HomeMy WebLinkAboutCC February18, 1986
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7:45 P.M.
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CITY of ANDOVER
REGULAR CITY COUNCIL MEETING - FEBRUARY 18, 1986 - AGENDA
1. Call to Order
2. Resident Forum
3. Agenda Approval
4. Discussion Items
a. Newsletter, Cont.
1. Community School Annual Report
b. Alexandra House Donation, Cont. (2/4 Sf)
c. Industrial Revenue Bond Update
d. Ordinance 32, Amendment, Cont.(2/4 6b)
e. Building Permits/Shirley's Estates
f. Alternative Investment Depositories
g. Cooperative Purchasing Venture/State of MN
h.
Recess
5. Assessment Hearing/Hanson Blvd./IP83-1
6. Non-Discussion Items
a. Petition for Improvements/Hidden Creek/IP86-4
b. Junkyard License Approvals
c. Feasibility Report/SE Sewer/Thrush to Zilla/86-
d.
7. Staff, Commission, Committee Items
a. Planning and Zoning
1. Jim Larsen Variance
2. Various Ordinance Amendments, Cont.
3. Temporary Signs, Cont. (2/4 7a4)
b. Fire Department
1. Mutual Aid/Blaine
2. DNR
3. Part time Fire Marshal
8. Approval of Claims
9. Approval of Minutes
10. Adjournment
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c:; WHAT'S HAPPENING!!!!
-February 17th is a holiday - City Hall will be
closed.
-February 18th Regular Council meeting - Public
hearing Hanson Boulevard/Andover to 161st
-February 25th - Tax Increment Financing - Boisclair
-February 27th - attorney, consulting Engineer and I
are going to be at City Hall and have invited the
property owners along Bunker Lake Boulevard.
-March 6th - 7:30 P.M. at Anoka 116 drainage
-Town Meeting - March 13 at City Hall
-March 18th is precinct caucus night. We will have to
reschedule regular Council meeting.
-Lori Gafkjen, a Blaine High School student, has joined
us for the afternoons. She started 2/5/86/Lori is a
senior in the OEA program.
.Lola has resigned effective March 14, 1986 to take a
part-time position in Anoka. She wants to spend more
time with her family - we sure hate to see her go.
Our loss is her kids' gain.
-Larry will have an add in the shopper for Lola's
position starting 2/19/86.
-The Utility Billing Clerk job closes 2/19/86 after
a one week publishing (See Larry's memo). The last
payments haven't been posted to the accounts. The
payments have been deposited.
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MEMORANDUM
TO:
COPIES TO:
FROM:
DATE:
REFERENCE:
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CITY of ANDOVER
Jim Schrantz
Larry P. Johnson
February 13, 1986
Timeframe for hiring the utility billing/account clerk
As the council directed. I am readvertising the Utility Billing/Account Clerk
position for one week. The ad is in the shopper of 2/12/86 with a deadline to
apply of 2/19/86.
Do we have authorization to proceed with interviews (if any additional interviews
are warranted) and hire someone as soon as possible or must we make another
recommendation to the city council? If we must go to the council again before
we are able to hire. we are looking at the March 4th meeting. Then someone would
probably have to give a two week notice to their present employer. That puts us
near the end of March before someone could actually start work.
Lola will be gone as of March 14th and then we will have two vacancies. Please
advise.
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MEMORANDUM
TO:
COPIES TO:
FROM:
DATE:
REFERENCE:
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CITY of ANDOVER
Mayor, City Council
Jim Schrantz, Larry Johnson, David Almgren
Lola L'"flqui,' /~~<'~1h~
February 12, 1986 L )
Letter of Resignation
This is to inform the above mentioned of the fact that I
will be resigning my position at Andover City Hall. My
last working day will be March 14, 1986,as it stands at
this time.
I will be taking a part-time position in Anoka, which will
allow me more time to spend with my family.
I have enjoyed working with the City of Andover and I feel
that I have learned many new skills in the 2J, years that I
have been with the City.
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CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
February 18. 1986
AGENDA SECTION
NO. Di scuss i on
DATE
ORIGINATING DEPARTMENT
Clerk-Treasurer
ITEM Newsl etter
NO. 4.a.
BY: Larry P . Johnson
B
The city council is requested to authorize a community newsletter to
be done jointly by the city and school. The council needs to determine:
1) How often to print it - monthly or every other month
2) What size page - 8! X 11 or 11 X 15
3) What to call it - Andover Advocate. Advisor. News. Messenger. Community News
Attached is 9 listing of price quotes from a variety of area printers. Both
sizes are quoted if the printer was able to handle both sizes. Some could not
handle the larger size on their press. The quotes are based on 3.000 copies.
typesetting and folding. Also attached are some suggested guidelines to follow
as to content and editorial policy as well as a division of responsibilities
between Melanie DeLuca and myself.
It should be noted that there will be some start up costs that are difficult
to get a firm handle on. such as masthead design. layout supplies, mailing
permit if unable to use the school mail. Once we have done an issue it will
be easier to get firmer prices from printers when we can see how much typesetting
is involved. how many photos we use. if colored paper would look better. etc.
MOTION BY
TO
COUNCIL ACTION
SECOND BY
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PRINTER
11 X 15 - 4 page
8! X 11 - 8
Blaine Printing
$758.00
$710.00
+ $15/photo
Speedy Copy & Sign
size not available
$416.00 printing
216,00 Est. typeset
$632~00 + $ 5,00/photo
$460.00
Presto Graphics
size not available
All-Brite Graphics
(Ramsey)
Anoka Co. Union
It is suggested that the newsletter contain:
- short council meeting highlights
column by mayor and/or council
- calendar of events/ meetings
- club & organization section
(Key Communicator. Athletic Assoc.
Senior Citizens)
- city and county related articles
- school related articles
- church articles of community wide interest
La rry
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Larry & Melanie
Melanie
Larry
Melanie
It is suggested that the newsletter not contain:
- verbatim council meeting minutes
- letters to the editor
- editorial s
- advertisements
- religious or political fund raising articles or ads
It is intended that the newsletter be a community service. Articles may be
submitted by community wide groups - typed and double spaced. Photos may also
be accepted. A firm deadline for material submission will need to be established.
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AGENDA SECTION
NO. Discussion
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CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
ORIGINATING DEPARTMENT
DATE Februarv 18. 1986
FOR
ITEM Community School/Annual
NO. Report
4.a.l
BY:
Vicki Volk
Melanie DeLuca will be bring the annual community
school report to you the night of the meeting and
at that time will go over the report with you.
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MOTION BY
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COUNCIL ACTION
SECOND BY
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CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE F'phrllriry 1 A 1 QAe:;
ITEM Alexandra House Donatio!
NO. ,j Cont.
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BY: Vicki Volk
APPROVED FOR
AGENDA
BY, C f)
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AGENDA SECTION
NO. Discussion
ORIGINATING DEPARTMENT
On June 25, 1985 at a Special Council meeting the
following motion was made:
MOTION by Orttel, seconded by Knight, the excess funds
from 1983 Community Development Block Grant monies be
divided as follows: up to $2,000 to the Alexandra House,
$2,000 for Building Rehabilitation for Andover residents
only, the balance to be spent on additional park equip-
ment in the 138th Avenue Park. Motion carried unanimously.
In checking the records, I ~annot find where this money
was ever given to the Alexandra House.
I also checked the 1984 minutes to see if the Council
gave them money that year, and find nothing.
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NOTE: On Feb. 12. 1986 I spoke with JoAnn Wri ght at Anoka County about
the above matter and was informed that since several CDBG cities
contribute to the Alexandra House. the county pools the money and
pays Alexandra House directly. None of the cities ever receive the
money and in turn have to write a check to Alexandra House. The above
allocation of $2,000 was pooled and is going to the Alexandra House.
They do not receive the money all at once. but periodically throughout
the year as needed for a special project. Any future contribution the
council may authorize would be for the period 7/1/86 to 6/30/87.
L. P. Johnson
. COUNCIL ACTION
SECOND BY
MOTION BY
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CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE ",phrlli'lry 1 R 1 QR"
AGENDA SECTION
NO. Discussion
ORIGINATING DEPARTMENT
Engineering
FOR
ITEM Ind. Revenue Bond Updat
NO. 4c BY: James E. Schrantz
The City Council requested an update on the Industrial
Revenue Bond for the Downtown Shopping Center complex.
Dave Kennedy will be sending a letter to Bill Hawkins
and the Council outlining the statute.
(Mr. Kennedy is not available on the 18th.)
JES:vv
COUNCIL ACTION
MOTION BY
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SECOND BY
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CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE
'F'j::)hrl1::l1ry
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AGENDA SECTION
NO.
Discussion
ORIGINATING DEPARTMENT
Engineering
FOR
ITEM Ord. 32 Amendment, Cont.
NO. 4d BY: James E. Schrantz
The City Council is requested to consider Section VIII
(B)(2) of Ordinance 32.
The existing ordinance has a formula for non-residential
users as follows:
REC = SAC x 100,000
73,000
Utility Billing to date hasn't made that adjustment but
have been billing based on SACs.
BACKGROUND
Blaine had a formula similar to the formula in Andover's
ordinance. In Blaine we developed the formula because the
average house used 73,000 gal/yr. SACs are based on a
usage of 100,000 gal./yr.
To equate the non-residential to the residential, the
proportion was used so everyone paid x$ per 73,000 gals.
Andover's residential use/REC in 1980 was 135,300 gal.
Since we have maintained the system, we have lowered the
flow per REC to 87,000 gal./year.
If I use the above, the formula would be
REC = SAC x 100,000
87,000
JES:vv
Attach: Sec. VIII B (2) Pg. 3, Ord. 32
COUNCIL ACTION
MOTION BY
TO
SECOND BY
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SECTION VII. TRUNK SANITARY
SEWER CONNECTION CHARGE
A-. ~cir: IOI~. vacant- a~ of- the t"ffe(tive dale 01 this
ordinance, there !)hallbe the following requirement:
Betorr a permit is i~ued allowing a connection 10 a
sewer line-or maii, in the CitX' there shall be paid"
Trunk- Sanitary_ Sewer: Connection Charge for each
S<,wer Availability Charge <SAC) unit charged 10 the
connection. The connection charge is for Hie con
struct,ion-, reconstruction-, repair. enlargement,
improvement or olhe';: obtainment and the mClin.
1enance. operation and use of the sanitary sewer
lines or mains-, lift or pvmpinQ slations. and other
s.ewerage treatment facililies Of the Ci1y, Such
charge sti<'lllbe in addition to any and all connection
or' ~rvice charges' which are required hereunder.
a': For: the purposes of, lhis section. the Cily Trunk
Sanitary Sewer Connection Charge Unit will be
computed as follows:
1. Single family houses. townhouses, and duplex
units !.hall each comprise one unit.
Condominiums and apartments shall each com.
prise one, unit.
3, Mobile homes' Shall each comprise one'unit.
A. OTher buildingsandSlructvres shall be assigned
one unit for eaChl00,00Q gallons of How annually.
which is estimated, they will discharge; and com.
mercial and ,indUSTrial structures shall be a~igned a
minimum of one unit.
THE FOLLOWING IS- A LIST OF STANDARD
CITY OF ANDOVER TRUNK SANHARY SEWER
CONNECTION. CHARGE UNITS FOR VARIOUS
COMMERCIAL. PUBLIC. AND, INSTITUTIONAL
FACILITIES.
TYPE OF FACILITY
Arena
Automobile Service Center:
Barber Shop
Boarding House
Bowling Alleys
Car Wash
Car Wash (self.service)
Churches
Cocktail Lounge
General Office Building
HospitalS
Laundromats
Motels and Hotels (assume 1
persons.room)
Nursing Home
Restaurant {drive. in)
Restaurant 12A hr. service)'
Restaurant (not 24 hr.
service)
Restaurant (with
cocktail lounge)
Retail Stores
Roomino Houses
Schools (Elementary)
SchOOls (Secondary)
Service Station
(oas pumping only)
Service Station
(with service center>
.5ervice Station
(with service center & car wash)
Swimming POOls
Theater
Theater (drive.in)
Warehouses
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C. The City Council shall~etermine which type of
facility and parameter shall apply lor each sewer
connection requested. The City trvnk sewer con.
nection charge tor a facility nol included in the abOve
lisl will be delermined by the City Cooncil. A request
lor a trunk. st"wer connection charge unit dt"ter.
miMlion should be made prior 10 the issuance of the
building permit,.
O. STruclures which conTain two or mort" facilities
shall be charged a combined amount eQual to the
lotal sewer connection charoe for each facility.
E. The City trunk sewer connection charge unit
Shall be a whole number, with fractional pot1ionS
resulting from calculations rounded to the nparpst
whole number.
F. The Irunk sewf'r connection charge shall bE'
$1,000.00 in 1976 and increased. $50.00' per year
there.alter.
SECTION: VIII. SEWER RENTAL CHARGES
A. All premises locafed within the corpor.ate limits
of the City servt'd by the City sewer system shall pay
.a sewer rental tl'e to the City Of $5.00 per month,
p",Yllblequarlerlyfor each s.ewer availability charge
(SAC) unit.
B.. Tt'le sewer rental'fee for ~siden1ial dwellings
wilh City waler in place shall be W!loed on the
following schedule:
(11 R{'sidenlial Use For ead, liVing' unit, the
sewer: use charge shall be S5.(10 per month payable
Quarterl y.
en Non,residential Charges for non.residential
sewer use Shall be based.. upon the' number. of
Residential Equivalent Connections CREe's)
computed for each building or structure receiving
municipal sewage service. Such computations are to
be done as tallows Building Sewer Avail.bility
Charge Unih (SAC units) X;' 100,000 9.1. per yr.
divided by 73.000 equals No. REC's'.
The charge per REC shall be \5.00 per month
payable quarterty. The City may require a non.
residential building user to provide a waler:- meter,
approved by the Building OHicial that wilt ac.
curately measure all waler supplied 10 The premises.
In February of each year, the meter readings' shall
be reviewed and 1 R EC assigned' to each 73,000
gallons of water consumed in the previOUS one year
period. If the number of REC's computed by
reference to water usage varies, from the REC's'
compuled by the above formula, the charges for thai
Cillendar year shall be delermjnCd by reference to
REC's computed by water uS-c3ge. The CiTy may
chilng{' The per monlh charg{'s and the figures used in
compvling the REC's by resolulion'.
Each non.residential user shall be charged a
minimum 01 1 REC. Any fraction thereof of. REC
shall be adjusted to the next highest one.hal1 REC.
C. The sewer rental charge shall be payable TO the
City Clerk. A penalty, of ten percent (10 percent)
shall be added to all bills not paid by the date aHixed
PARAMETER
CITY SANlTAR.Y SEWER
NECTION, CHARGE
100 seats
1service bays
5beds
3alleys
I stall
2'50 seats
2~ seaTs
1400 sq. fl. floor space
1 bed
2' machines
1 rooms
3 bedS
9 parking spaces
6seats
\1 seaTs
9seals
3000 SQ. ft. floor space
7 beds
10 students
15 students
17 swimmers
15 seats
55 parking spaces
1A employees
tor final payment.
D. In the event That a user tails 10 pay his sewer
renlal fee within a reasonable time as determined by
Ihe Cily, said lee shall be certified by the Clerk and
aSsessed against the property connected to the sewer
system and forwarded to The County Auditor for
collection.
SECTION IX. LICENSING
A. No person, firm or corporation shall engage, in
the business of allering, repairing. installing' or
constructing sanitary sewer connections within the
City withOut first obtainino a license to carryon such
occupation from the City.
(1) Applicant shall file with the City Clerk policies
of publi<. liability and property damage insurance
which shall remain in force and eHect during the
entire term of said license and which "Shall conlain a
provision that lhey shall not be cancelled wiThout ten
(10) days wrill(>n notice to the City. Public liability
insurance !.hall not be les!. than one hundred
lhou~nd U 100,0(0) dollars for injuries including
aCCidE'ntal death 10 ollny one (1) per!.on and subject to
the same Iimi1 tor ea::h person in an amount Of n~t
less Ihan three hundred thousand nJoo.OOO) dollars
on account ol anyone (1) accidenl and property
Page 3
CON.
