HomeMy WebLinkAboutFebruary 22, 1999OFFICIAL PROCEEDINGS
COLUMBIA HEIGHTS CITY COUNCIL
REGULAR COUNCIL MEETING
FEBRUARY 22, 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.
Mayor Peterson acknowledged the death of Abe Verbrugge, a long time resident of Columbia
Heights. The Mayor extended sympathies to the family and requested a moment of silence be
observed in Abe's memory.
2. PLEDGE OF ALLEGIANCE
3. ADDITIONS/DELETIONS TO MEETING AGENDA
Establishment of Council work session dates was removed from the Consent 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.)
A. Motion by Szurek, second by Wyckoffto approve the Consent Agenda items as
follows:
1) Minutes for Approval
The Council approved the minutes of the February 8, 1999 Council Meeting as presented.
2) Establish Hearing Dates for Rental License Revocation
The Council established a hearing date of March 8, 1999 for revocation or suspension of a
license to operate a rental property within the City of Columbia Heights against Robert
Witt at 4222 Monroe Street Northeast.
3) Authorization to Purchase Copier - Police Department
The Council approved the purchase of a Panasonic Model 7750 copier with a 20-bin
sorter and three-hole punch and a large capacity tray from Technifax Business Systems,
Inc. in the amount of $8,677 plus tax, with funding to come from the Capital Equipment
Replacement Fund.
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 2
4) Resolution No. 99-16 Being a Resolution Ordering the Preparation of Report for
Proposed 1999 Alley Construction Project
The reading of the resolution was waived there being ample copies available for the public.
RESOLUTION NO. 99-16
BEING A RESOLUTION ORDERING PREPARATION OF REPORT ON ALLEY
IMPROVEMENT WITH COMPLETE CONSTRUCTION
WHEREAS, the City Council of Columbia Heights is proposing to improve the following
alley by complete construction:
Peters Place to Gould Avenue
Peters Place to North-South Alley
WHEREAS, the City Council intends to assess the benefitted property for all or a portion
of the cost of the improvement, pursuant to Minnesota Statutes, Chapter 429,
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA
HEIGHTS, MINNESOTA that the proposed improvement be referred to Mr. Kevin
Hansen, City Engineer, for study and that he is instructed to report to the Council with all
convenient speed advising the Council in a preliminary way as to whether the proposed
improvement is necessary, cost effective, and feasible and as to whether it should best be
made as proposed or in connection with some other improvement, and the estimated cost
of the improvement as recommended.
Dated this 22nd day of February, 1999.
Offered by: Szurek
Seconded by: Wyckoff
Roll call: All ayes
Mayor Gary L. Peterson
Jo-Anne Student, Council Secretary
REGULAR COUNCIL MEETING
FEBRUARY 22, 1999
PAGE 3
5) Proposals: Creation of a Storm Water Utility
The Council approved engineering services for the creation of a storm water utility to
SEH of St. Paul, Mn. in an amount not to exceed $13,180, with funds to be appropriated
from 652-49450-3050 and authorized the Mayor and City Manager to enter into an
agreement for the same.
6) Water System Analysis
The Council approved engineering services for the Water System Analysis to PCE, Inc. of
Minneapolis, Mn. in an amount not to exceed $18,500 with funds appropriated from 651-
49430-3050 and authorized the Mayor and City Manager to enter into an agreement for
the same.
7) GIS Proposals: Creation of a Digital Physical Feature Data Base
The Council approved engineering services for the creation of a Physical Feature
Database, with Contours, to Horizons, Inc. of Minneapolis, Mn. in an amount not to
exceed $34,140 with funds to be appropriated from 431-43100-5180 and also authorized
the Mayor and City Manager to enter into an agreement for the same.
8) Authorization to Seek Bids for 1999 Miscellaneous Concrete Project
The Council authorized staff to seek bids for the 1999 Miscellaneous Concrete
Replacement and Installation Project.
9) Authorization to Seek Bids for 1999 Street and Parking Lane Striping
The Council authorized staff to seek bids for the 1999 street and parking lane striping
contract.
10) County Expenses
The Council authorized payment of $13,759.97 for administering the 1998 tax increment
financing laws of Minnesota, Truth in Taxation, and Special Assessments, with expenses
being charged to the TIF Debt Services Fund and General Fund.
11) Establishment of Council Work Session Dates/Times
This item was removed from the consent agenda for discussion.
