VILLAGE OF LA FARGE
Special Board Meeting Monday, March 28, 2022
*Village President Cheryl Purvis called the special meeting of the La Farge Village Board to order at 6:31 p.m. at the Emergency Services Building.
Roll Call - Present at the meeting:
All Board Members: Cheryl Purvis, Terry Jensen, Barbara Melvin, Aaron Nemec, Frank Quinn, Karen Leis, and Aaron Appleman.
Also present: News reporter Lonnie Muller, Josh Low with Ehlers (zoom), Gary Koch with CDA (zoom), Public Works Manger Wayne Haugrud, Utility Clerk Greg Lawton, and Clerk Kimberly Walker.
*Verification of posting at the Bank, Post Office, and Village Office on March 24, 2022, was given.
*Cheryl gave a recap: To obtain the SDWLP loan and grant, the water and sewer utility part from the 2013 revenue bond debt had to be released. This part of the bond was paid off, with just the electric portion remaining. By doing this, we can take out the SDWLP loan and get $400,000 in grant funds. Also, with the low interest rates, we are also including to refinance a 2014 general obligation debt issue to roll over with this. The cost for Ehlers & Quarles & Brady (bond counsel) to do this paperwork is around $10,000, but even with these costs, we are looking at a savings of $31,796 (interest savings of $41,796, less the $10,000).
*Josh Low, Ehlers, said we had 4 responses on the RFP’s sent to area banks. Farmers State Bank of Hillsboro, was the low bidder at 1.880%, going 6 years out (year 2027). This is a great rate. The board reviewed the bid tabulation sheet for all parties. Looking at a closing date of 4/18/2022. This will take away the utility water and sewer debt and open it up for the SDWLP.
*Melvin moved, Quinn seconded to accept the bid from Farmers State Bank for $847,000 at 1.880% interest for 6 years. (Carried).
*Jensen moved, Appleman seconded to approve the resolution authorizing the redemption of the Water, Sewerage and Electric System Revenue Refunding Bonds, Series 2013A, Dated July 9, 2013, and the General Obligation Refunding Bonds, Series 2014A, dated May 29, 2014. (Carried).
*Gary Koch, CDA, was present zoom, to discuss the SDWLP process. They’ve been working on finalizing the budget of eligible costs for the safe drinking water loan, which is a water issue. The Main Street project was budgeted at 1.9 million, and came in at $1.564 million, saving us around $388,000+. Because the Main Street project had multiple facets, of sewer, water, storm sewer, streets, they’ve been working on what is eligible and what’s not. We are to receive a 60% grant and 40% loan. Looking at $190,000 for the loan portion right now. When we close on this loan, the funds we receive will reimburse the TIF escrow. We are eligible to use these funds for other projects we have on our list. The closing is set for May 25th. Gary will be at the May meeting to have some resolutions and a fiscal agreement with the DNR for the board to pass.
*Back in July 2021, we signed an original engineering agreement with Forster Engineering to do the substation relocation work for $200,000. Forster doesn’t do certain parts of the electrical engineering services, so looking at an amended agreement to sub parts out to Delta 3 and others. All these costs are in the grant and covered, just using Forster as the Main contractor. Cost on the amended agreement is now $256,000. Quinn moved, Jensen seconded to approve the amended engineering services agreement with Forster based on the Village’s procurement policy that the Board waives the bid requirement. (Carried).
*Quinn moved, Nemec seconded to adjourn. (Carried). Adjourned at 6:52 p.m.
Kimberly Walker, Village Clerk/Treasurer