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1989-11-20 CC Agenda/Packet� 11 iz1*111Du► t14 D1�i�x%�iF� 7 II. APPROVAL OF THE AGENDA III. APPROVAL OF THE MINUTES Minutes will not be available until next meeting 7.00 Brad Farnham -- Call for Bond Sales for Psyk's 4th Addition, Storm Water Drainage TIF District and Equipment Certificate Call for Public Hearing for the Fraser Steel's Industrial Development Revenue Bond a. MAINTENANCE - Tractor - Hiring of Student under the Lakes and Prairie Youth Training Program - Ordinance Regarding Driving on Dikes L-1 - Other Business c . LEGAL - Other Business 0 AGENDA PAGE 2 d. ADMINISTRATION * - Income Received .and Bills to be Paid - Work Meetings - Additional Items VII. MEMBERS REPORTS IX. ADJOURNMENT COUNCIL MINUTES NOVEMBER 20, 1989 The regular meeting of the Albertville City Council was called to order by Mayor Gary Schwenzfeier. Members present, included Jim Krystosek, Donatus Vetsch, Don Cornelius and Bob Braun. Others present included Maureen Andrews, Thor Meyer, Brad Farnham and Ken Lindsay. The agenda for the evening's meeting was reviewed by the Council. A motion was made by Don Cornelius and seconded by Jim Krystosek to approve the agenda. All were in favor and the motion carried. The minutes of the November 13th Council meeting were not available. The Council first dealt with the maintenance items. Ken informed the Council that he was having numerous problem with the Ford Tractor and was planning on taking it in for repair. He noted to the Council that in the past few weeks the equipment had been down for repairs more than it was operating. There was some discussion regarding whether or not the City should be considering the of purchase a different, tractor with the possibility of trading in the old tractor. The council was informed that the tractor the City owns appears to be somewhere between a 1954 and a 1958, the buckets are worn, the equipment is leaking and that cracks are beginning to appear throughout the vehicle. The Council was informed that, in checking with Long Lake Ford the City would be able to trade in the old tractor and replace it with a used 1975 model with a cab, new tires with fluid and weights, and bucket at a price to be determined it the Council is interested. There was also some discussion regarding the availability of a 3 point hitch plow plow which 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. It, was noted that, this equipment had been owned by the City of St. Louis Park and was trade in as part of their equipment maintenance program. It was suggested that it might be useful for someone to check with St. Louis Park to see if there had been any problems with the tractor prior to its being traded. No action was taken on the matter at this time but the matter was brought up later in the meeting for additional discussion. The next maintenance item discussed was the possibility of hiring a youth to work in the Maintenance Department for a period of approximately 6 months. The Council was informed that the program being suggested is called the Lakes and Prairie Youth Training Program, which incorporates education and on the job training for disadvantaged youths and is responsible for picking up all of the expenses associated with the hiring of the youth, i.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 this program that the Maintenance Department would hopefully be able to reduce their overtime and keep it down. It was also noted that this employee would be able to assist with ice 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 without, any further obligation of the City. At, this time the discussion of the tractor was brought back to the table for discussion. The Council discussed the possibility of making an offer on the equipment and then make a decision 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 is looking at making some major expenditures in the future. Secondly, there was some discussion on whether or not, the City needed to purchase the snow blower attachment for the tractor at this time. Jim Krystosek stated that he felt that if the City was going to purchase the new tractor that the additional $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 intersections as part of the snow removal processes. He also noted that the design of the tractor would allow one person to do the work which is currently taking two to do, because the equipment will be all in one. PAGE 