12) Approval of License Applications
The Council approved the license applications as listed and the rental housing license
applications as listed in the memo dated February 16, 1999 from ChiefKewatt.
13) Payment of the Bills
The Council approved payment of the bills as listed out of proper funds.
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 4
14) Authorization to Purchase Copier - Community Development Department
The Council approved the purchase of a Lanier 7335 Analog copier with 20 bin sorter and
finisher (stapler) from Stringer Business Systems, Inc. based upon their qualified,
responsible bid in the amount of $6,078.60 plus tax and $690 annual general maintenance
agreement fee with funds to be appropriated from the Capital Equipment Replacement
Fund and also authorized the City Manager to enter into a purchase/sales order agreement
for the same.
Roll call on Consent Agenda: All ayes
Establishment of Council Work Session Dates/Times
One of the recommended dates, Monday, March 29, 1999, has been selected as a possible
public improvement hearing date. This date was removed from consideration for a Council
work session date.
Motion by Szurek, second by Wyckoffto schedule Council work sessions for Monday,
March 1, 1999 at 8:00 p.m. and Monday, March 15, 1999 at 7:00 p.m. in the City Hall
Conference Room I. Roll call: All ayes
5. PROCLAMATIONS, PRESENTATIONS, RECOGNITIONS AND GUESTS
None
6. PUBLIC HEARINGS
A. Public Hearing - Local Law Enforcement Equipment Block Grant
Mayor Peterson opened the public hearing at 7:10 p.m. The public hearing was closed at
7:11 p.m.
Police Chief Johnson reviewed the list of equipment being recommended for purchase with
the grant funds. A block grant in the amount of $24,6054 was received from the United
States Department of Justice. The Council approved matching funds in the amount of
$2,734. A committee of citizens was organized to review each of the equipment items
listed in the Police Department's request. The list received the endorsement of the
committee.
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 5
Motion by Jolly, second by Szurek to approve the list of equipment to be purchased with
this grant. Roll call: All ayes
7. ITEMS FOR CONSIDERATION
A. Other Ordinances and Resolutions
1) Ordinance No. 1384 and Ordinance No. 1385 Regarding Bond Sale
The construction projects that were completed in 1998 were funded through internal
loans. It is staff's recommendation to sell bonds to cover the 1998, 1999, and 2000
construction projects and to refund the TIF bond issue. The first issue is for assessment
bonds that will fund the City's PIR special assessment fund. The second issue is for utility
bonds.
Motion by Wyckoff, second by Szurek to waive the reading of the ordinance there being
ample copies available for the public. Roll call: All ayes.
ORDINANCE NO. 1384
PROVIDING FOR THE ISSUANCE AND SALE OF
$860,000 GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 1999A
The City of Columbia Heights does ordain:
1. It is hereby determined that:
(a) the following assessable public improvements (the Improvements) have been duly
ordered or contracts let for the construction thereof, by the City pursuant to the provisions
of Minnesota Statutes, Chapter 429 (Act);
Total
Project Designation & Description: Project Cost
Project Costs:
1998 Zone 3 Improvements
1999 Alley Improvements
2000 Zone 4 Improvements
Less Other Funding Sources
Net Project Costs
Costs of Issuance
749,000
532,500
500,000
(940,731)
840,769
15,120
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 6
Discount
Rounding
TOTAL
6,880
(2,769)
$860,000
(b)
It is necessary and expedient to the sound financial management of the affairs of
the City to issue $860,000 General Obligation Improvement Bonds, Series 1999A
(Bonds) pursuant to the Act to provide financing for the Improvements.
To provide financing for the Improvements, the City will issue and sell Bonds in the
amount of $853,120. To provide in part the additional interest required to market the
Bonds at this time, additional Bonds will be issued in the amount of $6,880. The
excess of the purchase price of the Bonds over the sum of $853,120 will be credited
to the debt service fund for the Bonds for the purpose of paying interest first coming
due on the Bonds. The Bonds will be issued, sold and delivered in accordance with
the terms of the following Terms of Proposal:
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE
THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE
FOLLOWING BASIS:
TERMS OF PROPOSAL
$860,000
CITY OF COLUMBIA HEIGHTS, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1999A
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Monday, April 12, 1999, until 10:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100,
Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for
award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (651) 223-3002 to Springsted.
Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal
price and coupons, by telephone (651) 223-3000 or fax (651) 223-3002 for inclusion in the
submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach
Springsted prior to the time of sale specified above. All bidders are advised that each
Proposal shall be deemed to constitute a contract between the bidder and the City to purchase
the Bonds regardless of the manner of the Proposal submitted.
