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HomeMy WebLinkAboutCCMin_59Aug27REGULAR MEETING August 27th, 1959. r~ c~ gib.. t: The meeting was called to order at 7:30 P. M., the following Council Members being present: Harold C. Nilsen, Mayor; George J. Shavor, Trustee, Paul Coppini, Trustee; and Willis V'Tarkentien, Trustee. Also present were Nick Christensen, Building Inspector, and Frank N. Graham, Village Attorney. Absents William R. Utecht, Clerk. Careof Mayor Nilsen presented the County Attorneys letter of August Prisoners 18th, 1959 enclosin g a proposed contract for the care of prisoners from the Village of Falcon Heights. After discussion, it was moved by Shavor, seconded by Coppini, and unanimously voted the the following resolution be adopted: RESOLVEb, that the Village Council of the Village of Falcon Heights hereby approves the proposed contract with Ramsey County under which Ramsey County will incarcerate and maintain prisoners without charge for the Village of Falcon Heights and its Police Department in the County Jail under such corm ditions as may be prescribed by law, and under the supervision of the County Sheriff fora period of five years from July 1, 1959. Water Plain Mayor Nilsen read a letter regarding the Larpenteur Avenue Water Main and Pumping Station from Attorney Graham, dated August 25th, 1959. Graham stated that the Village has no power to compel an individ- ual to attach to the village main. However, a public place should be under the jurisdiction of the Village Council and compelled to connect to the water main. Robert Hall Graham would give the Robert Hall Company assurances that all Company construction work is expected completed by October 1st; that we would go ahead and repair and we would provide reasonable access ' at'all times. Metropolitan Nilsen read a le+,ter from the Metropolitan Planning Commission Planning Comm. advising of a hearing on its 1960 Budget on Wednesday, Sept. 2, Hearing ~.t 1:30, at the Midway Y. PA. C. A. Greater St: Paul Nilsen read a letter from Dave Cartwright dated August 25, 1959, Safety Council, regarding a meeting of the Greater St. Paul Safety Council, The letter stated in part as follows: "I know at one time we were sending Juveniles to the JP but our speaker stated that this Ras a Violation of the law and that all juvenile traffic violations must be handled by the juvenile officers. Cartwright is trying ~enerate further interest in safety organizing in Falcon Heights, Roseville and the surrounding villages. New Brighton Nilsen read a letter from Robert R. Collar, Sergeant, New Police Dept. Brighton Police Department thanking our policemen for their aid in policing at their Festival. Pumping Station & Water Main Graham raised the question~as to whether or not we could get the pumping station and water main together again in one proceeding. He checked the law and we can do so if we take certain steps. We have to have a Public Hearing on Pumping Station with plena and specifications. We must call for bids and clear with Department of Health first. Get bids and set date for Hearing. Then go ahead on financing and procedure. We have to have money for ~~~~~ water main contractor shortly before September 21st. It will take 6 weeks to 2 months for bonds, etc. Discussion was held on what basis the Maple Knoll people should pay for their extra pressure in water. FPC Rate Nilsen read a letter from Senator Eugene J. McCarthy stating Increase he has ordered a suspension of any natural gas Late increase until December 27th so tha t a thorough investigation can be made. ~4cCarthy will follow this matter and keep us informed. Falcon Develop- Don Julep was present and asked for permission to improve ment Corp. the National Tea Store premises by a:50' addition to the present building and interior partitioning of the present building to accommodate a Laundromat, an Industrial Loan Company and a Hill Brother's Clothing store. It was moved by Nilsen, seconded by Shavor and unanimously voted. that this matter be held over for discussion September 3rd, at 7:00 P. Pd. inasmuch as the Village Planner has not had time to go over the plans completely. "Back yard" Don Julep requested that a letter be written to him regarding Development the "back yard" of their business block. Art Lindig request Art Lindig of 1875 W. Larpenteur petitioned the Council to put for street in a road adjacent to his property. Ljungren, the Village Engineer, advised Lindig that all streets have to be put in according to Village Specifications. Section 50 of the Village Ordinance was read and explained to Mr. Lindig. Ljungren agreed to write up a description of the street needed. Graham will work up a petition from that and will contact ?.?r. Lindig., Private Sale of In view of the fact that we will need money sooner than we can Bonds by Juran