HomeMy WebLinkAbout10-25-1961• Record of Official Proceedings of the Comnion 'Council
of the .City of Rochester, Minn.; October •25,, -1961
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Minutes of -a special meeting of the Common Council of the City of Rochester, Minnesota
held in the Council Chambers, in the City Hall, in said City on October 25, 1961.
President Tingley called the meeting to order at 7:30 o'clock P. M., the following
members being present: President Tingley, Aldermen DeVries, Leonard, Wilkus, Wilson.
Absent: Morris and Stadler..
The call of the special meeting was read and President Tingley ordered the same
placed on-file,.the said meeting having been called for the purpose of (1) discussing and
setting the budget and (2) discussing and taking possible action on the proposed parking ramp
and any other business the said Common Council may deem proper.
The resolution levying -taxes for the 1962-1963 budget was again presented and upon
motion by Wilson, second by DeVries,the same was tabled until a future date -when a full
Council could be present. Upon roll call all present voted in favor thereof.
The following recommendation of the Parking Ramp Committee was read:
"To the Honorable Mayor and
Members of the Common Coujncil
City of Rochester, Minnesota.
Gentlemen:
We the undersigned recommend that the City of Rochester enter into agreement
with the Rochester Central Area Improvement Association providing for construction
and operation of a parking ramp as outlined,in the attached papers. The details
concerning leasing of the railraod property after the structure reverts to the
city, the timing of the transfer of operation and construction, and similar
unresolved matters are to be worked out through joint agreement between the Common
Council and a committee of the RCAIA.
It is our belief that the apparent loss of $6,000 in the annual money flow to
the city during the first five years under this proposal will be more than offset
by several advantages, including the following:
1. The relegation of off-street parking to interested and responsible private
enterprise declares that it•is'not the Rochester taxpayer who is responsible for
providing -a parking place for the downtown shopper or employee.
2. The city will have no future pommittment to provide whatever additional
off=street parking becomes necessary, either in fact or in the opinion of adjacent
businesses.
3. Future additional parking needs will very likely be mat as they arise,
either through the RCAIA Corporation or through other private enterprise ventures.
Experience elsewhere_has shown that public construction of ramps is highly
susceptible to delay and controversy•ove'r*ne'ed,•location, design, etc.
4. The heart of downtown Rochester will prosper from ramp construction, thereby
ensuring the tax flow from these valuable properties, and further, helping to ensure
the healthy and orderly growth•of the city.
5. Parking meter income of about $98,000 annually can be used for street
improvement and other necessary traffic projects, rather than being committed to
retirement of bonds which would be necessary were the city itself to conttruct
a parking ramp.
6. The proposal that the ramp be a private venture does not require that
the Rochester taxpayer be niade'to provide risk capital for the project; the city's
monetary return is guaranteed'.'
7. The ultimate t'rdnsfe'r of title of the ramp structure to the city permits
us to acquire a $750,000 building at the "cost" of an estimated $75,000 of total
potential revenue "loss".
8. Our interpretation of the articles of incorporation of the firm which
will direct •this venture•indicates•that any profits from the operation,- apart from
a return to the initial investors of their investment, will be used solely for
downtown improvement projects which• will• bye of community benefit.
/s PARKING RAMP COMMITTEE
/s Lawrence B. Stadler
/s Harold J. DeVries
/s D: A. Leonard
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Record of Official Proceedings of the Common Council
of the City of. Rochester,- Minn., October 25, 1961
05WALD PIJ BLI6 HIND CC., NEW ULMMINN A352EI
A motion was made by Leonard, second by DeVries, that the above recommendation be approved.
(a 10 minute recess was declared and the Council adjourned to the committee room). .The meeting
was again resumed and the subject was open for discussion.
R.V. Ehrick, City Attorney, then gave the following report. He said there was no
question but what_a ramp is needed as far as the. City is concerned. The city's own experience
in parking, the report of Ladislas, Segoe & Associates and independent surveys indicate the need
for a ramp. The question is how can.this ramp best be constructed, whether it would be better
for the City to provide this ramp or enter into an arrangement with a private group. He said to
his knowledge there.has been no,real factual analysis to this question to date and this really
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essential to a decision. He said public parking has been recognized as a governmental function
by Legislature since 1919. Amendments to the law in 1947,.1953 and 1955 have greatly expanded
the authority in this respect. The City has been the only one providing downtown public parking
and this has been done upon the request of groups gepresenting downtown retial merchants. Until
recently these facilities were not what could be considered as profitable to the city. Now the .
facilities are beginning to provide a substantial return to the city which has been added to the
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general fund. The proceeds from Lots 1 and 3 for 1959 were approximately $38,500.00 and for 1960
approximately $44,500.00. He said the City has the authority to erect this ramp. The estimated
returns and the power to pledge parking meter receipts will present a very attractive revenue
bond to investors and -the bonds could probably be sold at 4% or less. He said there seems to be
some misconception about revenue bonds and the pledging of receipts. Revenues after deduction
of direct operating expenses and costs are pledged only to the extent of the current payment .due
and a reserve to be built up as specified in the bond. This reserve is usually for an additional
annual payment. Over'and above this the revenues are available for general city purposes. Using
estimates of the group proposing to erect this ramp, the following would be the picture if the
City erected and operated the ramp.
