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HomeMy WebLinkAbout6 - Fire Station Referendum AGENDA: REQUESTED BY : SUBJECT MATTER: DATE: INTRODUCTION: BACKGROUND: 7~ RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF RESOLUTION 93-24 CALLING FOR AN ELECTION ON $2,lOO,000 GENERAL OBLIGATION BONDS OF 1993 MAY 3, 1993 Staff is requesting council authorization to proceed with a public referendum to consider the construction of a new main fire station. There are five prerequisites the city Council must comply with in respect to this action: 1. Authorize a special election to consider the question by the vote of the public. 2. Determine the amount of general obligation bonds necessary to finance the building. 3. Establish the date the election is to be conducted. 4. Approve the ballot question. 5. Notify the Scott County Auditor's Office 45 days 1n advance of the election as required by law. The attached Resolution 93-24 calling for an Election on $1,900,000 General Obligation Bonds of 1993 satisfies each issue with the exception of the official county notification. On 2/1/93 the Fire Department conducted a mini-workshop to give a presentation to the city Council on the building concerns and future needs assessment. Subsequently, the council received fire referendum subcommittee reports which were reviewed on 3/1/93. Boarman, Kroos, Pfister and Associates were awarded the bid for the pre-referendum design proposal for a main fire station on 3/15/93. From the 4/3/93 council Workshop, Staff was directed to: 1. Obtain all building project proceeds through referendum. 2. Work to reduce the amount of the project to the minimum possible below $2.4 million 4629 Dakota S1. S.E., Prior Lake, Minnesota 55372 I Ph. (612) 447-4230 I Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPlDYER DISCUSSION: ALTERNATIVES: without sacrificing the utility of the building. Extensive discussion took place over the course of the workshop regarding the size of the bond issue with respect to its marketing appeal to the public. In simple terms, what would be the optimum dollar amount that would be both acceptab1e to the publlc and serve the building requirements of the main station. The council instructed the Fire Department and the consulting architect to look at revising both budget and design considerations in an effort to reduce the referendum amount from the first attempt in 1991 of $2,400,000. This resulted in a reduction in square footage of the main fire station from 20,000 sq. ft. downward to 17,600 sq. ft. and a substantial cost savings. This updated estimate would require a dollar amount of $2,100,000.00 to construct. (see attached estimate) A referendum parameter of 1.9 - 2.15 million dollars was established by the city council with the consensus that 100% of the necessary funding be provided by a bond issuance with no appropriation from the City's General Fund balance. While a $2.1 million project cost is at the upper end of that scale, it still is significantly less than the narrowly defeated proposal of 1991. The reasons the project could not be reduced further are: 1. Assessment included to assessments estimates. costs of $70,000.00 must be make the land buildable. These were not included in earlier 2. Landscaping costs increased from an estimated $30,000 to $51,000 as a result of the city's new ordinance. visual project increase 3. A telephone system and audio equipment is included in the final cost which produced a $45,000 above original estimates. These elements are essential to provide for a complete project. 1. Approve Resolution 93-24 calling For An Election on $2,100,000 General Obligation Bonds of 1993. 2. Amend Resolution 93-24 to incorporate another time frame or amount as determined by the Cit~ council and specif~ the source of any add1tional funding requ1rement. 3. Deny approval of Resolution 93-24. RECOMMENDATION: ACTION REQUIRED: staff would recommend that the Council adhere to the tentative time schedule of conducting the referendum on Tuesday, June 22, 1993. This would be consistent with the council's action plan and would allow adequate notice to the Scott County Auditor's office to arrange for the ballots to be printed on our optical scan equipment at the county. Motion to approve Resolution 93-24 calling For An Election on $2,100,000 General Obligation Bonds of 1993. Also, outlined within the proposed resolution is the Notice of Special Election and the ballot question itself which has been drafted by the city's bond counsel, Brig9s & Morgan to conform to election law requ1rements. k:~roJtctk\pr' \b\&- PM2 CITY OF PRIOR LAKE FIRE DEPARTMENT BUDGET COMPARISON APRIL 28. 1993 . ";<t', --'~', . . ~'~.' ~.' ...~,.#;,-~~........j~'jr.. ~""""" ':~::"~f' . ORIGINAL BUDGET ESTIMATE JANUARY 1993 NEW MAIN STATION 20,OOOS.F; , REVISED BUOGET ESTIMATE APRIL 1993 NEWMAINSTATIQN,: ; ." . '.:;' - - "":'0: ", ;"::: ." ':', . ,~:_~:. "7,600S.F, :". ~'~" ' ~ ~~~JS". Land AcquisItion City Property ASSGssementl Sewer & Water trunk Storm Water Mangement Street Collector Fee Subtotal $50,000 $46,000 SO $39,337 SO $28,711 $0 $4,655 $0 $70,603 $4,000 $4.000 $3.500 $3,500 $51',500' , ' ' ' $'24,103. $1,500,000 $1,320,000 $168,000 $140,000 $30,000 $51,500 $100,000 $76,000 $187,300 $166,000 $125,000 $109,200 $10.000 $8,000 $0 $15,000 $0 530.000 $2,120;300 "$1,904;700" Survey Solis Testing SOblotal',:,.,:' ",: , Building Construction 17,600 S.r:. @$75 S.J:. SIte Oevelopment landscaping- - - F'urnlture & Equipment Constructfon Contingency 10% Professional Fees @7% Special Testing Allowance Phone System I Aadlo System Audio Visual Systems Subtotal..,;:,. :,':,.' ' , Financing Costa. Relmbursables (Prlntlnglphone/maIVetc) Project Contingency Allowance.