Corcoran approves $4 million bond sale for public works facility

The Corcoran City Council unanimously approved resolutions related to construction of a new public works facility.

The council also approved the 2013 budget and tax levy.



Mayor Ken Guenthner and councilors Roz Milbrandt, George Gmach, Tom Cossette and Rich Asleson conducted a public hearing for issuance of $4 million in capital improvement bonds and $445,000 for general obligation equipment certificates related to the public works facility and capital improvement plan (CIP).

About a dozen community members asked the council questions related to the public works facility, such as why the city chose the site at County Rds. 19/10, questions about the building square footage, and why the project costs as much as it does.

“The council spent 90 minutes talking about the pros and cons and answering questions,” city administrator Dan Donahue later said.

The council ended up voting unanimously to approve four resolutions related to approving a CIP, issuing the sale of $4 million in bonds, issuing the sale of $445,000 for general obligation equipment certificates of indebtedness, and establishing a policy on bonded debt.

The bonds will be issued to finance construction of a new public works facility. The total cost is estimated to be $3,818,176.

After the public hearing, the council also discussed the proposed five-year financial plan since it’s all set up based on the bond sale and proposed budget. The council also unanimously approved the five-year plan, which targets having a 35 percent general fund surplus for cash flow needs.

In other public works facility news, the council discussed architect selection.

Donahue said the construction manager, Ebert Construction, and the project team reviewed architect proposals and recommended hiring Oertel Architects at a cost of $138,000. Oertel also did the pre-design architectural work.

Donahue said the committee recommended hiring Oertel for several reasons, including “understanding of the project scope,” “experience in developing public works facilities,” and “best able to deliver the superior design and project detail.”

The council unanimously accepted the recommendation to hire Oertel.

The council will next host discussion about design and construction issues with Ebert and Oertel.

“They want to have a better grasp of the preliminaries that have to be done … costs, those kinds of things,” Donahue said.

Some preliminary work will be done at the site this year, but the bulk construction will take place in spring, with a late summer/early fall opening.



In other action, the council approved the 2013 budget and property tax levy.

The proposed levy is $2,727,396, or $137,890 more than in 2012. Expenditures for departments are up $42,451. The rest of the increase, $137,890, is due to debt service.

The council must adopt the final budget and levy by Dec. 20. It can lower the levy but cannot raise it before that date.