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HomeMy WebLinkAbout2009 [02] Feb 05February 5, 2009 Page 1 of 9 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, February 5, 2009 at 7:00 PM in the St. Joseph City Hall. Members Present: Mayor AI Rassier, Councilors Renee Symanietz, Dale Wick, Bob Loso and Steve Frank, City Administrator Judy Weyrens City Representatives Present: City Engineer Randy Sabart, Finance Director Lori Bartlett, Police Chief Pete Jansky, Public Works Director Terry Thene Others Present: Katherine Kraft Public Comments: No one present wished to speak. Approval of the Agenda: Symanietz made a motion to approve the agenda with the following changes: Move 4d proposed Park Board Budget -pull for discussion (after item 6) Move 7 Representative Larry Hosch - (after Council Reports) The motion was seconded by Wick and passed unanimously. Consent Agenda: Frank made a motion to approve the consent agenda as follows with minor changes made to the minutes: a. Minutes -Approve the Council minutes of January 15, 2009(b). b. Bills Payable -Approve check numbers 041216-041283 and EFT numbers 000227- 000239. c. Quarterly Finance Position -Accept the 4th quarter 2008 Financial Reports. d. Pulled for discussion. The motion was seconded by Wick and passed unanimously. Minutes: Symanietz made a motion to approve the minutes of January 15, 2009(a). The motion was seconded by Wick and passed unanimously. Public Hearing -Final Assessment Roll -Liberty Pointe: Weyrens presented the Council with an assessment roll to collect outstanding invoices for the housing development entitled Liberty Pointe. Liberty Pointe was publically financed and the assessments were secured with a letter of credit. While the letter of credit that was presented was through Lakeland Financial, the security was actually through the First Bank of Scotland. The First Bank of Scotland was under collateralized so sufficient funds are not available for collection. In addition, Lakeland Financial is in the process of receivership and cannot assume the debt. In reviewing the bond issue, the City has eight (8) lots with outstanding assessments, as the rest have been paid. However, in addition to the assessments, the City has incurred costs for consumable services such as legal, engineering and staff time. The total outstanding fees are $ 11,932,48 and at this time the property owners have been noticed of a final assessment to collect this debt. Therefore, a public hearing has been scheduled. Mayor Rassier opened the Public Hearing an reaffirmed that the purpose of the hearing is to consider and adopt a final assessment roll for fees incurred for the Liberty Pointe Addition. Weyrens stated that assessment will be due and payable with one installment. She also clarified that the final assessment is only for City services and any delinquency fees that are due and payable are calculated and collected by Stearns County. To date the developer has paid over $ 70,000 in delinquent fees. As no one present wished to speak, the public hearing was closed at 7:10 PM February 5, 2009 Page 2 of 9 Frank questioned whether $11,000 is too light and whether or not staff time was included in that amount. Weyrens stated that staff time was built in to the total. Wick questioned any additional fees that may be incurred for the project and how those can be recouped. Weyrens stated that another assessment hearing can be conducted if necessary; however, the total cost includes those costs up to date. Frank made a motion to adopt the final assessment roll, authorizing the Mayor and Administrator to execute Resolution 2009-003. The motion was seconded by Symanietz and passed unanimously. 4(d) Proposed Park Board Budget: Weyrens stated that the St. Joseph Park Board has submitted the 2009 Budget for Council approval. The budget does not authorize any spending, but provides the Council with information on their goals for 2009. Frank stated that the Park Board does a super job and they hardly spent any money last year as they were waiting to purchase equipment pending the park plan. In his opinion, the expenditures seem okay; however, he is curious as to whether or not there are any policy implications for tapping into the sales tax funds. It was stated that the Sales Tax Committee has not yet made any recommendations for what to do with the sales tax funds, but this would be a legitimate use of the funds. Frank stated that the City has not yet finalized its building plans and tapping into those funds now would lessen what can be used for other things. Weyrens stated that the Park Board if not asking for approval for any specific project or the use of sales tax funds. The proposed Capital Improvement Plan states that they plan to ask the Sales Tax Committee for some funds and that would come back to the Council at a later date for approval. The proposed improvements for Centennial Park will need Council approval at a later date when the plans are complete. The Sales Tax Committee will need to determine what would be a good use of the sales tax funds. Wick stated that if the Capital Improvement Plan is approved, the Park Board can spend up to $3,000 without Council approval. Symanietz stated that they are going to propose to the Sales Tax Committee that some of the sales tax funds be used for Parks and Trails as residents voted for Parks and Trails as a