get it if bonds are sold at a public sale, Mr. Olson, of Juran & Moody & Moody, explained the procedure involved in a private sale. Mr. Olson pointed out his activities with the firm are limited to private buying of bonds. A private sale is not an unusual way of handling financing. They have worked with White Bear Lake, Maplewood, ti°dest St. Paul, New Hope, Savage, etc. When they set up an issue, they try to analyze it - estimate what portion might be prepaid; what portion of the people might pay right away;. what portion will pay in two years, and they can work call features into the issue. They try to fit the call features into the improvement itself and try to have as early a cal'1 on as many bonds as possible without affecting the interest rates too much. Mr. Olson also said sometimes we make the last two years of the issue call be at the end of 5 years, 10 years, all sorts of different arrangements can be made. Also on occasion, where it is right at the end of the construction season, and it is a matter of 30 days, where someone might pay up immediately, we have held up a block of bonds. We hold the block to see if you are going to need them or not. If you don't need them, we cancel them out. Speaking of interest, I certainly feel that there is something as important as interest rate - in other words, if you put up a bond issue for sale, we like to think that these various call n ('~ r ~~ V features mean more than a. straight interest rate itself. By figuring the entire interest and number of bond years, you get net interest rate. Net interest rate could be re- duced by calling in. We do not think the Council should put too much stress on interest rate. When we buy an issue pri- vately, we take the issue as set up; we set our basic coupons on that issue in the same way as public sale. We know what bonds have to bear to sell to our customers. Normally, a bond has a ''B" coupon attached. We set that to cover the expenses involved in issuing the bonds. I wouldn't begin to say the net interest rate is the same as at a public sale. We do vary those expenses in a coupon rate. Nfe can tailor it to fit your needs. V~'e can vrait until the contracts have been awarded, you don't erid up with too much or too little money. White Bear has an X850,000. straight issue; they don't need any gimmicks, It is going to run the full length of the 20 year period» They can come aut with pretty standard issue. On this many bonds, put the bidding up for public sale and get the best rates you can. Bonds for schools, court housesycannot be put up for private sale. V'~arkentiens When you speak of assessment, do you mean partial assessment or 100,°x? Olsen: Under the statute, 20~ or more is assessed by law. Shavor: As far as your company is concerned? Olsen: We couldn't buy them under 20~. Graham: This assessment gives rise to what we ran into on sewer prepayments. He is making the point that there are ways at their disposal in negotiating bonds, that they can keep the door open. If we get a lot of prepayments we won't have to issue as many bonds. With the sewer, we had to buy back some bonds at a premium. We would have the right to get them back in an agreement worked out beforehand, and they could sit for 30 days or so to see how the assessments are going to come in. Olsen: Vde find that 10~ prepayment is about average. ?~'!arkentien: These various features are going to have to be compensated in the interest rate. Olsen:. V1e can work it out to get the best call feature without affecting you cost wise.Too many call features can affect you adversely, but it is our fob to advise you, We know what we can sell with ease, and we will advise you to stay away from tough things to sell. We can work this out so you get the best possible plan without it costing too much. Graham: The person you are dealing with will tell you what you can or cannot do. If you put it, 3n .advertisement for bids, you don't know what effect it will have an the bids. It seems to me, on a small issue like this, it is to your advantage to negotiate these things. Suppose we had a X75,000, bond issue which was going to stretch out 20 years, what is the market today and what would be the negotiated interest rate. ~~^{' Olsen: If you are thinking about a 10 year issue, you would probably be looking for something around 4.20, 15 years possibly 4.40. I am talking negotiated sale. That would in- clude printing arid. legal etc. That would be my best guess today with the information I have now. The market has been holding pretty steady - at least it has been the same for the past three weeks. It might go up. No one can tell. Those in the know say it is supposed to go higher. Shavors Is the interest rate seasonal? Olsen, yes it is. It is usually lower this time of the year. However, last year it did not do much that way, and there isn~t