TOWER — The city council here gave the greenlight to issue a $100,000 general obligation bond to cover the bulk of the purchase of a new city dump truck. The approval was given through …
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TOWER — The city council here gave the greenlight to issue a $100,000 general obligation bond to cover the bulk of the purchase of a new city dump truck. The approval was given through resolution, with Frandsen Bank and Trust as the issuer of the bond.
The city is looking at either a new or slightly used vehicle at a cost of approximately $133,000. The new or newer vehicle would replace the city’s 1996 vintage dumper, an essentially one-wheel-drive vehicle with a manual transmission.
Tower Public Works Director Ben Velcheff said the dump box on the old truck has already been replaced once due to excessive rust and is due to be replaced again soon if it was to remain in regular service.
The city is currently looking at the purchase of a 2023 International CV515 for $124,000.
The new truck will come with automatic transmission, a stainless-steel bed and sander, a plow, and fold-down sides that allow it to be used as a flat bed when the dump bed is not needed.
With the issuance of a $100,000 bond, the city will need to cover the remaining cost of the vehicle, which would likely come from the HooDoo Point Campground account, or from the city’s various repair and maintenance funds. Gundersen funds could also cover a portion of the expense.
In other business, the council discussed but took no formal action on the possibility of redirecting some state bonding proceeds earmarked for city of Tower water infrastructure to install water lines along the harbor and across Hwy. 169 to the Marjo RE development. The city is trying to find funding solutions after bids for the planned water and sewer extension to the harbor and Marjo sites came in about $600,000 higher than engineers’ estimates.
The city is also seeking to fund soil mitigation work that is needed for the development of seven twin homes and a mixed apartment/commercial building at the harbor site. Those bids came in anywhere from $800,000-$1.15 million.
The city has previously received $1.05 million for the utility extension from the Department of Iron Range Resources and Rehabilitation but will need at least $2.1 million, or an additional $1.05 million to get the project started in the spring. The city made some headway toward that this week when they received word that they had received a $180,000 infrastructure grant from Minnesota Housing, a grant that TEDA had applied for this past summer. The city is also seeking additional funding from the IRRR to fill the gap.
The council expressed some willingness to reallocate some of the city’s own funding for the project, but council members indicated they could wait for more details, and possibly new bids, before determining how much funding might ultimately be required.
The plan currently under consideration would complete soil mitigation for the three easternmost twin homes as well as the apartment/commercial building in the spring, with soil work for the remaining four twin homes slated for late summer.
In other action, the council:
Approved applying for funding through the state’s Local Road Improvement Program, or LRIP, for repaving of Marina Drive. With businesses along that route slated for possible utility extensions, there was some council discussion of the timing of the road work to ensure that the road would not need to be torn up again should utilities be extended there in the near future.
Had more discussion but took no final action on the search for a new clerk-treasurer. Applications for the position close as of Nov. 7. Council member Joe Morin reported that, as of Oct. 30, the city had received six applications and that city officials had had two informal interviews with potential candidates.
Gave final approval for the plat for Village on Vermilion, the name for the Marjo RE project.
Gave the second reading of a new franchise agreement with Minnesota Power, contingent on the utility’s acceptance of an additional clause requiring the company to list the city as an additional insured on their liability coverage.
Gave the second reading to changes in the enforcement provisions of the city’s blight ordinance.