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06/29/1970 - 00018706��0 TI-IE MIIQUTES OF THL� SP�CIAL COUNCIL MEETING OF JUNE 29, 1970 Councilman Sheridan, Mayor Pro tem called the Special Council Meeting o£ Sune 29, 1970 to order at 7:50 P.M. PLEDGE OF ALLEGIANCE: Mayor Sheridan Pro tem lead the Council and the audience in saying the Pledge of Allegiance to the Flag. ROLL CALL MEMB�RS P12�SENT: Lieb1, Breider, Sheradan MEMBERS ABSENT: Kirkham, I-Iarris ADOPTION OF AGENDFI. MOTION by Councilman Liebl to adopt the Agenda as presented. Seconded by Councilman Breider. Upon a voice vote, all voting aye, Mayor Sheridan Pro tem declared the motion carried. OPENING OF BIDS FOR $1�330,000 SPECIAL ASSESSMENT BONDS AND $fl60�00D WATER WORKS BONDS: Mr. Robert Ehlers, Fiscal Consultant, introduced Mr. Jerry Donlinger, of Juran and Moody, Inc., and reported that one bid has been received as follows: ACCOUNT MANAGER Juran & Moody, Inc., St. Paul, Minnesota ACCOUNT MEMBERS Allison-Williams Company, Minneapolis, Minnesota American National Bank & Srust Co., St. Paul, Minn. Dain, Kalman & Quail, Inc., Minneapolis, Minnesota First National Bank of Minneapolis, Minneapolis, Minn. The First National Bank of St. Paul, St. Paul, Minn. Merrill Lynch, Pierce, Fenner & Smith, Ine., Mpls. Northwestern National Bank of Minneapolis, Mpls. Paine, Webber, Sackson & Curtis, Minneapolis, Minn. Piper, Jaffery & Hopwood Inc., Minneapolis, Minn. �.J. Prescott & Company, Minneapolis, Minnesota Caldwell Phillips, Inc., St. Paul, Minnesota N�T INTEREST COST $ 978,942.50 NET INT�REST RATE 6.95765°s �Ir. Ehlers handed the Council a copy of the Dow Sones Bond Inde.�c which showed the relative movement of the market. He reported that the visit to New York was somewhat successEul in that the City of Fridley's rating was raised from BAA to BAA.-1. This would mean that if Fridley continues to improve as it has in the past, they would be candidates for the A rating. He said that interest ratios have improved since the sale was first scheduled. Probably the City would not have received any bids on Sune lst. He pointed out that Bloomington, Eden Prairie School Board, and Willmar had a bond sale and did not receive any bids. Councilman Liebl said that Mr. Ehlers has recommended waiting about a month before going for bids. He asked what was the rating o£ � � � i , � �P �� SPECIAL COUNCIL MEETING OF JUNE 29, 1970 PAGE 2 � the other communities that received no bids. Mr. Ehlers said that Bloomington's rating is BAA. He then read from the bid the interest rates until the year 1991. Mayox Shexidan Pro tem said that it was in order to xeceive the bids and turn them over to Mr. Ehlers to tabulate. The City Attorney said that he bela.eved that according to the Charter it would take four votes to make a bid award on bonds. Mr. Ehlers pointed out that there were four votes of the Council when the sale was authorized. He added that it was very necessary to make a prompt award as the market is very volatile. Mr. Donlinger said that the award should be made by 10:00 A.M. the next day at the latest. The Ca.ty Attorney suggested that the bid award could be made, and ratified at the next Council meeting by at least £our votes. He volunteered to call the bond approving attorney and see if an award with three votes and ratification at the next meeting by at least four votes would satis£y them. He was asked by the Council to do so. MOTION by Councilman Liebl to receive the bid of .7uran and Moody, Inc. for $1,790,000 General Obligation Bonds orith a net interest cost of $975,942.50 and a 6.95765% net interest rate. Seconded by Councilman Breider. Upon a voice vote, all vQting aye, Mayor Shexidan Pro tem declared the motion carried. � RESOLUTION #124-1970 - A RESOLUSION TRANSFERRING CERTAIN COSTS FROM THE ST. 1969-2 STREET IMPROVEMENT PROJECT TO THE REVOLVING ACCOUNT OF THE STATE AID FUND: Councilman Liebl asked what this transfer of funds was for. The City Engineer said that there was some storm sewer xepair work on 73rd Avenue necessary before the street work could be