11-28-1994 CC MIN - Laserfiche WebLink

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City Council Minutes November 28, 1994 Page 2 e COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 94-123, A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF THE CITY'S $1,010,000 GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 19940. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 4-0. COUNCILMEMBER SCHEEL MOVED TO ADOPT RESOLUTION 94-124, A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF THE CITY'S $1,550,000 GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 1994E. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4.0. 3.3 Ice Arena Proiect Jeff Gongoll, Ice Arena Task Force Chair, reviewed the staff memo on this topic. Staff memo included the following components: · financial reports; · task force recommendation to hire RSP Architects for design services for the Ice Arena Project; · review of the schedule for Ice Arena Project and target dates. e Jeff Gongoll stated that the task force will be requesting council authorization to hire RSP Architects to provide the necessary schematic design and fine tuning of the costs for the project. Jeff Gongoll introduced Brad Lemberg who is a construction manager for the Ice Arena Project. Councilmember Dietz questioned Mr. Lemberg as to cost projections for the project. He stated he did not want to commit money for an architect until he is assured that the City can afford the project. Brad Lemberg stated that he would like the Council to consider hiring an architect to provide preliminary drawings, soil borings and schematics in order to get more accurate cost projections for the project. He stated that an average cost for an ice arena, completely finished at 49,000 square feet. would be approximately 2.8 million dollars. Dave McGillivray of Springsted briefly summarized the financing options. He indicated that funding by gross revenue bonds would be the most viable. He explained that funding by gross revenue bonds reqUires that bond payments are derived from the revenues of the facility, therefore, binding the City to operate the ice arena for the life of the bond. He also explained that the City would be required to hold $260,000 to pay for the bond issue in case the ice arena does not raise enough revenue to pay for the bond. e COUNCILMEMBER HOLMGREN MOVED TO DIRECT STAFF TO ENTER INTO NEGOTIATIONS WITH THE RSP FOR DESIGN SERVICE AT A MAXIMUM OF $89,500, WITH THE $89,500 BEING PAID IN INCREMENTS AS THE PHASES OF THE PROJECT ARE COMPLETED. COUNCILMEMBER DIm SECONDED THE MOTION. Councilmember Holmgren thanked Finance Director Lori Johnson and City Administrator Pat Klaers for their work on the ice arena project.