COUNCIL PROCEEDINGS OCTOBER 7, 2014
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1 COUNCIL PROCEEDINGS OCTOBER 7, 2014 The City Council of Thief River Falls, Minnesota, met in regular session at 5:00 p.m. on October 7, 2014 in the Council Chambers of City Hall. The following Councilmembers were present: Cullen, Dagg, Hahn, Prudhomme, Schmalz, Sollom, Kajewski, and Brown. No Councilmembers were absent. Dagg chaired the meeting. PRESENTATIONS/PROCLAMATIONS/PUBLIC INFO/ANNOUNCEMENTS Airport Manager Joe Hedrick presented information on airport activities Prudhomme presented some community activities Mayor Dagg presented Blood Drive results and two thank you letters Barron Family thanking the City for honoring Don Barron and another thanking the City for the Greenwood Area Improvements Kajewski presented information from the Water Trail Summit he attended APPROVAL OF AGENDA Councilmember Kajewski motioned, being seconded by Councilmember Cullen, to approve the agenda with the addition of two items. On vote being taken, the motion was unanimously approved. RESOLUTION NO : APPROVAL OF COUNCIL PROCEEDINGS , being seconded by Councilmember Sollom, that: RESOLVED, by the City Council, to approve September 2, On vote being taken, the motion was unanimously approved. RESOLUTION NO : APPROVAL OF PAYMENT OF BILLS , being seconded by Councilmember Sollom, that: RESOLVED, by the City Council, to authorize payment of bills and disbursements in the total amount of $2,394, A printout of the approved payments and disbursements is attached hereto and made a part hereof. On vote being taken, the motion was unanimously approved. RESOLUTION NO : APPROVAL OF SAFETY MANAGEMENT PROGRAM CONTRACT WITH MINNESOTA MUNICIPAL UTILITIES ASSOCIATION , being seconded by Councilmember Sollom, that:
2 Page 2 of 7 RESOLVED, by the City Council, to authorize and direct the Mayor and City Administrator to execute a Safety Management Program Contract with the Minnesota Municipal Utilities Association (MMUA), effective October 1, 2014 through September 30, The City shall pay MMUA $20, to administer the City s Safety Program for the contract period. RESOLUTION NO : RESOLUTION ESTABLISHING PROCEDURES RELATING TO COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE , being seconded by Councilmember Sollom, that: BE IT RESOLVED by the City Council (the "Council") of the City of Thief River Falls, Minnesota (the "City"), as follows: Recitals. The Internal Revenue Service has issued Treasury Regulations, Section (as the same may be amended or supplemented, the "Regulations"), dealing with "reimbursement bond" proceeds, being proceeds of bonds used to reimburse the City for any project expenditure paid by the City prior to the time of the issuance of those bonds. The Regulations generally require that the City (as the issuer of or the primary obligor under the bonds) make a declaration of intent to reimburse itself for such prior expenditures out of the proceeds of subsequently issued bonds, that such declaration be made not later than 60 days after the expenditure is actually paid, and that the bonding occur and the written reimbursement allocation be made from the proceeds of such bonds within 18 months after the later of (1) the date of payment of the expenditure or (2) the date the project is placed in service (but in no event more than 3 years after actual payment). The City heretofore implemented procedures for compliance with the predecessor versions of the Regulations and desires to amend and supplement those procedures to ensure compliance with the Regulations. The City's bond counsel has advised the City that the Regulations do not apply, and hence the provisions of this Resolution are intended to have no application, to payments of City project costs first made by the City out of the proceeds of bonds issued prior to the date of such payments. Official Intent Declaration. The Regulations, in the situations in which they apply, require the City to have declared an official intent (the "Declaration") to reimburse itself for previously paid project expenditures out of the proceeds of subsequently issued bonds. The Council hereby authorizes the Administrator to make the City's Declarations or to delegate from time to time that
