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HomeMy WebLinkAboutJune 03,1998 Work SessionCiTY OF COLUMBIA HEIGHTS (1") Joseph Sturdevant Councilmembers 590 40TH AVENUE: N.E., COLUMBIA HEIGHTS, MN 55421-3878 (6I 2) 78;2-2800 TDD 782-2806Don~M (7. Jolly Marlaine Szurek Gary L. Peterson Robert W. Ruettimann Cib~ Manager Walt Fehst ADMINISTRATION NOTICE OF COUNCIL WORK SESSION Notice is hereby given that a Council Work Session is to be held in the CITY OF COL UMBIA HEIGHTS as follows: Meeting of' Date of 3/leeting: Time of Meeting: Location of Meeting: CITY CO UNCIL/CITY STAFF WEDNESDAY, dUNE 3, 1998. 7.'00 P.M. CITY HALL CONFERENCE ROOM 2. 3. 4. Water Meter Replacement Project Bonding for City Projects Social Security Withholding on Volunteer Firefighter's pay Extension of Mayor Term of Office - Charter Commission The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights'services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is tnade at least 96 hours in advance. Please call the City Council Secretary at 782-2800, Extension 209, To make arrangements. (TDD/782-2806 for deaf only) THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER CiTY OF COLUMBIA HEIGHTS ([--) Mayor Joseph Sturdevant Councilmembers 590 40TH AVENUE N.E., COLUMBIA HEIGHTS, MN ~5421-3878 (612.) 78~-2800 TDD 78~-2806Donald G. Jolly Marlaine Szurek Gary L. Peterson Robert YK. Ruettimann City Manager Walt Fehst ADMINISTRATION NOTICE OF COUNCIL WORK SESSION Notice is hereby given that a Council Work Session is to be held in the CITY OF COLUMBIA HEIGHTS as follows: Meeting of: Date of Meeting: Time of Meeting: Location of Meeting: CITY COUNCIL~CITY STAFF WEDNESDAY, JUNE 3, 1998 7:00 P.M. CITY HALL CONFERENCE ROOM 1. Water Meter Replacement Project ~ c~/k.c~r~c/_,,~ " 2. Bonding for City Projects~~r. tt~ ~/~O~,.~.~_t~/~:f~-~~ 3. SocialSecuri~ Withholdingon VolunteerFirefighter~pay,~~~~ ~ 4. Extension of Mayor Term 9f~ce - Charter Commission The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at 782-2800, Extension 209, To make arrangements. (TDD/782-2806 for deaf only) THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY iN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER CITY OF COLUMBIA HEIGHTS DATE: MAY 29,1998 TO: FROM: WALT FEHST CITY MANAGER~~ WILLIAM ELRIT FINANCE DIRECTOR WATER METER REPLACEMENT PROJECT The City received proposals for an automated meter replacement system on April 30, 1996. These proposals were reviewed by staff and the City Council, and the decision was made to go with WaterPro, utilizing Sensus meters, as WaterPro had provided the most cost effective, efficient proposal. Based on this decision, the City Council approved installing 100 test meters. These were installed, and for over a year these meters have been read using the automated handheld reading unit. At the present time the system is operating very efficiently and effectively on these 100 meters. Subsequently, it is staff's recommendation to proceed with a complete water meter replacement throughout the City of Columbia Heights. I would like to see this item placed on the upcoming City Council work session for discussion purposes. I have attached a copy of my memo fi:om June 3, 1996 outlining some financing alternatives. In addition, I will have more information available for handouts at the actual work session. If there is anything additional you would like on this subject, please let me know. WE:dn 9805292 Attachment .CITY OF COLUMBIA HEIGHTS DATE: .~LTNE 3, 1996 TO: FROM: MAYOR JOSEPH STURDEVENT COUNCILMEMBERS DONALD JOLLY MEG JONES GARY PETERSON ROBERT RUETIIMANN %WILLIAM ELRITE FINANCE DIRECTOR FINANCING ALTERNATIVES FOR THE NEW METER SYSTEM The attached schedule shows some alternatives for financing the cost of the meter system, with an alternative for the entire cost of the new meter system being charged to the customer, the entire cost being picked up by the City, and a proration of the cost between the City and the customer. All alternatives are based on the City providing the up-front cash from the water, sewer and refuse funds to finance the meter system. The second alternative is to finance the system through lease-purchase. Attached is an excerpt from one proposal on leasing alternatives. The lease rates in this alternative are very favorable and would be a very viable alternative for the up-front funding of the new meter system. WE:dn 9606032 City of Columbia Heights Water Meter