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City Council Minutes 02-11-2013 SpecialMINUTES SPECIAL MEETING — MONTICELLO CITY COUNCIL Monday, February 11, 2013 — 5:30 p.m. Mississippi Room, Monticello Community Center Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf Absent: None Other: Wayne Oberg, Jeff O'Neill, Ron Hackenmueller, Angela Schumann, Kitty Baltos, Tom Pawelk, Tom Moores, Matt Theisen, Steve Joerg, Ann Eckman, Cathy Shuman 1. Call to Order Mayor Herbst called the special meeting to order at 5:30 p.m. 2. Purpose of Meetinz Capital Equipment Items and Financin¢ Wayne Oberg explained that this discussion is in conjunction with a bond issue item on the regular council agenda, which would allow staff to begin the process of obtaining bond financing for designated capital equipment items. 3. Discussion of Capital Equipment items to be included in bond issue Wayne Oberg explained the process for purchasing capital equipment via a bond issue. A reimbursement resolution must be approved by Council for the total amount of the note and a listing of the anticipated capital items. The total approved in the reimbursement resolution must be expended for capital equipment. However, Council has the option to make changes to the capital items by resolution if there is a need to make an adjustment along the way. As each item is prepared to be purchased, the information would be presented to Council prior to the final decision. Wayne Oberg noted that the Streets Department did make a change to the amount for tractor listed for them. They may opt to keep the old tractor instead of trading it in as they might be able to get more value by selling it outright. Clint Herbst verified that the intent at this meeting is to review the items on the list and decide what to include in a reimbursement resolution. Wayne Oberg concurred with that and verified that this would be the complete list for 2013. Glen Posusta commented that he does not support including a sign lab system in this year's bond. He talked to a person that runs a sign business and it could take up to a year to learn how to run the equipment properly. He also feels that the City could purchase a lot of signs for $30,000, and Public Works may not have the time to deal with the sign making process. City Council Special Meeting Minutes— February 11, 2013 Page 1 Glen Posusta asked about the difference in pricing for the dump trucks. Public Works explained there is a higher trade -in value on one of the older vehicles which reduced the estimated price. There was a short discussion on the dump trucks proposed on this list compared to the trucks which were previously purchased for public works use. Glen Posusta asked Wayne Oberg to explain how this bond would work. Wayne Oberg explained that each year's bond repayment would be allocated to the various departments that utilize the equipment that is purchased. The departments will be charged for the equipment and the money will go into an internal service fund to pay the bonds plus interest and depreciation. The intent is that the internal fund would, in time, generate money to offset future purchases of equipment. Council would be responsible for decisions for any future capital equipment bond issues that would be presented. At this time it is not known how often a bond issue for capital equipment would be proposed. Wayne Oberg commented that there are several conditions on items that are included in a reimbursement resolution for capital equipment. The equipment has to have a useful life at least equal to the length of the bond issue. The equipment can be purchased over time but the money does have to be expended as part of the total bond issue. Tom Pawelk noted that some of the bids, such as for the mowers, are from the state contract. Some of the state bids expire at the end of February and the vendor may not honor the bid amount after that. Lloyd Hilgart mentioned that he is not necessarily in favor of the sign lab system. Clint Herbst suggested that perhaps Council could approve a lower amount such as $500,000. If the purchases come in better, Council could look at amending the reimbursement resolution and could further discuss the sign lab system. Ron Hackenmueller offered to lower the amount on the van and Tom Moores said the amount on the tractor could be lowered slightly. Tom Perrault stated that he does not necessarily oppose the sign lab system, especially if Public Works can make their own signs at a cost savings to the city compared to ordering signs. Council consensus is to consider the reimbursement resolution at $500,000, eliminate the sign lab system at this time, and adjust amounts for several of the listed items. 4. Adjourn TOM PERRAULT MOVED TO ADJOURN THE SPECIAL MEETING AT 5:56 P.M. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 5 -0. Recorder: Catherine M. Shuman Approved: February 25, 2013 Attest: City inistrator City Council Special Meeting Minutes — February 11, 2013 Page 2