HomeMy WebLinkAboutJanuary 25, 1999OFFICIAL PROCEEDINGS
COLUMBIA HEIGHTS CITY COUNCIL
REGULAR COUNCIL MEETING
JANUARY 25, 1999
1. CALL TO ORDER/ROLL CALL
Mayor Peterson called the Council Meeting to order at 7:00 p.m. Present were Mayor Peterson
and Councilmembers Szurek, Jolly and Wyckoff.
2. PLEDGE OF ALLEGIANCE
3. ADDITIONS/DELETIONS TO THE MEETING AGENDA
(The Council, upon majority vote of its members, may make additions and deletions to the
agenda. These may be items brought to the attention of the Council under the Citizen Forum or
items submitted after the agenda preparation deadline.)
There were no additions nor deletions to the meeting agenda.
4. CONSENT AGENDA
(These items are considered to be routine by the City Council and will be enacted as part of the
Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as
next order of business.)
Motion by Wyckoff, second by Szurek to approve the Consent Agenda as follows:
a) Minutes for Approval - January_ 11, 1999
The Council approved the minutes of the January 11, 1999 Regular Council Meeting as
presented.
b) Establish Date for Board of Review
The Council established the date for the Local Board of Review for Monday, April 5,
1999 at 7:00 p.m. in the Council Chambers.
c) Resolution No. 99-07 Being a Resolution Regarding Salary_ and Fringe Benefit Changes
The reading of the resolution was waived there being ample copies available for the public.
RESOLUTION NO. 99-07
ADOPTING CHANGES IN NON-UNION SUPERVISORY SALARY RANGES,
ESTABLISHING SALARIES FOR NON-UNIONIZED SUPERVISORY
POSITIONS, AND CHANGES IN FRINGE BENEFITS
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PAGE 2
WHEREAS, the City of Columbia Heights adopted a Wage Compensation Program for
Non-Unionized City Employees effective January 1, 1980 (Resolution 80-47), which
indicated that on an annual basis changes will be adopted in Group Salary Ranges based
upon reliable survey data; and,
WHEREAS, the City of Columbia Heights adopted a Comparable Worth Implementation
Plan effective January 1, 1988 (Resolution 88-50), to assure comparable compensation for
positions with comparable skill, efforts, responsibilities, and work conditions, and
proportional compensation for positions where such factors are different; and,
WHEREAS, the City of Columbia Heights annually reviews the Employer's share for
various insurance programs for its non-unionized supervisory employees to compare what
is paid for other employee groups in the City;
NOW, THEREFORE, BE IT RESOLVED, that the City of Columbia Heights establishes
salary ranges and Employer contribution to insurances for non-unionized supervisory City
positions, as indicated on Schedule A which is on file in the office of the City Manager for
calendar years 1999 and 2000; and
BE IT FURTHER RESOLVED that movement through the salary range is contingent
upon satisfactory performance of the employee.
Passed this 25th day of January, 1999.
Offered by: Wyckoff
Seconded by: Szurek
Roll Call: All ayes
Gary Peterson, Mayor
JoAnne Student, Council Secretary
d) Resolution No. 99-08 Being a Resolution Adopting Changes Regarding Salary_ and
Fringe Benefits
The reading of the resolution was waived there being ample copies available for the public.
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JANUARY 25, 1999
PAGE 3
RESOLUTION NO. 99-08
ADOPTING CHANGES IN NON-UNION ESSENTIAL AND CONFIDENTIAL
SALARY RANGES, ESTABLISHING SALARIES FOR NON-UNIONIZED
ESSENTIAL AND CONFIDENTIAL POSITIONS, AND
CHANGES IN FRINGE BENEFITS
WHEREAS, the City of Columbia Heights adopted a Wage Compensation Program for
Non-Unionized City Employees effective January 1, 1980 (Resolution 80-47), which
indicated that on an annual basis changes will be adopted in Group Salary Ranges based
upon reliable survey data; and,
WHEREAS, the City of Columbia Heights adopted a Comparable Worth Implementation
Plan effective January 1, 1988 (Resolution 88-50), to assure comparable compensation for
positions with comparable skill, efforts, responsibilities, and work conditions, and
proportional compensation for positions where such factors are different; and,
WHEREAS, the City of Columbia Heights annually reviews the Employer's share for
various insurance programs for its non-unionized essential and confidential employees to
compare what is paid for other employee groups in the City;
NOW, THEREFORE, BE IT RESOLVED, that the City of Columbia Heights establishes
salary ranges and Employer contribution to insurances for non-unionized essential and
confidential City positions, as indicated on Schedule B which is on file in the office of the
City Manager for calendar years 1999 and 2000; and
BE IT FURTHER RESOLVED that movement through the salary range is contingent
upon satisfactory performance of the employee.