Read System Cost Information for the Work Session of June 3, 1996 General Information Approximate number of meters Estimated cost of a radio read system Average meter cost installed Water & Sewer 2 yr average annual revenue Water Fund Sewer Fund Water & Sewer increase in revenue due to more accurate meters Projected on a minimal 5% increase in accuracy Water Fund Sewer Fund Elimination of meter reader position 5,500 1,275,500 231.91 1,069,458 999,348 53,473 49,967 26,491 Funds Available Water Sewer Refuse 229,000 926,580 398,666 Financing alternatives Alternative 1 Charge the customer for l~e full cost of new meters One time charge Monthly charge (0% interest) over 5 years Monthly charge (0% interest) over 10 years 231.91 3.87 1.93 Alternative 2 City picks up the entire cost Total Cash cost 5 year savings Increased revenue due to more accurate meters Elimination of meter reader position 517,202 149,078 1,275,500 Total cost savings 666,280 Alternative 3 Cost Sharing 50% city 50% customer Customer Charge One time charge Monthly charge (0% interest) over 5 years Monthly charge (0% interest) over 10 years City cash cost Increased revenue due to more accurate meters 637,750 637,750 517,202 115.95 1.93 0.97 Elimination of meter reader position 149,078 CITY OF COLUMBIA HEIGHTS DATE: MAY 29, 1998 TO: FROM: WALT FEHST CITY MANAGER WILLIAM ELRITE FINANCE DIRECTOR BONDING FOR CITY PROJECTS Over the past several years, the City has done internal borrowing from various funds to finance City projects, starting with Sheffield and going through Public Works improvements projects for 1998, including an $800,000 internal loan to the TIF debt service fund to make TIF bond payments. At the present time, Public Works has several projects slated for the next three years. In addition, we have the water meter replacement project. It is not feasible to finance all of these projects with internal loans, therefore, the best alternative is formal bonding. I recommend that this item be placed on the next City Council work session for discussion and possible action at the following City Council meeting. Kevin Hansen and I will have handouts available at the work session on some of the costs, projections, and alternatives. If you would like any additional information at this time, please let me know. WE:dn 9805291 CITY OF COLUMBIA HEIGHTS DATE: APRIL 20, 1998 TO: FROM: WALT FEHST CITY MANAGER WILLIAM ELRITE t,,/ FINANCE DIRECTOR SOCIAL SECURITY WITHHOLDING ON VOLUNTER FIREFIGHTERS' PAY Bob Surbrook of the volunteer firefighters has been working on this issue for some time. Under IRS regulations it appears that volunteer firefighters' fire call pay may be exempt from social security withholding. ' ' ' I [_.l ~[ III I [ I. I I I --' [__[ [_ [ [ . I _ I]' l1 _ I , I I I I [_[ [ .. Based on that, I am requesting for Mr. Surbrook that this be placed on a work session agenda. In essence, what he is requesting is City Council's approval to not withhold Social Security on fire call pay. Although this is the case in several fire departments, it is slightly unclear in IRS regulations as to whether or not this is appropriate. Subsequently, as there is some remote possibility that down the road the IRS could come back on the City for not withholding Social Security, I feel that before this procedure is changed it should have City Council approval. If the decision is to not withhold Social Security, this will affect Social Security benefits to firefighters if they are disabled or when they retire. As the decision on withholding covers all volunteer firefighters' fire pay, I would highly suggest it be voted on by the firefighters in addition to the City Council to determine if they do or do not want this benefit. On behalf of Bob Surbrook and on behalf of the volunteer firefighters, I am requesting that this item be placed on a Council work session agenda. WE:dn 9804203 cc: Bob Surbrook ,:' CI Y OF COLUMBIA--HEIGHTS (!