HomeMy WebLinkAboutSP June 21, 1989
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CITY of ANDOVER
Special Council Meeting - June 21, 1989
7:30 P.M.
Call to Order
1. Status of Computer and Accounting System
2, 1990 Budget and Status of Truth in 'Taxation
Laws
3, Assessment Policy Discussion
4. Bonding Procedure and Use of a Financial
Consultant
5. Laptuta Property and New City Hall Building
6, Financial Institution Discussion
7. Administrative Trust Fund Purpose and Use
8. Authorized Banking Personnel
Adjourn
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CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
June 21, 1989
DATE
Finance
AGENDA SECTION
NO.
ORIGINATING DEPARTMENT
ITEM
NO.
Status of Computer and
Accounting System BY:
Howard Koolick
Finance Director
REQUEST
The Finance Director would like to discuss with the City Council
the status of the City's computer system as it relates to the
following four topics:
1. The potential options for the future and the Finance
Director's recommendation,
2. The process and proposed calendar to be used in
reaching a solution.
3. The continued involvement of Chapel Consulting.
4. The offer made by Ameridata to compensate the City
for the hardware.
BACKGROUND
Attached is a summary from Jim Stern of Chapel Consulting which
was prepared for City Council in September of 1988. Several items
in this summary have changed since Mr. Stern's memo was written,
These changes include:
1. Page 2 - The moonlighting Ameridata employee is no
longer available.
2. Page 3 - The NMS marketing rights were acquired by the
Wisconsin company for the personal computer version of
NMS only. I have talked with them and they are not
capable of supporting the programs on DEC hardware,
COUNCIL ACTION
MOTION BY
TO
SECOND BY
Special Council Meeting
June 21, 1989
Status of Computer and
Accounting System
o
Based on discussions with Mr, Stern and the City Staff it appears
there are several options available to the City. Each option is
discussed below.
OPTION 1: KEEP CURRENT SYSTEM AND
ATTEMPT TO MAKE IT WORK
The City could keep the current system and use City staff to set
it up and attempt to operate the software,
Advantages:
*The City will have word processing and spreadsheeting
software which work effectively.
*There would be no additional costs incurred except for annual
maintenance agreements for the hardware and support for the
word processing and spreadsheet software,
Disadvantages:
*The City will have a financial accounting package which is
not supported. This lack of available support combined with
problems with the system has led most city's with which I
have talked to purchase new accounting systems.
*There is no guarantee that the City staff will be able to set
up and train themselves on the system. Should a problem be
discovered, the staff would be forced to solve it without any
available expertise.
*The City would be using a financial accounting package which
will not be upgraded or improved.
*The City will be using a word processing package which will
also not be updated. The company is, however marketing a
newer version of the software which could be bought,
OPTION 2: KEEP THE CURRENT SYSTEM AND
PURCHASE A SEPARATE SYSTEM TO RUN
THE ACCOUNTING SOFTWARE
The City could continue to do wordprocessing and spreadsheeting on
the current hardware and purchase a separate system for running
the accounting software.
o
Special Council Meeting
June 21, 1989
Status of Computer
and Accounting System
o
OPTION 2: KEEP THE CURRENT SYSTEM AND
PURCHASE A SEPARATE SYSTEM TO RUN
THE ACCOUNTING SOFTWARE(Continued)
Advantages:
*The City would have a computerized accounting system which
would be functional and supported.
*The City staff would receive training in the use of the new
system and would be well supported by the vendor during the
conversion process,
*The City would receive on-going support of its accounting
software
*The City will have word processing and spreadsheeting
software which work effectively,
Disadvantages:
*This option would be costly over the long term since the City
would be paying maintenance on two hardware configurations.
*The City staff would need to be knowledgeable in the
operation of two different systems.
*The two systems will not be able to communicate with each
other which will decrease their effectiveness.
*The staff would have to convert the existing utility billing
data to the new system.
OPTION 3: ACQUIRE NEW HARDWARE AND SOFTWARE
FOR ALL PURPOSES
The City can purchase new hardware and software to run all
applications including accounting functions, word processing,
spreadsheeting and office automation.
Advantages:
*The City would have a computerized accounting system which
would be functional and supported,
*The City staff would receive training in the use of the new
system and would be well supported by the vendor during the
conversion process,
o
*The City would receive on-going support of its accounting
software
*The City could be using word processing and spreadsheeting
software which is actively being improved and upgraded.
