HomeMy WebLinkAboutBudget/Finance Committee Minutes 01.13.1983
I I W_
' M I N U T E S
. BUDGET/FINANCE COMMITTEE
DATE January 13, 19_53 TIME :00 .m.
PLACE OF MEETING Council Chamber
A. Members present: Chairman Duane Behm
Lonnie Kello , Albert Ehrlick
, Don Hackmann
B. Other's present: Marvin Carter , Don Me ers Dave.Michael,
Jim Kaercher--HKM Associates, Kreg Jones--D.A.Davidson
A quorum (3 or more) present the following action was taken by
the committee:
The committee met to discuss the Sewer Revenue bond sale of
$725,000, with Kreg Jones and Jim Kaercher.
Discussion regarding sale of bonds after taking the construction
bids.
There is a problem with EPA, but the ideal situation is to sell
the bonds about two weeks after opening construction bids.
A 60-day award period could be left for the construction bid
if the advertising is set up that way. What that does is
if the construction bids should come in high or low the bonding
amount could be adjusted to fit that. The construction bids
have been coming ?n verp'low lately at 20% under the estimates.
There is no need for the City to finance $725,000 if only
$650,000 is needed and then pay for it for 20 years.
Discussion regarding having the money before we go to bid.
Mr. Jones-indicated that EPA demands that the City have financing
tied up before they allow you to take construction bids. One
way around that is a letter could be written by Mr. Jones to
the City and a copy sent to EPA stating that if there are not
any other bids received, D. A. Davidson will bid and buy the
bonds. They can't guarantee an interest rate, but a sale would
be guaranteed and the City will still have the right to refuse
all bids.
Even though D. A. Davidson re the financial consultants, by
law they can do this providing the City Council signs a waiver.
This has.been done before in other cities.
The advertising requirement for a revenue bond is only a one-time
publication.
Two resolutions will need to be passed: One calling for the
sale of the bonds and another passed the night of the sale
setting forth the terms of the bonds, accepting the bids, etc.
An advertisement would be in the Laurel Outlook and a New York
paper for national exposure and to meet the requirements.
Discussion regarding the sewer rate increases.
Further discussion regarding construction and bonding.
The consultant's fee was discussed. This was mentioned in the
proposal submitted about four months ago. It would be about
$10,000 and it would include the cost of printing the prospectus,
advertising, and printing of the bonds.
It was mentioned to Mr. Jones that the City is currently under a
law suit regarding the sewer hook-up fees.
Motion b Lonnie Kellogg to recommend that D. A. Davidson
be the City's financial consultant for the sewer revenue bond
issue, seconded by Duane Behm. Carried. .
The committee also reviewed the following purchase requisitions:
Heart monitor in the amount of $6,898.50. This is budgeted
and is to be purchased from the equipment reserve.
Motion by Lonnie Kellogg to recommend the purchase of the
heart monitor, seconded by Duane Behm. Carried.
Radio headsets and accessories in the amount of $527.50.
$7,500 was budgeted for the heart monitor and the Ambulance
Committee is proposing buying a demonstrator, thereby saving
enough to purchase the headsets. However, the committee would
like to know more about the need of the two headsets.
Portable asphalt re-cycle machine for street patching in the
amount of $18,000--20,000. This is budgeted in Revenue Sharing
and the money is on hand.
Motion by Lonnie Kellogg to recommend that we advertise
for bids for a patching machine, seconded by Albert Ehrlick,
Carried.
pectfully submitted,
Donald L. Hackmann
City Clerk
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