Passed this 25th day of January, 1999.
Offered by: Wyckoff
Seconded by: Szurek
Roll Call: All ayes
Gary Peterson, Mayor
JoAnne Student, Council Secretary
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PAGE 4
e) Authorization to Attend Out-of-Town Conference
The Council approved the attendance of the Chief of Police at the Executive Training Institute to
be held in St. Cloud, Minnesota on April 19, 20, 21, 22, 1999 and that all related expenses be paid
from the Police Department budget.
f) Establish City Council Work Session
The Council established Monday, February 1, 1999 at 8:00 p.m. as the date and time for a
Council work session.
g) Payment of the Bills
The Council approved payment of the bills as listed out of proper funds.
h) License Applications
The Council approved the license applications as listed.
Roll call on Consent Agenda: All ayes
5. RECOGNITIONS, PROCLAMATIONS, PRESENTATIONS AND GUESTS
a) Letter to Long Time Resident on Occasion of Her 90th Birthday
Mayor Peterson's letter to Mrs. Irene Sonnek on the occasion of her 90th Birthday.
6. PUBLIC HEARINGS
A. Close Public Hearing - Re: License Revocation at 4929 Fifth Street, Melvin Lund, Owner
Mayor Peterson closed the public hearing regarding the revocation of the rental license held by
Melvin Lund for rental property at 4929 Fifth Street in that the property is in compliance with the
Housing Maintenance Code.
B. Public Hearing - Resolution No. 99-10 Regarding Revocation of Rental License at 3732 Third
Street Owned by Dale Frenzel
Mayor Peterson closed the public hearing regarding the revocation of the rental license held by
Dale Frenzel for rental property at 3732 Third Street in that the property is in compliance with the
Housing Maintenance Code.
Resolution No. 99-10 was not read.
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PAGE 5
7. ITEMS FOR CONSIDERATION
A. Other Ordinances and Resolutions
1) Resolution No. 99-09 Being a Resolution Regarding Revenue Bonds for Columbia
Park Properties - Medical Clinic Properties
The EDA Director advised that the Columbia Park Medical Clinic will realize a significant
savings if the City approves the bond issue. The City bears no responsibility with these
bonds as the bonds are secured solely by revenues derived from the project. Also, the
City's credit rating will not be affected with these bonds.
John Utley, the City's bond counsel, addressed the proposed administrative fees which will
be paid by the Company to the City. Representatives of Columbia Park Clinic noted that
this is not new money therefore suggesting there is no valid basis for charging
administrative fees. They also are of the opinion that this situation is not similar in any
fashion to the Crest View Corporation refunding which recently took place and where
administrative fees were charged.
The EDA Director observed that the action taken by Crest View Corporation was a
refinancing and was not comparable to the current action of the medical clinic.
Motion by Szurek, second by Jolly to waive the reading of the resolution there being
ample copies available for the public. Roll call: All ayes
RESOLUTION NO. 99-09
OF THE CITY OF COLUMBIA HEIGHTS
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLUMBIA
HEIGHTS, MINNESOTA (THE "ISSUER") AUTHORIZING THE ISSUANCE, SALE
AND DELIVERY OF THE ISSUER'S COMMERCIAL DEVELOPMENT
REFUNDING REVENUE BONDS (COLUMBIA PARK PROPERTIES - MEDICAL
CLINIC PROJECT) SERIES 1999 (THE "BONDS"), WHICH BONDS AND THE
INTEREST AND ANY PREMIUM THEREON SHALL BE PAYABLE SOLELY
FROM REVENUES PLEDGED THERETO: APPROVING THE FORM OF AND
AUTHORIZING THE EXECUTION AND DELIVERY OF AN INDENTURE OF
TRUST, A LOAN AGREEMENT, AND A BOND PURCHASE AGREEMENT;
APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND
DELIVERY OF THE BONDS; AND PROVIDING FOR THE SECURITY, RIGHTS
AND REMEDIES OF THE OWNERS OF SAID BONDS.