*The City would be able to sell the all or part of the current
hardware (depending on the system acquired).
Special Council Meeting
June 21, 1989
Status of Computer and
Accounting System
o
Disadvantages:
*This option could be very costly depending on the system
selected and any proceeds from the sale of the current
system.
*The City staff would have to learn new word processing and
spreadsheeting software,
*The staff would have to convert the existing utility billing
data to the new system.
OPTION 4: FIND ACCOUNTING SOFTWARE
TO RUN ON CURRENT HARDWARE
The City could attempt to acquire accounting software that would
operate on our current system. (This assumes that such software
exists.)
Advantages:
*The City would have a computerized accounting system which
would be functional and supported,
*The City staff would receive training in the use of the new
system and would be well supported by the vendor during the
conversion process,
*The City would receive on-going support of its accounting
software
*The City will have word processing and spreadsheeting
software which work effectively.
Disadvantages:
*There are currently no vendors in Minnesota selling software
for Cities designed to run on DEC hardware, This means that
the City will have to acquire software and support from an
out-of-state vendor,
*The City will have to rely on an out-of-state company for
support which may not be effective.
*The staff would have to convert the existing utility billing
data to the new system.
o
Special Council Meeting
June 21, 1989
Status of Computer and
Accounting System
o
OPTION 5: DO NOTHING
The City could do nothing and continue to use the computer for
wordprocesing and spreadsheeting only. The accounting system
would continue on a manual basis.
Advantages:
*The City will have word processing and spreadsheeting
software which work effectively.
Disadvantages:
*The City would continue to incur large costs for personnel
to administer the accounting system.
*The City's current accounting system does not allow easy
comparison between budget an actual expenditures or revenues.
EVALUATION OF OPTIONS
It is the Finance Director's belief that the City Should take a
long-term perspective when dealing with this issue. Those
alternatives that look costly over a short period may be more cost
effective in the long run than other options.
Option 1: This option does not appear to be feasible. Should the
City need information or the answer to a question in setting up
the system, there is no guarantee that an answer could be found
either in the manuals or through other sources, If staff was
successful in implementing the system, there is still the problem
of lack of support, It is possible that the City would spend a
significant amount of time and money attempting this option, only
to hit a point where we could go no further without software
support and maintenance.
o
Option 2: This option is feasible and could be implemented. It
does have several drawbacks, First, from preliminary discussions
with two vendors, it appears the City could acquire an entire new
system for approximately the same cost over a five year period,
depending on the system chosen, Second, the City would have word
processing and spreadsheeting capabilities that would not be
upgraded until a new system was installed.
Option 3: This option is feasible and could be implemented, It
is probably the most costly in the short run, but as mentioned
earlier, over a five year period, the cost is very close to Option
#2, The major benefit of this option, is the training that all
City staff could receive on the new software packages for word-
processing and spreadsheeting,
Special Council Meeting
June 21, 1989
Status of Computer and
Accounting System
o
EVALUATION OF OPTIONS(Continued)
Option 4: This option does not appear to be a wise option.
First, neither Mr. Stern or myself are aware of any software for
cities available to run on our current hardware, Second, relying
on out-of-state support can result in periods where the computer
is down and there is significant time delays between the call for
support and help arriving, Ideally, a vendor from the Twin Cities
would be the best, since they could respond in houts to a call. A
vendor from around the area, (such as Mankato, Hudson Wisconsin,
etc.) would be the next best alternative.
Option 5: The option of continuation of our current system is not
appropriate. There is a wealth of information that could be
gained from a different system. Some of this information includes
budget comparisons, cash forecasting and increased timeliness of
financial data,
FINANCE DIRECTOR'S RECOMMENDATION
Based on the above analysis, it is the recommendation of the City
Finance Director that the City pursue the option of acquiring new
hardware and software, (Option 3 above), This alternative should
ensure the City receiving a hardware configuration that it will be
able to expand and grow with as well as meeting our current needs,
As a second choice, purchasing separate hardware and software for
financial accounting only would be recommended. However, this
option leaves the city with the current system which will have
limited uses as well as having to pay support and maintenance on
both systems. Also to be considered, is the fact that several
optional uses of the computer, such as special assessment
accounting and computer mapping, are not currently feasible on our
DEC hardware.