-) $90 AOTH AVENUE N.E., COLUMBIA HEIGHTS, MN 55,421-3878 (612) 782-2800 TDD 782-2806 April 14, 199'7 Mr. David Mol Tautges, Redpath & Co., Ltd. 4810 White Bear Parkway White Bear Lake, Minnesota 55110 Dear Dave: Attached is the information we discussed last week in relationship to the Volunteer Fire Department's request that we no longer withhold Social Security taxes from firefighter emergency pay. Included in this packet is a letter from your fn"m dated December 7, 1992, to Margaret Egan of the City of New Brighton. At the present time I would like your opinion on whether or not you feel the City of Columbia Heights should apply for a refund of the Social Security taxes withheld on our volunteer ftrefighter's emergency pa),, and, if the City should discontinue deducting Social Security taxes on that pay. I recall reviewing this when the law changed, and the reason that we withheld Social Security taxes at that time was due to the definition and amount of pay volunteer firefigh~ers are paid for emergency service. It was felt that the amount we were paying our volumeers exceeded a nominal amount, and subsequently we withheld Social Security taxes. If you would like an)' additional information on this, please let me know, otherwise I would like to fred something out in the next few weeks as to what your opinion is and what you feel we should do. I am also interested in finding out about how the other cities you audit handle this, i.e., how man)' withhold Social Security taxes on firefighter's emergency pay or fire call pa>,. Thank you for your attention to this matter. Sincerely, Elrite, Finance Director 97041697 WJE:ace 'rile CITY OF COLUMBIA HEIGHTS DOEE~ NOT DISCRIMINATE ON THE BA~,tc' OF' DL~ABIL1TY iN EMPLOYNtEN'i' OR THE PROVISION OF :DERVICEE, EQUAL OPPORTUNITY EMPLOYER Coon ~a~ids, MN 55433 Dear ~r. con~ti~uent, Hr. Robert E. Me~he~lle0 Secretary ag ~o NAnneso~a State F£:e Department Association, has beam £orwa=~e~ ~f'i~ ~r v~y. ~r. ~etherille =o~ues~ clarification o! tho Section 3121(b)(?)(F) o~ the Xn~e=nal Revenue Co~e generally provldes tha~, a~er Oul¥ 1, 1991, ~ho service ~ an employee o~ system o~ ~he employer ~ll be consi~arad 'employment' for FICA tax purposes. Section 31il(u)(2) o~ ~e Co~e generally provl~es tha~ service as an employee o~ a State ~r lo~a! ~evarnmen~ la the FICA if the employee ~aa hAra~ on or &f~ar April 1, 1986. case. Un,er aec~£en ~121(~)(?)(£)(iA~), ~e ~e=m "employment" ~oes ~o~ !·elude services pe~f~rme~ by an tn~tv~ual aa an employee o~ a S~i~o or local governmen~ 1£ ~he eervlcef are 3121(u)(2){S)(ll)~II=) con,alms an &0en=tcal ~rov~a£on for purposes of the me~icare per,ion of FXCA tax. Revenue Ruling B6-35, laBS-2 C.B. 343, prey/Oas guidelines, in question and answer ~orm, concerning section 3121(u)(2) Code. Q&A 3 specifically a~raasea ~he Asoue of volunteer ~iref£]hters. The ~a¢~s I~sta~ indicate ~hat I townah~p hal £~ref£ghters, certain ~oa~den~s c£ tie ~ow~sn~p have volunteered their services &n casa o£ emergency. The ~O~AShlp keeps a =eocr~ of ~ho rea/donna who reepon~ to ~he emargen¢~ calls periodically pays ~ha volunteers a nominal amoun~ ~or each emergency for which tbs volunteer performed services. The talin9 hol~s that the seniors pe=fo~e~ bM v~l~mor ~treflgh~ers are considered to be perfc~ed off a temporary boots iff case emergency and are theryfo=e not subject of the F/CA tax. . -2- The HonorabLe Oerry Slkor~'~A some other bme~e the wages received may be subject to FICA For example, the Fecoipt of either an annual aC~pend or 'standby" paM maM result An FICA tax liability. We hope this &nformatlon is helpful to you an~ your constituent. ~f you have any ~ueetione Or =e~uire ~urther 566-4747 (n~t · ~oll-£xee number). Rev. RUl. B~-36 Stnoerely yours, NAN~'~ 3. MAKK$ ActAn~ Assistant C~ie~ Counsel Office of ~he Associate Chief COunsel Exempt Or~anizetiont) t:ITY N~W ~t:~' 7, 1992 TEL:$3820Zl,~ lqug 17'95 $:2~1 No.002 P.L ATTACHMENT A - - N~n~n,~ 55112 ~02-6~-6050), ~e s~:es ongoing If you &eide not to wir. h.hold ~ se:~r'in/~xx= ~ pe:em?.ats for "e=zrgcn~y nas", thc l. nmma.t Rev~ut S~rviee may ~ssess ~ s~u:4ty te~es, !:,e:aJ:iea and intm-g~ ff they ~e not to 'officially" follow thc position indig~t~d by Ms. $~bbai'~ 'd. We w~l ke~p you infor~t..4 of ~y ¢l-,znges in ~ ~ Ii' you hmv~ any querdons r~garcli~g fo~gcC, ng, feel free to ~onmct ~ S~y, TAIYI'OE$, I~T. DPATH & CO., LTD. ?~',l: 41-600,S406 CYt: ~ty 1, 19~I, ~ City o£N~' ~iglaga; I~ vat~,~,lcti~ ~;A (L2,0%) nml lvigd.i~ (1.4,~4) If y~a hsv~ ~y qtmsgi:~ ~miag t, his, y~ may gim¢~ ~ ~ ~ A. ~,$sa, ~i,~a~ Direct, or, c ~l~2lO1. COD]NO: 101-30000-.?$05 ~44~6.10 lOI-2100g-O000 $4.4~6.80 C-~ :FDFICA~ 803 FNth Avenue NW · Nsw l~ri;hlon, MN 65'1'1~ · (61.~) 63~-153~ ~?Y N~ ~I~NTDN TEL:65820~ Ru9 17'95 8:2~ No.002 P.O. the cYty taft for you July 26, 1995 FICA for Volunteer Firefighters It's no rumor.., we don't eolleet ]fICA on firefighter pay for emergency services. 