HomeMy WebLinkAboutCC MINUTES 08122003 Meeting Sheet
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Box: 34
Folder: CC MINUTES AND AGENDAS 2003
Document: CC MINUTES 08122003
City Council Regular Meeting Minutes
August 12, 2003
Page 1
1 CITY OF ST. ANTHONY
• CITY COUNCIL REGULAR MEETING MINUTES
4
5 AUGUST 12, 2003
6
7 CALL TO ORDER
8 Mayor Hodson called the meeting to order at 7:00 p.m.
9
10 PLEDGE OF ALLEGIANCE.
1 I Mayor Hodson invited the Council and audience to join him in the Pledge of Allegiance.
12
13 ROLL CALL.
14 Present: Mayor Hodson; Councilmembers Horst, Sparks, Thuesen, and Faust.
15 Absent: None.
16 Also Present: City Manager Mike Mornson and City Attorney Jerome Gilligan.
17
18 CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING
19 ITEMS.
20
21 I. APPROVAL OF AUGUST 12, 2003, CITY COUNCIL MEETING AGENDA.
22 Motion by Councilmember Thuesen to approve the City Council Meeting Agenda of August 12,
23 2003.
4 Motion carried unanimously.
26
27 II. PROCLAMATIONS AND RECOGNITIONS.
28 None.
29
30 III. COMMUNITY FORUM.
31 No one came forward to address Council.
32
33 IV. CONSENT AGENDA.
34 A. Approve July 22, 2003, Council meeting minutes.
35 B. Consider licenses and permits.
36 C. Consider payment of claims.
37 D. Consider Ordinance 2003-008, re: CenterPoint Energy Minnegasco Franchise Renewal
38 Ordinance(3'reading).
39 E. Consider Ordinance 2003-009, re: Amending ordinance to allow liquor establishments to
40 remain open until 1:00 a.m. (2"d reading).
41
42 Motion by Councilmember Sparks to approve the Consent Agenda items.
43
44 Motion carried unanimously.
45
46 V. PUBLIC HEARINGS.
0None.
City Council Regular Meeting Minutes
August 12, 2003
Page 2
VI. REPORTS FROM COMMISSIONS AND STAFF.
None.
3
4 VII. GENERAL POLICY BUSINESS OF THE COUNCIL.
5 A. Ehlers and Associates will be present for the following:
6 1. Resolution 03-064, re: Provides for sale of$630,000 General Obli ag tion
7 Refunding Improvement Bonds, Series 2003D.
8 It was noted the City determined it was expedient to issue the City's $630,000 General
9 Obligation Refunding Improvement Bonds, Series 2003D, to achieve cost savings by refinancing
10 bonds eligible for refunding at lower interest rates in order to provide for the current refunding
11 of the outstanding portion of the City's $525,000 General Obligation Improvement Bonds of
12 1994B, $470,000 General Obligation Improvement Bonds of 1993A and $825,000 General
13 Obligation Improvement Bonds of 1995 (the "Refunded Bonds").
14
15 City Manager Mornson introduced Mark Ruff, a financial advisor with Ehlers and Associates,
16 who noted the sale date for the bonds had been delayed from September 9, 2003, until September
17 23, 2003. He discussed the reasons for the delay of the sale. Mr. Ruff noted Council was
18 currently being asked to authorize the sale of the bonds and the actual sale was scheduled for
19 September 23, 2003.
20
21 Mr. Ruff explained Ehlers and Associates routinely reviewed outstanding bond issues to assess
22 the potential for cost savings. He noted cost savings could be achieved by refunding the stated
issues. He added this issue met criteria set by both Ehlers and State and Federal regulations for
the refunding of existing debt. Mr. Ruff stated the City's interest rate would hopefully be
25 reduced by at least 2%to 2!/2%.
