1993-08-04 CC Minutes Special
.
CONTINUATION OF SPECIAL MEETING
ALBERTVILLE CITY COUNCIL
August 4, 1993
Albertville City Hall
7:00 PM
PRESENT: Mayor Mike Potter, Councilmembers Duane Berning,
Sharon Anderson, John Vetsch, and Albert Barthel, City Engineer
Norm Gartner, City Attorney Mike Couri, City Clerk Linda Houghton
Mayor Potter reopened the meeting continued from August 2nd.
The purpose of the meeting is to consider the bids for construction
of the wastewater treatment expansion.
Engineer Norm Gartner presented a cash flow analysis based on
the current sewer rates and the current SAC charges. The analysis
has been reviewed by Bob Thistle of Springsted, Inc. Thistle's
letter dated August 4, 1993, states that the numbers presented do
not seem to be unrealistic for a growing community such as
Albertville. Thistle states that the calculations should work and
the annual debt coverage should be achieved provided that there is
continued growth in the City.
.
The Council recently increased the sewer rates by 10% and Norm
does not recommend that the Council consider another immediate rate
increase. He suggested that the Council review the rates at the
end of the first year of operation of the expanded facility to
determine if a rate increase is necessary.
Gartner again explained that the interest rate on the loan
through DTED probably will be lower than the 3.7% rate previously
projected. A decrease in the interest rate nearly makes up for the
additional costs incurred from the second bid letting.
Anderson questioned if it would be possible to refund the 1988
bond at this time wi th the reserve in the sewer fund. The
consensus is that the current sewer fund balance should be
maintained.
Vetsch again expressed the opinion that the facility should
be designed to discharge into the Crow River through an outfall
line. Norm pointed out that everything included in this phase of
the expansion is necessary to outfall to the Crow River. The
additional piping and filtration system would add another $1.2
million to the project. In addition, the NPDES permit is valid
only for this phase of the expansion. To attempt to discharge into
the Crow River now means that the entire project must be started
over.
.
Attorney Couri pointed out that the City Council has promised
a good faith effort to expand its wastewater facility through
signed Developer's Agreements and the extension of the sewer trunk
line to the new high school. Couri advised the Council that their
.
failure to proceed with the plant expansion at this point when the
necessary permit has been acquired from PCA places the Council at
significant risk of not showing "good faith". Couri also stated
that given the decisions made by the previous City Council, this
City Council could be on very thin ice if it chooses to delay the
expansion.
Mayor Potter explained that the previous Councils were aware
in 1988 that the Westwind PUD when developed would use all the
capaci ty of the current wastewater faci I i ty. Since that time,
plans for an expansion should have begun. However, expansion was
not considered unti I the current faci I i ty was at its maximum
capacity.
Several developers in the audience expressed their opinion
that the proposed expansion is imperative for the City to continue
to grow.
Mayor Potter called for a motion to award the bid for the
wastewater treatment expansion (Project 1992-IIA) to Rice Lake
Contracting Corp. in the amount of $784,400.
.
Barthel made a motion to adopt RESOLUTION '1993-23 entitled
A RESOLUTION AWARDING THE CONTRACT FOR IMPROVEMENT PROJECT '1992-
11A awarding the contract for the wastewater treatment facility
expansion to Rice Lake Contracting Corp. with Alternate Bids A, E,
and F in a total amount of $784,400. Anderson seconded the motion.
Barthel, Vetsch, Anderson, and Potter voted aye. Berning voted no.
The resolution was adopted.
Barthel made a motion to adjourn at 8: 35 PM. Anderson
seconded the motion. Barthel, Anderson, Vetsch and Potter voted
aye. Berning voted no. The motion carried.
Michael Potter, Mayor
.