UNITS
1
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1
30
3
1
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1
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age insurance in 1he amount ol not less than fifty
thousand (UO.OOOI dollars tor each accident and nof
le!'s lhan one hundred thOusand IS100.000) dollars
aggregated'. No work !.hall be done under 1his license
until said insurance policies nave been filed and
approved by the City.
(2) The.applicolln1 shall file, with the City Clerk for
surety bond' guaranteeing the conlormance and
compliance of work with this Ordinance. ~id bond
shall be in the amount of two thous.and (S2,000)
dollars. The City shatlholdsaidbond for one.ll) year
following lhe, license periOd. Failure to comply with
provisions and r:equirementsof this O'dinance shall
result in forfeiTure of' the bOnd.
(3) Application for It<eoses !.hall be filed wilh II'le
City Clerk and shall be reviewed and subject to the
approval of The City;
(4) Any installation, construcTIon, alleralion Of a
sanitary sewer. connection by a licensee in violation
of any provision of this Ordinance or refus.al on the
part of a, licensee 10 correct such detectIve wo~k shalL
be cause for revocation of or refu~l to renew a
license. Said license may be reVOked or refused for
renewal by the City aT any time for cause whiCh shall
be.dCXumenT(>(l.' in wriTing
B. No pel'son, firm or corporc'lTion, dl'signatf.'(j as
s{'wage pumpe.rs, shall disChM9E' sludge into The
dE:"sigflated di!'charge IO(a1;on wiThin th(' CiTy wiThouT
firsl Obtaining a license TO (';arry on SUCh occupation
from the Gty.
(1~ ApplicanT shall' file with the City Clerk policies
of publi<=: liability and property damage insurance
whi<=:h shall remain in force and eHecT during the
entire 1e.rm of said license and which shall contain a
provision, that they shall not be cancelled withou1 ten
(0) days written notice to the City. Public liability
insurance shall not be less than filly Ihousand
($50,000) dollars tor injuries including accidental
death to anyone (1) person and subiect 10 the same
limit for each person in an amount Of not less than
one hundred t,hOusand ($100,0001 dollars on account
of anyone (1) accident and property damage in.
surance in the -amount of not less than .1en thousand
(S10.0001 dollars for each accident and not less 1han
twenty thOusand (S10.OOO) dollar!. aggregated. No
work shall be,done under license unTil said insurance
policies have been filed and approved by the City.
(2) The applicant shall file with the City Clerk for
surety bond guaranteeing the conformance and
compliance of work wilh this Ordinance. Said bond
shall be in the amount ot lWO thousand (S2.000)
dollars. The City shall hold said bond for one (1) year
following the ncense period. Failt,re to comply with
provisions and requirements nf this Ordinance shall
resull in forfeiture of. The bond.
{Jl Application for Ii<=:enses shall be filed with the
City Clerk and shall be reviewed and'subject 10 the
approval of the City.
C. All licenses required in this section shall be
renewed annually. The annual license fee shall be
twenty.five ($25Jx;J) dollars. Applications for wch
license shall be made annually on a form furni~hed
by the City Clerk. Licenses shall be in effect trom
July' of one year to June 30 of the next year.
D. Before any license issued under I'he provisions
of t~iS section may be revoked or its renewal refused,
the licensee shall be given a hearing by the City
Council to show cause why 'such licens'e shOuld not be
revoked or refused. Notice of the time, place and
purpose of, SUCh hearing shall be in writing.
SECTION X- POWERS AND
AUTHORITY OF INSPECTORS
The Building. Official and other duly authorized
employees Of. the City, upon proper identification.
shall be permitted to enter upon all propertit>Sfor the
purpose of inspec1ions. ob"Servation, measurement,
sampling and' tes1i~ !n accordance with the
provisions of this ordinance.
SeCTION XI- PENALITES
A. .Any person t~und to be violaTing any provision
of this, ordinance shall be served by the,Building
Official wilhwritten notice staTing the nature Of the
violation and, providing a reasonable time limit tor
the satisfactory correction thereof. The Of tender
shall wilhin the period of time slollted in such notice,
permanently cease all violations.
8. Any person who shall continue any violation
beyond the time provided for in the written notice
shall be Quilty of a misdeameolloor. and upon con.
victior. thereof shall bE' subject to a tine of not more
than \300. ,or. imprisonment tor not more than 90
dayS, or bofh, for each viola1ion. Each day in which
any !oUCh violation shall 'continue shall be deemed a
separate offens~.
C. Any person violating any of the provisions Of
this Ordinance shall become liable to the City for any
expenu', loss or damage occasioneod the City by
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CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE F~hY"11~""'Y 1 sa, lQ~~
BY:
AGENDA SECTION
NO. Discussion
ORIGINATING DEPARTMENT
Engineering
ITEM Building PermitsjShirle 's
NO. 4e Estates
BY: Jam
The City Council is requested
permits for Shirley's Estates
the developer.
to lift the hold on building
as requested by Mrs. Sonsteby,
Mrs. Sonsteby did haul in additional material and pushed it
out across the low area to the LakeRidge around the lake as
proposed in her plan.
We installed the curb cut at the access as was requested of
the developer.
The grading wasn't satisfactory to the Park Board but we have
improved the grading and installed the playground equipment
including a backstop.
The reason we proceeded with the development of the park was
that by not doing it we were penalizing the wrong people so
the Park Board reluctantly agreed that the Public Works
Department should make the park usable.
Many people cross one of the lots and cross ~he park to go
across the south end of the lake or to go back in the open area
and dump junk, brush, etc. This damages the park because of
the sandy nature of the soil.
Mrs. Sonsteby, I believe, is selling or has sold the lots to
Ziegler Construction, the contractor who developed Rosella's
Addition.
The last time Merle Prochniak and I looked at the park, we
had agreed that park should be accepted and in the future make
sure the development contract included adequate escrow funds
for the grading, topsoiling, and seeding work the developer
provides.
COUNCIL ACTION
MOTION BY
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SECOND BY
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Shirley's Estates
Page 2
We had assessed the plat for the entrance construction but
after Mrs. Sonsteby appealed we cancelled the assessments for
the access correction.
The quality of workmanship was far below my expectations.
The work the developer agreed to do during the platting process
was not to my expectations.
JES:vv
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CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE
February 18. 1986
Cl erk- Treasurer
AGENDA SECTION
NO. Discussion
ORIGINATING DEPARTMENT
ITEM Alternative Inv. Depositorie
NO. 4.f. BY: Larry P. Johnson
The City Council is requested to approve the attached resolution designating
supplemental depositories for investment purposes only.
We currently have about $8.3 million invested. entirely in certificates of
deposit. Our highest interest rate is currently 7.65%. Coon Rapids. our
neighbor to the south. currently has about $19.5 million invested and none
of their money is in certificates of deposit at the present time. None of
their current investments are earning as little as 7.65%. Some are earning
over 10%. Even a fraction of a percentage point makes quite a difference in
net annual earni ngs when you have this much to work wi th.
The attached resolution was patterned after Coon Rapid's resolution, but leaves
out the out of state financial institutions. We don't have the staff time
available to devote that much research every time we have an investment to make;
but I am sure we can do quite a bit better than we are at present.
It is not likely that all of the financial institutions listed in the resolution
will be used; but it gives us the flexibility to take advantage of the best rates
avail ab 1 e and as a member of the Mi nnesota Government Finance Offi cers Assoc. I'm
sure my colleagues from other cities will be will ing to share information as to
what is paying the best at any given time.
Also attached is a League of Minnesota Cities commentary on municipal investing
and a copy of the Coon Rapids Investment Policy for your consideration.
COUNCIL ACTION
MOTION BY
TO
SECOND BY
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CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
NO.
A RESOLUTION DESIGNATING SUPPLEMENTAL DEPOSITORIES OF CITY FUNDS FOR INVESTMENT
PURPOSES ONLY
WHEREAS. Minnesota Statutes Sec. 118 sets forth the procedures for the
deposit of public funds and it is necessary for the Andover City Council to
annually designate a bank as the official depository for City funds and manage
the collateral pledged to such funds; and
WHEREAS. the First National Bank of Anoka has previously been designated
as the City's official depository for 1986; and
WHEREAS, other financial institutions are, from time to time, able to pay
the City of Andover interest rates on deposits which are greater than can be
obtained by other investments;
NOW. THEREFORE. BE IT RESOLVED by the City Council of the City of Andover
that the First Bank St. Paul. First Bank Minneapolis. Norwest Bank St. Paul.
American National Bank of St. Paul. National City Bank of Minneapolis. Norwest
Bank Minneapolis. the Fidelity Bank and Trust Company. F & M Marquette National
Bank of Minneapolis. First Federal Savings and Loan. Midwest Federal Savings and
Loan. Twin City Federal Savings and Loan, Minnesota Federal Savings and Loan,
Central Norwest Bank North, First Bank of Northtown, Bank of America NT & SA.
Morgan Stanley. Merrill Lynch. Dain Bosworth Inc.. Dean Wittier Reynolds Inc..
Piper Jaffray & Hopwood Inc.. Kidder Peabody & Co. be designated as additional
depositories for 1986 for investment purposes only; and
BE IT FURTHER RESOLVED that the Treasurer of the City of Andover is hereby
designated as the approval authority for the acceptance and release of all
collateral to be held by the City in conjunction with City funds on deposit with
authorized institutions.
Adopted by the City Council of the City of Andover this _____ day of
, 1986.
CITY OF ANDOVER
Jerry Windschitl - Mayor
ATTEST:
Larry P. Johnson - City Clerk
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legal authority
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Minnesota Statutes, Section 471.56 authorizes
any city to invest any fund not presently needed in
obligations in which city debt service funds may be
invested. This law applies to all types of funds not
presently needed, including all general, special,
permanent, trust, or other funds regardless of
source or purpose. Under this statute together with
the law on the investment of debt service funds
(M.s. 475.66) and another law relating to deposits
in financial institutions (M.S. 118.005, 118.01), a
city may invest idle funds in certain specified
obligations and it may make interest.bearing
deposits of such funds in state or national banks,
savings fnd loan associations, or (possibly) credit
unions. (Technically, the state auditor does not
consider interest-bearing deposits as investments;
however, since they do produce an added income,
they are not distinguished in this memo from
authorized investments of idle funds.)
Permissible investments and interest-earning
deposits, discussed more fully in the next section,
may be outlined as follows:
1. Direct US. government obligations
a. Treasury bills
b. Certificates of indebtedness
c. Treasury notes
d. Treasury bonds
2. Federal agency issues (not directly guaran-
teed by U.S. government)
a. Federal Home Loan Banks
b. Federal National Mortgage Association
c. Federal land Banks
d. Federal Intermediate Credit Banks
e. Banks for Cooperatives
3. Shares in mutual funds investing exclusive-
ly in U.s. government and agency issues.
4. Obligations of State of Minnesota or
Minnesota municipalities.
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5. Bankers' acceptances of United States
banks eligible for purchase by the Federal
Reserve System.
6. Highest quality commercial paper issued by
United States corporations on their Cana-
dian subsidiaries when the paper matures in
270 days or less.
7. Interest-bearing deposits.
The law on the investment of debt service funds
provides that time deposits shall be withdrawable
and certificates of deposits and investments shall
mature and bear interest payable at times and in
amounts which, in the judgment of the government
body (or its treasurer or other officer or committee
to which it has designated investment decisions)
will provide cash at the times and in the amounts
required for the purposes of the debt service fund.
(M.S. 475.66, Subd. 1.) Since other idle funds may
be invested in any obligations in which debt service
funds may be invested, this limitation presumably
also applies to investment of such idle funds as
well. There is one exception, however: the govern-
ing body may authorize the purchase of longer
term investments subject to an agreement to
repurchase such investments at times and prices
sufficient to yield the amounts estimated to be so
required. A repurchase agreement may be made
with a bank qualified as a depository of debt
service fund money, or with any national or state
bank in the United States which is a member of the
Federal Reserve System and whose combined
capital and surplus equals or exceeds $10,000,000,
or with a reporting dealer to the Federal Reserve
Bank of New York. (M.s. 475.66.)
A municipality is also authorized to enter into
a reverse repurchase agreement with any institution
with which it is authorized to make a repurchase
agreement. A reverse repurchase agreement obli-
gates the municipality to repurchase at a fixed
future date and price a security sold by it to a
financial institution. Such an agreement is not
included as part of the city's net debt, may be
made without an election or public sale, and the
1 By Laws 1978, Ch. 747, various statutes were amended to authorize credit unions to accept deposits of
public funds and provide for deposits of public funds in thrift institutions. No express authority is granted
by MS. 118.005 to designate a credit union as a depository of public funds unless it is a "thrift institution."
The quoted term is defined by M.S. 51 A.02, Subd. 23 to include "an association, a mutual savings bank, a
cooperative bank, a homestead association, a federal savings association, a federal savings and loan associa-
tion, and a supervised thrift and residential financing institution of a substantially similar nature." It is not
clear that a credit union is a thrift institution as so defined, though it seems to have been the intent of the
1978 amendments as given in the title of the law to make,credit unions eligible as depositories.
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interest payable is not subject to the statutory
limit (M.s. 475.55) on bond interest rates. Certain
time limitations on such agreements are stated in
the law: (1) a period of 30 consecutive days; (2) a
period which, with the aggregate period of all
agreements made within the preceding 12 months
with respect to one security or two or more
identical securities, exceeds 90 days, whether or
not the period from the first sale to the last repur-
chase exceeds 12 months. An agreement for
a longer term is valid but its execution constitutes
misconduct by the responsible officer, subject to
the penalty provided in M.s. 609.43. (M.S. 475.51,
Subd. 12.)
The law contains detailed procedures for enter.
ing into reverse repurchase agreements. M.S.
475.76.)
Any investments may be sold by the council at
any time, but if the investment is made from a
debt service fund or another fund dedicated to a
particular purpose, the money received from the
sale must remain a part of the fund until used for
the purpose for which the fund was created. (See
M.s. 475.66.)
When a city invests currently unneeded proceeds
of a bond issue of the city, it must keep in mind
federal rules on what are known as "arbitrage
bonds." To oversimplify a complex set of regula-
tions, it may be said that the rules set no limits on
the interest the city may earn on such investments
during the first three years after issuance of the
bonds, though the city is generally required within
that time to spend at least 85 percent of the
proceeds on the authorized bond purposes. After
that time, however, when the city invests any
unneeded portion of the bond issue proceeds, it
may invest only in obligations which do not yield
substantially more than the interest rate on its
bonds. Determination of whether bonds are
arbitrage bonds, and therefore not tax-exempt, is
made on the basis of reasonable expectation at the
time of issuance. Violation of the interest rules
later will not change the tax-exempt status of the
bonds but can result in "blacklisting" future issues.
Types of authorized investments
1. Direct U.S. government obligations
Obligations of the United States government
provide one of the greatest sources of earnings for
all sizes of cities. They are backed by the full
faith and resources of the u.s. government and are
approved investments under all circumstances.
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They reflect the current level of interest rates.
They are issued in anyone of several forms,
including treasury bills, treasury notes, certificates
of indebtedness, and bonds.
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Maturities vary from the short-term bills to
long-term bonds of 20 and 30 years or more.
Some issues are callable by the government before
maturity; others are not. Some are offered on the
open market for cash; others are available by
exchange of an issue already held. Some have
coupons attached; other do not. The varieties and
types are so numerous that proper advice from a
qualified bank or broker is necessary before
entering the market.
Treasury bills. Bills are regularly offered by
the Treasury Department each week with 90-c.'y
and 182-day maturity dates. Monthly bills ar.::
offered with a maturity of one year. Through
secondary market operations there is also provided
a choice of weekly maturities up to six months.
Treasury bills are offered on a discount basis
only; the return on the investment is the difference
between their purchase price and their face value.