26
27 Mr. Ruff noted a number of factors, including world events and economic conditions in general,
28 could impact rates prior to the sale date. He stated Ehlers would review market conditions prior
29 to the sale and would advise the City if it appeared minimum savings would be achieved, at
30 which time Ehlers would recommend the sale be delayed or cancelled.
31
32 Mr. Ruff stated the Series 2003D Bonds were projected to achieve a net current value savings of
33 about 5.6% or$50,000 over the life of the issue, given current interest rates. He indicated this
34 estimated savings did not reflect the benefit of"pre-paying" bonds with cash received from
35 advanced payment of assessments. Mr. Ruff noted prepaid special assessments had been
36 received, which would be used to pay down some of the bond debt service still due.
37
38 Mr. Ruff indicated a revised debt levy reflecting the remaining assessment and the new rates was
39 expected to reflect reduced impact on taxpayers.
40
41 2. Resolution 03-065 re: Provides for sale of$1,175,000 Advanced Refunding
42 Taxable General Obligation Tax Increment Bonds, Series 2003E.
43 It was noted the City determined it was expedient to issue the City's $1,175,000 Advanced
44 Refunding Taxable General Obligation Tax Increment Bonds, Series 2003E, in order to provide
46 advance refunding of the City's $1,720,000 Taxable Tax Increment Bonds of 1996.
City Council Regular Meeting Minutes
August 12, 2003
Page 3
Mark Ruff, Ehlers and Associates, explained this sale had also been delayed until September 23,
2003. He stated the 2003E Bonds would refund the 1996 Tax Increment Bonds and would be
3 paid from the same revenue source as the original issue, tax increment proceeds.
4
5 Mr. Ruff stated, because these bonds were not callable until February 1, 2006, the City would
6 continue to pay the debt service on the outstanding bonds until this call date. He noted the
7 proceeds from this bond sale would be invested in government securities until the call date. He
8 explained the City would earn less interest than payable on the new bonds given current
9 investment rates and this impact or"negative arbitrage"had been calculated into the projected
10 net savings.
11
12 Mr. Ruff stated these funds, including accrued interest, would be used to pay off the bonds
13 outstanding on the original issue as of February 1, 2006. He noted the expected savings would
14 average approximately$7,500 per year(net present value of$50,000) for a net savings of about
15 4.7%.
16
17 Mr. Ruff indicated that Ehlers and Associates would review market conditions prior to the sale
18 and would advise the City if it appeared minimum savings would be achieved. He stated the sale
19 could be cancelled anytime up to three days before the sale.
20
21 Motion by Councilmember Sparks to adopt Resolution 03-064 providing for the sale of$630,000
22 General Obligation Refunding Improvement Bonds, Series 2003D.
0 Discussion:
25
26 Councilmember Faust asked if the City would save $50,000 in interest under the current rates.
27 Mr. Ruff responded the savings realized for the Improvement Bonds should be approximately
28 $50,000, which was about 6% of the outstanding principal. He added the savings realized for the
29 Tax Increment Bonds would also be approximately$50,000, which was about 5% of the
30 outstanding principal. He noted the threshold was 3%.
31
32 Motion carried unanimously.
33
34 Motion by Councilmember Faust to adopt Resolution 03-065 providing for the sale of
35 $1,175,000 Advanced Refunding Taxable General Obligation Tax Increment Bonds, Series
36 2003E.
37
38 Motion carried unanimously.
39
40 B. Resolution 03-063, re: Call for hearing on TIF plan.
41 It was noted the City Council called for a public hearing on September 23, 2003, on the
42 modification for Redevelopment Project Area No. 3, the establishment of Tax Increment
43 Financing District No. 3-5 and the adoption of a Tax Increment Financing Plan.
44
City Manager Mornson stated the schedule would be put together based on the hearing. He
indicated staff would let the public know about the upcoming public hearings that would be held
City Council Regular Meeting Minutes
August 12, 2003
Page 4
over the next six weeks. Mr. Mornson added the H.R.A. would also approve a similar
resolution.