'llaese services arc consifer~d exempt bec, use of their "temporary" nature. To protect both thc empioye,- and thc City we rr. alIy resea.~hefl this ¢tatus before permitting the excretion. in.i'orma;ion obtained from om' auditor and the 1T(S helped us ~ d~-~'fine ~e ~ exemption was allowablu. Atta 'ehmenta A anf B contain these materials. '/'~flditionally, refunds hav~ been obtained from the IKS for FICA pa)ma=ts that were mrna:lc betwce'n 1992 ~nfl 19~4. The refunds were for both the City's share re.nfl the employees' v, ithholflings. Attachment C c~ntains a letter requesting fl~e refund for 19~4 pa)men,,. At the present time. FICA continues t~ bt '~6thheld for drill pay, training, anf mi~llaneous duties. Aisc, thc monthly wage for o~;e."s of th-. Fire Department is subject to FICA.. I h~p~ that the enclosed mater/als ~re helplhl. If you have other ~juestion& plebe contact me at 63 g.2102 or Part), lsaacson at 63 $-2106. Sine:ce]y, Margar~ A, Egan Director FAX: 5 pages ATTN: Don R, mad Eel B, cc: League oflvfN Cities - this might be a good idea for an update article. S Park n e unds View NT February 3, 1997 CERTIFIED MAIL RETURN RECEIPT REQUESTED Internal Revenue Service Kansas City, MO 64999 RE: AMENDED 94'1's and W.2c's for 1995 Spring Lake Park Fire Dept., Inc. 1710 Highway 10 Spring Lake Park, MN 55432 Federal ID ~-41-6038888 Gentlemen: The organization listed above is filing the enclosed amended payroll tax returns for the year 1995 to claim a refund for all FICA and Medicare taxes withheld and paid on compensation attributable to emergency fire runs. IRC Section 3121(b)(7)(F)(iii) specifically exempts payments to individuals serving on a temporary basis in the case of fire, storm, snow, earthquakes, flood or similar emergency. The amended FICA taxable compensation includes all other types of pay except those emergency runs. Attached is a letter from Nancy J. Marks, Acting Assistant Chief Counsel from the Internal Revenue Service, supporting this position. The refund claim of $12,960.57 includes both the Department's contribution and the volunteers' contributions. The volunteers' withholding will be refunded to them when received by us. If you have any questions concerning this claim, please direct them to me or to my assistant, Janet Schuldt, at (612) 786-4436. Sincerely, NZ4s Enclosures 1'710 I-liszhway I0 Sprin~ L~ke Park. MN 5.5-132 SPRING LAKE PARK FIRE DEPT., INC. Nyle Zikmund Fire Chief Phone: (~12-T8{)--1-~3(~ l~ax: 61_~-'78(>-gf~lT Emergency: CTl 1 Supporting Statement To Correct Information [ ldo Not File Separately I Page I, &t~Ch tO the emplo~ent ~x tatum on ~iCh adjus~en~ am ~de, No. PA~K FI~X DZPT INC & ""~' ~ Po~ ~1 ~ Fo~ 941-SS ~ Form 9~5 ~12-786-~36 · ~ Fo~m 9~1-M ~ Fo~ 94~ ' Signature and Ce~fi~ation ~ou M ST compsete this pa~ for the IRS to p~cess your adjustments for' i certify that Forms W-2c, Statement of Corrected Income and Tax ~unts, have been filecl (as necessary) with the Socml Securrty Aclministraticn, ancl that (CheCk appropriate boxes): ~ All overcotlectecl income taxes for the current catendar year and all social security an~ Medicare taxes for the current and pnor calendar years have been repaic~ to employees. For claims of overcolleCtecl employee social security an~ Me0~care taxes in earlier years, a written statement has been ot~tainecl from each employee stating t~at the employee has not cinimac an~ will no: Claim rerun~, or cred:t of the amount of the overcollection. ~'~ 4 affectecl employees have given their wrfften consent tO the allowance of this Credit Or refund. For claims of overcollected employee social security anti Meclicare taxes in earlier years, a whiten statement has I:~een ot~tainecl from each employee stating that the employee has not cla~mec~ anti will not claim refund or CreCht of the amount of the overcollection. ~ The social security tax anti Medicare tax ac~tustments represent the employer's share only. An attempt was made to locate the employee(s) affectecL but the affectecl employee(s) coulci not I~e iocatec~ or will not comply wdh the certd~cai~on recluirements. ~] None of this refund or creclit was withhelcl from employee wages. - ove~ayments.) 2/3/97 , Net withheld income tax/backup withholding adjustment. If more than one page, enter total o~ all columns (d) on first page only. Enter here anti on the al~pmpriate line of the return with which this {or~-, is filed ........... : .................. I~ ~ Social Security Tax Adjustment (Use the tax rate in effect during the period(s) correctecl. You must also complete Part IV for return periods be~innin~ after 12/31/90.) gNE 1995 I[PTEHBE~, 995 DECEHBEI~ 1995 "Totats.