The Pella City Council approved a resolution during last week’s regular meeting in regards to General Obligation Local Option Sales and Services Tax Bonds, Series 2014.
This resolution directs the advertisement for sale and approves electronic bidding procedures and the official statement for the $3,200,000 (dollar amount subject to change) General Obligation Local Option Sales and Services Tax Bonds, Series 2014. The proceeds from the Bonds will be used to fund the renovation of the Indoor Pool project which is scheduled to occur from April through November of this year. Overall, the estimated cost for the Indoor Pool renovation is $4.0 million, which includes the roof replacement in 2011.
In considering this potential bond issue, it is also important to note in March of 2011, the community passed a referendum extending the City’s local option sales and services tax for twelve years. The approval rate for the extension was nearly 85 percent, and the Indoor Pool renovation was listed as an eligible item for local option sales and services expenditures. The City, in conjunction with our Financial Advisor, Public Financial Management, Inc., has prepared a preliminary Official Statement outlining the details of the proposed sale of the Bonds. Subject to revisions from bond counsel, Ahlers & Cooney, and Public Financial Management, Inc., this Official Statement will be distributed in connection with the offering of the Bonds for sale. The bid date for the Bonds is scheduled for March 4, 2014. The terms of the sale include language to permit the use of electronic bidding. Per Iowa Code, Council needs to approve that the recommended procedure for bidding will provide reasonable security and maintain the integrity of the competitive bidding process and facilitate the delivery of bids by interested parties. It should be noted, while the bond issue limit is listed as not to exceed $4.0 million, the proposed General Obligation Local Option Sales and Services Tax Bonds will be for $3.2 million with a ten year term. It is important to note, the annual debt service payments for the bond are proposed to be provided by local option sales and services taxes. As a result, staff does not believe there will be any impact to the City’s property tax rate as a result of this bond issue. However, because the proposed bond is a general obligation bond, the City Council could issue a debt service levy for the debt service payments if they desire to in the future.
Council also approved a resolution approving a Lease Agreement for the Rental of 400 Square Feet of the Molengracht Plaza for Outdoor Dining.
Pella City Staff had received a request from Kellie Phillips, owner of Monarch’s Restaurant and Lounge located in the Molengracht Plaza, to renew a lease agreement for the use of 400 square feet outside of their establishment for an outdoor dining area. Monarch’s Restaurant and Lounge has had a lease agreement with the City for the same area since 2011.
Hiighlights of the lease agreement with Monarch’s are:
-Monarch’s will pay $.50 per square foot for 400 square feet for a total of $200.
The term of the lease is from April 25, 2014 to October 31, 2014.
-During the term of the lease, Monarch’s will provide comprehensive general-liability insurance coverage in the amount of $1,000,000 that names the City as additional insured.
-Hours of operation are limited to between 6 a.m. and 12 a.m. midnight.
-Monarch’s may play quiet music which does not disturb those utilizing adjoining publically owned space. The purpose of playing the music is to add to the atmosphere, and the same music that is played inside the restaurant is played in the outdoor space. This item was added in 2012, and no complaints have been reported.
The City will have authority to utilize the space for special events or other City functions during the contract period.
In other action
-Council approved a Special Event Permit request for the Many Hands for Haiti (MH4H) Color Blast 5K on April 12, from 7 a.m. until 1 p.m. The event is being held to help raise funds for and awareness of their ministry for Haiti. Several streets will be closed during the event including:
240 Place - between E. Oskaloosa and E. Vermeer
E. University St. - between 240th and E. 13th
E. 1st St. - between Franklin and Liberty
Main St. - between Franklin and Liberty
-Council approved a Special Event Permit request for Resurrected Tin’s 35th Annual Car Show on July 12, from 8 a.m. until 4 p.m. on Main St. between Washington and Liberty and Franklin St. between Broadway and E. 1st will be closed from 6 a.m. until 4 p.m. for the event.
-Council heard a presentation during the Policy and Planning meeting from the Historic Pella Trust in regards to creating a Historic Preservation District in Pella. No official action was taken on the item, however council was open to the idea of creating the district. Formal action on the idea could possibly be seen at future council meetings.