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HomeMy WebLinkAbout2002 [04] Apr 09 I April 9, 2002 Page l.of2 , , , Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in special session on Wednesday, April 9, 2002 at 4:30 PM in the St. Joseph City Hall, I 1 Members Present: Mayor Larry Hosch. Councilors Bob Loso, Cory Ehlert, AI Rassier, Kyle SchneiderJ AdministratorlClerk Judy Weyrens. :. I City Representatives Present: City Engineer Joe Bettendorf, Bond Counsel Monte Eastvold, Fire Chief Dave Theisen. ¡ Surplus Fire Truck: Fire Chief Dave Theisen requested the City declare the 1975 Ford Snorkel Fire Truck as surplus property and advertise the truck for sale. Loso stated the Fire Board approved the disposal of the Truck when the decision was made to purchase the new vehicle. Theisen stated the Truck will be! advertised in the Smoke Eater Magazine as well as the League of Minnesota Cities Bulletin, Loso made a motion declaring the 1975 Ford Snorkel Truck as surplus equipment, authorizing the sale of I such through sealed bids, The motion was seconded by Schneider and passed unanimously. I Firefiahter Hire: Theisen stated that the Fire Department received five applications for the four open I firefighter positions. Theisen is recommending the City hire the following individuals to serve on the St. Joseph Volunteer Fire Department: Aaron Scholtz, Andy Loso, Matt Loso, Leon Birr, Schneider made a motion accepting the recommendation of Fire Chief Theisen appointing Aaron Scholtz, Andy Loso, Matt Loso and Leon Birr to the St. Joseph Volunteer Fire Department. The motion was seconded by Rassier and passed unanimously. Financina of the 2002 Improvement Proiects: Monte Eastvold appeared before the Council to present financing alternatives for the proposed 2002 Improvement projects. The projects are as follows: I County Road 121 Est. Construction 1,659,575 Est. Contingency 165,958 Est. Engineering 212,431 Est. ROW Costs 122,835 Sub Total $ 2,160,799 Business Park Est. Construction 445,011 Est. Contingency 44,501 Est. Engineering 80,102 Sub Total $ 569,614 Northland 6th Addition Est. Construction 501 ,429 Est. Contingency 50,143 Est. Engineering 90,257 Sub Total $ 641,829 2002 Street Project Est. Construction 1,065,791 Est. Contingency 106,579 Est. Engineering 191,842 Sub Total $ 1,364,212 I Total Proposed 2002 Project Costs $ 4,736,454 I Eastvold stated that when issuing bonds, fIVe million dollars of bond debt is a threshold that municipalities should be aware of. While municipalities can issue more than five million dollars in bonds, there are extensive reporting regulations that must be adhered to, The regulations are so extensive that most I ¡ I April 9, 2002 Page 2 0[2 municipalities will not exceed the threshold and Eastvold encouraged the City to stay within the fIVe million dollar threshold. I Eastvold stated that if the City proceeds with the projects as stated above, one bond issue would be sold and it would be issued as a public sale bond, The bond would extend for a period of 15 years. Eastvold further stated that the City should request the issue to be rated and request the underwriter provide insurance. With the insurance the bond issue has the potential of being rated a AAA bond which will carry a lower interest rate and be more attractive to bond issuers, Ehlert questioned if the City should be looking at Northland Drive, rising the road bed at the lowest point. Rassier concurred with Ehlert and stated that if any changes are needed to the road it should be done at this time. Bettendorf stated that it is his opinion that the road elevation does not need to be changed. Once the property is developed and graded there should not be a road elevation issue. Hosch stated that in addition to the projects listed above, the City will need to secure financing for a generator and the East Baker Lift Station. Weyrens stated that the City established a Trunk Sewer Fund in 2000 and that fund currently has a fund balance of $ 130,000. The estimate for the replacement of the lift station is approximately $ 140,000, Eastvold stated that he recommends the City use the fund balance to pay for the replacement of the lift station as if the project is financed the interest will be approximately $ 41,000, The Council was in agreement to self fund the replacement of the East Baker Lift Station. Ehlert questioned the financing ability of the City if a new maintenance facility is constructed in 2002, Eastvold stated that a public building can be financed if the voters agree to such or by issuing bonds through the EDA. The City financed the City Office Facility through the EDA and the similar process could be used. Eastvold stated that he would need to verify that the EDA bonds could exceed the five million dollar threshold. As the City does not have the exact costs of the project, there is the potential that one or more of the projects could exceed the estimate, thereby exceeding the five million dollar threshold. The Council I agreed that the City is not required to finance the Northland Six improvements, and maybe only a portion of the project could be financed, Weyrens will contact Ted Schmid of lumber One Avon and discuss the financing alternatives. The Council was in agreement to sell one bond issue covering the costs of the above mentioned project. At this time the projected date of the bond sale is July 1,2002. OTHER MATTERS Probationarv Emplovees: Weyrens requested authorization to expand the responsibilities of the City Administrator/Clerk and Department Head's authorizing their ability to dismiss probationary employees. Loso made a motion authorizing the City Administrator/Clerk along with the appropriate Department Head to dismiss probationary employees upon discussing the matter with the City Attorney and notification of the City Council. The motion was seconded by Rassier and passed unanimousiy. Adiourn: The meeting was adjourned by consensus at 6:30 PM @~c~~ I