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City Council Study Session Minutes 17 <br /> • August 14, 2001 <br /> Page 3 <br /> 1 item with the Council. Bob Kost, URS Corporation, indicated there was a bid opening <br /> 2 for Central Park on August 7, 2001 for a second time, after revisions were made to the <br /> 3 first bid. Mr. Kost noted the estimates were around $1,600,000 with Veit& Company. <br /> 4 coming in as the low bidder. <br /> 5 Mr. Kost indicated along with the park redevelopment, the City Hall would be receiving <br /> 6 an irrigation system at a fee of$28,100. He noted it is the Park Commission's <br /> 7 recommendation to approve the bid to Veit& Company. <br /> 8 Councilmember Horst stated $1,600,000 was originally budgeted for the park <br /> 9 redevelopment and asked if the $625,000 tax abatement would still be available. He <br /> 10 indicated his understanding was that this would be approximately half of the original <br /> 11 estimate. City Manager Mornson noted this was news to him as the City has an <br /> 12 agreement with the school district for these funds. He indicated he was under the <br /> 13 impression the school district would be providing these funds and noted he would need to <br /> 14 check with the school district on this item in conjunction with Springsted. <br /> 15 Councilmember Horst asked how the abatement funds worked. Mayor Cavanaugh stated <br /> 16 the school is on the hook for these funds as it is not TIF funding. <br /> • 17 Councilmember Horst stated it was his understanding the $250,000 general fund reserves <br /> 18 were meant to be used as rainy day funds. He indicated additional funding from the <br /> 19 County was being lost and stated using these funds may not be the wisest decision at this <br /> 20 time. <br /> 21 Councilmember Sparks asked if there were contingent funds within the budget for rainy <br /> 22 day issues. Mayor Cavanaugh indicated the budget has approximately $900,000 in its <br /> 23 budget for overages within the budget. <br /> 24 Councilmember Horst indicated everything was being taken out of the water filtration <br /> 25 fund and stated this was a high price for the City to pay. City Manager Mornson stated <br /> 26 this was not a correct statement, as the original principle would not be touched and that <br /> 27 only interest would be taken from this.fund to be used for the park improvements. <br /> 28 Councilmember Horst asked if there were other sources of money available for Central <br /> 29 Park. City Manager Mornson stated $1.2 million was put into the City Hall and $500,000 <br /> 30 into the Silver Lake bridge project just recently, which makes additional funding sources <br /> 31 unavailable at this time. <br /> 32 Councilmember Horst stated, it was his opinion, if the Council moves forward with this <br /> 33 item the City would be spending down its reserves without any way of replenishing them. <br /> 34 City Manager Mornson indicated the City has taken on numerous projects in the past <br /> • 35 several years and stated future projects will be able to be taken on as funding allows. He <br /> 36 explained the City could always assume debt if additional funding was needed. <br />