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HomeMy WebLinkAboutCC 05-23-1983 , .' Minutes of Regular Council Meeting Village of Arden Hills Monday, May 23, 1983 - 7:30 p.m. Village Hall Call to Order Pursuant to due call and notice thereof, Mayor Woodburn called the meeting to order at 7:32 p.m. . Roll Call Present - Msyor Robert Woodburn, Councilmen Dale Hicks, Diane McAllister, Michael Christiansen, Thomas Mulcahy Absent - None Also Present - Engineer Donald Christoffersen, Bond Counsel Peter Popovich, Treasurer Donald Lsmb, Clerk Administra- tor Charlotte McNiesh, Deputy Clerk Dorothy Zehm Approval of Minutes Mulcahy moved, seconded by McAllister, thst Council approve the Minutes of the Regular Council meeting of May 9th. as amended. Motion carried unanimously (5-0). Business from the Floor None REPORT OF VILLAGE ENGINEER DONALD CHRISTOFFERSEN Resolution No. 83-27, Approvi~lans and Spe~ifications and Ordering Advertisement for Bids on Impr. No. SS-83-2, Sewer Extension to 1315 Red Fox Road McAllister moved, seconded by Hicks, that Council sdopt Resolution No. 83-27, APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVER- TISEMENT FOR BIDS ON IMPR. NO. SS-83-2, SEWER EXTENSION TO 1315 . RED FOX ROAD. Motion carried unanimously (5-0) (Bid opening at 2:00 p.m. on June 9th at the Village Hall; Council consideration of bids on June 13th). Comments re DNR Permit, Lexington Ave. I~rovement Christoffersen recommended approval of the permit for fill in the two locations as designated (Karth Lake, south of Hwy. 96, and swamp area in arsenal property, north of Hwy. 96). Hicks moved, seconded by McAllister, that Council approve the DNR Permit and authorize execution thereof by the Clerk Administrator. Motion carried unanimously (5-0). . Letter Request - Eibensteiner Christoffersen reported that, because of the wet season, it is almost impossible to obtain proper road compaction; developer has requeated that the roads in Royel Hills and Arden Oaks be sub- graded and compacted as much as possible, and that class V and curbing be installed, then wait until October to add one lift of asphalt; final bituminous lift to be delayed until spring of 1984. Chriatoffersen said the developer wili pay the repair costs for any corrections necessary in the spring. McNiesh noted that the assessment hearing is proposed for this summer; interest was to be plsced on tax rolls for 1984; would need an estimated cost of the improvement to accomplish this schedule. Christoffersen reported that things are beginning to dry out now; project, in all probability, can proceed as scheduled; suggested that Council delay action on the applicant's request to delay the final bituminous lift, pending weather conditions this summer. '. Minutes of Regular Counci I Meeting May 23, 1983 'Page two ~nQlneer's Letter re 1990 Flow Rates Christoffersen reported that he wrote to Metro Councl I (5-18-83) explaining that his 1990 projections (1.56 MGD) were based on estimates of population and per capita flows; consider the esti- mates to be consistent with engineering design standards, but has no objection to Metro Council's use of Its estimates for planning purposes. (1.42 MGD) (Letter to be copied for Councl I) Discussion of Policy Statement and Guidelines for Industrial Revenue Bond Flnancln~ - Peter Popovich Bond Counse I Peter Popovich referred Councl I to draft of suggested Industrial Revenue Financing Policy/Procedural Memo for Council's consideration, which he said is simi lar to that adopted by Rosevllle. . Popovich noted that the purpose of "guidelines" is to assist the City In evaluating proposals; noted that Council may determine not to entertain any applications; suggested that Council look at the guidelines with reference to Arden Hills' particular circumstances; noted that I RB 's are schedu led to go out 9Y 1986. Popovich reviewed the "policy factors" and "guidelines" for consider- ation; noted that the "guidelines" should be a list of preferences which are considered indicative of community concerns and desires. He presented a list of guidelines that other cities have considered: -prefers commercial projects be owner occupied -does not give competitive advantage over existing businesses -project should be compatible with City's overal I development plans -project should not involve excessive demand on City services, or create safety or health