accomplished. The pavement construction was assessed to the property owners, but this facility has already been paid up. This is considered to be a maintenance cost, and will come from state aid money. MOTION by Councilman Liebl to adopt Resolution #124-1970. Seconded by Council- man Breider. Upon a voice vote, all voting aye, Mayor Sheridan Pro tem declared the motion carxied. RESOLUTION #125-1970 - A RESOLUTION DIRECTING TIiE ISSUANCE OF TEMPORARY IMPROVEMENT BONDS IN ACCORDANCE WITH LAW5 OF 1957� CIIDPTER 385 (STREET IMPROVEMENT PROJECT ST. 1970-1 AND ST. 1970-2): MOTION by Councilman Llebl to adopt Resolution #125-1970. Seconded by Councilman Breider. Upon a voice vote, all voting aye, Mayor Shexidan Pro tem declared the motion casried. RESOLUTION #126-1970 - A RESOLIITION DIRECTING THE SALE AND PURCHASE OF TEMPORARY IMPROVEMENT BONDS IN ACCORDANCE WITH LAWS OF 1957� CHAPTER 385 � (STREET IMPROVEMENT PROJECT ST. 1970-1 AND ST. 1970-2): MOTION by Councilman Liebl to adopt Resolution #126-1970. Seconded by Councilman Breider. Upon a voice vote, all voting aye, Mayor Shesidan Pro tem declared the motion carried. c) c'� � e�i �� SPECIAL COUNCIL MEETING OF JIINE 29, 1970 PAGE 3 RESOLUTION #127-1970 - A RESOLUTION CERTIFYING CHARGES TO THE COUNTY AUDITOR TO BE LEVIED AGAINST CERTASN PROPERTIES FOR COLLECTION WITH THE TAXES PAYABLE IN 1971: Councilman Ereider asked what this was for. The Finance Director explained that this is to abate a nuisance, usually for the removal of debris considered to be a health hazard. MOTION by Councilman Liebl to adopt Resolution #127-1970. Seconded by Councilman Sreider. Upon a voice vote, all voting aye, Mayor Sheridan Pro tem declared the motion carried. CONSIDERATIDN OF EMPLOYMENT POLICY (CITY MEMO #5-197D): Councilman Liebl said that it was brought to the attention of the Council that for some people hired many years ago, there was a delay in their Council appointment. This irregularity should be rectified. The City Manager said that this Employment Policy is designed to correct any irregularities and to el.xminate errors of this nature in the future. A person could not Y�e held over nine months on a temporary basis without signinq a waiver. MOTION by Councilman Lzebl to adopt the Employment Policy outlined in City Memorandum #5-1970 as City policy. Seconded by Councilman Breider. Upon a voice vote, all voting aye, Mayor Sheridan Pro tem declared the motion carried CONSIDERATION OF BAI�ANCE OF NEGOTIATIONS WITH PUBLIC WORKS LOCAL #49 AND CITY FOR 1970: Councilman Liebl said that it seemed that there were four new specifin special classifications set up. The City Manager said that before there was specified a light equipment operator and a heavy equipment operator. This schedule sets up some sort of uniformity all the way across, and makes an interim rate. He pointed out that all the men must go through atrial period before stepping up to a higher scale. Councilman Liebl asked him if he felt that adopting this schedule of classification would enhance the e£fectiveness of each department, and the City Manager said yes, he said that he mas never a believer in the heavy equipment rating and that the new method of classi- fication is more appropos to municipal government, Councilman Sheridan wondered if there was enough spread between the trial period pay and the permanent basis. The City Manager said that it was 50°s and was outlined in his memorandum. He said that they have tried to lay out some continuity and pointed out that there would also be negotiations on this at the metropolitan level. Councilman Sheridan asked how a man qualifies for a trial perlod. The City Manager said upon the recommendation of his foreman. There would also be a test to test these men out. I£ they are not qualified, they would revert to their previous position. Because a man has been on a 7ob for a specific amount of time does not mean that he would automatically move up, there would have to be a vacancy. There are also requirements that a man would have to have a specific number of hours on certain equipment, Councilman