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HomeMy WebLinkAboutDecember 15, 2003OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING DECEMBER 15, 2003 The following are the minutes for the regular meeting of the City Council held at 7:00 p.m. on Monday, December 15, 2003 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. Pastor Bob Lyndes, St. Timothy's Lutheran Church gave the Invocation. CALL TO ORDER/ROLL CALL Present: Mayor Wyckoff, Councilmember Williams, Councilmember Nawrocki, Councilmember Ericson, Councilmember Kelzenberg PLEDGE OF ALLEGIANCE - recited ADDITIONS/DELETIONS TO MEETING AGENDA Nawrocki stated the NEI loan item, which was officially tabled at the last meeting, shouM be on this agenda to table and be discussed in January. Wyckoff placed this under Items for Consideration ~8. Wyckoff added Executive Session, item ~15 to the Consent Agenda, and the reading of a proclamation. PROCLAMATIONS, PRESENTATIONS, RECOGNITIONS AND GUESTS - none Wyckoff stated that the City Employee o/the Year was announced at the employee holiday luncheon. Wyckoff read the information regarding the winning employee for 2003, Steve Leese, of Public Works'. CONSENT AGENDA 1) Approve City Council Meeting Minutes for November 24, 2003 regular City Council meeting and the December 1, 2003 Truth and Taxation Hearing a) Motion to approve the minutes of the November 24, 2003, regular City Council meeting as presented. b) Motion to approve the minutes of the December 1, 2003 City Council Truth and Taxation Hearing. 2) Accept Boards and Commissions Meeting Minutes a) Motion to accept the October 21, 2003 minutes of the Housing and Redevelopment Authority. b) Motion to accept the November 3, 2003 minutes of the Traffic Commission. c) Motion to accept the November 4, 2003 minutes of the Library Board of Trustees. d) Motion to accept the November 25, 2003 minutes of the Park and Recreation Commission. 3) Establish Work Session meeting date for Monday, January 5, 2004 beginning at 7:00 p.m. in Conference Room 1. Fehst asked to remove this item, as a work session is not necessary. 4) Adopt Resolution No. 2003-57, being a Resolution establishing a new maximum income of $22,800 for Senior or Retired and Disabled Persons to be eligible for special assessment deferral. Motion to waive the reading of Resolution No. 2003-57, there being ample copies available to the public. Motion to adopt Resolution 2003-57, being a resolution establishing a new maximum income of $22,800 for Senior or Retired and Disabled Persons to be eligible for special assessment deferral. City Council Minutes December 15, 2003 Page 2 of 20 Fehst stated that we act on these each year for those that qualify. RESOLUTION NO. 2003-57 BEING A RESOLUTION ESTABLISHING SENIOR CITIZENS OR RETIRED AND DISABLED PERSONS HARDSHIP SPECIAL ASSESSMENT DEFERRAL WHEREAS, immediate payment of special assessments or installments on special assessments cast an undue hardship on some persons owning homestead properties who are 65 years of age or older or retired by virtue of a permanent and total disability for whom it would be a hardship to make payments, and Whereas, Minnesota Statutes 435.193 - 435.195 makes it possible for a home nde charter city to pass a resolution establishing standards and guidelines for determining the existence of a hardship and for determining the existence of a disability. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COOLUMBIA HEIGHTS: This deferral procedure shall apply only to assessments which are payable in five or more annual installments. This deferral procedure shall apply only to property owned and occupied by the elderly, retired, or disabled applicant. Ownership and occupancy must be the same nature as would qualify the applicant for a homestead exemption for tax purposes. This deferral procedure shall apply only to homestead property owned by a person 65 years of age or older or retired by virtue of a permanent and total disability for whom it would be a hardship to make payments. Permanent and total disability shall have the same definition for purposes of assessment deferral as is used for social security purposes. This deferral procedure shall not be construed as to prohibit the determination of hardship on the basis of exceptional and unusual circumstances not covered by the standards and guidelines herein so long as determination is made in a nondiscriminatory manner and does not give the applicant an unreasonable preference or advantage over other applicants. In order to obtain a deferral of an assessment, the homeowner must make application on the forms prescribed by the City Clerk. In granting a deferred assessment, the Council shall determine in its resolution approving the assessment roll the amount of interest, if any, to be charged on the deferred assessment. The option of the homeowner to defer the payment of special assessments shall terminate and all amounts accumulated plus applicable interest shall become due and payable upon the occurrence of any of the following events: · the death of the