3
4 Motion by Councilmember Horst to adopt Resolution 03-063 calling for a public hearing by the
5 City Council on the proposed adoption of a modification to the Redevelopment Plan for
6 Redevelopment Project Area No. 3, the proposed establishment of Tax Increment Financing
7 District No. 3-5 and the adoption of a Tax Increment Financing Plan.
8
9 Motion carried unanimously.
10
11 C. Resolution 03-062, re: Approve internal loan to fund the redevelopment of the SAV II
12 Off-Sale Liquor Store.
13 Finance Director Larson noted he reviewed the following funding options for building of the
14 new SAV II off-sale store per staff s request: 1) issue Liquor Revenue Bonds, 2) cash on
15 hand/reserves or 3) internal loan. Mr. Larson stated an internal loan appeared to have the most
16 merit given the cost of issuing debt; and, after reviewing potential funds for an internal loan, he
17 indicated the water filtration funds could support this project.
18
19 Mr. Larson recommended Council authorize an internal loan (not to exceed $400,000) to fund
20 the new SAV II liquor store. He added the term of the loan was 10 years and interest was based
21 on declining principal at a rate of 5%.
22
City Manager Mornson stated there was a$365,000 shortage for building the new store after the
sale of the existing property. He indicated the internal loan funding option suggested by Mr.
25 Larson was recommended for adoption, as the total amount of the payments for the internal loan
26 was $75,000 less than borrowing the money through the issuance of a liquor revenue bond.
27
28 Mr. Mornson noted this was the final piece toward obtaining the City's new off-sale liquor store,
29 which would be part of the Spectators' redevelopment.
30
31 Motion by Councilmember Thuesen to adopt Resolution 03-062 to approve an internal loan from
32 the Water Filtration Fund(not to exceed $400,000) to fund the City's portion of the construction
33 of the new SAV II off-sale store.
34
35 Motion carried unanimously.
36
37 D. Ordinance 03-11, re: Fire works 0" reading).
38 City Attorney Gilligan introduced a proposed ordinance that addressed license fees and
39 regulation of the sale and use of Consumer Fireworks. He stated a new law awaiting the
40 Governor's signature would restrict the authority of cities to regulate the sale of Consumer
41 Fireworks. He added these limitations on the ability of the City to regulate the sale of Consumer
42 Fireworks had been addressed in the proposed ordinance since the new law is effective the day
43 after enactment and it was anticipated the law would be signed by the Governor.
44
Mr. Gilligan noted the license fees had been limited to the amounts provided in the new law. He
46 added the"per location" license fee language was maintained, as is the case with many other
47 license fees in the City. 624.20, Subdivision 1(d)(1).
City Council Regular Meeting Minutes
August 12, 2003
Page 5
Mr. Gilligan noted fairly restrictive provisions regarding the storage of Consumer Fireworks
understood to be consistent with NFPA Standard 1124 were included because the new law did
3 not apply to storage. He indicated the proposed ordinance was drafted to require that sales of
4 Consumer Fireworks be in compliance with the zoning code and sales of Consumer Fireworks be
5 prohibited at non-permanent places of business. 624.20, Subdivision 1(d)(2).
6
7 Mr. Gilligan noted the insurance provision suggested by the City that was included in the initial
8 draft was removed due to the apparent absolute prohibition in the new law, unless the City
9 imposed such requirements on all business licensees. He added the City does not impose said
10 requirements. 624.20, Subdivision 1(d)(3).
11
12 Councilmember Horst asked if this was going to be a license for kiosks or tents that"popped up"
13 around the City before the 4`h of July. Mr. Gilligan responded the ordinance would not allow for
14 tent sales, as they were not permitted under the City's zoning code. He noted businesses like
15 Cub Foods and gas stations would be affected.
16
17 Councilmember Horst asked if the City was trying to eliminate the "tent guy." Mr. Gilligan
18 stated that was correct. He added the City also did not allow tent sales for other products.
