4/13/2017 4:37:00 PM Shafer City Council moves forward on road
construction project, extends payoff 2 years
Shafer City Council met April 4 for a regular meeting. All members were present with Luke Jones filling in for city engineer Jon Herdegen.
No hearings were scheduled, the council quickly consented the agenda unanimously.
In new business, Mayor Dan Vogel told new council members Terry Smith and Brad Swenson and about a League of Minnesota Cities annual conference in June in Rochester. Vogel told all new members that he has attended the conference and would highly reccommend they also attend.
In unfinished business, Luke Jones presented the engineer’s report. Jones told the council the street project has recieved three quality bids. Jones said Dresel was the low bidder and Shafer has successfully worked with them in the past. Jones said the bid did come in higher than expected - close to $70,000 higher. Jones said the council can reduce the scope of the job if needed to make up the $70,000 by extending the payments, or eliminate the hydrant replacement plan that was included in the work plan.
Jones said the council could replace the hydrants later, but noted the cost would go up because the city was already getting a good deal with replacements being grouped.
City finance manager Richard Hill told the council the last hydrant the city was forced to replace the cost exceeded $15,000 each time. Hill said his suggestion to the council is to extend the payments of the road project and replace the hydrants now.
Nick Anhut of Ehlers and Associates (the company financing the bond sale for the road project) told the council the city could extend the bond life by two to four years and the payments would not increase. Anhut reminded the council there was no penalty for early payoff. Anhut told the council right now the payoff date is 2022. If they extended the payments they could pay off the bonds by 2022.
Council member Jeff Behnke made a motion to accept the bid of Dresel Contracting. The motion passed unanimously.
Anhut then quickly gave a run down of the bond sale. The amount, $1,160,000 will be available May 2. The sale would close the week of May 23 and the funds would be available early June. Behnke made a motion to accept a resolution providing for the sale of general obligation and utility revenue bonds. The motion passed unanimously.
The council then quickly passed a couple of resolutions including the rezoning of three parcels and a solar ordinance that added wording that differed from the city’s original ordinance.
Council member Patty Mattson then told the council she had recieved bids for a new porta potty provider. Currently Shafer uses Rowe Sewer. Mattson told the council she received a less expensive bid from Jimmy’s Johnnys. Mattson also noted the local rep from Jimmy’s Johnnys lives in Shafer. Mattson then made a motion to accept Jimmy’s Johnnys which passed unanimously.
City Maintenance Supervisor Tim Budig told the council his plan was to flush hydrants the week of April 10.