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HomeMy WebLinkAboutFebruary 3, 2003 Work SessionCITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: www. ci. columbia-heigltts, mn. us ADMINISTRATION NOTICE OF CITY COUNCIL MEETING to be hem in the CITY OF COLUMBIA HEIGHTS as follows: Mayor Julienne Wyckoff Councilmembers Robert A. Williams Bruce Nawroda' Tammera Ericson Bruce Kelzenberg CRv Manaoer Walt Fehst Meeting of: Date of Meeting: Time of Meeting: Location of Meeting: Purpose of Meeting: COLUMBIA HEIGHTS CITY COUNCIL FEBRUARY 3, 2003 7:00 P.M. CONFERENCE ROOM 1 WORK SESSION .4 GENDA 1. Capital Improvement Bond -representatives of Ehlers will be present 2. Accepting credit card payments for utility bill and other payments. 3. Meet with Senator Chaudhary and Representative Goodwin ~ 8:30 p.m. 4. Fire Department: matching Safety Grant Project. 5. Sister City Committee request for funds for visiting dignitary. 6. Board of Review Dates The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at 706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) THE CiTY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY ~MPLOYER CITY COUNCIL LETTER WORK SESSION OF: FEBRUARY 3, 2003 AGENDA SECTION: ORIGINATING DEPT: CITY MANAGER NO: FINANCE APPROVAL NO: DATE: JANUARY 30, 2003 Shelly Eldridge and Mark Ruff from Ehlers &/Associates will be present at the City Council work session of February 3 to discuss bonding for city projects and to provide the City Council with information regarding refunding the 1990 CAB. Both of these items were reviewed with the City Council last fall when the council designated Ehlers & Associates as our financial advisor for these issues. The information provided at the meeting will cover the capital improvement bonds that we need to issue to repay the internal funding for the Central Avenue project along with the funding for districts 6A and 6B. Attached to this council letter is correspondence that was previously received in relationship to the ramifications of doing an advanced refunding of the capital appreciation bonds of 1990 versus waiting on the refunding of those bonds until closer to the actual call date. Staff will be available at the work session to aid Ehlers in this presentation. WE:sms 0301302COUNCIL Attachment COUNCIL ACTION: E H L E R S & ASSOCIATES INC 0 To: From: Subject: Date: Bill Elrite, Finance Director City of Columbia Heights Mark Ruff, Financial Advisor Shelly Eldridge, Financial Advisor Refunding Analysis of $2,399,720.75 GO CAB, Series 1990 October 31, 2002 Dear Bill: As we discussed, we have reviewed the potential refunding the 1990 CAB to determine if there was a potential for a "reasonable" level of savings. Attached is are two options which utilize current rates for an issue that was sold on October 29, 2002 to be sure that the analysis included the most current information available. Option 1 - Proposed Crossover Refunding (Attachment 1) A crossover refunding issue finances the debt service payment of the new refunding issue until the call date and then pays offthe original issue with the remain proceeds at the call date. Essentially, for the first 2 'A years there will be two issues outstanding. Until the time the original issue is paid in September, 2005, the City will pay on the old debt service. The problem at this time, with this type of issue, is that the interest rates on investments is substantially lower than that of the interest being paid on the new refunding bond. For this type of issue, State and Local Government Series, (SLGS), are the investments that are usually made for the investment period. Page 5 of Attachment 1 indicates, that at the present interest rates of SLGS, that there is a $72,430 negative investment (arbitrage) amount over the life of the issue. This of course reduces the saving by that amount. The savings for this type of issue is estimated at just under $117,000, future value. Option 2 - Proposed Current Refunding (Attachment 2) To demonstrate why it may be better to wait, we also ran an anlysis which assumes that the refunding were to be done in 2005 for calling of 2006 maturities on September 1, 2005, the first possible time to call the issue. As you can see on page 2 of the each analysis under True Interest Costs, interest rates in 2005 could be 1.66% higher than (5.13% versus 3.47%) and the same amount of money would be saved. Attachment 3 is a historical chart which demonstrates the variations in bond rates over the past several years. While this is a chart for longer term rates, it shows that tax-exempt rates have not been higher than 1.5% than today's rates since 1998. As we discussed in the past, it appears that it may not be the right time to refund this issue. First, a refunding means that the call date on the bonds must be extended. Second, capital appreciation bonds are sometimes more difficult to realize a substantial savings because the majority of the LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive 651.697.8504 fax 651.697.8555 Rosevilie, MN 55113-1105 shelly@ehlers-inc.com Page 2 October 31, 2002 interest is paid at the beginning. Couple that with the current negative arbitrage situation, and it becomes a decision as to when the investment rates will get better in the future. As indicated, we will continue to monitor the markets on this issue and let you know if the conditions are such that the savings will justify the refunding. Clearly there may be other reasons besides interest savings to refinance these bonds at this time. For example, if the City wanted to extend the term of the bonds or change the maturity schedules to match income expectations, a refunding at this time, given the potential savings, may be adviseable. Given the potential for special legislation in the TIF area in 2003, it may be better to wait until after the session is over to determine the need for restructuring. Please call when you have reviewed the information. Attachment 1 City of Columbia Heights, MN Proposed Crossover Refunding of $2,399,720.75 G. O. Capital Appreciation Bonds, Series 1990 TABLE OF CONTENTS REPORT PAGE SOURCES & USES ............................................................................................. 