Laserfiche WebLink
2.02: Discuss Update on Interim Public Works Facility Options <br />Public Works Superintendent Riemer reviewed the staff report. <br />City Administrator Ulrich noted that this is an interim solution and advised that financing options <br />were also included in the case for the new public works facility. He stated that the estimated <br />debt was listed at the lowest amount and advised that four financing options were listed. <br />Finance Director Lund provided details on the four financing options proposed within the case. <br />Councilmember Riley referenced the two percent rate and asked if that is the approximate rate <br />the City is currently earning. <br />Finance Director Lund noted that currently the rate is slightly under two percent but has been <br />increasing slightly each year. <br />Councilmember Riley stated that future improvements may come sooner than anticipated and <br />asked the current balances of the sewer and water funds. <br />Finance Director Lund replied that the water fund currently has a balance of $23,800,000 while <br />the sewer fund has a balance of $13,500,000. <br />City Administrator Ulrich stated that this presents the best option for financing a $15,000,000 <br />building. He asked if this is reasonable for the City to take the next step on the building, which <br />would be to solicit proposals on plans and specifications. He noted that would also provide more <br />information on the anticipated cost, noting that value engineering could also be done. <br />Councilmember Kuzma stated that he does not support the interim option and would instead <br />prefer to move forward on the steps needed to proceed with the new public works facility. <br />Mayor LeTourneau asked if the perspective of public works would change about the interim <br />option, if the direction were given to move forward on the new public works facility. <br />Public Works Superintendent Riemer replied that if the direction is given to move forward on the <br />new public works facility, he can make do without the interim option. <br />City Administrator Ulrich noted that the planning process and construction for a new public <br />works facility would be about 18 to 24 months. <br />Public Works Superintendent Riemer confirmed that he can forgo the interim option for that <br />amount of time if the new public works facility process is moving forward. <br />City Administrator Ulrich stated that even if the building is purchased from Anoka County for <br />the interim option, it could be resold in the future. <br />City Council Work Session / May 14, 2019 <br />Page 3 of 7 <br />