willing to be annexed and pay their assessments upfront to the city. The companies are willing to pay 25% of the cost of the 30 Fourth Street Road repayment by their accessing that road. At some point, those costs have to be paid. And if we don't, the interest rate the interest keeps rolling every year. Companies would contribute substantial taxes to the community. Initial bill out estimate of the two themselves is just under $70,000
The tolls from all properties we talked is probably pushing more like $90,000 but the two themselves are $70,000 a year. And it sets the stage in earnest to begin efforts to develop the Dilworth Energy Park. Next steps, of course, would be energy park design, EDA applications to get federal money to assist with other improvements in there and then recruitment of companies to fill the land. And we have a partner, where is he? Rich is right behind me and Red River Valley Co op pays for economic development services through and Melissa has been here before,
at our meetings. And so we'd have a partner to help recruit companies to help fill that land, increase our tax base and truly develop that industrial park. It is a unique opportunity for the city. If the council moves forward, there's really a concurrent process that would go along on with the 04/29 special assessment process as well as the annexation, which the city would look to initiate rather quickly here. And that the design and all that would go through up until the wintertime,
then it would get bid out with hopeful construction this time next year. There will also be some easement acquisitions that have to go along with this. That cost is actually within the contingency portion of the estimate, so that is already included in there. We would look to hire SRF to assist with those just like we did with the 30 Fourth Street project that we have ongoing currently as well. With that said, I can go back to and I know it's a lot of moving parts.
It's a lot to consider, and it's a very you know, just been about half an hour presenting this to you. But any questions that Don, Andrew or myself can answer, please let us know. And again, Rich with River Co op is here as well if you have any questions about them and their development timelines and things. Kevin, please get us started. Like, so we started with 1.3 for the waterline, 1,300,000.0 for the waterline. Right? And then added on to that is
600 k for the road. Mhmm. 630 k. Right? So we're at we're at $2,000,000 project. That's correct. Okay. And then it was another $4,000 that we have to pay to the townships, if I remember correctly. Correct. And then things start moving back. So, I mean, so we're at roughly $2,000,000 all in, right, if I'm understanding that correctly? Then that's how we're looking at to we're looking at it as, like, a 200 a $2,000,000 project. And the mill and overlay, we'd be on the hook for either way, if or only if we pull the trigger.
No. That's going to occur regardless Okay. There. And so that's how I would anticipate that going let's say nothing takes place at this time. We would be responsible, say, for eighty k of it up to Fifteenth Avenue. That additional 80 for that northbound would just probably get tacked on to that six thirty six number. Okay. But so, really, there's no way to mitigate that Correct. That one we're gonna do. Either way. Correct. And if we do pull the trigger, we're gonna generate 90 k in property taxes.
Correct. And we're also gonna come up with a payment plan to stop the $25,000 of interest we've been paying annually? So what I mean, obviously, the the interest is gonna keep rolling until we're whole with Morehead, but I'm motivated to that's So how how this would work, what you're, yeah, asking about right here. So this $25,000 that you see in interest, it's just annually. With their development going in, it's gonna reduce by 25%. So that's why we're at $18.09
now currently. Okay? And however, we we can structure this in a way that it doesn't. We can structure it to however we want. That's the sense I got from them as long as we start making payments towards it. So it's not like it's it's not don't think of, like, your traditional bank loan where you're making a Well, are they willing to forgive us the interest going forward? I mean, are they open to that? Well, I You know, I mean so I guess the point I'm trying to make is if we do nothing, we're going to keep accruing 25 sorry, YouTube. We're gonna keep accruing $25,000
for eighteen nine regard In perpetuity. Mhmm. Mhmm. Alright. Are there any other numbers that I didn't cover? I'm just trying to wrap my head around all this because, like, if we're gonna start generating 90 k in property taxes I mean, I understand that we're biting $2,000,000 worth of project off here, but there's also revenue streams. K. And are there any other numbers? Do you have any more slides? No. There's no other slides. The only other there will be some internal expenses. So from a legal perspective, not that there'll be a ton with Katy,
but there would be maybe some a little bit on that or just thinking about that going through my head. The resolution is pretty straightforward, but there'll have to be a little research on what the descriptions are when we're putting it all together. So it could be a little correspondence on that. So what's the gonna move the needle off of 2,000,000? No. It'd be a lot of things. Julie? So just a little background on how we with 30 Fourth Street. We paid for up to 50 so we haven't been paying that that interest because we didn't anticipate we figured within the lifetime of that road,
it was feasible we'd get to Fifteenth Avenue, which we haven't even got to yet. Right. Right? And so that's why we didn't pay the interest payment or anything on that because we figured, you know, life of that road is only at what most thirty years, and we're twenty years into it. And so, basically, we're paying for a road we never asked for or wanted, and now we're paying twenty years back. I my concern about paying that to them is you know, I don't even know if they're accessing off 30 Fourth Street or if they're accessing
off the County Road. Are you talking about their development? Yeah. They'll be accessing 30 Fourth Street. And that's really what they're paying for is that access. The access point. Yep. Because, again, it's like, I don't know if people come in or gonna wanna be along that County Road 18 versus 30 Fourth if anyone did would come in in addition. But, I mean, that's my concern about paying this to Moorhead and why we built that contract the way it was, was paying 800 and some thousand dollars to Moorhead for an old road at this point.
Clayton, can you go back back to that side, please? Because the to the $800,000 slide. Because that was that was the that's the crux of my question as well. Nope. Not that one. No. The road one where that one. Yes. Thank you. So as it sits right now with the agreement, we owe $850,000 for the road from Fifteenth Avenue to County Road 18. Correct. And and that's no matter what. If we But but that's that's the agreement, though. Correct? Yes. And how long is that agreement good for? It actually has extensions of years Yeah.
