07-19-83 S&W Comm MinutesFINANCE COMMITTEE AND SEWER AND WATER COMMITTEE MEETING
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The Finance and Sewer & Water Committees met at 4:45 P.M. on 19 July 1983 in
the committee room at City Hall. Present were Councilmen Ruiz, Nystul, and
Saverud, Mayor McDowell, Water Superintendent Hughes, Finance Director Swanson
Consultant Tom Flynn and Engineering Consultant Paul Stokes.
The committees reviewed a letter from Stably Engineering on the bid tabulations
for the Wastewater Treatment Plant. As noted in the letter there were minor
deviations in the bid from Tri-Co Equipment Company.
Based on the letter the Committee agreed to have the City. Attorney draft a
resolution recommending the acceptance of the two lowest bids. Those are
Tri-Co Equipment Co. for the truck at $83,874 and the construction bid of
Morgen & Oswood Construction Co. for $2,101,750. Paul Stokes will contact
the City Attorney for the resolution and the other necessary documents.
The Council will pass the resolution at the August 1 meeting and the bids will
then be forwarded to EPA.
The committees agreed with the.recommendation of_Paul Stokes that the J�,id bonds
of all but the three lowest bidders be released. Paul will so notify the Acting
City Clerk.
The committees reviewed the items to be included in the revenue bond issue.
They are:
Grant Funding $ 527,200
Bond Reserve (approx) 105,000
Sewer Cleaning_Machine 125,000
Repayment for the Big A 197,985
Bond Costs (approx) 9,000
$ 874,185
The Committees agreed that the bond reserve be included in the proceeds of
the issue. The advantage as explained by the bond counsel is to reduce the
interest rates by about '%. The Committee agreed to include the estimated
cost of a sewer cleaning machine. Discussion was made about purchasing it
on a lease purchase. The approach chosen is based on the theory that it will
free up about $w6,000 per year for 5 years that can be used for other improvements.
The Committee also discussed the replayment of the B A loan from the Sewer
Capital Improvement Fund. Councilman Nystul recommended that the repayment be
made to insure reasonable reserves for the intended purposes of the hook-up fee.
He further recommended that no interest be repaid on the theory that the entire
sanitary sewerage system has benefited from the Big A and that it is a matter
of theory whether it should be repaid or not. Finance Director Swanson felt
that the amount plus interest be repaid. He also recommended that the ordinance
be amended to allow for the type of loan that was made and clarify the uses.
The Committees agreed to include only the principal of the Big A.
The total issue will be rounded to $875,000. Councilman Nystul will call
Kreg Jones of D.A. Davidson & Co tomorrow and advise him of the amounts.
• Councilman Nystul also advised that County Assessor Long has reviewed the
differences in the tax increment financing district for the last two years.
The primary reason for the increase this.year is the allocation of the centrally
assessed utilities by the State Department of Revenue. They have included a
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Finance Committee and Sewer and Water Committee Meeting - 7-19-83
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sizeable value of Northwestern Telephone in the TIFD. Other increases are
due to the other utilities and other corrections. He feels that with the work
done by Vicki Walters with his department, the property is correctly listed.
The Finance Committee was asked by Finance Director Swanson the status,of the
computer bids. It was pointed out that the Radio Shack did not provide any
software for the BARS applications. It was the opinion of the Committee that the
Radio Shack bid be rejected as not meeting requirements. The acceptance of the
Big Sky Data Bid is pending a review of the preliminary budget.
Finance Director Swanson asked about the errors in the tax increment financing
district distributions from the 1981 Real Estate taxes. Councilman Nystul
advised that in conversations with Assessor Long and County Data Processing
Manager Staub that they are aware of the error. The correct percentages and
tables are available. It is their understanding that when the County Treasurer
finishes the corrections due to SB384 that they will then run corrections of
the distributions. We will just have to wait a bit. Councilman Nystul will
contact the City Treasurer.
The eeting adjourned at 6:10 p.m.
ary W. Nystul
Finance Committee
Luis B. Ruiz, Jr.
Sewer & Water Committee