1987-11-02 CC Agenda/Packet•
CITY OF ALBERTVILLE
P. 0. BOX 131
AtBERTVILLE- MINNEso-rA 55301
PHONE: (612) 497-3384
COUNCIL AGENDA
NOVEMBER 2, 1987
I: CALL MEETING TO ORDER
II. APPROVAL OF THE AGENDA
*III. APPROVAL OF THE MINUTES
IV. COMMUNITY FORUM
A. Joint Power's Update
V. DEPARTMENT BUSINESS
A. Legal
-Tax Increment Financing
*-Confiming Rocommendations for $250,000.00 Bond
B. Park Board
-Hockey Shoot Out
-Policy of Flooding Ice Rink
-Possibility of Hiring Skating Rink Attendant
-Information on Warning Track
-Update on Door Installation
C. Engineering
*-PCA Letter and what action should be taken
-Construction Update
D. Maintenance
Sidewalk cleaning Policy
E. Administration
*-Income Received and Bills to be Paid
*-LMC Legislature Issues Voting Card Results
*-Action Alert's Re: Federal Cuts
OSHA Rules
-Other Business
-Sign Permit Application's for Franklin
VI. MEMBER"S REPORT
VII. OTHER BUSINESS
A. Minnesota Association of Small Cities "Small Talk" -
Available
B. Public Financial Systems "Redefing..." - Available
VIII. MOTION TO ADJOURN
Make our Cm,. Your C/n,
We mrtte Home. Industrc, tlusine5s
CITY OF ALBERTVILLE
P. (). H(» 131
AI BERTV11.I.E, MINNESO TA 55301
PHONE: (612) 497-3384
COUNCIL AGENDA
NOVEMBER 2, 1987
I. CALL MEETING TO ORDER
II. APPROVAL OF THE AGENDA
*III. APPROVAL OF THE MINUTES
IV. COMMUNITY FORUM
A. Joint Power's Update
V. DEPARTMENT BUSINESS
A. Legal
-Tax Increment Financing
*-Confiming Rocommendations for $250,000.00 Bond
B. Park Board
-Hockey Shoot Out
-Policy of Flooding Ice Rink
-Possibility of Hiring Skating Rink Attendant.
-Information on Warning Track
-Update on Door Installation
C. Engineering
*-PCA Letter and what action should be taken
-Construction Update
D. Maintenance
Sidewalk cleaning Policy
E. Administration
*-Income Received and Bills to be Paid
*-LMC Legislature Issues Voting Card Results
*-Action Alert's Re: Federal Cuts
OSHA Rules
-Other Business
-Sign Permit Application's for Franklin
VI. MEMBER"S REPORT
VII. OTHER BUSINESS
A. Minnesota Association of Small Cities "Small Talk" -
Available
B. Public Financial Systems "Redefing..." - Available
VIII. MOTION TO ADJOURN
Wake our ('av }nur it
We "n•ne Hot?)", Ineluslrr, Nusrnv%%
The regular meeting of the Albertville City Council was called to order
by Mayor Loretta Roden. Members present included Gary Schwenzfeier,
Donatus Vetsch and Don Cornelius. Council member Bob Braun was absent.
Others present included Maureen Andrews, Bob Miller, Steve Klitzka,
Thore Meyer, Gordy Berning and Ken Lindsay.
There was a motion made by Donatus Vetsch and seconded by Don Cornelius
to approve the agenda. All were in favor and the motion carried.
A motion to approve the minutes of the October 19, 1987 meeting
was made by Gary Schwenzfeier and seconded by Donatus Vetsch.
All were in favor and the motion carried.
It was pointed out that there were bare wires sticking out of the
control box at the base of the Albertville Water Tower and that
the cover was off and laying on the ground. Gary Schwenzfeier
said the he would check on it and contact the Joint Powers.
Bob Miller updated the Council on the Tax Increment Financing proposal
for the Meyer project. In discussing the issue with Holmes and
Graven, they said that it would cost at least $500.00 to complete
the feasibility study on doing a T.I.F. project but did not want
to go ahead until the Council made a decision on whether or not
to proceed.
Bob also spoke with John Gries about this issue and it appears
that Mr. Meyer is looking for more that the existing $25,000.00
to do his project. According to John Gries the project costs are
as follows:
LAND $ 8,000.00
OUTSIDE EQUIPMENT 195,000.00
SITE WORK & ASPHALT 80,000.00
SPECIAL ASSESSMENTS 47,000.00
BUILDING 200,500.00
INSIDE EQUIPMENT 50,000.00
INVENTORY & SUPPLIES 35,000.00
TOTAL 687,500.00
The Council reconfirmed the fact that they felt that they still
needed more information before deciding to go ahead with the hearing
on T.I.F. It was suggested that Maureen give Pat Meyer a call
to update him on what is happening with the proposal and find out
how he would like to proceed with the proposal.
The Council was then updated on the bond sale for Barthel Manor--2nd
Addition. The preliminary findings from Springstead were reviewed
PAGE 2
by the Council and appeared to be in order. A motion was made by Don
Cornelius and seconded by Donatus Vetsch to proceed with the bond
sale as presented. All were in favor and the motion carried.
Maureen was asked to confirm this information with Springstead
so that the sale would take place on November 16th.
Steve Klitzka and Gordy Berning, representatives of the Park Board
were present to discuss several park activitivies.
The first item discussed was a "KID'S RAFFLE" with the drawning
being held on December 19th at the Lamp Post In. First prize will
be a 10-speed bike of the winner's choice (boys or girls) and other
prizes will include sundays from the Lamp Post.
The seconded item discussed was a Park Board sponsered Hockey Shootout
with winners recieving two tickets to a North Star game. There
will be six catagories and six pairs of tickets awarded. The Shootout
will be held at the City Park sometime in January. More details
are being worked out and will be presented to the Council as they
develop.
The Council was informed that the steel doors had been installed
but that there was some additional work that needed to be done
before any payment be made. Steve also told the Council that one
of the doors will be used for the warming house. In addition to
replacing the warming house door, Alpana Windows and Hordis Brother's
^ Glass are donating windows for the building as well.
The next item discussed was establishing a check list to be used
when renting the park. The form would require a damage deposit
along with the rental fees. A reason for this'change is that there
has not been established rules for using the park and for cleanup
at the end of the day.
It was also clearified that when a group rents the park that it
only included the softball field and shelter area and that the
playground, athelic field and gazebo will remain open to the public
at all times.
The Council was informed that the Gazebo will be constructed early
next spring.
The members of the Park Board have agreed to each take turns making
sure that the park facility is open and picked up on the weekends
during the summer months.
Theres was some sidcussion regarding the maintenance of the ice
rink. The Council informed the Park Board members that the City
maintenance Department will be responsible for maintaining the
rink once cal -du -sacs have been cleared of snow, except in the
case of real heavy snow storms, in which case it may take a little
.-1 longer to get to the ice rink:
There was also some discussion about the possiblity of hiring a
rink attendant to supervise the weekend skating. The Council felt
that it would be better to try installing a sign stating the rules
of the rink instead of expending money for a part-time employee.
PAGE 4
legally responsible for clearing snow away from publicly owner
buildings and parking lots, but that giving the location of the
City's sidewalks it would be best to wing back as much snow as
possible on both sides of the street and if it becomes necessary
during the winter to blow back snow when needed. It was pointed
out that it is important to keep away from the grass line as not
to demage peoples yards.
Other snow related items dicussed included that the "SNOW BIRD"
ordinance is in effect and that Maureen should contact the Sheriff's
Office and request that tickets be issued. Notice should be given
to the newspaper and put on the City Sign as to the same. In addition,
it was suggested that a notice be put in the paper regarding the
need to clean out around mailbox so that mail can be delivered.
Ken Lindsay next informed the Council that the pond discharging
was just about complete and that the City had been able to discharge
without adding the chemicals this time, saving about $800.00 in
chemical costs.
Ken also informed the Council that Dennis Fehn is looking to sell
the City a motor grader for $1,500.00 and wants to know if the
Council is interested. There was some discussion regarding the
grading being done by Otesgo Township and the Council will wait
until more information is provided.
The Council reviewed the Income Recieved and Bills to be Paid.
There were some questions regarding the Don's Auto bill the
Albertville Auto Parts Store and the Buffalo Bituminous bill.
After reviewing the bills it appeared -that the only bill in question
was the Buffalo Bituminous bill, which Maureen was asked to hold
until it sould be checked. With no other questions regarding the
bills, a motion was made by Donatu Vetsch and a second by Gary
Schwenzfeier to approve checkthrough 1113 excluding the
Buffalo Bituminous chek. All were in favor and fhe motion carried.
Maureen was asked to send a letter to the City's federal legislator
and Senators regarding the possible federal cuts to local govenment.
