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HomeMy WebLinkAboutNovember 12, 1991OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL REGULAR COUNCIL MEETING NOVEMBER 12, 1991 The meeting was called to order by Mayor Carlson at 7:00 p.m. 1. ROLL CALL Nawrocki, Clerkin, Ruettimann, Peterson, Carlson - present PLEDGE OF ALLEGIANCE Welcome of New Mayor Mayor Carlson welcomed newly-elected Mayor Donald Murzyn, Jr. to the Council meeting and congratulated him on his victory in the recent election. CONSENT AGENDA The following items were approved on the Consent Agenda: Approval of Minutes of Previous Meetings The Council approved the minutes of the Regular City Council Meeting of October 28, 1991 as presented and there were no corrections. A_pRroval of License Applications The Council approved the license applications as listed upon payment of proper fees. Payment of Bills The Council approved the bills as listed out of proper funds. APPROVAL OF CONSENT AGENDA Motion by Nawrocki, second by Clerkin to approve the Consent Agenda as presented. Roll call: All ayes OPEN MIKE/PROCLAMATIONS/PRESENTATIONS There was no one present for Open Mike and there were proclamations or presentations. RESOLUTIONS AND ORDINANCES a. no Second Reading of Ordinance No. 1235; Being an Ordinance Providing for the Issuance and Sale of General Obligation Tax Increment Refunding Bonds of $6,685,000, Series 1991A An amended copy of the Terms and Conditions of the bonds was distributed to the Council. There were minor changes which were reviewed by a representative of Springsted REGULAR COUNCIL MEETING NOVEMBER 12, 1991 PAGE 2 Financial Advisors. He noted there will be a savings of $293,000 or more for the City with this refunding action. The City's bond counsel and the City Attorney had reviewed the changes and noted there was no substantive change and everything is in order. The City ManaGer stated the changes for the record which dealt exclusively with dollar amounts in the body of the Terms and Conditions. Motion by Nawrocki, second by Ruettimann to waive the reading of the ordinance subject to the changes as read by the City ManaGaer being included in the final version of the ordinance. Roll call: All ayes ORDINANCE NO. 1235 ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1991A The City of Columbia HeiGhts does ordain: 1. It is hereby determined that: (a) The City is authorized by Minnesota Statutes, Chapter 475 (Act) and Section 475.67 of the Act to issue and sell its General obligation bonds to refund obligations and the interest thereon before the due date of the obligations, if consistent with covenants made with the holders thereof, when determined by the City Council to be necessary or desirable for the reduction of debt service cost to the City or for %he extension or adjustment of maturities in relation to the resources available for their payment; (b) It is necessary and desirable to reduce debt service costs that the City issue approximately $6,725,000 General ObliGation Tax Increment Refunding Bonds, Series 1991A (Bonds) to refund certain outstanding General obligations of the City; (c) The outstanding bonds to be refunded (Refunded Bonds) consist of the $9,100,000 General ObliGation Tax Increment Refunding Bonds of 1987, Series A, dated June l, 1987, of which $6,550,000 in principal amount is callable on March 1, 1994. REGULAR COUNCIL MEETING NOVEMBER 12, 1991 PAGE 3 To provide moneys to refund the Refundable Bonds, the City will issue and sell Bonds in approximately the amount of $6,624,125. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $1,000,875. The exceess of the purchase price of the Bonds over the sum of $6,624,125 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Terms of Proposal: TERMS AND CONDITIONS $6,725,000* CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1991A DETAIL OF THE BONDS The Bonds will be dated December 1, 1991, as the date of original issue, and will bear interest payable on March 1 and September 1 of each year, commencing September 1, 1992. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature March 1 in the years and amounts as follows: 1995 $890,000 1996 $965,000 1997 $955,000 1998 $990,000 1999 $945,000 2000 $900,000 2001 $860,000 2002 $220,000 The City reserves the right, prior to award, to increase or reduce the principal amount of the Bonds offered for sale. AnY such increase or reduction will be a total amount not to exceed $100,000 and will be made in multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is increased or reduced, any premium offered or any REGULAR COUNCIL MEETING NOVEMBER 12, 1991 PAGE 4 discount taken will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. OPTIONAL REDEMPTION The City may elect on March 1, 1999, and on any day thereafter, to prepay Bonds due on or after March 1, 2000. Redemption may be in whole or in part and if in part, at the option of the City, and in such order as the City shall determine and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge income from tax increment districts in the City. The proceeds will be used to advance refund the 1995-2002 maturities of the City's General Obligation Tax Increment Refunding Bonds, Series 1987A, dated June 1, 1987. TYPE OF PROPOSAL The proposal shall be for not less than $6,624,125 and accrued interest on the total principal amount of the Bonds and shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check in the amount of $67,250, payable to the order of the City. The City will deposit the check, the amount of which will be deducted at settlement and no interest shall accrue to the purchaser. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. AWARDS The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of the proposal, in accordance with customary practice, will be controlling. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services REGULAR COUNCIL MEETING NOVEMBER 12, 1991 PAGE 5 of the registrar. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of. CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Holmes & Graven, Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no-litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly- final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. The Official Statement, when further supplemented by an addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost 270 copies of the Official Statement and the addendum or addenda described above. REGULAR COUNCIL MEETING NOVEMBER 12, 1991 PAGE 6 Springsted Incorporated is authorized and directed to negotiate the Bonds for sale to Miller & Schroeder Financial, Inc. in accordance with the foregoing Terms of Proposal. The City Council will meet as soon as possible after the City receives an offer from Miller & Schroeder Financial, Inc. to purchase the Bonds upon terms which are recommended by Springsted Incorporated, for the purpose of awarding the sale of the Bonds and taking any other appropriate action with respect to the Bonds. This ordinance shall be in full force and effect from and after 30 (thirty) days after its passage. First reading: Second reading: Date of passage: October 28, 1991 November 12, 1991 November 12, 1991 Offered by: Seconded by: Roll call: Nawrocki Ruettimann All ayes Mayor Edward M. Carlson Jo-Anne Student, Council Secretary Resolution No. 91-66; Being a Resolution Adopting Changes in Wage Ranges and Establishing Wages The City Manager explained the rationale for making the recommended changes. Motion by Clerkin, second by Peterson to waive the reading of the resolution there being ample copies available for the public. Roll call: All ayes RESOLUTION NO. 91-66 ADOPTING CHANGES IN WAGE RANGES AND ESTABLISHING WAGES FOR TEMPORARY PART TIME LIBRARY EMPLOYEES AND SEASONAL PUBLIC WORKS' POSITIONS WHEREAS, the City of Columbia Heights adopted a Wage Compensation Program for Non-Unionized City Employees effective January 12, 1980 (resolution 80-47), which indicates that on an annual basis changes will be adopted in wage ranges based upon reliable survey data; NOW, THEREFORE, BE IT RESOLVED that the City of Columbia REGULAR COUNCIL MEETING NOVEMBER 12, 1991 PAGE 7 Heights establishes wage ranges for non-unionized temporary part time Library positions and seasonal Public Works' positions, as indicated in Schedule I and II which are on file in the Office of the City Manager; and, BE IT FURTHER RESOLVED that such schedules be effective January 1, 1992. Passed this 12th day of November, 1991. Offered by: Seconded by: Roll call: Clerkin Peterson All ayes Jo-Anne Student, Council Secretary Mayor Edward M. Carlson Motion by Nawrocki, second by Peterson to waive the reading of the resolution there being ample copies available for the public. Roll call: All ayes RESOLUTION NO. 91-67 BEING A RESOLUTION ESTABLISHING RESIDENTIAL RATES FOR REFUSE, RECYCLING, AND YARD WASTE COLLECTION EFFECTIVE JANUARY 1, 1992 WHEREAS, Ordinance No. 853, City Code of 1977 (as