--tf more than 'one page, enter totals on first page only. 1, lb) $ccml Secunty T~ Wa~et ~rev~uS~y ~tlustment 126,176.57 311,466.99 10,503.99 ) 6 Net social security ta,x acljustment, if more t~an one'page, enter total o( ALL columns (f) on first page only. Enter here and or, tl=e appropriate line of the return with which this form is flied . . ~ 7 Net wage adjustment. If more than one page, enter the total of .~_LLL lines 7 on first page only. If 5(c) Cat. No. 112420 is Smaller than 5(~), enter Cliflerence in parentheses .............. Net tip ac]ustment. If more than one page, enter tl~e total of ALL lines 8 on first page only. If $(e) is smaller than 5(Cl), enter difference i~ Datentt~eses .............. , For PapeNvo~ Recluction Act Notice, see I~ge 3. 10, .503.99 6 [8&,70g.58) 7 8 ¢-C-,--'- ~41C (Rev= 1 4 Medicare Tax Adjustment (Only use thts part for return periods I:)egmning after 12/31/90. Government employers please see Exception in instructions on page 3.) (I) (~) P~ ¢orric~e~ (Oua~wh/~s, wa~ I~ T~ ~ ]995 ~ 111~4Kfl. ~ SEPTE~ER 1995 I 8~.A62f22 426 ~ 276.57 Net Medicare mx a~justme~t. If more tha~ one page, emer total of ALL columns (~) on fi~t page o~ly. E~ter here an~ o~ the ap~priate line of t~ retu~ with which this form is file~ .... P Net wage an~ tt~ a~lustment. If more than one page, enter t~e totals for ~L pages. If 5(c) is s~ller than 5(~}. enter ~iflerence in pare~thes~s ................... ~ i'J Explanation of Adjustments Totals.--If more than one page. enter totals on firs! page only Tax (606.3~) (734,52) (2-,456.58) I ~ I (2,A56.58) (%4,709.58) SEE ATTACHED COVEI~ LETTER SPRING LAKE PARK FIRE DEPARTMENT, INC. CONSEI~I' TO APPLICATION FOR REFUND OF SOCIAL SECURITY TAXES ~ HEREB~ CONSEN~ TO APPLICATION BY THE SPR~NO ~E P~ F~ DEP~NT, ZNC. FOR ~F~D OF SOC~ SECURITY T~ES T~T I ~ PAID ON ~R~ENCY FI~ R~S FOR ~.~. ~ BZ~EN 1993 ~D 1995. I ~DERST~D T~T THE ~F~DED ~O~TS WI~ BE PAID TO ~ UPON THE DEP~NT'S ~CEIPT OF SUCH ~F~D. ~ ~SO AGUE T~T I ~ NOT ~D WI~ NOT ~E A SEP~TE C~IM FOR ~F~D FOR THESE S~ T~ES. SIGNED DATE: 19~5 FIR.E CALL WAGES 1995 QUART£RLY FIRE CALLWAG£$ 1995 ~IE '" 71.55 0.00 0.00 0.00 71.~5 FCYVAGEg$.XL$ Page ] 12/14'9612:11 PM ~EDPATH & CO., LTD. July 29, 1997 William Elrite Finance Director City of Columbia Heights 590 40th Avenue Northeast Columbia Heights, MN 55421 Re: Volunteer Firefighter Emergency Pay Dear Bill: Dave Mol has asked me to respond to your letter of April 14, 1997 regarding emergency pay for volunteer firefighters. Over the past several years there has been much discussion surrounding the classification of payments to volunteer firefighters who also receive pay for routine training and other duties. Internal Revenue Code Section 3121(b)(7)(F)(iii) provides an exception to the social securiD' tax withholding requirement for employees serving on a temporary basis in case of fire, storm, snow, earthquake, flood or similar emergency. A similar exemption for federal unemplo~znent taxes exists under IRC Section 3309(b)(3)(D). As you have seen from our letter dated December 7, 1992 to Margaret Egan at the City of New Brighton, the Internal Revenue Service's unwritten opinion appears to be that the wages paid for emergency fire calls do meet the exception under IRC Sections 3121 (b)(7)(F)(iii) and 3309(b)(3)(D). The treasury department ruling that was issued to Jerry Sikorski in 1992, ~though he!pSal, is not bulletproof. Internal Revenue Service rulings are only applicable to specific cases. Therefore, the service could take a position contrary to this private letter ruling based on slightly different facts. That being said, the fact remains other cities and volunteer fire departments have been receiving refunds of the social security and/or federal unemployment taxes withheld or paid based on emergency fn'e nm wages or stipends. The statute of limitations on payroll tax returns filed on or before April 15 following the tax year are deemed to have been filed on April 15. Consequently, as of today the City of Columbia Heights would have three years of potential refunds of social security and medicare taxes. Before filing for any refunds, it would be advisable to review any other outstanding payroll tax issues from those years w/th which the City may have tax exposure. Filing of amended returns w.'