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 7
DETAILS OF THE BONDS
The Bonds will be dated May 1, 1999, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 2000. Interest
will be computed on the basis of a 360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts as follows:
2001 $ 50,000 20055 95,000 20095 85,000
2002 $105,000 20065 90,000 20105 65,000
2003 $100,000 20075 90,000
2004 $ 95,000 20085 85,000
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of Bonds
made to the public. The Bonds will be issued in fully registered form and one Bond, representing the
aggregate principal amount of the Bonds maturing in each year, will be registered in the name of
Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which
will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the
principal amount of $5,000 or any multiple thereof of a single maturity through book entries made
on the books and records of DTC and its participants. Principal and interest are payable by the
registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest
payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest
payments to beneficial owners by participants will be the responsibility of such participants and other
nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be
required to deposit the Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2007, and on any day thereafter, to prepay Bonds due on or after
February 1, 2008. Redemption may be in whole or in part and if in part at the option of the City and
in such manner as the City shall determine. If less than all Bonds of a maturity are called for
redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC
will determine by lot the amount of each participant's interest in such maturity to be redeemed and
each participant will then select by lot the beneficial ownership interests in such maturity to be
redeemed. All prepayments shall be at a price of par plus accrued interest.
REGULAR COUNCIL MEETING
FEBRUARY 22, 1999
PAGE 8
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 special
assessments against benefited property. The proceeds will be used to finance street and alley
improvements within the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $853,120 and accrued interest on the total principal amount of
the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a
certified or cashier's check or a Financial Surety Bond in the amount of $8,600, payable to the order
of the City. Ifa check is used, it must accompany each proposal. Ifa Financial Surety Bond is used,
it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and
preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the
opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit
is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a
Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted
Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted
Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award.
If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to
satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of
which will be deducted at settlement and no interest will accrue to the purchaser. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No
proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting
of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date
without award of the Bonds having been made. 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. No conditional proposals will be accepted.
AWARD
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 each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and, (iii) reject any proposal which the City determines to have failed to comply
with the terms herein.
REGULAR COUNCIL MEETING
FEBRUARY 22, 1999
PAGE 9
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor
at the option of the underwriter, the purchase of any such insurance policy or the issuance of any
such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any
increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by
the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating
agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of
the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
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 Faegre & Benson LLP, of Minneapolis,
Minnesota, 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 the 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.
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution
awarding sale of the Bonds and a Continuing Disclosure Certificate, to provide annual reports and
notices of certain events. A description of this undertaking is set forth inthe Official Statement. The
purchaser's obligation to purchase the Bonds will be conditioned upon its receiving the Continuing
Disclosure Certificate at or prior to delivery of the Bonds.
REGULAR COUNCIL MEETING
FEBRUARY 22, 1999
PAGE 10
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. For copies of the
Official Statement or for any additional information prior to sale, any prospective purchaser is
referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite
1 00, Saint Paul, Minnesota 551 01, telephone (651) 223-3000.
The Official Statement, when further supplemented by an addendum or 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 to any underwriter or underwriting
syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after
the date of such award, it shall provide without cost to the senior managing underwriter of the
syndicate to which the Bonds are awarded 35 copies of the Official Statement and the addendum or
addenda described above. The City designates the senior managing underwriter of the syndicate to
which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official
Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to
the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such
designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters
of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final
Official Statement.
Dated February 22, 1999
BY ORDER OF THE CITY COUNCIL
/s/William Elrite
Finance Director/City Clerk
3. Springsted Incorporated is authorized and directed to negotiate the Bonds in accordance
with the foregoing Terms of Proposal. The City Council will meet at 7:00 p.m. on Monday,
April 12, 1999, to consider proposals on the Bonds and take any other appropriate action
with respect to the Bonds.
First Reading: February 22, 1999
Motion by Wyckoff, second by Szurek to schedule the public hearing and second reading
of Ordinance No. 1384 for March 8, 1999 at approximately 7:00 p.m. Roll call: All ayes
Motion by Jolly, second by Szurek to waive the reading of Ordinance No. 1385 there being
ample copies available for the public. Roll all: All ayes
REGULAR COUNCIL MEETING
FEBRUARY 22, 1999
PAGE 11
ORDINANCE NO. 1385
PROVIDING FOR THE ISSUANCE AND SALE OF
$1,935,000 GENERAL OBLIGATION UTILITY REVENUE BONDS,
SERIES 1999B
The City of Columbia Heights does ordain:
1. It is determined that:
(a) the City engineer has recommended the construction of various improvements to the
City's sanitary sewer and water utility, and has further recommended the creation of a storm
sewer utility and the construction of various improvements thereto (Project).