Cost of Ramp . ... . •. . . . . . . . . . . $7502000.00
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Amount' -to be borrowed (could be less
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if the City used the funds now available
in the Parking Meter Fund) . . . . . . . . $7502000.00
Estimated receipts based on the rate of 15G per hour
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with $1.00 maximum parking charge . . . . . $156,030.00
Less expenses:
Annutal installment to retire $750,000 '
in 20 years at 4% . . . 55,192.00
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Rent to Chicago G. W. Ry. Co. 5,000.00
Operating expense and repairs. . . . . 35,000.00 95,192.00
Net return to City $612438.00
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The alternative proposal submitted by the Downtown Retail Merchants was:
Payment to City in taxes . . . . . . . 9,400.00
Payment in lieu of taxes . . . . 6,301.00
Rental payment . . . . . . . . 14,300.00 30,001.00
Annual loss to the City.
if estimates are correct $31,437.00
Over a 20 year period the loss would be # 31,437.00 x 20 = $628,740.00. Over a 25 year period
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the loss would be $31,437.00 x 25 = $785,925.00
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Saving of Debt Servicd for
5 years or $55,192 x 5 = 275,960.00
Total $1,061,885.00. He said actually the loss is even greater since
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• Record of Official Proceedings of the Common "Council
of the City of. Rochester,- .Minn.,- October 25, 1961
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the taxes do not benefit the City as indicated. The net return from Lots 1 and 3 have been
put into the General Fund and Park Improvement Fund. The General Fund levy is at the limit of
16 mills, so it could only be increased by $1888.80 (the estimated taxes to be paid on the ramp
and land is $28,539.00 and the mill levy for 1960 was $241.75 which would give the tax dollars
from the ramp per mill at $118.05 and $118.05 x 16 = $1883 80). He further stated that the City
over a period of years had invested approximately $300,000.00 in the facilities for Lots 1 and 2.1
This sum was invested by the City at the request of private groups interested in downtown
parking, that every recommendation made to the Common Council in the past few years have been
accepted and carried out, with the exception of the request to convert part,of the water dept.
property to free public parking. No request wasever made to the City to construct a ramp. The
case for private enterprise is weakened by the fact that this investment was made primarily at
the request of private downtown groups. If it is wrong for
`the City to be in public parking at
the present time it was wrong in years past when all of the facilities were being purchased and
acquired by the City.
Mr. Leonard Ekstrand stated that they had been thinking on the theory that this is
business best done by the business community. He said it had been proved that parking has best
been solved to the betterment of the City by the business community and cited Minneapolis as an
example. Nir. John Chisholm also spoke, he said they had been working on this for the past 12
years and had a spent a lot of time and money on this, he again outlined how they would finance
it and said no profit would be made by an} individual. He said he thought the time had come
when the Common Council had to decide ifothey were going into full time venture at the tax payers
expense or are they going to let this committee go ahead. He said if.the Council voted tongight
to let them go ahead, they would start tomorrow morning soliciting for funds, he also predicted
that'if the City built the ramp it would not be built in five years.
After further discussion, a motion was made by Leonard that the original motion V that
the recommendation be approved) be amended with the modification that the financial area include
that 122% of gross rent or $10,000.00, whichever is greater, be granted from the onset of the
arrangments rather than at the end of 5 years.
all present voted in favor thereof.
Wilkus seconded the motion and upon roll call,
President Tingley then called for a vote on the original motion, as amended, and upon
roll call and all present voting in favor thereof, Presid8nt Tingley -declared the motion carried.
A motion was then made by Leonard, second by Wilson, that the Council consider
business other than the call. Upon roll call all present voted in favor thereof.
A petition signed by William F. and Bernice E. Schultz to have the property at
1004 -15th Avenue Southeast changed from a residential to a commercial district was read and upon
motion by Wilkus, second by Wilson, the petition was referred to the Planning & Zoning Commission.
All present voted in favor thereof.
The following resolution adopted by the Public Utility Board was read and upon motion
by DeVries, second by Wilson, and all present voting in favor, the resolution was'approved.
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464 Record of Official Proceedings of the Common Council
of .the City -of Rochester, Minn., October 25, 1961 •
CSWAL PPUBLISHINO CC., NEW ULM, MINN' A3528
"Be it and -it is -hereby resolved by the Public Utility Board of the City of
Rochester, Minnesota that the Common Council of the said City be and is hereby
requested to authorize the said Board to enter into a contract with H. R.
