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HomeMy WebLinkAboutCC 02-11-1985 MINUTES OF REGULAR COUNCIL MEETING Village of Arden Hills Monday, February II, 1985, 7:30 p.m. Village Hall Call to Order Pursuant to due call and notice thereof, Mayor Woodburn called the meeting to order at 7:30 p.m. Roll Call Present: Mayor Robert Woodburn, Councilmembers Dale Hicks, Nancy Hansan, Gary Peck, Thomas Sather None Treasurer Donald Lamb, Clerk-Administrator Charlotte McNiesh Absent: Also Present: I Approval of Minutes Motion was made by Hicks, seconded by Peck, that the minutes of the Council meeting of January 28 be a,proved as mailed. Motion carried unanimoullly. (5-0) Business From The Floor None I Request for Time Extension. PUn Concept Approval. Arlo Lien, North HeiRhts Lutheran Church Mr. Lien stated that his organization would like to request a 60 day extension of their PUD Concept Approval. He plans to have all documentation complete by March 13, and to be on the Planning Commission agenda April 3, with plans to begin construction this spring. He reports their plans are virtually com- plete, but they want to meet with the Parks and Recreation Committee (plan to do this February 26) before submitting plans. Woodburn asked if City code specifies limit on number of time extensions that can be granted on a PUn; McNiesh stated she knows of none. Woodburn also questioned if a 60 day exten- sion would be sufficient; Mr. Lien was confident they would be ready in 60 days. (McNiesh stated that original time would be up on February 27; extension would be 60 days beyond that date.) I Hansen moved that Council Irant a four-month time extension for the PUn Concept Approval for North Beilhts Lutheran Church. Motion carried (4-0) Hicks opposed. State Charitable Gamblin. License Application - Wm. MunKer, Jr., Multiple Sclerosis Society Applicant is requesting license from State Charitable Gambling Control Board to operate pull tab sambling lame at the Big Ten Supper Club. McNiesh stated that his application was sent to the City for review; City has thirty days to pass a resolution approving this request, or not approving of this request. Peck asked if City has any resolutions at this time governing this type of activity; there are none, there have not been previous requests of this type. If no action is taken at this meeting, by this Council, the State will ap- prove or disapprove license application as it sees fit. ..... Hicks asked if State would grant license if this Council passes a Resclution disapproving of it; McNiash stated it was her understanding that they would bow to the wishes of the City. He also asked if this is anticipated to be a permanent, or temporary activity. Mr. Munger answered that this particular license is for one year; depending on how well it goes, it probably would be on-going. His operation will be patterned after many in North Dakota; he stated that many fraternal clubs in this area are using pull tabs as fund raising activities. ~ In answer to question as to how much the Multiple Sclerosis Society netted out of each dollar walered by participants, Munger explained that out ot each $1,000 wagered, about $750 is paid out to participants, 10% of the re- mainder goes to the State for Performing Arts School, the remainder to the Multiple Sclerosis Society. In answer to further query from Woodburn on actual direct funds to MS, Munger said that overhead costs of the Society are estimated not to 8Kcaed 30% of this, and hopefully will be less. Minutes of Regular Council Meeting Page two February 11) 1985 Hicks asked about amount of space required at the Big Ten for this operation. Hunger estimated it as about 8 feet by 5 feet; he will have a paid employee operatin, it, Bi. Ten i. paid for the .pace. Mun,er alle.e. havin, an opera- tion of this type in an establishment will increase patronage, thus increas- ing business in the community. Hicks asked if they would be trying to operate in other bars in the areal Hunger could not answer at present, probably will wait to see how this one goes, plan to approach only establishments where liquor is served since they do not feel this activity appropriate in places children might frequent. In answer to further query from Hicks, he stated that any non-profit organization can apply for a license under new State law. Peck asked if other applications would pass .through this Council, or be automatically granted by State, and if we are assuming any liability by approving this type of thing? McNiesh said that all applications come to the Council, and liabilities, if any, will be assumed by the State. The Multiple Sclerosis Society.is required to