Bills are offered at a competitive auction each
Monday for payment every Thursday except that
non-competitive tenders for $200,000 or less for
each type of bill are accepted in full at the average
price of accepted competitive sealed bids.
Treasury bills may be purchased through dealer
banks and bond brokers and sold to them if the
bills are to be disposed of before maturity. Nor-
mally dealer banks and bond brokers make a small
service charge when they buy or sell bills for their
depositors. Bills may be purchased directly from
the Federal Reserve Bank of Minneapolis, in which
case there is no service charge. City officials may
obtain notice of weekly treasury bill offerings and
bid forms by writing to the Federal Reserve Bank.
U.S. Treasury certificates. These certificates
are coupon issues of the Treasury Department
maturing no more than one year after issue. They
are not always available. When they are, it is
in denominations of $1,000 or more and are
payable to the bearer only. They usually carry two
coupons, clipped semi-annually. While not quite as
liquid as treasury bills, certificates can, under
almost any circumstances, be quickly and easily
liquidated when the holder requires cash.
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Treasury notes. Treasury notes are issued with
a maturity of more than one year but not more
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than five years. Because of the longer maturities,
interest rates tend to be larger than on bills and
certificates. They are available in denominations of
$1 ,000 and up, are payable to bearer and may be
registered as to ownership. They carry coupons,
one redeemable every six months. Treasury notes
are of primary interest when cash requirements fit
the particular maturities. U.S. Treasury bonds are
a more common purchase.
Treasury bonds. Bonds are invariably issued
for five years or longer in denominations of $500
to $1,000,000, although some are available in
smaller denominations. They may be registered as
to ownership and they are available in bearer form.
Bonds carry semi-annual interest coupons. Some
treasury bonds are callable by the government
before maturity; others have fixed maturities. By
market convention, the yield on a callable bond is
computed to the earliest call date when its price is
above par and to maturity when its price is at par
or below.
Because of the longer maturities of notes and
bonds, it is not always possible to manipulate notes
and bonds to make a spot profit whenever desired.
They are, however, just as safe as any other U.s.
security when held to maturity. They are parti-
cularly suitable for investment of debt service
funds or any other funds where the principal is not
needed for a substantial period of time.
As the date 'of maturity approaches on treasury
certificates, notes and bonds, they gradually
become available on the market to the short-term
investor as investment possibilities. Furthermore,
there is a good market for these obligations, so
they may be disposed of through bankers or
securities dealers at any time for a small fee;
however, if they are sold close to maturity, it is
possible that they may be sold only at a loss,
sometimes even a fairly substantial one.
Among the authorized investments (not includ-
ing interest-bearing deposits), United States govern-
ment obligations are probably the most popular in
Minnesota municipal practice.
2. Federal agency issues
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Federal agency issues described below are, in
contrast to U.s. Treasury obligations, not guaran-
teed by the U.S. government; however, agency
obligations generally produce somewhat higher
yields and previous experiences of the agency may
satisfy the investor of their soundness. Some types
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do provide some kind of guarantee. They may be
purchased by cities at the time of guarantee. They
may be purchased by cities at the time they are
originally offered but are usually available later
through banks or securities dealers.
Federal Home Loan Bank notes. The Federal
Home Loan Bank system includes 11 Federal
Home Loan Banks and their member institutions.
The banks are instrumentalities of the United
States and are under the supervision of the Home
Loan Bank Board. They were established to act at
a credit reserve system to meet both short-term
and long-term needs of approved mortgage-lending
institutions eligible under the provision of the
Federal Home Loan Bank Act. Any savings and
loan association, building and loan association,
cooperative bank, homestead association, insurance
company or savings bank is eligible to become a
member of the Federal Home Loan Bank if it
meets the eligibility requirements.
Each Home Loan Bank may make secured and
unsecured loans to member institutions subject to
the laws and regulations governing it. As additional
security for loans to any member, a bank has a
statutory lien on the member's stock, and advances
of more than one year's maturity to members must
be secured by home mortgages or direct-guaranteed
obligations of the federal government or both.
The 11 banks are supervised by the Home Loan
Bank Board, and are subject to yearly examina-
tions and audits by the General Accounting Office,
which is under congressional control. The obliga-
tions may be accepted as security for all fiduciary
trusts and public funds under the authority or
control of the United States. They are lawful
investments -for savings banks, insurance com-
. panies, trustees and other fiduciaries under the
laws of many states as well as for idle city funds in
Minnesota.
Federal National Mortgage Association deben-
tures. The Federal National Mortgage Association
(FNMA) was incorporated under the National
Housing Act of 1938. The Charter Act gives
FNMA the power to conduct secondary market
operations in home mortgages, to perform special
assistance functions in the purchase of mortgages
authorized by the President and Congress where
established home financing facilities are inade-
quate, and to manage and liquidate existing mort-
gage portfolios as of October 31, 1954.
The secondary market operations provide
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supplementary assistance to the secondary market
in guaranteed and insured home mortgages by
providing a degree a liquidity for mortgage invest-
ments both through purchase and sale. The second-
ary market operation is completely separate from
the other function which FNMA performs. Under
the law, the secondary market operation must be
self-supporting, and these operations have been
very successful.
The debentures are lawful investments for all
fiduciary trusts and public funds under the control
of the United States. National banks may buy
them without regard for statutory limits generally
applicable to securities. They are eligible as col-
lateral for Treasury tax and loan accounts. Pay-
ment of all certificates, both interest and principal,
is guaranteed by FNMA, which may issue to
the U.S. Treasury its general obligations in an
amount outstanding at anyone time, sufficient
funds to enable FNMA to carry out its manage-
ment and liquidating functions. The U.s. Treasury
is authorized to purchase any of FNMA's obliga-
tions.
The association has made available for munici-
palities as well as the public three types of securi-
ties: debentures and short-term notes issued
under the secondary market operations, and
participation certificates issued by the FNMA as
trustee for the Government Mortgage Liquidation
Trust.
Federal Land ,Ban~ notes and bonds. Twelve
Federal Land .Banks~,were organized under the
Federal Farm Loan Act of 1916, principally to
provide long-term farm mortgage loans at reason-
able rates. Each loan is based on an appraisal, plus
the amount that is .Ioaned for the applicant to
purchase required stock in the local federal land
bank association." ~
The banks are incorporated under federal law
and operate under the general supervision of the
Farm Credit Administration and the Secretary of
Agriculture. Each bank is examined at least once a
year by the Farm Credit Examiners. The bonds are
lawful investments for all fiduciary and trust funds
under the jurisdiction of the U.S. government.
They . are eligible as security for government
deposits.
Equal collateral security for consolidated
bonds in the form of notes secured by mortgage
purchase money mortgages, or government-secured
obligations must be furnished for all bonds issued.
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Federal Intermediate Credit Bank debentures.
The Federal Intermediate Credit Bank debentures
range in maturity from one to nine months, are
printed every month and in this regard may be
compared with Treasury bills. Although FICB
debentures naturally are not as marketable as
Treasury bills, municipalities with short-term funds
to invest may use them in the same way. Usually
there is a higher yield on the FICB debtentures due
to the fact that their market is not as close as on
Treasury bills or certificates.
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There are 12 Federal Intermediate Credit Banks
created under the Federal Farm Loan Act of 1923.
These regional banks provide funds for the seasonal
production, processing, and marketing of crops and
livestock by extending credit to financing inst'tu-
tions and farmer's cooperative associations. Th~y
make loans to and discount agricultural and
livestock paper for various types of financing
institutions. The banks are under the supervision of
the Farm Credit Association which is under the
direction of the Secretary of Agriculture.
Banks and securities dealers .are authorized to
issue and sell consolidated trust debentures and
similar issues. The law requires that the debentures
be secured by at least an equal face amount of
notes or similar obligations discounted or pur-
chased or representing loans made in accordance
with the Act of 1923, U.s. Government Bonds,
Federal Farm Mortgage Corporation bonds or cash.
Banks for cooperatives. Debentures of banks for
cooperatives are issued for a maximumsix-month
period. There are fewer of these issues than of the
other agency issues mentioned here.
3... Shares in investment companies whose only
investments are U.S. government and
agency issues
Investment may be made in shares of an invest-
ment company registered. under the Securities
Act of 1933, whose shares are registered under the
Securities Act of 1940 (mutual funds) if the only
investments of the company are in obligations of
the United States, in obligations fully guaranteed
by the United States gOVernment, or in obligations
. of instrumentalities of the United States govern-
ment such as those listed in the law and described
in the previous section. (M.S. 475.66.)
Such investments in mutual funds may require
payment of company service or other charges
which may be larger than in making purchases of
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individual U.S. securities, and the yield maybe less
than on judicious Individual purchases. On the
other hand, when the city has amounts to invest
which are too small for direct purchase of parti-
cular kinds of United States securities, it may,
nevertheless, acquire a share interest in such
securities through the mutual fund device. Further-
more, itwill not be tied to the maturity schedule
of particular securities (though it will be subject to
the rules of the company with respect to the sale
of the city's shares), and such investments may
save city staff time as compared to the alternative
of making city purchases of individual issues of
United States securities.Through the use of mutual
funds, cities may sometimes be able to invest funds
for only a few days, a period too brief to make
most other investments or time deposits practical.
Some mutual funds will. work with the city only
under formal agreements, with the city setting out
the terms on which they will do business, such as
minimum amounts they will handle, and some-
times these agreements will stipulate that there will
be no service charge.
Before investing in a mutual fund, it may be
wise to compare with a bank's money market
savings account as to prospective yield, service
charges, minimum balance requirements, check-
writing privileges and limitations, etc. See section 5
for a brief discussion of the relative advantages and
disadvantages of money market mutual funds
versus bank's money market deposit accounts.
4. Obligations of State of Minnesota or
Minnesota municipalities
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While the law permits the investment of idle
city funds in the obligations of the State of Minne-
sota or any of its counties, cities, towns, or school
districts (M.S.475.66), cities rarely invest in these
obligations because other authorized investments
can provide a better yield. State and municipal
obligations usually carry a lower interest rate
because income from them is exempt from income
taxes; however, the tax-exempt privilege is of no
value to cities since their income from any source
is tax exempt. There are times, however, when,
due to the heavy supply of municipal bonds or
other market factors, sound municipals may be
obtainable at yields comparable to, or better than,
those for similar maturities to United States
government obligations.
Occasionally, a city council may invest idle
funds in some of the city's own obligations for
special reasons. It is not unusual, for example, for
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a city to invest its own funds in temporary im-
provement bonds authorized under the local
improvement code (M.s. 429.091, Subd. 3). These
obligations must mature within not more than
three years and are payable from the proceeds of
definitive improvement bonds. (M.S. 429.091,
Subd. 6.) They may be purchased only from funds
which the council determines will not be required
for other purposes before the maturity date, and
may be resold before maturity only in case of
emergency. If purchased from a debt service fund
securing other bonds, the holders of those bonds
may enforce the city's obligations on the tem-
porary improvement bonds in the same way as if
they held the temporary improvement bonds.
There is no statutory restriction against the prac-
tice of investingfunds in the city's own obligations
and the attorney general has sanctioned the prac-
tice (A.G. Op. 59a-22, LMC 215G, April 2, 1969;
A.G. Op. 59-A-22, LMC 215g, Oct. 3, 1946),
though the Minnesota Supreme Court many years
ago frowned on the investment by the city in its
own bonds at the time they were originally issued.
(Kelly v. City of Minneapolis, 63 Minn. 125, 165
N.W. 115, 1895.) There is clear statutory auth-
ority for investing in the city's own temporary
improvement bonds even without offering them on
the market initially.
The city may be in the same position in buying
its own obligations as in buying the bonds of
an.other city: it is likely to be getting less interest
on its investment than if it put its idle funds
elsewhere. In any event, a city may not invest 'in
its own orders or warrants having no fixed maturi-
ty, since these are not "obligations" as that term is
used in the law authoriZing investment of city debt
service funds.
5. Bankers' Acceptances
Since August 1 , 1983 cities have been permitted
to invest idle funds in bankers' acceptances of
United States banks eligible for purchase by the
Federal Reserve System. These instruments
typically are created from a letter of credit issued
in a foreign trade transaction. For example, a U.S.
company purchasing goods from abroad will ask its
bank to issue a letter of credit for it in favor of
the seller. ., This letter wilfallow the seller to
draw a draft upon the importer's bank here for
payment of the goods. Whim the supplier receives
this letter and draft, he will ship the goods and
present the draft at its bank for discounting, thus
permitting him to receive immediate paymentfor
the shipment. His bank then forwards the draft to
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its U.S. correspondent. The draft is then stamped
"accepted" and becomes a bankers' acceptance and
obligates the U.s. bank to pay it at maturity. That
bank may buy the acceptance, thus earning the
difference between the discounted purchase price
and the face amount. It may instead sell the
acceptance to a third party, in wh ich case the
acceptance is secured by the bank, the goods, and
the importer, and becomes a money market
instrument.
Initial maturities of bankers' acceptances run
from 30 to 180 days; the short-term 90-day
acceptance is the market standard.
Historically, governmental and other nonbank
investors have not participated in the acceptance
market. This is now changing, in part because of
the remarkable growth in acceptance financing.
Now 30 American brokerage houses are recognized
acceptance dealers. The top ten acceptance
bankers accounted for half or. all outstanding
American acceptance paper in 1981.
Some acceptances are "prime". Such accep-
tances are those with shorter maturities that are
eligible for discounting with the Federal Reserve
system. The term also means that the bankers'
acceptance was not used,to finance inventories but
will be paid at maturity from the proceeds of the
sale of goods.
It has been reported that in 67 years of use in
this country, bankers' acceptances have experi-
enced no known loss of principal to investors.
There have been instances of counterfeit and
fraudulent acceptances, however. It is not likely
that this kind of investment will be attractive to
smaller cities without personnel having investment
expertise. Cities interested in acceptances as a
vehicle for investment of idle funds are advised to-'
seek prime money center bankers' acceptances to
ensure quality and secondary marketability, unless
a lesser-known local bankers' acceptance offers a
yield premium.
6. Commercial Paper
By.the same 1983 amendment (Laws 1983,Ch.
,54).to the basic municipal investment statute, any
. city is authorized to invest in commercial paper
issued by United States corporations or their
Canadian subsidiaries if it is of the highest quality
and matures in 270 or fewer days. .
Commercial paper is a short-term unsecured
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promissory note issued for a maturity specified by
the purchaser. Yields generally reflect differences
in maturity and risk. Most paper is sold on a
discount basis, but some issuers now offer interest-
bearing notes. Except in the case of the largest
corporations, issues are marketed through dealers,
who market the paper to investors. Presently
about 900 corporations issue commercial paper.
Commercial Is rated by Moody's Investors Services
Inc., Standard & Poor's Corporation, and the
Fitch Investors Service, Inc. Only commercial
paper rated A-l, P-l, and F-l may be used for city
fund investment.
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One of the most important factors determining.
whether an issuer's commercial paper is worthy of
,
credit is the nature. of the underlying bank line; of
credit. These credit lines are of four kinds: .
Standard line agreements, which, if activated,
convert into a standard bank note at a specified
time (e.g. 90 days);
Swing line, under which an issuer may borrow
on one day and repay the next;
Revolving line, which is a long-term flexible
line of credit virtually guaranteeing a bank
loan at any time upon the request of the issuer;
Irrevocable Letter of Credit (LOC), under which
the writing financial institution guarantees.
unequivocally that funds will be available to
redeem the commercial paper upon maturity.
This credit line is the most secure of the four
types and is the basis of many of the highest
ratings.
Commercial paper notes generally are issued in
bearer form, with minimum denominations begin-
ning at $100,000. occasionally at $25,000 and
$50,000.
Some analyst fear that a major credit collapse
could result in widespread defaults of commercial
paper. They recall, for example, that Penn Central
was an issuer of widely held commercial paper
before its collapse, Confining investments in
commercial paper to the highest rated paper, as the
Minnesota law does for city investments, can help
assure credit worthiness, but even with such
investments, frequent monitoring of the com-
mercial paper market is required to guard 0
against sudden deteriorations in credit quality.
