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Paynesville Press - Jan. 15, 2003

Paynesville City Council

By Bonnie Jo Hanson

The Paynesville City Council took the following actions at their meeting on Wednesday, Jan. 8.
  • The council approved refinancing $1.16 million in bonds. The bonds were originally issued to the hospital in 1987 and were refinanced in 1993. They are being refinanced again now because interest rates are at a 40-year low.

  • While the bonds are in the city's name, the hospital has assumed responsibility for paying them. The refinance should save the hospital $100,000 over the next eight years.

  • The council heard a verbal report from Tom Foster of SEH, the lead engineer on the Paynesville Regional Airport project. Foster presented the council with an updated construction estimate of $1,283,000 for the proposed airport, including runway grading, paving, and lighting, paving the apron and taxiway, and preparing the hangar site. This estimate is nearly $50,000 over the last estimate but includes nearly $100,000 in contingency. Of this, nearly $800,000 will be paid by the state and the rest by the city.

  • (This portion of the project does not include land acquisition, the price for which is still being determined in court. The budget for land acquisition is still $373,000.)

  • Foster also gave the council a new timetable for the project. He expects to open and award bids in February. Construction should begin by the end of March and the first phase of the project (runway, apron, and hangar site) should be completed by July 2003.

  • The council voted 4-1 (with council member Harlan Beek voting nay) to approve the construction budget and timetable. Foster will now present it to the state for approval and payment.

  • The council heard a verbal report from city engineer Pete Carlson regarding the stormwater improvement project for Lake Avenue, First Street, and the Michaelis/Olmscheid Addition. Bids have been let for the project, and Carlson will ask the county board to delay awarding their bids until the city awards its portion of the job. Carlson also suggested that while the project is under way, repairs should be made on the sanitary sewer lines in the area of First Street.

  • The council reappointed council member Dennis Zimmerman as acting mayor. Zimmerman will serve as mayor if mayor Jeff Thompson is unavailable.

  • The council approved committee appointments for 2003: airport commission...Dave Peschong; CAREERC...Thompson and Peschong; cable committee...Jean Soine; Community Education... Zimmerman; EDAP board... Thompson and Soine; environmental committee...Soine; finance committee...Harlan Beek and Zimmerman; human rights commission...Soine; municipal off-sale liquor board...Peschong and Thompson; park/tree advisory committee...Beek; personnel committee...Thompson and Peschong; planning commission... Zimmerman; police committee... Thompson; public charitable trust fund...Thompson; public charitable trust fund ad hoc...Thompson; public works committee...Beek and Peschong; website ad hoc committee...Zimmerman and Thompson; weed inspection...Thompson; wellhead protection committee...Beek.

  • The council approved the Central Minnesota Federal Credit Union, Community First National Bank, and Farmers & Merchants State Bank as the city's official depositories.

  • In other assignments and appointments for 2003, the council designated the Paynesville Press as the official newspaper for the city, Frauenshuh and Spooner as the city attorney, Butch Schulte of Mid Minnesota Development Commis-sion as building inspector; city administrator Steve Helget as treasurer; Short Elliot Hendrickson as city engineer; and Dennis Nacey as emergency services director.

  • The council approved a Tri-CAP deferred payment agreement and mortgage in the amount of $2,500 for Andrew Viessman. The program provides forgivable loans for first time home buyers in the area.

  • The council approved a pay equity report as required by the Minnesota Department of Employee Relations. The state-required report helps ensure that cities are in compliance with laws that require equal pay for men and women.

  • The council approved transferring $456.80 from the general fund into the Stearns Manufacturing TIF fund. The fund, which was running at a deficit until the transfer, was then closed.
  • The council approved a final payment of $31,724.84 to the Paynesville Development Corporation for the Stearns Manufacturing TIF fund. The payment concludes an obligation of $150,000 plus interest.

  • The council approved rescinding a resolution passed in December that would allow the city to use funds from the EDAP revolving loan fund to obtain membership in the Minnesota Community Capital Fund Program (MCCF), and approved a resolution to participate in MCCF contingent on approval from the Minnesota Department of Trade and Economic Development (DTED). The city must obtain approval from DTED because a DTED grant is part of the monies in the EDAP account.
  • The council approved, by resolution, having Zimmerman serve as the technical support provider for the city's computers. Zimmerman abstained from the vote.

  • The council approved changing the date for a meeting in December 2003. Since the meeting falls on Christmas Eve, it has been rescheduled for Tuesday, Dec. 23, at 6 p.m.

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