3 Page 3 of 7 responsibility to other appropriate City employees. Each Declaration shall comply with the requirements of the Regulations, including without limitation the following: Each Declaration shall be made not later than 60 days after payment of the applicable project cost and shall state that the City reasonably expects to reimburse itself for the expenditure out of the proceeds of a bond issue or similar borrowing. Each Declaration may be made substantially in the form of the Exhibit A which is attached to and made a part of this Resolution, or in any other format which may at the time comply with the Regulations. Each Declaration shall (1) contain a reasonably accurate description of the "project," as defined in the Regulations (which may include the property or program to be financed, as applicable), to which the expenditure relates and (2) state the maximum principal amount of bonding expected to be issued for that project. Care shall be taken so that the City, or its authorized representatives under this Resolution, not make Declarations in cases where the City doesn't reasonably expect that reimbursement bonds will be issued to finance the subject project costs, and the City officials are hereby authorized to consult with bond counsel to the City concerning the requirements of the Regulations and their application in particular circumstances. The Council shall be advised from time to time on the desirability and timing of the issuance of reimbursement bonds relating to project expenditures for which the City has made Declarations. Reimbursement Allocations. If the City is acting as the issuer of the reimbursement bonds, the designated City officials shall also be responsible for making the "reimbursement allocations" described in the Regulations, being generally written allocations that evidence the City's use of the applicable bond proceeds to reimburse the original expenditures. Effect. This Resolution shall amend and supplement all prior resolutions and/or procedures adopted by the City for compliance with the Regulations (or their predecessor versions), and, henceforth, in the event of any inconsistency, the provisions of this Resolution shall apply and govern. EXHIBIT A Declaration of Official Intent The undersigned, being the duly appointed and acting Administrator of the City of Thief River Falls, Minnesota (the "City"), pursuant to and for purposes of compliance with Treasury Regulations, Section (the "Regulations"), under the Internal Revenue Code of 1986, as amended, hereby states and certifies on behalf of the City as follows:
4 Page 4 of 7 1. The undersigned has been and is on the date hereof duly authorized by the Thief River Falls City Council to make and execute this Declaration of Official Intent (the "Declaration") for and on behalf of the City. 2. This Declaration relates to the following project, property or program (the "Project") and the costs thereof to be financed: STREET & UTILITIES IMPROVEMENTS PROJECT The City reasonably expects to reimburse itself for the payment of certain costs of the Project out of the proceeds of a bond issue or similar borrowing (the "Bonds") to be issued after the date of payment of such costs. As of the date hereof, the City reasonably expects that $800,000 is the maximum principal amount of the Bonds which will be issued to finance the Project. Each expenditure to be reimbursed from the Bonds is or will be a capital expenditure or a cost of issuance, or any of the other types of expenditures described in Section (d)(3) of the Regulations. As of the date hereof, the statements and expectations contained in this Declaration are believed to be reasonable and accurate. RESOLUTION NO : APPROVAL OF ELECTION JUDGES FOR THE GENERAL ELECTION , being seconded by Councilmember Sollom, that: RESOLVED, by the City Council, to appoint the following people as Election Judges for the General Election to be held on November 4, 2014: Sheron Stewart Debra Fulton Chris Burnham Valorie Johnson Jan Strandlie Peggy Bergsnev Elna Jean Lendobeja Sharon Russell Opal Dargus Heather Burrier June Swanson Carole Glass Linda Ramsey Donna Koehmstedt Jan Dillon Marilyn Wigness Betty Carlson Kathy Olson Susan Buhl Della Burstad Marlene Beedy Dee Wollenzien Lisa LeClaire Cynthia Tomsich Jessica Hodne Melby Laidley Gerry Stocks Mary Cox Judith Reger Olive Goldsberry