It is obvious that commercial paper is not
the most prudent type of investment for a
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small city, though it may result in a good
return.
7. I nterest-bearing deposits
Every city is now authorized to place its idle
funds in interest-bearing deposits in a national
bank, an insured. state bank, a savings and loan
association, a federal savings bank, or possibly a
credit union (M.s. 118.01, 475.66; see also M.S.
52.04, Subd. 1, Clause 17 as to credit unions). The
word "bank" is used hereafter to include all these
authorized depositories.
These deposits may be of several kinds: (1)
interest-bearing checking accounts; (2) money
market savings accounts; (3) time deposits (CD's);
and (4) ordinary savings accounts. These are
discussed below. None of these may be opened
except in an designated depository. Thus, if the
bank (savings institution) has not been previously
used by the city, no deposit should be made init
until the council first adopts a resolution designa-
ting the institution as a depository of city funds
and stating the maximum deposit. Currently, the
amount authorized for deposit without the furnish-
ing of protection by the depository to the city is
$100,000. (M.S. 118.01.)
If the city's deposit in a depository is to exceed
that amount, which is the amount protected by
federal insurance, the excess must be protected by
a bond or collateral furnished by the depository.
If a corporate bond is furnished, it must be for the
total amount of the authorized excess deposits
(M.s. 118.01). The bond should be conditioned
for repayment of all sums on deposit when due and
it must also be approved by the council (M.S.
427.01 ).
If collateral is furnished instead ofa bond,
the total amount of the collateral computed at its
market value must be at least 10 percent more than
the maximum deposit (in excess of federal insur-
ance) au~orized by the council (M.S. 118.01,
Subd. 2). Evidently the only securities that may
be furnished are the "following (not including
industrial revenue bonds or notes under M.S.
Chapter 474 or similar bonds of other states):"
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All bonds (except bonds secured by real
estate), certificates of indebtedness, or
warrants which are authorized investments
for savings banks under state law;
b. Bonds of any insular possession of the
United States;
c. Bonds of any state or of any of its agencies
if the principal or interest is paid otherwise
than by direct taxation;
d. Notes secured by unmaturedfirst mortgage
on real estate located within the state if
interest is not past due and the real estate is
not tax delinquent. .
e. Loans guaranteed by the Small Business
Administration under the Small Business
Act and loans or obligations secured or
guaranteed by the United States or any
agency of the. United States, including any
corporation wholly owned directly or
indirectly by the United States.
All collateral must be approved by the council
and deposited with the city treasurer unless the
council designates some other place for safe-
keeping. It should not be kept in the depository,
however. All collateral must also be assigned to
the c.ity by an assignment requiring the depository
to pay to the city treasurer or his order, when due,
all money deposited free of exchange or other
charges, as well as all interest when due at the given
rate. Under the assignment, the city should also
have authority to sell as much of the collateral as
needed to cover the uninsured deposit in case of
default.
- 'tn its- discretion the depository may furnish
both collateral and a bond, deliver additional
collateral from time to time, withdraw excess
collateral, and substitute other collateral. Interest
on collateral belongs to the depository when there
is no default. When the depository relationship
ends, the collateral may be returned without
council action.
Many savings institutions now participate in a
o 2This requirement varies slightly from a different provision in the same section specifying that deposits
secured by collateral should never exceed 90 percent of the market value of the collateral. (M.S. 118.01,
Subd, 7.)
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"certificate of deposit network" for cities wishing
to invest more than the $100,000 federally insured
amount. Under this arrangement, the bank may
place up to $100,000 in its own certificate of
deposit and will place the remainder in insured
certificates of deposit issued to the city by other
banks which are members of the network. These
institutions may be in other cities and other states.
Thus the entire amount invested by the city is
federally insured. Since it is not necessary for any
of the banks to furnish a bond or collateral, they
may be able to offer a somewhat greater interest
rate to the city.
While there is nothing in the statutes which
prohibits the city from investing money in quali-
fied depositories in other states, some cities may
wish to consider the policy implications of out-
of -state investments. (Note though that investors
in other states will also be purchasing certificates
of deposit in Minnesota through these networks.)
Before purchasing certificates of deposit through a
network, the council should obtain a list of all of
the network's members and pass a resolution
designating the entire group as city depositories.
Interest-Bearing Checking Accounts. Under
terms of Public Law 97-320 (96Stats. 1469), the
Garn-St. Germain Depository Institutions Act,
passed in 1982, cities are now permitted to have
two different types of interest-bearing checking
accounts in banks. One type, the NOW (Negotia-
ble Order of Withdrawal) account, gives unlimited
checking privileges subject to rules of the financial
institution . as to minimum balances, service
charges, and the like. Currently, such an account
pays 5}4 percent interest.
The other, officially called a'Super-NOW ac-
count, is a checking account that requires a mini-
mum balance of $2,500. When the balance drops
below that, the institution pays the same rate as on
NOW accounts. The rate may be as high as on
money market deposit accounts (see below) but
typically has been somewhat lower. There are
unlimited checking, deposit, and withdrawal rights
in these accounts,' subject to rules of the institu-
tion. Federal restrictions on these accounts are
few but financial institutions may prescribe a
variety of charges and offer different services, so it
is important that cities shop carefully before
opening such an account. In some cases the service
charges may be so high that a city may receive a
better return on a regular NOW account. The
Super-NOW account carries a "reserve" require-
ment; that is, the banks must set aside a portion of
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the deposit-usually 12 percent--that cannot be.
used for investment. Interest rates or service
charges reflect the fact that this reserve may not be
invested. The Super-NOW accounts should be
compared with the Money Market Deposit Ac-
count described below.
c
Money Market Deposit Accounts. The same
1982 federal law also permits banks to offer an
account that is almost the direct equivalent of a
money market mutual fund. It is often called a
money market savings account, but a depositor has
more flexibility than with a typical savings ac-
count. The depositor may make unlimited de-
posits and withdrawals in person and may make six
additional transactions per month, including
transfers to another account. No more than tt.ree
checks may be written on the account each month
without penalty, and the bank may prescribe what
that penalty is. As in the case of a Super-NOW
account, a minimum of $2,500 is required for such
an . account. In both cases the bank may pay
different rates on different balances and may add
its own restrictions to those required by law.
When bank money market deposit funds were
first offered, promotional interest.rates. initially
paid were generally higher than rates paid by
money market mutual funds (see section 3), but in
the aggregate the rates the depositor earns from the
two funds now are quite comparable. Practicesin
making service charges and paying interest vary so
widely that careful investigation of competitive
offerings is desirable when a city considers opening
an account of this type.
Money market mutual funds often have no
transaction fees. Fees for administering the fund
~re deducted before the yield is calculated and~
shareholders do not pay separate fees. Further-
more, mutual funds pay the same rate of interest
on all the money a depositor has in the fund; there
is no difference in interest rates when the deposit is
above or below a fixed amount, as is often the case
with banks.
On the other hand, money market mutual funds
usually have a minimum dollar amount on the
checks that can be written, typically $250 or $500.
Also, such funds are not insured. A good com-
parison of the two types of money market invest-
ments or deposits is given in the September, 1983
issue of Consumer Reports. pp. 453455.
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Time Deposits. A city may also make a deposit
in a bank in the form of a certificate of deposit or
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any other time deposit. A certificate of deposit
(CD) is evidenced by a negotiable or non-negotia-
ble instrument ythich provides on its face the
amount of the deposit and is payable to the bearer
or to any specified person (a city, in this case) on a
specific date not less than 30 days from the date of
issue. Interest may be made payable quarterly,
semi-annually, or annually. The maximum rate of
interest is specified by law.
Maturity dates on certificates of deposit may
be scheduled to fit the city's expected disburse-
ment pattern. Suppose, for example, a city re-
ceives $120,000 through a bond issue or pre-
payment of special assessments to finance a capital
improvement and an equal amount must be dis-
bursed each month over a construction period of
six months. Just as if it were investing in securities
in such a case, the city may have its six CDs
maturing in 30, 60, 90, 120, 150, and 180 days,
assuming the first $20,000 is not needed before the
end of the first month.
Certificates of deposit are easily obtained
locally. They are available at any time in any
amount the bank is willing to accept. Interest-
be;lring accounts, including CDs and the money-
market accounts, are partiCularly attractive when
market conditions or the amount of idle funds
available do not justify going through procedures
necessary for purchase of investments discussed in
this memo.
Ordillary Savings Accounts. The city may also
deposit idle funds in ordinary savings accounts:' In'
this case, the time of withdrawalsand the payment
of interest at a specified rate are restricted by
the terms of the account. The interest rate is
lower than on most of the bank accounts discussed
above.
Criteria for making wise investments
o
Determining when and how to invest and in
what to invest requires more special knowledge of
techniques and market operations than is possible
to treatin detail in a memorandum of this type.
This memo can only describe in general the criteria
that are usually followed in deciding on invest-
ments and briefly mention some considerations
that may be useful in determining when and how
to invest. A much fuller treatment of the subject
can be found in a 1982 publication of the Munici"
pal Finance Officers' Association, 180 North
Michigan Ave~, Suite 800, Chicago, Illinois
60601-7476, entitled A Public Investor's Guide to
Money Market Investments, by Girard Miller. This
o
book inciudes a helpful bibliography for those who
wish to pursue the subject in greater detail. Also
helpful are parts of a 1974 MFOA publication
entitled Financing Local Governments by Special
Assessments, by Glenn W. Fisher, and a 1961
report of the A(jvisory Commission on Intergovern-
mental Relations, Washington, D.C. entitled
Investment of Idle Cash Balances bY State and
Local Governments.
Several important criteria must be applied in
selecting investments for. idle city funds: safety,
yield, proper spacing of maturities, and liquidity.
Wise treasury management justifies the use of
public funds to secure additional revenues through
interest earnings, but speculation with the ta)(-
. payer's money is imprudent. Local bankers usu711y
can help in developing a sound foundation for a
city's investment program. If a banker does not
have the answers himself, he can tell where they
can be obtained. Some of the larger banks in the
metropolitan area publish daily quotation sheets
on government obligations 'and agency issues.
Persons responsible for municipal investments
should write to the agency or the Treasury Depart-
ment for a prospectus on the contemplated issue of
purchase when investments rather than interest-
bearing deposits are being considered. This infor-
mation should then be examined to test the
proposed investment by the criteria discussed
below.
The Safety Principle. Regardless of any other
considerations, theprQ~llCtion of the taxpayer's
money should be assured.... Speculation with the
principal amount of the investment is never justi-
fied. Bank and savings association deposits are
secured up to the amount of the federal insurance,
and any.-excess bank deposit can be protected by
the furnishing of the required collateral (110
percent of the excess deposit)..D.irect obligations
of ttae United States (Treasury certificates, notes,
bonds, and bills) are guaranteed by the United
States. The s;ifety of agency issues must. be
weighed in terms' of experience, types of loans
which . agencies make, and what organizations
Congress and the states permit to invest in agency
issues. Even though agency issues are not con-
sidered obligations of the government directly, the
subject matter of loans they make is insured. For
example, FNMA's secondary market operations
deal in VA-insured and FHA-guaranteed loans; it is
impossible for these loans,even in the worst
economic conditions, to be charged against FNMA,
thereby jeopardizing its obligations. Most agency
issues have good yields and are rated by exper-
ienced investors as good investments.
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Spacing of rrw.twities. This principle must be
stated, "When the money is needed, it must be
available." Often securities having a maturity one
or two years longer will pay considerably more
interest; however, a high rate of interest is worth-
less if the funds are not available when needed
or if a loss must be taken in order to sell earlier
than expected. If funds might be needed prior to
maturity of an issue, the obligations should be
bought only on such a price basis that the principal
will be protected and the sale can be consummated
at the proper time.
The use of simultaneous repurchase agreements
is one way to provide proper spacing of maturities.
As indicated earlier, M.S. 471.561 permits a city to
invest funds in securities of the United States
government or the State of Minnesota or a political
subdivision when the securities are accompanied by
simultaneous repurchase agreements issued by a
state or national bank, under the terms of which
the securities are to be repurchased by the bank on
a specified ~ate at a predetermined price.
When the city has bond issue proceeds to
invest, it will be helpful to check with the architect
or engineer and the contractor on the project to be
financed from the bond issue to find the schedule
of estimated construction, so that as much as
possible may be invested, and yet money will
be available to pay the contractor when the esti-
mates for partial payment are submitted. While
bad weather, strikes, and other unforeseen develop-
ments may postpone completion,. the schedule
furnished by the architect or engineer and con-
tractor is likely to be-more reliable than the
investing officer's. own unsupported projection of
money needs for the project.
Liquidity. A proper investment must be suf-
ficiently liquid so that the city is able to obtain
cash if an emergency arises. Most authorized
investments may be sold to a dealer bank or
securities dealer at any time prior to maturity.
The general rule is that the city selling the invest-
ment will retain the interest for the time held and,
depending upon the market, may stand to gain or
lose on the principal by the sale. Some banks
charge a service charge and securities dealers
a small commission for buying and selling securi-
ties.
Yield. If these factors have received proper
consideration, the investment or deposit providing
maximum earnings may be made since the object
of investing idle funds is to put the taxpayer's
~
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money to a use that will yield the greatest return
consistent with safety and the city's later need for
the money. 0
DetermiJ:ling when and how much to invest
1. Making the cash forecast
A cash forecast is an accountant's tool for
determining expected expenditures and receipts
over a projected period. This period may be a city's
fiscal year or several fiscal years. When and how
much of the city's funds should be invested or
deposited in interest-bearing accounts can be
determined .after preparation of a cash forecast.
Some of the sources of information for the pre-
paration of a cash forecast include the annual
budget, prior years' financial statement, depart-
mental budget requests, engineering and construc-
tion timetables, trends and other data.
The time to prepare a cash forecast is the
beginning of the projected period or the beginning
of the fiscal year. Each month as the actual
receipts and disbursements are determined, they
should be compared with the projections and
adjustments made as deemed necessary. If, at first,
the official in charge finds that he or she is missing
the actual target by a wide margin with the projec-
tion, it may be wise to consider only Treasury
bills, CD's, or mutual funds as investments. The
yield may be less, but flexibility will be greater.
It will also be found that with experience the ratio
of investments to cash in the bank will improve
considerably.
2. Determining amount to be kept in checking
account
A city must not only determine how much
money it will have available for investing or de-
positing in interest-bearing accounts; it must also
determine how much must be. kept in the city's
checking accounts to avoid additional service
charges. It is not enough to have a balance great
enough to cover the checks written. The bank is
entitled to have the city's active deposits main-
tained at amounts sufficient to compensate the
bank for the work it performs including a reason-
able commercial profit margin.
In the case of a city, there must be added to
the normal costs of the account the value of special
services performed by the bank. The bank is
entitled to reasonable compensation if, for exam-
ple, it takes bids on investments, maintains custody
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of securities, makes special pickups of money,
delivers bonds and securities, or treats the city as a
preferred depositor by pledging securities to cover
deposits in excess of insurance protection. Banks
also often render valuable service in connection
with administration of city debt. If these various
costs are not compensated for by the city's main"
tenance of large balances, they must be recovered
by special charges. The minimum amount that
must be maintained in the city's active accounts
must be worked out with the bank. This may be
higher than the amount needed by the city to
make necessary disbursements as they occur.
3. Accountability
Accountability and an evaluation of the results
of an investment program can be accomplished by
various methods. As much care and prudence
should be exercised in the accountability of
investments as would be used for cash or any other
asset of the city.
Investments should be shown at cost, adjusted
for any premium or discount. An accounting
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Rev.: 8/83
OCP:glb
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schedule of investments for each year might
appropriately show for each investment the date
purchased and sold, the price paid with reference
to 100 as par, the total cost to the city, the
amount realized on sale, with premium, if any, and
the interest received by the city. The results of
any investment program should be easily obtain-
able from the city's accounting records once the
program is under way.