PROPOSED PROCESS AND CALENDAR
Should City Council desire to act on either the Finance Director's
recommendation or another alternative, it is recommended that the
City prepare a request for proposal in order to evaluate potential
vendors. Using the RFP process would result in approximately the
following chain of events:
July 19, 1989 - Council approve RFP for distribution
August 11, 1989 (approximate) - Proposals due
o
September 22, 1989 - Completion of review of systems and
preparation of recommendation
October 3, 1989 - Approval by Council of recommendation and
authorization to begin contract negotiations
November 7, 1989 - Approval of Contract with selected vendor
December 1, 1989 - Delivery of hardware and software
Special Council Meeting
June 21, 1989
Status of Computer and
Accounting System
o
PROPOSED PROCESS AND CALENDAR(Continued)
December 1989 thru February 1990 - Training and testing of
system
April 1, 1990 - Total implementation of all applications
While the process sounds long and drawn out, it needs to be in
order for the City to get the best possible product and to produce
a smooth transition to the new system,
CONTINUED INVOLVEMENT OF CHAPEL CONSULTING
Jim Stern of Chapel Consulting was originally engaged by the City
in 1988 to aid the City in evaluating the computer system and the
City's needs. He has completed this process which has brought us
to this point. It is the belief of the Finance Director that his
continued involvement is needed to ensure the City receives and
recommends proposals meeting the City's needs. He estimates the
cost of helping write the RFP through the recommendation of a
system to be $6,500 to $9,000. The cost of negotiating a contract
and aid in implementation is dependent on the vendor selected and
could be negotiated with Mr. Stern once the vendor is picked.
STATUS OF AMERIDATA OFFER
Ameridata has made an offer to the City for it's DEC MicroVAX II
Computer. The offer was reviewed by Jim stern and the Finance
Director and does not appear to be real good. In addition, should
the City decide to purchase new hardware, it could more easily be
done through the software vendor. The Ameridata offer is enclosed
in this packet, You will notice that it expires soon. It is
recommended the Council authorize the city staff to contact
Ameridata and inform them of our decision to reject their offer
and request payment of the unused training costs be made to the
City.
As an alternative, staff can contact Ameridata requesting an
extension of the offer. In informal discussions with Ameridata,
they indicated a willingness to extend the offer for a limited
time.
SUMMARY AND REQUEST FOR COUNCIL ACTION
To summarize, the council needs to act on the following three
items:
1. Provide staff with direction relating to the options
available and, if appropriate, authorize the preparation
of a request for proposal.
o
2. Authorize staff to request from Chapel Consulting an
engagement letter outlining the services they will per-
form and the cost to the City.
3. Provide staff with direction relating to the Ameridata
offer,
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CITY OF ANDOVER
COMPUTER SYSTEM SITUATION ANALYSIS
Sentember 26, 1988
HISTORY
o System acquired 2/87 after selection by Council. Ameridata
selected to provide DEC hardware, all software and training.
o Software acquired was:
NMS utility billing, fund accounting, cash disbursements,
purchase order, and payroll software
20/20 spreadsheet software
Wordmarc word processing software
ASI office automation software
o Hardware acquired was:
Q1!.... Descrintion
1 DEC MicroVAX II minicomputer with 17MB Main Memory,
16 I/O Ports, 1 Console
195MB Tape Drive
271MB Hard Disk (Total of 142MB)
1 8PPM Laser Printer
1 400/100CPS NLQ Printer
10 Workstations
1 2400BPS Modem
o Total initial cost - $93,304 (Hardware - $60,104, NMS Software
- $22,250, Wordmarc Software $6,050, 20/20 Software-
$2,850, ASI Software - $2,050)
o System delivered - 8/87
o Training commenced - 8/87
o Began using word processing - 9/87
o Began using spread sheeting - 9/87
o Began installing utility billing - 9/87
o Ameridata dropped hardware maintenance - 9/87
o Ameridata stopped marketing NMS software and DEC hardware -
9/87
o
o City acquired hardware maintenance from DIS - 10/87
o Ameridata dropped support on word processing software - 10/87
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city acquired support on word processing from MARC Software
International - 11/87
City signed NMS software support agreement with Ameridata
1/88
o
0 city teamed with Shoreview (other NMS user) for additional
20/20 spreadsheet software training from DIS - 3/88
0 Ameridata dropped NMS software support - 3/88
0 city acquired NMS support from moonlighting Ameridata
employee - 7/88
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CURRENT STATUS
o city is experiencing major problems in using NMS utility
billing software. until ..recently, bills were not being
generated accurately or efficiently. These problems were
caused by poor training and installation assistance received
from Ameridata and by' a lack of ongoing support from
Ameridata. The city is just beginning to make effective use
of this software. .
o In the short term, some software support is being provided by
an Ameridata employee moonlighting from his llregularll job.