amended) pertaining to Garbage, Rubbish and Recycling service provides for the setting of appropriate rates for services rendered; and, WHEREAS, the City awarded a two-year contract to Woodlake Sanitary Service, Inc. to provide refuse, recycling and yard waste collection service in the City of Columbia Heights; NOW, THEREFORE, BE IT RESOLVED that the following monthly refuse, recycling and yard waste collection service rates be adopted and put into effect as of January 1, 1992, on all billings rendered thereafter for residential service, and put into effect as of April 1, 1992, on all billings rendered thereafter for multiple dwelling vat service and City facilities vat service. Resolution No. 91-67; Being a Resolution Establishing Residential Rates for Refuse, Recycling and Yard Waste Collection Effective January 1, 1992 REGULAR COUNCIL MEETING 'NOVEMBER 12, 1991 PAGE 8 RESIDENTIAL SERVICE Private Residents - One Pickup Per Week (and per unit in additional dwelling units of two family buildings) Senior Citizens - One Pickup Per Week (as defined by Council resolution establishing eligibility) $17.10 $13.22 Limited Volume - One Pickup Per Week (as defined by administrative procedure and contract between City and Woodlake Sanitary Service, Inc.) $14.98 MULTIPLE DWELLING SERVICE Vat Service: 1 pickup per week charge per cubic yard 2 pickups per week charge per cubic yard 3 pickups per week charge per cubic yard 4 pickups per week charge per cubic yard 5 pickups per week charge per cubic yard Other Refuse Service: Yard waste and recycling per dwelling unit Administration and overhead per customer $ 35.00 $ 70.00 $105.00 $140.00 $175.00 2.99 1.93 Passed this 12th day of November, 1991. Offered by: Seconded by: Roll call: Peterson Ruettimann All ayes Mayor Edward M. Carlson Jo-Anne Student, Council Secretary 7. COMMUNICATIONS ag Planning and Zoning Commission There was no quorum for the November 5, 1991 Planning and Zoning Commission meeting. North Metro Mayors Association Councilmember Nawrocki referred the Councilmembers to the recent report received from the North Metro Mayors Association. Suburban Rate Authority Councilmember Nawrocki advised the Council that the REGULAR COUNCIL MEETING NOVEMBER I2, 1991 PAGE 9 o Suburban Rate Authority was successful in its efforts to have the Tier System of the telephone utility abandoned. This affected our City in that the second tier of the system began north of 44th Avenue. Association of Metropolitan Municipalities Councilmember Nawrocki advised that the AMM has adopted policy positions on issues which are important to the City of Columbia Heights. He specifically directed attention to formulas for funding changes. Mayor Carlson noted that Local Government Aids are a significant source of funds for Columbia Heights and any decreases in this funding could make 1992 a very difficult budgeting year for the City. OLD BUSINESS Tree Planting Contract The City Manager advised that the agreement with Greenworks, Inc. for replacing trees in the City should be extended. He explained that the early snowfall has interrupted the planting of the trees. He recommended that the agreement be extended and that one third payment be authorized to the contractor. Motion by Clerkin, second by Peterson to reconsider the action of the Council regarding the agreement with Greenworks, Inc. approved on April 8, 1991, and that the warranty be extended through the Fall of 1992 and that the Council authorize one-third of the fee due be paid. Roll call: All ayes bo Mid-Block Lighting Mayor Carlson inquired why Northern States Power has not started the installation of mid-block lighting in the southeast quadrant of the City which was authorized last March. The Public Works Director responded he has been in constant contact with NSP regarding this matter and is becoming very frustrated· He noted that officials of NSP have repeatedly stated the project will be started and have failed to do anything. He will continue to pursue the matter. NEW BUSINESS Engineering Contract for Reconstruction of Pump Station No. 2 Staff reviewed all of the options for reconstruction of Pump Station #2. Another option was received from Maier REGULAR COUNCIL MEETING NOVEMBER 12, !991 PAGE 10 Stewart & Associates, who is the consulting engineering firm for this project. This option was distributed to the Council. Motion by Peterson, second by Ruettimann to amend the engineering contract with Maier Stewart & Associates, Inc. for