Mike Bubany, David Drown Associates, presented a recommendation for the structure of General Obligation Bonds for the Swimming Pool Project during the Chatfield City Council’s July 23 meeting.
The bonds were authorized (up to $4.4 million) by voters in a referendum in the November 2017 special election. Total capital costs, contingencies (additional needs like security cameras), and issuance expenses together come to $4.4 million. Annual bond payments are expected to be about $313,000 per year for 20 years.
Bubany recommended a competitive sale. The city has a Stable AA credit rating.
A resolution was adopted providing for the competitive negotiated sale of $4.4 million GO swimming pool bonds. An official statement will be prepared for reaffirming the city’s credit rating. Awarding of the bond issue is scheduled for August 27 and closing on September 10.
City Clerk Joel Young provided details of a proposal from Fred and Deborah Gerlach who currently own George Haven House (The Oaks). The wall (Haven Wall) in the back of the property along Old Territorial Rd. NE was constructed by Deborah’s father over 37 years, from 1927 to 1964. The couple, in an effort to preserve and maintain the wall for the future, proposed the city of Chatfield accept ownership of the wall and surrounding real estate (10 feet on all sides of the wall). The Gerlach’s will deposit $50,000 in the Chosen Valley Community Foundation to be used for perpetual maintenance of the wall.
Preservation planner Robert Vogel in a letter commented positively on the structural integrity of the wall and recommended accepting the asset. A motion to accept the proposal as presented was approved. Mayor Russ Smith said the wall was an important part of Chatfield.
Other business in brief
• Approval was given for the fifth payment ($85,546.70) to Edge Contracting, Inc. for work on Enterprise Dr. which is over 90% complete. City engineer Matt Mohs said the project is essentially finished; seeding and sod improvements need to be done. A 5% retainage in the amount of $35,081.54 is being held.
• Young explained the offering of a Utility Services Program by Utility Services Partners. The private company services would be offered on the city’s letterhead for marketing materials and the “city would be required to review and comment on all marketing materials.” In return the city will receive 50 cents per month for each program purchased.
Residents can choose to purchase warranties for exterior water lines ($6.75 per month), for exterior sewer lines ($7.75 per month), or interior water and drainage pipes ($9.99 per month). The programs are provided directly to residents by the company. There is no cost to the city and residents can purchase any or all of the warranties or none. Councilor Mike Urban commented that citizens can decide on their own. Mayor Smith said we only are allowing the company to offer the service; we are not advocating one way or the other. A motion to allow the service to be offered was approved.
• Verizon wants to introduce small cell technology at no cost to the city to “provide the community with wireless data service to meet future demands.” The Verizon upgrade was approved. Verizon will pay for the installation and pay the city $175 per year rent. A new light pole with LED fixture and Verizon small cell installation will be installed at the corner of Third St. and Fillmore St. SE. Young said the agreement with Verizon is consistent with state statutes.
• A proposal for new furniture for the outer clerk’s office from HON Company at a cost of $12,589 was approved. The furniture will be for three work stations in the outer office.
• Pam Bluhm, Commercial Club secretary, sent a letter of appreciation for the city’s membership. The commercial club will have a pancake breakfast during Western Days plus a float in the parade.
• Preston’s sixth annual tractor ride takes place on September 15 and 16. Sixty to 70 tractors are expected to travel from Preston to Fillmore to Chatfield City Park past the Chosen Valley Care Center and back to Preston.
• A memorandum of understanding with MnDot was approved regarding responsibility for improvements to downtown lighting. The 2019 Highway 52 Project plan includes improvements along Highway 52 from Marion through Chatfield.