Breider said that there must be uniform standards for stepping up. He asked what crrteria was used now. The City Manager said that the recommendation of the foreman and the departsnent head is usad. V�...l � � ��-� � Pj p,I SPECIAL COUNCIL MEETING OF JUNE 29, 1970 PAGE 4 � Councilman Liebl asked about the date of permanent employment of James Bates, Richard Hloom and Dennis Ottem. The City Manager said that if the total - package was accepted, their dates of employment would be June 11, 1962. He continued that there would be four men moving up. There would be a step system and adoption of pay raises established. MOTION by Councilman Liebl to adopt the recommendation of the City Manager and accept the total packaqe presented by the Manaqement and Loca1 #49, Seconded by Councilman Breider for discussion. Councilman Breider asked about the three men that will have their date of permanent employment changed and asked why they have to waive their rights to P.E.R.A. The City Manager said that it would be very complicated to go back and try to straighten this out and it would not amount to much one way or the other, as it is only a matter of about 6 months. THE VOTE UPON THE MOTION, being a voice vote, all voting aye, Mayor Sheridan Pro tem declared the motion carried. AWARDING THE SIDS FOR $1,330,000 SPECTAL ASSESSMENT BONDS AND $460,000 WATER WORKS BONDS: The C�.ty Attorney reported that he had talked to the Attorney for Juran & Moody, Inc. and he felt that the Council could award the bid wi�h three votes � and ratify their action at the next Council Meeting when more of the Council is present. It was pointed out that two of the Councilmen were on vacation and out of town. Mr. Donlinger said that this would satisfy him. N1r. Ehlers said that he had checked the Minutes of the Meeting settinq the sale and it was done by at least four votes of the Council, and he was satisfied that the Charter was being followed. He said that his recommendation is that the award should be made to Juran & Moody, Inc. Councilman Liebl asked Mr. Ehlers in his opinion, if the interest rate is above or below average and Mr, Ehlers said that he felt that it was about average. Councilman Liebl said that in the years he has been on the Council, they have always received competent advice from the fiscal consultant. Mr. Ehlers commented that in Minnesota bonds are tax exempt which makes them easier to sel1. RESOLUTION #128-1970 - A RESGLUTION AWARDING THE SALE OF $1,330,000 SPECIAL ASSESSMENT BONDS AND $460,000 WATER WORKS BONDS MOTION by Councilman Liebl to adopt Resolution #125-1970. Seconded by Councilman Breider. Upon a roll call vote, Breider, Sheridan, and Liebl voting aye, Mayor Shesidan Pro tem declared the motion carried. RESOLUTION #129-1970 - RESOLUTION RELA.TING TO $1,330,000 SPECIAL ASSESSMENT FUND SONDS, FIXING THE FORMS AND SPECIFICATIONS TA�REFORE AND DIRECTING THEIR �XECUTION AND DELIVERY AND PROVIDING FOR TfIFIR PAYMENT: � MOTION by Councilman Liebl to adopt Resolution #129-1197D. Seconded by Councilman Breider. Upon a roll call vote, Breider, Shera.dan and Liebl voting aye, Mayos Shexidan Pro tem declared the motion carried. 13�� SPECIAL COUNCIL MEETING OF JUNE 29, 1970 PAGE 5 RESOLUTION #130-1970 - A RESOLUTION RELATING TO $460,000 WATERWORKS � BONDS, FIXING THE FORMS AND SPECIEICATIONS THEREOF, DIRECTING THEIR EXECUTION AND DELIVERY THEREOF AND LEVYING TAXES FOR THEIR PAYMENT MOTION by Councilman Breider to adopt Resolution #130-1970. Seconded by Councilman Liebl. Upon a roll call vote, Breider, Sheridan, and Liebl ooting aye, Mayor Sheridan Pro tem declared the motion carried. The Council authorized Councilman Sheridan to act as Mayor in signing three copies of the bond. Mayor Sheridan Pro tem and the Czty Manager's signatures were obtalned. CONSIDERATION OF INTERIM PAY RAISES FOR NON-UNION CITY EMPLOYEES: The City Manager suggested that for those non-union employees whose salaries are set by direct Council action in the budget, other than himself, that a 2% pay increase be given to try to form some sort of an equity with