Way into most of the century next out. So so here's the agreement that we're this is the rules to the game. Right? You're gonna pay it. It's gonna decline. Expand it. Right? Because that agreement is not going away. And we made it in good faith with our neighbor. So it like, this is this is the rules. If we wanna ex extend Elworth North on 30 Fourth Street, that's the number. Ma'am, you're Please. Like, please So what makes this even more complicated is that what we need. A you know, normally,
when you do a special assessment, you can only especially assess for something for thirty years. At that time, you gotta write it off, and that's kind of the end of it. This isn't a special assessment. You know, this is not So When I'm saying special assessment, I'm talking about $4.29 process going through all that rigmarole. This is an access fee that's being charged in the form of an assessment. So I don't know without getting some kind of legal opinion if at the end to sort of your question, to get to your question there, if at year '31, so in year 2036,
if that would even come off the books. Yeah and go ahead Kevin you first. I guess if the thought was I mean obviously this is an opportunity that we nobody saw coming. Right? But here we are. So what do we do with it? And, Julie, I'm not blaming you for for making the deal. It was a good deal. Right? Like, if we don't build up there, then who cares? But if now, if the thought is, like, well, we can't do anything until it sunsets, what's it gonna cost to redo the road? You know? Like It ain't going away.
Is no. It's it's 850 now. What is it in eleven years? So I my concern was it's not, yeah, what it is now, but it's that plus redoing the road. That because we're buying an old road. So that was my concern is, like, now what is the cost of that? Like, if it's not just a mill and overlay. Yeah. I don't know. That's Sure. Where the concern lies. And and then we have to get into the the nuts and bolts of the maintenance agreement again then. Correct? Because if this is access, access and maintenance are two different things.
Mhmm. And as as we look at that and if we operate under this, because that that's where my head at. That that's where my head is at, because I remember doing this with Aldi. It's like, what is it gonna cost us for the access to get the business and give them the access that we want? And and a a great point was made because we do have a unique opportunity where we have a business who's willing to invest their money upfront for this, and that's virtually unheard of. And and I'm thankful for that. I to me, it's it's just it is. It's a they're two separate issues.
I know they're they're intimately connected. But if we don't, I'm also worried about the 850 plus if the road gets fixed. Do we have another access agreement in addition to maintenance costs? And then that $8,850 becomes one point five or two point whatever million dollars that access 30 Fourth Street. Well, if we pay the $8.50, that that goes away, doesn't it? Mhmm. Yeah. So the Then So but that means we have to move forward. Correct? We have.
Andrew, if they maybe you can help answer this question. So if they do the mill and overlay on 30 Fourth, how much life does that buy for the future considering we now have a multiyear time period to pay back the original amount for the old road? Yeah. Usually, with with a mill and overlay, we would, expect a fifteen to twenty year extension of life. So in that time period, we'd be able to pay for the Old Road, pay for the $1.66 k that's costing for the overlay, and continue development of the property having full access to it for our industrial park.
Without more Yes. Fees? Yes. And then every access on the 30 Fourth Street would go towards reducing the $6.36. So so the as it stands right now, from Fifteenth Avenue to County Road 18, there's no access for Dilworth Correct. On on that side of the road. And what we're seeing here is the proposal for the first access in that northern section. Yes. And that's gonna reduce the overall payment by whatever it is.
Bring it down to $6.36. Now there are additional accesses in between there. Accesses? Correct. If there are additional, driveways if there are additional driveways, that will reduce I mean, we'll have the same conversation. Right? Potentially? It is. You know, I would also I think we would have flexible the city would have I think we would control it at that point, which that's kinda how we have right now on the Fifth the part up to Fifteenth Avenue. Mhmm. We control that. So, technically, if we had another business looking to go in that vacant spot between Fifteenth and
Aldi right there, we would reserve the right to recoup those calls that we paid to Morehead if we want to. Right. That's the I think, yes, in effect, to answer your question, yes. But I think it's how we would want to administrate that at that time. Julie? Yeah. Like, how would we do that? Because, I mean, like, Morehead's kinda put this in process that everyone that wants access, they've done that. We didn't go through any kind of 04/29 process. We did not. And so can we even recoup that cost from the landowner? Is that one once we pay it,
do we have the ability to recoup that cost? We Okay. We we we could through the use of development agreements with the property owners and the people that wanna develop that, and we might end up being a part in developing some of it. And we'll recoup from our own sales of land if we get in end up being a broker with industrial park lots and that kind of thing. But in the meantime, no. Development will all be done through development agreements, and we can decide if any you know, if what any if anything will,
you know, require back as first payment towards these fees that we have to pay for the old road. K. So let's say whatever goes in between Fifteenth and your new industrial park or energy park doesn't want access off 34. Then the rest of the city would just be handling reimbursing those I mean, we wouldn't be able to recoup it recoup it at all then. Right? We still control the subdivision and development of that land through our regulatory processes. And you know that?
And Mr. Steichen? Well, it looks like the mill and overlay is going to happen not somewhat near future. So that's kinda other than that, adds to the total cost. In referencing to we got a road we didn't want, but look at the look at all the revenue it brings in. I mean, I drive that road every day, and there's, I don't know, hundreds of thousands of cars that go to Walmart. I mean, it's because that road's there. I mean, it's not really fair to say we got a road we didn't want. Probably didn't realize how much we did need it. But I understand the idea of an old road,
but to pass up an opportunity to have a major developer willing to, you know, with the rep with the property tax is going to bring in, I don't know how you could ever pass up on that. And it's not like just a small little too little thing going up there. It's a major major investment on their part, and it's only gonna spur, you know, likely more probably major things as well. So, it just seems I know it's a lot to put together, a lot of dollars to think about, but part of it has to be done either way.
The other part, looks like you're gonna, you know, chisel away at that $1,300,000 fairly quickly, I mean, in the scheme of things. So I was just wondering, you mentioned that depending on the water usage up there, is 10 inch a standard size? What's the next larger size? 12 inch would be because that's, like, 30% more volume of water. Is there a huge because, you know, you think of, like, Mayor Olson said, in the future, you don't wanna redo it. And you gotta have some laterals or some other looping in there. Is it wrong to think about going to 12 inch considering there might be heavy
user up there or if you need to branch off, into that. It doesn't depend on how far back it goes to Highway 10 or, like, you know what I mean? It Well, I mean, there's the cost of 10 inch versus 12. Most of the cost is involved with the groundwork, obviously. I'm guessing the 12 inch, 10 inch, that's a pretty minimal cost. It's not yeah. It's to your point, it's not 30% more for the for the volume. Right? There there are a couple of considerations that we we take into account when we're looking at something like this,
and that is I'm gonna exaggerate here, but you put a 24 inch pipe in the ground. And what you you can deal with with water age as as the bigger the pipe is, the longer the the water sits in the pipe. And it it's not good for potable use because chlorine breaks down over time and that kind of thing. So there is a little bit of a trade off with the the demand for the volume of water and also the the quality of it at the end user.