- Subtotal,',".:'" ," $75.000 $12,000 $75.000 $65.000 $12,000 OMIT , $77;000 'Note: Shared bOnding costs 0' '10.000 have been deducted from this number. · · Note: Interest on bond proceeds (approx/malefy 530,000) will provIde contingency allowance. · · · Note: Aprlllan<1scap$ costs re'lect new landscape ordinance requirements. ITEMS NOT INCLUDED: 1. Opticom System 2. Apparatus Related Equipment 7n->, EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, MINNESOTA HELD: , 1993 Pursuant to due call and notice thereof, a meeting of the City Council of the City of Prior Lake, Minnesota, was duly held at the City Hall in said City on the ____ day of , 1993, at ____ o'clock _.M. The following members were present: and the following were absent: Member introduced the following resolution and moved its adoption: RESOLUTION 93-24 RESOLUTION CALLING FOR AN ELECTION ON $2,100,000 GENERAL OBLIGATION BONDS OF 1993 BE IT RESOLVED by the City Council of the c~ty of Prior Lake, Minnesota, as follows: 1. This Council has investigated the facts and does hereby find, determine and declare that it is necessary and expedient to finance a main fire station for the City. 2. The proposition of authorizing the issuance of not to exceed $2,100,000 General Obligation Bonds for said purpose shall be submitted to the qualified electors of the City at a special election to be held on June 22, 1993. Said election shall be held between the hours of seven o'clock a.m. and eight o'clock p.m. The polling places for said election will be the Prior Lake City Hall located at 4629 Dakota street Southeast for Precinct NO.1, the Minnesota Valley Community Church located at 5995 Timber Trail Southeast for Precinct No.2, the st. Michaels Church located at l63l1 Duluth Avenue Southeast for Precinct No. 3, the Mdewakanton Community Center located at 2330 sioux Trail Northwest for Precinct No. 4 and the Assembly of God Church located at 6880 Boudin Street Northeast for Precinct NO.5, in the City of Prior Lake, Minnesota. 3. The Manager is hereby authorized and directed to post and publish according to law a Notice of Election and Ballot, and to prepare ballots (of which shall be blue in color) for use at said election, which notice and ballot shall be in substantially the following forms: 237491 NOTICE OF SPECIAL ELECTION NOTICE IS HEREBY GIVEN that a special election will be held in and for the City of Prior Lake, Scott County, Minnesota, on June 22, 1993, between the hours of seven o'clock a.m. and eight o'clock p.m., at which time the following question will be submitted: "Shall the City of Prior Lake, Minnesota, be authorized to issue its fully registered general obligation bonds in an amount not to exceed $2,100,000 to defray the expense of the acquisition and betterment of a main fire station for the City?" The polling places for said election will be the Prior Lake City Hall located at 4629 Dakota Street Southeast for Precinct NO.1, the Minnesota Valley Community Church located at 5995 Timber Trail Southeast for Precinct NO.2, the st. Michaels Church located at 16311 Duluth Avenue Southeast for Precinct No. 3, the Mdewakanton Community Center located at 2330 Sioux Trail Northwest for Precinct No. 4 and the Assembly of God Church located at 6880 Boudin Street Northeast for Precinct NO.5, in the City of Prior Lake, Minnesota, at which place all of the qualified electors of the City residing within the Precinct with respect to which the polling place has been established may cast their ballots. Dated: , 1993 BY ORDER OF THE CITY COUNCIL Isl Frank Boyles City Manager 237491 2 OFFICIAL SPECIAL ELECTION BALLOT CITY OF PRIOR LAKE SCOTT COUNTY MINNESOTA ***** * * YES ***** ***** * * NO ***** "Shall the City of Prior Lake, Minnesota, be authorized to issue its fully registered general obligation bonds in an amount not to exceed $2,100,000 to defray the expense of the acquisition and betterment of a main fire station for the City?" NOTICE: BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARB VOTING FOR A PROPERTY TAX INCREASB. The maximum amount of increased levy as a percentage of market value is %. The amount that will be raised by the new referendum tax rate in the first year it is to be levied is $ INSTRUCTION TO VOTERS: If you wish to vote in favor of the above proposition, mark a cross (X) in the square before the word "YES". If you wish to vote against the above proposition, mark a cross (X) in the square before the word "NO". (NOTE: On the back of each ballot shall be printed the words "Official Ballot", the date of the election and lines for the initials of the judges.) 237491 3 4. Said election shall be held and conducted in accordance with the statutes of the state of Minnesota applicable, and the Council shall meet as required by law for the purpose of canvassing said election and declaring the results thereof. The motion for the duly seconded by member thereof and upon a vote in favor thereof: adoption of the foregoing resolution was and, after full discussion being taken thereon, the following voted and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. 237491 4