valid use of the funds. Rassier questioned whether the funds should be spent already as the City is still in the planning stages. Weyrens questioned Symanietz as to whether or not they are asking for approval for the $7,500 at Northland Park. Bartlett stated that they are not asking for approval for Northland Park as Symanietz is still getting pricing. Frank made a motion to accept the 2009 Park Board Budget as presented. The motion was seconded by Wick and passed unanimously. FINANCIAL MATTERS 2008/2009 LGA Impacts: Weyrens stated that she is asking the Council to begin a general discussion regarding the impacts of the 2008/2009 LGA cuts. The City received a reduction in LGA in 2008 of approximately $ 104,000. Staff is proposing to absorb this loss through a reduction in the Capital Improvement Plan. While the final 2008 budget numbers are not yet available, it appears as the City had a decrease in revenues with the biggest reduction in Building Permit Fes. The expenditures for 2008 however, were consistent with the adopted budget. Had the City received the anticipated revenues, the budget would have illustrated a surplus. Based on unaudited numbers, it appears as the city will have 2 %2 to 3 months of reserves at the end of the year, similar to that of 2007. Weyrens stated that staff is in the process of putting back into the General Fund the budget allotment Capital Expenditures. The budget for CIP in 2008 was approximately 180,000. With regard to 2009, it is uncertain as to the actual LGA loss, but the Governor's proposal anticipates the City losing approximately $ 135,000. This too can be accounted for through the CIP budget funds as the budget for 2009 included $ 180,000 for capital. The larger impact is the anticipated 2010 and the City needs to plan for that large reduction. Weyrens reminded the Council that implementing a wage freeze for 2009 allows the budget to be reduced by over $ 30,000. February 5, 2009 Page 3 of 9 By removing the CIP and the wages, $200,000 can be removed from the budget allowing the City to absorb the $135,000 loss to LGA if that's what it ends up being. She stated that it is projected that the City will lose $300,000 in 2010 and the City will need to find a way to sustain after that. Loso questioned Weyrens as to whether or not the City has any hard numbers at this time to which Weyrens stated that those numbers are all in the governor's proposal. Weyrens asked that the Bills Payable include a list of the memberships that are to be paid out and their purpose. Frank suggested that the Council look at the small numbers as well as the large numbers. For example, there were several memberships for the Fire Department. Weyrens stated that, on a Council level, the 2008 dues paid were $18,963. She presented the Council with a breakdown of the dues associated with the associations that the Council belongs to. • Coalition of Greater MN Cities $7,313 • St. Cloud APO $6,270 • Women in government $25 • St. Cloud Chamber $515 • League of Minnesota Cities $4,815 • Stearns Municipal League $25 • St. Cloud Economic Development Partnership $8,000 Rassier questioned whether or not the agenda has been set for the Workshop on the 10"'. The annual dues that the City pays to belong to these organizations is a lot of money and the Council needs to have a discussion to decide which of these are important organizations for the City to belong to and which aren't. Weyrens questioned whether the Councilors need to know what benefit they receive from being members of these different groups. Rassier stated that he feels that the League of Minnesota Cities is the only group that the City should belong to. The others give a benefit to the City, but if the City were to drop it, they could always rejoin. Weyrens suggested that the City act proactively by sending a letter to the various organizations letting them know that the City may not be able to renew its membership due to economic restraints unless the Council makes a decision to join that organization. She added that staff has no recommendations as this is a benefit that the City Council receives. Loso questioned when the membership dues are paid to the different organizations. Weyrens stated that they are all due at different times. The APO, for example, is paid in two installments and the City has already paid the first installment. The Coalition will be coming due any time. The Partnership has already been paid for 2009 and the League dues are paid in the fall. Frank stated that Mayor Kleis recently asked the Partnership and the APO to revamp their system to work with staff to decrease costs. Although it is not a lot of money, he stated that he may not accept the reimbursement that they receive for attending various meetings. They receive $35 for attending meetings which amounts to a couple of thousand of dollars each year. When TAC Committees are formed, there are other costs beyond the membership dues. Rassier stated that the City pays the Engineer to be a part of the APO Tac, so the City will continue to have someone there to represent the City. Sabart agreed; however, the City would lose all its voting rights and he would be there solely to observe. Frank questioned the need for the Executive Board and the Full Board as there has only been one time in which the Full Board overruled the Executive Board. He suggested the possibility of cutting