If the securities are kept in the city's depository
bank, the finance officer should secure a receipt
from the bank and keep it in a locked file. The
receipt should show the serial number of the
securities involved, and these numbers should be
permanently recorded in the ledger. At least onr~ a
year the treasurer should obtain a physical verific:l-
tion of the securities at the bank.
The finance officer should maintain a schedule
of maturities of investments in order to keep funds
properly re-invested when necessary, and should a
written record of each purchase and sale of securic
ties in order to provide the evidence of securities
and deposits received.
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CITY OF COON RAPIDS
pTATEMENT OF INVESTMENT POLICY
o
Effective cash management is recognized as essential to good
fiscal management. This is particularly true as mounting costs
and expanding programs have placed ever increasing pressures on
local governmental revenues. The extent to which local govern-
ments can obtain investment returns on funds not immediately
required can help to reduce this pressure. Investment policies
must be well founded and uncompromisingly applied in their legal,
vendor, and administrative aspects.
It is the policy of the City of Coon Rapids that available funds
be invested to the maximum extent possible, at the highest
rates obtainable at the time of investment, in conformance with
the legal and administrative guidelines outlined herein.
I. Legal Aspects
Minnesota Statues authorize and define an investment
program for municipal governments. (Exhibit 1)
A. Investment Instruments Authorization
The City of Coon Rapids shall invest in the following
instruments allowed by Minnesota Statutes:
a. United States Treasury obligations
b. Federal Agency issues
c. Repurchase Agreements (repo's)
d. Certificates of Deposit
e. Commercial Paper - prime
f. Bankers Acceptances - prime
g. Money Market Funds whose portfolios consist of
United States Treasury obligations and Federal
Agency issues.
B. Supplemental Depositories
Annually the City Council will designate depositories
for investment purposes.
II.
Vendor Aspects
o
The vendor aspects of investment activity focus upon pro-
tection of taxpayer dollars and investment income, con-
sistent with statutory authGrization and financial
prudence. The City of Coon Rapid~ shall seek to conduct
its investment transactions with several competing, repu-
table investment secuirty dealers and qualifying banks.
Special care should be exercised when considering new
services.
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CITY OF COOON RAPIDS
STATEMENT OF INVESTMENT POLICY
(Continued)
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A. Perfecting Collateral in Repurchase Agreements
Repo's are considered secured loans with s~curities as
underlying collateral. The collateral in each repo
transaction shall be perfected. (Perfection is a legal
conc~pt by which a lender attains the right to take
delivery and ownership of the collateral involved in a
loan in the'event that a debtor defaults and files
bankruptcy.) With collateral perfection there is less
principal risk for the lender since the claim against
the collateral is in place in relation to those of
other parties.
For repo's with maturities of 21 days or less, colla-
teral is considered perfected without security deli-
very. For repos with maturities extending past 21 days
perfection occurs only by taking possession of securi-
ties. It is the City of Coon Rapids policy to insist
on delivery of securities if the repo transaction is
for greater than 21 days.
B. Selection of Repo Vendors
The City of Coon Rapids will purchase repos from ven-
dors who meet certain criteria.
1. Repo transactions restricted to:
a. Reporting dealers who are monitored by the New
York Federal Reserve Bank
or
b. Nationally supervised commercial banks whose
combined capital and surplus equals or exceeds
$10,000,000.
2. Reputation and Experience
The qualifying bank or dealer must have
demonstrated over a significant period of time, a
successful, profitable, and reliable operation.
3. Management and Professionalism
The qualifying bank or dealer must have an
established managerial component and knowledgeable
professional staff capable of ensuring the con- 0
tinued success of the enterprise.
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CITY OF COOON RAPIDS
STATEMENT OF INVESTMENT POLICY
(Continued)
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C. Local Investments
In order to provide an opportunity for small local
banks and Savings and Loans to compete in the bidding,
efforts will be made to offer smaller dollar amounts
for bid..
The City of Coon Rapids will purchase short-term and
medium-term certificates of deposit from vendors based
on the following criteria:
a. The rate should match or exceed other invest-
ment. options.
b. The collateral shall be government securities
in excess of FDIC maximum insurance ($100,000
undercurrent law). .
D. Certificates of deposit from Qualifying Banks
The City of Coon Rapids will follow Minnesota Statutes
118.0l and llS.OOS. (Exhibit 2)
E. Bankers Acceptances and Commercial Paper
Although authorized by Minnesota Law, bankers accep-
tances and commercial paper are more risky than instru-
ments of the Federal government or Federal agencies.
Because of the credit risk, the City of Coon Rapids
will follow these guidelines:
1. Bankers Acceptances
a. Bankers Acceptances:shall .be restricted to the
top 40 banks in the.United States (as measured
by deposits). Investments in Bankers Accep-
tances shall not be:made if news leads offer
concerns over the financial condition of these
banks.
b. The broker, dealer,:or banker shall verify that
the Bankers Acceptance is eligible for purchase
by the Federal Reserve system.
c. Bankers Acceptances should not be purchased
unless the yield is greater than United States
Treasury obligations or Federal Agency issues.
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CITY OF tOOON RAPIDS
STATEMENT OF INVESTMENT POLICY
(Continued)
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2. Commercial Paper
a. Commercial Paper shall be restricted to issues
which mature in 270 days or less with a rating
of A-I (Moody's), P-l (Standard & Poors), or
F-l (Fitch) among at least two of the three
rating agencies.
b. Commercial Paper shall be. purchased only from
dealers who report to the Federal Reserve Bank
of New York or from qualifying banks.
c. Commercial Paper shall not be purchased unless
the yield is greater than United States
Treasury obligations or Federal Agency issue.
III. Administrative Process
Investments of the City of Coon Rapids shall be undertaken
in a manner which seeks to insure the preservation of capi-
tal in the overall portfolio. Safety of principal is the
foremost objective. Liquidity and yield are also important
considerations. It is essential that money is always
available when needed, therefore, Coon Rapids investment
goal is to maximize yeild while seeing that the maturity
dates coincide with expenditure needs.
The investment portfolio of the City of Coon Rapids shall
be designed to attain a market-average rate of return
during budgetary and economic cycles, taking into account
the City's investment risk constraint and the cash flow
characteristics of the portfolio.
All participating,'-in the investment p,rocess shall seek to
act responsibly a,s custodians of the public trust.
Investment officials shall avoid any transaction that might
impair public confidence in the City of Coon Rapids' abi-
lity to govern effectively.
A. Procedures
Cash management is essential to a good investment
program. The Finance Department has responsibility to
organize and establish procedures for effective cash
management.
1. Cash flow projections are prepared at the beginning
of each budget year.
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CITY OF COOON RAPIDS
STATEMENT OF INVESTMENT POLICY
(Continued)
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2. Each morning cash balances are prepared based on
cash received the previous day, warrants paid the
previous day, and sizeable checks or wire transfers
that present investment opportunity.
3. Each morning the. investment records are reviewed
and updated as investments mature or are purchased.
4. Each month the investment records are balanced to
the financial records.
5. Each month the Treasurer shall submit a report of
the City's investments and cash position to the
City Council.
6. Interest earned will be allocated to the various
City funds at least quarterly.
B. Banking and Oepositories
Investment procedures include controlling the level of
bank balances and selecting depository institutions.
Except for the payroll account, all City funds are
centralized in one bank account.
1. At the beginning of each year, the City Council
approves depositories and investment firms.
2. Minnesota Statutes 118.005 and 118.01 requires that
all deposits be collateralized in the amount of
110% of deposits in excess of federal government
insurance coverage. (Exhibit 2)
Acct JIB
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EXHIBIT 1
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Minnesota Statute 385.07 requires that "all county funds shall be deposited
promptly and intact by the county treasurer in the name of the county or invested
as provided in 471.56 and 475.66.... MS 471.56 states: ..Arty municipal funds,
not presently n~ed for other pl1rposes, may be deposited or invested in the
manner...provided in section 475.66 for the deposit and investment of debt
service funds." The statutes that now authorize specific investment instruments
are:
'Ms 475.66 Subd. 1~
All debt service funds sha 11 be deposited and secured as provided in
Chapter 118, except for amounts invested as authorized in this ~ection,
and may be deposited in interest bearing accounts, and such deposits
may be evidenced by certificates of deposit with fixed maturities. Sufficient
cash for payment of principal, interest, and redemption premiums when
due with respect to the obligations for which any debt service fund is
created.shall be provided by crediting to the fund the collections of
tax, special assessment, or other revenues appropriated for that purpose,
and depositing all suCh receipts in a depository bank or banks duly qualified
according to law or investing and reinvesting such receipts in securities'
author1zed in this section. Time deposits shall be withdrawable and
certificates of deposit and investments shal] mature and shall bear interest
payable at times and in amounts which, in the judgment of the governing
body or its treasurer or other officer or committee to which it has delegated
investment decisions. will provide cash at the times and in the amounts
required for the purposes of the debt service fund, provided however,
that the governing body may authorize the purchase of longer term investments
subject to an agreement to repurchase such investments at times and prices
sufficient to yield the amounts estimated to be so required.' Repurchase
agreenents may be entered into wi th . a bank qua li f i ed as depos i tory of
money held in the debt service fund, or with any national or state ~ank
in the United States which is a member of the federal reserve system
and whose combined capital and surplus equals or e:(ce~ds 510,000,000,
or a reporting dea]e~ to the federal reserve bank of New York.
MS,47S.66 Sued. 2: Repurchase Agreements
Investments may be held in safekeeping with any federal reserve bank,
any bank authorized under the laws of the- United States or any state
to exercise corporate trust powers, including but not limited to the
bank from which the investment is purchased, cr a reporting dealer to
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the federal reserve bank. of New York, provided that the municipality's
ownership of all securities in which the fund is invested is evidenced
by written acknowledgments identifying the securities by the names of
the issuers, maturity dates, interest rates, and serial numbers or other'
distinguishing marks.
MS 475.66 Subd. 3: Unit~ States Treasury obligations, federal agency
issues, specifi~ investment company shares, state and local general obHgations,
bankers acceptances and conmerciaJ paper~
Subject to the provisions of any reso lutions or other instruments securing
obligations payable from a debt service fund, any balance in the fund
may be investe<i
(a) in any security .nich is a direct obligation of or is guaranteed
as to payment of principal and interest by the United States or any agency
Or instrumentality of the United States,
(b) in shares of an investment company registered under the federal investment
company act of 1940. whose shares are registered under the f~eral securities
act of 1933. and .nose only investments are in securities described 'in
the preceding cl ause.
(c) in any security which is a general obligation of the state of Minnesota
or any of its municipalities.
(d) in bankers acceptances of United States banks eligible for purChase
by the Federal Reserve System. or
(e) in commercial paper issued by United States corporations or their
Canadian subsidiaries that is of the highest quality and matures in 270
days or-less.
The fund may also be used to purchase any obligati~n, whether general
or special, of an issue which is payable from the fund, at such price,'
which may include a p~ium, as shall be agr~d to by the holder, or
may be used to redeem any obligation of such an .issue prior to maturity
in accordance with its terms. The securities representing any such:invest-
ment may be sold or hypothecate<i by the municipality at any time, but
the money so received remains a part of the fund until used for the purpose
for which the fund was created.
MS 475.66 Subd. 4.
Any obligation held in the debt service fund from which it is pavable
may be cancelled at any time unless other'Nise provided in a resolution
or other instrument securing obligations payable from the fund.
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31.
MS 475.76 - all subdi"i s ions: Reverse Repurchase Agreements
Subd. 1: A reverse repurchase agreement may be entered into by a mu.nici- 0
pality, subject to the provisions of this section, only with a bank qualifi .
as depository of funds of the municipa Hty, or with any national or state
bank in the United States which is a member of the federal reserve system
and wnose comb i ned cap i ta 1 and surp 1 us equa 1 s or exceeds SIO, 000, 000,
or with a reporting dealer to the federal reserve bank of New York.
Subd. 2: Reverse repurchase agreements shall not be included in computing
the net debt of a municipality. and may be made without an election or
public sale, and the interest payable thereon shall not be subject to
the 1 imitation in section 475.55. The interest shall not be deducted
or excluded from gross income of the n!Cipient for the purpose of state
income, corporate franchise, or bank excise taxes or, if so provided
by federal law, for the purpose of federal income tax.
Subd. 3: Reverse repurchase agreenents sha 11 be made on beha 1 f of the
municipality only by its .treasurer or other officer designated pursuant
to law or charter as custodian of funds and securities held by it, or
by a deputy of the officer, when authorized by a resolution of its governing
body, and Subject to any 1 imitations imposed by the governing body.
They may be made in writing or orally, provided that confinnation of .
an oral agreement is made by the other party by wire or in writing trans-
mitted or mai led within one business day thereafter. The agreenent or
confinnation shall state the sale date and price, the repurchase date
and price, and the issuer, designation, principal amount, coupon interest
rate, if any, maturity date, and redemption date, if any. of the security.
Subd. 4: In the event of failure by a bank or dealer to redeliver a
security under a reverse repurchase agreement upon tender of the repurchase
price by the municipality at the repurchase date, the obligation of the
municipality to repurchase shall cease, and the bank or dealer shall
be liable to the municipality for any amount by which the marleet price
of the security at that date exceeds the repurchase price. In the event
of failure by a municipality to tender the repurchase price when due
under an agreenent, the obligation of the bank or dealer to redeliver
shall cease, and the municipality shall be liable to the bank or dealer
for any amount by which the repurchase price exceeds the market price
of the security at the repurchase date. The market price of a security
for the purpose of this subdivision shall be deemed to be the average
of bid prices quoted, as of the pertinent date, by two or more banks
or dealers referred to in subdivision 1, other than the purchaser. Any
amount for which either party to a reverse repurchase agreement is liable
under the provisions of this subdivision shall be recoverable by action,
and may be offset against any existing or subsequent liability owed to
the defaulting party. other than a liability of a bank as trustee, custodian,
paying agent. or other fiduciary. Any amount for which t.1e municipaiity
becomes liable shall be included in computing its net debt. whether or'
not it causes the net debt of the municipality to exceed any limit otherwise
app] icab Ie.
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Subd. 5: Reverse repurchase agreements entered into in accordance with
the foregoing provisions shall be va lid and binding, whether or not they
conform to the following limitations. However, the execution of an agreement
that does not conform constitutes misconduct on the part of the responsible
officer, subject to a penalty as provided in section 609.43, if the term
of the agreement exceeds:
(a)
A period of 30 consecutive days, including the sale date but
not including the. repurchase date; or
A period .....ich, with the a99f"e9ate periods of all agreenjents
made within the pr~edin9 12 months with respect to one 'security
or t'iWO or more identical securities, exceeds 90 days, whether
or not the period fT'Olll the first sale to the: last repurchase
exceeds 12 months.
(b)
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EXHIBIT 2
MS 118 Subd. .005 and .01: Public funds depositories and collatal- c:>
ization thereof.'
118.005 DESIGNATION, PROTECTION OF DEPOSIT. Subd. 1. The
governing body of every municipality. as defined in section
U8.01. which has the power to receive and disburse funds.
shall designate as a deoositor:( of the funds such national,
1nsured state banks or thr1ft 1nst1tut10ns as def1ned 1n section
SlA.02. subd1V1S10n 23, as 1t may deen proper.
Subd. 2. In the event the bank or insure<! thrift institution
selected as a depository is a member of the Federal Deposit
Insurance Corporation or the Federal Savings and Loan
Insurance Corporati on, the custodi an of the funds may depos i t
an amount not.to exceed the maximum amount of insurance on
the deoosits. In the event it 1S desired to de S1t a reater
amount in any bank or thri t inst1tution pr10r to the depos1t,
the qoverninq body or off1cer shall reqU1re the bank or thr1rt
institution to furnish a bond, executed by a corporate surety
company authorlZed to do bus1ness in the state in a sum at
least equal to the estimated sum to be deposited in excess
of the maximum amount of insurance. In lieu of the bond, the
depository shall assign to the custodian of the funds collateral
security in accordance with section 118.01.
