HomeMy WebLinkAboutCCAgenda_03Nov12•
CITY OF FALCON HEIGHTS
Regular Meeting of the City Council
City Hall
2077 West Larpenteur Avenue
AGENDA
November 12, 2003
A. CALL TO ORDER: 7:00 PM
B. ROLL CALL: GEHRZ KUETTEL LAMB
LINDSTROM TALBOT
WORTHINGTON SHEA KODLUBOY
ATTORNEY ENGINEER
C. COMMUNITY FORUM:
D. PRESENTATION: John Zanmiller, West St. Paul City Council member,
Representative on the Water Utility Board
E. APPROVAL OF MINUTES: October 22, 2003
F. PUBLIC HEARINGS: None Scheduled
G. CONSENT AGENDA:
1. General Disbursements through November 7, 2003
in the Amount of: $ 80,185.54
Payroll (10/15/03-10/30/03) in the Amount of: $ 11,981.44
2. Mileage Reimbursement Rate Adjustments
3. Close Debt Service 1993 Improvement Bonds Fund (312) and Transfer
the Remaining Balance to the 1999 NE Quadrant Improvement Bond
Fund (317)
4. Add New Reserve Policy and Make Minor Wording Changes to Fiscal
Policies Section of Annual Budget
5. Proclamation-Ramsey County Library Foundation Day
6. Consideration of 2004 SCORE Contract and Adoption of Resolution 03-22
FALCON HEIGHTS CITY COUNCIL AGENDA _2_
November 12, 2003
H. POLICY AGENDA
1. Stipulation Settlement for Insty-Prints and JEMJAHS
2. Change in Recycling Method from Five-Sort to a Two-Sort
REPORTS FROM COUNCIL MEMBERS:
J. INFORMATION AND ANNOUNCEMENTS:
K. ADJOURNMENT
•
PRESENTATION 1
11/12/03
ITEM: John Zanmiller, West St. Paul City Council member and
Representative on the Water Utility Board
SUBMITTED BY: Mayor Sue Gehrz
EXPLANATION:
Summary: John Zanmiller, West St. Paul City Council member, represents Falcon Heights
on the Water Utility Board. He called me to request that we allow him to continue that
representation, instead of taking our position in the Board rotation in January, 2004.
ACTION TO BE CONSIDERED:
• Reappointment of John Zanmiller as the City's representative on the Water Utility Board
C
CITY OF FALCON HEIGHTS
COUNCIL MINUTES
October 22, 2003
Mayor Gehrz convened the regular City Council meeting at 7:00 PM.
PRESENT: Mayor Sue Gehrz, Council members Laura Kuettel, Robert Lamb,
Peter Lindstrom and Richard Talbot
Also present: Deputy Clerk Mary Shea Kodluboy
Absent with prior notice: City Administrator Heather Worthington
COMMUNITY FORUM: There was no commentary from the audience.
PRESENTATIONS: None Scheduled
APPROVAL OF MINUTES: The Council minutes dated October 8, 2003 were
unanimously approved as submitted.
PUBLIC HEARINGS: None Scheduled
CONSENT AGENDA:
Kuettel moved approval of the Consent Agenda, as outlined below. The motion was
unanimously approved.
1. General Disbursements through October 15, 2003
in the Amount of: $ 104,036.27
2. Payroll (10/01/03-10/15/03) in the Amount of: $ 9,922.09
POLICY AGENDA: None
REPORTS FROM COUNCIL MEMBERS: None
INFORMATION AND ANNOUNCEMENTS:
Council member Kuettel said the Association of Metropolitan Municipalities has
prepared a draft of a Regional Development Guide, and will be holding a series
of meetings at various locations around the metro area to gather feedback from the
public.
Mayor Gehrz said the City has been notified by the St. Paul Water Utility Board that
there will be a slight increase in water rates for the coming year. She reminded the cable
audience that Falcon Heights residents pay wholesale rather than retail rates.
108339
a
• FALCON HEIGHTS CITY COUNCIL MINUTES -2-
October 28, 2003
INFORMATION AND ANNOUNCEMENTS (continued)
Mayor Gehrz said that residents will be receiving an invitation to the long awaited
groundbreaking ceremony for the SE Corner, which will be held on Wednesday,
October 29, 3 PM, at the SE Corner site. Cider and cookies will be served. There is
tremendous excitement in the community about this development, which has been a true
community project. A second series of CERT trainings began on Monday evening,
October 20 and will continue until December 8. There are 20 new trainees, with seven
of them coming from area businesses.
She gave a brief description of a letter she prepared that is being placed on vehicles that
park bumper to bumper in the Falcon Woods neighborhood, near the path access to/from
Prior Avenue. They are being asked to be courteous and avoid parking close to other cars
so that the residents who live there have parking space in front of their homes for service
vehicles and guests. Also, Twin Cities Co-ops Federal Credit Union is making available
about 30 parking spaces for students for $25.00/month. This is the neighborhood that
applied for permit parking designation earlier this year. The Planning Commission
recommended denial of their request and that recommendation was affirmed by the City
Council. However, it was recommended that this matter be reviewed again in November,
and the Planning Commission will be doing so. The Falcon Woods neighborhood has
also been experiencing frequent power outages and the City Administrator has contacted
Xcel Energy. They sent an engineer to the neighborhood and it was determined that two
transformers need to be replaced. Xcel Energy has put the job on their work order list,
but it will take about two weeks before the work is completed.
The regular City Council meeting was adjourned at 7:15 PM.