And so that's what we're trying to balance. But certainly to your point, and I'm getting a little off subject here, but to your point, there's not a huge cost difference between a 10 and a 12 inch pipe in the initial install. So you answered some questions I wasn't even aware of being answered. So I do appreciate that. I understand exactly. I'm not trying to be an engineer, obviously. So it's just a question that's allowed. Appreciate it. I was not thinking about portability of water at any point in time. Like, water what do you call it? Water age in the pipe?
Yeah. Mhmm. Yeah. That's an outstanding stat. More sedimentation, all that stuff. So That's why we have backflow of renters. Right? Yeah. Right. So here's here's the question, Peyton. I mean, and then I this is what this I mean, that's it. This if we order the the preparation number of the report, that's gonna give us the more concrete numbers. Correct? Is that where we're at? Yes. Though I'd say Andrew feels pretty calm. It's I don't know if that's gonna change much on the PER itself. They've done quite a bit of work already on this.
And and I guess the the reason I asked that question is I I'm just looking at the the the complete picture because, you know, I've got four different line items of cost figures and everything like that. And at the end of the day, I just want to know what it's going to cost and how we're going to pay for it. Yes? And again, I know we're talking about the annexation of the properties, but along with that and I put that chart in your staff report about what would be assessed to those properties as well. So it's a whole other consideration. Now granted, it's a deferred assessment that we would be picking up for the time being,
but that is a whole other consideration that I I can't say first I don't know what the reaction will be from the landowners up there if they will be happy about this because it does bring value more to their property potentially or if they just view it as something that they just do not want for the time being. Julie? So follow-up to that. So I know we don't have to because we have the orderly annexation agreement. But if all the property owners are against it, the option then I mean
I mean, it's a huge increase for these property owners. Correct. Just in property taxes. Right. Just in property taxes with no benefit I mean, potential future benefit to the property, but not for farmland. I mean, that's where my concern is. Again, it's a big ask for the city, for us. I mean, we we just went through the budget process, huge increase. This is additional burden on the city, like, the impact that we're gonna have to pick up in the coming years. So That's what I'm looking at. Like but I'm also looking at it's an opportunity.
Right? Because this would be a substantial benefit as well and almost an immediate benefit. For I'm sorry. Like but you mean, like, back? I'm it's not gonna cover the cost. Right? No. No. No. No. Very, very. No. That's not what I'm saying at all. But at some point in time, we have to start. Right? We have to make the investment. At some point, like, if if we're looking at growing, we we spend a lot of time on residential growth. The commercial in terms of retail, like, we we we seem to applaud that. Well, like, here's an opportunity, I I think, to to grow a part where we haven't really,
really had an opportunity to grow a segment of our economy where we haven't. And we have willing partners that and and it does it is it gonna bear fruit in the next season? Maybe not. But it's gonna be the seed that's planted that over time, will take will take root. And and I I'm gonna use, the the U Haul as an example because we had that opportunity sitting there, and then it I mean, it took most of our lifetime, and, hopefully, it doesn't take another one to fill this in. But looking at it, it's an opportunity. We have the transportation. We get the water up there.
It's the I I like the idea. I just wanna know the numbers. I wanna know how we're gonna pay for it. I wanna know what that increase looks like, because it is. It's it's an ask. But deferments, I mean, we see them when we do residential. We see them in our TIF districts. We see them in we have a deferment of some type across the board when we do new things. I I put this in a very similar category. It's quiet. I was like, go ahead, Kevin. I'm like, I didn't call the question. Just one I mean, I I wanna just make sure that I'm understanding this all correctly.
I broke down the numbers earlier. We're looking at roughly a $2,000,000 all in project that, if I understood correctly, we're looking at, like, a a $19,000 levy hit. Right? That would be an option, yeah, way of doing it. That that's just what I talked over with Morehead to And that's something like that. Is that is that all loans considered? Say say they gave me a car. So that's that's only the road. Right? We'd still need to The project. We'd still need to finance the water line. Correct. And that's I'm sorry,
just to clarify, that's only 19,000 for the first year. Correct. Every year it goes up. 19,000. And then it will be paid off. That 636,000 will be paid off. Is that the goal? Yes. In eight years. Do it going that option or another option, I'd float it out. Or if we have any other creative solutions to, which is to pay that interest, that 18 that $19,000 every year, that only. And then year eleven, pay the full balance off at that time. If no one develops Yes.
Between here and there in the next eleven years. Correct. We would need it we need to identify sources to where that money is gonna come from. Correct? That that's what I was saying. I think you would almost just wanna set up a 30 and we already kinda have a 30 Fourth Street account already that we're doing for our other project currently. So maybe that just becomes your 30 Fourth Street account knowing you're gonna have multiple projects coming in and out of it in perpetuity or goes into the road fund, whatever, however you wanna look at it there. And so that's the road cost.
