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MINUTES <br />CITY COUNCIL <br />January 10, 1990 <br />Scalze pointed out that the amount of corridor space, <br />whether or not there is a basement, as well as whether <br />the building will be one or two stories effects the <br />cost o£ the project. Scalze asked when those decisions <br />will be made. <br />Fahey replied that final building plans will need <br />Council approval. Fahey also suggested that the size <br />of bathrooms should be reduced. Fahey stated that <br />these issues are not finalized. Fahey did not think <br />that the size of the building could be reduced. <br />Blesener agreed, but suggested that there are other <br />costs included in the project that need not be bonded <br />for. Blesener stated that he did not want a$1,620,000 <br />bond issue since he believed that whatever is bonded <br />for will be spent. Blesener was also concerned about <br />the arbitrage after three years. <br />Farnham reported that the expectation is that the money <br />will be spent before the three years, and, if not, <br />because of low bids or because the project is scaled <br />back, the excess money would be used to make debt <br />service payments. <br />Fahey pointed out that if the City only levies $1.3 <br />million and is short, the financing costs will be <br />prohibitive. Fahey suggested that the City take a look <br />at disposing of excess property, including buildings, <br />in an attempt to write down the cost of the project. <br />Fahey pointed out the property on Twin Lake Blvd. which <br />is owned by the City. <br />LaValle stated that he was not uncomfortable with a <br />$1.5 million bond issue feeling that this was a minimum <br />for meeting the needs of the Fire Department. <br />Fahey agreed that the issue could be cut to $1.5 <br />million, pointing out that furnishings and equipment <br />could be eliminated from the bond amount. Fahey also <br />pointed out that land demolition costs have been <br />included and that there have been people expressing an <br />interest in purchasing the buildings. <br />Blesener stated that he would support a$1.5 million <br />bond issue, however, it was not his intention to spend <br />the entire $1.5 million. <br />Collova pointed out that the most important thing is to <br />get an adequately-sized structure. <br />Page 4 <br />