19
20 Motion by Councilmember Horst to approve First Reading of Ordinance 2003-011 relating to
21 sale and use of Consumer Fireworks; amending Section 615.06 of the St. Anthony City Code
22 and adding Section 580 and Section 1170 to the St. Anthony City Code.
0 Motion carried unanimously.
25
26 VIII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS.
27 City Manager Momson reported the following items:
28 ■ Bid opening for some of site and structural work for fire station was Tuesday, August 12,
29 2003. Bid opening for public works' portion was Thursday, August 14, 2003. Mr.
30 Mornson noted these bids would be considered at the next Council meeting.
31 ■ Groundbreaking for the two buildings was scheduled for September 9, 2003. Mr.
32 Mornson stated staff would send invitations.
33 ■ Closing with Amcon would probably be September 8, 2003. Groundbreaking and the
34 demolition project were possibly scheduled for September 9, 2003.
35 ■ Store U closing planned for August 23, 2003.
36
37 Councilmember Horst thanked those who attended Village Fest. He also said a special "thank
38 you" should be given to Councilmember Sparks for her job as chairman of Village Fest.
39
40 Councilmember Sparks thanked the volunteers who had made Village Fest happen. She noted
41 that Village Fest was accomplished entirely by volunteers, and she appreciated the time and
42 energy that had been invested. She also thanked Councilmember Horst for planning the parade.
43
44 Councilmember Thuesen thanked Councilmember Horst for organizing the parade and
0 Councilmember Sparks for her work as chairman.
City Council Regular Meeting Minutes
August 12, 2003
Page 6
1 Councilmember Thuesen also noted the Board of Directors for the Northwest Youth and Family
2 Services would be meeting Thursday, August 14, 2003. He asked if it was accurate to say the
money given to them was on the table depending on the outcome of the 2004 budget. Mr.
Morrison replied that was probably accurate. He added the Northwest Youth and Family
5 Services would be included in the budget for the time being. He noted staff was reviewing what
6 other cities were doing and felt the City was actually a small contributor.
7
8 Councilmember Faust thanked Councilmember Sparks, Councilmember Horst and the volunteers
9 for making Village Fest a great success. He also stated the weather had been perfect for the golf
10 tournament. He felt Village Fest was an outstanding time for the community to come together to
11 celebrate.
12
13 Councilmember Faust noted Council had met with the School Board on July 29, 2003, for a
14 work session. He added Council and the School Board were working together once every
15 quarter.
16
17 Mayor Hodson thanked Councilmember Sparks and Councilmember Horst for their work with
18 Village Fest. He stated Village Fest had been fortunate to have Congressman Sabo at the golf
19 tournament. He added Congressman Sabo had also been able to stay to bring in the parade.
20
21 Mayor Hodson stated he had received many positive comments about having the shopping center
22 open after the parade. He felt it had been a positive community event that should be continued.
23
24 Mayor Hodson noted he had not been able to attend the fireworks but had heard they were a
great success. He added the fireworks had enabled many residents to realize the assets available
at Three Rivers Park.
27
28 Mayor Hodson indicated there had been great progress toward the redevelopment plan of the
29 Northwest Quadrant. He also noted the City was moving forward on the Autumn Woods
30 project, which consisted of 38 units of senior housing.
31
32 IX. INFORMATION AND ANNOUNCEMENTS.
33 None.
34
35 X. MISCELLANEOUS INFORMATIONAL DOCUMENTS.
36 None.
37
38 XI. ADJOURNMENT.
39 Motion by Councilmember Faust to adjourn the meeting at 7:25 p.m.
40
41 otion c ied unanimoosl .
42
43 Respectfully submitted,
44 Marjorie R. Jenkins
45 TimeSaver Off Site Secretarial, Inc. Mayor
46 ATTEST: C', .
0 City Clerk