FAIRMONT — The Fairmont City Council met for a special meeting Wednesday night to approve the Five-year Capital Improvement Plan and Bond Issuance as well as approve Resolution 2021-17 adopting the plan and providing preliminary approval for the issuance of bonds. The plan and resolution were approved at the meeting.

City Staff worked with Northland Securities to draft this plan that outlined the need for the Public Works Facility project and the expected cost. By passing Resolution 2021-17, the city gives preliminary approval to the issuance of the bonds in the maximum principal amount of $8 million, provided that if a petition requesting a vote on the issuance of the bonds signed by voters equal to five percent of the votes cast in the last general municipal election, is filed with the city clerk by March 26, 2021, the city may issue the bonds only after obtaining approval of a majority of voters voting on the question at an election.

This capital improvement plan according to the Minnesota State legislature is designed for an explanation of a major project of city funds for the acquisition or betterment to public lands, buildings, or other improvements used as a city hall, town hall, library, public safety, or public works facility, which has a useful life of five years or more. A capital improvement plan (CIP) is a document designed to anticipate capital improvement expenditures and schedule them over a five-year period so that they may be purchased in the most efficient and cost-effective method possible.

The statute has established certain criteria that must be considered for each project to be undertaken. These criteria are: Condition of the City’s existing infrastructure and projected need for repair or replacement, demand for the improvement, cost of the improvement, availability of public resources, level of overlapping debt, cost/benefits of alternative uses of funds, operating costs of the proposed improvements, alternatives for providing services most efficiently through shared facilities with other municipalities or local governments.

The CIP was made with the intent to construct a new Public Works Facility. Total project costs are estimated to be $10.3 million.

In the analysis, the condition of the current Public Works Facility was that it is outdated and too small to meet the existing needs of the department, During a feasibility study in 2015, it was noted that the electrical and mechanical/HVAC system did not meet the needs of the facility.

The demand for the project is to enhance the city’s ability to provide essential services to the community in a safe, efficient and timely manner. The new facility will provide the necessary space to accommodate many of the city vehicles. It will serve as the primary maintenance facility for all city vehicles and it will support all 21 parks and street staff in their daily work tasks and allow them to effectively perform their duties.

The other criteria analysis provided details on the cost of the improvement, availability of public resources, level of overlapping debt, cost/benefits of alternative uses of funds, operating costs of the proposed improvements, alternatives for providing services most efficiently through shared facilities with other municipalities or local governments.

The City Council, using the process outlined in this plan, may review this plan annually, taking into account proposed expenditures, making priority decisions and seeking funding for those expenditures it deems necessary for the City. If deemed appropriate, the City Council will prepare an update to this plan.

The Fairmont City Council will meet next for a work session on March 8 at 4 p.m. Following that work session will be the city council meeting at 5:30 p.m.