the union employees. It was not known at the time of the budget adoption what was going to happen with the union wages. He added that possibly some may have to come from emergency funds. Councilman Breider said that it appears that it will cover all non-union workers except the City Manager. The City Manager said yes. Councilman Breider asked how, at the present time, he arrives at the pay increases for the non-union people. The City Manager said that they went over information from other municipalities, consider cost of living increases, and a comparision of various 7ob skills were made. He said � that they try to make a fair and equitable increase for everyone. This is done in August and since then there have been quite a few changes. Councilman Sheridan asked if the budget could stand making the raises retro- active. The City Manager said that rt would be pretty close and he would hesitate to say the budget could absorb that. Councilman Sheridan said that it seems that the non-union employees would be getting a raise from July lst, but the union raises are retroactive to January 1st. If funds can be found to pay the union employees, he felt that somehow there should be funds for the non-union employees to receive retroactive pay also from the first of the year. Councilman Liebl agreed that if retroactive for one set of people, it should be for all. He said that the cost of living increases are the same for all employees. Councilman Breider said that hxs only concern is that he did not like across the board raises. There are union people and professional people and the professzonal people should be �udged on their merits. He did not like the idea of everyone getting a 2o across the board raise. He said that he would like very much next time salaries are incxeased for the City Manager to pro7ect to the Council salary increases in line with what 7oH the people are doinq and done on a merit systen. He said that in this case he would vote for the 2� increase but he did not want these standard rates to be creeping into the system of wage increases for professional people. The City Manager said that far the initial raise when the budget is adopted, � this is done. Councilman Breider said that for next year he would like to see adequate reviews and not only compare with other municipalities but with private industry. The wages have to be kept competitive. He said that he would go along with the 2o increase now, but he would not go along with a percentage increase next year. He said that the Council ha3 better make sure the budqet is adequate next year before it is adopted. SPECIAL COUNCIL MEETING OF JUNE 29, 197D , ,h i �� �M PAGE 6 � The Fire Chief said that the Fire Department is non-union and at the time the budget was approved, he felt that the figures were adequate, but now they - do not compare with the Police Department or other communities for first class firefighters. Most of the other cocnmunities are at about $845 for first class firefighters. He said that there was the Fire Prevention Chief, himself and three firefighters. He said that he was speaking for his men in that they are getting below what other communities have settled for. Councilman Liebl said that if this is approved the Fire Department would get an additional $1,043.92. He added that �he Council cannot go l�eyond the budget. The City Manager has spent many houss negotiating contracts. Once a budget is adopted, it has to be lived with. Councilman Sheridan said that possibly some of the funds will have to come from the emergency funds. The Finance Director said that there was about $30,OOD in the emergency fund now. MOTION by Councilman Liebl to authorize a 2% pay increase to all non-union employees, except the City Manager, retroactive to the first of the year_ If the funds are not ample in the departmental budgets, the funds to come from the emergency funds. Seconded by Councilman Breider. Upon a voice vote, all voting aye, Mayor Sheridan Pro tem declared the motion carried. D.M. NOYES CONSTRUCTION COMPANY - PROSECT The City Engineer reported that