.j,:Lt extend the statute of limitations on these tax periods. % ?.,,,,- . 45~C ¢,'n~Ie Bear Parkway · 'COrdite Bear Lake, M~nnesola 55110 · 612,'426-7000 * FAX,'426-5004 · Member of HLB Internationa, City of Columbia Heights .............. July 29, 1997 Page 2 If you are concerned with potential IRS attack on the refund claims subsequent to the refunds, you may wish to escrow the refunded taxes for a period of time as insurance against such claims. We are currently involved in an IRS audit of wages paid to volunteer firefighters with slightly different facts (i.e. they are a private non-profit fire department). We will keep you updated as to the outcome of said audit. If you have other questions or require clarification, please call us. Sincerely, TAUTGES, REDPATH & CO., LTD. Paul W. Longsdoff, (7~A ? PWL/tle LOANING FUND Parking Ramp HRA Housing Mortgage Refuse Liquor Sewer Construction CITY OF COLUMBIA HEIGHTS INTERFUND LOANS 31-Dec-97 AMOUNT 408,027.00 11,711.89 446,352.00 660,000.00 169,000.00 728,916.00 BORROWING F Debt Se~ce Rental Housing ~Debt Service Sheffield Sheffield Total 2,424,006.89 CITY OF COLUMBIA HEIGHTS TYPE OF CONSTRUCTION Full Reconstruction Partial Reconstruction Mill and Overlay Utilities Storm Sewer Water Sanitary Sewer STREET / ALLEY IMPROVEMENTS Engineering Bonding Summary Actual/Estimated Project Costs ZONE 3 (ACTUAL) CONSTRUCTION COST $245,100.00 $233,500.00 $270,400.00 $65,400.00 $244,320.00 $12,100.00 AMOUNT ASSESSED $143,090.00 $156,540.00 $230,460.00 TYPE OF CONSTRUCTION '1999 IMPROVEMENTS (estimated) CONSTRUCTION COST Alleys Seal Coat Bituminous Alleys Pave Unimproved Alleys $105,000.00 $178,000.00 AMOUNT ASSESSED $105,000.00 $89,000.00 2000 IMPROVEMENTS (ZONE 4) TYPE OF CONSTRUCTION Full Reconstruction Partial Reconstruction Mill and Overlay Utilities Storm Sewer Water Sanitary Sewer (estimated) CONSTRUCTION COST $85,000.00 $55,000.00 $350,000.00 $315,000.00 $150,000.00 $25,000.00 AMOUNT ASSESSED $49,620.00 $36,870.00 $298,300.00 Construction costs are best estimates available without physically rating the streets/alleys. No retaining wall costs are included with the alley construction costs. PW1/Eng123/98Bonding/98street CITY OF COLUMBIA HEIGHTS STORMWATER IMPROVEMENTS Engineering Bonding Summary Estimated Project Costs LOCATION CONSTRUCTION Engineering ! Cost Admin Prior Eng to Date (Scoping Study) CONSULTANT AREAS 1) Corporate Limit Area 2) McKinley Street NE / 40th Avenue 3) Monroe Street NE & 49-1/2 Avenue NE 4) Jackson Pond et al a. Jackson Pond b. 4500 Block of Washington Street c. 4300 Block of Washington Street d. 130742nd Avenue NE e. Tyler Place NE & 44th Avenue TOTAL ESTIMATED COST: $15,000 $3,000 $100,000 $20,000 $18,000 $3,600 $9,500 $1,900 $230,000 $46,000 $90,000 $18,000 $98,000 $19,600 $50,000 $10,000 $610,500 $122,100 $35,000 1. 4116 Cleveland $17,500 2. 1156 to 1206 Khyber Lane $25,500 3. 4201 2nd Street NE i~ ~-'/'~ ~~ '~ $4,500 4. Main Street & 2nd Street (38th to 39th) $3,500 5. 550 46th Avenue NE (Alley between 5th & 6th) $0 6. 4960 Fillmore Street $4,000 TOTAL ESTIMATED COST: $3,500 $5,1oo $900 $700 $0 $800 $55,000.00 $11,000.00 Source information is based upon the 1997 Scoping Study and 1998 Engineering Reports prepared by the consulting firm of BRA. PWllEng123/98Bondng198StormW. xls o.r o o City of Columbia Heights Radio Read Water Meters Approximate 10 Year Bonding Costs Net Interest Cost 4.61% Customer paying the full cost Customer paying one half the cost 10 Year Bond Interest ~% Total cost Annual cost Customers Annual cost per customer Quarterly Cost Monthly Cost 1,200,000600,000 446,594 223,297 1,646,594823,297 164,659 82,330 6,000 6,000 27.44 13.72 6.86 3.43 2.29 '/.'/4 Note: Approximate costs and projections for discussion purposes only City of C, olumbis Heights Utility Funds Peroid Ending 12/31/97 Prepared 04/3/98 Cash Balances 12/31/97 Water Fund Sewer Fund Refuse Fund Operating Fund 408,508 206,816 257,088 Capital Construction Fund 62,083 1,177,718 n/a Net operating Income Water Fund Sewer Fund Refuse Fund Operating Fund 1997 42,535 (26,659) 106,495 Operating Fund 1996 25,671 (51,835 69,625 Water Fund Sewer Fund Proposed General Rate Increase Per 100 cubic feet Current Rate 1.35 1.30 Average Bill Proposed Rate 1.55 1.50 Increase 0.20 0.20 Water Fund 32.10 36.10 4.00 Sewer Fund 28.60 33.00 4.40 Total 60.70 69.10 8.40 Last