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AGENDA ITEM - 3B <br />,!Tt <br />-z3 II��EN_ HILLS <br />MEMORANDUM <br />DATE: January 12, 2026 <br />TO: Honorable Mayor and City Councilmembers <br />Jessica Jagoe, City Administrator <br />FROM: David Swearingen, P.E. Public Works Director / City Engineer <br />SUBJECT: Karth Lake Pump Improvements — Cost share <br />Budgeted Amount: Actual Amount: Funding Source: <br />$556,000 TBD Stormwater fund, RCWD, <br />(Potentially $666,000) KLID <br />Council Should Consider <br />Council should consider options/terms to propose to the Karth Lake Improvement District for their <br />upcoming meeting on January 13, 2026. <br />Backiround <br />For the purpose of this discussion, the following background information summarizes how the <br />financing of Karth Lake pump improvements has been addressed in the past. For more background <br />leading up to the financing discussions, there were several meetings prior to what is listed below in <br />2003, the meeting minutes can be found on the City website. <br />On September 29, 2003, at the City Council Regular Meeting, pursuant to Minnesota Statute <br />103B.501 to 103B.581 and the Minnesota Department of Natural Resources rules part 6115.0900 to <br />6115.0980, the City of Arden Hills prepared a document proposing the establishment and the <br />administration of a Lake Improvement District with the purpose of constructing and maintaining a <br />lake elevation control structure. A Public Hearing was held, and ultimately the City Council <br />established The Karth Lake Improvement District (KLID) and adopted the Board By -Laws <br />(Attachment A). Discussion at the meeting included thoughts on how to fund the approved Karth <br />Lake Pumping project, but no decision was made; direction was given to staff to bring back <br />scenarios. The meeting memo and minutes can be reviewed in Attachments B & C. <br />On October 20, 2003, at the City Council Work Session, the City Council discussed how to approach <br />financing the Karth Lake Pumping project and was presented with 4 scenarios. The direction was to <br />proceed with what was described as "Scenario #2", which split the cost 50150 between the City and <br />the KLID. Only the construction as -bid costs were split; the indirect and overhead costs were not <br />included. The meeting memo and minutes can be reviewed in Attachments D & E. <br />Page 1 of 4 <br />