Municipal Projects #9119 and #9120 to an amount not to exceed $21,300; and furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. Roll call: All ayes Replacement of South Upper Level Door at Municipal Service Center Motion by Nawrocki, second by Ruettimann to authorize the purchase of a new door replacement for the Municipal Service Center, cable work on three other doors and replacement of pneumatic safety edges on four doors in a net amount of $3,111.48; and furthermore, to transfer funding for the replacement of the garage door from the Garage Fund Retained Earnings with costs for the other items to come from the Maintenance Budget and the Mayor and City Manager be authorized to enter into an agreement for same with Crawford Door Sales of West St. Paul and that the staff be directed to pursue possible insurance coverage for damages to the door. Roll call: All ayes c. Appointments to Boards and Commissions Recess: Reconvene: 9:00 p.m. 9:15 p.m. Motion by Ruettimann, second by Nawrocki to appoint Pat Grady to fill the unexpired term of Veronica Schlagel on the Park and Recreation Commission; to appoint Peggy Duda to a vacancy on the Human Services Commission and to appoint Stephen Riner to a vacancy on the Science, Technology and Energy Commission. Roll call: All ayes 10. REPORTS a. Report of the City Manager The City Manager's report was submitted in written form and the following items were discussed: Consultant Report on Comprehensive Plan: The City Manager advised that the consultant from BRW will be making a report on the Comprehensive Plan and survey results at the December 3rd meeting of the Planning and Zoning Commission. This presentation was made previously but no REGULAR COU~CIL MEETING NOVEMBER 12, 1991 PAGE 11 one on the City Council was in attendance. Surface Water Management Agreement: The preliminary plans for the surface water management issue have been completed. Copies of the plan were distributed to the Council. The City Manager will set up a joint meeting of the Columbia Heights and Fridley councils for the consulting engineer to review the plans and to answer questions. Senior Outreach Worker: A request had been received from ACCAP for additional funding as the Senior Outreach Program is about $4,500 short. This request is for the current year's operation which runs from September through May. It was noted that there is $3,000 remaining in the 1991C.D.B.G. funds. Councilmember Nawrocki advised he had pursued the Meals on Wheels program dilemma in qualifying for C.D.B.G. funds. He noted that eighty percent of the recipients of this program are Columbia Heights residents. The request was for supplemental funds which are used to pay the cost of meals which were not affordable by some of the recipients. This program did not qualify to receive funds from the C.D.B.G. Program because it could not supply the insurance coverage required by Anoka County which is the operating agent of the Program. Councilmember Nawrocki noted that Meals on Wheels is incorporated as a non- profit and tax exempt organization and was questioning their need to qualify for the funding. The City Manager stated that this insurance coverage is a requirement of Anoka County, but he will study the matter further. Councilmember Nawrocki stated his support for additional funding for the Senior Outreach Worker Program. Miscellaneous Items: Councilmember Ruettimann observed, while looking at recent alley improvements, that one of the alleys appears to have some hydraulic oil spilled on it. The Public Works Director responded that this was done by a tree cutting firm's truck and was spilled on that portion of the alley which was repaired. Councilmember Ruettimann commented that the holiday lights which are being placed on poles in the downtown area are not being placed on all poles. He was advised that there are some problems with electrical power and that some of the poles need brackets. REGULAR COUNCIL MEETING NOVEMBER 12, 1991 PAGE 12 The City ManaGer advised that snow will be hauled from the downtown area beGinninG on Wednesday, November 13th. Councilmember Nawrocki stated he will not be in attendance at the November 25th Council meeting as he has a job-related commitment. Report of the City Attorney The City Attorney had nothing to report at this time. ADJOURNMENT Motion by Ruettimann, second by Peterson to adjourn the meeting at 9:50 p.m.. Roll call: All ayes J~-A~e §tudent~"Council Secretary Mayor Edward M. Carlson