This support is of marginal value. The cost of this support
is minimal.
o The moonlighter is not a reliable source for long term
comprehensive support on the NMS software.
o The NMS fund accounting, cash disbursements, purchase order
and payroll software is not being used.
o The ASI office automation software is being used in a limited
way. This level of usage is appropriate.
o Both the word processing and spreadsheeting software are being
used and are adequately supported.
o The NMS documentation is weak. It is operator documentation
which is more appropriate for use as a reference manual by
someone who already knows how to run the system. It does not
include sufficient technical detail to allow the city to
support itself. It's processing descriptions are not complete
enough and it does not include enough technical detail to
allow the city to operate the system on an on-going basis
without outside support.
o The word processing and spreadsheeting software documentation
is adequate, given the availability of (outside software
support.
.,.../
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The hardware is performing in an acceptable fashion.
large enough and fast enough to meet the city's needs.
It is
o
Hardware maintenance is being provided by DIS.
is adequate.
This support
o city is 1 of 2 cities with this configuration (other is
Shoreview).
o The NMS software marketing rights were acquired 8/88 by a
vendor in Madison, Wisconsin. This firm may be in a position
to provide software support in the future. However, this is
not a certainty. Not-- 'irJe - iJ.c..oS-. fdJ- 'itruU()'"
Corporate Headquarters
10200 51st Avenue North
Minneapolis, MN 55442
612-557-2500
800-442-3006
(Minnesota toll-free)
800-328-3072
(National toll-free)
o
AmeriData
April 26, 1989
James Schrantz
City Hall
1685 Crosstown Blvd. N.W.
Andover, MN 55303
Dear Mr. Schrantz:
This letter is to confirm our conversation of Monday April 24, 1989.
AmeriData will provide the equipment listed below in exchange for the
outstanding support credit due the City and the proceeds of the current
equipment the City owns.
The equipment listed below has a sale value of $17,000. The credit
due the City for unused support is $3,000. If the sale of the MicroVax
equipment exceeds the remaining balance of $14,000, the City would retain
the balance, if the proceeds of the equipment sale does not equal or
exceed the $14,000 balance the remainder would be due to AmeriData prior
to delivery of the proposed equipment. The sale of the Microvax equipment
would take place between the City of Andover and the purchasing firm.
The equipment proposed will include on-site installation, on-site
warranty service, and telephone "hot-line" support for twelve months
beginning at the date of installation. AmeriData is available for service
and support Monday to Friday, 8 AM to 5 PM.
The following is a list of the equipment proposed:
Qty 1
IBM Model 80-71
Includes: 80386 micro processor, 71 mb hard disk, 2 mb memory, 4
serial ports, IBM 8503 monochrome monitor, VGA graphics
adapter, keyboard, Irwin Tape backup system and DOS 3.3.
Qty 1
Hewlett Packard LA2 laser printer
Logical Connection Print Sharing Device
Cables necessary to connect the printers and computers
(Cable installation is not included, the City is responsible for
cable installation and associated costs)
o
Qty 6
Hyundai Super l6TE
includes: 8086 micro processor, 30 mb hard disk, 640k memory,
serjpar ports, amber monitor, keyboard and DOS 3.3.
An equal opportunity employer
o
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Qty 6
Microsoft Works integrated software, includes text processing,
spreadsheet, and database capabilities.
Qty 1
Lotus 123 current version
Any training required by the City, will be at our published training
schedule rates. AmeriData's training center is located in our corporate
headquarters in Plymouth, MN.
Delivery and installation .could take .place within 30-60 days of
notification 'Qy the City..
This offer is available to the City of Andover for 60 days. If you
have any questions please call me at 557-2500.
sg::
Bruce Zimm
Sales Mana
...
cc: Jeff Swanson
James Stern
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CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
June 21, 1989
DATE
ITEM
NO.
