07/03/1996 - Minutesf::) eri,-, - Cd rn r n , 7`- E
PUBLIC WORKS DEPARTMENT
3 July 1996
TO: Finance Committee
FM: City Engineer
RE: Committee Minutes
The Finance Committee met at 7:30 AM, Wednesday, 3 July for a
breakfast meeting at Myhre's. Members present were Bob Geiger, Don
Morrison and John Clauson. Also present were Kris Tompkins and
Larry Curles.
The Committee discussed the repair of Prospect Alley. In
November 1995, the alley was damaged when the rock wall behind
Woody Hooser's building failed. The Committee discussed the history
of the alley and the potential causes of the failure. As of this
date, Mr Hooser reports that his insurance does not cover the
repair of this damage; the City's insurance pool has denied the
claim for it to cover the repairs; and there has been not remedial
action taken. The Committee recommends the following:
1. The matter be turned over to the City attorney to appeal
the City's insurance denial and to take the appropriate
action for the responsible party to pay for the repairs.
2, The City retains a surveyor to survey the area and
prepare the base data for the eventual repairs.
3. The City be prepared to retain a qualified engineer to
design the appropriate repair.
The initial estimate for the cost of the repair is $50,000. The
Treasurer recommends using the Street Fund to pay these expenses.
An interfund transfer would be used to cover the shortages in the
Street Fund. The 1997 budget would provide for the repayment of the
interfund transfer and interest.
The Committee was brought up to date on the proposed funding of
City Hall. The Department of Agriculture loan application is being
prepared and will be submitted to the City Council on 8 July. As a
part of this loan, the staff has prepared a cash flow analysis
showing the use of City funds and loan funds. The federal loan
requires the City to establish interim funding, similar to a
construction loan. At the conclusion of the construction, the
Department of Agriculture will pay the interim loan balance. As
part of the loan application, the Treasurer has contacted various
banks to review data for an interim loan arrangement. A bank needs
to be selected to supply the letter of commitment to accompany the
federal loan application.
In addition to the federal loan, the staff is also doing
preliminary analysis of the cost and potential for conventional
financing, if something happens to the federal loan. Before the
City decides to commit to the federal loan, the Council will be
able to evaluate different funding packages.
cc Council
Treas
Attorney