owner, provided that the spouse is not otherwise eligible for benefits hereunder; · the sale, transfer or subdivision of the property or any part thereof; · of the property should for any reason lose its homestead status; or · if for any reason the City shall determine that there would be no hardship to require immediate or partial payment. No deferral may be granted unless the homeowner makes application to the City Clerk within thirty (30) days after adoption of the assessment by the Council. The deferral shall apply to only 50% of the annual installment payment. If the 50% is not paid in a timely manner, the balance of the annual installment along with all future installments shall become immediately due and payable. No deferral shall be granted to any owner who has a gross annual household income from all sources in excess of $22,800. No deferral may be continued from year to year unless the owner shall file a renewal application before September 15a~ of each year. No special assessment may be deferred for a period longer than the time set by the Council as the time over which the project is to be assessed. Interest on deferred assessments shall be at the rate set by the Council in its resolution adopting the assessment roll, and such interest shall be added to the amount deferred and shall be paid in accordance with Minnesota Statute 435.195 and this Resolution. 5) Adopt Resolution No. 2003-54, being a resolution establishing Senior Citizen Eligibility Standards for Refuse, Sewage Disposal and Water Supply Utility Rates. Motion to waive the reading of Resolution No.2003-54, there being ample copies available to the public. City Council Minutes December 15, 2003 Page 3 of 20 Motion to adopt Resolution No. 2003-54, being a resolution establishing Senior Citizen Eligibility Standards for Refuse, Sewage Disposal and Water Supply Utility Rates. Fehst stated that if the standards' were met, resident's rates would be reduced. Williams asked that these items be explained following the Consent Agenda. RESOLUTION NO. 2003 - 54 RESOLUTION ESTABLISHING SENIOR CITIZEN ELIGIBILITY STANDARDS FOR REFUSE, SEWAGE DISPOSAL AND WATER SUPPLY UTILITY RATES WHEREAS, the City Council has previously established eligibility standards for senior citizens for Refuse Service, Disposal, and Water Supply; and WHEREAS, It has been the City's practice to maintain uniform eligibility standards whenever possible: NOW, THEREFORE, BE IT RESOLVED by the City of Columbia Heights as follows: 1. That anyone over 62 years of age with a maximum household income of $22,800 will be eligible for reduced rates. BE IT FURTHER RESOLVED that the above eligibility standard be effective January 1, 2004. 6) Adopt Resolution 2003-56 being a resolution designating official depositories and safe deposit access for the City of Columbia Heights. Motion to waive the reading of Resolution No. 2003-56, there being ample copies available to the public. Motion to adopt Resolution 2003-56 being a resolution designating official depositories and safe deposit access for the City of Columbia Heights. RESOLUTION NO. 2003- 56 RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES AND SAFE DEPOSIT ACCESS FOR THE CITY OF COLUMBIA HEIGHTS IT IS HEREBY RESOLVED, that Northeast Bank, Wells Fargo Bank of Minnesota, N.A., and U.S. Bank are hereby designated as depositories of the funds of this corporation. IT IS FURTHER RESOLVED, that checks, drafts, or other withdrawal orders issued against the funds of this corporation on deposit with said banks shall be signed by the following: Mayor City Manager Clerk-Treasurer and that said banks are hereby fully authorized to pay and charge to the account of this corporation any checks, drafts, or other withdrawal orders. BE IT FURTHER RESOLVED, that the Northeast Bank, Wells Fargo Bank of Minnesota, N.A., and U.S. Bank are designated depositories of the corporation be and it is hereby requested, authorized and directed to honor checks, drafts or other orders for the payment of money drawn in this corporation's name, including those drawn to the individual order of any person or persons whose name or names appear thereon as signer or signers thereof, when bearing or purporting to bear the facsimile signatures of the following: Mayor City Manager Clerk-Treasurer and that Northeast Bank, Wells Fargo Bank of Minnesota, N.A., and U.S. Bank shall be entitled to honor and to charge this corporation for all such checks, drafts or other orders, regardless of by whom or by what means the facsimile signature or signatures thereon may have been affixed thereto, if such facsimile signature or signatures resemble the facsimile specimens duly certified to or filed with the Banks by the City Clerk or other officer of his corporation. BE IT FURTHER RESOLVED, that any and all resolutions heretofore adopted by the City Council of the corporation and certified to as governing the operation of this corporation's account(s) with it, be and are hereby continued in full force and effect, except as the same may be supplemented or modified by the foregoing