(b) the City is authorized by Minnesota Statutes, Section 444.075 (Act) to finance all or a
portion of the cost of the Project (Project Costs) by the issuance of general obligation bonds
of the City payable from the net revenues of the system. The Project Costs are presently
estimated by the engineer to be as follows:
Project Designation & Description:
Total
Project Cost
Project Costs
Storm Sewer Projects
Utility Projects
Water Meters
Total Project Costs
Less DNR Grants
Net Project Costs
Costs of Issuance
Discount
Rounding
$1,027,983
721,820
600,000
$2,349,803
(447,750)
$1,902,053
19,120
15,500
(1,673)
TOTAL $1,935, 000
(c) it is necessary and expedient to the sound financial management of the affairs of the City
to issue $1,935,000 General Obligation Utility Revenue Bonds, Series 1999B (Bonds)
pursuant to the Act to provide financing for the Project.
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 12
2. In order to provide financing for the Project, the City will therefore issue and sell Bonds
in the amount of $1,919, 500. To provide in part the additional interest required to market
the Bonds at this time, additional Bonds will be issued in the amount of $15,500. The
excess of the purchase price of the Bonds over the sum of $15,500 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:
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE
THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE
FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,935,000
CITY OF COLUMBIA HEIGHTS, MINNESOTA
GENERAL OBLIGATION UTILITY REVENUE BONDS, SERIES 1999B
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Monday, April 12, 1999, until 1 0:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100,
Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration
for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same
day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (651) 223-3002 to
Springsted. Signed Proposals, without final price or coupons, may be submitted to
Springsted prior to the time of sale. The bidder shall be responsible for submitting to
Springsted the final Proposal price and coupons, by telephone (651) 223-3000 or fax
(651) 223-3002 for inclusion in the submitted Proposal. Springsted will assume no
liability for the inability of the bidder to reach Springsted prior to the time of sale
specified above. All bidders are advised that each Proposal shall be deemed to constitute
a contract between the bidder and the City to purchase the Bonds regardless of the
manner of the Proposal submitted.
DETAILS OF THE BONDS
The Bonds will be dated May 1, 1999, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 2000.
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 13
Interest will be computed on the basis of a 360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts as follows:
2001 $110,000 2005 $195,000 2009 $225,000
2002 $175,000 2006 $200,000 2010 $235,000
2003 $180,000 2007 $210,000
2004 $185,000 2008 $220,000
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution
of Bonds made to the public. The Bonds will be issued in fully registered form and one
Bond, representing the aggregate principal amount of the Bonds maturing in each year,
will be registered in the name of Cede & Co. as nominee of The Depository Trust
Company ("DTC"), New York, New York, which will act as securities depository of the
Bonds. Individual purchases of the Bonds may be made in the principal amount of
$5,000 or any multiple thereof of a single maturity through book entries made on the
books and records of DTC and its participants. Principal and interest are payable by the
registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal
and interest payments to participants of DTC will be the responsibility of DTC; transfer
of principal and interest payments to beneficial owners by participants will be the
responsibility of such participants and other nominees of beneficial owners. The
purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds
with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations.
The City will pay for the services of the registrar,
OPTIONAL REDEMPTION
The City may elect on February 1, 2007, and on any day thereafter, to prepay Bonds due
on or after February 1, 2008. Redemption may be in whole or in part and if in part at the
option of the City and in such manner as the City shall determine. If less than all Bonds of
a maturity are called for redemption, the City will notify DTC of the particular amount of
such maturity to be prepaid. DTC will determine by lot the amount of each participant's
interest in such maturity to be redeemed and each participant will then select by lot the
beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at
a price of par plus accrued interest.