Yes. And then the project cost. It is 1.3. Yes. Let me scroll back, and and that number is approximately what? The 1.3. And this is an example and again don't give me the don't get too caught up on the numbers because realistically how this would work we showed well this is how the loan payment would rework but as far as like property tax revenue being generated and if I understand correctly and correct me on this Rich, but RESCO's intent is to start in the spring, this coming spring and they would be operational basically in the timeline of our Community
Center '27 December 27 so that means '28 would be the first year we would start recouping the revenue and I think you're maybe knock on something about a year behind then. Right. We're later. Okay. Perfect. So then when we're again, we got the 1.3, but then my my question is because we're gonna have to bond for this. Yes. Right? And so what's what are we looking at for if, again, using the point 6% we saw for levy increase for the road, what percentage increase would this be today's dollars
on on our overall budget? 1.3 divided by 30 times Well, because this I mean, we're also we're looking at This is is this what you're asking right here? And is that is that gonna be our our payment on on the loan for the project? It it's an estimate. Yes. Right. But but that's that's I mean, that's ultimately, that's what it is until we solidify the numbers. Yep. And then the plan would be to use the property taxes to direct or is that is that a plan? Is that a possibility? That's a possibility. Again, I didn't wanna commit to saying we're devoting property taxes towards this or property taxes
towards the road repayment 18.9. However, or this would those payments would come out of the water fund or however you want to look at it. I don't know if we would have the exact formula in place until we actually bid out the project, similar of how we're gonna have to do our community center project. And so I'm sorry, Kevin. Just and, again, I I didn't mean to jump the gun or, you know, unilaterally allocate payment. To me, I was just thinking, okay. So we're gonna generate 80,000 and but we have to pay, whatever, 76? It'll be this number right here, I assume. Right,
Perry? Yep. The top one, the $93,000 number a year. That's the that's the revenue. Well, what he's saying what Perry is saying you You wanna explain it, Perry? Oh, right. It's a loan. The bottom part is a loan. So I use one example of borrowing, $755,000 Yes. Over ten years or do it over eight years. And I just looked at a couple of examples between a 100 and a $116,000 payment. Mhmm. You go ten between eight and ten years. Principal and interest,
total number, $100,100 to a 116,000. And that would be then no bonding. This would be using 500 k of reserve out of the water bond. And if we could go 600, I could go 400. I could I could work more on those numbers. I just take 500,000 out of reserves. So it's it's that number plus the pricing, the principal and interest. That's what our annual Right. This is would be. This is the water pipe plus 19 k for the road. Right. So No. Vary about two or three years.
The lines cross. This is just the this is just the this is the water. This is the water. Right. But Plus Well on top of this is another 19 k for the road. You still have the road. Which is the road that I I'm just trying to You have the road here regardless. Yep. This will cross the lines cross on this in about two to three years fiscally. The taxes will go ahead of the payments. So for the water For the water. For the water project. For the water. Yes. So when we're talking about the main the water main that's gonna run up 30 Fourth Street and stop at
the the new Energy Park property. It's about $1,300,000, and the income versus the expenditure should cross Two to three years. About $3.03 years. Three years. Yeah. The taxes will Full taxes go on that property. To me, that's easy enough. So I understand it. Social studies. Social studies. But that makes sense to me. Right? I mean, because because that that's my big question is is how does it how do we fund it? How does it make sense? Because at the end of the day, I mean, it's not our money. It belongs to the taxpayers. Yes. Pretty small risk. If if the engineer's estimate is right and the arithmetic works out,
it seems like it's a safe investment. And Andrew did commit to anything that he misses it by that, more will cover the I like that. Here's a So this option is not bonding. It's just a loan. So I'm trying to make that sense. So we wouldn't be paying interest. We're not going to the bonding to others through that with this option. It'd be locally placed. This would be like going to Northwestern, just like how we're paying for a fire truck. Okay. So you would still pay interest on it, but we're not going through the whole rigor. We're all doing it. Okay. Yeah. With Nick and them.
Okay. So other questions? Julie? I don't have a question, but just to clarify. So it makes sense that at least we're recouping to cover the waterline. But the road cost is 19,000 year one, but if I have this right by year 11, we're paying 209,000 a year. So it's like to to pay that amount in full, just so you understand, we're taking on that debt. It's 19,000 in year one. And then by year 11, it's an additional 200,000 that we have to come up with from the city to pay for it. But then it's paid for.
Correct? That debt is retired? It's retired, and then at that point, we'll be doing new road work. Kinda like every other road that we drive on in this town. It's not unique to 30 Fourth Street. It's it's a unique situation. I I get that. I mean, it really it really and truly is. But, I mean, we have I mean, road repair, replacement, like I mean, can't we recoup some of that as it fills in in between here and there too? If hopefully, if that's what councils decide to do. You know?
Again, I'm optimistic. Understand what you're saying. Me too, Juliet. It's the the the black and the white of it is, yes, we're we're taking on that amount of debt. And if nothing happens in year eleven, we'd be paying 200 k to finish it off. But I I don't know. I you know? It's field of dreams too. Right? Well, I'm looking at the current balance that we already owe $8.50, and that's not going away. And I and I am concerned that if if we don't do anything and the road gets fixed, we're it's gonna be more.
Like, that's the reality. At some point, you have to deal with the the road, the cost, and stop the interest, which is bleeding over time. That has to happen at some point. This is an opportunity to move that land closer to development, to to move that time frame closer to getting the land developed and recouping some of that money back for the citizens of Delaware. And I'd also like to say, even if the city council decides not to do anything with this, not extend the water, They're still moving in regardless there that location, so that balance is gonna go to that $6.36
number. It still might be something that we want to explore to still continue paying that interest or working out something with the city of Morehead so that doesn't continue to balloon on us. I'm starting to move closer to you guys. I'll say I was way far away. Not the distance between. Not the distance between Resco and our city limits. And looking at this, initially, it was like, how do we afford this? Right? It was a big question of mine, like, because you've start putting all those numbers together. But as as I start looking and part of it is what are we gonna do in the future is how do we afford not to do this?
I mean, it it's it's easy to add up the math and say, well, this is what it's gonna cost. And the the harder question is what does it cost if we don't? Well, it is a unique opportunity. Again, they're willing to pay their assessments for the water upfront. They will be paying 25% of the cost for the old road. They will be contributing up to $70,000 of taxes a year. How and, mayor, you said yourself, how many projects do you find that'll do that? And, again, I just we're taking on a lot besides that because now we've we'll be inheriting another road
that we don't even own Road 2. Right? Well, except for if we come up 30 Fourth Street now, we'll own all that, I guess. Except for 30 Fourth Street is not ours. It's not. We just agree to maintain part of it. Correct. Mike loves the rules. I'm just like He's just asking me if we get some more get some more of it. Right? I mean, because right now, the county takes care of all that out, and and so now you have to figure out how to get out there in advance of everything else unless we can work out. I'm hoping 30 Fourth Street in Morehead will continue because they're twenty four hours and
we are not. So usually, they're on 30 Fourth Street Way before we are. Oh, but the county did Fifteenth. The county had a contract for Fifteenth. I So It's just a big I'm just saying. It's it's not just this. It's we're taking on a lot. We're annexing. We're asking farmers to pay a lot more. It's just a big ask. And I just wanna acknowledge that, that it's a big ask of everyone else to make this project happen. Most projects are big ask. I agree. And that's I'm gonna ask, like, what the increase the ag land is gonna be.
