Minutes - Council - 10/27/2020 - Laserfiche WebLink

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Councilmember Specht asked what would happen if this were not approved tonight. Finance Director Lund stated that the funding scenario was described in past discussions. She stated that this action comes forward tonight in order to meet the 30-day requirement. She stated that this is based off the numbers presented by RJM related to the first bid package and where they estimate the second bid package. Mayor LeTourneau commented that this is the next step in the process. Finance Director Lund commented that this has been a different year in terms of costs and bids and therefore they wanted information on that first bid package prior to this action. She noted that the second bid package bids are due the following day and will be presented to the Council at its next meeting for acceptance. Councilmember Musgrove asked if there are any other available City funds that could be used for this project. Finance Director Lund replied that TIF funds cannot be used for a public facility. She commented that the water and sewer funds allocated for the project are related to the comparable amount of staff time and equipment. She stated that the water fund is being held for the water treatment plant. She stated that this is a prime time for interest and therefore it makes sense to pursue funding at this time. She stated that the City funds listed are to the extent that they can be used. She stated that the sewer fund could do further internal loan, but it would not make sense at this time because the City would still have to pay interest on that as well. She noted that interest rates will increase in the future and it would make sense to use the sewer fund for an internal loan at that time for another project. Deputy City Administrator Gladhill noted that there are some development projects that could come forward in the future that would need to use the sewer fund and therefore he would not want to see that fund used to its full extent. Councilmember Riley commented that this has been a long-term plan for the City and that is evident by the fact that 50 percent of the project can be funded internally. Stacey Kvilvang, Ehlers, stated that it is significant that the City can fund 50 percent of the facility itself, as most cities have to bond for 100 percent. She commented that interest rates are low at this time and it is a good time to bond for projects. Motion by Councilmember Menth, seconded by Councilmember Riley, to Adopt Resolution #20- 253 Giving Preliminary Approval to the Issuance of GO Capital Improvement Plan Bonds in an Amount not to Exceed $10,000,000 and Adopting the City of Ramsey’s Capital Improvement Plan (for GO CIP Bonding Projects only) for the Years 2020-2024 Further discussion: Councilmember Specht realized that this has been ongoing for longer than he has been on the Council. He stated that he is not comfortable supporting this action at this time without knowing the full cost of the second bid package. Mayor LeTourneau encouraged City Council / October 27, 2020 Page 5 of 8