1 DEBT SERVICE SCHEDULE .............................................................................. 2 PRIOR ORIGINAL DEBT SERVICE ....................................................................3 DEBT SERVICE COMPARISON ......................................................................... 4 CROSSOVER ESCROW FUND CASHFLOW ..................................................... 5 Ehlers & Associates, Inc. Leaders in Public Finance since 1955 ~r90 $2,399K G.O. CABs- SINGLE PURPOSE 10/29/2002 1:56 PM City of Columbia Heights, MN Proposed Crossover Refunding of $2, 399, 720. 75 G. O. Capita/Appreciation Bonds, Series 1990 SOURCES & USES Dated 12/01/2002 Delivered 12/01/2002 SOURCES OF FUNDS ParAmount of Bonds ......................................................................... $2,850,000.00 TOTAL SOURCES ............................................................................ $2,850,000.00 USES OF FUNDS Total Underwriter'$ Discount (0.750%) .............................................. 21,375.00 Costs of Issuance .............................................................................. 20,000.00 Deposit to Crossover Escrow Fund .................................................... 2,804,982.27 Rounding Amount .............................................................................. 3,642.73 TOTAL USES .................................................................................... $2,850,000.00 Ehlers & Associates, Inc. Leaders in Public Finance since 1955 ~r 90 $2,399K G.O. CABs. SINGLE PURPOSE 10/29/2002 1:56 PM Page 1 City of Columbia Heights, MN Proposed Crossover Refunding of $2,399,720.75 G. O. Capital Appreciation Bonds, Serfes 1990 DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I FISCAL TOTAL 12/01/2002 9/01/2003 3/01/2004 9101/2004 3/01/2005 9/01/2005 3/01/2006 9101/2006 3/01/2007 9/01/2007 3/01/2008 9101/2008 3/01/2009 9/01/2009 800,000.00 3.000% 820,000.00 3.300% 850,000.00 3.400% 380,000.00 3.500% 69,945.00 69,945.00 69,945.00 46,630.00 46,630.00 46,630.00 46,630.00 93,260.00 46,630.00 46,630.00 46,630.00 46,630.00 93,260.00 46,630.00 46,630.00 46,630.00 846,630.00 893,260.00 34,630.00 34,630.00 34,630.00 854,630.00 889,260.00 21,100.00 21,100.00 21,100.00 871,100.00 892,200.00 6,650.00 6,650.00 - 6,650.00 386,650.00 393,300.00 Total 2,850,000.00 - 474,485.00 3,324,485.00 YIELD STATISTICS Bond Year Dollars ................................................................................................................. Average Life .......................................................................................................................... Average Coupon ................................................................................................................... Net Interest Cost (NIC) .......................................................................................................... True Interest Cost (TIC) ........................................................................................................ Bond Yield for Arbitrage Purposes ........................................................................................ All Inclusive Cost (AIC) ......................................................................................................... IRS FORM 8038 Net Interest Cost ................................................................................................................... Weighted Average Maturity ................................................................................................... $14,347.50 5.034 Years 3.3070918% 3.4560725% 3.4662415% 3.3023118% 3.6209692% 3.3070918% 5.034 Years Ehlers & A,.~sociates, Inc. File = COLUMBIA HEIGHTS. SF.02 xover of Ser 90 $2,399K G.O. CABs- SINGLE PURPOSE Leaders in Public Finance since 1955 10/29/2002 1:56 PM Page 2 City of Columbia Heights, MN $2,399,720.75 G. 0. Capital Appreciation Bonds, Sedes 1990 PRIOR ORIGINAL DEBT SERVICE Date Principal Coupon Interest Total P+I FISCAL TOTAL 3/01/2003 9101/2006 301,281.60 7.100% 618,718.40 920,000.00 920,000.00 9t01/2007 280,977.20 7.100% 639,022.80 920,000.00 920,000.00 9/01/2008 259,780.40 7.150% 660,219.60 920,000.00 920,000.00 9101/2009 111,864.25 7.150% 313,135.75 425,000.00 425,000.00 Total 953,903.45 2,231,096.55 3,185,000.00 YIELD STATISTICS Average Life .......................................................................................................................... 4.941 Years Weighted Average Maturity (Par Basis) ................................................................................ 4.941 Years Average Coupon ................................................................................................................... 47.3365025% REFUNDING BOND INFORMATION Refunding Dated Date ........................................................................................................... Refunding Delivery Date ....................................................................................................... 