Discussion on Billboard permits was tabled until the next meeting
of the Council.
There was addition discussion regarding the raising of the fire
hydrants. Maureen informed the Council that she had notified Joint
Powers that extensions were needed and Linda stold her that if
ther were any questions she would have one of the guys get ahold
of Ken. Ken stated that he does not feel that the City should
have to raise the hydrant when Munitec is being paid to maintain
the water system. Ken said that he was making the complaint as
a tax payer and a City employee. The Council said that he should
then take his complaint to the full Joint Power's Board.
Gary Schwenzfeier pointed out that there appears to be a problem
with trucks sitting on the corner of 55th Street and Large Avenue.
A ticket had been issued on Sunday evening as well as several complaints
having been filed.
PAGE 5
A motion was made by Gary Schwenzfeier and a second by Donatus
Vetsch to have Ken order 4 addition "NO TRUCKS" signs. All were
in favor and the motion carried.
The final item brought up by the Council was the fact that a pit
bull and been seen running in town. Maureen was asked to send
a letter regarding the issue to the owner and notify the sheriff's
office that there could be some problems with the dog running.
There was no othr business so a motion was made to adjour. The
motion was made by Don Cornelius and seconded by Gary Schwenzfier.
All were in favor and the motion carried.
CONFIRMING
RECOMMENDATIONS
FOR
CITY OF ALBERTVILLE, MINNESOTA
$250,000
GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1987A
Study No. 3320
October 22, 1987
SPRINGSTED Incorporated
SPRINGSTED
,.hd.'!l
October 22, 1987
Ms. Loretta Roden, Mayor
Members, City Council
Ms. Maureen Andrews, Administrator
Albertville City Hall
Albertville, MN 55301
RE: Confirming Recommendations for the Issuance of $250,000 General
Obligation Temporary Improvement Bonds, Series 1987A
These recommendations will confirm the terms and conditions for the issuance
of these bonds, authorized at the City Council's meeting on October 19, 1987.
The bonds are being issued to finance the improvement costs for the 2nd
Addition to Barthel Manor. The size of the bond issue has been determined as
follows:
Construction
$186,255
Engineering, Contingencies,
Administrative/Legal
37,251
Issuance Costs
8,900
Capitalized Interest (to 12-31-88)
17,500
Subtotal
$249,906
Allowance for Discount Bidding
3,125
Less: Estimated Reinvestment Earnings
(3,031)
Total Bond Issue $250,000
Included in the principal amount of the issue is a provision for capitalized
interest in the amount of $17,500. This capitalized interest is necessary to
fund the June I, 1988 and December I, 1988, interest payments pending the
filing of and the receipt of special assessments. All subsequent debt service
payments commencing with the June I, 1989 interest payment will be paid
from the collection of special assessments.
Also included in the principal amount of the issue is a provision for discount
bidding in the amount of $3,125. This discount, representing $12.50 per $1,000
of bonds issued, will provide the underwriter with all or part of his profit
and/or working capital for purchasing the issue. The City has used this
marketing tool in the past and we recommend its continued use with this issue.
City of Albertville, Minnesota
October 22, 1987
In addition, we are providing the City with the option of prepaying these bonds
on December I, 1989, one year prior to the scheduled maturity date. This
option will allow the City greater flexibility in exercising its refinancing
options.
We recommend the City issue temporary bonds rather than definitive bonds as
originally contemplated due to the expectation of substantial prepayments of
special assessments. Furthermore, definitive bonds would require a higher
discount and more capitalized interest than do temporary bonds and thus the
amount of the issue has been reduced from $260,000 to $250,000.
Pursuant to Chapter 429, Minnesota Statutes, municipalities are permitted to
issue temporary bonds which mature not later than three years from the date
of issue. Further, such temporary bonds may be refinanced with additional
temporary improvement bonds which second issue also may not exceed three
years in maturity. A third issue, if necessary, would be sold as a definitive
issue. As stated previously, the primary advantage of issuing temporary bonds
is that the City may use prepayments of assessments received over the next
few years to reduce and/or eliminate further financing requirements for this
project.
Consistent with past practices of the City, the interest charged on the
assessments will be at a rate of 1.5% above the net effective rate of the bonds
issued to finance the project. If the City were to issue definitive bonds at this
time, we estimate the net effective rate of the borrowing would be 8.20%.
Therefore, the assessments would carry an interest rate of 9.75%. We
recommend the City establish the rate on the assessments based on what the
City would have received had it sold a definitive issue (see Exhibit III) at the
time it sells the temporary issue. This is a protection to the City in the event
that a definitive issue will be required in future years. It is currently
estimated the City can issue its temporary bonds as a net effective rate of
7.41 %, however, there is no assurance that should definitive financing be
required in the future, such a rate may be achieved. Therefore, as a hedge
against future potential higher interest costs with the definitive plan, we feel
the City would be justified in establishing the assessment rate based on the
estimated rate of definitive financing at this time.
Exhibit I shows the projection of assessment income assuming the assessments
will be filed on October I, 1988. This projection of assessment income does
not take into consideration any prepayments, deferments or delinquencies
which may occur. Exhibit II shows the projected cash flow for the temporary
bond issue. Exhibit III shows the projected cash flow if this were a definitive
issue.
The Tax Reform Act of 1986 established certain arbitrage reporting and
rebate requirements for issuers of tax-exempt obligations. In essence, an
issuer must report and rebate the amount of reinvestment income which
exceeds the income which would have been earned if the same amount had
been invested at the rate of the bonds. However, because the City will issue
less than $5,000,000 of government purpose bonds in this calendar year, it is
exempt from the reporting and rebating requirement.
Page 2
City of Albertville, Minnesota
October 22, 1987
The Tax Reform Act also restricts the ability of banks to deduct tax-exempt
interest as a carrying expense under certain circumstances in calculating their
tax liability. However, these bonds will be qualified bonds which can be
included in a bank's calculations of interest deduction.
We recornmend these bonds be offered for sale on Monday, November 16, with
bid proposals to be received at the offices of SPRINGSTED Incorporated at
1:00 P.M. A compilation of proposals received will be made and presented to
the Council for consideration of award at 7:30 P.M. that evening. A
representative of SPRINGSTED Incorporated will attend your meeting to
provide a recommendation.
Respectfully submitted,
SPRINGSTED Incorporated
/tkf
Page 3
EXHIBIT I
City of Albertville, Minnesota
$260,000 G.O. Improvement Bonds
Series 1987A
PROJECTED ASSESSMENT INCOME
Barthel Manor 2nd Addition
Filing Date: 10/ 1/1988
Filing Collect Interest
Year Year Principal @ 9.750% Total
----------------------------- -----
Prepared October 20, 1987
By SPRINGSTED Incorporated
1988
1989
21,667
31,740a
53,407
1989
1990
21,667
23,237
44,904
1990
1991
21,667
21,125
42,792
1991
1992
21,667
19,012
40,679
1992
1993
21,667
16,900
38,567
1993
1994
21,667
14,787
36,454
1994
1995
21,667
12,675
34,342
1995
1996
21,667
10,562
32,229
1996
1997
21,667
8,450
30,117
1997
1998
21,667
6,337
28,004
1998
1999
21,667
4,225
25,892
1999
2000
21,663
2,112
23,775
TOTALS
260,000
171,162
431,162
a) Includes interest from filing
date to 12/31/1989.
Page 4
EXHIBIT II
City of Albertville, Minnesota
$250,000 G.O. Temporary Improvement
Bonds, Series 1987A
Dated: 12- 1-1987
Mature: 12- 1
Year of
Year of
Levy
Mat.
(1)
(2)
1987
1988
1988
1989
1989
1990
TOTALS:
Principal Rates
(3) (4)
0 7.00%
0 7.00%
250,000 7.00%
250,000
Prepared October 21, 1987
By SPRINGSTED Incorporated
Total
Principal
105%
Interest
& Interest
of Total
(5)
(6)
(7)
17,500
17,500
18,375
17,500
17,500
18,375
17,500
267,500
280,875
52,500 302,500 317,625
Bond Years: 750.00 Annual Interest: 52,500
Avg. Maturity: 3.00 Plus Discount: 3,125
Avg. Annual Rate: 7.000% Net Interest: 55,625
N.I.C. Rate: 7.417%
Interest rates are estimates; changes may cause significant
alterations of this schedule.
The actual underwriter's discount bid may also vary.
Page 5
EXHIBIT III
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Page 6
EXHIBIT IV
THE CITY COUNCIL HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
BOND ISSUE ON THEIR BEHALF. SPRINGSTED INCORPORATED WILL RECEIVE PROPOSALS ON
— THE FOLLOWING BASIS:
$250,000
CITY OF ALBERTVILLE, MINNESOTA
GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1987A
Proposals for the Bonds will be received by SPRINGSTED Incorporated on behalf of the City of
Albertville, Minnesota on Monday, November 16, 1987, at 1:00 P.M., Central Time, at the offices of
SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101-2143.
Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the
some day.
DETAILS OF THE BONDS
The Bonds will be dated December I, 1987, as the date of original issue, and will bear interest
payable on June I and December I of each year, commencing June I, 1988. Interest will be computed
upon the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the
MSRB. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof
as requested by the Purchaser, and fully registered as to principal and interest. Principal will be
payable at the main corporate office of the Registrar and interest on each Bond will be payable by
check or draft of the Registrar mailed to the registered holder thereof at his address as it appears on
the books of the Registrar as of the 15th day of the calendar month next preceding the interest
payment.
The Bonds will mature on December I, 1990.
OPTIONAL REDEMPTION
The City may elect on December I, 1989 and June I, 1990 to prepay Bonds due December I, 1990.
Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part,
the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at a
price of par and accrued interest.
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 an improvement project
within the City.
TYPE OF PROPOSAL
Proposals must be for not less than $246,875 and accrued interest on the total principal amount of the
Bonds and shall be filed with the undersigned prior to the time set for the receipt of proposals. A
certified or cashier's check in the amount of $2,500, payable to the order of the City, shall be within
24 hours of award filed by the Purchaser with the undersigned or SPRINGSTED Incorporated, the
City's Financial Advisor. The check of the Purchaser will be retained by the City as liquidated
damages in the event the Purchaser fails to comply with the accepted proposal. The City will deposit
the check of the Purchaser, the amount of which will be deducted at settlement. No proposal shall be
withdrawn after the time set for receiving proposals unless the meeting of the City scheduled for
consideration of the proposals is adjourned, recessed, or continued to another date without award of
the Bonds having been made. Rates offered shall be in integral multiples of 5/100 or 1/8 of 1%.
Page 7
AWARD
The Bonds will be awarded on the basis of the proposal offering the lowest dollar interest cost to be
determined by the deduction of the premium, if any, from, or the addition of any amount less than
par, to the total dollar interest on the Bonds from their date to their final scheduled maturity. The
City's cornputation of the total net dollar interest cost of each proposal, in accordance with
customary practice, will be controlling.
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.
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 Holmes & Graven, Chartered, of
Minneapolis, Minnesota which opinion will be printed on the Bonds, 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 1:00 P.M., 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.
INVITATION FOR PROPOSALS
Underwriters may obtain a copy of the Invitation for Proposals by request to the City's Financial
Advisor prior to the receipt of proposals. The Purchaser will be provided with 15 copies of the
Invitation for Proposals.
N 41k;)JW4 z Minnesota Pollution Control Agency
UU00
October 16, 1987
Ms. Maureen Andrews
City Administrator of Albertville
P.O. Box 131
Albertville, Minnesota 55301
Dear Ms. Andrews:
RE: Rebudget Request
C271087 02, Step 2+3
This is in response to your August 19, 1987 letter requesting a rebudget of
project funds. The reason stated in your letter for the rebudget request is
that additional engineering services were used to research and respond to a
Notice of Violation issued the City.
Federal regulation 40 CFR Part 35, Subpart I, Appendix B (2.f) states:
Costs which are not necessary for the construction of a treatment works
project are unallowable. Such costs include, but are not limited to,
fines and penalties due to violations of, or failure to comply with
federal, state, or local laws, regulations or procedures.
Because the engineering fees were incurred to respond to a Notice of
Violation, the costs are unallowable for grant participation. We are
denying your request to rebudget funds from Project Contingencies to Other
Architectural Engineering Fees.
In accordance with the enclosed Disputes Procedure, you may request review
of this decision by Mr. Thomas J. Kalitowski, Commissioner, Minnesota
Pollution Control Agency. If you have any questions, please contact Mary L.
James, Grants Project Manager, at (612) 296-7732.
Sincerely,
Richard J. Sandberg, C
Municipal Wastewater Treatment Section
Division of Water Quality
RJS/MLJ:rbj
Enclosure
cc: Meyer-Rohlin, Incorporated (w/enclosure)
U. S. Army Corps of Engineers
Phone: (612)296-7201
520 Lafayette Road, St. Paul, Minnesota 55155
Regional Oftices • Duluth/Brainerd/Detroit Lakes/Marshall/Rochestr;r
Equal Opportunity Employer
ATTACHMENT D-4
MINNESOTA POLLUTION CONTROL AGENCY
DIVISION OF WATER QUALITY
Disputes Review Procedure
Federal Construction Grants Program
Under 40 CFR 35.3030, Federal wastewater treatment grant recipients who
perceive that they have been adversely affected by decisions made by the
Minnesota Pollution Control Agency (MPCA), or the lack of same, have the
right to request a review of the decisions by the U.S. Enviornmental
Protection Agency (EPA) Region V, when the authority to make those decisions
is pursuant to the Delegation Agreement between the MPCA and EPA Region V.
In other words, any decisions made by MPCA under the Delegation Agreement,
that in the absence of the Delegation Agreement would be made by EPA Region
V, are subject to the review procedure described below. Disputes regarding
State law, State regulations and State policies, to the extent same to not
conflict the Federal requirements, are not subject to review under the
described review procedure but rather shall be reviewed under the State
construction grants program review procedure.
Federal wastewater treatment grant recipients who perceive they have been
adversely affected by a Municipal Wastewater Treatment Section staff
decision may request review of the decision by the Municiipal Wastewater
Treatment Section Chief.
The procedure is as follows:
A. The grantee is required to submit, generally within 45 days of the date
when the grantee could have or should have reasonably known of an MPCA staff
decision, a request addressed to the Municipal Wastewater Treatment Section
Chief for a review of the staff decision with the following information:
1. Project name and identification number;
2. A description of the staff action (a copy if possible), the date and
the amount in dispute, if applicable;
3. The basis for the grantee's request for review must cite, as applicable:
a. Federal Law;
b. Title 40 EPA regulation;
c. EPA policy; and/or
d. EPA Guidance; and
4. The specific action the grantee wants the Municipal Wastewater Treatment
Section Chief to take.
2
B. The Municipal Wastewater Treatment Section Chief will respond generally
within 45 days with a formal initial decision or a request for futher
information.
I. If it is a request for futher information, the Municipal Wastewater
Treatment Section Chief will indicate:
a. What specific information is being requested;
b. Why it is being requested; and
C. That the grantee has 45 days to respond or the Municipal Wastewater
Section staff's previous decision will become the State's final
decision subject to no further review by the State or EPA.
2. If it is a State formal initial decision, the Municipal Wastewater
Treatment Section Chief will indicate via certified mail, return
receipt requested:
a. That it is a State formal initial decision;
b. The basis for the initial decision, citing, as applicable:
Ill Federal Law;
2 Title 40 EPA Regulations;
3 EPA Policy; and/or
4 EPA Guidance; and
c. The grantee's right to request review by the MPCA Executive
Director.
C. If the grantee decides to request review by the MPCA Executive
Director, the grantee is required to submit, within 45 days of the
date of the formal initial decision, a request addressed to the
Executive Director of the MPCA for review of the initial decision
with the following information:
1. Project name and identification number;
2. A copy of the formal initial decision;
3. The basis for the grantee's request for review must cite,
as applicable:
a. Federal Law;
b. Title 40 EPA Reggulations;
C. EPA policy; and
d. EPA Guidance; and
4. The Specific action the grantee wants the Executive Director to take
D. The Executive Director will respond within 45 days with a
final decision or request for further information.
I. If it is a request for further information, the Executive Director
will indicate:
3
a. What specific information is being requested;
b. Why it is being requested; and
c. That the grantee has 45 days to respond or the
Municipal Wastewater Treatment Section Chief's previous
initial decision will become the State's final decision
subject to no further review by the State or EPA.
2. If it is a State final decision, the Executive Director will
indicate via certified mail, return receipt requested:
a. That it is a State final decision:
b. The basis for the State decision, citing as applicable:
Ill Federal Law;
2 Title 40 EPA Regulations;
3 EPA Policy; and/or
4 EPA Guidance;
(If the dispute is an issue of State law, State policy and/or
State guidance, the grantee will be notified that the issue
is not disputable under the Federal Construction Grant's
Program disputes review procedure. If the dispute is a
Stante issue, the MPCA will make a decision based on the
State Construction Grants Program Disputes Procedure).
c. The grantee decides to request review by EPA; and
d. That if the grantee decides to request EPA region V review, its
request must:
(1) Be filed by registered mail, return receipt requested
to the Regional Disputes Decisions Official, Attention:
Cheif, Municipal Facilities Branch, U.S. Enviornmental
Protection Agency, 230 South Dearborn Street, Chicago,
Illinois 60604;
�2� Include a statement of the amount in dispute;
3 Include a description of the issues involved;
4 Include a concise statement of the objections to
the State decision;
(5) Include a copy of all written State decisions and
communications and documents applicable to the dispute; and
(6) Be received by the Region within 30 days of the date of the
state decision.
i
LLL,
���,
l_..�t� i I i J I I L:; L_J
October 20, 1987
TO: Mayors, Manag and Clerks
FROM: Donald A. S1 Executive Director
RE: Regional Meeting Legislative Issues Voting Card Results
Over 1,300 city officials attended the League's 1987 regional meetings.
