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City Council Regular Meeting Minutes December 8, 2003 Page 12 Councilmember Faust stated taking out radiant infloor heating and installing overhead radiant 2 had been discussed. He indicated he understood there was an energy savings with infloor 3 heating; however, the infloor cost was initially higher but had a payback of approximately two to 4 three years. Mr. Oertel responded he was not certain that was true, as he had worked on many 5 buildings with infloor radiant and overhead radiant. He cited examples that suggested the 6 payback was not that significant. He explained he thought the differences had more to do with 7 preference and comfort. He noted a mechanic working in a bay would prefer the infloor and the 8 heat could be lowered because it was on the floor. He added overhead radiant was better for 9 equipment and apparatus, however. He indicated he did not believe the savings would be 10 significant because people were not working on the floor. 11 12 Councilmember Faust asked if the boilers used for infloor versus ceiling would be different or if 13 the same one could be used, such as a modulating condensing boiler. Mr. Oertel responded 14 boilers could be very efficient; however, the new building did not require boilers. He noted 15 quite a bit of money was saved by using a direct-fired radiant overhead and then using package 16 units in the living and working areas. 17 18 VII. GENERAL POLICY BUSINESS OF THE COUNCIL. 19 A. Resolution 03-103, re: Call for redemption of outstanding General Obligation Tax 20 Increment Bonds, Series 1995B. 21 City Manager Morrison noted the City of St. Anthony issued $2.65 million in bonds to fund a portion of the Community Center(City Hall)project. He explained the debt service for these bonds was paid from Kenzie tax increment revenue and the increment from the bonds had 24 exceeded debt service requirements; therefore, the City had sufficient funds to pay off the 25 outstanding bonds. He stated the call date on these bonds was February 2004 and, in order to 26 call the bonds on that date, it was necessary to issue a call notice 30 days prior to February 1, 27 2004. He indicated Resolution 03-103 was prepared to authorize the bond call and, once the 28 resolution was approved, Ehlers and Associates would prepare and deliver the call notice and 29 coordinate the final payout. 30 31 Mr. Morrison stated the City had invested the funds required to redeem the outstanding bonds 32 and these investments would be converted to cash prior to the closing date. He indicated the 33 amount of funds required at closing was estimated at $1.28 million plus accrued interest and 34 Ehlers would coordinate the transfer of funds required to complete this call with Finance 35 Director Larson. 36 37 Mr. Morrison noted the City initiated action to decertify the Kenzie tax increment district earlier 38 this year, which would be effective for the 2004 tax year. He added it was expected the City's 39 tax capacity would increase by about 6%and this increased base would provide a significant 40 benefit for taxpayers. 41 42 Motion by Councilmember Faust, seconded by Councilmember Sparks, to adopt Resolution 03- 43 103 calling for redemption of outstanding General Obligation Tax Increment Bonds, Series 0 1995B,dated December 1, 1995. 46 Motion carried unanimously.