118.01 DEPOSITORY BONOS. Any bank, trust company, or thrift
institution authorized to do business in this state. designated
as a depository of funds of a municipality, as provided by
law may. in lieu of the coroorate or personal surety bond re-
quired to be furnished to secure the funds, deoosit with the
custod1an of the funds, the bonds, certificates of indebtedness,
or warrants, exceot bonds secured bv real estate, as are
)egally authorized investments for savinqs banks uader the laws
of the state. or the bonds of any of the insular oossessions
of the United States, or the bonds of any state, or its ,
aaency. the oayment of the princioal and inter~st of which,
or either, is provided for otherwise than bv direct taxation.
or notes secured bv first mortaates of future maturity. uoon
which interest is not oast due. on imorove~ real estate free
from delinauent taxes, within the county wherein the deoositorv
is located. or within counties immediatelv adioinina the
county in the state of ,"Iinne~ota. role total in amount of the
collate~al camouted at its market value shall be at least ten
percent more than the limit of deoosit whi~h would beoermitted
if a coroorate or personal' surety bond was furn1shed. The
depository may at its discretion furnish both a bond and
collateral aggregating the required amount. Any collateral so c:>
deoasited shall be aC~ompanie~_~~ an assignment thereof to
=-~
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31
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the miJni cipa 1 i,ty des; gnatfng the depos itory. which ass ignment
shall reci te that the depos.itory sha II pay over to the treasurer
or his order on demand or, if a time deposit, when due, free of
exhange or any other charges. all moneys deposited therein at
any time during the period the collateral shall be so deposited
and to pay the interest thereon when due at the agreed rate; and
that, in case of anY.defau1t upon the part of the depository, the
governing body of the municipality making the designation shall ,
have full power and authority to sell the collateral. or as much
thereof as may be necessary to realize the full amount due the
municipality and to pay.over any surplus to the depository or its
assigns. A depository may in its discretion deposit collateral
of a value less than the total designation and may from time to
time. during the period of its designation. deposit additional
collateral and make withdrawa 1sof excess collateral or substi tute
other collateral for that On deposit or any part thereof. Authority
is vested in the treasurer to return the .collatera1 to the depository
when the trust so created is terminated and he shall ~ in the case
of a reduction of the deposit. pennit. the depository to withdraw
the excess portion thereof. All interest on the collateral so
deposited when collected shall be paid to the depository so long
as it is not in default. Before any collateral is deposited with
the treasurer it shall first be approved by the same authority
that designated the depository. but no such authority shall be
necessary for the withdrawal of collateral. The closing of a
depository shall be deemed a default upon the part of the depository
and no demand upon the part of the municipality or its treasurer
shall be necessary to establish the default. If a depository
shall close. any time depOSit placed therein shall immediately
become due and payable. If both bond and collateral are
furnished by a depository, al.1 or any part of the collateral
may be withdrawn without in any way impairing the full force
and effect of the bond unless it shall contain a provision that.
the collateral shall not be withdrawn without the consent of the
surety thereon. If a corporate surety bond is furnished by a
depository, it shall be in a penal sum not to exceed the amount
designated as the limit of deposit therein. nowithstanding any
other provisions of law to the contrary. At no time shall the
treasurer maintain a deposit in any depository against collateral
in excess of 90 percent of the market value thereof. Any provision
of law authorizing any municipality to designate banks ad
depositories shall be construed to include trust companies and
thrift institutions authorized to do business. All bonds furnished
under the proviSions of this section shall be approved by the
governing bond of the municipality making the designation and
filed in the office of the county auditor as provided by section
124.05. and all collJteral deposited und~r the provisions of this
section shall be approved by the governing body of the munici-
pality making such designation and after such approval depOSited
with the treasurer of such municipality. unless the governing body
of such municapility shall by resolution fix and determine some
other place for the safe-keeping of such collateral. Such
o
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collateral shall not be redepQsited in the bank. trust company
or thrift institution furnishing the same.
,
Any depository pledging such securities. at any time it deems it': 0
advisable or desirable. may substitute obligations of the United
States of Ameri ca for a 11 or any part of the. secu riti es pledged.
except that no such depository shall substitute obligations of
the United States wh4ch mature within one year from the date
such obligations are first considered as a part of the depository's
reserve and which reserves are required by Minnesota Statutes
1967. Sections 48.22 or 5LA.20. The collateral so substituted
sha 11 be approved by the governi ng body of the muni ci pa 1 ity
making such designation at its next official meeting.
Such securities so substituted shall. at the time of substitution.
have a market value sufficient. together with the market value
of the original securities for which no substitution is made, to
equal or exceed S110 for every S100 of publ ic deposits.
In the event of substitution the holder or. custodian of the
securi ti es sha 11. on the same day. forward by regi stered or
certified mail to the public corporation and the depository. a
receipt specifically describing and identifying both the securities
so substituted and those released and returned to the depository.
"Municipality" for the purpose of this section means county. city,
town. school district. hospital district. public authority. public
corporation. public conmission. special district. policy or
firefighter's reI ief association, any other statutory retirement
association holding .funds intended for retirement benefits for
employees of a municipality. any other political subdivision, or
agency of the state or of its subdivisions.
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CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
AGENDA SECTION
NO. Discussion
DATE
ORIGINATING DEPARTMENT
February 18. 1986
Cl erk- Treasurer
ITEM
NO.
Cooperative Purchasing
4.g.
By:Larry P. Johnson
The City Council is requested to approve membership in the Minnesota
Cooperative Purchasing Venture at an annual fee of $225.00.
Attached is a letter outlining the program and a listing of the commodities
available. I have reviewed the list of commodities with city staff involved
in purchasing and am convinced that we could save money by utilizing the
vendors who have already been determined to be low bid on all these commodities
under state contracts.
We should be able to monitor our savings before renewing our membership for
1987.
COUNCIL ACTION
MOTION BY
TO
SECOND BY
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STATE OF MINNESOTA
DEPARTMENT OF ADMINISTRATION
SAINT PAUL 55155
OlVI810N 0..
PROCUREMENT
TE L. "'l0-.
(612) 296-2600
i.lIl1l.:r'i :"3, lDHG
N1TICE
Dear Purchasing Executive,
I would like to make you aware of a new cooperative purchasing program that you may find highly
advantageous. We call it the Cooperative Purchasing Venture, and I want to urge you to seriously
consider participating.
The accompanying brochure outlines the details of the program. Basically, we ,are making it possible
for you to buy certain products and services directly from vendors under State contracts whenever
you can save money by doing so. The program is new, simple to use, and entirely voluntary.
If the program is used in the way it was intended, each of you can realize significant savings.
The program was pilot-tested during the past few years on an informal basis and was found to be highly
successful, saving the average user more than $4,200. We in Procurement believe that even greater
savings will be realized now that the program is fully operational.
We are charging a nominal fee of $250 to cover our development and administrative costs, payable
at the time you mail in your membership application card (enclosed). If for some reason you do not
qualify for the program, you will be notified in writing and your check will be returned.
As a special incentive to join immediately, the membership fee is only $225 if your application is
received by February 1, 1986. I urge you to get your application in to take advantage of the lower
prices. Also, the sooner you get your new vendor permit number, instructions, and vendor index,
the sooner you can begin saving money.
This is the only cooperative purchase program the State will be offering. After looking at the best
programs offered by other States, we think we've designed a model program that saves you time in
the preparation and evaluation of your bids while increasing your vendor options. In short, I believe
we have devised a synergistic system by which we can all work together to maximize our purchasing
power and get the greatest value for the taxpayers' dollars.
If you have any questions about the CVP program, please do not hesitate to call Harvey Leach, the
program administrator, at 296-3779 or myself at 296-2600. I look forward to working with you.
Cordiall y,
~u~tt.a~' ~Q A/
/James A. Weyandt, 1>r , Di rector
.,/ Materials Managemen: Division-Procurement
~ Department of Administration
AN EQUAL OPPORTUNITY EMPLOYER
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CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE Fp.hrlli'lry lR. lqRf>
AGENDA SECTION
NO. Assessment Hearing
ORIGINATING DEPARTMENT
Engineering
ITEM Hanson Blvd/IP83-1
NO. 5
BY: James E. Schrantz
The City Council has ordered an assessment public
hearing for 9:00 P.M. 2/18/86 for the assessment
on Hanson Boulevard from Andover Boulevard to 161st
Avenue.
The notices and amount of the assessments have been
sent to the property owners listed (attached).
The City Council, after the public testimony is heard,
passed upon all objections, is requested to approve
the resolution adopting the assessment.
All the properties are deferrable except for the City
Hall property. The park has an access off Hanson Boule-
vard.
I recommend one of the following:
1) Have the park budget pay the assessments;
2) Cancel the assessment on the city's lot because we
gave the land.
NOTE: The city was included in the assessment roll so
the city part would reflect in the roll and reduce
the property owners' assessment.
Wins'low Holasek will request that Parcel 5400 not be
included in the assessment as it doesn't have frontage on
Hanson Boulevard as a separate parcel. Parcel 5400 was
included because Mr. Holasek also owns Parcel 6000 and it
was assessed as they would develop together. This was
discussed at the project public hearing.
COUNCIL ACTION
MOTION BY
TO
SECOND BY
o
o
Assessment Hearing
Hanson Boulevard
o
The Council never took any action at the project public
hearing other then the policy that was developed which
provides if the property doesn't get access from Hanson
Boulevard the assessments will terminate in 15 years.
Parcel 5400 as a separate parcel doesn't have access to
Hanson Boulevard.
The Council can do one of two things: 1) Cancel the assess-
ment; or 2) let the assessment stand and it will cancel if
access isn't available. The access would have to come through
the development of 6000 and 5400 as a single development.
I recommend the Council remove from the roll City Park
Hartfiel's Lots 12-16 (no access allowed),City Hal property -
pay~these from MSAfunds.
". (-'.~ ;
JES:vv
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BENEFIT
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-- - ~ --........------_..__._-----~----_._'---_..._-_...-
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o
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
NO.
MOTION by Councilman
to adopt the following:
A RESOLUTION ADOPTING THE ASSESSMENT FOR THE IMPROVEMENT OF
PROJECT NO. 83-1, HANSON BOULEVARD BETWEEN ANDOVER BOULEVARD
AND 161ST AVENUE.
WHEREAS, pursuant to proper notice duly given as required
by law, the City Council of the City of Andover has met and heard
and passed upon the proposed assessment for right-of-way costs
for the improvement of Hanson Boulevard between Andover Boulevard
and 16lst Avenue.
NOvJ, THEREFORE, BE IT RESOLVED by the City Council of the
City of Andover that such assessment, a copy of which is attached
hereto and made a part thereof, is accepted and includes all changes
adopted by the Council at the Public Hearing for that purpose, and
shall constitute the special assessment against such lands named
therein, and each tract of land included therein is hereby found to
be benefitted directly or indirectly by the improvement for the
amount levied against it.
BE IT FURTHER RESOLVED that such assessment shall be payable
in annual installments extending over a period of five (5) years,
the first of the installments to be payable on or before the first
Monday in January, 1987, and shall bear interest at the rate of
per annum from the date of adoption of this assessment roll,
or if deferred, the date on whch the assessment is certified
against the property. To the first installment shall be added
interest on the entire assessment from the date of certification
through December 31 of the certifying year. To each subsequent
installment, when due, shall be added interest for one year on all
unpaid assessments.
BE IT STILL FURTHER RESOLVED that the owner of the property
assessed, may at any time prior to October 15 of the certifying
year, pay the whole of such assessment with such payment being
made to the City Treasurer. He may, at any time thereafter, pay
to the City Treasurer, the amount of the assessment remaining unpaid,
excepting that installment for the year in which payment is made
shall be paid to the County Treasurer if paid after October 15
(except in the certifying year. Payments must be made prior to
October 15, or interest shall be charged for the entire following
year (except the certifying year).
o
BE IT STILL FURTHER RESOLVED that the City Clerk shall transmit
a certified duplicate of this assessment, indicating those to be
deferred, to the County Auditor to be extended on the proper tax
lists of the County, except those being deferred; and such assess-
ments shall be collected and paid over in the same manner as
municipal taxes.
MOTION seconded by Councilman
and adopted by
the City Council at a
Meeting this
day of
o
o
o
, 19
, with Councilmen
voting In favor of
the resolution, and Councilmen
voting against, whereupon said resolution was declared passed.
CITY OF ANDOVER
ATTEST:
Jerry Windschitl - Mayor
Larry P. Johnson - City Clerk
o
o
o
o
CITY OF ANDOVER
COUNTY OF ANOKA ~
STATE OF MINNESOTA)
CERTIFICATION TO ANOKA COUNTY RECORDER
This is to certify that the attached list of each lot or parcel
of land against which an assessment was levied by the City Council
on the day of , 19 for the land
acquisition costs for the construction of Hanson Boulevard, under
improvement No. 83-1 and on which assessment payment in
the amount stated as to each property Ilsted has been deferred by
the City Council pursuant to Minnesota Statutes, Chapter 429.061,
Subdivision 2.
Larry P. Johnson - City Clerk
Dated:
Attachment
o
o
o
o
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
NO.
MOTION by Councilman
to adopt the following:
A RESOLUTION PROVIDING FOR THE DEFERMENT OF SPECIAL ASSESS-
MENTS AGAINST UNDEVELOPED PROPERTY PURSUANT TO MS, CHAPTER
429.061, SUBDIVISION 2 AND CITY OF ANDOVER RESOLUTION OF
POLICY ON STATE AID IMPROVEMENTS FOR WHICH THE CITY HAS
EXPENDED FUNDS.
WHEREAS, Minnesota Statutes authorize the City of
Andover ~o defer the payment of special assessments on
unimproved property; and
WHEREAS, the City of Andover has adopted a policy under
Resolution No. 002-83, entitled the Assessment Policy for
Special Assessments Against State Aid Highway Improvements; and
WHEREAS, such policy sets forth standards to cover
deferments on State Aid Highway improvements; and
WHEREAS, City funds and City Municipal State Aid Funds
were expended to acquire right-of-way for the construction of
Hanson Boulevard between Andover Boulevard and 161stAvenue
(MSA83-1) .
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Andover to hereby defer those special assessments
to unimproved property for the improvement of Hanson Boule-
vard between Andover Boulevard and 161st Avenue, with such
deferment meeting the requirements of MS, Chapter 429.061
and City of Andover Resolution No. 002-83; and direct the City
Clerk to file a Certificate with the County Auditor as provided
in MS 429.061.
MOTION seconded by Councilman
and adopted by the
City Council at a
meeting this
day of
, 19
, with Councilmen
voting in favor of the
resolution, and Councilmen
voting against, whereupon said resolution was declared passed.
CITY OF ANDOVER
o
ATTEST:
Jerry Windschitl - Mayor
Larry P. Johnson - City Clerk
0 0
DEFERRED ASSESSMENTS
0 IP NO. 83-1
PIN PLAT PARCEL ASSESSMENT AMOUNT
26 32 24 23 0059 $ 397
27 32 24 14 0005 238
26 32 24 22 0001 5,016
27 32 24 14 0020 7,445
22 32 24 44 0001 3,618
23 32 24 33 0001 4,680
23 32 24 32 0001 941
23 32 24 32 0002 1,759
22 32 24 14 0002 959
22 32 24 14 0001 1,724
22 32 24 14 0002 517
22 32 24 11 0001 1,138
22 32 24 11 0002 3,416
23 32 24 23 0001 4,979
23 32 24 22 0001 4,979
14 32 24 33 0001 4,940
14 32 24 32 0001 3,967
15 32 24 44 0001 4,520
15 32 24 41 0001 3,656
67300 City Park 64
67300 Lots 12-16 318
22 32 24 41 000.1 3,725
22 32 24 41 0002
o
o
o 0
CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE Fp.hrll~ry lR lQRh
AGENDA SECTION
NO. Non-Discussion Items
ORIGINATING DEPARTMENT
Engineering
ITEM
NO.