have a fidelity bond, and all employees are bonded. Hunger further stated that the Council, under State law, does not have the power to authorize a site, but does have the power to restrict one. Council asked length of time license would be in effect; it is understood to be one year from date it is granted. Munger added that he feels his organization has the resources and personnel to be sure "it is done right". Sather asked if they would be required to furnish financial information to the State. Munger reviewed the accounting process used; detailed financial statements are required by the State under license obligations. Woodburn asked if~e .uld have specific financial information about the results of the Big AO ion at the end of a year; Munger replied they would have, and wil furnish this plus a complete breakdown on how the money ia spent, to the City. Hicks stated he would feel more comfortable if there were some guidelines established on numbers of these operations that would be allowed, or would be applying for permission, would like to see a limit on it. Sather felt, in terms of how many participated, there would probably be a "wait and aee" attitude at the inception of this new law. Peck asked if this were the only chance the City would have to act on this; if there is some problem, could actions be taken by the City. Munger stated that if there are any problems, City will have the right to pass further re- strictions. It was moved by Hicks, seconded by Sather, that Council adopt Resolution No. 85-11, ALLOWING MULTIPLE SCLEROSIS SOCIETY TO OPERATE A STATE GAMBLING (CLASS B) LICENSE ACTIVITY IN THE BIG TEN SUPPER CLUB. Motion carried. (5-0) It is understood that this is a one year license, to be re-evaluated before renewal. Interview - Bond Counsel/Financial Consultant Following Council instructions of January 28th meeting, McNiesh had dis- tributed proposals from all applicants for this/these positions to Council, then polled Council concerning interviews. Accordingly, three applicants have been invited to this meeting. Thomas Deans - Mr. Deans, Knutson, Flynn and Hetland (former Popovich firm) proposes representing Arden Hills as financial consultant and bond counsel; noted his firm is one of very few acting as both', currently represents several local cities plus school districts throughout the state. He pro- posed performing all duties involved in these positions. He feels there are advantages in having a lawyer involved in financial consulting phase should an assessment be challenged; his firm would act in conjunction with separate bond counsel on this, further feels his firm is more in tune than most with what the Court of Appeals and Supreme Court is requiring. His firm has also acted as special counsel in Industrial Revenue Bond financ- ing (intermediary person who makes sure all procedures are followed correctly) and that the City's interests are protected), does not bring IRB applicants to the City, but will act as co-counsel if needed. These fees are always paid by the applicant. I I I '-- ...- I I I -' ,---- . Minutes of Regular Council Meeting Page three February II, 1985 Questions Council asked of Mr. Deans included: Is it possible for your firm to represent Arden Hills totally, without an addi tional bond counsel (on a bond issue). ... Yes, but prefers not to, do bond counsel work for IRB's, feels he can serve City better as special counsel with Briggs and Morgan as bond counsel on IRB's. Is your firm recommending lawyer-based financial consultant7...Yes, feels this is advantageous. Where do you have bonds printed7...Midwest in Chicago, usually, but will probably put it out for bids this time. Does the time frame of May 1 bond issue work for you; do you have time to do this, advise on marketability7...Yes, if started immediately, has worked out time table with McNiesh. Do you think there is any conflict of interest in both selling bonds and being underwriters7...No definite answer. How many issues do you do in an average year7...Probably 12 to 15. Structuring bonds seems to be a big issue; do you feel your firm has no trouble in structuring bonds7...Does not feel so, feel they have the computer capability. Will involvement of City staff be the same (in preparation of prospectus) as on previous bond issues7...Essentially, yes. Steve Mattson, Zeta Kennedy - Juran and Moody - Firm has been in business since 1939, is a municipal bond firm of 125 employees, primary business is underwriting municipal bonds; financial consulting division is separate divi- sion, has been operating since 1959, approximately 150 cities and school districts currently use their services. He emphasized