How does that work out? I didn't ask the question. Is there another way that we get the water up there? Right? But I was told, like, is, like, I've asked that question a lot. Like, I mean, obviously, that's that's part of the game, but, you know, how else do we do it? You know, how how else how else do we get water up there? How else do we do it? I mean, again, it's it's a big it's also our responsibility. That's that's why we've been that's why we ran for a public office, and that's that's our job is to responsibly grow the city. Okay. Annexation. It is. It's it's substantial across the board.
The court Percentage wise, it's about 25% of our Do you have any idea what our acreage is of the city right now, square miles? I think you asked me that one time. It's Yeah. I don't remember. Whatever, but it's big. 200. There it is. And I guess, like, I'm also no. There's, like, nine questions going through my head right now. Well, you know, as staffs has discussed, in the perfect world, we would have had them develop right out of off of fifteenth. Obviously, I'm sure that's one of the things running through your head. No. But it is what it is. You have to deal with it as it is.
But, again, the inputs that they're bringing in. But what you also have to weigh out are the tax increases for these farmers. I mean, without you're gonna have a hearing. They're gonna be hearing and have that discussion with you, so you gotta weigh all that out. And even though the improvement here is strictly about the improvement itself and Oh. Theoretically, you have or not theoretically, but you can annex the land without asking or saying anything that is but it's still a consideration as a part of it all. 100%. Right? And and and I get that to say they're separate,
but for their purposes, it's not gonna be seen that way. Yeah. And and the process needs needs to be embraced. Right? The the communication needs to be had, and and that's that's the reality. And at some point in time, whether it's the council sitting here in 2025 or 02/1945, that's gonna fill and it's gonna develop. Right? It's gonna transition. When when you own Pig Land next to a city, at some point in time, you're either gonna want to sell it or or or develop it. We're we're seeing that right now. That corridor will develop because it's a developable area.
It doesn't have the aquifer or anything to deal with. I mean, there isn't that much land that close to the Moorhead or Dilworth that's in such a position to be developed as that is right now. Mister Steichen? Question regarding annexation, and it's going to jump the, Eggland cost. Is there any way legally or morally or with courtesy to cut them a break for a period of time. That's up to the council. It's like $11,000. If you wanted to do some kind of, start with the knockdown or something like that.
If that's a sticking point, it would relieve them of that worry. Well, it's not just worry. It's a reality. Question for Katie, but I do think that that's possible. Yeah. That would be pretty simple. I mean, it's pretty cheap, actually, considering what we might be passing up. Yeah. Well, you you'd wanna do it, but I'd say within five years, you know, whatever you can work out. You know, some kind of a percentage knockdown each year. Start at a level and work your way down. Something to to relieve the hit a little bit. Thank you, Mary. That that is something I wanna check with her on. I'm not exactly sure because when we get into abating or tax exemptions,
there might be some other weird avenues that you have to go through. I don't know if we can arbitrarily set Well, I'd love to see if I could do a research on it. The flip the flip to that, though, is if you do it for one, you have other developers. Yeah. Just consider that too. But this is such a massive It's true. Project up there. It's very unique, and the council of doing one thing does not tie you to a future thing. You're under no obligation. And I do. I appreciate all the conversation. I think it's been great. I I don't know if we're any closer or further away, Julie. But but it is I mean,
it's it's an exciting opportunity, to to work for the city of Delaware. It it really truly is because, we're presented with an opportunity. Does it come with cost? Yes. Does it come with some risk? Yes. Is it gonna be perfect? No. But I am confident I am confident that we can figure it out. I mean, everything from how we finance it to how we how we clear the roads. And if there's no other questions or comments, I'm I'm going to call the question. Are there any questions or comments regarding, resolution twenty five fifty two ordering the preparation report on a water main infrastructure improvement,
as stated in our resolution. I move. Alright. I have a motion by Steichen. Second. Second by Peterson. All those in favor, say aye. Aye. Opposed? Motion carries. Here we go. Here we go. Moves us to seven bravo, the discussion for the LRIP grant. Peyton? Thank you, mayor, members of the council. Now for our next thing that you can consider spending money on is our LRIP grant submission. I'll let Andrew pretty much handle this one here. But, Andrew, if you wanna take over and kinda review what it is that we're submitting an
application for if the council so desires. The local road improvement program is the program that, the Seventh Street project received a million and a half dollars for the reconstruction a few years ago. It's a program that the Department of Transportation administers, for projects that are either there's a couple of different categories, but, the application period is up here this fall, and, they're looking for project submittals. So, the the most, competitive project for for Dilworth is this,
extension of Fourth Avenue Northeast, kind of starting where the community center location will be, and then over to Sixtieth Street and then south down to Highway 10. Part of the, the the project has to be a 10 ton road that's connected to a, trunk highway corridor or it's a route of regional significance, which means it's it's connected to something like a Highway 10 corridor. And so discussed this with Peyton and we came up with a preliminary estimate of about just
under $2,000,000 The eligible local road improvement amount is is actually, just a hair over $1,500,000 but the cap on a LRIP grant is $1,500,000 So the eligible amount would be $1,500,000 which would leave a city share of of just under half a million dollars These projects are competitively, scored and typically, there'll be a couple of projects that are sprinkled among each DOT district. The awards would be announced in the spring of next spring,
and there would be a construction project in 2027. The maybe one other, one other thing to point out is, we would if this is a project that the Council wishes to, proceed with, the idea would be that Fourth Avenue would be constructed to the east as an urban section, but Sixtieth Street would not be an urban section. It would just be improved as a rural section to the, to the to support the the traffic that would be required for this this particular project. But that would stay rural,
no curb and gutter. It would still have the the ditches on the side. Couple other things I wanted to know. Since we're under 5,000 people, this will still require a county sponsorship. I think we were talking about that at last week's meeting with the county and the estimated city share now this would be more broken out once we got to further on down the road here, but for the Fourth Avenue portion assuming that you would do it just like you did this one here would be a split cost that goes to the north and
to the South and and for a new roadway that is not that is 100% assessed, to the property owners to the North and to the South and then we I think this would be a pretty much full city cost right here at that time where we just have to evaluate that how it's gonna work but this portion of Fourth Avenue which is your more costly portion Yes. Would be something that would be specially assessed. Questions from counsel? And and the other thing to mayor and council members, when trying to decide what projects to do, we don't have a ton that we felt at this time would be a good
project to bid on, maybe in a couple years when we're talking about Fifteenth Avenue that where we already have some federal dollars, maybe we would package it with that, but that's that's still another funding cycle away and my viewpoint on this, I don't know if Fourth Avenue has to go in for the ultimately long term we want Fourth Avenue and Sixtieth Street to be done. I'm not sure if that's going to impact anything with the current community center setup that we have, it's just looking out for the future of the entire area over there.