Petition for Improvemen s
Hidden Creek/IP 86-4
6a
James E. Schrantz
MOTION BY
TO
BY:
The City Council is requested to approve the resolution
declaring the adequacy of the petition and ordering the
preparation of feasibility report for Project 86-4,
Hidden Creek (Good Value).
The escrow of $1,000 is required.
Good Value has already given us the $1,000.
We are a little ahead of the plat but TKDA can start
preparing the report.
Good Value wants to start building as soon as the water-
main is available.
JES:vv
Attach.
COUNCIL ACTION
SECOND BY
o
o
o
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
NO.
MOTION by Councilman
to adopt the following:
A RESOLUTION DECLARING ADEQUACY OF PETITION AND ORDERING PREPAR-
ATION OF A FEASIBILITY REPORT FOR THE IMPROVEMENTS OF WATERMAIN,
SANITARY SEWER, STROM DRAIN AND BITUMINOUS STREETS WITH CONCRETE
CURB AND GUTTER, PROJECT NO. 86-4, IN THE HIDDEN CREEK (SE~,
SECTION 33) AREA.
WHEREAS, the City Council has received a petition
dated January 28, 1986, requesting the construction of improve-
ments, specifically watermain, sanitary sewer, storm drain, and
bituminous streets with concrete curb and gutter in the following
described area: Hidden Creek (SE~ of Section 33); and
WHEREAS, such petition has been validated to represent
the signatures of 100% of the affected property owners requesting
such improvement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Andover that:
1. The petition is hereby declared to be signed
by 100% of owners of property affected, thereby
making the petition unanimous.
2. Escrow amount for feasibility report is $l,ODO.
3. The proposed improvement is hereby referred to
TKDA, and they are instructed to provide the City
Council with a feasibility report.
MOTION seconded by Councilman
and adopted by the
day of
City Council at a
19 , with Councilmen
voting ln favor of the resolution and Councilmen
Meeting this
voting against, whereupon said
resolution was declared passed.
CITY OF ANDOVER
ATTEST:
Jerry Windschitl - Mayor
o
Larry P. Johnson - City Clerk
o
o
o
GOOD
o
. "IIr.>!iI&.''''\
~. ~,f.-:" ~i:;:;/.k ~
-<:'
HOMES
January 28, 1986
.James E. Scilr.:Jl1t I-
City Engineer
City uf AnJuv<:t
1685 Crosstown Blvd. N.\~.
Anoka, MN 55303
RE: Proposed Hidden Creek Subdivision
Dear Mr. Schrantz:
Our Good Value Homes, Inc. does hereby petition for improvements by the
construction of water main, sanitary sewer, storm sewer and streets with
concrete curb and gutter with the costs of the improvement to be assessed
against the benefiting property which is described on the attached sheet.
Said petition is unanimous and the public hearing may be waived.
We request that a feasibility report be prepared. I have enclosed a
check for $1000.00 to be applied to the feasibility report expenses.
n~
.To R. Peterson
Di'ector of Development
JRP:deb
Enclosures
GOOD VALUE HOMES . Rt'gisteredBuild('r. J4b093rdLaneN.E..l-llaine.MN55434-43Qo. Phone: (bJ2) 780-5510
o
o 0
CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
AGENDA SECTION
NO. Non-Discussion
ITEM Junkyard License Approvals
NO. 6.b.
February 18. 1986
DATE
ORIGINATING DEPARTMENT
Cl erk- Treasurer
~rvFOR
,j
V
Larry P. Johnson
BY:
The City Council is requested to approve Junkyard Licenses for:
Commercia 1 Auto Parts
Bob's Auto Parts
The two remalnlng junkyards not licensed as of yet for 1986 are being
turned over to the city attorney for action; they are:
Andover Auto Parts - still have several cars in front
of screening fence
Riteway Auto Parts - we have not received their
application. late fee of $750 or
their insurance certificate.
(We do have their bond.)
.
o
MOTION BY
TO
COUNCIL ACTION
SECOND BY
o
o 0
CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE
Februarv 18. lQSfi
ORIGINATING DEPARTMENT
Engineering ~
BY: James E. Schrantz
AGENDA SECTION
NO. Non-discussion
ITEM Feasibility Report/
NO. SE Sewer/86-3
6c
MOTION BY
TO
The City Council is requested to approve the
resolution accepting the feasibility report and
ordering the public hearing for the southeast area
water and sanitary sewer along Bunker Lake Boulevard
from Thrush Street to zilla Street, Project 86-3.
To=date this proposed improvement doesn't have the
35% petition; therefore, the resolution requires a
4/5 vote.
We have a petition from Ileen Vosika, Section 35. The
County is building a facility that needs sprinkling and
fire protection which should be served. Also, other
property owners in the Northeast corner of the inter-
section of Hanson and Bunker Lake Bouleva~d are interested
in what Andover is going to do so they can plan around
sewer and water or private systems.
John Davidson, TKDA, will be at the meeting to discuss
the report.
I haven't received any correspondence from Anoka County
to=date.
JE~:vv
Attach: Feasibility Reprot
Resolution
COUNCIL ACTION
SECOND BY
o
o
o
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
NO.
MOTION by Councilman
to adopt the following:
A RESOLUTION RECEIVING FEASIBILITY REPORT AND CALLING PUBLIC
HEARING ON IMPROVEMENTS OF SANITARY SEWER AND WATERMAIN,
PROJECT NO. 86-3 IN THE BUNKER LAKE BOULEVARD AREA FROM
THRUSH STREET TO ZILLA STREET.
WHEREAS, pursuant to Council motion, a Feasibility
Report has been prepared by TKDA for the improvement of
sanitary sewer and watermain, Project No. 86-3 in the Bunker
Lake Boulevard area from Thrush Street 0 Zilla Street; and
WHEREAS, such report was received by the City Council
on the 18th day of February 1986; and
WHEREAS, such report declared the proposed improvement
to be feasible for an estimated cost of
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Andover that:
1. The City Council hereby accepts the Feasibility
Report for Project No. 86-3, for the improvements
of sanitary sewer and watermain, Project No. 86-3
in the Bunker Lake Boulevard, Thrush Street to
Zilla Street area as prepared by TKDA.
2. The Council will consider the improvements in
accordance with the report and the assessment
of abutting property for all or a portion of
the cost of the improvement pursuant to Minnesota
Statutes Chapter 429 at an estimated total cost
of the improvement of
3. A public hearing shall be held on such proposed
improvement on the day of
1986 in the Council Chambers of the City Hall
at and the Clerk shall give mailed
and published notice of such hearing and improvement
as required by law.
MOTION seconded by Councilman
City Council at a
and adopted by the
day of
Meeting this
, 1986, with Councilmen
o
voting in favor of the
resolution and Councilmen
voting against, whereupon said resolution was declared passed.
o
ATTEST:
o
o
CITY OF ANDOVER
Jerry Windschitl - Mayor
Larry P. Johnson - City Clerk
o
o
o 0
CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE February lR lQR~
AGENDA SECTION
NO'Staff, Commission,Committe
ORIGINATING DEPARTMENT
Planning & Zoning
ITEM
NO.
Jim Larsen Variance
7.a.I.
BY: Vicki Volk
MOTION BY
TO
MOTION by Apel, seconded by Rogers that the
Andover Planning and zoning Commission recommend
to the City Council approval of a variance
requested by Jim Larsen pursuant to Ordinance
8S, Section 8.23(4) for the following reason:
The building has been basically constructed. In
looking at pictures of a similar home, the appear-
ance would not be appealing with a 12" overhang
on the gable ends.
Motion carried on a 3 yes, 1 no (Jacobson) vote.
COUNCIL ACTION
SECOND BY
APPROVED FOR
AGE
BY:
o
o
o
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
NO.
MOTION by Councilman
to adopt the following:
A RESOLUTION APPROVING A VARIANCE FOR CONSTRUCTION OF A
SINGLE FAMILY DWELLING WITHOUT .THE REQUIRED 12 INCH ROOF
OVERHANG ON PROPERTY D~SCRIBEDAS LOT l, block 1, FOX
MEADOWS (PIN 18 32 24 41 0002).
WHEREAS, the Planning and Zoning Commission has
reviewed the variance request of Jim Larsen to construct a
single family dwelling without the required 12 inch roof
overhang as required by Ordinance 8S; and
WHEREAS, as a result of such review the Planning
and Zoning Commission has recommended approval of the request;
and
WHEREAS, the City Council acknowledges that construct-
ing the home with the 12 inch overhang, some of the home's
appeal is lost.
NOW, THEREFORE, BE IT RESOLVED by the City Council
to hereby approve the variance request of Jim Larsen to vary
from the provisions of Ordinance No. 8S, Section 8.23 to
construct a single family dwelling vlithout the required 12
inch overhang on property identifi~d as PIN 18 32 24 41 0002.
MOTION seconded by Councilman
and adopted
by the City Council at a
Meeting this
day of
, 19
, with Councilmen
voting in favor of the
resolution, and Councilmen
voting against, whereupon said resolution was declared passed.
CITY OF ANDOVER
ATTEST:
Jerry Windschitl - Mayor
o
Larry P. Johnson - City Clerk
o
o
o
o
CITY of ANDOVER
MEMORANDUM
TO:
COPIES TO:
FROM:
DATE:
M~yor ~na City Council
David Almqren, Buildinq Department
REFERENCE: Jim Larsen Variance Permit #4315
"'""hr""ry 1 4, 1 qRf>
A motion was made and passed by Planing and Zoning to approve
a variance for Mr. Larsen. If this is approved by the City
Council, I then believe it would set a precedence for other
similar variances such as roof pitch, siding, width etc.
Mr. Larsen and the supplier have known about this since
the plans were approved in July of 1985, so it is not
something that just came up.
o
o 0
CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE ",phrll",ry lR lqRh
AGENDA SECTION
NO. Staff, Committee, Comm.
Items
ITEM Various Ord. Amendments
NO.
ORIGINATING DEPARTMENT
Planning and zoning
7.a.2
BY: Vicki Volk
Council is requested to approve the attached resolution
setting various fees that were previously set by ordinance.
I have not included Ordinance No.4, Moving of Buildings,
as that was handled in 1981 and is sufficient for now.
Ordinance No. 32F was adopted by the Council at the last
meeting; therefore, it is not included; however, the fees
from that ordinance are listed on the resolution.
V
COUNCIL ACTION
MOTION BY
TO
SECOND BY
o
o
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
c:> NO.
MOTION by Councilman to adopt the following:
A RESOLUTION SETTING FEES FOR PERMITS, REZONINGS, SPECIAL USE
PERMITS, VARIANCES, PLATTING, LICENSE FEES, SEWER USER FEES,
LOT SPLITS, RENTAL FEES.
THE CITY COUNCIL OF THE CITY OF ANDOVER HEREBY RESOLVES:
The following fees are hereby established:
Type.of Fee
.Rezonings $
Filing Fee/Rezonings
.Special Use Permits $
Filing Fee/Special Uses
.Variances
Single Family $
Other Requests $
Filing Fee/Variances
.Plat. Fees
Preliminary plat filing
fee $
Preliminary Plat per
acre fee $
Final Plat fee $
.Contractor Licenses $
.Non-intoxicating malt
liquor license-on sale $
.Non-intoxicating malt
liquor license-off sale $
.Sewer Rental Fee
Sewer Fund A $
Sewer Fund B $
Sanitary Sewer Hookup
Permit $
Administrative Fee $
.Excavator Licenses $
.Street opening Permit $
.Lot Split Fee $
Filing Fee/Lot Split $
Park Dedication Fee/
Lot Split $
.Cigarette License $
.Outdoor Party License $
.Fire Hydrant Rental $
o
.Intoxicating Liquor
On-Sale Liquor
On-sale ~-Jine
Off-sale
Fee
150.00
10.00
150.00
10.00
40.00
65.00
10.00
40.00
7.50/acre
10.00
25.00/year
100.00/year
40.00/year
7. SO/month
8.50/month
40.00
15.00
25.00
5.00
50.00
10.00
100.00/each newly
created lot
l2.00/year
5.00
10.00/day plus
0.82/thousand gal.
$3,500.00/year
$ 500.00/year
$ l50.00/year
Ordinance
8DD
8DD
8DD
8DD
8DD
8DD
8DD
10J
10J
10J
22E
28B
28B
32F
32F
32F
32F
35A
35A
40D
40D
40D
45A
51A
55F
56A
56A
56A
o
o
o
MOTION seconded by Councilman
adopted by the City Council this
1986.
day of
ATTEST:
CITY OF ANDOVER
and
Jerry Windschitl - Mayor
Larry P. Johnson - City Clerk
o
__ 0
CITY OF ANDOVER
o
REQUEST FOR COUNCIL ACTION
AGENDA SECTION
NO. Commission, Staff, etc.
ITEM Temporary Signs, Cont.
NO.
DATE February 18, 1986
ORIGINATING DEPARTMENT
BY: Vicki Volk
Attached is a memo from d'Arcy Bosell regarding
temporary signs. Also attached is an ordinance
that was being considered by the City of Anoka
(it is still being considered).
This was on the agenda for February 4th so that
you would have time to read the attached memo.
V:Attach.
MOTION BY
TO
COUNCIL ACTION
SECOND BY
r
o
o
FOR YOURTNFORMATTON:
6D - 3:
o
CITY of ANDOVER
MEMORANDUM
TO:
COPIES TO:
FROM:
DATE:
REFERENCE:
Mayor and City Council
Anministri'lTor,
c.:ity C.lp-rk an.~tornpy
d'Arcv Bosell
21 Januarv 1986
Temporary Siqns
I have made inquiry to the following cities in regard to
"Temporary Signs" and their enforcement thereof:
Oak Grove - Judy Robinson (753-1920):
Temporary signs not to exceed 10 square feet
not solidly affixed
not to exceed 30 days in any
twelve (12) month period
General provisions allows for such signs as
special sales, bazaars, etc. They are allqwed in
any district expect that such sign shall not be
within 10 feet of the right-of-way, 5 feet from
other lot lines, and no more than 3 such signs
which shall not exceed 3Q square feet.
Generally, they
is a complaint.
signs either.
do not take action on a sign unless there
They do not have any fee structure for
Coon Rapids - Rick Packer, ZA (755-2880):
o
Temporary signs are allowed for.a maximum of
90 days per year, with a minimum of 15 days
between the removal of one sign and the
installation of another. (For example - if I
were going to have a special 4 day sale, I
could put my sign up for that sale and those
4 days would be deducted from my 90 available
days. At the conclusion of my sale, I would
have to remove that sign and could not put up
another sign for a minimum of 15 days between
"sales" or occasions.
,
Coon Rapids requires apenmtfor their signs but have no. fee
for same. In fact, you can call and request a permit over
,..
o
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Page Two
Temporary Signs
21 January 1986
o
the phone and they will mail it out to you. It is basically
to keep track of the signs, where they are located, when they
are installed, etc. Rick's desire would be to limit these
temporary signs to such occasions as grand openings and annual
events only, otherwise they would not be allowed. To date
that is not the case, however.
Anoka - Carol, City Manager's Office (421-6630):
Portable signs are defined as "not permanently
affixed to the ground, building or other structure
and which may be moved from place to place."
Temporary sign is a non-permanent sign erected,
affixed or maintained on a permises for a short,
usually fixed, period of time. This includes
a-frame signs, sandwich boards, etc.
A permit is required through the Building Official
and they set such conditions as the type of
material used, etc.
They are not permitted in shopping centers.
Temporary signs '" not to exceed 30 days and shall
be removed within 3 days of the activity, service,
product or sale.
No more than 2 shall be issued for the same premises
within one (1) calendar year.
Kirk Corson, Planning Commission, said that this is being
dealt with at the City Council meeting tonight. The City
Council had directed the Planning Commission to review their
present Ordinance and make recommendations (as above). He is
not certain what action will be taken tonight, however.