12/01/2002 12/01/2002 Ehlers & Associates, Inc. Leaders in Public Finance since 1955 File = COLUMBIA HEIGHTS. SF-Ser 90 $2,399K G.O. CABs-SINGLE PURPOSE 10/29/2002 1:56 PM Page 3 City of Columbia Heights, MN Proposed Crossover Refunding of $2,399,720.75 G. 0. Capital Appreciation Bonds, Sedes 1990 DEBT SERVICE COMPARISON Date Total P+I PCF Existing DIS Net New D/S Old Net DIS Savings FISCAL TOTAL 12/01/2002 . . 9101/2003 69,945.00 (69,945.00) - - . 3/01/2004 46,630.00 (46,630.00) - - . 9/01/2004 46,630.00 (46,630.00) - - . 3/01/2005 46,630.00 (46,630.00) - - . 9/01/2005 46,630.00 (2,770,863.08) 2,724,233.08 - - 3/01/2006 46,630.00 - 46,630.00 (46,630.00) 9101/2006 846,630.00 - 846,630.00 920,000.00 73,370.00 3/01/2007 34,630.00 34,630.00 (34,630.00) 9/01/2007 854,630.00 854,630.00 920,000.00 65,370.00 3101/2008 21,100.00 21,100.00 (21,100.00) 9/01/2008 871,100.00 871,100.00 920,000.00 48,900.00 3/01/2009 6,650.00 6,650.00 (6,650.00) 9/01/2009 386,650.00 386,650.00 425,000.00 38,350.00 26,740.00 30,740.00 27,800.00 31,700.00 Total 3,324,485.00 (2,980,698.08) 2,724,233.08 3,068,020.00 3,185,000.00 116,980.00 PRESENT VALUE ANALYSIS SUMMARY (NET TO NET) Gross PV Debt Service Savings ......................................................................... 95,121.00 Net PV Cashflow Savings ~ 3.621%(AIC) ........................................................ 95,121.00 Contingency or Rounding Amount ...................................................................... 3,642.73 NET PRESENT VALUE BENEFIT ...................................................................... $98,763.73 NET PV BENEFIT I $2,247,458 REFUNDED PRINCIPAL ................................ 4.394% NET PV BENEFIT I $2,850,000 REFUNDING PRINCIPAL ............................... 3.465% REFUNDING BOND INFORMATION Refunding Dated Date ........................................................................................ 12/01/2002 Refunding Delivery Date ..................................................................................... 12101/2002 Ehlers & Associates, Inc. File = COLUMBIA HEIGHTS. SF-02 xover of Ser gO $2,399K G.O. CABs. SINGLE PURPOSE Leaders in Public Finance since 1955 10/29/2002 1:56 PM Page 4 City of Columbia Heights, MN Proposed Crossover Refunding of $2,399,720.75 G. 0. Capital Appreciation Bonds, Series 1990 CROSSOVER ESCROW FUND CASHFLOW Date Pdncipal Rate Interest Zero Coupon Reinvestment Receipts Disbursements Cash Balance 12/01/2002 - 0.27 0.27 3/01/2003 - 15,944.75 (15,945.00) (0.25) 0.02 9/01/2003 21,669.00 1.630% 32,331.81 15,945.00 69,945.81 69,945.00 0.83 3/01/2004 14,563.00 1.760% 32,066.67 46,629.67 46,630.00 0.50 9101/2004 14,691.00 1.940% 31,938.52 46,629.52 46,630.00 0.02 3/01/2005 14,834.00 2.130% 31,796.02 46,630.02 46,630.00 0.04 9/01/2005 2,739,225.00 2.310% 31,638.04 2,770,863.04 2,770,863.08 Total 2,804,982.00 175,715.81 (15,945.00) 15,945.00 2,980,698.08 2,980,698.08 INVESTMENT PARAMETERS Investment Model [PV, GIC, or Securities] ................................................................... Default investment yield target ..................................................................................... Securities Bond Yield Cash Deposit ................................................................................................................ 0.27 Cost of Investments Purchased with Bond Proceeds ................................................... 2,804,982.00 Total Cost of Investments ............................................................................................. $2,804,982.27 Target Cost of Investments at bond yield ..................................................................... $2,732,552.60 Actual positive or (negative) arbitrage ........................................................................... (72,429.67) Yield to Receipt ............................................................................................................ 2.3020889% Yield for Arbitrage Purposes ......................................................................................... 3.3023118% State and Local Government Series (SLGS) rates for .................................................. 10/25/2002 Ehlers & Associates, Inc. Leaders in Public Finance since 1955 File = COLUMBIA HEIGHTS. SF.02 xover of Sar 90 $2,399K G.O. CABs- SINGLE PURPOSE 10/29/2002 1:56 PM Page 5 Attachment 2 City of Columbia Heights, MN Proposed Current Refunding of $2,399,720.75 G. 0. Capital Appreciation Bonds, Series I990 TABLE OF CONTENTS REPORT PAGE SOURCES& USES ............................................................................................. 1 DEBT SERVICE SCHEDULE .............................................................................. 2 PRIOR ORIGINALDEBTSERVICE ..................................................................... 3 DEBTSERVICECOMPARISON ......................................................................... 4 CURRENT REFUNDING ESCROW .................................................................... 5 Ehlers & Assodates, Inc. ~r 90 $2,399K G.O. CABs- SINGLE PURPOSE Leaders in Public Finance since 1955 10/29/2002 1:58 PM City of Columbia Heights, MN Proposed Current Refunding of $2,399,720.75 G. 0. Capital Appreciation Bonds, Series 1990 SOURCES & USES Dated 09/01/2005 Delivered 09/01/2005 SOURCES OF FUNDS Par Amount of Bonds ......................................................................... $2,760,000.00 TOTAL SOURCES ............................................................................ $2,760,000.00 USES OF FUNDS Total Underwriter's Discount (0.500%) .............................................. 