02-04-2020 City Council Meeting Minutes

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City Council Minutes February 4, 2020 Page 6 of 11 ----------------------------- the contract gives the contractor the right to ask for a change order and the City has the right to ask for a change. COUNCIL MEMBER SWANSON MOVED TO AWARD THE RASMUSSEN ROAD AND SOUTH WASHINGTON AVENUE ROAD 8� UTILITIES IMPROVEMENT PROJECT TO RL LARSON EXCAVATING IN THE � AMOUNT OF �2,396,792.43. COUNCIL MEMBER SEILS SECONDED THE MOTION. MOTION CARRIED 5-0. B. Construction Phase Enqineerinq Services Proposal Tim Houle presented to the Council a proposal from WSN to handle the administration, field staking, and the observation for the Rasmussen Road & South Washington Avenue Improvement Project Construction Contract. He stated that they will have an observer onsite and said the observer usually ends up being the liaison with the residents and the businesses. He said the proposal is an estimated amount of$168,000 and they are coming in a little under the budget from the study phase estimates. COUNCIL MEMBER SEILS MOVED TO APPROVE THE CONSTRUCTION PHASE ENGINEERING SERVICES PROPOSAL FROM WSN IN THE ESTIMATED AMOUNT OF $168,000. COUNCIL MEMBER SWANSON SECONDED THE MOTION. MOTION CARRIED 5-0. C. General Obliqation Bond Preliminarv Report Nancy Malecha went over the Overview of the Project and Component Costs from Jason Murray from David Drown and Associates with the Council. She stated the construction amount is just under$2.4 million and the engineering is about$384,000, which includes engineering the City has already paid for and the proposal that Council approved tonight. She said there is $150,000 in the cost for contingency and $50,000 for admin and legal for a total project cost of$2.9 million. Ms. Malecha stated the bond issuance that the City is looking for is just over $2 million. She explained that Mr. Murray broke down the type of bonds they are proposing to issue, one is a General Obligation Disposal Systems Bond and the other one is a General Obligation Utility Revenue Bond. She also explained some Highway 371 Turnback funds will be used for the project and the average annual tax levy for the debt will be around $86,100. Ms. Malecha explained that on the utility revenue side, the water and sewer funds will need to generate roughly or pay for about $84,000 of the bond every year for the next 15 years. She stated that Mr. Murray talks about it being a 15 year term, which is consistent with the financial plan and it is callable any time after February 1 st of 2029. She said the City will have to get a rating they will probably either use Standards 8� Poor's or Moody's to do that.