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Minutes of City Council Meeting 20 February 2007 The February, 2007 regular meeting of the City Council of the City of Gem Lake was called to order by Mayor Emeott on Tuesday, February 20, 2007 at 7:09 p.m. in the first floor meeting room of Tousley Ford. Mayor Emeott, Councilors Watson, Schilling, and Artig-Swomley were present. Also present were Bonding Financial Advisor, Todd Hagen of Ehlers & Associates, Inc.; Mark Sweet, Construction Manager; Justin Gese, City Engineer; and City Attorney Trevor Oliver. Other members of the public were also in attendance per the sign -in sheet sent around the room. APPROVAL OF AGENDA AND MEETING MINUTES Mayor Emeott then called for additions, deletions and corrections to the Agenda. Mayor Emeott added New Business Item E, Financial (Treasurer's) Report. No other changes to the agenda were noted. The following actions were taken 1) Motion by Watson, Second by Schilling to accept the change to the agenda was unanimously approved; 2) Motion by Schilling, Second by Watson to approve the Minutes of the January 16, 2007 City Council Meeting was unanimously approved. Public Hearing: Todd Hagen of Ehlers & Associations, Inc. explained that tonight's Public Hearing was for consideration to approve a resolution giving preliminary approval for the issuance of the City's General Obligation Capital Improvement Plan bonds in an amount not to exceed $850,000.00; and adopting the City of Gem Lake Minnesota Capital Improvement Plan of 2007 through 2011 therefore. The bond will have a 20 year pay back period. There will be a debt service the first 10 years of $45,000; and then $70,000 over each of the remaining 10 years. The total amount of expenditures proposed under the Capital Improvement Plan is approximately $1,129,463, including approximately $376,488 to be provided by White Bear Township, and the sale by the City of Gem Lake of approximately $785,000 in bonds to be paid for over a twenty year period. In response to a question why that particular amount is proposed to be bonded, Todd Hagen explained that enough needs to be bonded for to cover all costs. The bond is for an amount "not to exceed" $850,000.00. A question was asked, if the building is only 3,500 square feet, the $1.2 million cost seems high. Todd Hagen explained that because it will be a commercial building certain codes need to be met, such as fire sprinklers, handicap accessibility, and mechanicals. The building will be used as Gem Lake's City Hall. White Bear Township will have two meetings there each month and will use the facility as a polling place for precinct 4. It will also include an office to serve as a substation for the Ramsey County Sheriff Department. The Town will provide the buildable site and extend utilities to the building. Watson noted that Gem Lake is creating a city asset with this building. A question was asked if the project requires 10% or 20% for contingencies. Mayor Emeott noted that 10% has been allowed for contingencies.