Meetings where held in Nashwauk, Menahga, Little Falls, Red Wing,
Preston, Owatonna, Marshall, Sleepy Eye, Glenwood/Starbuck, Mora,
Albertville, Red Lake Falls, and Moorhead.
At each regional meeting, city officials were requested to complete a
legislative issues voting card. The voting card asked 23 policy
position questions concerning the subjects discussed in several
issue papers prepared by League staff. The issue papers and voting
cards were mailed to all mayors, managers, and clerks prior to the
regional meetings. Several cities, unable to attend a regional
meetings, mailed in their city's voting card.
After tabulating the voting cards, a report on the results was prepared
for each LMC legislative policy committees. Enclosed is a copy of the
voting results for your review. The committees took these results into
consideration when drafting the 1988 Proposed City Policies and
Priorities. Your position on these issues was of vital importance to
each policy committee wrestling with tough policy questions.
However, your opportunity to participate in the development of the
League's 1988 Policies and Priorities for Legislative Action is not
over. The League's Policy Adoption Conference is scheduled for
At the Policy
Adoption Conferenc , mem cities t, or propose
changes, to the 1988 legislative policies.
I hope you will attend the Policy Adoption Conference and bring your
city's perspective to the conference. If you plan to attend, please
return the enclosed registration form to Gayle Brodt at the League
office. There is no registration fee for the conference.
. . 2 7 5600
LMC LEGISLATIVE ISSUES VOTING CARD RESULTS
Tax Increment Financing TIF
a5 I Yes I �fl No
Voting Equipment
33r--) Yes No
Local
Government
Election
Da
Yes
No
Land Use Legislation
-�9 Support ZC9_ Oppose
Support-1 Oppose
J 07 _ Support 15 b Oppose
55 Support 4It Oppose
Support ly0 Oppose
1 3( Support 1_a Oppose
13a
Support
�5
Oppose
Transportation
Funding
q _
Support
Oppose
_7
Support
Oppose
a
Support
1 D
Oppose
Lai
Support
Oppose
!
Support
1
Oppose
Should the League introduce tax
increment finance legislation
Should the League oppose legis-
tion that would make current
voting equipment obsolete
Should the League oppose
legislation mandating a local
government election day
1. Separate Board of Adjustment
2. Change definition of undue
hardship
3. Requirement for comprehensive
plan
4. Prohibit conditional zoning
5. Zoning controls consistent
with comprehensive plan
6. Change the ability of cities
to extend subdivision
regulations
7. Fringe Area Growth Proposal
1. Metro Sales Tax
2. Gas Tax Increase
3. MVET Transfer/Dedication
4. Jurisdictional Reassignment
5. Changing the 62/29/9
allocation forumla
LMC LEGISLATIVE ISSUE VOTING CARD RESULTS (cont'd)
Homestead Credit Program
,-:71 Support Oppose
Levy Limit Legislation
r Yes No
Changes to or new homestead
credit program
Should the League make the
removal of levy limits an
"A" priority
City Service Charges for Tax -Exempt Property
a4g Yes 6Z No Should cities be able to
voluntarily impose service
charges on tax-exempt property
Relative Tax Burdens for Certain Types of Pro ert
Residential Homestead taxes are:
14q Too High a 1 (D About Right 14:7 Too Low
Residential Nonhomestead/Apartment taxes are:
140 Too High ►a5 About Right c�n_ Too Low
Agricultural Homestead taxes are:
_4k Too High 150 About Right _Q4 Too Low
Commercial/Industrial taxes are:
ieq Too High �5 About Right _110 Too Low
Local Option Taxes
Yes r7l No
Should the League support
local option taxes?
A9r-
IX.; [ itirersit-v :eve. E., St. Paul, AIN 55101-2526 (612) 227-5600
ACTION ALERT October 27, 1981 For further information
contact: Ann Higgins
Federal Liaison/P.D.
CITIES MUST INSIST THAT CONGRESS REACH FY136 BUDGET AGREEMENT TO
PREVENT CUTS 1N FUNDS OR SHIFT IN TAX BURDEN TO LOCAL LEVEL
Signs are visible once again that cities are likely to take the full
brunt of failure in Congress to resolve budget and deficit reduction
issues. City officials must act now to make clear the serious impact
such failure will have on local tax rates, as well as on maintenance
of current programs and the ability of the city to make public
improvements, attract business and employment opportunities, and pay
the increasingly higher cost of complying with federal mandates.
Please contact your member of Congress as well as both Senators
Boschwitz and Durenberger to explain exactly how federal deficit
reductions will affect your city. Check to see if your member of
Congress will be in the district between now and November 20. If
so, take the opportunity to have him meet with local officials and
city residents to explain what is happening to the budget for
city programs and exactly how the Gramm-Rudman "fix" works, what
it will mean your city and others in the state, and what the impact of
the tax on municipal vehicles would mean to local taxpayers.
NOTE: Please contact me if you are planning to talk directly with your
Congressman or either of our two Senators about these issues. It
is helpful to know both the plans and the outcomes of those
discussions.
If Congress and the Reagan Administration fail to reach agreement
on a combination of budget and tax issues, cities face another
round of Gramm-Rudman deficit reduction cuts in federal funding for
the following programs:
Community Development Block Grants
Wastewater Treatment Construction Grants
Economic Development Administration (EDA) grants
Assisted housing funding, including Section, rental rehabilitation,
rural housing programs, public housing
operating subsidies, low and moderate income
housing
Highway and transit funding
Urban Development Action Grants
(OVER)
Job Training Partnership Assistance Grants
Airport construction and safety grants
Federal funds already "in the pipeline" to cities have been held back,
deferred as of October 20, as a result of the Gramm-Rudman deficit
reduction requirements. Under the sequester as it is called, a total
of 8.5 percent of the funding for all city programs is withheld as
of now, pending the final sequester report due on November 20. If
there is no compromoise or alternative deficit reduction package by
that date, the final sequester report would be retroactive to the
action initially taken on October 20.
While the sequester applies to all municipal programs, it does not
&Pply to fy'87 federal funds nor to situations where the city has a
pre-existing binding contract - such as under Section 8 low income
housing assistance.
It is important to take time now to evaluate how these withdrawals
of federal funding will affect your community and residents in the
months to come. Preparing contingency plans that assume that
Gramm-Rudman cuts will become final is prudent at this point. It is
also extremely important to relay such information directly to members
of Congress who represent your city and the people who live there.
It is also important to inform affected constituencies within the
city and urge them to contact members of Congress to make clear how
cuts will impact needed services and programs.
You must also consider what will happen if Congress supports imposition
of tax changes that increase local government costs. Once again,
city officials must act quickly to emphasize the impact of requiring
cities to pay federal gas, excise and annual use taxes on municipal
vehicles; to extend mandatory Medicare coverage to currently exempt
employees beginning January 1; and forcing cities to face a loss of
8.5 percent of federal funds for FY'88 city budgets (as well as
payments cities are scheduled to receive between now and the end of
1987).
The following information will help you evaluate the cost increases
that will result from imposition of tax changes listed above:
User Fee
Rate as of October 1, 1987
Gasoline 9 cents/gallon
Gasohol 3 cents/gallon
Diesel 15 cents/gallon
Other special fuels 9 cents/gallon
Tires U-40 lbs., no tax
over 40-70 lbs., 15 cents
per lb. in excess of
40 lbs.
Truck and trailer sales
Heavy Vehicle Use
over 70-90 lbs., $4.50
+ 30 cents per lb. in
excess of 70 lbs.
over 90 lbs., $10.50 +
50 cents per lb. in
excess of 90 lbs.
12% of retailer's sale
price for trucks over
33,000 lbs. gross wt.
(gvw) and trailers over
26,000 lbs. gvw
Annual tax: Trucks
55,000 to 75,000 lbs.
gvw, $100 plus $22 for
each 1,000 lbs. (or
fraction thereof) in
excess of 55,000 lbs.