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WHEREAS, the City of Columbia Heights, Minnesota (the "Issuer") is a home rule city
duly organized and existing under the Constitution and laws of the State of Minnesota;
and
WHEREAS, pursuant to the Constitution and laws of the State of Minnesota, particularly
Minnesota Statutes, Sections 469.152 to 469.1651, as amended (the "Act"), the Issuer is
authorized to carry out the public purposes described therein and contemplated thereby
issuing its revenue bonds to finance the cost of the acquisition, renovation, construction,
improving and equipping of certain revenue agreements made in connection therewith and
pledge those agreements as security for the payment of the principal of and interest on any
such revenue bonds; and
WHEREAS, the Issuer has previously issued its $5,000,000 Commercial Development
Revenue Bonds (Columbia Park Properties Project), Series 1982 (the 1982 "Bonds"); and
WHEREAS, the Issuer loaned the proceeds of the 1982 Bonds to Columbia Park
Properties, a Minnesota general partnership (the "Company") for the purpose of acquiring,
constructing and equipping a commercial facility within the corporate boundaries of the
Issuer (the "Project"); and
WHEREAS, the Issuer issued its Commercial Development Refunding Revenue Bonds
(Columbia Park Properties - Medical Clinic Project) Series 1992, in an aggregate principal
amount of $4,785,000 (the "1992 Bonds"), to provide for the funding of a loan (the
"Loan"), to the Company for the purpose of refunding and redeeming the 1982 Bonds in
accordance with their terms; and
WHEREAS, the Company has requested the Issuer to issue its Commercial Development
Refunding Revenue Bonds (Columbia Park Properties - Medical Clinic Project), Series
1999, in an aggregate principal amount of $4,165,000 (the "Bonds"), to provide for the
funding of a loan (the "Loan") to the Company for the purpose of refunding and
redeeming the 1992 Bonds in accordance with their terms; and
WHEREAS, the Loan will be made pursuant to the terms of a Loan Agreement dated as
of March 1, 1999 (the "Loan Agreement"), between the Issuer and the Company; and
WHEREAS, the Issuer proposes to finance the refunding and redemption of the 1992
Bonds under the Act by the issuance of the Bonds of the Issuer under this resolution; and
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WHEREAS, the Bonds will be issued under an Indenture of Trust, dated as of March 1,
1999 (the "Indenture"), between the Issuer and the trustee named therein (the "Trustee"),
and are secured by a Mortgage, Security Agreement, Assignment of Leases and Rents and
Fixture Financing Statement dated as of March 1, 1999 (the "Mortgage"), from the
Company to the Issuer, and assigned by the Issuer to the Trustee pursuant to the
Assignment of Mortgage, dated as of March 1, 1999 (the "Assignment"), and a pledge
and assignment of certain other revenues, all in accordance with the terms of the
Indenture, and said Bonds and the interest on said Bonds shall be payable solely from the
revenues pledged therefor and the Bonds shall not constitute a debt of the Issuer within
the meaning of any constitutional or statutory limitation or constitute or give rise to a
pecuniary liability of the Issuer or a charge against its general credit or taxing powers and
shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property
of the Issuer other than the Issuers' interest in the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COLUMBIA HEIGHTS, MINNESOTA, AS FOLLOWS:
1. The Issuer acknowledges, finds, determines, and declares that the refunding and
redemption of the 1992 Bonds, the proceeds of which were used to construct the Project,
is authorized by the Act and furthers the purposes of the Act.
