Aug. 17 2021 East Grand Forks Greenway Fees

14
Request for Council Action

Date: July 27, 2021
To: East Grand Forks City Council Mayor Steve Gander, Council President Mark Olstad, Vice-
President Tim Riopelle; Council members Clarence Vetter, Dale Helms, Brian Larson, Tim
Johnson, and Marc DeMers.
Cc: File
From: Reid Huttunen, Parks & Recreation
RE: Request to increase monthly Greenway Maintenance Fee
Background:
 The current W&L Billing includes a $1 a month maintenance fee for paved Greenway Trails in
East Grand Forks.
 This current billing is not earning enough revenue to continue to keep up with the cost of
planned overlay maintenance of our current Greenway Trail system.
 The original trail system was installed/paved in the years of 2000-2005. Total mileage
inventory on the EGF side is approximately 11 miles (10.93 total).
 At our current income rate, it will take us until the year 2050 or beyond to earn enough
income to pay for the overlay of the entire trail system.
 We began overlaying our original trail install in 2015, and it the general rule is that trails
should be overlaid on a schedule of every 10-15 years.
 Included in this packet are table showing the maintenance and income schedule at the
current $1 a month fee through the year 2042. At that time, trails overlaid in 2015 will be 27
years old.
 Also included is a proposal to increase the monthly fee per utility account to $2 per month in
2022, and 5% annually each year following, through 2032.
 In the proposed increase, the rate would be approx. $3.10 per month in 2032.
 At this new proposed rate, all our current trails would be overlaid by 2031.
 Cost estimates for expected trail overlay expense were developed using the attached
Inflation table, provided by Widseth and used by the MPO in future planning programs.
Budget Impact:
- Increase the monthly Greenway fee on W&L billing to $2 per month in 2022, and a 5%
increase annually each year after, through 2032, at which time the City should revisit the
program and its income/expense progress.
Recommendation:
- Approval of Greenway maintenance fee increase
Enclosure:
Table showing current $1 per month income/expense schedule
Table showing proposed $2 per month income/expense schedule
Inflation table used to show expected trail overlay expense
43
RESOLUTION NO. 21 – 08 – 62
RESOLUTION INCREASING GREENWAY MAINTENANCE FEE

Council Member _______, supported by Council Member _______, introduced the following resolution
and moved its adoption:
WHEREAS, currently residents pay $1 greenway maintenance fee per month for the maintenance of the
Greenway Trail system; and
WHEREAS, the trails were originally installed between 2000-2005 and total 10.93 miles of trails; and
WHEREAS, at the current rate it would take the City until 2050 to earn enough funding to overlay the
entire trail system; and
WHEREAS, in 2015 trails started to be overlayed and a recommended maintenance routine would have
the trails be overlayed every 10 to 15 years; and
WHEREAS, a proposed increase starting in 2022 to $2 with a 5% annual increase until 2032 would allow
for funding to be available to overlay all the current trails by 2031; and
WHEREAS, the proposed maintenance fee with the 5% annual increase would be as follows:
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
$2.00 $2.10 $2.21 $2.32 $2.43 $2.55 $2.68 $2.81 $2.95 $3.10 $3.26
NOW THEREFORE, BE IT RESOLVED the City Council of East Grand Forks approves the $1 increase
to the greenway maintenance fee and 5% annual increase until 2032.
Voting Aye:
Voting Nay:
Absent:
The resolution passed.
Passed: August 17, 2021