13,800.00 Costs of Issuance .............................................................................. 20,000.00 Deposit to Current Refunding Fund .................................................... 2,724,233.08 Rounding Amount .............................................................................. 1,966.92 TOTAL USES .................................................................................... $2,760,000.00 Ehlers & Associates, Inc. Leaders in Public Finance since 1955 ~r 90 $2,399K G.O. CABs- SINGLE PURPOSE 10/'29/2002 1:58 PM Page 1 City of Columbia Heights, MN Proposed Current Refunding of $2,399,720.75 G.O. Capital Appreciation Bonds, Series 1990 DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I FISCAL TOTAL 9/01/2005 3/01/2006 66,580.00 66,580.00 9101/2006 760,000.00 4.550% 66,580.00 826,580.00 893,160.00 3/01/2007 49,290.00 49,290.00 9/01/2007 795,000.00 4.850% 49,290.00 844,290.00 893,580.00 3/01/2008 30,011.25 30,011.25 - 9/01/2008 830,000.00 4.950% 30,011.25 860,011.25 890,022.50 3/01/2009 9,468.75 9,468.75 - 9/01/2009 375,000.00 5.050% 9,468.75 384,468.75 393,937.50 Total 2,760,000.00 310,700.00 3,070,700.00 YIELD STATISTICS Bond Year Dollars ................................................................................................................. Average Life .......................................................................................................................... Average Coupon ................................................................................................................... Net Interest Cost (NIC) ......................................................................................................... True Interest Cost (TIC) ........................................................................................................ Bond Yield for Ad)itrege Purposes ........................................................................................ All Inclusive Cost (AIC) ......................................................................................................... IRS FORM 8038 Net Interest Cost ................................................................................................................... Weighted Average Maturity ................................................................................................... $6,340.00 2.297 Years 4.9006309% 5.1182965% 5.1333843% 4.8974760% 5.4783497% 4.9006309% 2.297 Years Ehlers & Associates, Inc. File = COLUMBIA HEIGHTS. SF-02 cur of Ser gO $2,3ggK G.O. CABs- SINGLE PURPOSE Leaders in Public Finance since 1955 10/29/2002 1:58 PM Page 2 City of Columbia Heights, MN $2,399,720.75 G. 0. Capital Appreciation Bonds, Series 1990 Date PRIOR ORIGINAL DEBT SERVICE Principal Coupon Interest Total P+I FISCAL TOTAL 9/01/1990 .... 9101/2006 301,281.60 7.100% 618,718.40 920;000.00 920,000.00 9/01/2007 280,977.20 7.100% 639,022.80 920,000.00 920,000.00 9/01/2008 259,780.40 7.150% 660,219.60 920,000.00 920,000.00 9/01/2009 111,864.25 7.150% 313,135.75 425,000.00 425,000.00 Total 953,903.45 2,231,096.55 3,185,000.00 YIELD STATISTICS Average Life .......................................................................................................................... 2.191 Years Weighted Average Maturity (Par Basis) ................................................................................ 2.191 Years Average Coupon ................................................................................................................... 106.7492843% REFUNDING BOND INFORMATION Refunding Dated Date ........................................................................................................... Refunding Delivery Date ....................................................................................................... 9/01/2005 9101/2005 Eh/ers & Associates, Inc. Leaders in Public Finance since 1955 File = COLUMBIA HEIGHTS. SF-Ser go $2,399K G.O. CABs-SINGLE PURPOSE 10/29/2002 1:58 PM Page 3 City of Columbia Heights, MN Proposed Current Refunding of $2,399,720.75 G. 0. Capital Appreciation Bonds, Series 1990 DEBT SERVICE COMPARISON Date Total P+I Net New DIS Old Net DIS Savings FISCAL TOTAL 9101/2005 - - 3/01/2006 66,580.00 66,580.00 (66,580.00) - 9101/2006 826,580.00 826,580.00 920,000.00 93,420.00 26,840.00 3/01/2007 49,290.00 49,290.00 (49,290.00) - 9101/2007 844,290.00 844,290.00 920,000.00 75,710.00 26,420.00 3/01/2008 30,011.25 30,011.25 (30,011.25) - 9101/2008 860,011.25 860,011.25 920,000.00 59,988.75 29,977.50 3/01/2009 9,468.75 9,468.75 (9,468.75) - 9101/2009 384,468.75 384,468.75 425,000.00 40,531.25 31,062.50 Total 3,070,700.00 3,070,700.00 3,185,000.00 114,300.00 PRESENT VALUE ANALYSIS SUMMARY (NET TO NET) Gross PV Debt Service Savings ............................................................................................ Net PV Cashflow Savings ¢~ 5.478%(AIC) ........................................................................... Contingency or Rounding Amount ......................................................................................... NET PRESENT VALUE BENEFIT ........................................................................................ NET PV BENEFIT I $2,724,233 REFUNDED PRINCIPAL ................................................... NET PV BENEFIT I $2,760,000 REFUNDING PRINCIPAL .................................................. REFUNDING BOND INFORMATION Refunding Dated Date ........................................................................................................... Refunding Delivery Data ....................................................................................................... 