2. For the purposes set forth above, there is hereby authorized the issuance, sale and
delivery of the Bonds in a principal amount of $4,165,000. The Bonds will be numbered,
shall be dated, shall bear interest, shall mature, shall be subject to redemption prior to
maturity, shall be in such form, and shall have such other details and provisions as are
prescribed in the Indenture substantially in the form now on file with the Issuer ( or as
amended in accordance with this resolution).
3. The Bonds shall be special obligations of the Issuer payable solely from the revenues
provided pursuant to the Loan Agreement and other funds and revenues pledged pursuant
to the Loan Agreement and other funds and revenues pledged pursuant to the Indenture.
The City Council of the Issuer hereby authorizes and directs the Mayor and the City
Manager of the Issuer (together, the "Officials") to execute and deliver the Indenture by
and between the Issuer and the Trustee, and to deliver to said Trustee the Indenture, and
hereby authorizes and directs the execution of the Bonds in accordance with the
Indenture, and hereby provides that the Indenture shall provide the terms and conditions,
covenants, rights, obligations, duties and agreements of the bond owners, the Issuer and
the Trustee as set forth therein.
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4. The Officials are hereby authorized and directed to execute and deliver the Loan
Agreement and the Bond Purchase Agreement by and among John G. Kinnard and
Company, Incorporated (the "Underwriter"), the Company and the Issuer (the "Bond
Purchase Agreement"). All of the provisions of the Loan Agreement and the Bond
Purchase Agreement when executed and delivered as authorized herein, shall be in full
force and effect from the date of execution and delivery thereof. The Loan Agreement and
the Bond Purchase Agreement shall be substantially in the forms on file with the Issuer,
with such omissions and insertions as do not materially change the substance thereof, or as
the City Manager, in his discretion, shall determine, and the execution thereof by the City
Manager shall be conclusive evidence of such determination.
5. The Bonds shall be revenue obligations of the Issuer the proceeds of which shall be
disbursed pursuant to the Indenture and the Loan Agreement, and the principal, premium
and interest on the Bonds shall be payable solely form the proceeds of the Bonds, the
Loan Agreement and amounts realized under the Security Documents.
6. The Trustee is hereby appointed as Paying Agent and Bond Registrar for the Bonds.
7. The Officials are hereby authorized to execute and deliver, on behalf of the Issuer, such
other affidavits, certificates, and other documents as are necessary or appropriate in
connection with the issuance, sale and delivery of the Bonds, including an arbitrage
certificate, and all other documents and certificates as shall be necessary and appropriate
in connection with the issuance, sale and delivery of the Bonds.
8. The Issuer has not participated in the preparation of the Preliminary Official Statement
or the Official Statement relating to the Bonds (the "Official Statement") and has made no
independent investigation with respect to the information contained therein, including any
appendices thereto, and the Issuer assumes no responsibility for the sufficiency, accuracy
or completeness of such information. Subject to the foregoing, the Issuer hereby consents
to the distribution of the Official Statement by the Underwriter in connection with the sale
of the Bonds.
9. All covenants, stipulations, obligations and agreements of the Issuer contained in this
resolution and the aforementioned documents shall be deemed to be the covenants,
stipulations, obligations and agreements shall be binding upon the Issuer. Except as other
wise provided in this resolution, all rights, powers, and privileges conferred and duties and
liabilities imposed upon the Issuer by the provisions of this resolution or the
aforementioned documents shall be exercised or performed by such officers, board, body
or agency thereof as may be required or authorized by law to exercise such powers and to
perform such duties.
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No covenant, stipulation, obligation or agreement herein contained or contained in the
aforementioned documents shall be deemed to be a covenant, stipulation, obligation or
agreement of any member of the City Council of the Issuer, or any officer, agent or
employee of the Issuer in that person's individual capacity, and neither the City Council of
the Issuer nor any officer or employee executing the Bonds shall be liable personally on
the Bonds or be subject to any personal liability or accountability by reason of the issuance
thereof.