Attest:
____________________________________ ____________________________________
City Administrator/Clerk-Treasurer President of Council
I hereby approve the foregoing resolution this 17th of August, 2021.
____________________________________
Mayor
44
Current $1 per month maintenance payment on W&L Utility Bill
Greenway Trail Maintenance Fund
Date Vendor Credit Debit Account Balance Trail Miles repaired Description
2015 Mill & Overlay $ 61,985.88 0.75 Red River Rec Area Trail Overlay
2016 Mill & Overlay $ 83,775.43 0.75 Behind VFW Arena/nearest Red Lake River
2017 Mill & Overlay $ 132,843.22 1.50 Behind VFW Arena/nearest levee
2018 Mill & Overlay $ 17,523.60 0.15 O'Leary Park/Pickleball Court access
2020 Overlay (2020 Flood Repair; paid by MN Safety) $ 10,500.00 0.05 Repair flood washout No. of Rotary fountain
2020 Linear Crack Patching $ 4,400.00 Total Miles Overlaid So. Pedestrian Bridge to LaFave park area
3-Feb-21 Greenway Maintenance Fund $ 75,492.00 3.20 Account balance as of February 3, 2021
2021 $1 monthly fee per residence $ 47,300.00 $ 122,792.00
2021 Planned Trail Overlay (Approx 1.7 mi) $ 226,666.25 $ (103,874.25) 1.70
2022 Annual Revenue - $1 Maintenance Fee $ 47,300.00 $ (56,574.25)
2024 Annual Revenue - $1 Maintenance Fee $ 47,300.00 $ 38,025.75
2026 1.5 Mile Trail overlay $ 283,332.81 $ (150,707.06) 1.70
8.30 Total Miles Paved/Planned for paving
10.93 Total Inventory Paved Greenway Miles (EGF side)
45
Current $1 per month maintenance payment on W&L Utility Bill
Date Vendor Credit Debit Account Balance Trail Miles repaired Description
2020 Linear Crack Patching $ 4,400.00 Total Miles Overlaid So. Pedestrian Bridge to LaFave park area
3-Feb-21 Greenway Maintenance Fund $ 75,492.00 3.20 Account balance as of February 3, 2021
2021 $1 monthly fee per residence $ 47,300.00 $ 122,792.00
46
Fee increase to $2 per month in 2022; 5% annual increase each year after
Trail Mile
Date Vendor Debit Account Balance Overlay Description
2020 Linear Crack Patching $ 4,400.00 So. Pedestrian Bridge to LaFave park area
Total Spent through 2020 $ 311,028.13
Utility Fee Per
Month
showing 5% Annual Greenway
Annual Maintenance Total Account
Year Description Increase Account Income Annual Expense Balance Location Information
Account Balance - February 2021 $ 75,492.00 3.20 Total Trail Mileage Overlay to Date
2021 $1 monthly fee per residence $1 $ 47,300.00 $ 122,792.00
2021 Widseth Prepare Plans & Specifications - Project No. 2 $ 29,841.25 $ 92,950.75
2022 Annual Revenue - Maintenance Fee $ 2.00 $ 94,600.00 $ (9,274.25)
2023 Annual Revenue - Maintenance Fee $ 2.10 $ 99,330.00 $ 90,055.75
2025 2 Mile Trail overlay $ - $ 275,555.00 $ (81,202.75) 2.00
2027 2 Mile Trail overlay $ - $ 351,969.41 $ (87,937.71) 2.00
2031 2 Mile Trail overlay $ - $ 370,494.12 $ 87,975.85 2.00
2021 price per mile 2021 Price per 2 miles

$ 115,779.41 $ 231,558.82
47
Fee increase to $3 per month, beginning in 2022
Date Vendor Debit Account Balance Trail Mile Overlay Description
2020 Linear Crack Patching $ 4,400.00 So. Pedestrian Bridge to LaFave park area
Total Spent through 2020 $ 311,028.13
Annual
Greenway
Utility Fee Maintenance Total Account
Year Description Per Month Account Income Annual Expense Balance Trail Mile Overlay Location Information
Account Balance - February 2021 $ 75,492.00 3.20 Total Trail Mileage Overlay to Date
2021 $1 monthly fee per residence $1 $ 47,300.00 $ 122,792.00
2021 Widseth Prepare Plans & Specifications - Project No. 2 $ 29,841.25 $ 92,950.75
2025 2 Mile Trail overlay $ 275,555.00 $ 46,270.75 2.00
2031 2 Mile Trail overlay $ 370,494.12 $ 29,974.28 2.00 Restarting Overlay of System (2015 & newer trails)
12.95 Total Miles Paved/Planned for Overlay
2021 price per mile 2021 Price per 2 miles
$ 115,779.41 $ 231,558.82
48
Year of install/Maintenance # of Miles Original install date Replacement Timeframe (yrs)
2000 1.5
2001 1
2002 1.25
2003 1.25
2004 0.33
2005 0.75
2015 0.75 2000 15
2016 0.75 1995 21
2017 1.5 2001 16
2018 0.15 1995 23
2021 1.7 2001, 2003, 2004
Total Miles 10.93
49
Cost Estimate Inflation Conversion Factor Table
Historical /Current Baseline Fiscal Future Projection Fiscal Year

