Posted: 5/2/07

County approves road bonds, wraps in bond for jail work

By MaryHelen Swanson

Jails and roads in Chisago County got a kick start last week with the commissioners approving bond issues with the assistance of financial consultant Carolyn Drude of Ehlers and Assoc.

This summer's road project is reconstruction of County Road 7 going west out of Rush City. The road was improved from County Road 8 west to the county line two years ago.

Joe Triplett, assistant county engineer was before the board with options for funding the project.

He noted that bids were open and low bidder was Midwest Contracting out of Marshall, Minn., for $3,879,000.

Triplett told the commissioners there is $2,883,000 in the county's state aid construction account, but the option he recommended to pay for CR 7 was to bond for the entire amount and leave the state aid funds in the account to pay for County Road 14 improvements scheduled for 2008.

Believing this to be the best of three options, also, the commissioners agreed to bond for the entire amount.

County Administrator John Moosey favored this action and recommended it, saying it will not affect the 2008 or future tax levies.

County Treasurer Lee Olson, agreed there would be annual savings on road maintenance because the roads would be new.

The commissioners' vote was unanimous.

Commissioner Lynn Schultz was concerned that the state aid funding might not be available, but her concerns were allayed by Drude who said state aid funding is "pretty much protected."

"It's been around a long time," noted board chairman Mike Robinson.

Drude reminded the board that state aid bonds must be paid with state aid funds. She said the bonds do not involve any increase in property taxes.

The commissioners then went on to approve a bond sale for May 16.

And then they approved the awarding of the CR7 project to Midwest. The project encompasses 3.7 miles. There were 12 bidders on the project.

Following these actions, Administrator Moosey requested that the board expand the sale of state aid bonds to include Temporary Jail Bonds to save on bonding costs.

The amount of the bond issue is $5.5 million and this money will be used for land acquisition, utility extensions, annexation costs, and engineering and architectural plans.

Currently, administration is looking at three property options, noted Moosey.

Commissioner Ben Montzka was concerned about moving forward with the jail plans.

Moosey said first the county has to buy the land, and that it is good for the county to have money to move forward step by step. Drude noted that interest rates are under 4 percent right now, and that's good, she said.

Robinson asked what the savings would be in six months, would the interest rate be the same, he asked?

Drude said if the rate stayed the same, the county might save $20,000.

Once again, Treasurer Olson reminded the board he doesn't favor borrowing, but said if the county is going to do it, now is the right time.

The motion to extend the bonds to include $5.5 million passed unanimously.

In other business,

• The board accepted the donation of $32,000 to help purchase a Veteran's Services van, with the most recent one being involved in a head-on crash recently. It was noted that the donor, who wishes to remain anonymous, cashed in a CD and when that wasn't enough, went to a bank for the rest of the funds. Administrator Moosey will send a letter of thanks to the donor.

• Learned about the county's Septic Pilot Program and agreed to hold a public hearing on the county's septic loan program.

• Agreed to increase the hours for the Public Health Preparedness Coordinator from 24 to 32 hours.

• Learned from HHS director Mary Sheehan that she has received a full scholarship from the University of Minnesota to take Public Health Preparedness Response & Recovery courses and that she has put on hold for three months the hiring of a public health director and that she will be the acting director until a hire.

• The board awarded the landscaping bid for the new Health and Human Services building in North Branch to IBES Landscaping, Inc., of Minneapolis in the amount of $15,300.

• The board discussed the issue of e-mail and the county's policy with MICS director Jon Eckel who noted that some employees have been forwarding bad stuff. He said passing it along is wrong. He also noted that employees are trained in the appropriate use of e-mail. The county does have a policy on internet use and the board will continue discussion today, May 2.



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