Respectfully submitted,
Mary Shea Kodluboy
Deputy Clerk
108339
•
ITEM: Disbursements and Payroll
SUBMITTED BY: Roland O. Olson, Finance Director
REVIEWED BY: Heather Worthington, City Administrator
EXPLANATION:
Summary•
1. General Disbursements through
November 7, 2003 in the Amount of:
2. Payroll (1015/03-10/30/03) in the Amount of:
ATTACHMENTS:
~ General Disbursements
• Payroll
ACTION REQUESTED:
• Approval
CONSENT G1
11/12/03
$ 80,185.54
$ 11,981.44
4
DATE 11/03/03 TIME 05:55 CITY OF FALCON NEIGH COUNCIL REPORT PAGE 1
APPROVAL OF BILLS
PERIOD ENDING: 11/7/03_
~CK# VENDOR NAME DESCRIPTION DEPT. AMOUNT
-------- ------------------------- ------------------------ -------- -----------
42784 JIMMY JOHNS WORKSHOP FOOD LEGISLAT 49.25
LILLIE SUBURBAN NEWSPAPER PUBLIC ACCURACY TEST LEGISLAT 5.58
LILLIE SUBURBAN NEWSPAPER ELECTION/BALLOTS/ACCRY T LEGISLAT 427.98
*** TOTAL FOR DEPT 11 482.81
AMERICAN OFFICE PRODUCTS NOTARY STAMP ADMINTST 35.10
AMERICAN OFFICE PRODUCTS BINDERS/INK CARTRIDGES ADMINIST 150.14
AMERICAN OFFICE PRODUCTS SURGE OUTLET ADMINIST 42.98
MIDWAY CHAMBER COMMERCE MEMBERHIP ADMINIST 195.00
42782 PERA PERA OCT 16-31 ADMINIST 1,356.35
ROSEVILLE ROTARY CLUB OCT/DEC DUES & MEALS ADMINIST 229.00
WORTHINGTON,HEATHER PARKING RIEMB ADMINIST 21.00
WORTHINGTON,HEATHER NOV AUTO ALLOWANCE ADMINIST 35.00
KINKO'S INC. BUSINESS CARDS ADMINIST 50.49
*** TOTAL FOR DEPT 12 2,115.06
RAMSEY COUNTY MAJOR TAXPAYERS LIST FINANCE 65.00
*** TOTAL FOR DEPT 13 65.00
CAMPBELL KNUTSON GENERAL MATTERS LEGAL 721.00
*** TOTAL FOR DEPT 14 721.00
~ AMERICAN OFFICE PRODUCTS RUBBER STAMPS/ELECTIONS ELECTION 35.15
ELECTION SYSTEM/SOFTWARE VOTER SUPPLIES/SIGNS ELECTION 508.01
2783 JIMMY JOHNS ELECTION JUDGES FOOD ELECTION 95.25
42781 SUPERAMERICA ELECTION JUDGE DONUTS ELECTION 69.98
*** TOTAL FOR DEPT 15 708.39
MCI WORLDCOM RES SVC LONG DISTANCE COMMUNIC 9.64
OLSON,ROLAND FISHING POLES/DEADWTREVT COMMUNIC 19.15
NEXTEL COMMUNICATIONS,INC WIRELESS SVC COMMUNIC 21.98
*** TOTAL FOR DEPT 16 50.77
XCEL ENERGY CIVIL DEFENSE SIREN EMERGENC 6.28
NEXTEL COMMUNICATIONS,INC WIRELESS SVC EMERGENC 42.69
*** TOTAL FOR DEPT 21 48.97
HUGHES & COSTELLO NOV/03 PROSECUTIONS PROSECUT 2,621.94
*** TOTAL FOR DEPT 23 2,621.94
AMERIPRIDE LINEN&APPAREL LENEN CLEANING FIRE FIG 52.77
EMERGENCY APPARATUS MAINT NFPA PUMP TEST 752 FIRE FIG 270.00
EMERGENCY APPARATUS MAINT NFPA PUMP TEST 753 FIRE FIG 250.00
HEALTHPARTNERS MEDICAL GP MED EXAMS NEW FIRE FIGHT FIRE FIG 706.00
MED-COMPASS 15 SCBA USER MED EXAMS FIRE FIG 918.00
CALEB SORENSON REISSUE LOST PAYROLL CK FIRE FIG 12.13
SUPERAMERICA FUEL FIRE FIG 37.95
VERIZON WIRELESS CELL PHONES FIRE FIG 21.71
LAB SAFETY SUPPLY HAZMAT TNG BOOK FIRE FIG 121.93
LAB SAFETY SUPPLY TNG BOOKS/EXPLOSIVE ID FIRE FIG 96.12
*** TOTAL FOR DEPT 24 2,486.61
BROWNING-FERRIS IND. NOV/03 WASTE CITY HAL 254.81
DATE 11/03/03 TIME 05:55
~CK# VENDOR NAME
CITY OF FALCON HEIGH COUNCIL REPORT PAGE 2
APPROVAL OF BILLS
PERIOD ENDING: 11/7/03
DESCRIPTION DEPT. AMOUNT
BOARD OF WATER COMMISSNRS H2O CITY HAL 380.75
BOARD OF WATER COMMISSNRS SS CITY HAL 11.69
CINTAS CORPORATION #470 RUG SVC CITY HALL LOBBY CITY HAL 32.48
42786 HOME DEPOT CRC/GECF PAINT TRAYS/SUPPLIES CITY HAL 40.14
GRAINGER, W. W., INC. HANDLE REPAIR KIT CITY HAL 4.32
GRAINGER, W. W., INC. PAPER TOWELS/BATHROOM,KI CITY HAL 127.13
XCEL ENERGY GAS/CITY HALL CZTY HAL 97.04
XCEL ENERGY ELECT CITY HAL 731.69
SUBURBAN ACE HARDWARE BULBS/WASTEBASKETS/FRESH CITY HAL 69.94
SUBURBAN ACE HARDWARE SPOT REMOVER CITY HAL 6.06
NEXTEL COMMUNICATIONS,INC WIRELESS SVC CITY HAL 64.68
*** TOTAL FOR DEPT 31 1,820 .73
CITY OF ST PAUL SETUP FEE/GAS CONTRACT STREETS 100.00
NRG PROCESSING SOLUTIONS JULY/03 SOIL/MULCH/BRUSH STREETS 428.90
XCEL ENERGY ELECT STREETS 8.18
XCEL ENERGY ELECT STREETS 7.38
XCEL ENERGY ELECT STREETS 61.29
XCEL ENERGY ELECT STREETS 70.64
XCEL ENERGY ELECT STREETS 7.38
XCEL ENERGY ELECT STREETS 8.10
XCEL ENERGY ELECT STREETS 79.39
SCHARBER & SONS REPAIR JD 725 STREETS 95.85
SUBURBAN ACE HARDWARE GLOVES/ TOOLS STREETS 18.06
SUPERAMERICA FUEL STREETS 212.35
UNITED RENTALS CAUTION TAPES STREETS 19.15
FASTSIGNS HANDICAP PARKING SIGN STREETS 42.27
*** TOTAL FOR DEPT 32 1,158. 94
HOWARD GREEN COMPANYC. F.H. GENERAL SVGS ENGINEER 2,949.00
HOWARD GREEN COMPANYC. 2003 SEAT COATING ENGINEER 119.54
*** TOTAL FOR DEPT 33 3,068. 54
BOARD OF WATER COMMISSNRS H2O PARK & R 31.24
BOARD OF WATER COMMISSNRS SS PARK & R 23.38
TRUGREEN-CHEMLAWN FERTILZER/BROAD LEAF PARK & R 121.41
TRUGREEN-CHEMLAWN FERTILZER/BROAD LEAF PARK & R 110.76
MN NCPERS LIFE INSURANCE NOV/03 JONES PARK & R 16.00
MN NCPERS LIFE INSURANCE NOV/03 MAERTZ PARK & R 16.00
XCEL ENERGY GROVE PK:PROTECTIVE LITE PARK & R 21.84
XCEL ENERGY ELECT/GAS CURTIS PARK & R 41.78
XCEL ENERGY CURTIS:PROTECTIVE LITES PARK & R 22.20
ON SITE SANITATION PORTABLE TOILET COMM PK PARK & R 70.65
SUBURBAN ACE HARDWARE BROOM/FIRE EXT/SEED/GLOV PARK & R 154.08
UNIVERSITY OF MINNESOTA TELEPHONE EXPS PARK & R 111.24
*** TOTAL FOR DEPT 41 740. 58
PAULA LEWIS SOCCER REFUND PARK PRO 28.00
CYNDI MEIER QUILTING SUPPLIES/REC PARK PRO 18.12
*** TOTAL FOR DEPT 50 46. 12
2785 AMERICAN OFFICE PRODUCTS
RED CROSS BINDERS FOR CCC
SAFETY CLASS: WTR SAFETY CCC/CERT
CCC/CERT 59.37
60
00
.
DATE 11/03/03 TIME 05:55 CITY OF FALCON HEIGH COUNCIL REPORT PAGE 3
APPROVAL OF BILLS
PERIOD ENDING: 11/7/03_
~CK# VENDOR NAME DESCRIPTION DEPT. AMOUNT
*** TOTAL FOR DEPT 54 119.37
BROWNING-FERRIS IND. NOV/03 RAMSE CTY CEC SOLID WA 142 .69
BROWNING-FERRIS IND. SOLID WASTE MGMT TAX SOLID WA 43 .32
E-Z RECYCLING, INC. OCT/03 RECYCLING SOLID WA 2,559 .40
42780 JR'S APPLIANCE DISPOSAL:BROKEN FREEZER SOLID WA 30 .00
*** TOTAL FOR DEPT 56 2,775 .41
42786 HOME DEPOT CRC/GECF POWER WASHER PUBLIC W 169 .00
KESTREL DESIGN GRP INC GROVE TROLLEY PK PROJECT PUBLIC W 620 .17
KESTREL DESIGN GRP INC TROLLEY PATH PROJECT PUBLIC W 567 .50
HOWARD GREEN COMPANYC. CURTIS FIELD PK ISSUES PUBLIC W 8,015 .12
TRI-STATE BOBCAT INC 2003 BOBCAT 773 PUBLIC W 13,424 .33
TRI-STATE BOBCAT INC 68" ANGLE BROOM ATTACHMT PUBLIC W 3,071 .46
*** TOTAL FOR DEPT 65 25,867 .58
HOWARD GREEN COMPANYC. SIDEWALKS 2003 INFRASTR 223 .61
*** TOTAL FOR DEPT 71 223 .61
METROPOLITAN COUNCIL SAC CHRG/JIMMY JOHNS RES SANITARY 1,275 .00
XCEL ENERGY ELECT SANITARY 20 .67
*** TOTAL FOR DEPT 75 1,295 .67
HOWARD GREEN COMPANYC. CURTIS-STORM ISSUES STORM DR 8,015 .12
*** TOTAL FOR DEPT 76 8,015 .12
CAMPBELL KNUTSON SE CORNER LEGAL EXPS COMM. DE 12,741. 34
42779 KELLER CORPORATION CONDEMNATION SE CORNER COMM. DE 12,850. 00
*** TOTAL FOR DEPT 79 25,591 .34
HOWARD GREEN COMPANYC. SHELDON ST ENG HOYT AVE 161. 98
*** TOTAL FOR DEPT 85 161 .98
*** TOTAL FOR BANK O1 80,185.54
*** GRAND TOTAL *** 80,185.54
PERIOD END DATE 10/31/03 **FILE NOT UPDATED**
SYSTEM DATE 10/26/03
C H E C K R E G I S T E R
CHECK EMPLOYEE NAME
DATE NUMBER
PAGE 1
CHECK CHECK
NUMBER AMOUNT
10 30 03 6 SUSAN GEHRZ 33140 303.34
10 30 03 12 LAURA A. KUETTEL 33141 277.05
10 30 03 13 PETER C. LINDSTROM 33142 277.05
10 30 03 14 RICHARD P TALBOT JR 33143 177.05
10 30 03 15 ROBERT E LAMB 33144 277.05
10 30 03 34 CLEMENT KURHAJETZ 33145 287.20
10 30 03 42 MICHAEL D CLARKIN 33146 108.52
10 30 03 66 ALFRED HERNANDEZ 33147 55.41
10 30 03 74 MARK J ALLEN 33148 138.52
10 30 03 85 DANIEL S JOHNSON-POWERS 33149 54.64
10 30 03 91 RICHARD H HINRICHS 33150 38.64
10 30 03 1003 HEATHER WORTHINGTON 33153 1350.21
10 30 03 1007 PATRICIA PHILLIPS 33154 218.99
10 30 03 1013 WILLIAM MAERTZ 33155 1557.59
10 30 03 1030 MARY A. KODLUBOY 33156 1294.76
10 30 03 1033 DAVE TRETSVEN 33157 1119.82
10 30 03 1038 DEBORAH K JONES 33158 898.89
10 30 03 1041 DANIEL S JOHNSON-POWERS 33159 51.72
10 30 03 1136 ROLAND O OLSON 33160 1300.00
10 30 03 1143 COLIN B CALLAHAN 33161 466.51
10 30 03 1144 ANITA TWAROSKI 33162 284.54
10 30 03 1164 CINDI KAYE MEIER 33163 275.55
10 30 03 1170 ERIC J BLOMQUZST 33164 89.91
10 30 03 1173 ELIZABETH M POSTIGO 33165 522.19
10 30 03 1175 LAURA M SUPPES 33166 103.44
10 30 03 2041 JON OLIVER ZBACNIK 33167 145.45
10 30 03 2042 DAVID D BLOMQUIST 33168 136.10
10 30 03 2043 SPENCER E WIRTH-DAM S 33169 145.45
10 30 03 2044 BRADLEY REZNY 33170 25.85
COMPUTER CHECKS 11981.44
MANUAL CHECKS .00
NOTICES OF DEPOSIT .00
****TOTALS**** 11981.44
8
CONSENT G2
11/12/03
ITEM: Mileage Reimbursement Rate Adjustments
SUBMITTED BY: Roland O. Olson, Finance Director
REVIEWED BY: Heather Worthington, City Administrator
EXPLANATION:
Summary: Currently, the Internal Revenue Service allows mileage reimbursement in the
amount of 36 cents per mile for 2003, with an increase in this rate up to 37.5 cents per mile
becoming effective January 1, 2004. The city of Falcon Heights currently has Council approval
for the rate of 34.5 cents/mile when an employee incurs automobile expenses while on City
business. Staff is requesting that the mileage reimbursement rate be increased to the IRS
approved level of 36 cents per mile for the balance of 2003, and then increased to 37.5 cents per
mile, effective January 1, 2004.
Meets Goal #4: To provide a responsive and effective City government
Strategy #7: To effectively manage the City's financial resources
•
•
ACTION REQUESTED:
• Approve the 36 cents per mile mileage reimbursement rate for the balance of 2003, and then
increase it to 37.5 cents per mile, effective January 1, 2004
9
. CONSENT G3
11/12/03
ITEM: Close Debt Service 1993 Improvement Bonds Fund (312)
And Transfer the Remaining Balance to the 1999 NE Quadrant
Improvement Bond Fund (317)
SUBMITTED BY: Roland O. Olson, Finance Director
REVIEWED BY: Matt Mayer, CPA, Kern, DeWenter, Viere Ltd
Heather Worthington, City Administrator
EXPLANATION:
Summary: Staff is requesting the closing of the Debt Service Fund 1993 Improvement Bonds
(313) since all debt service for that bond is now fully paid. There is a fund balance of
$291,168.39. Staff is requesting the transfer of this balance to the 1999 NE Quadrant
Improvement Bonds Fund (317), effective October 1, 2003, and would provide funds to pay the
principal and interest payments for this bond during 2004 and 2005.
ATTACHMENT:
• • Memo of recommendation from Finance Director Roland Olson
ACTION REQUESTED:
• Close the Debt Service 1993 Improvement Bonds Fund (313) and transfer the ending fund
balance to the 1999 NE Quadrant Improvement Bond Fund (317) effective October 1, 2003
•
la
. October 28, 2003
TO: Mayor, Council Members, and City Administrator
FROM: Roland Olson, Finance Director
SUBJECT: Transferring the balance in the 1993 G.O. Street Bond debt fund and decreasing the
arbitrage
payment to the IRS for the 1999 G.O. NE Quadrant Street Bond in 2004
During 2003 we paid off the 1993 G.O. Street Bond. The bonds which the city issues are tax-
exempt municipal bonds subject to arbitrage regulations.
At our last workshop a question was asked about keeping the 1993 G.O. Street Bond debt fund
open to keep the excess funds in it instead of transferring them to the 1999 G.O. NE Quadrant
Street Bond fund.
I asked our auditors about this. Their reply was that since the bond was paid off, there really
didn't exist any legitimate reason to keep the fund open. The fund should be closed out.
• The balance in the 1993 G.O. Street Bond fund to be transferred would be: $291,168.39
At issue would be concerns about arbitrage.
We are subject to IRS arbitrage rules when we bond and borrow money at a rate that is not equal
to the rate of return that we get on the investment of the money that we have in the bond debt
service fund to pay off the debt. When we do a street project, we get the money up front on the
bond issue, then we spend it as the project progresses. Completion of the project can take well
over a year. This provides an opportunity to invest the unspent balance of the bond proceeds up
to the time we pay off all the liabilities associated with the project. Also, when the special
assessment receipts from the property owners are received, these payments must be deposited
into the corresponding bond fund. An opportunity exists for the city to make money or lose
money on the money that we borrowed and assessed. For example when the interest we are
paying bondholders is 4% and we are getting 6% return on investment then a positive arbitrage
exists and we would have a payment to the IRS. OR, when the interest we are paying
bondholders is 4% and we are only getting 2% return on investment then a negative arbitrage
exists and this negative arbitrage can be used to offset any positive arbitrage during each 5 year
calculation period.
This arbitrage calculation is conducted through out the life of the bond. For our bonds, the first
payment date of any arbitrage dollars owed to the IRS is 5 years after issuance. Our first five
year period for the 1999 G.O. Street Bond concludes June 2004. We used Springstead Inc. as
our financial advisors when we obtained this bond. They have already done some calculations
of arbitrage on this bond. They do it periodically.
•
I called and talked to the individual at Springstead who has already done some calculations on
the arbitrage dollars which we will owe the IRS in July 2004. I was informed that currently the
city would owe about $5,000 dollars. When I proposed increasing the fund balance in the 1999
G.O. NE Quadrant Street Bond fund to create negative arbitrage to offset the positive arbitrage
during this first 5 year period I was informed that we would end up paying significantly less than
the $5000. The positive arbitrage and negative arbitrage "net" during each 5 year period. When
I checked with Ehlers & Associates I was told the same information.
One could think of it as an additional return on our investment when we are reducing an
upcoming liability by being able to decrease the amount which we would be required to pay to
the IRS while at the same time getting the going rate of return on our investment of any money
transferred to the 1999 G.O. NE Quadrant Street Bond fund.
What are our obligations on the 1999 G.O. NE Quadrant Street Bond for the next 2 years?
For 2004, we are paying the bondholders 4%.
The principal payment and interest payments in 2004 total: $178,710
($135,000 principal and $23,205 interest payment due Feb 1, 2004)
($20,505 interest payment due Aug 1, 2004)
• For 2005, we are paying the bondholders 4.1
The principal payment and interest payments in 2005 total: $183,037
($145,000 principal and $20,505 interest payment due Feb 1, 2005)
($17,532 interest payment due Aug 1, 2005)
The total of the principal and interest payments for 2004 and 2005 total: $361,747
The current fund balance in the 1999 G.O. NE Quadrant Street Bond fund is approximately
$75,000. Adding the transfer of $291,168 plus the $75,000 totals: $366,168 (slightly more than
the $361,747 needed for the principal and interest payments in 2004 and 2005).
Currently, I'm getting 1.4% for a one year CD. I've talked to three different brokers that I deal
with and asked them what their firms are projecting for the next year. They said that the
economy is very sluggish and didn't expect it to recover quickly. Interest rates are not going to
increase quickly. The consensus was that there was no way that the interest rates would
approach 4% into 2004 and even possibly into 2005. Clearly we are going to be in a situation of
negative arbitrage.
RECOMMENDATION: Transfer the full amount of $291,168 to the 1999 G.O. NE Quadrant
Street Improvement Bond effective October 1, 2003 so the full 4t" quarter negative arbitrage can
be used to offset the previous positive arbitrage on the bond. We would then have
approximately 9 months of negative arbitra~e to help reduce the possible IRS payment due in
July 2004. (4t" quarter 2003, and 1St and 2° quarter 2004).
/~
•
•
CONSENT G4
11/12/03
ITEM: Adding New Reserve Policy and Other Minor Wording Changes to
Fiscal Policies Section of Annual Budget
SUBMITTED BY: Roland O. Olson, Finance Director
REVIEWED BY: Heather Worthington, City Administrator
EXPLANATION:
Summary: The City's Reserve Policy was changed by Council action on September 10, 2003.
These changes need to be included in the "Fiscal Policies" section of the annual budget. Also,
some minor word changes have been made that were discussed at the Budget Workshop on
November 5, 2003. The "Fiscal Policies" section of the budget, with these changes, is attached.
Staff is requesting approval so that these changes can be included in the annual budget, which
will be published shortly.
Meets Goal # 4:
Strategy # 6:
ATTACHMENT:
• Modified Fiscal Policies
ACTION REQUESTED:
To provide a responsive and effective city government
To effectively manage the city's financial resources
• Approve the modified "Fiscal Policies" section of the annual budget
/3
FISCAL POLICIES
I. OPERATING BUDGET POLICIES
A. Purpose
The operating budget policies insure that the city's annual operating
expenditures are consistent with past expenditures and respond to long-term
objectives rather than short-term benefits. The policies allow the city to
maintain a stable level of services, expenditures, and tax levies over time. These
policies are most critical to programs funded with property tax revenues
because accommodating large fluctuations in this revenue source is difficult.
B. Policy
The city will avoid balancing current revenues with funds necessary for future
expenses.
The city will not budget to accrue future revenues.
• The city will avoid postponing expenditures, rolling over short-term debt, and
using reserves to balance the operating budget.
The city will budget to maintain and replace the capital plant and equipment.
The city will apportion its administrative and general government costs to all its
funds as appropriate and practical. These charges will be identified in the
annual budget.
The city will budget a contingency to draw upon if revenues fall short of
expenditures due to unanticipated circumstances.
The city staff will prepare quarterly financial reports comparing budgeted
expenditures and actual expenditures to assure adherence to the budget.
The city staff will monitor departmental expenditures to adhere to the budgeted
amount.
ly
•
I1. REVENUE POLICIES
A. Purpose
The revenue policies are designed to ensure 1) diversified and stable revenue
sources; 2) adequate long-term funding by using specific revenue sources to
fund related programs and services; and 3) funding levels to accommodate all
city services and programs equitably.
B. Policy
The city will maintain a diversified and stable revenue system in order to avoid
short-term fluctuations in a single revenue source.
The city will establish fees and charges based upon the actual cost of providing
services.
The city will annually evaluate the relationship of its fee structure to actual
expenditures for fee services and readjust it for increased costs and inflation.
• The city will set recreation fees to cover the direct costs of established
programs.
The city will set a sanitary sewer fee and storm drainage fee to cover all the
costs including straight-line depreciation as well as administrative and general
government costs.
The city will offset reduced revenues with reduced expenditures.
111. INVESTMENT POLICIES
A. Purpose
The investment policies are designed to legally maximize the return on the city's
idle funds.
B. Policy
The city will regularly analyze its cash flow needs.
The city will collect, disburse, and deposit funds on a regular basis.
The city will pool cash from its different funds and invest it as allowed by law.
•
IS
•
The general fund will receive 5 percent of all investment earnings as
administrative fees for the finance director's and city administrator's time.
The city will invest funds for the highest rate of return possible allowed under
state and federal law, while maintaining a diversified investment portfolio.
The city will regularly review its cash position and investment performance as
documented by its financial records.
IV. RESERVE POLICIES
A. Purpose
The city will maintain reserves sufficient to provide stable funding for city
services, to provide working capital for maintaining infrastructure and capital
assets, and to secure a high credit rating.
B. Policy
The city will hold no more of the taxpayer's money than is necessary.
• The city will maintain specified Fund reserves at the level required by state
statute (principally TIF and Bond Funds).
The city will strive to maintain a total reserve equal to 75% of the average of the
previous five-year's actual total expenditures, including capital projects.
The reserve will be distributed among the Funds to meet cash flow needs and in
anticipation of future expenditures.
The city will address an excessive or deficient reserve on a rolling four-year
basis.
The city's goal is to maintain a general fund balance reserve of 45 percent of the
general fund's operating budget for working capital to provide cash flow between
its two semi-annual state aid and tax payments (July and December).
At year-end, if the general fund balance has a reserve for working capital at a
minimum balance of 45% of the next year's operating budget, the remaining
reserves will be transferred to the capital improvement funds on a projected
needs basis as determined by the five-year capital improvement plan by city
council approval.
/C
•
The infrastructure fund or an outstanding debt service fund will receive any fund
balances remaining in any debt service fund once the debt is retired.
The city will maintain capital improvement fund accounts for the timely purchase
and replacement of equipment in excess of $1000 or that will last for three or
more years as identified in the five year capital improvement program.
V. CAPITAL IMPROVEMENT POLICIES
A. Purpose
•
The purpose of the city's capital improvement
replacement of obsolete equipment, purchase
repairing and replacing the infrastructure without
changes in the tax levy.
B. Policy
is to plan for the
capital items, and
implementing significant
The city will plan for the timing, expenditures, and future revenue sources for all
capital purchases over $1000 or lasting for three or more years as part of the
five-year capital improvement program. The city will use the threshold level of
$5000 to determine if the capital asset is listed in the general fixed asset
account group.
The city will time the capital improvement projects to accommodate
administrative workloads for planning and implementing these improvements
each year.
The city will plan the capital improvement program to assure that funds remain
to accrue interest in each capital account whenever possible and use its reserve
policy to provide a revenue source for these funds.
The city will plan a realistic capital improvement program including creative, but
workable projects.
The city will anticipate equipment replacements and additions in its capital
improvement program.
The city will project the future operating costs of capital improvements into the
upcoming general operating budgets. For example, the addition of park
shelters, play equipment, and landscaping will require more park maintenance
expenditures from the operating budget.
program
of new
The city will maintain its capital assets, including infrastructure, land, buildings,
• and equipment, to protect the city's capital investment and to minimize future
capital expenditures.
The city will use the least expensive financing method for all capital projects
including multiple cost estimates and bids when appropriate and required by
law.
The city's infrastructure fund will loan funds to any construction fund with a
deficit due to expenditure and revenue timing.
The storm sewer, water, and sanitary sewer funds will transfer funds to
construction funds for their share of any unassessed portion of the cost of those
items.
VI. DEBT POLICIES
A. Purpose
The debt policies ensure that the city's debt 1) does not weaken the city's
financial structure; and 2) provides limits on debt to avoid problems in servicing
debt. This policy is critical for maintaining the best possible credit rating for the
city.
B. Policy
• The city will not use long-term debt for current operations.
The city will confine long-term borrowing to capital items or capital projects.
The city will pay back bonds within a period not to exceed the expected life of the
project.
The city will not exceed 2 percent of the market value of taxable property for
general obligation debt per state statutes.
The city will consider the maintenance of the best possible credit rating in
making all decisions on debt.
The city will follow a policy of full disclosure on financial reports and bond
prospectus.
The city will refinance or call any debt issue when interest rates are beneficial
for future debt savings.
•
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•
VII. ASSESSMENT POLICY
A. Purpose
The assessment policy assures uniform and consistent treatment of properties
affected by capital projects.
B. Policy
The city will evaluate its assessment policy on properties benefiting from a
capital project at the outset of each project.
The city will provide a payment period with a minimum interest rate of 2.0
percentage points over the debt payment rate for each project as follows:
Streets & Alley Reconstruction
Storm Sewer
•
Street Resurfacing
Sanitary Sewer & Water
10 years
10 years
5 to 10 years
To be determined
When several improvements are included in the same project, the assessment
period will be 10-20 years.
VIII. RISK MANAGEMENT POLICY
A. Purpose
The risk management policy assures proper insurance coverage of city assets
while minimizing risk.
B. Policy
The city will regularly analyze its insurance policies to assure proper coverage
and deductibles on city assets.
The city will charge individual department activities for their related property,
liability, inland marine, auto, workers' compensation, and other insurance costs.
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•
IX. RECREATION SCHOLARSHIP POLICY
A. Purpose
Donations for scholarships are being placed within the Friends of the Park
section of the Parks and Public Works Capital project fund.
B. Policy
The scholarship funds will be administrated by the city administrator and the
parks and recreation director.
The parks and recreation commission will set guidelines for the administration
of the scholarship funds.
Funds will be replaced through donations from service organizations and
individuals.
No annual budget will be established for the recreation scholarship trust fund.
Total scholarship awards will be limited to the funds designated available.
X. FINANCIAL SUPPORT FOR COOPERATIVE SERVICE POLICY
A. Purpose
The city will consider providing financial support to service organizations or
projects which benefit residents of the city. For example, Northwest Youth and
Family Services.
B. Policy
Must be an intergovernmental service or project.
The financial support should be proportional to population.
The service or project must be ongoing or be part of an ongoing effort with
established goals and measurable results.
The service or project must be something the city cannot accomplish by itself.
The service or project must meet the legal requirements of promoting and
ensuring the health, safety, and welfare of Falcon Heights' citizens.
0~0
• CONSENT GS
11/12/03
ITEM: Proclamation-Ramsey County Library Foundation Day
SUBMITTED BY: Mayor Sue Gehrz
EXPLANATION:
Summary: The City has received a request from the Ramsey County Library Foundation to
declare November 15, 2003 as Ramsey County Library Foundation Day.
ATTACHMENTS:
• Letter of request from the Ramsey County Library Foundation
• Proposed proclamation
ACTION TO BE CONSIDERED:
• Approval of proclamation declaring November 15, 2003 as Ramsey County Library
Foundation Day
r
~i
•
October 16, 2003
Ms. Sue Gehrz
City of Falcon Heights '
2077 West Larpenteur Avenue
Falcon Heights, MN 55113
Dear Mr. Gehrz:
~~~ ~ ~ 200
On behalf of the Ramsey County Library Foundation, I would like to invite. the City of Falcon
Heights to join us in recognizing the value of the Ramsey County Literary System by adopting the
enclosed proclamation at your next City Council meeting. We are urging all the communities that
benefit from the Ramsey County Libraries to proclaim November 15, 2003 as Ramsey County
Library Foundation Day.
On the evening; of 1Vaveinber 15`x, the Foundation will. ante ~again'be basting its amiual Gala '
event to raise funds for the Ramsey County Library System. The theme for the evening is A
Taste for Books and will consist of of sampling of food from local restaurants, a silent auction and
wonderful caberet style. entertainment: The event will be held at the Roseville Branch Library
(corner of Hamline Ave. and County Road B) from 7:00 - 10:00 p.m. I want to personally invite
you and-any Council Members to attend and join us for a fabulous evening. For more
information regarding tickets, please contact 612-7$1-2218.
It is our hope that the Falcon Heights City Council will support our efforts by adopting this
proclamation. We would be happy to send a Foundation Board member to the next City Council
meeting if schedules permit. A staff member from the Foundation will be in touch with your
office to discuss dates and details. It is our hope to display prominently the proclamation at your
local library after Council approval.
As you may already-know, The Ramsey County Library Foundation-was established in 1998 as .
an independent non profit organization to raise money for library projects sought by patrons but
beyond the scope of traditional government funding. It is by the, support of generous local
individuals and organization that we able to strive for improved library services in an increasingly
tight fiscal environment. We would appreciate your support.. Please contact me if you have any
questions or concerns..
Sincerely..
an ~ ~ ~.Gtf.~~~~Y'" -
"~ pP
3~ Annual Gala Chairperson'
cc: Heather Worthington
enclosure: Proclamation
~~
•
PROCLAMATION
WHEREAS, the Ramsey County Library system serves over 220,000 residents living in
suburban Ramsey County by providing them with a wide range of information and community
resources; and
WHEREAS, six suburban libraries located in the cities of Arden Hills, Maplewood, Mounds
View, Roseville, Shoreview, and White Bear Lake are part of the Ramsey County Library
System, and
WHEREAS, plans are under way to explore restoring library services to the City of North Saint
Paul and to make library improvements that respond to increasing community demands and the
ever changing technologies; and
WHEREAS, the Ramsey County Library system continues to grow with an 18 percent increase
in circulation and over 1.6 million people using the libraries in 2002, and
WHEREAS, Booker, the cuddly canine mascot of the Ramsey County Library system, can be
seen throughout Ramsey County communities spreading the joy of reading to people of all ages
at community and school events, and encouraging residents to support local libraries; and
WHEREAS, the Ramsey County Library Foundation, which supports the Ramsey County
Library system by cultivating donations and financial grants, is sponsoring the fourth annual
Taste of Books on November 15, 2003 at the Roseville Library, from 7:00 - 10:00 PM to
highlight the efforts of Ramsey County Library employees, volunteers and donors to enrich
our local libraries;
NOW, THEREFORE, I, Sue Gehrz, Mayor of the City of Falcon Heights, do hereby proclaim
Saturday, November 15, 2003, to be
RAMSEY COUNTY LIBRARY FOUNDATION DAY
IN THE CITY OF FALCON HEIGHTS
And urge all citizens of Falcon Heights to join with the Ramsey County Library Foundation in
recognition of the Ramsey County Library system and its employees, volunteers and donors who
have contributed to the vital and important role that libraries play in our community life.
•
Susan L. Gehrz, Mayor
November 12, 2003
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CONSENT G6
11/12/03
ITEM: Consideration of 2004 SCORE Contract, and Adoption of Resolution 03-22
SUBMITTED BY: Heather Worthington, City Administrator
EXPLANATION:
Summary: The Council is being asked to authorize the Mayor and Administrator to sign the
2004 SCORE recycling grant contract from Ramsey County and adopt the attached resolution.
The grant is in the amount of $10,680.
ATTACHMENT:
^ Resolution 03-22
ACTION REQUESTED:
• Authorize Mayor and Administrator to sign the 2004 SCORE Grant, and adopt Resolution
03-22
•
RESOLUTION 2003-22
RESOLUTION AUTHORIZING THE MAYOR AND STAFF TO SIGN THE 2004
RAMSEY COUNTY SCORE GRANT, AND ENTER INTO AN AGREEMENT
WITH RAMSEY COUNTY FOR FUNDING
WHEREAS, the City of Falcon Heights has a recycling program, which serves the residents of
the City; and
WHEREAS, the City utilizes the SCORE funding to offset costs of that program each year; and
WHEREAS, the City Council has determined that participation in this program is beneficial
to the residents of Falcon Heights;
NOW, therefore, be it resolved by the City Council of the City of Falcon Heights, Minnesota;
The Mayor and City Administrator are authorized to enter into an agreement with Ramsey
County for funding under the 2004 SCORE Grant.
Adopted, unanimously, by the City Council of Falcon Heights on November 12, 2003.
APPROVED:
Susan L. Gehrz, Mayor
ATTESTED:
Heather M. Worthington
City Administrator
•
sS
• POLICY Hl
11/12/03
ITEM: Stipulation Settlement for Insty-Prints and JEMJAHS
SUBMITTED BY: Tom Scott, Campbell Knutson
REVIEWED BY: Heather Worthington, City Administrator
EXPLANATION:
Summary: Last month, the developer of the SE Corner project negotiated a relocation settlement
with Insty Prints regarding the termination of their lease in the Northome Shopping Center.
Sherman and Associates has settled Insty Prints claim, and the Council may now consider the
settlement for final approval. JEMJAHS will execute this agreement after the city finalizes it.
ATTACHMENTS:
• Stipulation of Settlement
ACTION REQUESTED:
• • Discussion
• Approval of stipulation settlement for Insty-Prints and JEMJAHS for payment of $25,000
to Insty-Prints
•
SETTLEMENT AGREEMENT
•
THIS SETTLEMENT AGREEMENT (this "Agreement") is made as of the day of
2003, by and among the City of Falcon Heights, a Minnesota municipal
corporation (the "City"), JEMJAHS No. 3 Partnership, a Minnesota general partnership
("Landlord"), and Insty-Prints of St. Paul, Inc., a Minnesota corporation ("Tenant").
RECITALS
A. Landlord and Tenant are parties to a lease dated January 21, 1998 (the "Lease"). The
Lease entitled Tenant to possession of certain premises in a shopping center located at 1552
Larpenteur Avenue West in Falcon Heights, Minnesota, as more particularly described in the Lease
(the "Premises").
B. In connection with the proposed redevelopment of the shopping center in which the
Premises are located, the City has initiated condemnation proceedings with respect to said property.
C. Tenant has terminated the Lease and vacated the Premises. Tenant has relocated its
business to a different location.