95,807.47 95,807.47 1,966.92 $97,774.39 3.589% 3.543% 9101/2005 9101/2005 Ehlers & Associates, Inc. File = COLUMBIA HEIGHTS. SF-02 cur of Ser 90 $2,399K G.O. CABs- SINGLE PURPOSE Leaders in Public Finance since 1955 10/29/2002 1:58 PM Page 4 City of Columbia Heights, MN Proposed Current Refunding of $2,399,720.75 G.O. Capital Appreciation Bonds, Series 1990 CURRENT REFUNDING ESCROW Date Rate Receipts Disbursements Cash Balance 9101/2005 - 2,724,233.08 2,724,233.08 - Total - 2,724,233.08 2,724,233.08 INVESTMENT PARAMETERS Investment Model [PV, GIC, or Securities] ............................................................................. Securities Default investment yield target ............................................................................................... User Defined Cash Deposit .......................................................................................................................... 2,724,233.08 Total Cost of Investments ....................................................................................................... $2,724,233.08 Target Cost of Investments at bond yield ............................................................................... $2,724,233.08 Yield to Receipt ...................................................................................................................... - Yield for Arbitrage Purposes ................................................................................................... 4.8974760% Ehlers & Associates, Inc. File = COLUMBIA HEIGHTS. SF-02 cur of Ser 90 $2,399K G.O. CABs- SINGLE PURPOSE Leaders in Public Finance since 1955 10/29/2002 1:58 PM Page 5 X % ~,ueoJed CITY COUNCIL LETTER WORK SESSION OF: FEBRUARY 3, 2003 AGENDA SECTION: ORIGINATING DEPT: CITY MANAGER NO: FINANCE APPROVAL c^. s PAYMENT OF CITY FEES NO: DATEY/$ANUARY 30, 2003 The subject of accepting credit cards for payment of utility bills, recreation fees, and other city services has come up on several occasions. The city has accepted credit cards in the liquor operation for approximately eight years and it has proven to be very successful and a good service to our customers. Currently, in a very brief survey, we found that other cities have been accepting credit cards for recreation fees and in some other areas for several years. This is very convenient because it allows residents to register by phone. The greatest negatives to accepting credit card payments are that there is a processing fee of approximately 2.5%, which means that the revenue the city normally receives would be reduced by 2.5%. By the regulations of credit card companies, this fee cannot be passed on to the credit card user, it must be absorbed by the company accepting the credit card or fees in general across the board can be raised to cover this additional expense. The second negative is staff time involved. Doing monthly reconciliations of credit card accounts is time consuming and takes additional staff resources. Staff will be available at Monday night's work session to respond to questions the City Council may have regarding this matter. WE:sms 0301303COUNCIL COUNCIL ACTION: CITY COUNCII~ LETTER Meeting of.' February 10, 2003 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY MANAGER APPROVAL NO: Fire OSHA Safety Related Grant BY: Charles Thompson BY'~/~ ITEM: NO: DATE: January 29, 2003 DATE: In December 2002, Fire Department members, Captain Matthew Field and Fire:fighter Dan O'Brien applied for a safety related grant from the 1Vfmnesota Department of Labor and Industry. The grant was written specifically for safety related equipment (turnout gear, helmets, boots, gloves, and goggles). On January 22, 2003, the Fire Department received confmmtion that OSHA had awarded the matching gram for a total of $10,000.00, to be used to purchase the mentioned safety related equipment. The Fire Department must first purchase the safety equipment and submit the receipts to the State oflVfmnesota for reimbursement. Due to budgetary issues, the State has ended the program, but will honor the current grants offered. The Fire Department received from Metro Fire Equipment the lowest of three price quotations for turnout gear (15 sets at $987 each for a total of $14,805.00). The Fire Depamnem budgeted $7,000.00 for protective clothing to purchase these items in 2003. The remaining $3,003.50 will be allocated from Fire Department Minor Equipment Fund (101-42200-2010). RECOMMENDED MOTION: Move to Authorize Staff to Accept the Matching OSHA Grant from the 1Vfmnesota r)epamm oftabor. 03 -3 AU. achment COUNCIL ACTION: STATE OF MINNESOTA ,.JAN 0 3 ~03 GRANT CONTRACT DLI WORKPLACE SAFETY CONSULTA'TiOI~ This grant contract is between the State of Minnesota, acting through its D~~t of Labor and Industry, Occupational SafeW and Health Consultation Unit ("State") and City of Columbia Heigh~ Fire Devt ("Grantee"). Recitals 1. Under Minn. Stat. § 79.253 the State is empowered to enter into this grant. 2. The State deems the performance of the safety grant project hereunder to be important to the safety of workers. 3. The Grantee represents that it is duly qualified and agrees to implement the project described in this grant contract to the satisfaction of the State. Grant Contract Term of Grant Contract 1.1 Effecti~ date: ThisGrant Conlract shall be effective upon the date that the final required signature is obtained by the State, pursuant to Minn. Stat. § 16C.05, Subd. 2. The Grantee understands that no work relying on this Grant Contract should begin until all required signatures have been obtained and Grantee is notified by the State's Authorized Representative. 