Trucks over 75,000 lbs.
gvw, $550
Reconciliation legislation that combines spending and tax proposals
for FY188 may reach the House floor for a vote. In both the House
and Senate, Republican members of Congress have thus far refused to
participate in developing tax proposals on the grounds that sufficient
spending cuts have not been made. Some congressmen are even arguing
that triggering of Gramm-Rudman cuts is an outcome they are willing to
accept rather than try to work to encourage a compromise settlement on
on budget and tax issues.
The fact is that such a position will unduly and unfairly impact
local government because all federal funds for city programs are
targeted by those cutbacks while 96 percent of total federal spending
is exempt from deficit reduction requirements. Members of Congress
must be called to account for their votes in support of such action
when it results in a shift of costs to local taxpayers.
Democrats in Congress are also taking part in action that will result
in increased costs to local taxpayers. On Wednesday, October 7, House
Democrats caucused an agreed to eliminate the exemption for all state
and local vehicles from federal gas, excise and annual use taxes. That
tax change would probably go into effect January 1, although h the
President had recommended earlier that it be effective October 1 (1987).
Please take this opportunity to examine local cost increases of these
and other changes the city has had to respond to over the past year
or more and relay that information to members of the Minnesota
Congressional Delegation. Across-the-board cuts in programs for
cities is simply an unfair and unacceptable method of deficit
reduction. Failure to address the shifting of government burdens
to the local level without funding to help cities pay the cost does
not reduce the tax; it merely alters where it is imposed.
imr-
18.3 1 "nii-ersity .- iv. E. , SI. Pain, AIN 55101-25 26 (612) 227-5600
`.'PO: Mayors, Managers and Clerks
FROM: Joel J. Jamnik
RE: Occupational Safety and Health Standards (OSHA) Rules.
A public hearing on revisions to several OSHA regulations has been
scheduled for 9:00 a.m., November 12, 1987 in Room 5 of the State
Office Building.
City officials may testify at the hearing or may submit written
comments to Administrative Law Judge Peter Erickson, Office of
Administrative Hearings, Fourth Floor Summit Bank Building, 310
Fourth Avenue South, Minneapolis, MN 55415. Those wishing to submit
written statements should send three copies to Mr. Erickson.
The rules as proposed are attached to this action alert. For the most
part they seek to provide protection to employees working in confined
spaces and may result in additional equipment and personnel costs for
mployees including cities. I have placed asterisks before and
underinied those sections that will most likely interest city
officials. Please contact me if you have any questions.
(OVER)
Rules as Proposed (all new material)
5205.0116 CARBON MONOXIDE MONITORING.
Subpart 1. Internal combustion engines. The employer shall monitor environmental exposure of employees to carbon mono 'de
whenever intgmidl combustion engines • re operated indoors to ensure that carbon monoxide levels do not exceed those Eiven to Code
o ederal Regulations, title 29, section 1910.1000. Table Z.-1. The air sampling shall he done at least bimonthly and represent
exposures during a day of highest usage in the areas where carbon monoxide exposure is most likely.
Subp. 2. Lift trucks. Where the carbon monoxide source is lift trucks, the employer shall ensure that engine exhaust gases do
not contain more than one percent carbon monoxide for propane fueled trucks or two percent carbon monoxide for gasoline fueled
trucks.
5205.0401 EFFECTIVE DATE.
Parts .5205.04(N) to 5205.0590 apply w the construction, installation, alteration, and operation of all the installations listed in part
520.5.0400, which are constructed, installed, or altered within the limits of the state of Minnesota after the effective date of these
codes.
5205.0675 COVERS AND OVERHEAD DOORS.
All covers and horizontal, sliding, and overhead doors of sufficient weight or pressure to cause crushing inlury to employees in
the event of their powere or un were c osure shall be provided with a constant pressure closing switch, safety edge, or pressure
retie mec h anism.
5205.0710 ALTERATION OF TOOLS AND EQUIPMENT.
All tools and equipment, whether powered or manually operated, shall be used only for their intended purpose. Tools and equipment
shall not he altered, modified, or used fix other than their intended purpose without the manufacturers written approval.
5205.0755 POLICE AND PATROL VEHICLES.
All police and atrol vehicles that are mark • ccordance with Minnesota Statutes section 169.98, that may be used to transport
vio at— o fenders shall be vrovided with an effective barrier between the front and back seat to protect the officers fron assault.
The barf1e'r may he retractable so as not to be a hindrance to officers when not transporting violators or offenders.
5205.0865 MACHINE CONTROLS AND EQUIPMENT.
On machines with points of operation, pinch points, or nip points, a mechanical or electrical power control shall be provided on
each machine to make it possible for the operator to cut off the power from each machine without leaving the position at the point
of operation.
5205.0890 MOTOR START BUTTON.
The motor start button on machines shall be physically protected against unintended operation.
CONFINED SPACES
5205.1000 SCOPE.
Parts 5205.1(0) to 5205.1040 prescribe minimum standards for preventing employee exposure to dangerous air contamination or
oxygen deficiency, as defined by part 5205.1010, within such spaces as silos, tanks, vats, vessels, boilers, compartments, ducts,
sewers, pipelines, vaults, bins, tubs, pits, and other similar spaces.
Parts 5205. ION) to 5205.1040 do not apply to underwater operations conducted in diving bells or other underwater devices or to
supervised hyperbaric facilities.
5205.1010 DEFINITIONS.
Subpart I. Confined space. "Confined space" is defined by the existence of the following conditions:
A. dangerous air contamination or oxygen deficiency may exist or develop; or
B. emergency removal of a suddenly disabled employee is difficult due to the location or size of the access opening.
Subp. 2. Confined space entry. "Confined space entry" means any action resulting in any part of the employees face breaking
the plane of any opening of the confined space, and includes any ensuing work activities inside the confined space.
Subp. 3. Dangerous air contamination. "Dangerous air contamination" is an atmosphere presenting a threat of death or acute
injury, illness, or disablement due to the presence of flammable, explosive, toxic, or otherwise injurious or incapacitating substances.
A. Dangerous air contamination due to the flammability of a gas or vapor is defined as an atmosphere containing the gas or
vapor at a concentration greater than ten percent of its lower explosive (lower Flammable) limit.
13. Dangerous air contamination due to a combustible particulate is defined as a concentration greater than ten percent of the
minimum explosive concentration of the particulate.
6)
C. Dangerous air contamination due to atmospheric concentration of any toxic, corrosive, or asphyxiant substance listed in
Code of Federal Regulations, title 29, part 1910, subpart Z, above the listed numerical value of the permissible exposure limit
(PEL). In addition, an atmospheric concentration above the numerical limit listed on the Material Safety Data Shea prepared in
conformance with Code of Federal Regulations, title 29, section 1910.1200(g)(2)(vi) or the Minnesota Employee Right -to -Know
Standards, chapter 5206.
D. Dangerous air contamination that presents an acute illness hazard represents an atmospheric concentration immediately
dangerous to life and health (IDLH); for example, above a maximum concentration from which one could escape within 30 minutes
or the length of time an employee will be exposed, whichever is longer, without any escape -impairing symptoms or any immediate
severe health effects. "Immediate severe health effect" means that an acute clinical sign of a serious, exposure -related reaction is
manifested within 72 hours after exposure.
Subp. 4. Oxygen deficiency. "Oxygen deficiency" is defined as an atmosphere containing oxygen at a concentration of less than
19.5 percent by volume.
5205.1020 OPERATING PROCEDURES AND EMPLOYEE TRAINING.
Subpart 1. Implementation. The employer shall implement the provisions of this part before any employee is allowed to enter a
confined space.
Subp. 2. Entry permit system. The employer shall deyelop, implement, and use an entry permit stem that includes a written
Sermit procedure that provides all the means necessary to:
A. determine and identify to employees the confined spaces where entry permits are required to prevent unauthorized entry;
B. determine the actual and potential hazards associated with the space at the time of entry so the employer can choose the
appropriate means to execute a safe entry;
C. assure by appropriate testing that the control measures used are effective;
D. provide for preplanned emergency rescue;
E. identify by job title those persons who must sign the entry permit and the duties of each, including the person in charge
of entry; and
E assure proper calibration of testing and monitoring equipment.
Subp. 3. Entry permit and checklists. A written permit form must he coin leled belixe allowing an employee to enter a confined
�\ space. The written permit must contain the fi)llowing minimum specific intormahon for each permit entry space:
A. date;
B. location;
C. time of issue/expiration,
D. names of employees assigned to enter and name and job title of the person authorizing or in charge of the entry (employer%
representative);
* ! . description of the hazards known ur reasonably expected to be present in the confined apace;
V the aUuosphcric testing required to he done immediately befii,re and during the entry period and the designated individual
rrape�ttsihic lot perlorming the tests:
G. the personal protective equipment required, including respiratory protection, clothing, or harnesses required for entry and
rescue.
