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Mounds View City Council October 24, 2005 Regular Meeting Page 8 vehicle from the “Cadillac” version down to a vehicle without all the “bells and whistles.” He 1 stated he can see where Councilmember Thomas is coming from but he has been in contact with 2 the Mayors of Spring Lake Park and Blaine and would support including the command vehicle. 3 4 Councilmember Flaherty stated this is a joint powers agreement and he concurs with 5 Councilmember Thomas. He asked how a command vehicle could be financed if it is not 6 included in the bond referendum and put off for a year. Fire Chief Zikmund stated there are a 7 number of options for that debt. 8 9 Mr. Thistle advised that it could be financed by equipment certificates for 10 to 20 years. The 10 rates could be the same or different but the credit rating would be the same. 11 12 Mayor Marty noted the Mounds View bond rating has recently been increased. Mr. Thistle 13 advised that Blaine is a rated a very strong AA3. 14 15 Councilmember Gunn stated her concern, if it is delayed, is the increase in cost to purchase it 16 next year. Fire Chief Zikmund stated they are seeing 5-11% equipment cost increases, however 17 it is hard to say. He explained one of the things driving that increase is FEMA grant money that 18 has placed more money into the market. 19 20 Mr. Thistle stated another issue is that putting it off even two weeks would push this bond issue 21 into next year. In order to keep the bonds bank qualified, Blaine delayed all of their other debt to 22 next year. If this bond issue is pushed into next year, it would become non-bank qualified and at 23 a higher interest rate. 24 25 Councilmember Thomas stated no one is considering delaying this resolution, but the discussion 26 has been about the delay in the command vehicle. She noted there is really no decision to make 27 because it is up to Blaine, they are issuing the bonds, and they cut the command vehicle. She 28 noted that Mounds View discussed the possibility of cutting costs and she will support the Blaine 29 decision. She stated she does not want there to be confusion that Mounds View can now do the 30 command vehicle. 31 32 City Administrator Ulrich stated he spoke with the Blaine City Manager and learned this is a 33 budget issue. He agreed it is best to support Blaine in their decision but the Mounds View 34 Council could have a separate document, perhaps along with Spring Lake Park, asking Blaine to 35 reconsider for next year. That could also be addressed at a joint workshop meeting with the other 36 cities. He agreed with the importance of supporting the City of Blaine in their decision. 37 38 Councilmember Gunn stated her agreement. 39 40 Mayor Marty agreed that is the diplomatic thing to do. He suggested a joint three City meeting 41 be scheduled to discuss this and other issues. 42 43 City Administrator Ulrich stated staff and administrators discussed scheduling such a meeting 44 and that perhaps two Councilmembers from each City should attend along with staff. 45