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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