11. description of any additional hazards that may he reasonably expected to be generated by the entrants' activities in the
space and identification of all special work practices or procedures to be followed; and
I. specification of all means of isolation, cleaning, purging, or inerting to be done before entry to remove or control those
hazards, or certification that these procedures have been done.
Subp. 4. Duration and retention of permit. The maximum duration for which a permit form may be issued is one da . Each
%ritten permit funs for confined space entry must be retained for a minimum of 30 ays a available at the work site.
Where atmospheric testing showed unacceptable air quality, the employer shall retain, for a minimum of one year, the written
permit form or record showing the results of the atmospheric testing.
Subp. 5. Operating procedures.
A. Written, understandable operating and rescue procedures shall be developed and provided to affected employees. When
respiratory protection is used, a respiratory protection program as outlined in Code of Federal Regulations, title 29, section 1910.134,
shall her in place.
B. Operating procedures shall conform to the applicable requirements of parts 5205.1030 and 5205.1040 and shall include
provision for surveillance of the surrounding area to avoid hazards such as drifting vapors from tanks, piping, and sewers.
Subp. 6. Employee training Employees_ incl u dine standby persons rcuuired by part 5205 1040 subparts I item A and 3item
_"iW1l be trained in operating and rescue procedures including instructions on the hazards they may encounter.
5205.10.10 PRE -ENTRY PROC CURES.
Subpart 1. Application. The applicable provisions of this part shall be implemented before entry into a confined space is permitted.
Suhp. 2. Disconnection of lines. Lines that may convey flammable, explosive, toxic, or otherwise injurious or incapacitating
substances into the space shall be disconnected, blinded, or blocked off by other positive means to prevent the development of
dangerous air contamination or oxygen deficiency within the space. The disconnection or blind shall be so located or done in such
a manner that inadvertent reconnection of the line or removal of the blind is effectively prevented.
This subpart does not apply to public utility gas distribution systems.
This subpart does not require blocking of all laterals to sewers or storm drains. Where experience or knowledge of industrial use
indicates materials resulting in dangerous air contamination may be dumped into an occupied sewer, all such laterals shall be blocked.
Subp. 3. Purging of contaminants. The space shall be emptied, flushed, or otherwise purged of flammable, explosive, toxic, or
otherwise injurious or incapacitating substances.
Subp. 4. Calibration of testing and monitoring equipment. Air testing and monitoring equipment shall be maintained according
to manufacturers' instructions. This equipment shall be periodically calibrated with an appropriate test gas to assure proper operation.
Subp. 5. Air tests. The air in confined spaces shall be tested with an appropriate device or method to determine whether dangerous
air contamination or an oxygen deficiency exists, and a written record of the testing results shall be made and kept at the work site
for the duration of the work. Affected employees or their representatives shall be afforded an opportunity to review and record the
testing results.
Subp. 6. Interconnected spaces. Where interconnected spaces are blinded off as a unit, each space shall be tested and the results
recorded in accordance with subpart 5. The most hazardous condition found shall govern procedures to be followed.
Subp. 7. Ventilation. Where the existence of dangerous air contamination or oxygen deficiency is demonstrated by tests performed
under subpart 5, existing ventilation shall be augmented by appropriate means.
When additional ventilation provided in accordance with this subpart has removed dangerous air contamination or oxygen deficiency
as demonstrated by additional testing conducted and recorded under subpart 5, entry into and work within the space may proceed
subJect to part 5205.1(40.
Proposed Rules
Subp. 8. Ignition sources. No sources of ignition may he introduced into the space until implementation of appropriate provisions
of this section has ensured that dangerous air contamination due to flammable or explosive substances does not exist.
Subp. 9. Oxygen -consuming equipment. Whenever oxygen -consuming equipment is to be used, measures shall be taken to
ensure adequate combustion air and exhaust gas venting.
Subp. 10. Ready access. Provision shall be made to permit ready entry and exit from confined spaces.
Where there is no ready exit from spaces equipped with automatic fire suppression systems employing harmful design concentra-
tions of toxic or oxygen -displacing gases, or total tram flooding, such systems must be deactivated. When it is not practical or safe
to deactivate such systems, the provisions of part 5205.1040 related to the use of respiratory protective equipment shall apply during
entry into and work within the spaces.
5205.1040 CONFINED SPACE OPERATIONS.
Subpart 1. Entry into and work within confined spaces where an atmosphere free of dangerous air contamination or oxygen
deficiency has been ensured. The requirements of this part apply, except as outlined in subpart 2, to entry into and work within a
confined space where dangerous air contamination or oxygen deficiency dues not exist.
A. At least one employee shall stand by on the outside of the confined s • c ready to give assistance in case of emergency.
At least one additional emDlovee who may have other duties shall he within sight or call of the standby employee.
B. Communications (visual, voice, or signal line) shall be maintained between all individuals in the confined space and the
standby employee.
l\
1
C. The standby employee shall not enter the confined space without alerting at least one additional employee of the intent
to enter the confined space. Entry shall only occur after proper tests have been performed to show that a dangerous air contaminant
or oxygen deficiency does not exist or the standby employee is protected as prescribed in subpart 3, items C and D. subitem (1).
Subp. 2. Special entry permits and practices. The entry permit practices described in items A and B are applicable only for the
restricted circumstances and conditions described.
A. Employers whose operations require employees to perforit routine repetitive entry into • lined spaces where entry
hermits are require an tat are unlikely to develop a dangerous air cuntarwnant or uxvven deticicncv and have no potential Ior an
engulfment condition, mav issue an annual permit instead of a separate permit for each entry When work in a permit entry space
is to be one tin er an annual permit, the employer shall:
(1) Establish specific entry practices and procedures that must be followed for entry by annual permit before any employee
may be authorized to make an entry.
(2) Train employees in the practices and procedures required fix such entries.
(3) Assure that whenever entry into a confined space is to be made. employees test the atmosphere before entry using an
appropriate direct reading instrument (or other device capable of quantitatively identifying anticipated contaminants) with a remote
sampling probe, testing for the following conditions and in the following order: oxygen concentration, combustible gas, and suspected
toxic material, if any. While occupied, additional monitoring for these gases or vapors shall be dune during the entry period to
assure that a potentially dangerous atmosphere does not develop in the confined space.
(4) Allow, at the employers discretion, entry by one or more workers without a standby employee where continous,
positive ventilation of 200 cubic feet per minute of clean air and/or sufficient ventilation to maintain the atmosphere within estab-
lished permit conditions is provided to the confined space.
(5) Revoke the permit whenever any test done pursuant to this item shows deviation from permit conditions to more
hazardous conditions. In these circumstances, entry may be made only by an entry permit as outlined in part 5205.1020.
B. Employers whose operations require employees to perform routine repetitive entry into low hazard below -ground chamber
where no risk of engulfment can exist, and where the atmosphere cannot develop a dangerous air contaminant or oxygen deficiency.
and where all known sources of hazard are positively controlled, may issue an annual permit instead of a separate permit for each
entry. When work under these conditions is performed, the employer ,hall:
i (1) Establish specific entry practices and procedures that must be Collowed for entry by annual permit hclore any cinployce
may be authorized to make an entry.
(2) Train employees in the practices and procedures required for such entries.
(3) Allow, at the employer-, discretion, entry by one or more workers without a standby employee when there is assurance
that one or more of the fallowing requirements are stet:
(a) the space has been ventilated Mire entry using a mechanically powered ventilator for not le„ than is specified ui
the ventilation nomograph prepared fir that ventilator, and that ventilation continues throughout the entry:
(b) the confined space is continuously ventilated• such mechanical ventilation shall provide positive ventilation of clean
air at a rate of at (cast 2M cubic feet per minute per occupant and/or six air changes of the confined space volume per hour, or
(c) there is no mechanically powered ventilation but appropriate continuous atmospheric monitoring or frequent
aimospl►cnc testing is performed to assure that permit conditions are maintained.
(4) Revoke (he permit whenever any test done pursuant to this item show, deviation from permit conditions to more
hazardous conditions. In these circumstances• entry may be made only by an entry permit as outlined in part 5205.1020.
Suhp. 3. Entry into and work within confined spaces whenever an atmosphere - free of dangerous air contamination or
oxygen deficiency cannot be ensured. The requirements of this part apply to entry into and work within a confined space whenever
an atmosphere free of dangerous air contamination or oxygen deficiency cannot be ensured through the implementation of the
applicable provisions of part 5205.1030. or whenever due to an emergency, dangerous air contamination or an oxygen deficiency
cannot he prevented through the implementation of the applicable provisions of part 5205.1030.
A. Tanks, vessels, or other confined spaces with side and top openings shall be entered from side openings when practicable.
For the purposes of this part, side openings are those within 42 inches of the bottom.
B Appropriate, approved respiratory protective equipment, in accordance with Code of Federal Regulations, title 29. section
1910.13-4- roviCledand worn.