St. Francis - Sharon Fulkerson (753-2630):
Temporary signs ... which are erected or displayed
for a limited period of time but no longer than 10
calendar days.
St. Francis has no fee structure for their signs
and, further, they do not consider the "reader
board" type of sign about which we are speaking as
a temporary sign (prdinance was recently amended
to make that change).
o
Ham Lake (434-9555):
They only regulate permanent signs and then oply
as it pertains to the placement thereof - that
.
o
o
o
Page Three
Temporaxy S:t.9ns.
21 January 1986
they do not block visually intersections, etc.
. They also have no fees.
Blaine - Kathryn (784-6700):
The person to whom I was to speak was away from
the office but I do understand that they are in
the process of changing their Ordinance to be
more restrictive.
This is prepared for your information only.
be useful to have at your disposal what the
communities are doing in this regard.
It should be noted that the Downtown Center has removed one
of their signs, however, the remainder of the businesses
have not.
elm
dlArc~sell
I felt it may
surrounding
P. S.
Blaine called after I had finished the above and
advised as follows:
Temporary sign is any portable sign, stringers,
banners, balloons, etc. that exceed what is allowed
with a free-standing or wall sign.
You are allowed to display any combination of the above
for 8 weeks during the year. Blaine issues a maximum
of 4 permits per year (each for 2 weeks in duration).
At the present time they have nO size limitation but
their Ordinance change proposes that that be changed
to 60 square feet.
Their fee is $15.00 per permit (for a 2 week period.)
d'A
o
, -,...
; ,
o
ADDENDUM 112
O'
.9Lb-/~
CITY OF ANOKA
o
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 36 OF THE CODE OF TIlE CITY OF ANOKA
TIlE COUNCIL OF THE CITY OF ANOKA ORDAINS:
SECTION 1. Section 36-81 (Definitions). is amended by adding the
following:
Portable Sign. A sign not permanently affixed to the ground, a
building, or other structure. which may be moved from place to place.
Temporary Sign. A non-permanent sign erected, affixed, or maintained
on a premises for a short, usually fixed, period of time.
SECTION 2. Section 36-83 of the Code of the City of Anoka is
amended by adding the following:
(n) Portable swinger. "A" frames. and sandwich type attraction sign
boards are prohibited. It shall be unlawful for any person to continue
to display or erec t any portable swinger, "A" frame. or sandwich typ'e
sign board in the city except as provided in Section 36-83.1.
(0) Use of vehicle as sign. It shall be unlawful to use a vehicle
or a trailer as a sign in circumvention of the portable sign restriction.
Vehicles not moved in the course of business on a regular basis shall be
.deemed a sign when advertising is prominantly displayed.
SECTION 3. Section 36-83 of the Code of the City of Anoka is amended
by adding the following:
Section 36-83.1 Temporary Signs.
Temporary signs may be erected and maintained in the city only in
accordance with the provisions contained within this section.
(A) Permit Required. No person shall erect, construct, repair,
alter, or relocate within the city any temporary sign, except temporary
political. real estate, and other so identified signs, without first
obtaining a permit from the building official.
(B) Materials and Methods. The building official shall impose
as a condition of the issuance of a permit for temporary signs, such
requirements as to the material, manner of construction, and method of
erection of the sign as are reasonably necessary to assure the.health.
safety, welfare and convenience of the public.
o
~
o
o
. ..
o
(C) Illumination. Temporary signs may be illuminated.
(D) Sign Types. Temporary signs shall be limited to non-projecting
wall signs, attached ground signs, or portable and wheeled signs, as herein
defined.
(E) Shopping Centers. Temporary signs shall not be permitted in
shopping centers.
(F) Temporary Business Sign Installation.
(1)
a period not: to
(3) days of the
Timing. Temporary
exceed thirty (30)
termination of the
signs shall be erected and maintained for
days. and shall be removed within three
activity. service, product, or sale.
(2) Limit on number of permits. No more than two (2) permits
for temporary business signs shall be issued for the same premises within
one (1) calendar year.
(G) Temporary Business Signs. Temporary business signs identifying
a special, unique. or limited activity. service. product, or sale of limited
duration shall be subject to the following:
(1) Non-residential areas. In non-residential areas. a temporary
business sign shall not exceed thirty two (32) square feet in gross surface
area for each exposed face. nor exceed an aggregate gross surface area of
sixty four (64) square feet.
(2) Location. Temporary business signs shall be located only upon
the zoning lot upon which the unique, special, or limited aceivity, service,
product, or sale is to occur. Such signs may be located in the required
yard, but shall not extend over any lot line or within fifteen (15) feet of
any point of vehicular access from a zoning lot to a public roadway.
(3) Temporary business signs shall not project higher than fifteen
(15) feet as measured from base of sign or grade of the nearest adjacent
roadway. whichever is higher.
SECTION 4. This ordinance shall be effective 30 days after passage
and publication.
Lorraine Hostetler. Mayor
Jerry Dulgar. City Manager
Introduced:
o
Adopted:
Published:
Effective:
o
o 0
CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
AGENDA SECTION
NO. ff
Sta , etc.
DATE February 13, 1986
ORIGINATING DEPARTMENT
Fire Department
ITEM
NO.
Mutual Aid/Blaine
7.".1
BY:
Jim Schrantz
The City Council is requested to review the attached
agreements and approve an agreement with the City of Blaine.
The Fire Department is discussing an agreement with Oak Grove.
Bob will be at the meeting to discuss this item.
MOTION BY
TO
COUNCIL ACTION
SECOND BY
o
AGENDA SECTION
NQ Staff, etc.
ITEM DNR
NO.7. D . 2
o 0
CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE ",phrll-"ry
ORIGINATING DEPARTMENT
Fire Department
BY: Jim Schrantz
, Q
.
'ge(i
The City Council is requested to approve the cooperative
agreement with the DNR.
The DNR will pay for the equipment use.
Bob will be at the meeting to discuss this item.
MOTION BY
TO
COUNCIL ACTION
SECOND BY
o
C 0
CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE
F~hrl1~""'Y
1 Q
.
'geG
ITEM Fire Department
NO. 7b3
BY: Vicki Volk
AGENDA SECTION
NO. ff ..
Sta , Commlsslon,Comm.
ORIGINATING DEPARTMENT
Fire Department
Bob Palmer would like to discuss with Council the
possibility of having a part-time Fire Marshal
position where Ray Sowada would not need to ask
permission of his supervisor to take time to meet
with developers, the building inspector or other
persons during his regular working hours.
V
COUNCIL ACTION
MOTION BY
TO
SECOND BY
o
o 0
CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
DATE Febrn<'lry 1 R r 1 qR~
AGENDA SECTION ORIGINATING DEPARTMENT APPROVED FOR
NO. Approval of Minutes AGENDA
ITEM
NO. 9 Vicki Volk
BY: BY:
Council is requested to approve the following minutes:
January 21, 1986 - Regular Meeting - all Councilmen were
present.
January 28, 1986 - Special Meeting - Lachinski absent
February 4, 1986 - Regular Meeting - All Councilmen present
February 6, 1986 - Special Meeting - All Councilmen present
V
COUNCIL ACTION
C MOTION BY SECOND BY
TO
",.' .,~.....
o
CITY OF ANDOVER
REQUEST FOR COUNCIL ACTION
AGENDA SECTION
NO.
DATE
ORIGINATING DEPARTMENT
February 18, 1986
Clerk-Treasurer
APPROVED FOR
AGEN~
.1)
ITEM il
NO. tfANDdcJ/
BY:
Larry P. Johnson
.
.
It has come to my attention that Andover has been short one member on
the Quad Cities Cable Communications Commission since the resignation
of Patricia Lindquist.
In discussing the vacancy with Terry 0' Connell. the Commission's Administrator.
he indicated that it has been customary for member cities to have one city
council member and. one city staff person as the two members per member city.
Don Jacobson was appointed to the Commission when he was on the city council
and has continued since going off the city council. At this point Don is
the Chairman of the Commission.
The next meeting of the Commission is Thursday. February 20th.. and they are
hopeful that Andover's second representative will be appointed by then.
I suspect the council has several options; appoint a current council person.
appoint Jim or I or another staff person or appoint a citizen at large. It
may be advantageous to have a councilor staff person at the meetings so the
council can keep advised of cable activities and actions.
The meetings are the third Thursday at 5:.00 p.m. usually at the Anoka City Hall.
They appear from the minutes to last from one to two hours. I suspect there
may be some special meetings as well.
Since the copy of the by-laws I found in the file indicate that appointments
and appointments to fill vacancies are to be by council resolution. I have
attached a resolution leaving a blank for the name.
o
MOTION BY
TO
COUNCIL ACTION
SECOND BY
o
o
". .
..
STATE OF MINNESOTA
CITY OF ANDOVER
COUNTY OF ANOKA
NO.
A RESOLUTION APPOINTING A REPRESENTATIVE TO THE QUAD CITIES CABLE COMMUNICATIONS
COMMISSION REPLACING PATRICIA LINDQUIST WHO HAS RESIGNED
WHEREAS. the City of Andover is a member of the Quad Cities Cable
Communications Commission; and
WHEREAS. each member city is entitled to two voting members; and
WHEREAS. a vacancy has existed since the resignation of Patricia Lindquist;
NOW. THEREFORE. BE IT RESOLVED by the City Council of the City of
Andover that be appointed to the Quad Cities Cable
Communications Commission represeriting the City of Andover effective upon
passage of this resolution.
Adopted by the City Council of the City of Andover this
February. 1986.
day of
CITY OF ANDOVER
Jerry Windschitl - Mayor
ATTEST:
Larry P. Johnson - Clerk-Treasurer
,~
,
o
2000 r-l;~:: bank Piace VVr~s1
Ml1lneapohs
Minnesctc3 55402
T '_';~pl,{)n.,: ,:61 ~'i ::e~1-,J5!U
'j (:'fCi):,:;l 161 L",' :<<:. \Y>~C'
C;,;vwn L. Lc:>F~:VE',r('
Herbert P. Lefle
J. Dennis 0'8r It:n
.John E. Dr<'3VVl
David J. Kennedy
John B. Dean
Glenn E. Purdue
Richard J. Schieffer
Charles L. LeFevere
Herbert P. Lefler III
James J. Thomson, Jr.
Thomas R. Galt
Dayle Noian
Brian F. Rice
John G Kressel
Lorraine S. Clugg
James M. SirOrnrl,en
Ronald H. Batty
\\'illiam P. .Jordan
Susan Dickel Minsberg
Kurt J. Erickson
William R. Skallerud
RocJ!)ey D. /.:.,nc.krson
Cv rj"e A H0~n(.
John R. MeDo'-le.le, Jr.
o
Ld~',('n'
Lefler
K(,lIlledy
O'Brim &
Drawz.
-zjg/<gt.o
\ PIO!'''......jPll;d
.\"lui;lIi'lll
February 13, 1986
Mr. Jim Schrantz
City Engineer
City of Andover
1685 Crosstown Boulevard N.W.
P.O. Anoka, Minnesota 55303
Re: $7.7 Million - City of Andover Commercial
Development Revenue Note
(Andover Limited Partnership Project)
Dear Jim:
As you requested, I have reviewed the transcript for the
above bond issue in the light of the Partnership's delay
in the construction of the Project. In summary, the
City is at no financial risk because of the delay, and
although the City could theoretically find the Partner-
ship in default of its obligations and perhaps acceler-
ate the payment of the Note there would appear to be no
good reason to do so unless the City is convinced that
the Project will never be built.
The transaction is structured as a tax exempt mortgage
and the Note was purchased by First Bank Minneapolis.
The Note is secured by a mortgage on the Project, an
assignment of rents, and the personal guarantees of
Boisclair and Rademacher, the partners of the limited
partnership. Under the documents the partnership
undertook to complete Phase I and Phase II by December
31, 1985, but that date has obviously been extended by
the Bank as permitted by the documents. The size of the
Project was, as you recall, reduced with the permission
of the City Council by an amendment to the Disbursing
Agreement in June 1984. Finally, the partnership
certified for tax purposes that all of the proceeds of
the Note would be expended by December 31, 1985, which
obviously has not occurred. Thus, the investment yield
on the funds must be restricted so as not to exceed the
rate on the Note. Again, I assume that this is being
done.
f
.
o
.0
, .
Mr. Jim Schrantz
February ]3, 1~S6
Page 2
I think that we mustass\lme that the Project \-Jill go
forward. The Bank apparently is of that opinion since
it has not called the Note as it is entitled to do under
the documents.
The delay does raise, I suppose, a question in the mind
of the City Councilmembers abo\lt the advisabi] i ty of
entering into any further transactions with the partners
or Boisclair Corporation until the Council has some
assurance that the shopping center project. will be
built. I would think that discussions about the
proposed tax increment financing project would be
structured to resolve any questions the City has about
the project financed by the Commercial Development
Revenue Note.
y~y,
David J. Kennedy
D,TK: caw
cc: William Hawkins
o
o
MEMORANDUM
TO:
COPIES TO:
FROM:
DATE:
REFERENCE:
CITY of ANDOVER
Mayor and City Council
Jim Schrantz
Larry P. Johnson
February 12. 1986
Audit payments
In response to your concern noted in the minutes of the January 7. 1986
meeting. I checked our records to see whether we had been billed for any
special audits. revenue sharing in particular. since 1982.
In August of 1983 we received and paid an invoice in the amount of $650 for
an audit of revenue sharing funds at the end of calendar year 1982. That is
the last time we have been billed for an audit of our revenue sharing fund.
The amounts paid to the George M. Hansen Company over the years continues to
rise:
1982 basic audit . $6.800
Revenue sharing 650
$7.450
1983 basic audit $7.200
1984 basic audit $7.500
1985 basic audit $7.900 (proposed)
rev. sharing . 700 (proposed)
new audit guide 800 (proposed)
$9.400
There is no indication that we have been double billed for any audits.
./
......~ .L~J....~g04;; QC:~ t..~.lQ'- "",,"...a.;. b'-.....J -.......~........J>-..,........."""_ ...\,.1 .........--
. -t~~f~ .~--~~,-__~_._---- __,__ -_.
~,/l John M. Hartinger
tIt District 50A
Anoka County
Committees:
Governmental Operations
General Legislation and Veterans Affairs
Environment and Natural Resources
Crime and Family Law
Chairman, Criminal.Justice Subcommittee
,,~....-.:':~~-- .---j
o
. -------~Minnesota--------.,-
House of
Representatives
Legislative Commission to Review
Administrative Rules
February 5,. 1986
Patricia Lindquist
Acting Administrator/Clerk-Treasurer
City of Andover
1685 Crosstown Blvd. NW
Andover, MN 55303
Dear Ms. Lindquist:
It was recently announced that our governor, Rudy Perpich,
has underestimated state revenue collections by $734 million.
To make up for his error, Governor Perpich has proposed cutting
state aid payments to our local units of government.
Your city's finances would be seriously impaired if the
governor's plans are adopted. Not only would you see your local-
government-aid payments reduced, but homestead credits as well.
Governor Perpich is leaving locally-elected officials such as
yourself with little choice but to raise local real estate taxes.
That may solve the state's fiscal dilemma, but it does so by
transferring the problem to you at the local level.
My colleagues and I ln the IR House majority intend to fight
to protect our cities from bearing the burden of the state's
fiscal mismanagement. Your assistance is necessary if we are
to persuade the governor and Senate liberals that cities should
be spared from cuts. Please take a few minutes to call or write
the governor and our local senator, and ask them to support the
efforts of House Independent-Republicans to balance the state
budget by cutting areas other than local-government aid.
We're going to fight to try and
budget problem without impairing the
- ~b-serve the citizens of our area.
come through this current
ability of local governments
0413 S1ate Office Building. St. Paul. Minnf>sota 5~ S
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Hartinger
e Representative
o
1'iW.{ ~l
Office: (61?) 796-5369
o 12428 Tamarack 51.. Coon Rapids. Minnesota 55433
Home: (612) 757-4802
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