CITY OF ANDERSON

SPECIAL CITY COUNCIL MEETING

MAY 20, 2008

ANDERSON CITY HALL

Present:                                                                                 Staff:

Keith Fetzer, Mayor                                                            Darla Coghill, City Clerk                                                   

Tom Howard                                                                      

Samantha Thompson

Clint Berry

Andy Archer

Excused:                                                              

Eric Warner                                                                           Guests: 

Jacob Noll                                                                             Dave Miller                                          

                                                                                                Stephanie Olson

ROLL CALL                                       The Regular Meeting of the Anderson City Council was called to order by Mayor Keith Fetzer at 7:07 PM.

AMEND AGENDA                             M/S S. Thompson/T. Howard moved to amend the agenda adding Resolution 08-18.  All in favor.

AGENDA APPROVAL                     M/S C. Berry/S. Thompson moved to approve the agenda. All in favor.

Approval/Rejection of

Court House Committee’s

 Recommendation to

proceed/deny                                       Mayor Fetzer started by stating that the City of Anderson was given an invitation to bid on a Courthouse project to combine the Healy court and the Nenana courts. There was only a 5 week window for the process of receiving estimates and putting in the bid to the State of Alaska.

Mayor Fetzer stated that there were 3 estimates given to the city for the courthouse project. General Steel came in at $120-$125 a square foot not including dirt work, well, or septic. Alaska Silver Fox Construction came in at $130 a square foot not including dirt work, well, or septic. Karella Construction came in at $266 a square foot not including dirt work, well, or septic. There was discussion about the advantages and disadvantages of each construction company.

Mayor Fetzer stated that we would acquire a 15 year loan at approximately 6.5% interest on $800,000.00 with payments of about $6097.00 per month. If Anderson was chosen for the Courthouse there would be an automatic Courthouse lease for 15 years with $75,000 to $80,000 a year in rent from the State of Alaska. The loan and estimates shows the building to be 6,000 square feet so that the city could attain 3 additional tenants with more income each month for the city. Each tenant would be required to pay for their own heating fuel including all utilities. The state only requires 3,000 feet for the Courthouse. There was more discussion regarding other possible tenants.

The Council discussed the advantages and disadvantages along with any risks that the city would be taking. In submitting the bid there would be a $4,000.00 refundable deposit. If the bid was rejected by the state, the city would receive the check back. If the bid was accepted, and we did not accept it and proceed, then the state would keep the bid. Dave Miller stated that “for $4,000.00 it was worth the gamble”. If the bid was accepted then the people of Anderson would have a chance to vote on whether or not to proceed with the project. There was more discussion regarding this matter. 

Resolution 08-18

To Proceed with the

Bidding Process for

The Courthouse Project                   M/S T. Howard/C. Berry to proceed with the bidding process for the

                                                                Courthouse Project.

                                                                                                                Roll Call Vote

                                                            Samantha Thompson             Abstained

                                                            Keith Fetzer                            Yes

                                                            Clint Berry                             Yes

                                                            Tom Howard                          Yes

                                                            Andy Archer                           No

                                                The motion did not pass.

Adjournment                          M/S T Howard/A. Archer move to adjourn at 7:55pm. Motion passed unanimously.