C. An approved safety belt with an attached line must be used. The free end of the line shall be secured outside the entry
opening. The line shall he at least one-half inch diameter and 2,0(f0 pounds test.
�L D. At least one employee shall stand by on the outside of the confined space ready to give assistance in case of emergency.
At least one ad iitinn:d emyr • who m �y h we other duties s a e wit in sight or ca o e. .
( I ) The standby employee shall ha appropriate. approved, respiratory protective equipment, including an independent
source ol' breathing air that confirms with Code of Federal Regulations, title 29, section 1910.134(d), available for immediate use.
(2) A standby employee protected as prescribed by items C and U may enter the confined space. but only in case of
emergency and only after alerting at least one additional employee outside of the confined space of the emergency and of the standby
employees intent to enter the confined space.
E. When entry must be made through a top opening, the following requirements also apply.
( I ) The safety belt shall be of the harness type that suspends a person in an upright position.
(2) An approved hoisting device or other effective means shall be provided for lifting employees out of the space.
F. Work involving the use of flame, arc, spark, or other source of ignition is prohibited within a confined space (or any
adjacent space having common walls, floor, or ceiling with the confined space) that contains, or is likely to develop, dangerous air
contamination due to flammable or explosive substances.
G. Whenever gases such as nitrogen are used to provide an inert atmosphere for preventing the ignition of flammable gases
or vapors, no flame, arc, spark, or other source of ignition may he permitted unless the oxygen concentration is maintained at less
than 20 percent of the concentration that will support combustion.
(1) Testing of the oxygen content shall be conducted with sufficient frequency to ensure conformance with this item.
(2) A written record of the results of such testing shall be made and kept at the work site for the duration of the work.
(3) Affected employees or their representatives shall be provided an opportunity to review and record the testing results.
H. Only approved lighting and electrical equipment may be used in confined spaces subject to dangerous air contamination
by flammable or explosive substances.
1. Employees working in confined spaces that have last contained substances corrosive to the skin or substances that can be
absorbed through the skin shall be provided with, and shall he required to wear, appropriate personal protective clothing or devices
in accordance with Code of Federal Regulations, title 29, section 1910.132.
Subp. 4. Precautions for emergencies involving work in confined spaces.
A. At least one person trained in first aid and cardiopulmonary resuscitation (CPR) shall be immediately available whenever
the use of respiratory protective equipment is required by this part. Standards for CPR training shall follow the principles of the
✓� American Heart Association or the American Red Cross.
I B. An effective means of communication between employees inside a confined space and a standby employee shall be provided
1 and used whenever the provisions of this part require the use of respiratory protective equipment or whenever employees inside a
confined space are out of sight of the standby employee. All affected employees shall be trained to use the communication system.
The system must be tested before each use to confirm its effective operation.
5207.0300 CONFINED SPACES.
Subpart I . Scope. This subpart prescribes minimum safeguards for preventing employee exposure to dangerous air contamination
or oxygen deficiency within such spaces as silos, tanks, vats, vessels, boilers, compartments, ducts, sewers, pipelines, vaults, bins,
tubs, pits, and other similar spaces. This subpart does not apply to underwater operations conducted in diving bells or other under-
water devices or to supervised hyperbaric facilities.
Subp. 2. General requirements. Work in confined spaces on construction sites shall meet the requirements of parts 5205. I(1l)O
to 5205.1040.
5207.0310 CARBON MONOXIDE MONITORING.
Subpart 1. Internal combustion engines. The employer shall monitor environmental exposure of employees to carbon monoxide
whenever internal combustion engines or unvented space heaters are operated indoors to ensure that carbon monoxide levels do not
exceed those given in Code of Federal Regulations, title 29, section 1910.1000, Table "L-1. The air sampling shall be done during
initial operation and at least bimonthly thereafter and during a period representing highest usage in areas where carbon monoxide
exposure is most likely.
Subp. 2. Lift trucks. Where the carbon monoxide source is lift trucks, the employer shall ensure that exhaust gases do not contain
more than one percent carbon monoxide for propane fueled trucks or two percent carbon monoxide for gasoline fueled trucks.
5207.0610 MOTOR START BUTTON.
The motor start button on machines shall be physically protected against unintended operation.
5207.0620 MACHINE CONTROLS AND EQUIPMENT.
On machines with points of operation, pinch points, or nip points, a mechanical or electrical power control shall be provided on
n each machine to make it possible for the operator to cut off the power from each machine without leaving the position at the point
of operation.
5207.0720 ALTERATION OF TOOLS AND EQUIPMENT.
All tools and equipment, whether powered or manually operated, shall be used only for their intended purpose. Tools and equipment
shall not be altered, modified, or used for other than their intended purpose without the manufacturers written approval.
4))
r
L
CONFIRMING
RECOMMENDATIONS
FOR
CITY OF ALBERTVILLE, MINNESOTA
$250,000
GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1987A
Study No. 3320
October 22, 1987
SPRINGSTED Incorporated
SPRINGSTED
e-,
Public Finance Advisors
85 East Seventh Place, Suite 100
Saint Paul, Minnesota 55101-2143
612.223.3000
October 22, 1987
Ms. Loretta Roden, Mayor
Members, City Council
Ms. Maureen Andrews, Administrator
Albertville City Hall
Albertville, MN 55301
RE: Confirming Recommendations for the Issuance of $250,000 General
Obligation Temporary Improvement Bonds, Series 1987A
These recommendations will confirm the terms and conditions for the issuance
of these bonds, authorized at the City Council's meeting on October 19, 1987.
The bonds are being issued to finance the improvement costs for the 2nd
Addition to Barthel Manor. The size of the bond issue has been determined as
follows:
Construction
$186, 255
Engineering, Contingencies,
Administrative/Legal
37,251
Issuance Costs
8,900
Capitalized Interest (to 12-31-88)
17,500
Subtotal
$249,906
Allowance for Discount Bidding
3,125
Less: Estimated Reinvestment Earnings
(3,031)
Total Bond Issue $250,000
Included in the principal amount of the issue is a provision for capitalized
interest in the amount of $17,500. This capitalized interest is necessary to
fund the June I, 1988 and December I, 1988, interest payments pending the
filing of and the receipt of special assessments. All subsequent debt service
payments commencing with the June I, 1989 interest payment will be paid
from the collection of special assessments.
Also included in the principal amount of the issue is a provision for discount
bidding in the amount of $3,125. This discount, representing $12.50 per $1,000
of bonds issued, will provide the underwriter with all or part of his profit
and/or working capital for purchasing the issue. The City has used this
marketing tool in the past and we recommend its continued use with this issue.
Indiana Office: Wisconsin Office:
251 North Illinois Street, Suite 1510 500 Elm Grove Road, Suite 101
Indianapolis, Indiana 46204.1942 Elm Grove, Wisconsin 53122.0037
317.237.3636 414.782.8222
City of Albertville, Minnesota
October 22, 1987
In addition, we are providing the City with the option of prepaying these bonds
on December I, 1989, one year prior to the scheduled maturity date. This
option will allow the City greater flexibility in exercising its refinancing
options.
We recommend the City issue temporary bonds rather than definitive bonds as
originally contemplated due to the expectation of substantial prepayments of
special assessments. Furthermore, definitive bonds would require a higher
discount and more capitalized interest than do temporary bonds and thus the
amount of the issue has been reduced from $260,000 to $250,000.
Pursuant to Chapter 429, Minnesota Statutes, municipalities are permitted to
issue temporary bonds which mature not later than three years from the date
of issue. Further, such temporary bonds may be refinanced with additional
temporary improvement bonds which second issue also may not exceed three
years in maturity. A third issue, if necessary, would be sold as a definitive
issue. As stated previously, the primary advantage of issuing temporary bonds
is that the City may use prepayments of assessments received over the next
few years to reduce and/or eliminate further financing requirements for this
project.
Consistent with past practices of the City, the interest charged on the
assessments will be at a rate of 1.5% above the net effective rate of the bonds
issued to finance the project. If the City were to issue definitive bonds at this
time, we estimate the net effective rate of the borrowing would be 8.20%.
Therefore, the assessments would carry an interest rate of 9.75%. We
recommend the City establish the rate on the assessments based on what the
City would have received had it sold a definitive issue (see Exhibit III) at the
time it sells the temporary issue. This is a protection to the City in the event
that a definitive issue will be required in future years. It is currently
estimated the City can issue its temporary bonds as a net effective rate of
7.41 %, however, there is no assurance that should definitive financing be
required in the future, such a rate may be achieved. Therefore, as a hedge
against future potential higher interest costs with the definitive plan, we feel
the City would be justified in establishing the assessment rate based on the
estimated rate of definitive financing at this time.
