1989-11-20 CC Minutes
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COUNCIL MINUTES
NOVEMBER 20, 1989
The regular meet1ng of the Albertville C1ty Council was called to
order by Mayor Gary Schwenzfeier Members present 1ncluded Jim
Krystosek, Donatus Vetsch, Don Cornel1us and Bob Braun Others present
1ncluded Maureen Andrews, Thor Meyer, Brad Farnham and Ken Lindsay.
The agenda for the even1ng's meet1ng was rev1ewed by the Council
A motion was made by Don Cornel1us and seconded by Jim Krystosek to
approve the agenda All were in favor and the motion carried
. The m1nutes of the November 13th Council meeting were not
available
the
and
that
more
The Council first dealt with the maintenance items Ken informed
Counc11 that he was having numerous problem with the Ford Tractor
was planning on taking it 1n for repair He noted to the Council
in the past few weeks the equipment had been down for repa1rs
than 1t was operating
There was some discussion regarding whether or not the City
should be considering the of purchase a d1fferent tractor w1th the
poss1b1lity of trading 1n the old tractor The counc11 was informed
that the tractor the City owns appears to be somewhere between a 1954
and a 1958, the buckets are worn, the equipment 1S leaking and that
cracks are beginning to appear throughout the vehicle
The Counc11 was informed that in checking w1th Long Lake Ford the
City would be able to trade 1n the old tractor and replace it w1th a
used 1976 model with a cab, new tires with flu1d and we1ghts, and
bucket at a price to be determined 1t the Council i5 interested There
was also some discussion regarding the availability of a 3 point hitch
plow plow wh1ch could be used in conjunction with the bucket for
cleanup after heavy snows, noting that this would allow one person to
do the work of two
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It was noted that th1s equipment had been owned by the City of
St Lou1s Park and was trade in as part of the1r equipment maintenance
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program It was suggested that ~t might be useful for someone to check
w~th St Louis Park to see ~f there had been any problems with the
tractor pr~or to ~ts being traded
No action was taken on the matter at this time but the matter was
brought up later in the meeting for addit~onal discussion
The next maintenance item discussed was the possibility of hiring
a youth to work ~n the Maintenance Department for a per~od of
approx~mately 6 months The Counc~l was ~nformed that the program
being suggested is called the Lakes and Prairie Youth Training
Program, which incorporates education and on the Job training for
d~sadvantaged youths and is responsible for pick~ng up all of the
expenses associated w~th the hir~ng of the youth, ~ e. salary,
Worker's Compensation, FICA, Medicare ect
There was some concern raised by the Council regarding whether or
not there was enough work to keep an additional employee busy It was
suggested that by hiring someone through th~s program that the
Maintenance Department would hopefully be able to reduce their
overtime and keep ~t down It was also noted that this employee would
be able to assist with ~ce making, general maintenance work, City Hall
cleanup, ect
It was noted that if at some point the Council felt that the
program was being misused that the contract could be terminated
w~thout any further obligation of the City
At this t~me the discuss~on of the tractor was brought back to
the table for d~scussion The Council discussed the possibil~ty of
making an offer on the equipment and then make a dec~sion at the next
meeting
There was some discussion on whether or not the tractor should be
a priority item for the Council when the City ~s look~ng at making
some major expenditures ~n the future Secondly, there was some
discussion on whether or not the C~ty needed to purchase the snow
blower attachment for the tractor at thi5 t~me Jim Krystosek 5tated
that he felt that ~f the City was going to purchase the new tractor
that the addit~onal $1,500 00 should be spent on the snow blower
Ken was questioned on when the blower would be used He noted
that the blower would come in useful for blowing back intersect~ons as
part of the snow removal processes He also noted that the design of
the tractor would allow one person to do the work wh~ch ~s currently
taking two to do, because the equipment will be all in one
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It was pointed out that in checking w1th some other dealers that
equ1pment 1S running much h1gher than what Long Lake Ford is proposing
to sell this equipment for Don Cornelius noted he would rather see
the C1ty buy used equipment that had been previously owned by another
city part1cularly when you know that the equipment was traded because
of a maintenance replacement program
At this time the Council informed Brad that they were considering
the possibility of purchasing a new tractor from Long Lake Ford and
asked if there was still time to include it the equipment certificate
f1nancing Brad noted that the decision would need to be made rather
quickly to get 1t included in the f1nancing plan for public not1ce
purposes
At this time a motion was made by Don Cornelius to offer Long
Lake Ford up to $8,250 00 for the Tractor/Blower with the trade in of
the old Ford Tractor after checking with the C1ty of St Louis Park to
be assured that there were no problems w1th the equipment In the
event that an agreement can not be reached and the pr1ce of the
equipment is to exceed sa1d dollar amount that the offer will be
brought back to the City for additional review The mot10n was
seconded by Jim Krystosek All were in favor and the mot10n carried
.