their extensive computer capabilities, prepare electronic spread sheets, structuring issue payments to coincide with anticipated cash flow, etc. He has done some cash flow projec- tions with Arden Hills' temporary bond issue, have put a "phantom" issue together, only thing they would need in addition, if they are chosen for the upcoming May 1 bond issue, is updated numbers on sinking funds. If they are selected, they would prepare package for Moody Investment Services...City currently has an A rating; Mr. Mattson thinks it would be at least an A, possibly an A-I credit rating for this issue. They would also put together the "Official Statement" needed for bond issue, attend bond sale and determine best bid, and recommend acceptance or rejection. He pointed out that there is a very favorable bond market right now (and probably for the next month or two) would recommend the City move as rapidly as possible on this issue to take advantage of this, says his firm could have the issue sold within 30 days, have funds available to the City in an addi- tional 17 to 18 days (50-60 days total). If City were to actively consider new water tower, they have computer software to show best financing method. Questions asked of Mr. Mattson included: What is expected net interest rate right now...8.3% today, this changes daily. In view of no attorney on staff, do you recommend using City attorney for assessment hearings, etc7...Mattson stated his firm separates financial consulting from bond work, usually work with Briggs and Morgan doing reSO- lutions calling for bond sales, the legal opinion, bond printing; when it comes to assessment hearings etc., this is typically the city attorney's job. He added that his firm would be happy to spend the time analyzing any future issue without any charge. . '""', Minutes of Regular Council Meeting Page four February II, 1985 Would City's involvement (i.e. staff time) with you be greater than with other firms?..Need Clerk's year-end financial statement, audited '83 statement, cash position on bonds, demographic data, etc. They can secure data from County or other sources if not readily available at City's office. Assessment hearing would be conducted by City Attorney then?..Mattson replied they sometimes attend Public Hearings to provide financial informa- tion, if you felt you wanted him. City Attorney would do legal work. Do you see any conflict of interest in both selling and structuring the bonds and underwriting them?..Not at all, being underwriters makes us aware of the market, what's selling, best ways to sell, would not bid on Arden Hills bonds unless for some reason City specifically requests they do. BriRRs and MorR~n, Mary Ippel I This firm has acted as bond counsel for Arden Hills in the past, with Popovich as financial consultant. She has worked exclusively with municipalities in the. past ten years in issuance of general obligation bonds and in industrial revenue bond area, do not do a lot of fiscal consulting work, are capable of doing it, but feel a firm devoted exclusively to that is more appropriate.' Tradition in industry has been to have these split. Bond counsel would I prepare resolutions calling for sale of bonds, prepare resolutions accepting the bid on the bonds, and prepare various closing certificates and opinions that have to be rendered at closing to the purchaser of the bonds. They also review all improvement proceedings which a city must follow before it has the authority under state law. to issue bonds, to make sure they are valid and the bonds will be tax exempt. If they are asked, can prepare necessary proceeding for the special assessments; this has traditionally been role of City Attorney, but they can do it, or help City clerk in any area. Questions asked of Ms. Ippel were: Would you prefer to act as financial consultant or a bond counsel...she stated she would prefer to act as bond counsel, her area of expertise. Feels City would get "more for its money" having financial consulting done by a I firm that does nothing but this, and bond counselling by a firm that does mostly that. Council asked definition of "structuring" bonds...Ippel replied that State allows 30 year bonds, market will not buy 30 year fixed rate security, what financial consultant has to do is figure out what's selling, what Village's assessments are, and determine maturity and pre-payment penalties, length of bond issue, etc. In how many cases has your firm acted as financial consultant? About 5 per year. This concluded interview portion of meeting. In following discussion, Hicks stated he was impressed with Juran and Moody presentation, and after discussion with Mary Ippel, evidence seems to indicate that someone who deals exclusively in financial consulting area could best serve City as financial consultant. Peck noted that, with the way the market is going, expertise of financial consultant would be very valuable. Hansen concurred with these remarks. Council further discussed conflict of interest problems, felt it need not be a concern. Woodburn noted accep- tance of these proposals seems to require more of Mr.Lynden's services. I.. ,.