Exhibit I shows the projection of assessment income assuming the assessments
will be filed on October I, 1988. This projection of assessment income does
not take into consideration any prepayments, deferments or delinquencies
which may occur. Exhibit It shows the projected cash flow for the temporary
bond issue. Exhibit III shows the projected cash flow if this were a definitive
issue.
The Tax Reform Act of 1986 established certain arbitrage reporting and
rebate requirements for issuers of tax-exempt obligations. In essence, an
issuer must report and rebate the amount of reinvestment income which
exceeds the income which would have been earned if the some amount had
been invested at the rate of the bonds. However, because the City will issue
less than $5,000,000 of government purpose bonds in this calendar year, it is
exempt from the reporting and rebating requirement.
Page 2
City of Albertville, Minnesota
October 22, 1987
The Tax Reform Act also restricts the ability of banks to deduct tax-exempt
interest as a carrying expense under certain circumstances in calculating their
tax liability. However, these bonds will be qualified bonds which can be
included in a bank's calculations of interest deduction.
We recommend these bonds be offered for sale on Monday, November 16, with
bid proposals to be received at the offices of SPRINGSTED Incorporated at
1:00 P.M. A compilation of proposals received will be made and presented to
the Council for consideration of award at 7:30 P.M. that evening. A
representative of SPRINGSTED Incorporated will attend your meeting to
provide a recommendation.
Respectfully submitted, n
SPRINGSTED Incorporated
/tkf
Page 3
EXHIBIT 1
City of Albertville, Minnesota Prepared October 20, 1987
$260,000 G.O. Improvement Bonds By SPRINGSTED Incorporated
Series 1987A
PROJECTED ASSESSMENT INCOME
Barthel
Manor 2nd Addition
Filing
Date: 10/
1/1988
Filing
Year
Collect
Year
Principal
Interest
@ 9.750%
Total
1988
1989
21,667
31,740a
53,407
1989
1990
21,667
23,237
44,904
1990
1991
21,667
21,125
42,792
1991
1992
21,667
19,012
40,679
1992
1993
21,667
16,900
38,567
1993
1994
21,667
14,787
36,454
1994
1995
21,667
21,667
12,675
10,562
34,342
32,229
1995
1996
1996
1997
21,667
8,450
30,117
1997
1998
21,667
21,667
6,337
4,225
28,004
25,892
1998
1999
1999
2000
21,663
2,112
23,775
TOTALS
260,000
171,162
431,162
a) Includes interest from filing
date to 12/31/1989.
Page 4
EXHIBIT 11
City of Albertville, Minnesota
$250,000 G.O. Temporary Improvement
Bonds, Series 1987A
Dated: 12- 1-1987
Mature: 12- 1
Year of
Year of
Levy
Mat.
(1)
(2)
1987
1988
1988
1989
1989
1990
TOTALS:
Principal Rates
(3) (4)
0 7.00%
0 7.00%
250,000 7.00%
250,000
Prepared October 21, 1987
By SPRINGSTED Incorporated
Total
Principal
105%
Interest
& Interest
of Total
(5)
(6)
(7)
17,500
17,500
18,375
17,500
17,500
18,375
17,500
267,500
280,875
52,500 302,500 317,625
Bond Years: 750.00 Annual Interest: 52,500
Avg. Maturity: 3.00 Plus Discount: 3,125
Avg. Annual Rate: 7.000% Net Interest: 55,625
N.I.C. Rate: 7.417%
Interest rates are estimates; changes may cause significant
alterations of this schedule.
The actual underwriter's discount bid may also vary.
Page 5
EXHIBIT III
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EXHIBIT IV
THE CITY COUNCIL HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
BOND ISSUE ON THEIR BEHALF. SPRINGSTED INCORPORATED WILL RECEIVE PROPOSALS ON
THE FOLLOWING BASIS:
$250,000
CITY OF ALBERTVILLE, MINNESOTA
GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1987A
Proposals for the Bonds will be received by SPRINGSTED Incorporated on behalf of the City of
Albertville, Minnesota on Monday, November 16, 1987, at 1:00 P.M., Central Time, at the offices of
SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101-2143.
Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the
some day.
DETAILS OF THE BONDS
The Bonds will be dated December I, 1987, as the date of original issue, and will bear interest
payable on June I and December I of each year, commencing June I, 1988. Interest will be computed
upon the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the
MSRB. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof
as requested by the Purchaser, and fully registered as to principal and interest. Principal will be
payable at the main corporate office of the Registrar and interest on each Bond will be payable by
check or draft of the Registrar mailed to the registered holder thereof at his address as it appears on
the books of the Registrar as of the 15th day of the calendar month next preceding the interest
payment.
-- The Bonds will mature on December I, 1990.
OPTIONAL REDEMPTION
The City may elect on December I, 1989 and June 1, 1990 to prepay Bonds due December I, 1990.
Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part,
the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at a
price of par and accrued interest.
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 an improvement project
within the City.
TYPE OF PROPOSAL
Proposals must be for not less than $246,875 and accrued interest on the total principal amount of the
Bonds and shall be filed with the undersigned prior to the time set for the receipt of proposals. A
certified or cashier's check in the amount of $2,500, payable to the order of the City, shall be within
24 hours of award filed by the Purchaser with the undersigned or SPRINGSTED Incorporated, the
City's Financial Advisor. The check of the Purchaser will be retained by the City as liquidated
damages in the event the Purchaser fails to comply with the accepted proposal. The City will deposit
the check of the Purchaser, the amount of which will be deducted at settlement. No proposal shall be
withdrawn after the time set for receiving proposals unless the meeting of the City scheduled for
consideration of the proposals is adjourned, recessed, or continued to another date without award of
the Bonds having been made. Rates offered shall be in integral multiples of 5/100 or 1/8 of I%.
Page 7
AWARD
The Bonds will be awarded on the basis of the proposal offering the lowest dollar interest cost to be
determined by the deduction of the premium, if any, from, or the addition of any amount less than
par, to the total dollar interest on the Bonds from their date to their final scheduled maturity. The
City's computation of the total net dollar interest cost of each proposal, in accordance with
customary practice, will be controlling.
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.
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 Holmes & Graven, Chartered, of
Minneapolis, Minnesota which opinion will be printed on the Bonds, 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 1:00 P.M., 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.
INVITATION FOR PROPOSALS
Underwriters may obtain a copy of the Invitation for Proposals by request to the City's Financial
Advisor prior to the receipt of proposals. The Purchaser will be provided with 15 copies of the
Invitation for Proposals.
CITY OF ALBERTVILLE
I'. 0. BOX I I i
Al NLR'l VILI-E, MINNI'tic) I A 55301
11110NI=: (612) 497-1184
LINDBERG TRAVEL
STATE OF MN
MEINY'S DIGGERS, INC.
SHERBURNE COUNTY ABSTRACT
HEALTH CENTRAL OF BUFFALO
SEWER ACCOUNT
MEINY'S DIGGERS, INC.
DON'S AUTO
ALBERTVILLE JAYCEES
WRIGHT COUNTY HIGHWAY DEPT.
KEN LINDSAY (PONTOON SEAT)
MARK MENTH SOD
DISPLAY SALES, INC.
UNITED TELEPHONE SYSTEMS
WRIGHT COUNTY AUDITOR/TREAS.
MONTICELLO PRINTING
EARL F. ANDERSON, INC.
FEED —RITE CONTROLS, INC.
MAUREEN ANDREWS
KEN LINDSAY
MIKE MERGES
LORI RODEN
STATE TREASURER
METRO WEST INSPECTION SERVICE
G.D. LAPLANT
PRINCETON CO—OP
PERA
PERA
INCOME RECEIVED
NOVEMBER 2, 1987
BILLS TO BE PAID
NOVEMBER 2, 1987
SUBTOTAL
SUBTOTAL
$ 10.00
1,763.07
25.00
1,193.88
2,233.00
278.30
25.00
20.00
25.00
$ 11,573.25
35.38
31.78
180.00
7,361.00
124.57
1,688.12
53.75
92.42
48.00
535.47
629.52
310.20
88.18
1,560.67
7,142.58
33.00
41.65
133.42
133.42
$ 20,223.13
Ilv IN vil, th"N' liu'uiri,
MEINY'S DIGGERS, INC.
TRUSS MFG. COMPANY
AUDITOR'S WARRANT
SEWER ACCOUNTS
ADDITIONAL INCOME
NOVEMBER 2, 1987
ADDITIONAL BILLS
NOVEMBER 2, 1987
TOTAL
$ 25.00
23,273.44
2,818.93
227.40
$ 37,918.02
DON'S AUTO $ 330.50
ALBERTVILLE AUTO PARTS INC. 687.11
BUFFALO BITUMINOUS 64.50
GARY SPLETT 50.00
TOTAL $ 21,355.24