07/07/2008 Council Minutes - Laserfiche WebLink

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CITY COUNCIL WORK SESSION -3- July 7, 2008 APPROVED •93 94 Finance Director Rolek reported that what the city has with this development is a debt 95 obligation on the public improvements within the development area. The debt service is 96 about $530,000 per year — principal paid in February and interest paid in August. Some of 97 that has been paid in 2008 because there were funds associated with the hotel and housing 98 that was prepaid. The upcoming August payment is somewhat covered but the real 99 shortage will occur in February 2009 if there is no additional funds received. While 100 Marshall has indicated that they intend to make the assessment payment that has not 101 occurred (agreement is required among the 28 banks involved). Mr. Rolek, regarding the 102 debt obligation, recalled that he has previously presented to the council two options to pay 103 any debt service shortfalls — an interfund loan or a general tax levy. A third option was 104 brought to light by the city's financial consultant. As allowed under state law, some or all 105 of the outstanding bonds could be refunded and restructured to accommodate the current 106 and prospective cash flow, with additional expense however. He has also spoken with the 107 county officer who deals with property foreclosure and tax forfeiture and learned that 108 forfeiture for the properties would not take place until May of 2010 if not paid by that 109 time. He recommends that staff and the council examine all the alternatives in order to 110 make an informed decision. 111 112 Council Agenda Item #1B, Reject waiver of monetary limits on tort liability - Finance 113 Director Rolek noted that the council had some question about this matter and it was pulled 114 from the last council agenda. The memo included in the packet is very explanatory. •115 Basically, the city has certain tort limits under state law and our insurance covers us to 116 those limits. The city has the opportunity to work within the limits or waive them to some 117 extent but by waiving those limits the city is open to higher insurance costs. The city has 118 traditionally rejected the waiver of monetary limits. 119 120 6. Proposals for Legal Services - Administrator Heitke explained that the idea of 121 soliciting proposals for civil and criminal legal services is something that the council 122 directed last year. During the interim, staff held off on the process due to some ongoing 123 legal situations as well as to give the current servicer the opportunity to go through some 124 changes and decide how their services would evolve. The RFPs have been sent out, using 125 the League of Minnesota Cities vendor list as a guide, to the firms that are interested and 126 working in the area. Eight proposals were received and key points have been summarized 127 and provided to the council. A department directors review of the key issues that affect 128 legal services as well as consideration of the depth of the services offered, culminated in 129 the recommendation of two firms — Campbell Knutson P.A. and Kennedy & Graven 130 Chartered. Only the proposals for civil legal services are being presented at this time; the 131 criminal service proposals will be presented at the next work session (Police Chief Pecchia 132 was out of the office for the review). Staff seeks direction on moving forward in a process 133 to select city attorney services. 134 135 The council requested that the top three firms and the Hawkins firm be invited to attend the 136 next council work session for a brief presentation of their services and to allow for a •137 question and answer period. 138