HomeMy WebLinkAbout2004-06-17 Council Minutes - Part 2Document 6.a.
July 8, 2004 Council Meeting
Prepared by Kary Tillmann, Clerk/Treasurer
CITY OF CORCORAN
SPECIAL CITY COUNCIL MEETING
JUNE 17, 2004
1
The Corcoran City Council met in special session on June 17, 2004 at City
Hall in Corcoran, Minnesota. Present were Councilors Bucher, Gageby,
Guenthner, Lymangood and Thomas. Also present were Administrator
Vergin, Clerk/Treasurer Tillmann, Police Chief Schutte and Attorney Carson.
Mayor Guenthner called the meeting to order at 6:45 p.m., followed by the
Pledge of Allegiance to the flag.
Agenda Approval
MOTION by Bucher, seconded by Thomas, and carried unanimously to
approve the agenda with the following additions:
Police Facility Expansion
The City has received correspondence from bond counsel, which identifies
that Kennedy & Graven is unable to provide an unqualified opinion regarding
the issuance of the bonds. Bonds cannot be issued without an unqualified
opinion. The letter does, however, validate the City’s position on the facility
expansion and the events leading up to this meeting. It is clear that the City
could move forward with the project using a different form of financing.
Mayor Guenthner identified four alternatives available to the Council as
follows:
• Use the General Obligation Bonds and place the question on the
November Ballot
• Use the General Obligation Bonds and call a special election
• Use EDA Lease Purchase Revenue Bonds
• Do not proceed with the project
Councilor Thomas questioned how this could be resolved. It is clear that the
Facility Expansion is not really the issue, but something deeper. Attorney
Carson advised that the reverse referendum is always a viable option for
citizens, provided the process is done correctly. Councilor Lymangood
suggested that the City seek an opinion from the State Attorney General.
Mayor Guenthner added the he feels it would be appropriate to place this on
the ballot for the November election. It is a meritorious project, which ought
to have public support. Councilor Gageby concurred and added that he didn’t
want the City spending additional funds on legal maneuvers matters.
Discussion was held regarding costs incurred to date. Administrator Vergin
advised that including architectural fees, staff time and legal services, the city
has spent $27, 310.00. This does not include all the time donated by
committee members over the last three years to research and develop the
project.
Council questioned how to proceed with the contractor if a different financing
option was chosen. Attorney Carson advised that the contract with Hunerberg
Construction has not been drafted yet, as they were waiting to hear the
outcome of the bonding. They are comfortable proceeding with a letter of
intent from the
Call to Order
Roll Call
Pledge of Allegiance
Agenda Approval
Police Facility Expansion
Available Options
Document 6.a.
July 8, 2004 Council Meeting
Prepared by Kary Tillmann, Clerk/Treasurer
CITY OF CORCORAN
SPECIAL CITY COUNCIL MEETING
JUNE 17, 2004
2
City. Once that is received, the contracts will be drafted. Councilor Bucher
pointed out that delaying the project could result in a substantial increase in
costs (approximately $50,000) due to the current increasing trend in
construction costs, and the fact that the lowest bidder now has seen all other
cost proposals. Councilor Lymangood added that the City has acted
appropriately throughout this process and there is no reason not to move ahead
with the project. Council purposely chose the type of bonding it did, to ensure
that the process was open for public review.
MOTION by Lymangood, seconded by Gageby and carried to proceed with
the Lease Purchase Revenue Bond to finance the Police Department Facility
Expansion. Roll call: Bucher, aye; Gageby, aye; Guenthner, naye;
Lymangood, aye; Thomas, aye. Motion carried.
Discussion was held regarding utilizing funds from the Police Department
Capital Outlay Fund to buy down the bond. The Capital Outlay fund can be
used for the purchase of capital equipment, buildings, etc. Councilor Bucher
suggested that City leave some funds in the account for improvements as
needed.
MOTION By Lymangood, seconded by Thomas, and carried unanimously to
utilize funds from the Police Department Capital Outlay fund in the
approximate amount of $58,000, in order to reduce the bond amount to
$325,000.
MOTION by Gageby, seconded by Bucher, and carried to direct staff to
execute the letter of intent with Hunerberg Construction for the Police
Department Facility Expansion project. Roll call: Bucher, aye; Gageby, aye;
Guenthner, aye; Lymangood, naye; Thomas, aye. Motion carried.
MOTION by Bucher, seconded by Thomas, and carried unanimously to
adjourn the meeting at 7:26 p.m.
_______________________________
Kary Tillmann, City Clerk/Treasurer
Proceed with Lease Purchase
Revenue Bonds
Utilize Police Deparmtnet Capital
Outlay Funds to Reduce Bond
Execute Letter of Intent
Adjournment