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ARDEN HILLS CITY COUNCIL WORK SESSION – APRIL 19, 2021 8 Mayor Grant supported making a change to the agreement noting he preferred Option 1 as well, although he feared the $100,000 payment was a little light given the expense to maintain and replace trails. He questioned if the Council wanted to make an adjustment in the lump sum amount. Councilmember Holden suggested the Council consider a lump sum in the amount of $125,000. Councilmember Holmes stated she would like to hear from Mr. Swearingen on what amount was reasonable. Interim Public Works Director Swearingen commented this was difficult to say without looking at all of the trail details. He indicated he would have to convert surface area and volume into tonnage, and the tonnage into the cost per unit. He explained it would be difficult for him to answer Councilmember Holmes question without doing these calculations. Councilmember Holmes asked if the Council wanted to allow Mr. Swearingen some time to complete these calculations prior to making a decision on the lump sum amount that should be paid by the developer, or if $100,000 was reasonable. Councilmember Holden questioned how staff would determine what the cost of asphalt would be in 30 years. She indicated this would be complex. Interim Public Works Director Swearingen commented after running very brief numbers, the $100,000 does seem reasonable, but explained he did not know what the price of asphalt would be 10, 20 or 30 years from now. Councilmember McClung stated he would like to better understand the maintenance expenses and the cost to replace the trail. He indicated if staff believed $100,000 would cover this for the next 20 years, he would support this lump sum amount. He questioned what the value of the recreational equipment would be for the six stations. Mr. Brama explained he had been talking to Minnesota Playground for this project and noted the quality of the equipment would be the same as the playground equipment used by the City. He estimated the value of the equipment to be $50,000. Councilmember Holden suggested the Council consider a lump sum of $125,000 given the responsibility the City would be assuming for this project. Councilmember Scott discussed the present value of $100,000 today versus $5,000 each year for 20 years. For this reason, he supported Option 1 so long as it included benches. Mayor Grant stated given the cost of the equipment and the trail he would like to see the City receive a lump sum of $125,000. Councilmember Holmes indicated she would like to hear from the developer on how they came up with the $100,000 lump sum amount and if they would be willing to go up to $125,000.