part of this resolution. City Council Minutes December 15, 2003 Page 4 of 20 BE IT FURTHER RESOLVED, that all transactions, if any relating to deposits, withdrawals, re-discounts and borrowings by or on behalf of this corporation with said banks prior to the adoption of this resolution be, and the same hereby are, in all things ratified, approved and confirmed. BE IT FURTHER RESOLVED, that any bank or savings and loan located in the State of Minnesota may be used as depositories for investments purposes so long as the investments comply with authorized investments as set forth in Minnesota Statutes. BE IT FURTHER RESOLVED, that any brokerage firm located in the State of Minnesota may be used as a depository for investment purposes so long as the investments comply with the authorized investments as set forth in Minnesota Statutes. BE IT FURTHER RESOLVED, that the signatures of any one of the following named City employees are required for access to safe deposit boxes: Finance Director City Manager Assistant Finance Director Accountant Information Systems Director Information Systems Technician 7) Approve designation of the Sun Focus News as the official City newspaper for 2004 and to authorize the Mayor and City Manager to enter into an agreement with Sun Focus News for required publications. - Removed 8) Authorize staff to obtain price quotes for printing and mailing the 2004 "Heights Happenings" City newsletter. Motion to authorize staffto obtain price quotes for printing and mailing the 2004 "Heights Happenings" City newsletter. Fehst stated that specifications were handed out at this meeting, which include the option of an additional eight pages in case there is an agreement with the School District to do a joint newsletter. 9) Approve the Joint Powers Agreement between the cities of Andover, Blaine, Brooklyn Center, Columbia Heights, Coon Rapids, Fridley, and Spring Lake Park for the joint public bidding of certain street maintenance activities and authorize the Mayor and City Manager to enter into an agreement for the same. Motion to approve the Joint Powers Agreement between the cities of Andover, Blaine, Brooklyn Center, Columbia Heights, Coon Rapids, Fridley, and Spring Lake Park for the joint public bidding of certain street maintenance activities and authorize the Mayor and City Manager to enter into an agreement for the same. Fehst this is an attempt to save money by cities joining together for purchases. 10) Establish a Hearing Date of January 12, 2004 for revocation or suspension of rental property license at 4622 Tyler Street Motion to Establish a Hearing Date of January 12, 2004 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Peter Hwang at 4622 Tyler Street NE. 11) Approve Class B premise permit for the Columbia Heights Athletic Boosters Club in conjunction with activities at The Star Bar and Grill, 4005 Central Avenue NE and waive the sixty-day notice to the governing body. Motion to direct the City Manager to forward a letter to the State Charitable Gambling Control Board stating that the City of Columbia Heights has no objection to the issuance of a Class B premises permit for the Columbia Heights Athletic Boosters Club in conjunction with activities at City Council Minutes December 15, 2003 Page 5 of 20 The Star Bar and Grill, 4005 Central Avenue NE, Columbia Heights, Minnesota; and furthermore, that the City Council hereby waives the remainder of the sixty-day notice to the local governing body. Nclwrocki stated that the new owners of the Star Bar can do as they see fit, but questioned immediately removing Immaculate Conception Church (ICC), which has been therefor some time, as this helps fund their school. He suggested allowing both organizations to sell pull-tabs at this establishment. Nawrocki has spoken to the new owners, who wouM agree to allow both organizations if lCC wouM take out their wheel game. He asked that something be worked out so /CC couM remain until at least the end of the school year. Williams stated there is a Boosters meeting on Wednesday night where this couM be suggested. Wyckoff indicated that/CC still has sales at Mady's and the Boosters have no where to sell pull-tabs at this time. Williams stated he wouM encourage the joint sale. Wyckoff stated she wouM not back the joint sale at this time. 12) Approve the items listed for rental housing license applications for December 15, 2003 Motion to approve the items listed for rental housing license applications for December 15, 2003. 