At this t1me Ken brought up an addit10nal item regarding two
problem areas in the street located in Westwind He noted that there
was sinking in two d1fferent spots caused by the contractor flushing
out of some gate valves after the blacktop was installed He
quest10ned the quality of the patch that was 1nstalled and requested
that in the future the C1ty Council require that hand tamp1ng be
required around the manholes and gate valves when the street 1S being
constructed
Thor asked if he could address these concerns of Ken He
informed the Council that they were aware of the sink1ng problem and
requested that a winter mix patch be installed so that no damage would
occurred to the gate valves and that in the spr1ng the contractor w1ll
be responsible for coming back in and mak1ng the necessary repa1rs to
the two problem areas Regarding the matter of Ken's request to have
Council give special directions to the City Engineer regarding the
hand tamping, that he felt that the request had been noted from
earl1er discuss10n and would be 1ncluded 1n future plans and
specifications
The issue regarding the possibility of developing an ord1nance
pertaining to driving on the dikes was tabled until a later meet1ng
since Bob M1ller was not present at the meeting
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The Counc1l next d1scussed the upcoming bond issue Brad Farnham
of Juran and Moody was present to review with the Counc1l each of the
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4 components of the sale. which 1nclude Equ1pment Certificates. Storm
Water Drainage Plan -- Tax Increment Financing. 429 Improvement for
Psyk'6 4th Addition and the Street Ma1ntenance Program and the
permanent financing for the Temporary Bonds of 1981A
Brad noted that even though the C1ty is propos1ng to issue the
bonds at the same t1me that each of these components are very
different in nature and would in fact be considered d1fferent bonds
The purpose of combin1ng them into one sale 1S to reduce the 1ssuances
expenses therefore keeping the overall cost of the bonds down
Brad rev1ewed w1th the Counc11 each component of the sale A
summary of this d1scuss1on is as follows
EQUIPMENT CERTIFICATES
$41.245 53
The equ1pment certif1cate 1S being proposed to put 1n place
the f1nance for expend1tures in the area of Cap1tal Outlay It
was noted that proposed under these cert1ficate6 are
PICKUP TRUCK
SNOW PLOW
* PLAYGROUND/UNDERGROUND SPRINKLER
SYSTEM
TRACTOR/SNOW BLOWER
$15.515 53
2.110 00
15.000 00
8.500 00
$41.245 53
* It was p01nted out that the City would need to develop a
schedule of the proposed playground equ1pment pr10r to the public
not1ce be1ng prepared by Bond Counsel to assure that the
equipment qualifies for financing
It was noted that these certificates would be financed for a
per10d of 5 years, wh1ch 1S what is allowable under State
Statute
TAX INCREMENT FINANCING BONDS FOR THE
ALBERTVILLE STORM WATER DRAINAGE PLAN
$210,000 00
Under th1s portion of the bond the C1ty will be using the
increment captured from the two apartment bU1lding project to
install the 1989-3 Storm Water Improvement Project 1n the Barthel
Industrial Park and acquire the land and install Phase I of the
West Albertville Drainage Plan
It was noted that th1s financing would be for the per10d of
10 years. w1th tax collection be1ng for a per10d of 8 years. due
to the certif1cat1on of the taxing districts
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429 IMPROVEMENT BONDS OF 1989 FOR PSYK'S
4TH ADDITION & STREET MAINTENANCE
PROGRAM
$137,869 00
Sim1liar to other 429 improvement projects these bonds w111
finance to street, sewer, water and storm sewer improvements
undertaken this summer by the C1ty of Albertville The costs
associated with this bond include the follow1ng
PSYK'S 4TH ADDITION
STREETS
$ 88,200 00
49,669 00
$137,869 00
The Psyk's 4th Add1t1on side of the bond w111 be structured
for spec1al assessment collect1on over a 12 year per10d at
approximately 1 5% above the net 1nterest, while the street