Year
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
↓
YOY D% +6% (4%) +4% +4% +5% +5% +5% +5% +5% +5% +5% +5%
2015 1.27 1.22 1.27 1.32 1.38 1.45 1.52 1.60 1.68 1.76 1.85 1.94
2016 1.38 1.32 1.38 1.43 1.50 1.58 1.66 1.74 1.83 1.92 2.01 2.11
2017 1.45 1.39 1.45 1.51 1.58 1.66 1.74 1.83 1.92 2.02 2.12 2.23
2018 1.26 1.21 1.26 1.31 1.38 1.44 1.52 1.59 1.67 1.76 1.84 1.94
2019 1.06 1.02 1.06 1.10 1.16 1.21 1.27 1.34 1.40 1.47 1.55 1.63
2020 - 0.96 1.00 1.04 1.09 1.14 1.20 1.26 1.33 1.39 1.46 1.53
2021 - - 1.04 1.08 1.14 1.19 1.25 1.31 1.38 1.45 1.52 1.60
2022 - - - 1.04 1.09 1.15 1.20 1.26 1.33 1.39 1.46 1.54
11/19/2020
How to use this table: Each row allows an estimator to escalate a historical/current project to any future year. For instance, given a past project priced in the 2018 time frame, to
approximate how much similar work would cost a decade later in 2028, just go down to the 2018 row and scan across to the 2028 column to get a multiplying factor of 1.67. The
2020 column is the only one based on actual CCIs; all the rest are forecasts.
50
Cost Estimate Inflation Conversion Factor Table
Historical /Current Baseline Fiscal Future Projection Fiscal Year

Year
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
↓
YOY D% +6% (4%) +4% +4% +5% +5% +5% +5% +5% +5% +5% +5%
2015 1.27 1.22 1.27 1.32 1.38 1.45 1.52 1.60 1.68 1.76 1.85 1.94
2016 1.38 1.32 1.38 1.43 1.50 1.58 1.66 1.74 1.83 1.92 2.01 2.11
2017 1.45 1.39 1.45 1.51 1.58 1.66 1.74 1.83 1.92 2.02 2.12 2.23
2018 1.26 1.21 1.26 1.31 1.38 1.44 1.52 1.59 1.67 1.76 1.84 1.94
2019 1.06 1.02 1.06 1.10 1.16 1.21 1.27 1.34 1.40 1.47 1.55 1.63
2020 - 0.96 1.00 1.04 1.09 1.14 1.20 1.26 1.33 1.39 1.46 1.53
2021 - - 1.04 1.08 1.14 1.19 1.25 1.31 1.38 1.45 1.52 1.60
2022 - - - 1.04 1.09 1.15 1.20 1.26 1.33 1.39 1.46 1.54
11/19/2020
How to use this table: Each row allows an estimator to escalate a historical/current project to any future year. For instance, given a past project priced in the 2018 time frame, to
approximate how much similar work would cost a decade later in 2028, just go down to the 2018 row and scan across to the 2028 column to get a multiplying factor of 1.67. The
2020 column is the only one based on actual CCIs; all the rest are forecasts.
51

Aug. 17 2021 East Grand Forks Greenway Fees

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14

Request for Council Action

From: Reid Huttunen, Parks & Recreation

RE: Request to increase monthly Greenway Maintenance Fee

RESOLUTION INCREASING GREENWAY MAINTENANCE FEE

The resolution passed.

Passed: August 17, 2021

I hereby approve the foregoing resolution this 17th of August, 2021.

2021 price per mile 2021 Price per 2 miles

Historical /Current Baseline Fiscal Future Projection Fiscal Year

Historical /Current Baseline Fiscal Future Projection Fiscal Year

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