02-27-86 Finance Comm MinutesFINANCE FEBRUARY 27, 1986
Attendance: Mayor Kennedy, Chairman Palmer, Councilmen Nystul and Ruiz,
Clerk/Treasurer Halver, Director of Public Works Hammer and Roger Hopkins.
BOND COUNSEL
Councilman Palmer called the meeting to order at 8:40 am. and asked Don
Halver for his review of the Bond Counsel proposals.
Halver reported the bids were basically the same. The price was $6,500 for
each. D. A. Davidson reported they would waive $500.00 for services provided
following the sale, if they were the successful bidder.
Dain Bosworth's bid provided for a waiver of all fees if the City decided to
negotiate the sale of refunding bonds with them in conjunction with the new
issue.
Councilman Nystul recommended we only concern ourselves with the new bond
issue and not tie in a refunding issue for existing bonds.
Halver stated it might be beneficial to go with Dain Bosworth because they
have handled our last two issues and would have some of the required
information already generated and on file.
Councilman Ruiz suggested we consider going with D. A. Davidson since we have
used Dain Bosworth for the previous two issues and spread the City business
around.
• Councilman Nystul suggested, if we hire Dain Bosworth, the agreement be
adjusted to only be concerned with this bond issue. He recommended we use
them for this issue and consider D. A. Davidson for the next one.
•
Councilman Nysul moved we recommend to the council we hire Dain Bosworth.
Councilman Ruiz seconded. Councilman Nystul requested we get clarification
from them on any fees that may be waived. He also requested they be able to
provide us with a motion to get the process started Monday night. (March 3,
1986 Council Meeting) The agreement should be scaled down to only address
this one issue.
(Bob Ehlers called back later and clarified he could not, by law, waive any
fees on the sale of bonds. He clarified that if we were to restructure
existing debt and refinance we could negotiate a private sale. He also stated
we could have a contract for sale of the bonds within 30 days and the
proceeds here within 60 days.)
AMOUNT TO BE ISSUED -
Councilman Nystul reported the present plan is to issue $900,000 in bonds and
pay for them with a 12% rate increase now and another 6% next year.
Councilman Nystul reported on the recommendations the Sewer and Water
Committee would be making to the council.
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FINANCE FEBRUARY 27, 1986
• 1. Establish hearings for 12% water and sewer rate increases.
2. Proceed with the sale of the Revenue Bonds.
3. Release the bid bonds for all but the three lowest bidders.
4. Report on roof drains in regards to the the First Alley West
project.
STREET DEPARTMENT BUDGET
Councilman Palmer asked if the Street Department was going to rebuild Fifth
Avenue West North to help solve their budgeting problem.
The committee reviewed the cause and status of the situation.
Councilman Palmer requested the Parking Commission be charged for the
Maintenance and Snow Removal allocated in their budget.
Councilman Nystul suggested we could use other budget line items in the
department budgets to pay salaries.
Councilman Nystul stated we have two extra people and the only equitable
thing to do is have a furlough and then during construction season, if we can
afford them and need them, put them back on.
• Ken Hammer stated if we had the new equipment budgeted for in revenue sharing
he could start street construction earlier in the season. He also requested
we do some long range planning (three years) before making any major
decisions on staffing.
He and Councilman Nystul concluded the immediate need is to have a temporary
reduction in force until construction season starts.
Councilmen Palmer and Ruiz concluded we were right back where we started; the
use of city crews to do the Fifth Avenue W.N. project was intended to help
out.
It was decided the Finance Committee did not have power to take action.
HEALTH INSURANCE
Councilman Grainger called on the phone and asked if former elected
officials are allowed to contribute to and receive membership and benefits
from the City Health Insurance Group. Mayor Kennedy reported he is waiting
for a letter from Bill Smithers and he will follow up on this.
Adjourned 10:00 am.
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