December Agenda Meeting Minutes
December 5, 2016
The meeting was called to order by Mayor John Werner at 6:00 p.m. Present for the meeting; Mayor John Werner; Councilors John Goman, Greg Andrews, Suzanne Herstad, and Bob Quade; Treasurer Holly Herstad; Clerk Joan Jauss; John Klaers, City Planner from Klaers and Associates, and guest Jayme Heim.
November 7, 2016 Agenda meeting minute approval was postponed until the December 12th Council meeting due to some questions. Joan will email the Council the audio from the recording for clarification.
Business from the floor: None
Fire Truck Committee minutes: Joan informed the Council she has not received the minutes stating the Fire Truck Committee has voted on what truck they would like to purchase as well as make a recommendation to Council to use the trust funds to purchase such truck. The council must have this information before they can approve ordering a new fire truck according to the judge’s order. John W. recommended Joan to contact the fire department and get the minutes so a decision can be made at the next council meeting.
Fire Truck bond or lease: Joan shared an e-mail from Chris Virta, bond counsel, listing some of the benefits and drawbacks of bond and/or lease. Chris noted the lease includes a performance bond which the City cannot do per State Statute. The interest rate for a bond would be about 2.25%, which is less than the lease at 2.75%. Legal cost for either bond or lease would be about the same. With a bond, the City would own the truck. With a lease, we would not own the truck until we purchased for $1.00 at the end of the lease agreement. The bond will need to be listed on the levy but the levy amount will be $0, as the money has already been saved for the truck. John W. stated he would like the bond, as interest would be less and we would own the truck. Greg stated we have enough money for the down payment and asked how much cash would be available to pay the remaining balance when the truck is ready for pickup. Joan noted there would be $155,000 available in 2017 from CD’s maturing. Greg recommended we hold off on the bond until the remaining balance is due, then take out a short term, one or two year, bond. This would reduce the amount of the bond, save us interest, and we would have more cash available to apply to the first bond payment. Holly said she would put together a schedule of when cash will be available from the investments between 2017 and 2020 for the next council meeting. Suzanne asked if we take out another bond, what happens to our debt. Joan stated we should be fine, as the West Calvary refinance bond will be activated and the original bond will be paid off, reducing our debt by approximately $3,000,000. It was agreed to hold off on taking out the bond for now.
Storm Bonding: Joan shared a draft of storm costs, to date, which totaled $575,996.30 and noted there is one more invoice outstanding. Joan informed the Council she will have a resolution about the storm bond for the council meeting.
Resolution 16-12-30 Setting the Levy for 2017: Joan gave Council a copy of Resolution 16-12-30 which will be brought to the Council meeting for action.
Resolution 16-12-31 Limited clean up and property damage protection for sewer backup and water main breaks for water and sewer customers: Joan gave Council a copy of Resolution 16-12-31 which will be brought to the Council meeting for action.
Recycle shed: Joan informed the Council, Bryan will be on vacation for portions of January and would like to know if she should contact Bill Rosenbush to work the Saturdays or would a councilor like to work the Saturdays. John W. said when he worked it last year, it allowed him to talk to the people in the City. Suzanne said she might be interested. Greg asked Joan to find out if Bill is available. Joan will contact Bill.
City Officials training from League of Minnesota Cities: Joan gave everyone information about experienced and new official training in January and February from the league. John W. would like to go to the experienced training course and so would John G. Joan said that if any other councilors would like to go, please let her know soon as she needs to book rooms and register.
January Agenda meeting: Joan asked the Council if they would be ok with moving the January Agenda meeting to January 3rd as the office is closed January 2nd. Council agreed.
Having nothing further to discuss, a motion to adjourn was made by Suzanne with a second by John G. All vote in favor. Motion carried.