Laserfiche WebLink
MINUTES OF THE <br />ORONO CITY COUNCIL MEETING <br />Monday, September 26, 2011 <br />7:00 o’clock p.m. <br />_____________________________________________________________________________________ <br />  <br />  Page 3 of 10   <br />   <br />(10. OLD CRYSTAL BAY ROAD UPDATED COST ESTIMATES AND FINANCIAL <br />INFORMATION, Continued) <br /> <br />Olson stated he would recommend that the funds be allocated to a specific project or projects. The <br />arbitrage rule governs the amount of interest that can be earned by the investment of bond proceeds. As <br />long as the funds are used within three years, the City is not subject to the arbitrage requirements. <br />However, if the funds are not used within three years, the City would be subject to additional reporting <br />requirements and they would be prohibited from earning interest at a rate greater than the interest rate <br />paid to the bond holders. <br /> <br />Olson indicated his preference would be that the City apply the money within the next couple of years <br />given the possible effect on the City's bond ratings for future bond sales. As part of the conference call <br />with Moody's, an outline of the projects that the City is planning to undertake is provided. Olson stated <br />he would rather not be in a situation where he has to explain why the City did not use the bonds. <br /> <br />McMillan asked if the City would need to identify a specific road for use of the funds. <br /> <br />Olson indicated they would. <br /> <br />Franchot commented the information is helpful and stated the City should determine what project it <br />would like the funds allocated to. Franchot noted the time table on the Orono Orchard Road project is <br />tight and that given the number of steps the City has to undergo in order to commence an MSA project, he <br />would recommend that the Council make a decision in the near future or have Staff make a <br />recommendation. <br /> <br />Printup moved, Rahn seconded, to approve mill and overlaying two inches of the existing roadway <br />of Old Crystal Bay Road. <br /> <br />Franchot commented in his view the Council does not have sufficient information to proceed forward on <br />the mill and overlay project and that he would like to learn more about the infrastructure in that area. <br />Franchot indicated he was not implying that the City Council should make all those decisions tonight. <br /> <br />McMillan asked the City Engineer to describe the process that would need to be undertaken for the mill <br />and overlay. <br /> <br />Amundsen stated one option would be to include some bid items in the City's annual materials bid. The <br />numbers received this year were not all that favorable but the City could perhaps inform the contractors <br />that there will be larger quantities next year, which could bring the cost down. Another option would be <br />that this could be a Public Works project. If the Council would like to explore a state aid funded project, <br />it would require a longer timeline given the state aid review and bidding process. <br /> <br />Bremer noted the City would not receive state aid funds for the mill and overlay. <br /> <br />Amundsen stated they could apply for the state aid funds but in his opinion it is unlikely they would be <br />approved and it would likely extend the process. The third option would be to bid it out as a stand-alone <br />project. <br /> <br /> <br />Item #02 - CC Agenda - 10/10/2011 <br />Approval of Council Minutes 09/26/2011 [Page 3 of 10]