- It was moved by Hicks, seconded by Peck, that Council secure the services of Juran and Moody as financial consultant for the current bond issue to be considered in the next four to five weeks. Motion carried. (5-0) In dis- cussion, it was noted that it is understood that they will be working with Briggs and Morgan as bond counsel. . I I I -- " ~M.'" . Minutes of Regular Council Meeting Page five February II, 1985 Cable TV Woodburn stated that the Village of Mounds View is rapidly reaching the point where it will be approving the Franchise Amendment for Cable TV; Arden Hill's continued non-approval means delay of payment of Group W's monieS to North Suburban Cable Commission. Community sentiments seem to indicate it would be wise not to be seen as lone dissenter in passage of this amendment. Froslid, representing the Cable TV Advisory Committee, stated this Committee had withheld recommending earlier approval because of some questions it had as to whether construction was complete as required by November 12 (a tech- nical report furnished to the Committee did not provide sufficient information to determine this), and had felt there was no advantage to be gained in approving the amendment, and possible disadvantages. Given information he has now, he would personally recommend approval. A poll of this committee's members conducted February 8 and 9 indicates 6 approving acceptance, 2 unavailable, and 1 not recommending approval. Hicks asked if approving the amendment would jeopardize our ability to take legal actions against Group W for non-performance in the future. Actions before November 12 construction completion date could not be contested, any later still could be. Motion was made by Hicks, seconded by Hansen, that Council adopt Resolution No. 85-10, RESOLUTION APPROVING CABLE COMMUNICATIONS OFFERING AMENDMENT AGREEMENT NO. 1 AND AUTHORIZING MAYOR AND CLERK-ADMINISTRATOR TO EXECUTE THE SAME ON BEHALF OF THE CITY. Motion carried unanimously. (5-0) It was moved by Hansen, seconded by Hicks, that Council dispense with reading of Ordinance 233 and adopt Ordinance No. 233, AN ORDINANCE AMENDING ORDINANCE NO. 226, THE CABLE COMMUNICATIONS ORDINANCE, BY ALTERING THE PROVISIONS THEREIN RELATING TO CHANNEL CAPACITY, TWO-WAY CAPACITY, FACILITIES, SPECIAL CHANNEL AND ACCESS REQUIREMENTS, CONSTRUCTION COMPLETION DATE, AND RATE CHANGE PROCEDURE. Motion carried unanimously. (5-0). Motion was made by Sather, seconded by Peck, that Council grant approval to publish Ordinance Summary. Motion. carried unanimously. (5-0). Dumpster Screenin!! Plan, Arden Plaza City has been working with Arden Plaza for over a year to develop an accepta- ble screening plan for dumpsters in the rear of the plaza. C. G. Rein is now proposing to screen each store's dumpster individually with fencing as most economical plan. McNiesh stated that original landscape plans called for large dumpster at one end that would be screened. As tenants moved in, each put in its own trash container, and the area became unsightly and badly maintained. Since complaints have been made to C. G. Rein, this area has been cleaned up considerably. Motion was made by Hicks, seconded by Hansen, that Council approve the plan and determine this screening for eight dumpsters in the back of Arden Plaza to be in concert with the Zoning Ordinance for screening dumpsters. Motion carried unanimously. (5-0). En!!ineerin!! Report re RCWD Grant Application to Improve Water Qualitv in Lon!! Lake Chain Council reviewed Christoffersen letter, 2/4/85, on this subject, and sug- gested joint meeting with Roseville Council since some of the work included may be desirable to Arden Hills. Hicks noted plan includes installation of public boat ramp on Lake Josephine, asked if DNR has authority to do this without consent of adjoining villages. Woodburn stated they probably do, but historically have chosen not to exercise it, prefer Village concurrence in decisions of this nature. Hicks also questioned philosophy of applying for grant money "because it's available", suggested meeting would be desirable to explore need for all of these improvements. Hansen stated she felt the dredging is probably