any tendency to do much now. If we get any indi- cation of a change, I will call them about the bonds and get them out of the way right away, If there is a market change,, and if it is better for the municipality, we change the rate. If the market changes and to our detriments we are stuck. Shavor: How do you negotiate these things? Do you expect to have any competition? Olsen: It has happened that. a Council will talk to other firms, The way to get your best set up is to pick a firm and say we will work with you so they can sit down and. ad- vise ,you as to maturities, call featuresi etc.s and say, on this basis, we will dive you an interest of say 4.02. P~~e would like to do a job on it. Nilsens ~Je have always been thinking of 20 years Grahams 't'his is a net interest all the way through to the maturity? Nilsens That is right. Grahams The longer maturities draw higher interest rates. Nilsens Some of this will be assessed and some on connection charge. Some will be immediate connection. Olsens It looks like you have a case here where we could look into a few possibilities - hold some bonds for you -- put some early maturity - some fairly early on the next Shavors What would be the thing to do, get together vrith you, Frank, on this? Grahams I thought it was a good idea since we had. this problem to get you familiar with what could be done. Vern, have you had this problem at different times? Would you state this is a fairly common thing? Ljungren: ?dine have all been negotiated in public sale. Most street improvements and water improvements, except for New Brighton, which was negotiated. Warkentiens I feel that we should try this means. I would just as soon go along with one firm go ngd --~.h~e~-~se eves . rr~ a.z-l'~i ~ .f.~-<-~.~ ~~ T~ ~ ,...e~ c`.-~~ ~ ~-c ~z ,; 1 U I i~ `~Y Nilsen: We feel we have to rely on people. If we come to you for this' I am sure we will get it. 1 Olsen: We will try to give you several options and you can have a choices and make your own decision. It was moved by V~Jarkentien, seconded bjr Coppini and unanimously voted that the Mayor and the Village Attorney be authorized to work with Olsen of Juran & Moody in regard to the financing of the water main and pumping station improvement. West Falcon Heights Curtis Larson and Dr. Stowe were present. Larson reported on Playground the x~rogress of the committee and the activity at the play- ground. Regarding the h3-anca of $220• for grading the play- ground, it was decided to hold this bill until the Council heard further from the administrators of the Mergen Estate. Water main and It was moved by Shavor, seconded by Coppini and unanimously pumping station voted to adopt the following resolutions resolution ti'VHEREAS, it is proposed to improve Larpenteur Avenue from Snelling Avenue to a point 726 feet East of the center line of Cleveland Avenue by the extension of a water main and the construction of a pumping station, and the assessment of the abutting property for all or a portion of the cost of the im- provement, pursuant to Minnesota Statutes' Section lt29.011 to l~29.111~ 1 NOW THEREFORE, BE IT RESOLVED BY THE VII,LA(~ COUNCIL OF FALCON HEIGHTS, MNNESOTA s 1. That the proposed improvement be referred to Vernon L, Ljungren, for study and that he is instructed to advise the Council as to whether the proposed improvement is feasible and as to whether it should best be made as proposed or in connection with some other improvement, and the estimated cost of the improvement as recommended. 2. Vernon L. Ljungren is also directed to prepare plans and specifications for the construe tion of the pumping station in order that bids may be called for and received on this improvement at the time when the public hearing is held on this improvement to provide the necessary information in determining the desires ability and feasibility of the improvemento 1 Police Service Night Relief Police Officer, Henry Dachtera, the policeman on duty, was asked to appear before the Council at the request of the Mayor for the purpose of reviewing police procedures in the Village. The members of the Council went over policy matters at length with Dachtera and pointed out the necessity for ad- herance to the requirements of the Rules and Regulations for Police Officers that had been formulated by the Council for assurance of proper village coverage. Matters involving the question of judgment in several incidents were reviewed, and the. necessity for understanding that not all police matters Hermit complete discretionary judgment of the duty policeman and that first and foremost in the concern of the Council is the protection of life and property within the limits of Falcon Heights. ~ti~~ Adjournment (~{~,. mo tion, the meeting adjourned at 10:00 P, ?~4, a Signed ~,~/ ~,L.~:~c.~~ 1.~,~' lerk. Approve ~~-~ ~ ~~ ~.~ayor 1 1