05/08/1989 Council Minutes - Laserfiche WebLink

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1 1 COUNCIL MEETING MAY 8, 1989 the reserve levels and controlling debt levels. Mr. Bisel asked Mr. MacGillivrary to assume the "worst case" scenario where interest rates rise extremely high and there is no development in these five areas. Mr. MacGillivrary explained that at the end of the first three year temporary bond another temporary bond could be issued. This would allow six years to lapse before a permanent bond would be sold. Mr. Reinert noted that there are currently a lot of small community meetings with consultants at city hall regarding possible improvements and asked about the long term impact of new development and how it is going to affect future bond issues. He asked that this be a topic at a future council work session. Mr. Bisel moved to adopt Resolution No. 33 - 89 Providing for the Issuance and Sale of General Obligation Temporary Improvement Bonds, Series 1989A. Mr. Reinert seconded the motion. Motion carried unanimously. CONSIDERATION OF ACCEPTING A PORTION OF THE BASEMENTS NEEDED FOR THE WEST CENTRAL TRUNK SEWER AND WATER MAINS Mr. Schumacher explained that two of the necessary easements have been forwarded for Council acceptance. He noted that several other easements will be forwarded shortly. Mr. Reinert moved to accept easements from Margaret G Strauss and Marcel Construction, Inc. Mr. Bisel seconded the motion. Motion carried unanimously. ENGINEER'S REPORT - JOHN DAVIDSON Resolution No. 30 - 89 Awarding Bid for Reshanau Lake Estates South, 3rd Addition - Mr. Davidson explained that at bid opening on Friday, it appeared that Albrecht Excavating, Inc. was low bidder. However, after the bid was reviewed, corrected and recalculated B & D Underground is the actual low bidder. Mr. Davidson gave a brief background report on B & D Underground noting that it is a small company with seven full -time employees. They have at times struggled with projects but if the City awards the bid to the second low bidder the City may have to prove in a court of law that this company is not a responsible bidder. In addition, the company awarded the bid must submit a performance and payment bond prior to the signing of the contracts. Mr. Davidson outlined the background of the second low bidder, Richard Knutson, inc. This is a larger company with a good track record. Mr. Davidson recommended that the bid be awarded to the low bidder, B & D Underground subject to the fact that the City Engineer will have to keep a "good eye" on all of the project.