the Full Board. Weyrens stated that she has been receiving calls again from the Boys and Girls Club regarding the summer recreation. In 2008, the costs associated with the summer recreation program doubled due to less participation. Only 38 residents participated in 2008. Frank addressed the possibility of joint programs for summer rec and animal control. Symanietz stated that if the City doesn't belong to the APO, there would be no one fighting for the City to receive any state or federal funds, if they were to become available. The Council asked Weyrens to provide a summary of the benefits received from the APO so far. Sabart stated that the City has received a significant amount of federal funds for the recent transportation studies that were done. Since the City has received Federal dollars for the Transportation studies, they would be kept in the radar to receive February 5, 2009 Page 4 of 9 more funds for those projects. Rassier stated that the next phase would be to complete the Feasibility Study and the layout for the project. If the City were to receive some federal funds, the City would still be responsible for a portion of the costs which are out of the City's price range. Rassier stated that it would be a good idea to send a letter to the various organizations that the City currently belongs and see what they can do to help foster us to keep us in. Investment Policy: The revised Investment Policy was presented to the Council for review and approval. The Policy clarifies that the investment committee is an oversight committee establishing the policies and making are recommendation to the City Council. Wick advised Weyrens of some minor changes to be made to the scope of the Policy. He clarified that the Administrator and Finance Director will be under the direction of the Investment Committee. Weyrens stated that once the Committee is formed, they will review the policy as well. Loso questioned the guidelines for members of the Investment Committee. Weyrens stated that there was an Investment Committee in the past and they should have a strong financial background. Frank questioned whether the City has been taking a conservative prudent approach to investments. Bartlett stated that the City is bound to that by State Statute and the City has been trying to be over conservative. Loso questioned the City's cash flow reserve which Weyrens stated is about 2'/z months worth at $467,000. Rassier questioned what the Auditor recommends. Bartlett stated that the State Auditor likes to see about three months which would be enough cash flow to get through without LGA and tax settlements that are received every six months. Loso questioned the City's rate of tax collection. Bartlett advised the Council that the City's delinquency rate went up this year. It is about 1-2% which gives the City a pretty good collection ratio. Weyrens added that the City is doing well considering the economy. According to Bartlett, other cities have more significant tax delinquencies. Wick made a motion to accept the revised Investment Policy. The motion was seconded by Symanietz. The motion passed unanimously. Capital Improvement Plan: Weyrens stated that staff is reworking the CIP and have recommended that some projects be cut because of the proposed LGA cuts. She stated that the CIP was completed during the budget process. These items were included in the budget to be supplemented through the budget process. Equipment and projects that cannot be completed will be removed. CITY ENGINEER REPORTS Federal Funding -Proposed Stimulus Package: Sabart provided the Council with an update regarding the status of the proposed Federal Economic Stimulus package. At a previous APO meeting, members were asked to submit improvement projects that could be completed in less than 90 days. Now, MnDOT is asking for larger projects. Originally, there were six projects and that has now been combined into three to make them look like larger projects. Sabart stated that the State completed the first round of solicitations for bridge projects and State Transportation Improvement Programs from 2010 -future. The second round of solicitations will begin on Tuesday and will include non state aid transportation improvement projects. The City's three projects would fall under that category. He received an email recently which stated that the current bill is "iffy for funding for Local street projects" which means the likelihood of these projects being successful has diminished. The deadline for submittal of the projects is Monday. If one of these projects is selected, the next step would be to do a project memorandum. Documentation showing little or no impact to ROW or the environment is required by State and Federal Agencies. Sabart stated that he will continue to supply the required information and update the Council as information is available. MAYOR REPORTS - No Report February 5, 2009 Page 5 of 9 FRANK COUNCIL REPORTS Sustainability Framework Plan: Frank stated that he recently attended a Joint District Planning Meeting where the main topic was Sustainability. The Joint Planning Board is in the process of soliciting proposals to facility the development of such a Plan. At some point Frank stated the City may be asked to contribute financially to the cost of hiring a consultant. APO Meetina: Frank reported that a representative from Representative Bachman's office was present and provided them with some figures relating to Obama's Stimulus package. He stated he had no idea where those numbers came from because he heard different numbers. Recycling Program: Frank stated that he has received his new recycling bin and he questioned where the chip is located. Weyrens stated that it is a black piece on back of the container. Weyrens advised residents that they will be distributing the new recycling bins through Saturday. 