13) Approve Business License Applications - Removed 14) Approve Payment of Bills Motion to approve payment of the bills out of the proper funds as listed in the attached check register covering Check Number 106055 through 106371 in the amount of $4,048,331.84. Nawrocki commented that end of the year spending is considered "honey dipping time" and as the bills are more than double the normal amount, gives this credence. He indicated that earlier the Finance Director stated there could be a $300,000 surplus remaining at the end of the year, but now there would be no surplus. A classic example of this is the Park and Recreation Commission spending $3, 700 on carpeting at the end of the year. Nawrocki quoted from the Commission's minutes. Ericson asked how old the carpet was. Fehst stated that it was 18 years old. Nawrocki stated the carpet had life left, and it was not a budgeted item. Williams stated Murzyn Hall looks nice with the new carpet and assured Councilmember Nawrocki that the old carpet was really bad. We want to keep this a first class facility. Wyckoff asked Elrite to explain the payment to the NE State Bank. Elrite stated these are fund transfers; as we collect property taxes twice a year, we then immediately withdraw them for investment purposes. #15 Executive Session held Monday, December 8, 2003. Wyckoff stated that an Executive Session was hem on Monday, December 8, 2003 in Conference Room 1 at City Hall. This meeting was set by majority vote. Present were all Councilmembers, City Manager Fehst and Assistant to the City Manager Magee. The purpose of the executive session was to discuss labor negotiations. Nawrocki stated the executive session was not set at the last Council meeting, as the Council only authorized a work session, dim Hoeft, City Attorney, stated the executive session only needs to be announced at aprior Council meeting, and this obligation was met. Motion by Williams, second by Ericson, to approve the Consent Agenda items, except for items 3, 7, and 13. Upon vote: All ayes. Motion carried. 7) Approve designation of the Sun Focus News as the official City newspaper for 2004 and to authorize the Mayor and City Manager to enter into an agreement with Sun Focus News for required publications. Wyckoff indicated that she receives complaints of residents not regularly receiving this newspaper, City Council Minutes December 15, 2003 Page 6 of 20 and did not receive it herself last week. Wyckoff questioned designating the Northeaster as the official newspaper. Fehst stated that the Northeaster is not a weekly paper, which it must be, and the only other option would be the Minneapolis Star Tribune, which would be very costly. Nawrocki suggested calling them regarding better community distribution. Motion by Nawrocki, second by Williams, to designate the Sun Focus News as the official City newspaper for 2004 and to authorize the Mayor and City Manager to enter into an agreement with Sun Focus News for required publications. Upon vote, All ayes. Motion carried. 13) Approve Business License Applications Nawrocki indicated that he would abstain from the vote as the FFW Post ~ 230 is on the list and he is the signatory for this organization. Motion by Kelzenberg, second by Williams, to approve the items as listed on the business license agenda for December 15, 2003 as presented, regarding new licenses for 2004. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, abstain; Wyckoff, aye. 4 ayes-1 abstention. Motion carried. #4 Establishing a new maximum income of $22,800 for Senior or Retired and Disabled Persons to be #5 eligible for special assessment deferral. Establishing Senior Citizen Eligibility Standards for Refuse, Sewage Disposal and Water Supply Utility Rates Bill Elrite, Finance Director, stated item/~5 sets the utility income level for seniors. If under the approved income level, seniors get a reduced rate on their city water, sewer and refuse utilities. The level this year is $22,800. Item/~4 is for seniors and disabled individuals to receive deferral on special assessments. This deferral only sets aside the payments and interest does accrue, so the amount will grow. 14Zilliams noted the discrepancy of ages 65 and 62 in the resolution. Elrite indicated the amount or income is based on a 65 year old but eligibility is at age 62. 14Zilliams asked how much the discount is. Nawrocki stated that the minimum charge for residents is $31.76for water, and $16.22for seniors. PUBLIC HEARINGS Public Hearing called for Revocation/Suspension of Rental Housing License at 4927 & 4935 University Avenue N.E. Wyckoff closed the public hearing for Revocation or Suspension of the Rental License at 4927 & 4935 University Avenue N.E. in that the property now complies with the Residential Maintenance Code. Second Reading of Ordinance No. 1464, pertaining to City Charter Chapter 5, Section 36, Expenditures by Petitioner. Mike Hartel, Acting President of the Charter Commission, reviewed each recommended change to the City Charter. The first was a removal of specific dollar amount associated with referendum spending. Ericson clarified the language change was suggested by the Attorney. She read the change and stated that it would not restrict spending. Motion by Williams, second by Kelzenberg to waive the reading of Ordinance No. 1464, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Kelzenberg, to adopt Ordinance No. 1464, being and Ordinance amending Chapter 5, Section 36, Expenditures by Petitioner, of the City Charter. Nawrocki indicated his assumption that there would be clarifying language following the last meeting. City Council Minutes December 