Also supporting the community center, but it can, in my estimation, it'll be able to function how we intended to, with or without this roadway. So that's the reason why we went on to put forward an application at this time. If we get the money, that's great. And if we don't, I think things will still work out just fine out there. Questions? I'll just ask. So we're gonna build a a a road that was, like, the Seventh Street that we just redid? Because that's what sick that's what the No. Is it I mean, because it's gonna be an urban or a rural roadway on Talking about Sixtieth.
Sixtieth. Right? So it'd be like the old school Seventh Street that way. Truthfully, I don't know what, what the original Seventh Street was built to. K. But, yes, from the from the the view, it's going it would look similar. Yeah. It's it wouldn't have curb and gutter. Which That's that's not to say you couldn't you could put curb and gutter in there. It's just that would that would increase the Right. With the price tag, it's it's almost palatable with everything else that we've been talking about lately. It's like, good lord. We can get we can actually connect Fourth Street to Highway 10 for approximately half a million dollars of our right?
Rough. Well, no. That $4.70, property owners are responsible for it. Right. Yeah. I mean solve. So but I but it that's what stuck in my head is the the rural roadway, which okay. It makes sense because it it will be on our east side. And, Peyton, it's no functionality for the community center will be good, but we are proposing this and moving this forward. I wanna get an application in, and so this is what I thought would be the best utilization of it at this time, at least. Okay. So here's my question because you brought up we're under 5,000. Once we hit 5,000,
we get we can get a little bit of state money for designated roadways. Correct. Is this gonna be of that quality where some of that money in the future will be able to be used for this? And how do we look at the roads that we're about to build meeting the criteria to use those state additional state dollars? Now those dollars can only be used for functionally class roadways. I don't know what that means. So Yep. So for Fourth Avenue, it will be considered functionally class roadway. K. And Sixtieth Avenue or Sixtieth Street long term would be as well.
K. But functionally class roadways, like, Fourteenth, then, it's your major roadways in the house. That's the only things those funds are eligible for. So not like Third Street in front of my house. Correct. We cannot use those for that. But Fourteenth and Sixtieth were their major Yes. Not Fourteenth. What's Fourteenth? Fourth Avenue. Fourth Avenue. Sixtieth. Fourteenth would be. Oh, yeah. It is. Yep. Yep. Okay. It it only goes up because it has to connect to another functioning class roadway. That's the rules on it. Okay. So 14 up to Fourth Avenue. Nothing beyond there until the time being until Fifteenth Avenue would come in k.
Or Eighth Avenue, I guess. So so that would and, again, at least, again, from from my, like, perspective and understanding, like, we're we're putting in roads. Ultimately, we'll be able to have revenues to put directly towards those roads, freeing up other mines to be used locally as well. Okay. So it makes sense in my end. I appreciate that. Thank you. Are there any other questions from counsel? Go ahead, David. Well, I just was kind of curious about you said this is very competitive, this grant rate, And you need three letters of support and everything that's involved with that.
But would this I like the idea to have a road over there and people helping to pay for it. Would would this enter into having something in place prior to Highway 10 being reconstructed? Is that would that weigh in on their decision making? That's a good question. The Highway 10 project is gonna stop short of Sixtieth. Yeah. Like, Fourteenth Street was, like, there. Correct. Now Yes. If I can chime in. I don't know if it'll impact their decision, but that'll certainly be part of our application process because that was identified when we
did the Highway 10 study is finding alternative routes to get around the community and having that point at sixtieth. That's ideal. Could you leave my alleviate some traffic, Kevin? Just so I understand it all fully too. Like, the only way we're on the hook for any of this is if we actually get accepted for the the grant. And he met that, saying, yes. We wanna do it. Okay. So We're we're not out anything by pushing this forward. We're not we're not married to anything. Correct. Just Andrew's,
on it thus far. And That's fine. Yeah. Going on. I heard But, yeah, like, if in a couple, yeah, in a couple years, it say that project totals $3,100,000 or something. We just don't think we can do it, this time next year, then we would have to reevaluate then. Okay. Any other questions? No. Thank you. So with this, Payton, you want a formal motion? Yes. Just, some if you're wanting to move forward with it, just something that authorizes Andrew and I to get the application called. And part of that,
there will be a resolution here in a month or so that will come back supporting this project, and we'll get in contact with the county as well to pass the resolution. Alright. Thank you, Ben. With are there any other questions? Hearing none, I will entertain a motion for, the submission of the LRIP grant. Steichen, so moved. Motion by Steichen. Second. Second by Peterson. All those in favor, say aye. Aye. Opposed? Motion carries. Thank you, Andrew. I appreciate it. Thanks for being here. Makes helps me make sense of numbers.
With that, it does move us to number eight, police department eight alpha. Appreciate it. We have the discussion, the update, joint memorandum of understanding between the cities of Dilworth, Glendon, Holly, Barnesville, and the Clay County for dispatch services. Peyton, you wanna start us off? I do. And thank you, mayor and members of council. I just wanna give a quick update on this. I wasn't really wanting to get into much of a debate or anything over it. Just wanted to give you an idea of where this currently stands. So we have a contract, with as most of you know, we have a a contract with Clay County for dispatch services,
which runs through Red River dispatch out of Fargo. And this agreement originally began in 2008 with all the rural cities, us, Barnesville, Glendon and Holly, to provide the services the service. And the service is really broken down into two different parts. There's the CAD RMS. And quickly, explain what CAD RMS is. It's our license for each of our computers that we use.
Okay. And then, then operational costs as well. And one thing, if you look back that resolution that submitted in your packet, that's been a topic of discussion and, I guess, a little frustration on the city's end before has been the operational component that's paid because we also receive a tax for, nine one one services. Everyone does in the county, and, that's, in our estimation, what we feel those operational costs should be covering.