1.2 Expiration date: 120 days after the effective date, or until all obligations have been satisfactorily fulfilled, - whichever occurs fa'st. 1.3 Survival of Terms. The following clauses survive the expiration or cancellation of this grant contract: 8. Liability, 9. State Audits; 10. Government Data Practices; 12. Publicity and Endorsement; 13. Governing Law, Jurisdiction, and Venue; and 15. Data Disclosure. Grantee's Duties The Grantee, who is not a state eiiiployee, will: perform and complete the turn out gear. helmets, boots. ~loves, ~o~les purchase and implementation project activities according to the project description incorporated herein (16) and submitted in the grant application. 3 Time The Grantee must comply with all the time requirements described in this grant conlract. In the peff~n.,mce of this grant contract, time is of the essence. 4 Consideration and Payment 4.1 Consideration. The State will reimburse project costs under this grant contract as follows: Reimbursement. The Grantee will be paid up to $10.000 per 4.2. Cvrant~ certifies that the dollar for dollar matching requirement for the grant will be met by Cmmtee. Any cost ovemms incurred in the development and implementation of the project shall be the sole responsibility of the recipient 4.2. Payment Invoices. Subject to item 5, "Conditi~m of Paymenf; the State will promptly pay the Grantee, aria' the Grantee presents proof of payment/tempts and the certification of completion foxm, and the req~ts of the project have been met, for the project costs expended and the State's Authorized Representative acaT, epts the expenditures. Proof must be submitted timely and be based on the detailed records maintained of all expenditures related to the project and according to the following schedule: Proof of payment/receipt(s) upon project completion and certification. 5 Conditions of Payment The project descn'bed by the Grantee under this grant contract must be implemented as submitted to the State's satisfaction, as determined at the sole discretion of the State's Authorized Representative and in accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The Grantee will not receive payment for project grant until State has received a Certification of Completion Form and verified compliance with Grant (Rev. 12/00) 1 6 7 8 9 10 11 all requirements for the project. The Grantee will not receive payment for work found by the State to be unsatisfactory or performed in violation of federal, state, or local law. Authorized Representstive The State*s Authorized Representative is James Collins, MNOSHA Management Team. or his/her successor, and has the responsibility to monitor the Grantee's performance and the authority to accept the project implementation provided under this grant contract. If the project performance is satisfactory, the State's Authorized Representative will certify acceptance on the Certificate of Completion Form submitted by Grantee. The Grantee's Authorized Representative is Charles Thompson. If the Grantee's Authorized Representative changes at any time during this grant contract, the Grantee must i,~-a,-,ediately notify the State. Assignment, Amendments, Waiver, and Grant Contract Complete 7.1 Assignmea& Thc Grantee may neither assign nor ~m-..qfer any rights or obliga6orm under this grant contract without the prior consent of the State and a fully executed Assigmnent Agreement, executed and approved by the same parties who executed and approved this grant contract, or their successors in office. 7.2/lmendment~ Any amendment to this grant contract must be in writing and will not be effective until it has been executed and approved by the same parties who executed and approved the original grant contract, or their successors in office. 7.3 WaiYer. If the State fails to enforce any provision of this grant contract, that failure does not waive the provision or its right to enforce it. 7.4 Grant Contract Complete. This grant contract contains all negotiations and agreements between the State and the Grantee. No other understanding regarding this grant contract, whether written or oral, may be used to bind either party. Liability The Grantee must indemnify, save, and hold the State, its agents, and employees harmless fi.om any claims or causes of action, including attorney's fees incurred by the State, arising from the performance of this grant contract by the Grantee or the Grantee's agents or employees. This clause will not be construed to bar any legal remedies the Grantee may have for the State's failure to fulfill its obligations under this grant contract. State Audits Under Minn. Stat. § 16C.05, subd. 5, thc Grantee's books, records, documents, and accounting procedures and practices relevant to this grant contract are subject to examination by the State and/or the State Auditor or Legislative Auditor, as appropriate, for a minimum of six years from the end of this grant contract. Grantee agrees to an on-site safety and health consultation by State after the project is complete. Government Data Practices Government Data Practices. The Grantee and State must comply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by the State under this grant contract, and with both it and with Minnesota Rules part 5203.0050, subp 1, as they apply to all data created, collected, received, stored, used, maintained, or disseminated by the Grantee under this grant contract. The civil remedies of Minn. Stat. § 13.08 apply to the release