year, the Charter Commission reviewed the entire City Charter chapter by chapter and also discussed suggestions for any other charter changes. One issue that was decided to be further discussed was extending the terms of office for Mayor from two years to four years. This is found in Chapter 2, Section 7 of the City Charter. The Charter Commission discussed this item at various meetings over the past year. On April 16, 1998, the Charter Commission held its first reading of a charter change extending the terms of office for Mayor from two years to four years. On May 21, 1998, the Commission held its second reading of the proposed ordinance. reading was approved with a 8-1 vote. The The Charter Commission recommends this subject, in accordance with State Statutes Chapter 410.12, Subdivision 4,be placed on the ballot on the November 1998 General Election. RECOMMENDED MOTION: Move to direct the City Clerk to return to the City Council with language to have the issue of changing the term of office for Mayor from two to four years placed on the November 1998 General Election ballot. ORDINANCE NO. BEING AN ORDINANCE AMENDING CHAPTER 2, SECTION 7 OF THE CHARTER OF THE CITY OF COLUMBIA HEIGHTS PERTAINING TO FORM OF GOVERNMENT The City of Columbia Heights does ordain: Section 1' Chapter 2, Section 7, of the Charter of the City of Columbia Heights which currently reads as follows, to wit: ELECTIVE OFFICES. The Council shall be composed of a mayor and four council members who shall be qualified electors, and who shall be elected at large in the manner hereinafter provided. The four council members shall serve for a term of four years and until their successors are elected and qualified, except that for council members elected in 1995, one council position term shall expire on the first Monday in January of 1999. The other council position term shall expire on the first Monday in January, 2001. The terms of any council members elected at a general election in 1998 will expire on the first Monday in January of 2003. Four council members elected in 1997, one council position term shall expire on the first Monday in January of 2001. The other council position term shall expire on the first Monday in January, 2003. The mayor shall serve for a term of two years and until a successor is elected and qualified, except that the term of the mayor elected in 1995 shall expire on the first Monday in January 1999. Thereafter, the Mayor shall serve for a term of two years and until a successor is elected and qualified. The council shall be judge of the election of the mayor and council members. IS HEREWITH AMENDED TO READ AS FOLLOWS: ELECTIVE OFFICES. The Council shall be composed of a mayor and four council members who shall be qualified electors, and who shall be elected at large in the manner hereinafter provided. The four council members shall serve for a term of four years and until their successors are elected and qualified, except that for council members elected in 1995, one council position term shall expire on the first Monday in January of 1999. The other council position term shall expire on the first Monday in January, 2001. The terms of any council members elected at a general election in 1998 will expire on the first Monday in January of 2003. Four council members elected in 1997, one council position term shall expire on the first Monday in January of 2001. The other council position term shall expire on the first Monday in January, 2003. The mayor shall serve for a term of two four years and until a successor is elected and qualifie , ~ .,,~L .,~ t~,,. ,~..,~ ,,,,~,,~ ~,~,.L~.., .~.~ shall cxpir~ ..., ,~ ~.~.,.~,~, is ~,~,~..~.. ~.~..~.. The council shall be u e of the election of the mayor and council members. Section 2: This Ordinance shall be in full force and effect from and after ninety (90) days after its passage. First Reading: Second Reading: Date of Passage: Offered By: Seconded By: Roll Call: Jo-Anne Student, Council Secretary Joseph Sturdevant, Mayor CITY COUNCIL LETTER Meeting of: June 8, 1998 AGENDA SECTION: ORIGINATING DEPARTMENT: CIT~ MANAGER'S NO: CITY MANAGER'S APPROVAL ITEM: ORDINANCE NO. REGARDING EXTENDING BY: CHARTER COMMISSION BY: THE TERM OF OFFICE FOR MAYOR DATE: 5-29-98 DATE: NO: Last year, the Charter Commission reviewed the entire City Charter chapter by chapter and also discussed suggestions for any other charter changes. One issue that was decided to