CC MINUTES 04261988 - Laserfiche WebLink

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1 awarded during the Council's May 24th meeting following the openin • 2 of the bids in the City Administrative offices on the 19th. 3 The City Manager said one of the key actions which must precede th 4 awarding of the bids would be Ramsey County allocating CDBG funds t 5 help St. Anthony to pay for the filtration system which was schedule 6 to be considered at the Ramsey County Board meeting just prior to th 7 Council meeting the 24th. 8 Bonding Considered Better Option Than Internal Borrowing for Temporar 9 Water Filtration System 10 The copy of the resolution in the agenda packet proposed interna 11 borrowing of $875,000 to cover the costs of a $450,000 temporary GA 12 system; $194,867 the City has already spent on attorneys' fees 13 consultants costs, etc. ; and $200,000 to pay costs anticipated t 14 accrue if the Army doesn't settle with St. Anthony for a couple o 15 years. Mr. Childs indicated that, since the resolution had bee 16 inserted in the agenda packet, he had followed Council instructions t 17 approach the City's financial consultant, Springsted, Inc. regarding a 18 alternative method of financing those costs. The consultants ha 19 provided spreadsheets for two different bond issues the Council migh 20 want to use rather than to deplete either the City's Special Assessmen 21 or Water Fund. 22 Mr. Childs detailed for the Council the approximate costs which th 23 City had incurred to date because of its water contamination problem 24 for which there had been no reimbursement covered: 25 *$23 ,000.00 the City had to pay for the Roseville water 26 connection; 27 *$42,500.00 in water payments to Roseville; 28 *$10,000.00 for extra monthly water testing; 29 *$12,000.00 initially paid to three engineering firms for pre- 30 liminary studies of the problem; 31 *$40,000.00 paid to date to Liesch and Associates for expert con 32 sulting services related to the City's lawsuit against the U.S. 33 Army et al in conjunction with the water contamination problems; 34 *$53 ,000.00 billings to date from Briggs and Morgan law firm who 35 are representing St. Anthony in that lawsuit. 36 In addition to other anticipated costs, Mr. Childs reminded the Counci 37 that after 10 years when the EPA no longer pays for maintaining th 38 system, the City would have to assume about $130,000.00 of thos 39 annual costs forever, or until the contamination ceases. As 40 contrast, the City Manager told the Councilmembers he understood Ne 41 Brighton had already spent over $800,000 in consulting and attorney' 42 fees in conjunction with their own water contamination problems. 43 The financial consultant had provided information on two bondin 44 options to finance the costs. The first was a General Obligation issu 45 which although it pushed the City's first principal payment as fa • 15