02-12-2014 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL FEBRUARY 12, 2014 The Administrator reported that in considering the project, one of the committee's goals was to have all City equipment stored indoors at one site. Currently we use about 14,000 square feet for equipment storage when you consider the current Public Works and Parks shops plus storage at the former Roseville Plumbing building. In touring other public works facilities, it also became evident that having drive- through capabilities for equipment was preferred and would improve efficiencies of the public works /parks operation. The Administrator then reviewed the proposed site plan for the project, which was considered at the February 7th Special Council meeting. The Administrator noted that the square footage for the building is proposed at just over 26,000 square feet, and increased the estimated cost of the project by $800,000. The Administrator estimated that total project costs including land are now at approximately $4 million, which he noted one resident had suggested would be the cost of the project. The Administrator acknowledged that the City's initial estimates were too low given the building's configuration. He also pointed out that the project has yet to be bid, and the City is working to refine the project and estimates. The Administrator noted that to proceed with the project as proposed by the design committee would require either an increase in the bonding for the project, or the City could use its cash for the additional cost. In discussing this with the City's Financial Advisor, Ehlers & Associates, the City has the ability to issue Water and Sewer Bonds to make up the difference rather than additional Capital Improvement Bonds. The rationale for this approach is to borrow money at low rates for 20 years versus using cash reserves. The Administrator then mentioned that comments have been made which suggested that the City should have purchased the former D & T Trucking site for its new Public Works /Parks Facility. D & T Trucking was asking $4 million for a building that was just under 26,000 square feet. That building has approximately 18,400 square feet in vehicle storage area and 7,200 square feet in office area, which is more office space than necessary for the City's use. The Administrator further noted that the proposed layout of the new facility is better and will be more efficient for the City's operations than the D & T Trucking building would have been. With regard to the additional cost of the project, the Administrator again noted that the City could use cash, but emphasized the advantage to selling a bond that would spread the financing of the project out over the next 20 years. The Administrator reported that the debt service on the bond issue 4