NICHOLS COMPANY of St. Paul, Minnesota for
THE -FURNISHING OF ALL EQUIPMENT, MACHINERY, MATERIALS, SKILL, -
TOOLS AND LABOR REQUIRED TO COMPLETELY FURNISH AND INSTALL
' POWER PLANT PIPING -AND TO FURNISH -AND INSTALL THE SAID PIPING,
AND PLACE SAME IN COMMERCIAL OPERATION:
said H. R. Nichols Company'being the lowest responsible bidder with a base bid
of $256,200.00 less the following deductions for the substitution of alternate
equipment from that in the base bid - - -
1. For the substitution of low pressure valves of Powell
manufacture No. 1793 cast iron valves in lieu of Crane
Company No. 6465X - - - deduct sum of 2,000.00
2. For the substitution of Mercer Rubber Expansion
Joints instead of Goodall in base bid -deduct sum of 175.00
3. For the substitution of Panellit Turbine Panelboard
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instead of Republic in base bid - deduct sum of 5,000.00
4. For the substitution of Panellit Turbine Gauge Board
instead of Republic in base bid - deduct sum of 435.00
5. For the substitution of Worthington Circulating Water
Booster Pumps, Evaporator Makeup Pump, Air Heater Wash
Pump, Heater Drain Pump and Bearing Cooling Water Pumps
instead of those specified in base bid, deduct sum of 450.00
6. For the substitution of a American BEARING COOLING
Water Temperature Control Valve instead of one of
Powers manufacture in base bid - deduct sum of 100.00
resulting in a total contract price of TWO HUNDRED FORTY EIGHT THOUSAND AND
FORTY DOLLARS ($248,040.00)."
The following resolutions were each introduced and read, and upon motion made and
seconded and all present voting in favor thereof, President Tingley declared the said resolutions
duly passed and adopted:
Resolution authorizing the Public Utility Board to enter into contract with H. R.
Nichols Company of St. Paul. Upon motiOn'by DeVries, second by Wilson, resolution adopted.
Resolution appropriating $59.85 from the Lighting Fund and $315.95 from the Mayo Civic
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Auditorium Fund and ordering payment made to City of Rochester, Public Utilities. Upon motion by
Leonard, second by Wilson, resolution adopted.
Resolution appropriating $14,636.42 from the P.I.R. Fund and ordering payment made to
Leon Joyce, Inc. Upon motion by Wilson, second by Leonard, resolution adopted.
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Resolution appropriating $1,031.43 from the P.I.R. Fund and ordering payment made to '(
E. C. Bather & Associates. Upon motion by Leonard, second by Wilson, resolution adopted. f
Resolution appropriating $7,349.90 from the General Fund and ordering payment made to
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Mobil Oil Company $1,231.20; 0. M. Ousdigian $30,000.00; Leiizen Concrete Products $223.00 and.
Rochester Sand & Gravel $990.65. Upon motion by Wilson, second by Wilkus, resolution adopted.
Resolution appropriating $7,349.00 from the General Fund and ordering payment made to
Northwest Refining Company $5,215.44; Lyon Chemical Company $601.58; Quality Printers $836.88 and
Mayo Clinic $656.00. Upon motion by Wilson, second by Wilkus, resolution adopted.
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Resolution appropriating $1,550.39 from the Street & Alley Fund; $447.18 from the Fire
Protection Fund, $298.58 from the Sewer Fund and $326.33 from the Lighting Fund and ordering
payment made to City of Rochester, Public Utilities $326.33;� National Chemsearch $298.58;
Nelson Tire & Appliance $447.18 and Herbert Knopp Agency $1,550--39- Upon motion by Wilson,
second by Leonard, resolution adopted.
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Resolution appropriating $1,157.10 from the Parking Meter Fund, $1,378.32 from the Il�
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• Record 'of Official Proceedings of the Common Council
of the City of Rochester,. Minn., October 25, 1961
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Police Protection Fund and $328.19 from the Mayo Civic Auditorium Fund and ordering payment made
to General Electric $1,157.10; Gopher Stamp & Die Company $3L3.25; H & H Electric Company,
$1,065.07 and A. G. Scheidel. $328.19. Upon motion by Leonard, second by Wilson, resolution adopt
Resolution appropriating $331..97 from the General Fund; $1,596.76 from the S & A Fund
$199.07 from the Fire Protection.Fund; $1,074..93.from the P.I.R. Fund; $98.03 from the Sewer Fund;
$146.50 from the Brmdge Fund; $130.4 8 from the Park Improvement Fund; $476.93 from the Lighting
Fund; $1,128.36 from the Police Protection Fund and $33.81 from the Parking Meter Fund and orderin
payment made to Doyle Conner Company $369.14; City of Rochester, General Fund $2,477.76; Agneberg
Sakstone $1,221.43; City of Rochester, P. U. $580.41 and N. 1-7. Bell Telephone Co.. $541.10.. Upon
motion by Leonard,, second by Wilson, resolution adopted.