15, 2003 Page 7 of 20 Ericson stated that the wording, as presented by the Charter Commission, couM not be changed without going back before them. Upon vote: All ayes. Motion carried. ORDINANCE NO. 1464 BEING AN ORDINANCE AMENDING CHAPTER 5, SECTION 36, OF THE CITY CHARTER OF THE CITY OF COLUMBIA HEIGHTS PERTAINING TO EXPENDITURES BY PETITIONER The City of Columbia Heights does ordain: Chapter 5, Section 36, of the Charter of the City of Columbia Heights IS HEREWITH AMENDED TO READ AS FOLLOWS: CHAPTER 5 EXPENDITURES BY PETITIONER SECTION 36. No member of any initiative, referendum, or recall committee, no circulator of a signature paper, and no signor of any such paper, or any other person, shall accept or offer any reward, pecuniary or otherwise for services rendered in connection with the circulation thereof. Any committee member, at their sole discretion and at no charge to said committee member, may utilize the services of the city attorney so as to assure that the proposed ordinance is consistent as to form and structure with other similar ordinances enacted by the city council. Any violation of the provisions of this section shall constitute a misdemeanor. Second Reading of Ordinance No. 1465, pertaining to City Charter Chapter 12, Section 108, Official Publications Hartel indicated that the current Charter requires ten posting sites, including streetcar stops. The Charter Commission recommends bringing the wording up to date, and adding that notice be posted on the City web site. Motion by Ericson, second by Williams to waive the reading of Ordinance No. 1465, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Ericson, second by Williams to adopt Ordinance No. 1465, being and Ordinance amending Chapter 12, Section 108, Official Publications, of the City Charter. Nawrocki stated that the new language allows the City to get into the newspaper business. Hartel stated that reference is current languageand is not recommended for change. Upon vote: All ayes. Motion carried. ORDINANCE NO. 1465 BEING AN ORDINANCE AMENDING CHAPTER 12, SECTION 108, OF THE CITY CHARTER OF THE CITY OF COLUMBIA HEIGHTS PERTAINING TO OFFICIAL PUBLICATIONS The City of Columbia Heights does ordain: Chapter 12, Section 108, of the Charter of the City of Columbia Heights IS HEREWITH AMENDED TO READ AS FOLLOWS: CHAPTER 12 OFFICIAL PUBLICATIONS SECTION 108. The council shall regulate by ordinance the manner in which official publicity shall be given to the holding of elections, to ordinances, resolutions, initiative, referendum, and recall petitions, to requests for bids upon contemplated purchases and contracts, and to all other matters whatsoever which require publication either by the terms of this charter or by the constitution and laws of Minnesota. It shall annually designate a newspaper of general circulation in the city as the official paper in which shall be published such measures and matters as are by the constitution and laws of this state required to be so published, and such other matters as the council may deem it wise to have published in this matter, or in lieu thereof it may establish a mumcipal publication, which shall then be the official newspaper. The council may in its discretion provide for the publication of the annual budget, ordinances, resolutions, initiative, referendum, and recall petitions, election notices, and such other measures and matters as it may deem wise by the posting of typed copies at city hall and City Council Minutes December 15, 2003 Page 8 of 20 electronically displayed via the city's website and for such period of time as the council may direct in each case. If the latter method of publication is adopted, the council may provide that it shall be in lieu of other methods of publication or in addition thereto at its option. Wherever in this charter there is a requirement of the publication of any measure or matter, it shall be understood that the city council may designate the manner of such publication, subject to the options permitted by this section; but nothing herein contained shall be construed as authorizing or as attempting to authorize any violation of the constitution or the statutes of the state in any matter which is of state concern or which is exclusively under state control. Second Reading of Ordinance No. 1466, pertaining to City Charter Chapter 2, Section 7. Elective Offices Hartel stated that in 1995 the Charter was updated to allow for Councilmember's terms to end on even years, and is no longer applicable or necessary in the Charter. Motion by Kelzenberg, second by Williams, to waive the reading of Ordinance No. 1466, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Kelzenberg, second by Williams, Move to adopt Ordinance No. 1466, being an Ordinance amending Chapter 2, Section 7, Elective Offices, of the City Charter. Upon vote: All ayes. Motion carried. ORDINANCE NO. 1466 BEING AN ORDINANCE AMENDING CHAPTER 2, SECTION 7, OF THE CITY CHARTER OF THE CITY OF COLUMBIA HEIGHTS PERTAINING TO ELECTIVE OFFICES The City of Columbia Heights does ordain: Chapter 