hazards. -building be constructed to be multi-purpose, with good design etc. -project should be receptive to surrounding community -applicant should invest personally in the project In discussion of the suggested application requirements, Popovich included: -a non-refundable cash payment of $5,000 to the City at time of application, and -in addition, a $1,000 cash deposit to .be used by City for administrative and consulting costs (balance to be refunded after all costs are paid). -a statement defining the project, showing its compliance with Minnesota Statute 474, In detail, indicating the number of jobs created, yearly payroll anticipated and tax base created -a detailed breakdown of all anticipated costs -furnish certified annual audits for last 3 years -a list of offices and directors, and their biographies -banker's proposed Interest rates . -attorney's opinion regarding the legal description and status of title -construction schedule and time table -envl ronmenta I Impact statement as to effect on surrounding properties -a statement that applicant agrees to pay al I costs Incurred by the City and Its agents If not covered by the deposits. Popovich briefly discussed other conditions for consideration: -Size of Issue - probably not consider Issues of less than $1,000,000 because of costs -2- , . . Minutes of Regular Council Meeting May 23, 1983 Page Three . -Utilities and Assessments - require payment in full of public utility costs for over-sizing etc., as well as all connection and permit charges and previous levied and pending assessments -Private Placement - require private plscement with investors who-WiIl sgree to not circulate or sell, after receipt, in the municipal market -Plans and Specifications - reserve right of finsl approval or disapproval of plans and specs by the Council -Prior Review - not set a public hearing, or adopt any preliminary resolutions until the reports are received -City Consultants - require applicant to pay all costs of consultants, together with City administrative ex- pense, whether or not the City agrees to finance the project -Equity - require applicant to establish and maintain significant equity in the structure and to maintain a reserve balance or desposit with the City. -Guarantee - require applicant to guarantee payment of principsl and interest and premium of the bonds issued -Completion - require completion of the project by the applicant with his own funds should the bond proceeds be inadequate -Hold Harmless - require a bond or insurance to sssure City is held harmless. -Administrative Fee - applicsnt pay the City the sum of $10,000 or 1%~-the amount financed, whichever is greater, to be used by City for any expenses in con- nection with the project, or for any other City purpose -Denial - City reserve right to deny application at any time before actual issuance of bonds without liability to City. -No Assig~m~ - applications shall name the real parties in interest, with no right to assign to any other person or firm -Prime Interest Rate - not consider spplications if prime rate is below 12% Mulcahy asked Popovich whether, In preparing his draft polley and procedure memo, he had talked with Councl I members or staff with respect to its content. Popovich said that he had not. Some of the concerns discussed were: . -special purpose structures, some of which are applicable to another use, whl Ie others may not be; a polley for consideration -federal arbitrage regulations - limits fees you can get; could probably reduce by 1% -adverse effect on existing businesses i~~2~~er con- sideration to be evaluated by Councl 1;~I~'~lnancln~ gives an unfair competitive advantage on a large amount of money. -number of projects financed In this manner In Minnesota? Popovich said he didn't have this Information tonight, but would mal I It to Councl I; noted that not all applications are carried through and not al I prejects are constructed. -number turned down by the State? Popovich said there are virtually none turned down. -Is there any Implied moral or legal obligation for City to take part In this type of financing? Popovich said there Is a practical problem, If there Is a default and City must defend It. -asked Popovich's reaction to the concept that it monies out of competition for private borrowers. said that IRB's are not considered objectionable Investors. -asked Popovich If he