And so from the viewpoint going back to when that original resolution was adopted, prior to me even beginning, was that it's almost we view it as a double taxation on a service that we're receiving. So if you live in City A and one house over is outside of the city limits, you're receiving the same level of service but you're paying again because you're part of said city and that payment that we make for the operational cost it's not something every county does
you know this is it I'm not saying there aren't cities and counties that also have similar type agreements as well, but from what I understand, that's not commonplace for us to be receiving operational charge as well for it. We've been having discussions internally as city administrators of each of the cities and how to proceed forward. I know Mayor Olson sat on like an ad hoc committee with other mayors and elected officials from other from these other cities and spoken also with Clay County as
well through the years about this charge and it's just continued on. And so with the current contract with Clay County expires at the end of next year. So we're already under a contractual obligation with them, which our cost next year will be approximately $100,000 dollars 80,000 plus or minus is what that operational cost charge is to us. And then the rest is what, chief Rawson was talking about, the CAD RMS, which there's no objections to paying that charge.
We're standing for the licensing of the equipment that we're fully accepting of that. There's that operational cost piece that we're trying to continue on the dialogue with, Clay County on and maybe offering up solutions, potentially working that number down over the course of the next contract cycle in hopes of, whittling it down to 0% or to a more agreeable number, we'll say. So with that said, there's nothing final at this point with it all. I just wanted to provide the council just a brief update because I know,
obviously, mayor Olsen, vice mayor Nash have been around since basically the beginning of this agreement but we have other council members that were not and so I just wanted that's why it was felt as appropriate to at least just give you a little contextual background with all of this So in the event anything else is brought forward to the city in the coming weeks or what comes out of subsequent discussions that we may have with the county that you would be fully in the dark about it all. Thank you, Peyton. Chief, did you have something as you moved up?
No. I don't know. Thank you. I'm just here to answer any questions. I I appreciate that. Peyton, I appreciate the leadership that you've taken on this as, you know, as we sat with other we we met with city administrators and elected officials and then really look to have a unified voice in terms of working through the next this contract is set, but working into the next contract cycle to where, like like Peyton said, like, reducing our our costs, in a manner that's responsible and shows partnership and good faith with all parties involved.
And, honestly, our our neighbors and partners in this really look to Peyton, for his leadership, and it's taken over. I think it's gone well. And I'm looking forward to actually having a resolution, and moving us forward, in that next contract cycle. So I don't know what you need from us, Payton, if you have any questions, from counsel. Kevin? What does, we're currently through Red River dispatch. Right? Yes. What's their opinion? So I I have honestly, I have no idea what the dispatch authority would would really think because it's it's unique how it's how it's offered. Like,
in North Dakota, it's completely county funded, county driven. So it's that's just how they operate in in North Dakota on this side. I don't know if they have any idea of our voice because we don't have an elected official that sits on that on that board. Yeah. So, to that, I can't I cannot speak to to their position. And in terms of operation, I don't think it's going to impact them. Like, they'll continue going on county, you know, but through a county driven, cooperation and and they'll continue to provide service?
That is correct. Yeah. There is no other issues. I don't see any dispatch services will be the same or better as they are now? The same. As our citizens are also in Clay County, I don't see any reduction services. That's all I got. And then we continue to have the conversation. Do you need anything from counsel this evening? Continue moving forward. I think the next step, assuming there is one, would be some type of unified resolution that we've been working towards as a group and just in continue to engage,
the county in the dialogue. And there's a lot of factors too that go into that in my casting's version one way or the other. But I know the county, and I think they've talked about this at the rural cities meeting about advocating for more funding at the state level, to, you know, recoup some of those nine one one fees. I don't really understand or know all the mechanics of that behind the scenes. I'll just be honest with you. But I know it's something they're trying to work towards as well just on the state funding side. Yeah. And I'm going to give credit to the commissioners that are pushing,
our legislators with representative Joy, really pushing. And in in a simplified social studies version, there's a nine one one tax on every cell phone. And there's just a question as to where do those taxes go. And that's that's a legitimate and fair question to our our state legislators. And they're not getting an answer. So, again, that that would be a a distinct source of funding that the county could use for, dispatch center nine one one and I was just gonna add to that. Exactly what mayor Wilson said is true. It's it's just it's out there. They can't get their hands on it, and they're not really explaining where the money is and what it's used for.
So, yeah, we're all paying for it. Right. Yeah. So But we appreciate all the county's work in pushing for this, and we'll continue to advocate on others by their side of that. Are there any other questions? And, Peyton, you have enough direction as we move forward? All right. Again, thank you for bringing that up. Again, an ongoing conversation, and it's going to be something we're looking at over the next eighteen months to see where it takes us. Right now, we're taking this to number nine. Council members' concerns, committee updates are on the horn. Thank you, Chief. Mike, I saw that,
looks like they're they'd finished up with the culvert project. All the blacktops in, Pretty darn close if if they're not completely done. Between you two, can can we get a a timeline again for the bridge and, also the proposed stoplight out in front of, just north of Kwik Trip here. They did just as an aside, I get they get the number back. I guess they did get bit out, and I can't remember what they said the number was. A 190,000, 180,000, whatever the number is.
For the traffic light? Yep. For the traffic signal. They're and, yeah, I'm not sure when they're doing the pre con and all that, but their intent was to have that in by the end of this month or before quick trip evens. And, yeah, and I can send another email to the city engineer over in Morehead and and even per the CEO. The change order, October 18 is when the bridge is supposed to be done, but I can still see if they can get a more accurate accurate update. So let's let's hope it's the eighteenth. That's five days from now. Yep. That'd be fantastic.
That's all I got. Thank you, Kevin. Mister Steichen. Yeah. I drove down First Avenue Road. It's open. You can shoot across. I mean, one lane right now, but it's kinda fun to see another In Moorhead, I don't know. In Moorhead. I'm sorry. In Moorhead. In Moorhead. Yep. So, it's fun to see the progress there. The city and county meeting that was held last Tuesday, it's always interesting to see the small towns that show up, what they're working on, what they hope for, what they got plans for,
and all that. So one thing really exciting for when, Peyton and their Olsen does well do well when they, advocate, for what we've been working on. So appreciate that. But Glennon is like in line. It's exciting to have a Glennon do well too. They're getting a 36 bed assisted living, built in their town, so that's pretty neat for the people living there. So good job for Glendon on that. The fire hall project had the ribbon cutting today, and that was exciting. And lots of people there. Lots of well,
it's a chamber event, so they did well in promoting it and, got to hear speakers. And mayor Olsen spoke and and a few other people. So, he always does a good job. Lots of people there that were there for the first time and didn't have a chance at other times to get there. So, so shout out to the firefighters, Kevin, and everybody else for having it looking very nice, very clean, very impressive, and they did a very good job of, explaining and talking about, what's going on and the need for it.