of the data referred to in this clause by either the Grantee or the State. If the Grantee receives a request to release the data referred to in this Clause, the Grantee must i,iiiiiediately notify the State. The State will give the Cyrantee instructions concerning the release of the data to the requesting party before the data is released. Workers' Compensation The Grantee certifies that it is in compliance with Minn. Stat. § 176.181, subd. 2, pertaining to workers' compensation insurance coverage. The Grantee's employees and agents will not be considered State employees. Any claims that may arise under the Minnesota Workers' Compensation Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission on the part of these employees are in no way the State's obligation or responsibility. Grant (Rev. 12/00) 2 12 Publicity and Endorsement 12.1 Pub//c/O,. Any publicity regarding the subject matter of this grant contract must identify the State as the sponsoring agency and must not be released without prior written approval from the State's Authorized Representative. For purposes of this provision, publicity includes notices, inf, d, mational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Grantee individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this grant contract. 12.2 Endorsement. The Grantee must not claim that the State endorses its products or services. 13 Governing Law, Jurisdiction, and Venue Minnesota law, w/thout regard to its choice-of-law pmvis/ons, governs this gnmt contract. Venue for all legal proceedings out of this grant contract, or its breach, must be in the appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota. 14 Termination 14.1 Termination by tke State. The State may cancel this grant contract at any time, with or without cause, upon 30 days' wr/tten notice to the Grantee. Upon termination, the Grantee will be entitled to payment determined on a pro rata basis, for items which accomplish safety goals, albeit short of project completion. 14.2 The State may c~mcel this Grant Contract i.u,ediately if the State finds that there has been a failure to comply with the provisions of this Cyrant Con,t, that reasonable progress has not been made or that the purposes for which the funds were granted have not been or will not be fulfilled. The State may take action to protect the interests of the State of Minnesota, including the refusal to disburse additional funds and requiring the return of all or part of the funds already disbursed. 1S Dam Disclosure Under Minn. Stat. § 270.66, and other applicable law, thc Grantee consents to disclosure of its social security number, federal employer tax identification number, and/or Minnesota tax identification number, already provided to the State, to federal and state tax agencies and state personnel involved in the payment of state obligations. These identification numbers may be used in the enforcement of federal and state tax laws which could result in action requiring the Grantee to file state tax returns and pay delinquent slate tax liabilities, if any. 16 Other Provisioas Incorporation by reference - The safety grant pwject description in the proposal submitted to State on 11/27/02 is attached and hereby incorporated by reference. 1. State Encumbrance VerJf'Kation Individual certifies tAat f~ds kave bee~ encumbered as required by Mhm. Stdr. ~ lid. l$ f~d 16C0~ Si~ned: 3. State A~CY _ Title: Assistant Commissioner CFMS Grant contact No. A- 2. Grantee The Grantee certifies that the appropriate person(s) have executed the grant contract on behalf of the Grantee as required by applicable articles, bylaws, resolutions, or ordinances. Distribution: Agency Omntce State's Authorized Representative - Photo Copy Grant (Rev. 12/00) 3 City of Columbia Heights Fire Department 555 Mill Street NE, Columbia Heights, MN 55421 763-706-3650 Fax: 763-706-3651 Attachment 1 Personal Protective Eauioment (PPE) Pr~ect Descriotion The City of Columbia Heights Fire Department has requested bids to purchase personal protective equipment (turnout gear, helmets, goggles, hoods, gloves and boots) to bdng all personnel's PPE up to current NFPA (National Fire Protection Association) and other industry standards. The purchase of new PPE will replace existing substandard or out-of-date equipment. Technical Verification of compliance wJffl f~ferdl~ sb~te and local regulations and applicable standards such as fire codes~ UBC~ N£¢ and OSHA. - Refer to vendor specificaUons. See attached bids. ffmplementation .~:itedule: Coundl approval to purchase safety equipment. December 2002 - grant applicaUon December 2002, noUfy coundl of grant award, notify vendor to proceed with purchase. Estimated date of compleUon - March 2003. Names and qualifications of primary responsible parties for completing this project. Charles Thompson, Fire Chief Matthew Field, Captain Daniel O'Brien, Firefighter/EMT Current status of project: Fire Department has obtained two bid quotations and is seeking grant funding from the State of Minnesota. Location of Project: Columbia Heights Fire Department - 555 Mill Street, Columbia Heights, MN 55421 Number of employees that will benefit from completion of this project and how the project will impact injury reduction efforl~. Ten full-time and 30 part-time employees will benefit from the proposed personal protective equipment improvements. This project will minimize the exposure of employees to TDLH (Immediately Dangerous to Ufe and Health) atmos~. The summary of the economic feasibility of the project: The Columbia Heights Fire Department annually sets aside funding for PPE replacement