2 It was pointed out that in checking with some other dealers that equipment, is running much higher than what, Long Lake Ford is proposing to sell this equipment for. Don Cornelius noted he would rather see the City buy used equipment that, had been previously owned by another city particularly 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 financing. Brad noted that the decision would need to be made rather quickly to get it included in the financing plan for public notice 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 City of St. Louis Park to be assured that there were no problems with the equipment. In the event that an agreement can not, be reached and the price of the equipment is to exceed said dollar amount that the offer will be brought back to the City for additional review. The motion was -� seconded by Jim Krystosek. All were in favor and the motion carried. At this time Ken brought up an additional item regarding two problem areas in the street located in Westwind. He noted that there was sinking in two different, spots caused by the contractor flushing out of some gate valves after the blacktop was installed. He questioned the quality of the patch that was installed and requested that, in the future the City Council require that hand tamping be required around the manholes and gate valves when the street is being constructed. Thor asked if he could address these concerns of Ken. He informed the Council. that they were aware of the sinking problem and requested that a winter mix patch be installed so that no damage would occurred to the gate valves and that in the spring the contractor will be responsible for coming back in and making the necessary repairs 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 earlier discussion and would be included in future plans and specifications. The issue regarding the possibility of developing an ordinance pertaining to driving on the dikes was tabled until a later meeting since Bob Miller was not present at the meeting. The Council next discussed the upcoming bond issue. Brad Farnham of Juran and Moody was present to review with the Council each of the PANE 3 4 components of the sale, which include Equipment Certificates, Storm Water Drainage Plan -- Tax Increment, Financing, 429 Improvement for Psyk's 4th Addition and the Street, Maintenance Program and the permanent, financing for the Temporary Bonds of 1987A. Brad noted that even though the City is proposing to issue the bonds at, the same time that each of these components are very different in nature and would in fact be considered different bonds. The purpose of combining them into one sale is to reduce the issuances expenses therefore keeping the overall cost of the bonds down. Brad reviewed with the Council each component of the sale. A summary of this discussion is as follows: EQUIPMENT CERTIFICATES $41,245.53 The equipment certificate is being proposed to put in place the finance for expenditures in the area of Capital Outlay. It was noted that proposed under these certificates are: PICKUP TRUCK $15,575.53 SNOW PLOW 2,170.00 PLAYGROUND/UNDERGROUND SPRINKLER SYSTEM 15,000.00 TRACTOR/SNOW BLOWER 8,500.00 $41,245.53 It was pointed out that the City would need to develop a schedule of the proposed playground equipment prior to the public notice being prepared by Bond Counsel to assure that the equipment qualifies for financing. It was noted that these certificates would be financed for a period of 5 years, which is what is allowable under State Statute. TAX INCREMENT FINANCING BONDS FOR THE ALBERTVILLE STORM WATER. DRAINAGE PLAN $270,000.00 Under this portion of the bond the City will be using the increment captured from the two apartment building project to install the 1.989-3 Storm Water Improvement Project in the Barthel Industrial Park and acquire the land and install Phase I of the West Albertville Drainage Plan. It was noted that this financing would be for the period of 10 years, with tax collection being for a period of 8 years, due to the certification of the taxing districts. PAGE 4 429 IMPROVEMENT BONDS OF 1989 FOR PSYK`S 4TH ADDITION & STREET MAINTENANCE PROGRAM $137,869.00 Similiar to other 429 improvement projects these bonds will finance to street, sewer, water and storm sewer improvements undertaken this summer by the City of Albertville. The costs associated with this bond include the following: PSYK"S 4TH ADDITION $ 88,200.00 STREETS 