2 Hour Parking: Frank questioned the possibility of extending the 2 hour parking on W Minnesota to the West as there are more cars parked there for longer periods of time. Jansky reported that, so far, he has not received any requests. A majority of those cars are those attending the College who do not want to pay for a parking permit. The purpose of the 2 hour parking was to get more business to the downtown businesses. In his opinion, the extension of the 2 hour parking is not needed at this time. Council Workshop: Frank advised staff and the Council that he may need to come and go on Tuesday during the Council Workshop as another faculty member needed some time off and he may need to fill in for him. LOSO Fire Board Meeting: Loso reported that he attended the recent Fire Board meeting at which they approved the following: • They approved the purchase of 5 pagers and requested the Fire Chief prepare a replacement schedule for all the pagers in the department. • Two members were approved to attend a Fire Conference in Brainerd. • The generator at the Fire Hall will now have a preventive maintenance (PM) check done on their generator twice a year. WICK Partnership -Executive Committee: Wick stated that at a recent Partnership Committee meeting the budget and membership was discussed. The information discussed at this meeting will be presented to the full board at their next meeting. SYMANITZ Park Board: Symanietz reported that the Park Board has been working on its 2009 budget and they have been doing some cutting and planning. She added that the equipment that they have will be put in Northland Park and will be suitable for children ages 5-12. She also reminded residents that the City is still taking applications for the Park Board. Joint Cities Meeting: Symanietz stated that she attended the Joint Cities Meeting at which there were some representatives present from the "Yellow Ribbon Committee" who help families of service men and women who are serving overseas with clothes and food. They would like to make our area a "Yellow Ribbon Community". February 5, 2009 Page 6 of 9 APO: Symanietz advised the Council that there are some APO members that will be headed to Washington to help fight for some stimulus money for our area. Representative Larry Hosch /Legislative Priorities: Hosch stated that it is good to be back in St. Joseph. He stated that he would be providing the Council with an update of what to expect in the upcoming months. He added that he wants to hear their concerns and discuss items such as LGA cuts and mandate relief and what that means for St. Joseph. He stated that the State's deficit of $4.8 billion is due to the economy and decreased revenues rather than increased spending similar to the deficit of 2003. In the last biennium, revenues were at $34 billion and they are forecasted to be at $31 billion showing a dollar for dollar decline. Hosch stated that the current $4.8 billion deficit will probably be $6-7 billion after the February forecast. He added that unemployment is showing a more pessimistic picture and he would not be surprised if it were closer to 20% of the state budget. To protect k-12 education, which is 40% of the State's budget, there would need to be 35% cuts in all other areas such as LGA, help to persons with disabilities, health care funding, and nursing home funding. This is not a pure budget; however, since the state sometimes does shifts and this year there will probably be $3 billion in shifts. With the tobacco revenue bonds, the governor is proposing to pay two years of bond indebtedness by issuing a new twenty year bond based on those revenues. This has been looked upon with a lot of skepticism. According to Hosch, everyone will receive LGA cuts and the proposed cut is at 25%. Hosch reported that there are some efforts for mandate relief. The Association of Minnesota Counties, the League of Minnesota Cities and the School Board Association have been working to allow mechanisms for flexibility to allow local government to opt out of certain mandates. He is hoping to allow an avenue for local boards/local government to choose what is best for them. Hosch stated that he is optimistic that the authorization for Administrative Fines will pass. Meetings have been held with all of the stakeholders including the Police Officer's Union, the Chiefs of Police, Sherrill Departments, Department of Public Safety, opponents and proponents. The general direction is to cap the administrative fines at what the state fine is and it would only be used for certain offenses. Rassier raised some concerns about Administrative Fines and stated that this is an avenue to be further investigated. There is some concern that Administrative fines do not go through the system and that would create less revenue at a State level. He questioned whether that would cause more of a budget deficit. Hosch stated that those