No provision, covenant or agreement contained in the aforementioned documents, the
Bonds or in any other document related to the Bonds, and no obligation therein or herein
imposed upon the Issuer or the breach thereof, shall constitute or give rise to any
pecuniary liability of the issuer or any charge upon its general credit or taxing powers. IN
making the agreements, provisions, covenants and representations set forth in such
documents, the Issuer has not obligated itself to pay or remit any funds and revenues
derived form the Loan Agreement which are to be applied to the payment of the Bonds, as
provided therein and in the Indenture.
10. Except as herein otherwise expressly provided, nothing in this resolution or in the
aforementioned documents expressed or implied, is intended or shall be construed to
confer upon any person or firm or corporation, other than the Issuer or any owner of the
Bonds issued under the provisions of this resolution, the aforementioned documents and
all of their provisions being intended to be and being for the sole and exclusive benefit of
the Issuer and any owners from time to time of the Bonds issued under the provisions of
this resolution.
11. In any case any one or more of the provisions of this resolution, or of the
aforementioned documents, or of the Bonds issued hereunder shall for any reason be held
to be illegal or invalid, such illegality or invalidity shall not effect any other provisions of
this resolution, or of the aforementioned documents, or of the Bonds, but this resolution,
the aforementioned documents, and the Bonds shall be construed and endorsed as if such
illegal or invalid provision has not been contained therein.
12. The Bonds, when executed and delivered, shall contain a recital that they are issued
pursuant to the Act, and such recital shall be conclusive evidence of the validity of the
Bonds and the regularity of the issuance thereof, and that all acts, conditions and things
required by the laws of the State of Minnesota relating to the adoption of this resolution,
to the issuance of the Bonds and to the execution of the aforementioned documents to
happen, exist and be performed precedent to and in the enactment of this resolution, and
precedent to issuance of the Bonds and precedent to the execution of the aforementioned
documents have happened, exist and have been performed as so required by law.
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13. The officers of the Issuer, attorneys, engineers and other agents or employees of the
Issuer are hereby authorized to do all acts and things required of them by or in connection
with this resolution, the aforementioned documents, and the Bonds for the full, punctual
and complete performance of all the terms, covenants and agreements contained in the
Bonds, the aforementioned documents and this resolution.
In the event that for any reason the Mayor of the Issuer is unable to carry out the
execution of any of the documents or other acts provided herein, any other member of the
City Council of the Issuer shall be authorized to act in his capacity and undertake such
execution or acts on behalf of the Issuer with full force and effect which executions or acts
shall be valid and binding on the Issuer. If for any reason the City Manager of the Issuer is
unable to execute and deliver the documents referred to in this Resolution, such
documents may be executed by a member of the City Council or the City Clerk with the
same force and effect as if such documents were executed and delivered by the City
Manager of the Issuer.
14. This resolution shall be effective from and after the date of adoption by the City
Council on the Issuer.
Offered by: Szurek
Seconded by: Jolly
Roll call: All ayes
Mayor Gary Peterson
Jo-Anne Student, Council Secretary
B. Bid Considerations
None
C. Other Business
1) City Newsletter Printing Quotations for 1999
Motion by Wyckoff, second by Szurek to authorize the Mayor and City Manager to enter
into an agreement with Rapid Graphics and Mailing for printing, publishing and
distributing the City newsletter based upon their proposal of estimated yearly cost of
$18,944.00 for four publications in 1999. Roll call: All ayes
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8. ADMINISTRATIVE REPORTS
A. Report of the City Manager
The City Manager had nothing to report at this time.
B. Report of the City Attorney
The City Attorney had nothing to report at this time.
9. GENERAL COUNCIL COMMUNICATIONS
A. Minutes of Board and Commission Meetings
Minutes of the January 5, 1999 Library Board of Trustees Meeting were in the agenda
packet. No Council action was necessary.
10. CITIZENS FORUM TO ADDRESS THE COUNCIL ON MATTERS NOT ON AGENDA
Mayor Peterson introduced students who were attending the Council Meeting as part of a
Civics Class assignment. They were members of a class taught by Mr. Galuska and a class
taught by Mr. Kimball.
11. ADJOURNMENT
Motion by Szurek, second by Wyckoff to adjourn the Regular Council Meeting at 7:35
p.m. Roll call: All ayes
Submitted by:
Jo-Anne Student, Council Secretary