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 14
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 net revenues to be derived from the City's storm sewer, water and sanitary sewer
charges. The proceeds will be used to acquire property and finance improvements to the
City's storm sewer, water and sanitary sewer systems.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,919,500 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit
("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the
amount of $19,350, payable to the order of the City. Ifa check is used, it must
accompany each proposal. If a Financial Surety Bond is used, it must be from an
insurance company licensed to issue such a bond in the State of Minnesota, and
preapproved by the City. Such bond must be submitted to Springsted Incorporated prior
to the opening of the proposals. The Financial Surety Bond must identify each
underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds
are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or
cashiers check or wire transfer as instructed by Springsted Incorporated not later than
3:30 P.M., Central Time, on the next business day following the award. If such Deposit
is not received by that time, the Financial Surety Bond may be drawn by the City to
satisfy the Deposit requirement. The City will deposit the check of the purchaser, the
amount of which will be deducted at settlement and no interest will accrue to the
purchaser. In the event the purchaser fails to comply with the accepted proposal, said
amount will be retained by the City. No proposal can be withdrawn or amended after the
time set for receiving proposals unless the meeting of the City scheduled for award of the
Bonds is adjourned, recessed, or continued to another date without award of the Bonds
having been made. 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. No conditional proposals will be accepted.
AWARD
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 each
proposal, in accordance with customary practice, will be controlling.
REGULAR COUNCIL MEETING
FEBRUARY 22, 1999
PAGE 15
The City will reserve the right to: (i) waive non-substantive informalities of any proposal
or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all
proposals without cause, and, (iii) reject any proposal which the City determines to have
failed to comply with the terms herein.
BOND iNSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser
of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase
of insurance shall be paid by the purchaser, except that, if the City has requested and
received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any
other rating agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to
the purchaser shall not constitute cause for failure or refusal by the purchaser to accept
delivery on the Bonds.
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
Faegre & Benson LLP, of Minneapolis, Minnesota, 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
the 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.
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 16
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the
resolution awarding sale of the Bonds and a Continuing Disclosure Certificate, to provide
annual reports and notices of certain events. A description of this undertaking is set forth
in the Official Statement. The purchaser's obligation to purchase the Bonds will be
conditioned upon its receiving the Continuing Disclosure Certificate at or prior to delivery
of the Bonds.
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 15 c2-12 of the Securities and Exchange
Commission. For copies of the Official Statement or for any additional information prior
to sale, any prospective purchaser is referred to the Financial Advisor to the City,
Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota
55101, telephone (651) 223-3000.
The Official Statement, when further supplemented by an addendum or 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 to any underwriter or underwriting syndicate submitting a proposal
therefor, the City agrees that, no more than seven business days after the date of such
award, it shall provide without cost to the senior managing underwriter of the syndicate
to which the Bonds are awarded 75 copies of the Official Statement and the addendum
or addenda described above. The City designates the senior managing underwriter of the
syndicate to which the Bonds are awarded as its agent for purposes of distributing copies
of the Final Official Statement to each Participating Underwriter. Any underwriter
delivering a proposal with respect to the Bonds agrees thereby that if its proposal is
accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of
assuring the receipt by each such Participating Underwriter of the Final Official
Statement.
Dated February 22, 1999
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 17
Motion by Jolly, second by Szurek to schedule the public hearing and second reading of
Ordinance No. 1385 for March 8, 1999 at approximately 7:00 p.m. Roll call: All ayes
2. First Reading of Ordinance No. 1383 Being a Sign Ordinance Amendment
The City Planner reviewed the proposed amendment. He advised that the entire sign
ordinance will be considered for revision during the Zoning Ordinance rewrite.
Staff felt that this proposed amendment would provide a more timely resolution to a
current problem. Members of the Council concurred that the sign ordinance needed a full
review and it was noted that many businesses in the community are currently exceeding
the maximum footage.
Motion by Jolly, second by Szurek to waive the reading of the ordinance there being
ample copies available for the public. Roll call: Szurek, Jolly, Peterson - aye Wyckoff-
nay Council was advised that if the waiver motion is not approved unanimously the
ordinance must be read in its entirety.
Motion by Jolly, second by Szurek to reconsider the motion to waive the reading of the
ordinance. Roll call: All ayes
Motion by Jolly, second by Szurek to waive the reading of the ordinance there being
ample copies available for the public. Roll call: All ayes
ORDINANCE NO. 1383
BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY CODE OF
1977, PERTAINING TO ZONING AMENDMENTS
The City of Columbia Heights does ordain:
Section 1: Section 9,117A(10)(b)(i) of Ordinance No. 853, City Code of 1977, which
currently reads as follows, to wit:
9.117A(10)(b)(i)
Any number of wall signs on any side of a building not to exceed
one hundred (100) square feet of total surface area for wall sign
surfaces and limited to one surface per sign. Provided, however,
that if a parcel of land on which a building is located directly abuts
residentially zoned land, no wall sign may be located on the side
of the building that faces the abutting residential parcel.
