HomeMy WebLinkAbout[02] Meeting Notes [12-22-09]Meeting Notes
JOINT AREA CITIES MEETING
Tuesday, December 22, 2009
Hosted by the City of St. Joseph
A social /dinner gathering was held at 5:30 p.m. at the St. Joseph Community Fire Hall.
CALL TO ORDER:
At approximately 6:00 p.m., St. Joseph Mayor AI Rassier called the St. Cloud Area Joint Cities
meeting to order.
ATTENDANCE:
The following individuals were in attendance and introduced themselves:
Members:
Rockville: Duane Willenbring
St. Augusta: Mayor Bob Kroll, Councilors Paul Reinert, Jim Diehl, Donna
Schulzetenberg. Administrator Bill Mcabe
St. Cloud: Mayor Dave Kleis, Councilors Carolyn Garven, John Libert, John
Pederson, Dave Masters. Administrator Michael Williams, City Engineer
Steve Gaetz, Public Utilities Pat Shea and Tracy Hodel.
St. Joseph: Mayor Al Rassier, Councilors Dale Wick, Renee Symanietz, Steve Frank.
Administrator Judy Weyrens, City Engineer Randy Sabart
Sartell: Councilor Steve Hennes, Joe Perske. Administrator Patti Gartland
Sauk Rapids: Brad Gunderson, Paul Weber. Administrator Ross Olson
Waite Park: Mayor Rick Miller, Councilors Frank Theisen, Chuck Schneider, Mike
Linquist, Herman Bartz
Legislative Representatives: Zach Dorholt (for Representative Haws), Representative
Larry Hosch, Senator Taryl Clark, Senator Michelle
Fischbach, Representative Dan Severson
Guests: Jane DeAustin, Teliza Calloway
MEETING NOTES OF SEPTEMBER 29. 2009 (ROCKVILLE):
The meeting notes were accepted by consensus of those present.
ST. CLOUD WASTEWATER PLANT UPDATE: Pat Shea, St. Cloud Public Utilities Director and Tracy
Hodel Assistant Director presented those present with an update of the St. Cloud Wastewater
Plant update and expansion. The following is a summary of the presentation:
• Project timeline — The project expansion process began in August 2003 and included
accepting a plan from Black & Veatch to develop facilities plan, area Cities
executing agreement for the Cooperative Design and Construction, approving
design plans, and finally in 2010 consideration of bids.
• Project Summary — The project includes replacement of 34 year old equipment and
structures, upgrade of the facility for regulatory and nutrient removal and
expansion through the year 2030.
• Bid Results — St. Cloud received seven bids for the project, all of which were below the
engineer's estimate. The low bid was submitted by Knutson in the amount of $
39,038,000 (including alternate). Total estimated project cost including
engineering services, testing, contingency and builder's risk is $ 43,559,900.
The original engineer estimate for the project was $ 48,000,000.
• Interest rate — When the project was estimated in 2009, it was anticipated the project
would be financed at an interest rate of 4.800% with a total loan cost of $
74,760,000. As of this meeting, the estimated interest rate is 2.296% for a total
loan cost of $ 55,000,000.
• Financial Review — Overview of financial impact to each participating City and summary
of wastewater rates charge by each City.
• Analysis of moving forward versus delaying action — projected financial impact of
delaying the project and rebidding in 2011. It is estimated that if the project were
delayed and rebid in 2011 the project cost would be $ 64,720,000.
• Summary of advantages and disadvantages of not moving forward to include discussion
on the improvements that will need to be completed if the project does not move
forward.
• Other potential funding opportunities — seeking exemption from MN State Sales Tax
Exemption (estimated at $ 1.6 M), seeking Federal Grant Funding ($300,000),
State Phosphorus Reduction Grant ($ 500,000), Wastewater Infrastructure Fund
(WIF).
• Next Steps — contract Cities adopt resolutions supporting awarding of bid, NPDES
Permit Reissuance — January 1, 2010, City of St. Cloud Adopt Bid Award, St.
Cloud City Council approve Professional Services Agreement w /Engineer —
January 11, 2010 and SCAWAC establishes a project subcommittee to facilitate
project communication —January 14, 2010.
St. Cloud City Engineer, Steve Gaetz discussed with those present the importance of moving
forward with the project. He stated that the project is below the engineer's estimate and all the
area Cities agreed to move forward with the project with a higher cost. He also stated if the
project does not move forward St. Cloud will have to determine what improvements will be
needed. He cautioned those present that if the project does not move forward as planned, the
result of piece milling is paying for some improvements twice and delaying the inevitable.
LEGISLATIVE ISSUES: The area Cities presented the Legislators with a list of common
issues for the current legislative session. Mayor Rassier stated that it is not intended to go line
item through the list of concerns, but rather a discussion on specific items.
Those present discussed the following:
• LGA — the impact on budgets with the unallotments and need to maintain the certified
aids.
• Sales Tax Exemption — Provide for sales tax exemption for the St. Cloud Area
Wastewater Facility expansion. This request is similar to past legislative actions for
municipal projects. The exemption would provide relief in the amount of 1.6 Million.
• Aggregate Value — Officials discussed the difficulty in negotiating contracts with the
current regulation regarding aggregate value of benefits. This is particularly difficult
when negotiating health insurance benefits. Essential employees have no financial
impact if they go to arbitration, while the City's incur large legal costs. It is difficult to
handle the budget cuts when statutes limit your ability.
• Tax Exempt Credit Program — Discussion on providing some type of relief for Cities with
a disproportionate amount of tax exempt properties. Some of the exempt properties
place a large demand on services and they are not funding the same. The purpose is
not to fully tax all properties, rather find some mechanism to offset such costs.
ADJOURNMENT:
There being no further business to conduct, the meeting was adjourned at 7:20 p.m.
Respectfully submitted by
Judy Weyrens, Administrator
City of St. Joseph