thinks the law wll I be extended beyond 1986? Probably, but with restrictions. takes Popovich by private -3- Minutes of Regular Council Meeting May 23, 1983 Page Four -new firms, with no background - how would 3-year audit requirement be applied? Other considerations would have to be evaluated. Mr. Russ Prince (Juran and Moody~ gave Mayor Woodburn copies of IRB Guidelines from 19 Minnesota cities, and circulated to Council Minnesota Industrial Revenue Bond Summary of projects in 1980 - 1983 : 1980 1981 1982 1983 (thru April) 365 projects 413 projects 266 projects 53 projects Prince noted that capital expenditures approved in April 1983 @ $69,855,000 will create 942 jobs (either new, or to remain in Minnesota); noted that a drop in population would not be healthy in Minnesota. McAllister raised a point of order, that Mr. Prince's comments were not germane to the discussion of policy guidelines; noted that Council heard the presentation at a previous meeting; to- night Council wants to consider proposed guidelines. Popovich asked Prince if he had any comments relating to any aspects of the guidelines; are they reasonable? Are the fees reasonable? Prince said the Public Investors' condition is troublesome; pro- tection for private investors can be handled by a Letter of Credit guaranteed by the bank. Prince suggested that a sliding fee schedule be a consideration, rather than 1%. Applicant may have further input, after review of the draft of guidelines. Hicks moved, seconded by McAllister that Council table action relative to the guidelines until the June 13th meeting. Motion carried unanimously (5-0). Proposed Memorial for Co~ncilmaE-1~mes Wingert Maurice Johnson presented a colored sketch of a suggested plan of the flag pole area in front of the Village Hall, consisting of railroad ties bolted together and stained to match the Village Hall, exposed aggregate, plantings and a spotlight on the flag. Johnson said a 12' high triple light is an alternative to the concealed "spot" shown on the sketch (3 "spots" on the flag and 3 "floods" on the ground area). Shirley Wingert said she and her daughter like the plan very much; suggested that a plaque be included. Johnson said he intends that a plaque be flush mounted on the timbers; if design is con- sidered satisfactory, he will take care of the mechanics and de- tails with Shirley Wingert and her daughter; suggested that most of the labor can be handled by the Public Works Department. Mulcahy moved acceptance of the proposal for a memorial for Coun- cilman James Wingert. as outlined in the drawing. Motion was seconded by McAllister and carried unanimously (5-0). REPORT OF VILLArE TREASURER DONALD LAMB Investments 5/16/83 $190,000 at First Federal @ 8.6% interest to mature 8/16/83. Hicks moved, seconded by McAllister, that Council ratify the Treasurer's report. Motion carried unanimously (5-0). -4- , ., . . . . . . . . . Minutes of Regular Council Minutes May 23, 1983 Page Five Finance Committee Recommendations - Inflo/Infiltration Council was referrad to ~utes o~~e-Fi~ance Committee meeting of 4/28/83 recommending that Council notify the residents of the inflo/infiltration problem and describe how sump pumps are con- tributing to the problem; enforce or amend the City Code to pro- hibit sump pump hookups to sanitary sewers; budget $20,000 in 1984 for inflo/infiltration correction purposes. . In discussion, it was explained that the illegal discharge of water into the sanitary sewers is apparently a serious problem in Arden Hills; TV monitoring end smoke tesD;ng will identify where violations occur; City Code irohibita aump pumps,roof draina ate., hookups to tha aanitary aewer. It waa notad that illegal hookups apparently have occurred sfter inspections have been made; enforce- ment of the ordinance provision is therefore difficult, if not imposaible. Concern was expressed re the $20,000 budget figure in 1984. Mulcahy said he feels this should not be financed by a utility rste increase; do not have money for this in the Ceneral Fund. HIcks moved, seconded by Christiansen, that Councl I refer the question of possible ordinance revision to the Public Works Committee for Its study and recommendations to Councl I. Motion carried unanimously. (5-0) Christiansen moved, seconded by McAllister, that Council proceed with the recommendations of the Finance Committee, motion carried. (Christiansen, McAllister, Hicks, Woodburn voting in favor of the motion; Mulcahy voting in opposition). (It was Council's underatanding that the final 1/1 decision will be made at budget time.) Planning Comm~on and Bo~r~_~~als Resignations Christiansen moved, seconded by Mulcahy, that Council accept the resignations of Donald Halva from the Planning Commission, and Martin Crogan from the Board of Appeals and Planning Commission. Motion carried unanimously (5-0). Certificates of Appreciation to be given to Halva and Grogan for their aervice to the City. Town Crier and .!i!