"'.
1990 Budget and
Truth in Taxation
Howard Koolick
BY: Finance Di rector
APPROVED FOR
AGEND/~
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y.
BY: /
i/
AGENDA SECTION
NO.
ORIGINATING DEPARTMENT
Finance
REQUEST
The Andover City Council is asked to discuss the 1990 budget,
budget process and the effect of truth in taxation legislation.
BACKGROUND
As you are aware, the 1988 legislature passed truth in taxation
laws, which amongst other things, mandated the City begin its
budget process earlier than in past years, In theory, the law
was designed to give each taxpayer a preliminary estimate of
their tax bill and allow them to speak at scheduled budget
hearings.
The law was passed hurriedly in 1988 with the understanding that
it was not workable and would be amended in 1989, The major
problem for the City with the 1988 law was the need to certify a
levy by August 1, while not being notified by the state of our
levy limit or local government aid until August 2. Obviously,
this would not work,
The 1989 property tax reform bill amended these deadlines as well
as making some other changes, It also addressed the local
government aid formula and included a three percent limit on levy
increases. As you are aware, the Governor vetoed this bill.
You are probably asking yourself where does this leave us? Good
question. Nobody really knows. We do know that by law we are
still under the 1988 law which requires a levy be certified by
August 1. We also know that the Legislature should be holding a
special session in September to pass a tax bill which will include
local government aid allocations, The City is operating under the
recommendation of the League of Minnesota Cities, to continue to
comply with the 1988 law. I will be attending a League seminar on
June 26th, which will provide more information on how to comply.
COUNCIL ACTION
Q
MOTION BY
TO
SECOND BY
o
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Special Council Meeting
June 21, 1989
1990 Budget Discussion
To date, each department has received various budget planning
forms and has begun work and in most cases completed work on the
1990 general fund expenditures. The departments have also given
some input into revenue sources and estimates. As described
above, the two major sources will be unknown for some time,
The Mayor and City Administrator have indicated a desire to
exercise our option on the Laptuta property which expires in 1991,
Prior to getting to far into the budget process, are their other
items/services the City needs to include in the 1990 budget which
were not in the 1989 budget?
Based on the discussion above, the following is the projected
budget schedule.
June 27th - Completion of compilation of general fund
expenditure budgets and estimation of general
fund revenues(based on 3% levy increase and a
scaled down LGA estimate,)
June 30th - Completion of debt service fund budgets.
July 4th - Initial presentation of the budget to
City Council for discussion.
July 7th - Completion of enterprise fund(water and
sewer funds) budgets
July 18th - Council approves preliminary budget and tax
levy certification
o
CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
AGENDA SECTION
NO.
DATE
ORIGINATING DEPARTMENT
June 21, 1989
Finance
ITEM Assessment Policy
NO. Discussion
BY:
Howard Koolick
Finance Director
REQUEST
The Finance Director would like to discuss with City Council the
City's assessment policy and its effects on city finances,
BACKGROUND
The recent development contracts used by the city include wording
that requires the City to maintain the assessments internally
instead of certifying them to Anoka County for collection. The
assessments are to be paid by the developer twice a year. Thirty
days after the issuance of a certificate of occupancy, the
developer must pay all remaining assessments. In addition, in the
event of failure to make a semi-annual payment, the City has the
right to accelerate the assessment and collect or certify to the
County the unpaid balance plus interest.
Two aspects of this policy need to be addressed, First, because
of the City policy to have the developer pay interest only to the
date of payment, the City is not receiving as much interest on its
assessments as would be received if the County collected the
assessments, When the County collects the assessments, a
developer when prepaying as assessment only needs to pay the
principal balance, since the County has billed all of the current
year interest. Under the City policy, the developer only pays
interest to the date of payment, The following is a comparison of
these two systems.
Developer pays off assessment on February 1, 1990
City System
County Collection
Principal
Interest
Total
$7,108,65
44,91
$7,153.56
$7,108.65
528,78
$7,637.43
COUNCIL ACTION
MOTION BY
TO
SECOND BY
Developer pays off assessment on October 1, 1989
city System County Collection
0
Principal $7,108,65 $7,108.65
Interest 381,08 528,78
Total $7,489.73 $7,637,43
Developer pays off assessment on December 31, 1989
City System County Collection
Principal $7,108.65 $7,108.65
Interest 528.78 528.78
Total $7,637,43 $7,637.43
AS you can see, the City is losing assessment interest under this
policy. The amount lost depends on when the assessment is paid
off.