So appreciate that. Julie? Yeah. It it's fun to see the fire department. I mean, now we've we've done it's ribbon cutting. We're ready to go. Right? It's so hopefully everything is done and everything. But I would say it was nice, and I don't know if it was because we invited the rural cities to our new facility, but it was nice to see, so many of our neighbors that showed up. So you actually got to hear what was going on in the neighboring cities instead of just What was, like, happening in the county. And so I did appreciate that. That was,
great. Yeah. Other than that, I don't think I have anything. Thank you, Dylan. Peyton? I just did a post on this. Mayor for a day contest is up and going through the League of Minnesota Cities. I think you went up to a $100, be featured in the LMC magazine if you win. Last year, was it Grace, I believe it was, or the year before? Pretty awesome. Yep. Yep. Grace was mayor for the day. He came here and led a council meeting incredibly well, I might add. But so, hopefully, yeah, it was a smooth meeting, what can I say?
Wow. I yeah. I mean, you're not wrong. I'm not gonna argue. I mean, it's let's hear it for grace. Yeah. All in favor? Alright. So please encourage, any kiddos that might have an interest in civics to apply to be mayor for a day. And on Halloween, the PD is teaming up, hosting their trunk or treat event over at U Haul. Correct? Right, on Friday the, Halloween. So if you'd like to participate in that or have a presence, please do so.
I believe that's all I have. Thank you. Thank you, Payton. Just gonna say talk about the fire department one more time and say thanks to the people that made it possible. I mean, because today's today's event was was huge. I mean, we, we we did the dog and pony show when when the governor showed up. I mean, we pulled all the trucks in real quick, and and the fire department made it work. Again, like they've always done today, I I thought it was just an excellent opportunity to show, showcase our fire department, our firefighters, and and the commitment, and and to say thank you one last time.
Thank you to everybody who made it possible. I mentioned to the chamber, like, they're we had a strong ally in the governor, because even when our project wasn't on the books, it was always on his radar. He talked about the Delaware Fire Department, like, at every stop he made. And I do I I do think that helped make a difference. We had a strong ally and a strong partner in that project. We had people at the state level telling us there's no way. We should have done it when Mark Hart was was in office, and we missed our window. And that was that was that was disheartening to hear. But our but our our partnerships made it work.
You know, the the governor, our federal leaders with, Senator Smith and Senator Klobuchar, Andy Martin, for example, a strong supporter of the city of Delaware, generating, you know, federal commitment and our state allies that that made it work, that that brought it home. And I did give Peyton credit, this afternoon. I give Peyton credit again because there were there were oftentimes, like like, we're not we're off of everything. Like, there was doesn't exist in Saint Paul, and and he always had an opera a a way to, you know, to navigate it and say, here's where we're gonna go next. This is what we're gonna do. We still have an opportunity.
And and, you know, all of our partners, got that legislative part done. And from there, it was almost easy because then the architects and engineers took over, like, the people that know what's going on. And I did miss saying thanks thanks to Dan. I I like our monthly meetings with Dan. He comes in and tells us here's what's going on. Here's where the project is at. Oh, by the way, we need to have a we need to have a a waterproof, heater when we're when we're spraying it with water. That's kind of a a little redo. Like, I just appreciated those meetings, and I think it it sets the standard for how Dorf should look at things
going forward. That project the project, what do you call them, manager? Because just there's there's a skill set in there that that is brought, to the project. I think that was great. That was, again, a a remarkable job. And then, of course, above all else, the project's done, and the ribbons are cut. And and the one thing that holds true is is still our firefighters are out there risking their lives. And now they can do it in a safer environment. They have a safer training environment. They have a modern training environment. And so it's again, it's a sign or a signal of a beacon of the city's commitment to the
firefighters that are going to put themselves in harm's way and and the commitment to our city. City council, we have a responsibility for for public safety, and that's one step in showing, that we are committed to every resident that lives here. So it I'm it I'm this come come gonna come out wrong. I'm kinda glad it's done. Right? Because we can close the chat. We can close that chapter. I mean, it's been since 02/2013. Isn't that what chief Emting sheriff Emting said when we started it all? So the first thing he and I met about right after I started in '14.
Yeah. So, I mean and, again, it's it's been a long time coming. So it's, it was exciting. It was exhausting. And and I am I'm I'm proud of the work that we were able to accomplish together, not just us sitting here, but our residents and our partners across the board. It it it was great. It was great. And then just one other quick thing about our partners in other cities, in our small cities meeting. And what because we are. We we are all conscious about the tax levy and the limits and and what we are spending, in the city of Dilworth. And one of the interesting components is every
municipality went around and said what their preliminary tax levy was. And it it ranged from eight or 9% up to fifteen, sixteen, 18%, with their preliminary estimates. So, again, we're all in that same boat, all our communities, and and we're looking to to do the same thing. And and reports from throughout the states, I mean, that's unfortunately, the cost of doing business in Minnesota is getting more expensive, and in part, that's where we're at with our tax levy. So, it was it was a good meeting across the board. But to that end,
I know I look forward to the next couple of weeks and see where we're we're gonna go and wrap up, wrap up this fall. It's gonna be awesome. So, to that, we can move on to number 10. We have some bills to pay. Are there any questions on the bills? Hearing no questions, I will entertain a motion to pay the bills. Second. So moved. Motion by Steichen. Second. Second by Nash. All those in favor, say aye. Aye. Opposed? Motion carries. And with that, we do move to number 11. And 11 alpha is pursuant to Minnesota statute 13 delta zero three subdivision three Charlie to discuss labor negotiation strategies with the operating engineers local forty nine and the law
enforcement labor services. So with that, good night, everyone. Thank you very much. Get home safely, please.