States who issue both administrative fines and state fines, have experienced a higher revenue in fines, so it has not negatively impacted the State budget. He added that those who issue administrative fines need to add an accounting line in their budget to track such. There was some question as to whether or not the LGA formula will be reworked as areas such as St. Joseph, St. Cloud and Willmar have a considerable amount of tax exempt properties. Hosch hopes that the formula is reworked for those cities; however, this may not be the year in which that will happen. The goal is to minimize the winners. From a political standpoint, the time to do that is when there are more dollars available. Hosch stated that he is intrigued with the idea of the area Cities to implement a tax exempt credit program and will take that back for discussion. Weyrens questioned what will happen if cities cannot survive? Hosch replied that that is an issue that needs to be discussed. He stated that some cities have recently done some significant infrastructure improvements and used a forecasted building permit number to pay for the bonds. With the little building permit activity that has taken place, there is question whether they will be able to remain current on their bond payments. Hosch stated that those types of questions will be taking place with the tax committee. Loso questioned how Administrative Fines will be used for traffic. Hosch stated that they are looking to expand authorization to allow them to be used for traffic control. They may also be used for Ordinance violations. February 5, 2009 Page 7 of 9 Frank stated that "if he had his druthers, we never earmark funds for environmental and arts things". In his past experience in Michigan, he stated that the state was unable to pay its workers for three months. He looks at this as a bad thing. Frank stated that the state should look at taxing food and clothing. He then questioned whether or not we need to have neighborhood taxing districts for roads. Hosch stated that by allowing neighborhood taxing districts, it gives the City the authority to do something very reasonable and he feels that it is ridiculous for the state to prohibit such if the City feels it would serve the neighborhood the best. He also stated he would support giving authorization for cities to make that decision without legislative authority. Based on some previous comments made by Councilor Frank, Hosch stated that he fully supports the decision for a dedicated sales tax; however, he is against a separate revenue source for environmental funding. This is the first time that the State has budgeted by the constitution. Frank stated that it this is similar that what was done with lottery funds in the past. Hosch stated that the there has been some healthy debate about broadening the sales tax. Because of the current tax structure and the fact that we are a service economy, there are some peaks and valleys. There has been debate about expanding the tax base, but not increasing the tax rate. That would allow for tax stabilization. A working group has been appointed by the governor and they are recommending broadening of the sales tax. There is also talk of budgeting on a 4-year cycle rather than a 2-year cycle. Frank stated that the State should look at reducing the number of counties as there is no need for 80+ counties. Hosch stated that the Association of Minnesota Counties has fifteen centralized spots and they have proposed such. It does not make financial sense to have so many counties. Frank questioned the real impacts to the mandates. Wick stated that there are twenty one pages of mandates and some of those should be dealt with at more of a local level. Hosch stated that Representative Haws from St. Cloud is a member of that working group. Wick stated that the League memo should not be attached to the Resolution proposed by the area Cities. Weyrens questioned Hosch about the requirement for tiered water rates. Cities are required to charge commercial consumers at a higher rate then residential. Weyrens stated she contacted the DNR to discuss the conservation methodology adopted by the Council and was told that the rate would not meet the new requirements. Weyrens stated that she is not sure whether or not the current City rate structure meets the legislation or if it is interpretation of the DNR that is problematic. Hosch stated that the issues maybe be due to legislative interpretation by the DNR, but he will check into this matter. Symanietz questioned Mvest and whether there is any chance for Greater Minnesota to receive more funds. Hosch stated that there is not much of a political push to increase that proportion by rural legislators; however, there is a push to increase overall dollars to this region. He stated that he recently met with the APO and they are working on a minimum standard of 92% return of the dollar back to MN Dot districts. He stated that he will be pursuing this. These would be overall transportation dollars not just transit. Thene addressed the tiered rate system as well. He stated that, after working in the Cities for so many years, the City would not be allowed to advance the system without a tiered system being in place. The tiered water rate system is a tool that the DNR uses. Thene stated that other areas that the State can look at would be the requirements for septic