49,669.00 $137,869.00 The Psyk's 4th Addition side of the bond will be structured for special assessment collection over a 12 year period at approximately 1.5% above the net interest, while the street maintenance side of the bond will be levied for through the General Fund. These bonds will also be structured with an early call feature in the event that there are alot of prepayments of assessments. TEMPORARY BONDS OF 1987A $250,000.00 This final portion of the bond will replace temporary financing for Barthel Manor's 2nd Addition, which was originally financed under temporary bonds. This bond will be structured to match the assessment roles already in place and will have an early call feature in the event of prepayment of assessments. Other costs associated with these bonds are the issuance expenses or "soft costs". which include the following: BOND COUNSEL $ 3,500.00 BOND PRINTING 850.00 DISCOUNT - 1.96% 15,484.00 CAPITALIZED INTEREST (9 MONTHS) 44,438.00 ADMINISTRATIVE FEES 15,000.00 FISCAL FEES 23,450.00 LOCAL LEGAL 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 addition of the new equipment being discussed by the City Council. A question was raised regarding the fiscal fees to which Brad responded that some of the cost associated with the work done for Fraser Steel has been tied back to this bond for the simple fact that PAGE 5 on a pass through of Tax Increment, Financing the fees associated with the project will not, be collected until the first settlement comes back from the County with the tax collection. It was also noted that with the exception of Psyk's 4th Addition this financing is all general levy supported and that Psyk's will only pay their share of the expenses. Brad next reviewed with the Council the Bond Buyer's Index, noting that at this time 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 City should get fair good rates for the sale of the bonds. Hearing no other discussion a motion 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. -- The next item on the agenda was discussion regarding the need to Bold the public hearing regarding the issuance of the Industrial Development, Revenue Bonds for Fraser Steel. Brad noted that this is a requirement, which needs to be completed prior 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 THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, AND AUTHORIZING THE PUBLICATION OF A NOTICE OF THE HEARING. All were in favor and the motion carried to hold the hearing on December 18, 1989 7:00 p.m. It was noted the these Industrial Development Revenue Bonds are not generally obligated by the City as are the other bonds discussed earlier in the meeting. The next item on the agenda was the review of the Income and Bills. There were several minor questions reviewed by the Council. Hearing no other comments a motion was made by Don Cornelius to approve checks 10010 through 10030, The motion was seconded by Donatus Vetsch. All were in favor and the motion carried. The Council was informed that, there would be a work meeting on Tuesday, November 28th at 7:00 p.m, to discuss several pending issues. In addition, the Council was reminded that they were invited to dinner at the River Inn with Thor and Joyce Meyer. Hearing no other comments a motion was made to adjourn the meeting. The motion was made by Donatus Vetsch and seconded by Jim Krystosek. All were in favor and the motion carried. PAGE 6 INCOME RECEIVED NOVEMBER 20, 1989 SEWER ACCOUNTS $ 2,932.17 JIM LEUER CONSTRUCTION 5,810.46 F& M PROPERTIES 20,107.19 SHERBURNE COUNTY ABSTRACT 11,316.70 TRI-COUNTY ABSTRACT & TITLE 10.00 NORTH STAR. TITLE, INC. 10.00 MOLITOR EXCAVATION, INC. 25.00 MOLITOR EXCAVATION, INC. 25.00 TOTAL $40,236.52 BILLS TO BE PAIR NOVEMBER 20, 1989 CHECK NUMBER 10010 LEAGUE OF MN CITIES $ 25.00 10011 PETTY CASH 50.00 10012 MAUREEN ANDREWS 671.60 10013 LORIE VILLAREAL 440.46 10014 KEN LINDSAY 625.98 10015 RAY VARNER 395.04 10016 NSP 1,568.94 10017 CROW RIVER NEWS 92.00 10018 NORTHERN DEWATERING INC. 500.00 89,41 10019 WATER PRODUCTS COMPANY 10020 HACK'S INC. 55.41 10021 ST. MICHAEL INSURANCE AGENCY 100.00 10022 ABLE HOSE & RUBBER, INC. 275.36 10023 FEED -RITE CONTROLS, INC;. 106.00 10024 PERA 214.48 10025 LONG LAKE FORD TRACTOR, INC. 15.61 10026 AMERICAN NATIONAL BANK IMP. 1987A) 7,500.00 10027 FIRST(TEMP. TRU(G.O. SEWER/WATER REV. 1988) 17,198.75 10028 FIRST TRUST (G.O. IMP 1988) 26,993.75 10029 BUFFALO BITUMINOUS, INC. 28.573.20 TOTAL $85,490.99