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 18
Shall be repealed and hereafter be amended to read as follows:
9.117A(10)(b)(i)
Any number of wall signs on any side of a building not to exceed
one hundred (100) two hundred (200) square feet of total surface
area for all wall sign surfaces and limited to one surface per sign.
Provided, however, that if a parcel on which a building is located
directly abuts residentially zoned land, no wall sign may be located
on the side of the building that faces the abutting residential
parcel.
Section 2:
This ordinance shall be in full force and effect from and after thirty (30)
days after its passage.
First Reading:
February 22, 1999
Motion by Jolly, second by Szurek to schedule the public hearing and second reading of
Ordinance No. 1383 for March 8, 1999 at approximately 7:00 p.m. and that this
ordinance be reviewed by the Planning and Zoning Commission at its March 2, 1999
Meeting. Roll call: Szurek, Jolly, Peterson - aye Wyckoff- nay
Motion by Jolly, second by Szurek to direct staff to initiate proceedings for a
comprehensive review of Section 9,117A of the Zoning Ordinance which is the section
of the Ordinance regulating signs. Roll call: All ayes
A resident requested a copy of the entire Sign Ordinance. He was advised by the City
Attorney of the procedure for accommodating this request.
B. Bid Considerations
None
C. Other Business
1) Water Meter Replacement
The Finance Director presented the information regarding this project. It has been under
consideration by Council since June 1996. Water meters in residential properties are the
units being considered for replacement. Discussion continued with all interested parties
regarding the specifics of the project. The method for paying the associated costs was
reviewed as was the current loss of revenues from aged water meters.
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 19
Motion by Jolly, second by Szurek to authorize the Mayor and City Manager to enter into
an agreement with U.S. Filter for the installation of residential radio-read water meters
throughout the City based on their proposal of April 30, 1996, at a cost of $1,242,500 for
the installation of 5,500 radio-read meters, with $600,000 in funding for this project
coming from a bond sale, and the remaining costs coming from the sewer construction
fund and the refuse utility fund.
2) Resolution No. 99-17 Being a Resolution Setting Rates on Sewage Disposal and Water
Supply in the City of Columbia Heights
The Finance Director advised if these rates are approved they will only be the third
increase since 1981. The last rate increase was in 1995. The meter surcharge is included in
the resolution.
Motion by Wyckoff, second by Jolly to waive the reading of the resolution there being
ample copies available for the public. Roll call: All ayes
RESOLUTION NO. 99-17
SETTING RATES ON SEWAGE DISPOSAL AND WATER SUPPLY IN
THE CITY OF COLUMBIA HEIGHTS
BE IT HEREBY RESOLVED by the City Council of the City of Columbia Heights, that:
In accordance with the operating costs and rates to be paid by the City of Columbia
Heights to the Metropolitan Council Environmental Services and the Minneapolis Water
Department, the following rates shall be put into effect as of April 1, 1999, on all billings
rendered thereafter:
(c) Water Supply Rates:
The water rate shall be a minimum of $14.40 per quarter on a quarterly basis per
family unit for the first 600 cubic feet of water or less. The rate shall be $1.55 per
100 cubic feet used for all water used beyond the 600 cubic feet minimum.
(d) Sewer Disposal Rates:
The minimum sewer disposal charge shall be $33.00 per quarter on a quarterly
basis per family unit for the first 2,200 cubic feet of water usage per quarter; and
$1.50 per 100 cubic feet thereafter to a maximum charge of $45.00 per quarter.
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 20
The rate for commercial/industrial users shall be based on water consumption at
$1.50 per 100 cubic feet.
Any residential service hooded up to the Columbia Heights sewer system, that is
not also hooked up the Columbia Heights water distribution system, shall pay a flat
quarterly sewer fee equal to the maximum quarterly sewer disposal charge in effect
at the time of a billing is rendered; unless a water meter reading is provided
recording a lower reading than 3,000 cubic feet in a quarter for which the current
rate down to the minimum shall apply.
(e) Senior Citizen Rate:
For eligible senior citizens, the following minimum rates will be used. All usage
over the minimum will be billed at the above rates.