be further discussed was extending the terms of office for Mayor from two years to four years. This is found in Chapter 2, Section 7 of the City Charter. The Charter Commission discussed this item at various meetings over the past year. On April 16, 1998, the Charter Commission held its first reading of a charter change extending the terms of office for Mayor from two years to four years. On May 21, 1998, the Commission held its second reading of the proposed ordinance. reading was approved with a 8-1 vote. The The Charter Commission recommends this subject, in accordance with State Statutes Chapter 410.12, Subdivision 4,be placed on the ballot on the November 1998 General Election. RECOMMENDED MOTION: Move to direct the City Clerk to return to the City Council with language to have the issue of changing the term of office for Mayor from two to four years placed on · the November 1998 General Election ballot. COUNCIL ACTION: ' CITY OF COLUMBia HEIGHTS PUBLIC LIBRARY 820 40TH AVENUE N.E., COLUmbia HEiGHTS~ MN 55421-3878 (612) 78222805 TDD 782-2806 Columbia Heights Public Library Board of Trustees Meeting 6/2/98 Board of Trustees Barbara Miller Chair Patdcia Sowada Vice-Chair Richard Hubbard Secretary Nancy Hoium Member at large Donald Jolly Council Representative M. Rebecca Loader Library Director "After years of dealing with roof leaks, loss of materials, and damage to the interior of the library building the Columbia Heights Public Library Board of Trustees strongly recommends the roof be replaced with a non-membrane roof, with said project being overseen by a roofing consultant such as A A C Roof Consulting Inc. This project needs to be completed on or before October 15, 1998." Motion by Sowada, seconded by Hubbard. Motion passed unanimously. Recommend that motion be submitted to the Columbia Heights City Council on next business day (6/3/98). THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER ~/04/i998 i0:i0 6127822804 COL HTS PUB LIB PAGE 02 CITY OF COLUMBIA HEIGHTS 820 40TH AVENUE N,E., COLUMmA HeiGHTS, MN 5542 ! -31~78 (612) 7B2-2805 TDD 782-2806 PUBLIC LIBRARY Bocci of Tru~tee~ Ba.'ta~'a Miller Ghalr Patrlcla Soweda Rk;hard Hubbard June 4, 1998 Nar~y Haan ~ J~ly M. Rebecca Loader The Libm.,-y has ex~denced roof probIems off ~d sinS[e-pJy ~mbr~e Benoit Company had mcoume o~ its ~pJacement. [~ ~988-89, ~ p~ of a City-wid= proj~t which inc[~d~ mm~eiHn~ ~d roofin~ f~ v~ious City b=i~djn~s, the roof was repined with a Firestone s[n~i=-pJ7 membr~= ~f. ~ City ~ha~d a [0-ye= w~ty ~ Firestone when it w~ ~nstaH~. The Firestone roof has had problems virtually from its installation, Numerous repairs were done at Firestone's instigation and through the contractor. Leaks have been consistent, Additional repairs have been done in the past year by various contractors to try to keep the Library from losing materials. These have not been successful. The Library Board recommends that the roof be replaced with a type of roof other than a single-ply membrane for the following reasons: 1, The potential for loss of materials 2. Health factors: mold from continual water leaks 3. Safety factors: the saturated ceiling tiles could fall 4. Appearance: the stains in the ceiling and on the floor The Library Board further recommends: 1. Retention of A.A.C. Roof Consulting, Inc. to prepare the specifications and oversee the project. 2. Completion of project before October 15, 1998. 3. Cost of project to be covered from General Buildings Fund, Cable, or Liquor l~evenues. E:'Q,,JA~. O~,~.ORTL~NiT~ EM~'LQYER 09:52 6127822804 COL HTS PUB LIB PAGE 02 CITY OF COLUMBIA HEIGHTS AVENUE N.g'., COLUMBIA H£gGHT$, MN 55421-3~17(t (6 ! 2) 7'52-2805 ¥OO 702-2806 Columbia Heights Public Library Board of Trustees Meeting 6t2/98 PUBLIC LIBRARY Board of Tl',.mteel Barbara Mlllw Chl/r Patrlcta Sowada Wee-Chair Rk~hard Htiobard Na, noy I.~um M. Rebecca Lo~J.~ "After years of dealing with roof leaks, loss of materials, and damage to the interior of the library building the Columbia Heights Public Library Board of Trustees strongly recommends the roof be replaced with a non-membrane roof, with said project being overseen by a roofing consultant such as A A C Roof Consulting Inc. This project needs to be completed on or before October 15, 1998." Motion by Sowada, seconded by Hubbard. Motion passed unanimously. Recommend that motion be submitted to the Columbia Heights City Council on next business day (613198).