2010.06.07 CC Minutes - Laserfiche WebLink

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City Council Meeting Minutes for June 7, 2010 Page 6 of 9 presented to the City Council. Mr. Rick Gwynn attended this City Council meeting and presented the petition that was signed by 19 residents who supported the project, four who were undecided, three who were opposed to the project. Two property owners were available. It was noted that a review of the petition would need to be done to determine if the petition met all the legal requirements. Petryk made motion, Weidt seconded, to proceed with the feasibility study on the proposed Everton/Ethan Avenue neighborhood street reconstruction project. All Ayes. Motion carried. Public Hearing on Proposal to Replace Lease Revenue Bonds with CIP Bonds At its May 3, 2010 meeting, the Council scheduled a public hearing to take comment on the proposed issuance of Capital Improvement Plan Bonds to replace existing Lease Revenue Bonds that were used to finance construction of the fire station and city hall facility. Community Development Director Bryan Bear provided a brief presentation regarding the proposed refinancing plan noting that the City is not issuing additional debt, but simply refinancing existing bonds to take advantage of lower interest rates. The Lease Revenue Bonds were from 1998 in the amount of $1,165,000 for the construction of the Fire Hall and in 2001 in the amount of $1,870,000 for construction of City Hall. Mayor Fran Miron opened the public hearing. There were no comments, and the Mayor closed the public hearing. Council had questions for Paul Steinman of Springsted, who was on his way to the meeting, and the Council proceeded to discuss the next few item on the agenda until he arrived. When Paul arrived, Council continued discussion on the issuance of the General Obligation Bonds. Paul explained that replacing the bonds with General Obligation Bonds would lower the interest rate to around 2.38%, saving the City approximately $99,500. The balance on the existing bonds is approximately $1,520,000. Haas made motion, Weidt seconded, to approve Resolution 2010-21 providing for the competitive negotiated sale of $1,375,000 General Obligation Capital Improvement Plan Bonds, Series 2010A, and RESOLUTION 2010 — 22 GIVING PRELIMINARY APPROVAL FOR THE ISSUANCE OF GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS IN AN AMOUNT NOT TO EXCEED $1,450,000 AND AMENDING THE CITY OF HUGO MINNESOTA, CAPITAL IMPROVEMENT PLAN THEREFOR. Ayes: Haas, Weidt, Klein, Petryk, Miron Nays: None Motion carried. Recommendation from BR&E to Host Business Networking Breakfast on Tuesday, June 15, 2010 at Hugo City Hall with BR&E/HBA/BNI At its May 10, 2010 meeting, the Hugo Economic Development Authority (EDA) discussed the implementation projects recommended by the Business Retention and Expansion (BR&E) team,