TRUMAN– Truman City Council reviewed bids for the 2022 seal coat project on Monday. could not anticipate the increased cost.
Of the four offers received, the board discussed the lowest offer from Pearson Bros. Inc. of Hanover, MN was $59,247 at $1.59 per square meter for 37,262 square meters. Street Superintendent John Bosshart said the city has used the company several times over the past few years and was happy with their work.
Council Member Jake Ebert noted that this is 20% higher than they budgeted.
“The money has to come from somewhere” said Bossard.
Mayor Terry Bentele asked if there were any streets that could wait to be done. The city operates on a four-year rotation, making a section of the city every four years. Ebert mentioned the possibility of doing a five-year rotation instead.
Council member Brandon Mosloski suggested using some of the city’s ARPA funds to help pay for the project, and then review next year’s budget for the project. Bosshart said next year’s project is the largest in square meters.
The board approved to award the offer to Pearson Bros. Inc and use ARPA funds to pay for the rest of the project.
Moving on to other matters, Jessica Green of Northland Securities was on hand to review the town’s bond issue. The city is selling $1.45 million in general duty water tax bonds. The issue cost is $24,500. The proceeds of the bonds will be used to finance projects for the rehabilitation of water towers and filters.
Green presented the council with a financing plan and a request for resolution to the public facilities authority. She said it was a 15-year structure and the bonds would mature annually between 2023 and 2037. Interest on the bonds will be payable on February 1, 2023 and semi-annually thereafter.
Green shared that based on current market rates, they are looking at an average coupon rate of 2.53% and an effective interest cost of 2.76%.
“I want to caution that we are in a rising interest rate environment. We are seeing rates rising quite steadily,” she says.
By the time the city issues the bonds, it will likely see higher interest rates. However, looking back at the historical trend in interest rates, Green said they are still in a low interest rate environment, it’s just different from what it was six months ago.
Green said the city hasn’t applied for a rating in the past, so the council can apply for the Public Authority’s Credit Enhancement Scheme, which is specifically for utility-type issues like water and utilities. sewers.
“You could basically have an unrated issue and with this improvement that has this triple A rating”, said Green.
The pricing date would be Monday, May 16, which is also the day of a city council meeting. Green said that would allow for a closing date the week of June 13. She also shared that the average payout on an annual basis would be around $83,700.
The board has proposed to authorize the issue and sale of general obligation bonds. Green said she would be back at the May 16 board meeting.
The board also heard quarterly reports from several departments. Utilities Foreman Brent Brown provided an update on the upcoming water tower work. Brown said he hopes contractors will start in mid-May.
At Monday’s meeting, the board reviewed several logo designs and different shades of blue for the water tower.
Moving on to discuss the campground, Brown said that for the design work, which will include final layout, utility drawings and specifications and permits for the Minnesota Department of Health and Labor, the estimate of the work is $4,000.
Ebert offered to proceed with the design and outline.
Finally, Brown said they also trimmed trees along several city streets and at the cemetery.
Police Chief Justin Jobe said as the weather improves, they plan to run ordinance violations to ensure residents’ yards are clean. He said so far he hasn’t seen as many problems as in the past.
Jobe also said he will start looking for quotes for the new 2023 squad car.
“The indication I get from talking to other departments is that vehicle delivery dates are probably close to 18 months away,” Jobe said.
He said he was also going to get quotes for laptops for the team cars.
Fire Chief Dave Bentz said their rescue truck is expected to be replaced in 2023. He said the department had formed a committee to begin looking at what it would cost to replace it, as well as what exists for the used equipment.
“It still works but it is showing its age. The light tower at the moment is not working…finding parts for it is getting difficult”, said Bentz.
In other news, the council also heard from pool commissioner Kim Breamer, who was on hand to speak to the council about pool employment.
Breamer said they had about six to eight guards for the summer. She said she and the other two pool commissioners have contacted the City of Winnebago as they have a new position called a “pool attendant.” Breamer said that person was not certified as a lifeguard, but responsible for swim lesson registrations, sales and cleaning.
Breamer also included the council with a job listing for a pool manager. She said their pool didn’t have a manager, but three unpaid pool commissioners. She said if adults were interested in helping when behavioral issues arose, that would be good too.
“I don’t know of any pool in the area that doesn’t have someone 18 or older at the pool every day.” Breamer said.
She also said they would like to increase the cost of an annual family pass from $140 to $150 and increase lessons from $35 to $40 and daily admission from $3.50 to $4.00 .
“I think we’re probably one of the cheapest for tuition,” said Mosloski.
Breamer said they take in an average of 75 to 100 kids a summer for swimming lessons. She said she didn’t expect to receive many complaints from people about the minimal price increases.
Finally, Breamer said he plans to open the pool on Saturday, June 4.