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City COlUlcil Minutes November 19, 2001 Page 8 ------------------------------- ----- and architectural fees need to be added. Additionally, it was noted that with all three options that utilities have land available for their building construction which is connected to the city hall facility. Pat indicated that the building committee had a strong preference for option #3, which includes the public safety facility. Discussion was held regarding whether there was an immediate need for the fIre station to be built. Fire Chief Bruce West indicated that a station would have to be built within 5 years and more than likely 2-3 years. Bruce stated his and the departments support for this site and option three. Lori Johnson discussed the possible ways of fInancing the project. She indicated that one option includes partially funding the project through reserve funds. She indicated that there would be approximately 1.75 million available in the Government Buildings Reserve fund for future city hall and police station expansion needs at year-end. She noted that this source of funds has also been discussed for use as the city's contribution with the YMCA project. Lori reviewed the other two methods of debt fInancing, which include General Obligation bonds with voter approval, and lease purchase bonds that can be issued without voter approvaL Both of these methods would put the expenditure in the tax levy for 20 years. There was a consensus of the Council to go with option #3 which includes the "public safety" campus and that the Fire Department be included in the design. It was also the consensus of the Council that a Fire Station would not be proposed for Joplin Avenue site and that the City could market the property on J oplin Avenue. It was the consensus of the Council to use a lease purchase method without going to the voters and to move forward as quickly as possible to take advantage of the good construction bidding environment and the low interest rates. Councilmember Tveite suggested a $6 million dollar bond issue for the public safety building and the 1.7 million in reserve to be used for remodeling city hall. Councilmember Motin talked about the possibility of building the entire city hall project through 2023 because of the low interest rates. He requested that the Finance Director research the fInancial impact of doing a full project now versus scaling it back and completing it in phases. COUNCILMEMBER DIETZ MOVED TO AUTHORIZE GARY TUSHIE TO PROCEED WITH THE DESIGN PHASE OF THE PROJECT. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 10. Adjournment There being no further business, Mayor Klinzing adjourned d1e meeting of the Elk River City Council at 9:15 p.m. Sandra Peine City Clerk