and improvement. See attached financial statement section - budget page. Des~'pffon of Ztom$ to be purchased (include vendor quotes). I PRZCE I TOTAL AMOUNT, 15 sets of turnout gear (bunker pants, coats and suspenders) - 17 pairs of firefighting boots - 18 pairs of firefighting gloves - 50 fire~ghUng PBI hoods - 10 helmets- 40 sets of eye protection goggles - sg87.00/set $14,805.00 $74.50/pair $1,266.50 $33.75/pair $607.50 $17.49/each $874.50 $101.O0/each $1,010.00 $36.00/each $1,440.00 Total Project Cost: Amount requested from state grants. Amount of employer-matching funds Amount received or available from other sources. $20~003.50 $10,000.00 $10,003.50 $o.oo CERTIFICATION OF COMPLETION Company Name: Address: City/State/Zip: 'I hereby certify that the conditions md requirements outlined in the Safety Grant Agreement have been fulfilled by the company named above. Receipts and proof of payment for items purchased and photographs of new or modified equipment and items are enclosed. I further certify that I am a valid representative of the company named above, and am aUthorized to certify project completion by the owner or a corporate officer 0fthe company. I understand that, in accordance with the Safety Grant Agreement, documentation of project completion must be submitted to the Minnesota Department of Labor and Industry prior to the release of grant monies. Authorized Siglmture Title Project Completion Date Please complete, and return this certificate and all related documentation to the Minnesota Department of Labor and Industry, Workplace Safety Consultation, 443 Lafayette Road, Slx Paul, MN, 55155. Contact Jim Collins at (651) 284-5060 it'y0u have any questions. Project approved for payment James Collins, OMT DirecWr Workplace Safety Consultation Division Pwject disapproved for payment James Collins, OMT Director Workplace Safety Consultation Division Date FOR OFFICE USE ONLY Approved for $ Date Date to aeet PO # Vendor # Agreement # COLUMBIA HEIGHTS - CITY COUNCIL LETTER Meeting of: February 3, 2003 AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: CITY MANAGERS NO: CITY MANAGER APPROVA~L, ITEM: BY: Walt Fehst BY: ~,e~///~ NO: DATE: January 29, 2003 DATE: Mayor Wyckoffhas asked that City Councilmembers discuss the request received from our Sister City Committee for a donation to assist in hosting dignitaries fi-om our Sister City, Lomianki Poland. The group will be invited here during our Columbia Heights Jamboree. Totino-Grace High School has offered to provide housing. The Sister Cities Chopin Piano Concert has raised most of the funds needed. Certain members, to ease the costs, will personally provide some activities. Any donation will only be used for our Sister Cities guests. This request has come from our Sister Cities Co-Chair, Dolores Strand, with the statement that "whatever amount of assistance you approve will be TREMENDOUSLY appreciated". COUNCIL ACTION: (0 sister CITIES INTERNATIONAL 590 40th Avenue N.E. COLUMBIA HEIGHTS, MINNESOTA 55421 COLUMBIA HEIGHTS Minnesota, U.S.A. IVIA¥OR JULIENNE WYCKOF~ and' 590- 40TM Avenue, N.E, Columbia Hcigh~ MN - 55421 PHONE: (763) 706-3600 FAX: (763) 706-3601 I'9, January 2003' RE: Lomianki Viaitors - 2003 LOMIANKI Poland Dear Mayor Wyckoff-and Coun~'Members, We are inviting: Mayor andMm Lucian So'kolowiki; Sistex City Officials: Ryszord Szczesniak, Thes~ Sister Cities' officers are ALL original/charter members of ~ir group and theylmvc all'been -active continaoa,.~-thes~ pan TWELVE3tear~. Ttn'on~eff~-6'orts,Xhe Columbia I-~ghts I Lomianld relationship tins received much atteafion-not only in-the Lomim/a-area, bat atsoin Warsaw,-poland's ~ and the U.S. through the various projects we have tmd~,alam, involvements on a state level,. and participation in imernafional conferences in Atlanta, GA, and Toledo, 'OH. We are all aware of the ~ situation for Col.mhia i-leight~ and we are all very concerned about it. W~,,~,~y ,,~,.,.~t ii~i y~u considee adonation to om~g~mpt~as~twiih~lb~ ~ wc will incur. dinners, toms, etc. They wilIbe in our I~ Parade- TFIEI6gtaight event-~r our c, onununi~..,which Concen h~__s raised most of what is needed. Whatever amount of m'sismn~you ~pprov~ wilt'be TREME~LY appreciated. Please call me ff you have qu~tions. Representatives fi'om our group woutdbe available to-meet with you atoneofyom woflt ~ ff this would be he,fut. D~FgUJEBARDZO~ your considerat~ of thisxequest. G(N~ LUCK t/q ALL YOUR ENDEAVORS. Dolores Sa-and, Co Chair 763 ! 57-I-.I709 e-mail: dpslmml~ .,~ family, ne[ CITY COUNCIL LETTER Meeting of: February 10, 2003 AGENDA SECTION: ITEMS FOR CONSIDERATION ORIGINATING DEPARTMENT: CITY MANAGER'S NO: CITY MANAGER'S APPROVAL NO:f~/i~ i ~'~ At the Council meeting of January 27, 2003, establishing a date for the annual Board of Review was tabled, and the council requested it to be held on March 31, 2003. Per State Statute 274.01, the Board of Review must be held between April 1 and May 31 of each year. In speaking to Janene Hebert, Anoka County Assessor, she would prefer holding the Board of Review in April or no later than the first week of May. That way, in case the meeting is continued, there will be ample time to address unresolved issues. The available dates to schedule the Board of Review are: Monday, April 21, 2003, at 7:00 p.m. Monday, May 5, 2003, at 7:00 p.m. RECOMMENDED MOTION: Move to set the Local Board of Review meeting for Monday, April 21, 2003, at 7:00 p.m. in the City Council Chambers. ALTERNATE MOTION: Move to set the Local Board of Review meeting for Monday, May 5, 2003, at 7:00 p.m. in the City Council Chambers. COUNCIL ACTION: