HomeMy WebLinkAboutCC MINUTES 07302014 SpecialCITY OF ST. ANTHONY
SPECIAL CITY COUNCIL MEETING MINUTES
JUNE 30, 2014
CALL TO ORDER.
Mayor Faust called the special meeting to order at 7:00 p.m.
PLEDGE OF ALLEGIANCE.
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Mayor Faust invited the Council and audience to join him in the Pledge of Allegiance.
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ROLL CALL.
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Present:
Mayor Faust; Councilmembers Gray, Jenson, Roth and Stille.
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Absent:
None.
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Also Present:
City Manager Mark Casey.
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Guest:
Stacie Kvilvang (Ehlers & Associates).
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CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING
ITEMS.
I. APPROVAL OF JUNE 30, 2014, SPECIAL CITY COUNCIL MEETING AGENDA.
Motion by Councilmember Jenson, seconded by Councilmember Gray, to approve the Special
City Council Meeting Agenda of June 30, 2014.
Motion carried unanimously.
II. GENERAL BUSINESS OF COUNCIL.
A. Resolution 14-050; a Resolution Relating to $3,750,000 General Obligation Tax
Increment Revenue Refunding Bonds, Series 201413; Awarding the Sale, Fixing the Form
and Details, and Providing for the Execution and Delivery Thereof and Security Therefor.
Stacie Kvilvang, Ehlers & Associates, presenting.
Mayor Faust noted that the revised amount of the refunding is $3,665,000 instead of $3,750,000.
Ms. Kvilvang advised that the City's AA stable rating is applicable to the City's strong
budgetary flexibility, adequate budgetary performance, very strong liquidity and cash flows, and
strong management with good financial practices. She stated the bond sale was held at 11:00
a.m. today with six bids received and the low bidder was Baird for 2.881%. She noted the City
received premium bids so the amount of the refunding was reduced from $3,750,000 to
$3,665,000, adding that the rates were 20 basis points higher than anticipated due to the current
market. She indicated that present value savings is $860,000 over the next 20 years, a savings
percent of 18%, or approximately $46,000 more than anticipated.
Motion by Councilmember Stille, seconded by Councilmember Jenson, to adopt Resolution 14-
050; a Resolution Relating to $3,665,000 General Obligation Tax Increment Revenue Refunding
Special City Council Meeting Minutes
June 30, 2014
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Bonds, Series 201413; Awarding the Sale, Fixing the Form and Details, and Providing for the
Execution and Delivery Thereof and Security Therefor.
4 Motion carried unanimously.
6 B. Resolution 14-051; a Resolution Authorizing Issuance. Awarding Sale, Prescribing the
7 Form and Details and Providing for the Payment of $1,330,000 General Obligation
8 Refunding Bonds, Series 2014C. Stacie Kvilvang, Ehlers & Associates, presenting.
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10 Ms. Kvilvang stated that the refunding amount has been reduced to $1,305,000 and advised that
11 the bond sale was held at 11:00 a.m. today with five bids received and the low bidder was Baird.
12 She indicted this represents a true interest cost of 2.1% and is approximately 12 basis points
13 higher than expected, representing a present value savings of $75,000 or $7,000 per year over the
14 remaining term of the bond, a savings percentage of 5.3%. She noted that Councilmember Stille
15 inquired whether negative arbitrage exists and explained that because of the refunding in
16 advance of 90 days of the call date, the City typically issues more in bonds to cover the cost of
17 interest on the new bonds and this is inclusive with negative arbitrage and the cost of issuance.
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19 Motion by Councilmember Gray, seconded by Councilmember Jenson, to adopt Resolution 14-
20 051; a Resolution Authorizing Issuance, Awarding Sale, Prescribing the Form and Details and
21 Providing for the Payment of $1,305,000 General Obligation Refunding Bonds, Series 2014C.
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23 Motion carried unanimously.
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25 C. City Council Receives Organized Collection Proposal. Mark Casey. City Manager,
26 presenting.
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28 City Manager Casey advised the City has been operating under authority of Minn. Stat. §
29 115A.94 (Organized Collection Statute) in accordance with three main criteria, including the
30 proposal must include identified city priorities, must reflect existing haulers maintaining their
31 respective market share, and the initial organized collection agreement must be for a period of
32 three to seven years. He stated on April 30, 2014, the City provided public notice to the haulers
33 that the City was entering into a 60 -day exclusive negotiation period and representatives from
34 three haulers attended several meetings with City staff. He indicated the first meeting involved
35 providing general information as well as the City's priorities, specifications, and timeline, and
36 key to the City's expectations was that the negotiations would be conducted in good faith while
37 maintaining the exclusivity contemplated by the Organized Collection Statute. He advised that
38 the haulers were in general agreement with the City's timeline; the haulers raised concerns over
39 the proprietary nature of the market share information and in order to protect this information, it
40 will be redacted from the public version; and the haulers addressed concerns over aspects of the
41 draft specifications, some of which related to the perceived and impractical nature of
42 specifications within a consortium -style system. He stated that the City responded to the
43 concerns and all parties are in agreement with the revised specifications as of June 10, 2014. He
44 stated that City staff will provide further analysis of the content of the proposal to be delivered to
45 the City Council prior to the July 8, 2014, City Council meeting and City staff recommends that
46 the City Council review the proposal, draft agreement, and staff analysis and undertake one of
47 four options: (1) set a date for the public hearing to take action on the contract on July 8, 2014,
48 (2) direct staff to continue exclusive negotiations with the haulers to address concerns, (3) reject
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Special City Council Meeting Minutes
June 30, 2014
Page 3
the proposal and contract as is and direct staff to prepare a Resolution appointing an Organized
Collection Options Committee pursuant to the Organized Collection Statute, or (4) reject the
proposal and terminate further organized collection efforts at this time.
Mayor Faust pointed out that the City Council is not taking action this evening and this matter
will come back to the City Council on July 8, 2014, at which time the City Council will make a
decision on one of the four options. He stated tonight's meeting is intended to announce that the
City has held proprietary meetings with the haulers and is following the Organized Collection
Statute as recently enacted. He added that St. Anthony is one of the first cities to follow the new
Organized Collection Statute and asked about any feedback received from the haulers.
City Manager Casey reported there has been positive dialogue in a collaborative environment
and overall, the meetings went very well.
III. ADJOURNMENT.
Mayor Faust adjourned the meeting at 7:16 p.m.
Respectfully submitted,
Barbara Hughes (TimeSaver Off Site Secretarial, Inc.) C
—Mayor
City Clerk \IJ