Minimum Sewage Disposal
Minimum Water Use
$16.22/quarter
$ 9.32/quarter
4. Water Meter Surcharge
To cover a portion of the cost to replace all residential water meters there will be a
$1.00 per month or $3.00 per quarter surcharge added to all residential utility bills
until such time as all bonds for the meter replacement project are paid in full.
BE IT FURTHER RESOLVED that all foregoing rates are made in order to meet the
additional cost to the City of Columbia Heights for these respective services.
Passed this 22nd day of February, 1999.
Offered by: Wyckoff
Seconded by: Jolly
Roll call: All ayes
Jo-Anne Student, Council Secretary
Mayor Gary L. Peterson
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 21
3) TIF Special Legislation
Motion by Szurek, second by Wyckoffto authorize and direct staff to pursue special
legislation as drafted by Kennedy and Graven, Chartered, to apply for available State TIF
grant reimbursements and recommend for City Council consideration the refunding of
outstanding bond issue(s). Roll call: All ayes
4) Replacement of Athey Mobil Street Sweeper, Unit #0001
Motion by Jolly, second by Szurek to approve the acquisition of one new 3-wheel Elgin
Pelican Street Sweeper from the State of Minnesota Purchasing Contract with a cost not
to exceed $85,615, excluding sales tax, which includes a trade in of Unit #001 at $26,500.
Funds are appropriated in Capital Equipment Replacement fund 603-49510-5150. Roll
call: All ayes
8. ADMINISTRATIVE REPORTS
A. Report of the City Manager
The City Manager advised of a meeting hosted by the City of Minneapolis to addresss the
status of the Hi-Lo Motel on 37th and Central Avenues. The meeting is scheduled for
February 22nd .
B. Report of the City Attorney
The City Attorney had nothing to report at this time.
9. GENERAL COUNCIL COMMUNICATIONS
A. Minutes of Boards and Commissions
Minutes of the following meetings were included in the agenda packet: February 2, 1999
Planning and Zoning Commission; February 2, 1999 Library Board of Trustees; January
19, 1999 EDA Regular Meeting and the February 9, 1999 EDA Special Meeting.
No Council action was required on these minutes.
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 22
10. CITIZENS FORUM TO ADDRESS THE COUNCIL ON MATTERS NOT ON AGENDA
At its February 8, 1999 regular meeting, the Council granted permission to representatives
of the Minneapolis Water Works to discharge specifically identified firearms within the
boundaries of the City of Columbia Heights. This permission was in conjunction with a
permit being issued by the Minnesota Department of Natural Resources relative to deer
removal from the Water Works site.
At the February 8, 1999 Council meeting, representatives of the DNR, the Minneapolis
Water Works and a graduate student with an interest in this deer population addressed the
issue of possible water contamination.
At this meeting a number of residents and citizens from other communities gave their
opinions on this issue. Many of them requested that the Council revisit the matter as they
felt misleading and inaccurate information was given at the February 8th meeting.
It was recommended by a Councilmember that people who want to explore an alternative
solution to the deer situation be prepared to serve on a committee for this purpose and
find sources of funding for any associated costs related to a solution.
The City Attorney gave direction addressing how the Council could revisit their action
from the last Council Meeting. Also, in response to an inquiry, he advised that the DNR
and the Minneapolis Water Works did not need permission from Columbia Heights to
solve this problem but had attended the last Council meeting as a courtesy.
Mayor Peterson acknowledged that the Council may have been misled but suggested that
any further action is up to a Citizens Committee.
Motion by Peterson, second by Szurek to reconsider the Council's motion approved at
the February 8, 1999 Council Meeting regarding deer population control. Roll call:
Szurek, Peterson, Wyckoff- aye Jolly - nay
Motion by Peterson, second by Szurek to deny permission to authorize representatives of
the Minneapolis Water Works to discharge the following firearms within the City pursuant
to a permit issued by the Department of Natural Resources to remove deer from the Water
Works grounds so as to minimize health risks to the water supply. Said authorization was
to be effective immediately and continue in effect until April 30, 1999; captive bolt gun
and .22 caliber tranquilizer gun. Roll call: Szurek, Wyckoff, Peterson - aye Jolly -
nay
REGULAR COUNCIL MEET1NG
FEBRUARY 22, 1999
PAGE 23
11. ADJOURNMENT
Motion by Szurek, second by Jolly to adjourn the meeting at 9:45 p.m. Roll call: All ayes
Respectfully submitted,
Jo-Anne Student, Council Secretary