The second issue to be dealt with is the additional staff time
needed to send out the statements to the developers and to keep
track of payments. unfortunately, there is no estimate of how
long this is taking. However, the City Clerk informs me it takes
a large amount of her time, when she has time for assessments. I
am fairly confident that not all developers have received their
bills for 1989, although, I can not verify this at this time.
This research will begin this summer in time for a billing to meet
the September 15 payment date. (
At this time, this issue needs no action. However, the City
Council may wish to review the City's assessment policy at a later
date.
o
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CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
AGENDA SECTION
NO.
DATE June 21, 1989
ORIGINATING DEPARTMENT
Finance
FOR
ITEM Bonding Procedure and
NO. Use of Fi scal Consul tan
BY:
Howard Koolick
Finance Director
BY:
REQUEST
The Andover City Council is asked to consider the current process
used in bonding and discuss the use of a financial consultant.
BACKGROUND
The City currently expends City funds for improvements and
engineering costs incurred for a variety of projects. When a
large enough dollar amount of work is done or scheduled, the
City then issues bonds to finance these projects. This method
of bonding results in the City financing various projects with
money from other funds, The effects of these "short-term loans"
include decreasing the City's interest earnings, potentially
violating bond covenants, and increasing the likelihood that an
unfunded project is not discovered on a timely basis.
The City's interest earnings are decreased for two reasons.
First, there is less cash to invest since we are internally
funding construction. Second, the City is losing the interest
earned on the bond proceeds during construction. While this
second aspect is not very significant, the first has a major
impact. For example at December 31, 1988, the unfinanced
construction costs financed by the City were $ 612,612. Assuming
a 7% interest rate and an average unfinanced balance of $ 335,541,
the lost interest calculates to $ 23,488.
The City's bond agreements for permanent bonds include a paragraph
relating to the debt service funds and which resources are
irrevocably pledged to pay the debt, This means that is not
allowed to borrow debt service funds for any reason. There is
the possibility that debt service funds may be "borrowed" to pay
construction costs, until the bonds are issued. While it is not
likely that the City has violated these covenants yet, it will
become increasingly possible as the City issues more permanent
bonds,
COUNCIL ACTION
MOTION BY
TO
SECOND BY
o
The third potential problem relating to the bonding process became
very evident in the general fund this past year. The city
purchased at least $75,000 of equipment which it intended to fund
through the issuance of equipment certificates of indebtedness.
Through oversight or some other reason, the certificates were
never issued and the general fund financed the equipment. The
same could happen with improvement projects if a funding source is
not identified prior to beginning the project,
In order to bond for projects prior to or shortly after their
beginning, the City needs to know what projects will be ordered
during the summer construction season. To do this, the City must
be advised of developer and citizen plans during the winter and
spring. Should a developer request street improvements after this
period, and the predetermined deadline, the City would have to
determine if their are adequate funds in the City to pay for the
improvements out of the City's pockets, or to tell the developer
he will have to wait unitl next year.
The second issue to be discussed is the use of a financial
consultant. The services that these type organizations can
provide include the usually bonding functions such as preparation
of the official statement, applying for a credit rating etc.
In addition, these organizations monitor the City's debt in order
to identify and advise the City of opportunities for refundings
and defeasance as well as provide other special studies and
projects as requested by the City. There are several different
organizations that fit this category. The most well known are
Juran and Moody, Ehlers and Associates and springsted, I believe
involving this type of consultant in the growth of the City will
be beneficial to the City.
ACTION TO BE TAKEN
Should the City Council be interested in this ideas, the following
procedures are recommended:
1. Request Staff notify present developers of the need to
notify the City of their 1990 needs for street
improvements prior to a predetermined date.
2. Request Staff to publish in the City newsletter the
requirement to submit a petition for street paving prior
to the predetermined date,
2, Request the Finance Director to contact the above named
financial consultants and arrange a presentation
for City Council at Council's convenience,
o
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CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE
June 21, 1989
Finance
AGENDA SECTION
NO.
ORIGINATING DEPARTMENT
ITEM
NO.
Laptuta Property
and City Hall Build.