no work has been done, so there is no estimate. They were unable to meet their payroll and work has been suspended. They have � gone to their bonding company now, and the bonding company has requested some information which Comstock and Davis, Inc., Consulting Engineers has supplied. The City Attorney said that every indication is that Home Owners Insurance will take care of the pro7ect. They will call in a consulting engineer who will meet with Mr. Comstock, and a determination would then be made on the method of pYOCeeding. The City should give Noyes a reasonable time to rectify the pro�ect and if they do not do it, then the Crty wi11 have to go to the bonding company. Then a determination will have to be made on whether D.M. Noyes Construction Company or another contractor will finish the �ob. I£ there is an emergency situation that cannot wait, he suggested that some of the Public Works employees could be authorized to correct it. The City Engineer said that there is some problem. There are industries that have built in Onaway Addition in anticipation of sewer and water being available. The completion date Ls Suly lst. Councilman Sheridan asked what percentage of the work is completed. Mr. Comstock said that there has been about $148,000 paid out of a total contract of $235,000. He sazd that the total contract seems to be slightly less than $235,000. Amber Oaks Addition has not been started yet and there is a possibility that this could be neqotiated out of the contract. The Finance Director commented that the Crty does have public liability insurance. MOTION by Councilman Liebl to receive the communication from Aome Owners Insurance Company, 100 West Franklin Avenue, Minneapolis, Minnesota dated � Sune 25, 1970, and the communication from Comstock and Davis, Inc. dated June 29, 1970. Seconded by Councilman Breider. Upon a voice vote, all voting aye, Mayor Sheridan Pro tem declared the motion carried. � � �> � SPECIAL COUNCIL MEETING OF JUNE 29, 1970 INSURANCE COMMITTEE TO MEET WITH THE COUNCIL ON EMPLOYEE INSURANCE: PAGE 7 The Finance Director pointed out that some of the members of the insuxance committee are present, and that a comparison of the costs of the present policy and the proposed policy with Hennepin County is covered in his memo- randum dated Sune 26, 1970. It is their recommendation to go to the Hennepin County Blue Cross MII plan. Councilman Liebl said that MII gives good coverage, but he would be concerned about whether Blue Cross, Blue Shield and MII a�e regulated by the 5tate Insurance Commission. He said that if they are regulated by the State, he would have some faith in it. It was pointed out that Blue Shield is not part of this plan. The City Attorney said that he thought that they were governed by the State Insurance Commission, but that he would check for sure on their stability. He pointed out that even if they are regulated by the State Insurance Commissioner, they could be unrelial�le, as the Insurance Commission is understaffed, and companies have been going bankrupt, even though they are regulated. Councilman Liebl asked the Finance Director how much percentage would be received back. The Finance Director said 940 of the premium as a whole. This is a 4000 person group and each quarter a review zs made and the rates would be ad�usted. He said that however, with such a large group the premiums would remain fairly stable. Councilman Liebl said that according to the newspaper, Blue Cross took over the deficit of Blue Shield. He said that he would like some security that MII is financially sound. Mayor Sheridan Pro tem asked that this item be put on the Agenda for the Meeting of the 6th of July as the second item, after it is researched. ADJOURNMENT: MOTION by Councilman Liebl to ad�ourn. Seconded by Councilman Breider. Upon a voice vote, all voting aye, Mayor Sheridan Pro tem declared the Special Council Meeting of June 29, 1970 ad�ourned at 9:20 P.M. Respectfully submitted, �-�`i.�'�%�i Juel Mercer Secretary to the City Council , ,,,e ,�C U°_ ���� A.w-. � Jack D. Kirkham , _ Mayor � � �