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HomeMy WebLinkAbout1980/12/29 - ADMIN - Minutes - City Council - Regular r. t MINUTES SPECIAL CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA December 29, 1980 1. Call to Order The meeting was called to order by Mayor Phyllis McQuaid at 12:05 p.m. 2. Roll Call The following Councilmembers were present at roll call : Ronald Backes Keith Meland Martha Elstrom John Ralles Jerrold Martin Phyllis McQuaid Also present were the City Manager, City Development Director and Finance Director. 3. Agenda It was moved by Councilman Backes, sec- onded by Councilman Meland, to approve the agenda with the addition of 4b District heating proposal. • RESOLUTIONS AND ORDINANCES 4a. Securities for Collateral Resolution approving securities for col- Resolution No. 6742 lateral from Shelard National Bank of St. Louis Park, Minnesota. It was moved by Councilman Meland, seconded by Councilman Ralles, to approve Resolution No. 6742 entitled, "Resolution approving securities for collateral from Shelard National Bank of St. Louis Park, Minnesota." The motion passed 5-0-1 (Councilman Backes abstained). 4b. Water and Sewer Rates; Second reading of ordinance in re water M: Ordinance No. 1490 and sewer rates. -t It was moved by Councilman Ralles, seconded by Councilman Elstrom, to waive reading and adopt Ordinance No. 1490 entitled, "An ordinance amending the St. Louis Park ordinance code: Section 9-101 , 'Water Rates' ; Section 9-231 , 'Sewer Rental Rates ' ; and Section 9-232, 'Sewer Bills. ' " The motion passed 5-1 (Councilman Meland opposed) . -463- . Special City Council meeting minutes December 29, 1980 4c. Suburban Rate Authority; Resolution designating director and Resolution No. 6743 alternate, Suburban Rate Authority. It was moved by Councilman Ralles , seconded by Councilman Elstrom, to waive reading and adopt Resolution No. 6743 entitled, "Resolution des- ignating director and alternate director to Suburban Rate Authority. " The motion passed 4-1-1 (Councilman Backes opposed, Councilman Meland abstained) . 4d. Mortgage Revenue Bonds Richard Lincoln, a representative from Miller & Schroeder, Inc. , explained to the Council that during the previous week they had attempted to sell the $23 million in mortgage revenue bonds for the City at a rate that would equal a 12% mortgage rate. Because of the difficulties that the current bond market is experiencing, Mr. Lincoln did not think that it would be possible to sell the mortgage revenue bonds at this rate. He further stated that he had held a meeting with the developers and lenders in- volved and that all but one were agreeable to a rate equaling 124%. He felt that the one uncommited party would be able to state a final opinion by Tuesday morning. Because of the need to close on the sale by December31 , 1980, Mr. Lincoln requested that the Council consider a special meeting on the 30th of December, 1980 to give approval to the new interest rate. In response to a question from Councilman Ralles, Mr. Lincoln stated that Congress had passed the so-called "Ullman —6i11" which prohibited the sale of mortgage revenue bonds by municipalities after January 1 , 1981 with the exception of a few cities such as Minneapolis. In response to another question from Councilman Ralles, Mr. Lincoln stated that if commercial mortgage rates were to drop below the 124% available through the mortgage revenue bonds, the commercial fees and short term earnings from interest plus any funds left unsold would be sufficient to redeem the bonds without the City incurring any loss. He further stated that the banks and developers still felt this process was a good business risk for them. Councilman Martin felt that the City was safe in proceeding with the mortgage revenue bond sale. Stan Kehl , attorney for Miller & Schroeder, stated that the Council could give approval during the current reading or wait until Tuesday, December 30 and give approval at that time. It was moved by Councilman Meland, seconded by Councilman Ralles, to defer consideration of this item until December 30, 1980 at 12:00 noon. The motion passed 6-0. -464- City Council meeting minutes December 29, 1980 NEW BUSINESS g_ 53. Bid tab: 920-3000 Bid tabulation - Newsletter. It was moved by Councilman Meland, seconded by Councilman Martin, to designate Associated Lithographers, Inc. as low bidder in the amount of $6,534 for production of the bi-monthly City newsletter and that the Mayor and City Manager be authorized to execute a contract with Associated Lithographers, Inc. and that staff be authorized to use the bulk rate carrier route pre-sort services of the U.S. Post Office for distribution of the newsletter. The motion passed 6-0. 5b. District heating District heating proposal for Beltline proposal Boulevard using a refuse incineration plant. Councilman Martin said that the proposal appeared to be a good deal for the City and that it would be worth pursuing to see if the concept is feasible. Mayor McQuaid thought the idea was worth exploring. ;s Councilman Ralles stated that he had visited a number of refuse disposal sites and feels that the concept may be workable in St. Louis Park. It was moved by Councilman Martin, seconded by Councilman Ralles, to use the services of E-kono, Inc. in submitting a proposal for district heating and cooling to the Department of Housing and Urban Development and Department of Energy. The motion passed 6-0. CLAIMS, APPROPRIATIONS & CONTRACT PAYMENTS 6a. Verified claims Verified claims. It was moved by Councilman Martin, seconded by Councilman Meland, that the list of verified claims prepared by the Director of Finance and directed to the City Council dated December 29, 1980 in the total amount of $299,809.56 for vendors and $6,626.86 for payroll be approved and the City Manager and City Treasurer be authorized to issue checks in the same amount by a vote of 6-0. 7. Continuance On a motion of Councilman Martin, 4 seconded by Councilman Backes, the meeting was continued to 12:00 noon Tuesday, December 30, 1980 by a vote of 6-0. -465- .