needed, questioned need of chemical treat- ment and fish restocking. Hicks noted Oasis pond (suggested for dredging) Minutes of Regular Council Meeting Page six February II, 1985 is located in Roseville; could this be done by Roseville instead of with federal funds? Council asked Clerk-Administrator to contact Roseville City Manager to see if they would be willing to have a joint meeting, and to research possible dates. Final Payment and Acceptance of.Revisions to Lift Station No.2 Project It was moved by Hicks, seconded by Peck, that we accept the project and approve the final payment of $16,338.38 for Lift Station No. 2 as recommended by Engineer. Motion carried unanimously. (5-0) . -~ Appointment - Representative to Lake Johanna Volunteer Fire Department's Relief Association Board of Directors This Board meets quarterly,. reviews actuarial reports and income reports. I State mandates each member city have one representative. 'Hansen stated that she had requested not having this appointment since she has no previous background, and, at Fire Board meeting, it had been suggested that City representative to this body not be the same as representative on Fire. Board. However, Shoreview and North Oaks did appoint the same person. Mayor Woodburn stated he would like to appoint Gary Peck to represent Arden Hills I on this Board of Directors. Motion was made by Hicks, seconded by Sather, that Council ratify the Mayor's appointment of Gary Peck as representative to this Board. Motion carried unanimously. (5-0) Criteria for Continuina Neaotiations - Third Fire Station Hansen indicated that only differences in the document currently being discussed are: Item 2, Cost of Construction, added "not to substantially exceed $596,000, earlier said cost of construction and equipment. Hansen noted, if LJFD has a surplus, they perhaps could purchase equip- ment. Assumes cost of construction includes land. Item 5 add "It is the intention of the cities that the Fire Depart- ment be compensated for the services rendered" Item 6, add "that the cities be provided with general budget infor- mation". Item 4, add "determine a formula for the compensation of two of the cities where the third wants to buy station from the other two". Council concurred they would like Attorney Lynden to continue to monitor negotiation documents. Other Business Peck asked about State Privacy Act; noted City of Mounds View had ben asked to furnish sewer and water records for addresses, asked if this could be a concern for Arden Hills. McNiesh stated all of our address lists are open; do not have lists of utility accounts; will check with Village Attorney if we receive a similar request for mailing labels. Hansen presented letter of resignation from Public Safety Committee by Dave Prevallet due to meeting time conflict. Motion was made by Hansen, seconded by Sather, that a letter thanking him for services be sent, and that he be asked if he could serve on a committee on some other evening. Hansen reported she has a conflict with next Fire Board meeting on February 13. Mayor Woodburn will attend for her. Hansen attended all-day meeting Saturday, February 9, for new council people, found it very informative. I L r ",4 , . , I I ..I . Minutes of Regular Council Meeting Page seven February II, 1985 Ramsey County League of Local Governments meeting will be held February 20, will discuss "Payments for Convention Center - Role of Municipalities". Hansen will attend this. Woodburn noted that our Senators may be interested in hearing our opinions about Federal Revenue Sharing. Report of Clerk-Administrator Charlotte McNiesh Restaurant License Approval - It was moved by Sather, seconded by Peck, that approval be granted for license for restaurant at Honeywell Building No. 503. Motion carried unanimously. (5-0) Rental Rehabilitation ProRram - Minnesota Housing Finance Agency Council determined that, since the City has virtually no rental property, City should decline being a part of this program. Claims and Payroll - It was moved by Hansen, seconded by Peck, that Council approve the claims and payroll as submitted. Motion carried unanimously. (5-0) McNiesh reported that Mr. Vaughan has withdrawn his application for amendment to Special Use Permit, and Mr. McGuire has withdrawn his appli- cation for pun Concept Approval. Ad;ournrnent Motion was made by Hicks, seconded by Hansen, that the meeting be adjourned at 11:10 p.m. Motion carried unanimously. (5-0) CZt~f7I$iuL Charlotte McNiesh Clerk-Administrator f}~~~~,,~/ Robert Woodburn Mayor NOTICE OF MEETING The next regular Council meeting will be held on Monday, February 25, 7:30 p.m. at the Village Hall. .