5 Page 5 of 7 Mary Jo Mugaas Bev Lunde Theresa Vanyo Butch Koehmstedt Ralph Cox Paul Brandt Gloria Peterson Deb Jacobson Tim Olson Larissa Fitzgerald BE IT FURTHER RESOLVED, that the City Clerk shall appoint substitutions of the approved election judges as necessary. RESOLUTION NO : APPROVAL OF EMPLOYMENT OF MICHELLE PAULSON AS BILLING CLERK The City Council reviewed the recommendation for hiring a Utility Billing Clerk. Following discussion, Councilmember Cullen introduced Resolution No , being seconded by Councilmember Prudhomme, that: WHEREAS, the position of Billing Clerk was vacated following the internal transfer of Jennifer Davis to the position of Community Services Secretary. The position was opened to the public for filling. Fifteen applications were received and five applicants were interviewed, with Ms. Paulson being chosen as the successful applicant. THEREFORE, BE IT RESOLVED, by the City Council, to approve the employment of Michelle Paulson as Billing Clerk. Ms. Paulson shall begin employment on October 8, 2014 at Step 3 of the Grade Level 4 Billing Clerk salary schedule, for a starting salary of $18.94 per hour. RESOLUTION NO : APPROVAL OF LOW BID FROM VISU-SEWER AS PART OF THE 2014 STREET & UTILITIES PROJECT Mark Borseth, Community Services Director, presented a recommendation. Following discussion, Councilmember Sollom introduced Resolution No , being seconded by Councilmember Kajewski, that: WHEREAS, the need for these improvements was identified through cleaning and televising maintenance projects. Television inspection has revealed sections of cracked and deteriorating segments of pipe that are at risk of collapse; and WHEREAS, the City Council authorized this work through the 2014 Street & Utilities Improvements Project approval process. Bids for this project were opened on September 18 th with bids from five contractors. This project included the following items of work:
6 Page 6 of 7 1. Approximately 1,400 L.F. of storm sewer pipe lining in the area adjacent to the School District 564 bus garage. 2. Approximately 2,200 L.F. of sanitary sewer pipe lining on Tindolph Avenue from Annie Street to Michael Street, and on Duluth Avenue from 4 th Street to 9 th Street THEREFORE, BE IT RESOLVED, by the City Council, to approve the low bid of $224, from Visu-Sewer and award the project. RESOLUTION NO : APPROVAL TO REPLACE CURLING CLUB FURNACE SUBJECT TO THE CURLING CLUB SIGNING A NOTE TO REPAY A Utilities Committee Recommendation was presented. Following discussion, Councilmember Kajewski introduced Resolution No , being seconded by Councilmember Cullen, that: WHEREAS, the City owns the Curling Club Building and leases it to them for $500 per year. The oil furnace is inefficient and is in need of replacement. The Club would like to install a new gas line, new furnace and four hanging heaters at a cost of $14,200 paying the city back over eight years. THEREFORE, BE IT RESOLVED, by the City Council, to accept the Utilities Committee recommendation to pay approximately $14,220 less any rebates to install a gas line and replace furnaces at the City owned Curling Club Building subject to the Curling Club paying $2,000 on or before March 1, 2015 and signing a note to repay $12,200 to the City over eight years at 5% interest. Upon completion, the amortization schedule to be adjusted to reflect the actual costs. RESOLUTION NO : APPROVAL OF DECLARATION OF CITY SURPLUS PROPERTY A Parks & Recreation Committee Recommendation was presented. Following discussion, Councilmember Brown introduced Resolution No , being seconded by Councilmember Hahn, that: RESOLVED, by the City Council, to accept a Committee recommendation to declare as surplus property and to authorize their sale through online auction or to be sold as scrap: Parks & Recreation Department TORO mower with snow blower attachment John Deere 955 utility tractor with snow blower, broom, and finish mower attachment Plow for 1-ton truck
7 Page 7 of 7 RESOLUTION NO : APPROVAL OF WHOLE COUNCIL BEING INVOLVED IN THE INTERVIEW PROCESS FOR POLICE CHIEF Larry gave an update on the Police Chief Search. Following discussion, Councilmember Brown introduced Resolution No , being seconded by Councilmember Sollom, that: RESOLVED, by the City Council, for the whole Council be involved in the interview process for Police Chief. UPCOMING MEETINGS/EVENTS Utilities Committee Meeting October 13 th at 4:30 p.m. Parks & Recreation/Public Safety Committee Meeting October 14 th at 4:30 p.m. Public Works Committee Meeting October 15 th at 4:30 p.m. Administrative Services Committee Meeting October 16 th at 4:30 p.m. City Council Meeting October 21 st at 5:00 p.m. League of MN Cities 2014 Regional Meetings October 28 th MnDOT/City Council Meeting October 30 th at noon in the Council Chambers ADJOURNMENT There being no further discussion, Councilmember Kajewski moved, being seconded by Councilmember Hahn, to adjourn the meeting at 5:55 p.m. On vote being taken, the Chair declared the motion unanimously carried. Jim Dagg, Mayor Attest: Larry Kruse, City Administrator
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