BY:
Howard Koolick
Finance Director
REQUEST
The Finance Director would like input from City Council relating
to the purchase of the Laptuta property and the Council's intent
relating to a new city hall.
BACKGROUND
The City Administrator has requested the inclusion of the
option on the Laptuta property in the 1990 budget. In
planning for the purchase, it would be beneficial to know
Council's intent relating to a new city hall and if there is the
potential to package the land and park improvements with the
funding for the city hall building.
MOTION BY
TO
COUNCIL ACTION
SECOND BY
o
CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
June 21, 1989
DATE
ITEM
NO.
.
Financial Institution
Discussion
BY:
Howard Koolick
Finance Director
R
AGENDA SECTION
NO.
ORIGINATING DEPARTMENT
Finance
REQUEST
The Finance Director would like to discuss with the Andover city
Council the current banking situation and a determine if the
Council has interest in changing to local bank, and if it
results in a loss of interest, how much interest is it worth?
BACKGROUND
The City currently does its daily savings and checking at First
National Anoka, Mr. Lon Helgamo, Senior Vice President of Firstar
st, Anthony Bank in Andover has approached the City about doing
business with his institution, The City currently pays no
fees at First National Anoka, while Firstar st. Anthony Bank's
accounts have fees attached. Under this system, the City receives
as interest, the interest earned less fees charged. Mr. Helgamo
is investigating the alternatives available to his institution
regarding waiving or restructuring fees or interest.
Banking with in the City has potential pros and cons.
For example, Firstar is more convenient to City Hall. Doing
business at Firstar will make more money available within the
City for local loans. Likewise, we have had no problems with
First National Anoka.
COUNCIL ACTION
MOTION BY
TO
SECOND BY
o
CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE
June 21, 1989
AGENDA SECTION
NO.
. ORIGINATING DEPARTMENT
Finance
ITEM
NO.
Administrative Trust
Fund Purpose and Use
BY:
Howard Koolick
Finance Director
REQUEST
The Andover City Council is asked to review the use and purpose of
the Administrative Trust Fund.
BACKGROUND
This fund is used to account for the one-percent administrative
fee the City adds to all assessments. The fund appears to have
been originally set up to protect these administrative fees from
being spent. Each year a portion of each assessment is
transfered to the general fund to cover administrative costs
relating to handling the assessments.
In reviewing the fund, several things should be noted. First,
there is no attempt to relate the transfer amount to the amount of
assessments outstanding. For example, if a specific assessment
roll has been paid off entirely, there still may be a part of
this administrative charge in the trust fund. However, the City
is not incurring any administrative costs. Second, the City has
never identified what costs are being incurred in relation to the
assessment. Therefore, the fund currently has a theoretical basis
for continuation, but possibly not a practical one.
There are several different options open to Council, One would be
to simply close all monies into the general fund and deposit the
one-percent of future assessments in the general fund. This runs
the risk of totally losing control of our costs, while it would
increase the general fund substantially,
A second alternative would be to have the City Staff analyze the
fund and the related assessments to determine the proper amount of
remaining administrative transfers to be made. This alternative
is more logical and easier for long-term planning, It's drawback
is that a portion of the money may be withheld from use for
several years,
COUNCIL ACTION
MOTION BY
TO
SECOND BY
o
CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
June 21, 1989
AGENDA SECTION
NO.
DATE
ORIGINATING DEPARTMENT
Finance
ITEM o.
NO. Authorized Banking
Personnel
Howard Koolick
BY: Finance Director
APP.~.~VUFOR
AGEI'fD;A
( .
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BY: /
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REQUEST
The Andover City Council is asked to clarify the City personnel
authorized to perform bank transactions in order to clarify the
City Council's intentions.
BACKGROUND
The Finance Director's job description includes the responsibility
for investment of City funds. In order to recieve the most
favorable rates, it is ocassionally necessary to wire transfer
funds between financial institutions. currently, First National
Anoka requires wire transfers be done only by an authorized check
signer. Other institutions so far have not required this.
The City Treasurer and myself are unclear as to Council's
intention relating to whether the Finance Director should be an
authorized check signer, and thereby authorized to transfer funds
between institutions.
This request should not be interpreted as a request for
authorization, but merely a request for clarification of City
council's desire,
c
MOTION BY
TO
COUNCIL ACTION
SECOND BY