maintenance s1de of the bond will be lev1ed for through the
General Fund These bonds w111 also be structured w1th an early
call feature 1n the event that there are alot of prepayments of
assessments
TEMPORARY BONDS OF 1987A
$250,000 00
Th1s final port1on of the bond w111 replace temporary
f1nancing for Barthel Manor's 2nd Add1tion, which was or1ginally
financed under temporary bonds This bond will be structured to
match the assessment roles already 1n place and will have an
early call feature in the event of prepayment of assessments
Other costs assoc1ated with these bonds are the issuance
expenses or "soft costs" wh1ch include the follow1ng
BOND COUNSEL
BOND PRINTING
DISCOUNT - 1 96%
CAPITALIZED INTEREST (9 MONTHS)
ADMINISTRATIVE FEES
FISCAL FEES
LOCAL LEGAL
$ 3,500 00
850 00
15,484 00
44,438 00
15,000 00
23,450 00
1,500 00
The total cost of this issuance will be be $836,082 06 or
rounded to 837,000 00 It should be noted that some of the soft
costs may be impacted by the add1tion of the new equipment be1ng
discussed by the City Council
A question was ra1sed regarding the fiscal fees to which Brad
responded that some of the cost assoc1ated w1th the work done for
Fraser Steel has been t1ed back to this bond for the simple fact that
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on a pass through of Tax Increment F~nancing the fees assoc~ated with
the project will not be collected until the first settlement comes
back from the County with the tax collect~on
It was al&o noted that with the except~on of Psyk's 4th Addition
th~s financing is all general levy supported and that Psyk's w~ll only
pay their share of the expenses
Brad next reviewed with the Council the Bond Buyer's Index,
not~ng that at this t~me of the year bond interest rate are moving
downward He pointed out that this typically happens at this time of
the year because of the lack of activity in the bond industry. It was
suggested that if trends continue downward that the C~ty should get
fair good rates for the sale of the bonds
Hearing no other discussion a mot~on was made by Donatus Vetsch
and seconded by Jim Krystosek to approve the adoption of the
resolution to call for the sale of the Bonds of 1989 All were in
favor and the motion carried to hold the sale of bonds on December 18,
1989 at 7 00 p m
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The next item on the
hold the publ~c hearing
Development Revenue Bonds
requirement which needs to
agenda was discussion regarding the need to
regarding the issuance of the Industr~al
for Fraser Steel Brad noted that this is a
be completed pr~or to the sale of bonds
A motion was made by Bob Braun and seconded by Don Cornelius to
approve the RESOLUTION CALLING FOR A PUBLIC HEARING ON A PROPOSAL FOR
AN INDUSTRIAL DEVELOPMENT PROJECT PURSUANT TO TH~ MINNESOTA MUNICIPAL
INDUSTRIAL DEVELOPMENT ACT, AND AUTHORIZING THE PUBLICATION OF A
NOTICE OF THE HEARING All were in favor and the mot~on carried to
hold the hear~ng on December 18, 1989 7 00 p m.
It was noted the these Industr~al Development Revenue Bonds are
not generally obl~gated by the C~ty as are the other bonds d~scussed
earl~er in the meet~ng.
The next item on the agenda was the review of the Income and
Bills There were several minor quest~ons reviewed by the Council
Hearing no other comments a motion was made by Don Cornelius to
approve checks 10010 through 10030 The mot~on was seconded by Donatus
Vetsch All were in favor and the mot~on carried
The Council was informed that there would be a work meeting on
Tuesday, November 28th at 7 00 p m to d~scuss several pend~ng ~ssues
In add~tion, the Counc~l was rem~nded that they were inv~ted to dinner
at the R~ver Inn with Thor and Joyce Meyer
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Hear~ng no other comments a motion was made to adJourn the
meeting The motion was made by Donatus Vetsch and seconded by J~m
Krystosek All were in favor and the mot~on carried
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