Minutes - Council - 05/24/2005 - Laserfiche WebLink

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Assistant City Administrator Nelson indicated during the work session of May 17, 2005, representatives of 3D/I, BKV and staff discussed with the Council the need to establish levels of authority for use during the construction of the Municipal Center in regards to change orders. The consensus was to move forward with the following for approval of change orders: · Project team consisting of the City Administrator and the Assistant City Administrator to approve change orders up to $10,000. · Facilities Committee to approve change orders in excess of $10,000 and less than $25,0O0. · City Council to approve change orders greater than $25,000, and to approve of all change orders less than $25,000 by ratification at regular Council meetings. Motion by Councilmember Jeffrey, seconded by Councilmember Pearson, to authorize Resolution No. 05-05-144, Establishing Levels of Authority for Construction of New Ramsey Municipal Center. Motion carried. Voting Yes: Mayor Pro Tem Elvig, Councilmembers Jeffrey, Pearson, Cook, Olson, and Strommen. Voting No: None. Absent: Mayor Gamec. Further discussion: Assistant City Administrator Nelson announced the ground breaking for the Municipal Center will be Wednesday, June 1st at 2:00 p.m. at the site of the new building - 7550 Sunwood Drive. Case #6: Authorize the Execution and Delivery of a Ground Lease Agreement and Lease Agreement between the Economic Development Authority of the City of Ramsey (EDA) and the City of Ramsey for the New Municipal Center Finance Officer Lund reviewed that at the January 25, 2005 City Council meeting, authorization was given to proceed with the Municipal Center project and to make a formal request of the Economic Development Authority (EDA) to initiate the bonding process for the project, which would be a lease revenue bond in an amount not to exceed $19,200,000. Construction bids for the project were opened on May 5, 2005. With the addition of project financing, City portion of parking ramp, capitalized interest and debt service requirement, the total amount of bonded debt required is $19,200,000. The debt has been structured so that the City's tax capacity rate of 38.15% for taxes payable 2005 will be held at approximately the same tax rate for taxes payable 2006-2009 and shows a decline in following years as more taxable market value is added in the City. Finance Officer Lund explained the issuance of debt through the EDA requires that a lease agreement be established between the EDA of the City of Ramsey and the City of Ramsey. Whereas, the EDA will be the "Landlord" and the City of Ramsey will be considered the "Tenant". The EDA met at a special meeting this morning to consider the authorization of the issuance of $19,200,000 Public Project Lease Revenue Bonds to be used for the construction of the new Municipal Center and the execution and delivery of a ground lease agreement and lease agreement with the City. The vote was 5-1, 1 absent, for the issuance of the Lease Revenue Bonds and the execution of the ground lease/lease agreement. She explained the EDA authorizes City CouncilfMay 24, 2005 Page 10 of 26