09/29/09 Special Meeting - Laserfiche WebLink

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Councilmember Elvig felt that was only fair since Walker had seen LSA's number ahead of time. Discussion ensued relating to the V A Clinic - and what changes may have to be made and how it would all be integrated into the design. City Administrator Ulrich stated that our City Attorney has said since we did not publish the special meeting as having this case added to it to take direction, we will not be able to take care of it tonight. We can; however, schedule a special Council meeting for October 6 to take action. Motion by Councilmember Elvig, seconded by Councilmember Wise to recommend that the action be to direct staff to go back to LSA and make them aware of the bid and inquire if they are interested in "sharpening their pencil" and coming in with a different pnce. Motion carried. V oting Yes: Chairperson Dehen, Councilmembers Elvig and Wise. V oting No: None. #2: Adopt Reimbursement Resolution for Water Tower #3 Finance Officer Lund stated that back in July, construction on the City's third water tower began - funded out of the water utility fund. Due to the possibility of additional costs for the Ramsey Town Center Project Area, she stated the City would be able to bond for the water tower project and pay for it over a 20-year period at a little over 3 percent interest. The funds that were internally designed for the tower would be loaned to the Town Center project to be repaid by future land sales. Ms. Lund continued that if the City were to issue debt, we could take advantage of the Build America Bonds. The net result would be an estimated savings of about $87,000 versus the issuance of tax- exempt bonds. Council would have to adopt a resolution known as a reimbursement . resolution. It allows the City to repay itself for any costs incurred on a project prior to the receipt of bond proceeds and it can be adopted no later than 60 days after the first construction payment. The first payment was made in late August. She added that Council is not being asked at this time to authorize the issuance of debt but adopting the .resolution would allow the City the possibility of doing so. Ms. Lund added that we will receive a 35% tax rebate from the IRS and the rates are at a 42-year low. Councilmember Wise asked if moving this money around would result in more debt for the City. Ms. Lund responded it would be more debt but we will be getting more liquid. Councilmember Wise inquired if there is a way. of creating a repayment of the water utility to which Ms. Lund replied yes, a call factor on the bond. It has to be structured with the debt. Finance Committee - September 29, 2009 Page 3 of5