~ Brighton Bulletin to note the vacanciea. Summer Playgro~ea~e~ (deferred to meeting of June 13th as per Buckley's memo of 5-19-83) M.R.P.A. SuI!!!!!.!.. Playground Workshop Council was referred to Buckley's memo of 5-20-83. McAllister moved, seconded by Hicks, that Council approve the $9.00 expenditure for the M.R.P.A. Summer Playground Workshop as per memo. Motion carried unanimoualy (5-0). Summer Park Maintenance Employees Council was referred to Buckley'a memo of 5/19/83. . ~lcAllister moved, seconded by Mulcahy, that Council spprove the hiring of the three summer Park Maintenance employees at the same rates es last summer. Motion did not carry (McAllister, Mulcahy voting in favor of the motion; Hicks, Christiansen, Woodburn vot- ing in opposition). (2-3) After further discussion, Hicks moved, seconded by Christiansen, that Council approve the hiring of Kevin Fuller @ $4.40/hr., Douglas Hartman @ $4.20/hr. and Jeff Schlief @ $4.1S/hr. as sum- mer Parks Maintenance employees. Hotion carried (Hicka, Christiansen, Mulcshy, Woodburn voting in favor of the motion; McAlliater voting in opposition. (4-1) OTHER BUSINESS . Letter Request-Ilamon.a_ Lil!,dbom " Latter of 'May 11th 'from Ramona'Lindbolll was referred to Council. -5- . . Minutes of Regular Council Meeting May 23, 1983 Page Six -- . . Mayor Woodburn will reply to letter on behalf of the Council, ex- plaining that the program was not budgeted; there are many other deserving handicapped people, other than the eight referred to in the letter; funding would be an inappropriate use of City Park Fund money. Ramsey County Lea~ue Meet}n~ Christiansen noted that RCL and City Public Works Committee meet- ings are on the same night; he, therefore, has a conflict. Woodburn suggested attendance when possible; noted that all Council members are welcome to attend. " Municipal Code Corporation Letter _ . It was suggested that it may be desirable to update the City Code to reflect current state laws. McNiesh was requested to obtain a cost estimate from Municipal Code Corporation. REPORT OF VILLAGE CLERK ADMINISTRATOR CHARLOTTE MC NIESH Approval of Three Month Leave of Absence - Clerk Typist Council was referred to McNiesh's memo of 5-20-83. Hicks moved, seconded by McAllister, that Council approve the three month leave of absence for Donna Hjortaas from June 6 to August 26, 1983. Motion carried unanimously (5-0). Approval of Temporary Clerk_~.~ Council was referred to McNiesh's memo of 5-20-83. Hicks moved, seconded by Christiansen, that Council approve the hiring of Florence Honan @ $5.75/hr. as temporary clerk typist. Motion carried unanimously (5-0). Apportionment of Assessment Resolutions (Starco/Scott Roberts) , Nos. 83-28. 83-29 and 83-30 Mulcahy moved, seconded by Hicks, that Council adopt Resolution No. 83-28, RESOLUTION RELATING TO APPORTIONMENT OF ASSESSMENTS RELATING TO CONSOLIDATED WATER IMPROVEMENTS 67-1 and 67-2, Resolution No. 83-29, RESOLUTION RELATING TO APPORTIONMENT OF ASSESSMENTS RELATINC TO SANITARY SEWER IMPROVEMENT NO.6, Reso- lution No. 83-30, RESOLUTION RELATING TO APPORTIONMENT OF ASSESS- MENTS RELATING TO IMPROVEMENT NO. ST-81-2. Motion carried unan- imously (5-0). Claims and Payroll Christiansen moved approval of the Payroll, as presented, and two claims (Dodge Truck $7,277.00 and 1982 State Statutes $100.00). Motion was seconded by Mulcahy and carried unanimously (5-0). Adjournment Hicks moved, seconded by McAllister, that the meeting adjourn at 11:04 p.m. Motion carried unanimously (5-0). Notice of Meetings: The next Special Council meeting will be held at 5:00 p.m. on Tuesday, May 31st at the Village Hall. . The next Regular Council meeting will be held at 7:30 p.m. on Monday, June 13th at the Village Hall. ~A~~ Charlotte McNlesh Clerk Administrator ~Mf';4:;~~~ obert L. Woodburn Mayor