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Resolution appropriating $334.50 from the General Fund and ordering payment made to
K. M. McGhie. Upon motion by Leonard, second by DeVries, resolution adopted.
The following claims were each read and upon motion by Wilson, second by Leonard, the
same were approved and -the Mayor and City Clerk were authorized and directed to draw warrants upon
the City Treasurer< and make payments accordingly:
From the General Fund: Whiting Printers $155.80; Harolds Auto Electric $13.95;
Schmidt Printing Co. $130.70; Reeves Drug Store $.84; H & W Motor Company $13.02; Louis Bennett;
$166.50; Cooperative Oil Co. $137.92; Rochester Airport $21.33; The Bobbs Merril Co. $20.00;
Francis McGovern Agency $88.50; Naegele Sign Company $58.65; Albinson $19.86; Allen & Delaney,
$50.00; Rochester Personnel Assn. $5.00; Marie Bolten $49.50; Simples Time RecorderµY$30.25;
Gopher Welding Supply $25.50; Fay Yennie $100.00; Ace Hardware $11.08; Cities Service Oil Company
$33.55; Witte Transportation $6.00; Woodhouse Bros. $14.00; LeRoy Hennum $15.25; Monte's-$61.59.
From the Street & Alley Fund: Phillippi Equipment Co. $67.30; Fire & Safety $27.10;
Mobil Oil Company $99.82; Nietz Electric $15.00; Stephen B. Woodward $130.71; L. N. Sickels Co.
$183.75; Thiem Signs $9.00; National Welding Supply $21.57; Consolidated Steel $36.67; Arthur
Anderson $88.00; Littrup Nielson $9.25; National Bushing,& Parts $14.33; Rochester Materials,
$12.00; Peoples -Natural Gas $180.27; Dodge Lumber $5.60; Gopher Welding $21.97; General Trading
$134.95; E. T. Watkins Electric $1.49; Fay Yennie $19.20; Ace Hardware $19.59; Cities Service Oil
$74.76; Witte Transportation $16.39;-Anderson Radiator $32.19; Parkhill Bros. $20.74; Scharf Auto
.Supply $165.19; National Bushing & Parts $10.90; Monte's $4.88.
From the Fire Protection Fund: Fire & Safety $3.00; Bachs Music $4.00; B & B Auto
.Body $116.80; Pruetts of Rochester $22.47; Linda Supply $56.60; Mine Safety Appliance $189.60;
National Fire Protection $60.25; Big Four Oil Company $62.55; Peoples Natural Gas $9.00; General
Trading $32.11; Anderson Radiator $.65; Parkhill Bros. $4.38; Hentges Glass $25.00; Scharf Auto
Supply $28.70; Woodhouse Bros. $15.55; LeRoy Hennum $.50;
From the Police Protection Fund: Charles Campbell $60.00; Gerald Kingsley $23.63;
Olmsted County Business Mens Ass. $5..00; Guy Barnes $11.35; Fire & Safety $14.95; Kee Lox Mfg.
$9.38; LeRoy Hennum $13.60; National Bushing $41.78; Walker Hardware $3.35; Monte's $42.74.
From the Sewer Fund: S. M. Supply $19.80; Peoples Natural Gas $75.76; McKesson.&
Robbins $114.55; Welborn Welding $152.60; Dodge Lumber Co. $24.09; Michel Sales Company $138.40;
46 6 Record of Official Proceedings of the Common Council
of the City of Rochester, Minn., October 25, ,1961 •
❑SWALD PUBLISHING CD., NEW ULM, MIN- A3528
Red Wring Sewer Pipe Corp. $176.34; Reeves Drug Store $10.80; Atlas Paper Company $37.35; Arnolds
Supply $11.11; Peoples Natural Gas $9.68; Dodge Lumber Co. $40.00; Gopher Welding Supply $6.32;
General Trading $28..96; E. T. Watkins,Electric $6.76; Ace Hardware $39.07; Hentges Glass $1.50; j
Woodruff Bros. $8.24; Walker Hardware $8.02; Monte's $2.00;
From the Music Fund: Door Thomas $24.OG. !
From the Parking Meter Fund: Alpek Sheet Metal $9.15; Bergstedt Paint $30.76;
Minnesota Minining & Mfg. Company $51.75; Woodruff Company $40.85;
From the Park Improvement Fund: Peoples Natural Gas $31.12; City of Rochester, General
Fund $104..7'6.; N'. W. Bell Telephone Co.. $.77.46; I •
Upon motion by Wilson, second by Leonard, the meeting was adjourned.:
Cit Clerk
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