D. Tenant has asserted a claim against the City for relocation benefits associated with its
move from the Premises to a different location.
. E. The parties hereto have agreed to settle such claim in accordance with the terms and
conditions of this Agreement.
AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto do hereby agree as follows:
1. Tenant hereby agrees and acknowledges that as of the date of this Agreement the
Lease has terminated and Tenant has no right, title or interest in the Premises.
2. Upon the execution of this Agreement, the City shall pay to Tenant the amount of
Twenty-Five 'Thousand and no/100s Dollars ($25,000.00) (the "Settlement Amount") to reimburse
Tenant for certain relocation costs incurred by Tenant.
3. Tenant hereby accepts the Settlement Amount in full satisfaction of any claim (i) that
Tenant may have under the Lease, or (ii) that Tenant may otherwise have against the City, Landlord,
and/or any future developer or owner of the land upon which the Premises are located, either singly
or jointly, in connection with the termination of the Lease and Tenant's relocation from the Premises.
4. This Agreement may be executed in counterparts, each of which shall be deemed an
original and which together shall constitute a single instrument.
~1
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as
• follows as of the day and year first above written.
CITY OF FALCON HEIGHTS
By:
Susan .L. Gehrz
Its: Mayor
CITY OF FALCON HEIGHTS
By:
Heather Worthington
Its: City Administrator
JEMJAHS N0.3 PARTNERSHIP
By:
Its:
INSTY PRINT~~jS OF ST. PAUL, INC.
BY~ ~~ys.~ ~.,nr. ~
Its: ~?~z.,Q.~..t..~.~..,.~.
•
M2:20565973.02
•
~8
POLICY H2
11/12/03
ITEM: Change in Recycling Method from Five-Sort to a Two-Sort
SUBMITTED BY: Solid Waste Commission
REVIEWED BY: Deborah Jones, Planning & Zoning Coordinator, staff liaison to the
Solid Waste Commission
Heather Worthington, City Administrator
EXPLANATION:
Summary: Earlier this year, the Solid Waste Commission voted unanimously to allow E-Z
Recycling to utilize atwo-sort method, rather than the five-sort method required in the current
contract. Staff toured the E-Z Recycling plant last week, and is confident that they are capable
of making the switch, with little or no increase in the amount of residual material, and thus no
negative environmental impact from switching to 2-sort.
Under the 2-sort system, corrugated cardboard is still collected separately from the two streams
ofNewspaper-Magazines-Mixed Mail-Cereal Boxes and Cans-Glass-Plastic. We'll make sure
people know they must still flatten and bundle corrugated cardboard and put it out separately.
• (So it is, technically, a third stream, for those who recycle corrugated cardboard.)
The Solid Waste Commission would now like to roll out this new method, update the contract,
and do resident education about the change in the upcoming newsletter and flyer.
Chris Reinhardt at E-Z has offered to distribute tags to residents at the November 21 or
December 5 recycling pick-up to instruct them on the new sorting method.
ATTACHMENT:
• Staff report on two-sort method
ACTION REQUESTED:
Authorize city staff and the solid waste commission to update the recycling contract to
require atwo-sort method, and commence with resident education around this change in
upcoming newsletter and city flyer
•
•
November 12, 2003
To: Mayor Gehrz, Councilmembers Kuettel, Lamb, Lindstrom and Talbot
From: Deborah Jones, Planning & Zoning Coordinator
Re: Two-sort recycling
Summary: On November 21, 2002, the Solid Waste Commission voted unanimously to
recommend that the City extend for one year its recycling contract with E-Z Recycling, Inc., with
two changes. First, clothing and household textiles would be added as a new item. Second, the
City would phase in a 2-sort system of collection in 2003. The first change was launched earlier
in 2003; we are overdue to set the second in motion. As some of you have observed, some
residents are unofficially switching already. Right now we have several excellent opportunities
to educate Falcon Heights residents about the planned change, so Staff would like to move ahead
• right away with the introduction of the two-sort recycling method for Falcon Heights residents.
• The fina12003 City newsletter is in preparation to go out in late November; it may be several
months until the next one. Items for this newsletter are already due.
• There will be a City-wide flyer drop on November 25.
• E-Z Recycling, Inc. has offered to distribute informational tags to resident at the November
21 or December 5 recycling pick-up.
• The City website can be updated at any time.
• Finally, and most important, the City Council needs to confirm the change and announce it at
their televised meeting. This should be our "launch." The Council meets next Wednesday,
November 12, the day before the Solid Waste Commission, and they do not meet again until
November 26, the day after the flyer drop and well after the newsletter goes to press.
Last Thursday I met again with Chris Reinhardt of E-Z Recycling and toured their plant on Prior
Avenue off Pierce-Butler. I had never been there before, and I found it fascinating. E-Z has
installed over half a million dollars worth of new sorting and baling equipment to separate cans,
glass and plastic. I saw the new equipment in operation; it was impressive. Aluminum pop cans
are separated from ordinary cans; glass is sorted by color. I also watched the paper sorting and
baling operation, where some of the sorting is still done by hand. All of the material collected in
Falcon Heights is sorted and baled the same day. Very little material is stored on the premises.
Almost everything goes straight into semi-trailers for shipping out to manufacturers who buy the
• materials from E-Z.
3a
•
E-Z is proud of their high recovery rate, over 95%. (98% has also been quoted.) They do not
own their own landfill, so it costs them to dispose of residual material. Therefore, they are
strongly motivated to recover as much as possible, and from everything I saw, they do an
excellent job. They are now collecting recyclables in the 2-sort system from most of their
customers. I am satisfied that they have the ability to take care of Falcon Heights' recycling
collection as a two stream system without an increase in residuals going to landfill. Switching
collection methods in Falcon Heights would not be a backward move with respect to the
environment.
Also, Mr. Reinhardt said he would be happy to arrange a tour for any Commissioner or
Councilmember who would like to visit the plant during working hours. I know that's awkward
for working people and students, but if any of you would like me to set up a visit for you, please
let me know.
As you are all aware, the largest piece of making this change in Falcon Heights is educating
residents. We have the above plans in place to begin that process this month. Staff would
welcome any recommendations Commissioners or Council members may have on the material
that is going out and any suggestions of additional public information measures beyond those
already listed.
C,
•
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