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Final financing approved for downtown work

The Osakis City Council voted to bond for $360,000 in General Obligation Utility Revenue Bonds for the 2017 improvement project, at its Tuesday, Sept. 5 regular meeting.

Jason Murray of David Drown Associates, the city's bonding agent, told the council the $360,000 is the final financing for this project. This is a 3.2 percent interest loan for a 15-year term, which was placed at First National Bank of Osakis, and closes on Sept. 19.

Murray said the city expects to receive a Public Facilities Authority grant about Jan. 1, 2018.

A second question, to sell a temporary bond in the amount of $993,000, to run until the anticipated Public Facilities Authority funding is received, was turned down by the City Council.

City Administrator Angela Jacobson informed the council that the city can borrow money from the city's reserve, thereby saving an additional $22,343 in interest costs.

"I would be comfortable trying without the temporary bond, if the council wants to try to carry it until January," Jacobson said. If the council reconsiders the temporary bond, it could then be sold.

2017 project

Engineer Sheila Krohse updated the City Council on the 2017 downtown project. Paving is in progress, and there is one unfinished section on West Main Street, where there is a four-foot property dispute on the line between Galeon and an adjacent property owner. The retaining wall cannot be finished there until the dispute in settled.

"It is in the lawyer's hands," Krohse told the council.

Payment Number 4 for the project was approved, for Riley Brothers for $337,792.60, and for Bolton and Menk Engineers for $38,989.50.

2016 project

The 2016 Downtown Project is coming to a close, with a few final items to be taken care of, according to Krohse. The light manufacturer has put the caps on the tops of the light poles, and concrete issues have been taken care of.

The brick facade on a building on East Main Street remains to be repaired, along with placement of the historic-looking clock on the bump-out at Central Avenue and Main Street. The clock served as a popular landmark in Osakis but was damaged in a storm a couple of years ago and was taken down for repairs. Ralph Laven spearheaded the clock project.

A concrete crosswalk is yet to be installed in front of the grocery store.

The council also received a request to paint the curb adjacent to the grocery store yellow so that people can see where to drive.

DNR landing

The parking lot at the downtown Department of Natural Resources boat landing will be surfaced in the next week. Krohse said the finished lot will be no bigger than it currently is, but it will have a different layout, and there will be a new washout area installed, riprap along the bank, and a sidewalk, making the flow of the whole area much better.

Wastewater project

The City Council approved payment to Hall and Associates, the city's representative in the dispute with the MPCA licensing process, for $880.74, and for Flaherty and Hood in the amount of $471.25 for sampling and work on the city's nutrient trading proposal in the project.