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Wall Street comes to Main Street


Fri, Oct 17th, 2008
Posted in Government

Spring Valley - "We've been kicked in the rear twice since we last met!" These were the words of Mike Bubaney of David Drown Associates as he addressed the Spring Valley City Council at their October 13th meeting. The comments were made as Bubaney brought the Council bad news regarding the status of financing of 1 Million dollars for two new generators for the City's Electric Utility.

Bubaney told the Council that the original proposal for payment was to join with several other communities in a pool debt program. This would eliminate the need for Spring Valley to carry the entire debt up front and to share the loan with other communities. Climbing interest rates in the last two weeks has dried up that possibility and now the City will be forced to seek other funds, such as a competitive bid with anticipated higher interest rates. Those rates went from 4 1?2% to 5 1/2/% and the project cost is projected to be $1,968,700.

"For the most part this was caused by the market problems on Wall Street", said Bubaney.

To move the project ahead the Council approved a resolution authorizing David Drown to solicit bids for the competitive negotiated sale of the Bonds. The opening of those Bonds is scheduled for November 10, 2008.

Other Business

In other business, the City Council heard a request from the owners of Dave's Cycle who have asked for an extension to move from the old lumber yard property. They had been scheduled for October 15 but are asking for an additional two weeks. City Administrator Deb Zimmer said that they still owe $3,400 in back rent and Bill Bires stated that if they gave them the extension perhaps they will pay the overdue rent. The Motion passed and the extension was granted.

• Council members showed their dissatisfaction with the 2008 Hudson Improvement Project and the speed that it is moving along. The comments regarding construction of sidewalks and curb and gutter came forward as Road Constructors, Inc. has asked for payment certificate number 3 in the amount of $296,023.18. Administrator Zimmer said that they were permitted 75 work days and that has stretched out to be 80 work days and this may result in liquidated damages of $1,500 per day. Council members were assured that there will be adequate hold back funds of $27,708 in the form of retainage.

• A recent freeze up of the furnace at the Community Center resulted in damage to the ceiling of wallboard and bids will be solicited for repair. It apparently happened during an event at the Center and is located at the front part of the building. Discussion was held regarding replacement of the whole ceiling or just partially where it was damaged. Another thought was to install removable ceiling tile in case something like this happens again.

• The City will be renting a shredder to dispose of many documents and this will be made available for residents to use as well. If you have documents that need to be shredded you can go to the Ambulance Building between 9 and 11 a.m. on October 25th. Businesses will be restricted to 10 boxes and nothing larger than a staple.

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