systems. Hosch asked staff to provide specifics as many regulations are not state statute rather agency ruled and rules take the place of laws. He added that the State Legislatures are unaware of the issues until they hear about them. Janksy questioned the possible primary seatbelt law. Hosch advised Jansky that it already passed in the senate; however, he was unsure about the house as it failed previously in the house. Frank asked for Hosch to explain what is meant by "primary seatbelt". Currently, failure to wear a seatbelt is a secondary offense and drivers cannot be pulled over for that infraction. There are seven states that do not have the primary seatbelt law and states can lose federal aid if it is not passed. That could amount to millions of dollars and this was the last year that those states will be given grace from the federal government. Hosch stated that the House is made up of representatives with a deep libertarian bend and this is a hot February 5, 2009 Page 8 of 9 issue. He added that Minnesota has always been one of the last states to implement these types of regulations. Hosch concluded by telling the Councilors that if they have any questions, they can feel free to either call or email him. Resolutions supporting Cooperative/Collaborative Efforts: Weyrens presented the Council with a revised Joint Resolution of the Central MN Cities of St. Cloud, Sartell, Sauk Rapids, Waite Park, St. Joseph, St. Augusta and Rockville Advocating Support for Certain Legislative Issues and Proposals of Common Interest or Concern to the Central Minnesota Region. She added that the wording was poor regarding tax exempt properties. She spoke with Mike Williams and the intent was not to tax the non-exempt`pi-operties rather to ask them to give a voluntary payment to the City in lieu of taxes. This was a significant change. Weyrens added that the list of mandates was attached as a general concept to look at mandates. She questioned whether the Street Improvement District Authority is acceptable as well. Wick stated that he had some issues relating to item (13): "Green House Gas Reduction Initiatives". He stated that he does not disagree with all the items listed, but he felt that by supporting the Coalition, they are already supporting those items. Weyrens agreed and stated that those items were lifted from the Coalition and items (12) and (13) were added since they originally saw the document. Rassier stated that the list includes items that should be looked at, not that need to happen. Item (12) "Green Acres Legislation" covers the other. Rassier made a motion to accept the Joint Resolution of the Central MN Cities of St. Cloud, Sartell, Sauk Rapids, Waite Park, St. Joseph, St. Augusta and Rockville Advocating Support for Certain Legislative Issues and Proposals of Common Interest or Concern to the Central Minnesota Region with the deletion of (13): "Green House Gas Reduction Initiatives". The motion was seconded by Wick. Discussion: Loso questioned what is meant by the term "Brownfield properties". Weyrens explained that those properties are those industrial areas that are not yet developed or have contamination. It is just a term, rather than a specific property. Loso added that he has been watching the state legislature and their discussions regarding spending. In his opinion, we need to stop spending and find ways to cut back rather than decide how to spend more money. He sees this Resolution as a spending document. Rassier stated that the City would be spending money in the long run and these are some mutual concerns for the area. Frank gave the example of the St. Cloud Airport. There was funding set aside for a second terminal and then it was gone. Ayes: Rassier, Wick, Symanietz, Frank Nays: Loso Motion Carried 4:1:0 Weyrens stated that the purpose of the Resolution Supporting Cooperative/Collaborative Efforts is to ensure that Department Heads are meeting to look at cost cutting measures and to show that the City is serious about regional cooperation. The purpose is to endorse those Cooperative and Collaborative efforts. Frank made a motion to accept the Resolution Supporting Cooperative/Collaborative Efforts. The motion was seconded by Loso. Discussion: Frank stated that the issue of animal control was discussed at previous meetings and it is increasingly becoming a bigger item in all city budgets. While driving to St. Cloud, he noticed vans for Central MN Animal Control. He questioned Janksy about them. He was advised that St. Cloud stopped providing their own animal control as it was taking up too much of the officers' time and they have contracted with Central MN Animal Control, housed out of Sauk Rapids. Frank then addressed Summer Recreation and suggested the possibility of working with Waite Park and the St. Cloud School District. Wick noted some minor spelling/grammar changes in the document. February 5, 2009 Page 9 of 9 The motion passed unanimously. Personnel Policy: Weyrens stated that during union negotiations it was noted that the Personnel Policy had not been updated in over ten years and she stated that it needs to be looked at. Mayor Rassier and Councilor Wick were appointed to the Personnel Committee and they will be starting this process. Adiourn: Wick made a motion to adjourn at 8:45PM. The motion was seconded by Symanietz and passed unan' sly. ~~ ~.~%~y u We s Ad inistrator