2, Section 7, of the Charter of the City of Columbia Heights IS HEREWITH AMENDED TO READ AS FOLLOWS: CHAPTER 2 ELECTIVE OFFICES SECTION 7. The council shall be composed of a mayor and four council members who shall be qualified electors, and who shall be elected at large in the manner hereinafter provided. The four council members shall serve for a term of four years and until their successors are elected and qualified. The Mayor shall serve for a term of two years and until a successor is elected and qualified. The council shall be judge of the election of the mayor and council members. Second Reading of Ordinance No. 1467, pertaining to City Charter Chapter 3, Section 16, Council Meetings Hartel stated this change allows newly elected Councilmember's duties to begin on the first Monday of January, per State Statutes. Motion by Ericson, second by Williams, to waive the reading of Ordinance No. 1467, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Ericson, second by Williams, to adopt Ordinance No. 1467, being and Ordinance amending Chapter 3, Section 16, Council Meetings, of the City Charter. Upon vote: All ayes. Motion carried. ORDINANCE NO. 1467 BEING AN ORDINANCE AMENDING CHAPTER 3, SECTION 16, OF THE CITY CHARTER OF THE CITY OF COLUMBIA HEIGHTS PERTAINING TO COUNCIL MEETINGS The City of Columbia Heights does ordain: Chapter 3, Section 16, of the Charter of the City of Columbia Heights IS HEREWITH AMENDED TO READ AS FOLLOWS: CHAPTER 3 COUNCIL MEETINGS SECTION 16. At the time of the first regularly scheduled council meeting in January following a regular mumcipal election, the council shall meet at the usual place and time for the holding of council meetings. The newly elected members shall assume the duties of such membership on the first Monday in January following that regular municipal election. Thereafter the council shall meet at such times as may be prescribed by ordinance or resolution, except that they shall meet not less than once each month. The mayor, or any two members of the council, or the city manager, may call special meetings of the council upon at least three City Council Minutes December 15, 2003 Page 9 of 20 (3) days notice to each member of the council. Such notice shall be posted and shall be delivered personally to each member or shall be left with some responsible person at the member's usual place of residence. The mayor, any two members of the council, or the city manager, may call special emergency meetings of the council. The Council shall make good faith efforts to provide notice of the meeting. Posted or published notice of any such emergency meeting shall not be required. An emergency meeting shall be defined as a special meeting called because of circumstances that, in the judgment of the mayor, any two council members, or the city manager, require immediate consideration. All meetings of the council shall be public, and any citizen shall have access to the minutes and records thereof at all reasonable times. Second Reading of Ordinance No. 1468, pertaining to City Charter Chapter 9, Section 89, Payment of Award Hartel stated that current wording is six percent per annum, but State Statute sets' this amount so it must be removed and referenced to State Statute. Motion by Williams, second by Ericson, to waive the reading of Ordinance No. 1468 there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Ericson, to adopt Ordinance No. 1468, being an Ordinance amending Chapter 9, Section 89, Payment of Award, of the City Charter. Upon vote: All ayes. Motion carried. Hartel mentioned there are currently openings on the Charter Commission, and encouraged anyone interested to contact City Hall. Hartel thanked Councilmembers for the Commission Hofiday Party. ORDINANCE NO. 1468 BEING AN ORDINANCE AMENDING CHAPTER 9, SECTION 89, OF THE CITY CHARTER OF THE CITY OF COLUMBIA HEIGHTS PERTAINING TO PAYMENT OF AWARD The City of Columbia Heights does ordain: Chapter 9, Section 89, of the Charter of the City of Columbia Heights IS HEREWITH AMENDED TO READ AS FOLLOWS: CHAPTER 9 PAYMENT OF AWARD SECTION 89. Whenever an award of damages shall be confirmed in any proceeding for the taking of property under this chapter, or whenever the court shall render final judgment in any appeal from any such award, and the time for abandoning such proceedings by the city shall have expired, the city shall be bound to and shall, within sixty days of such final determination, pay the amount of the award with interest thereon at the current judgment rate set by State Statute from the date of the confirmation of the award or judgment of the court, as the case may be; and if not so paid, judgment therefore may be had against the city. ITEMS FOR CONSIDERATION Other Ordinances and Resolutions - none Other Business Adopt Resolution No. 2003-50, being a resolution establishing the rates for Water Service, Sanitary Sewer Service and Storm Sewer for the years 2004 through 2008 Kevin Hansen, Public Works Director, referred to the Utility Rate Study completed by Short Elliott Hendrickson (SEH) and distributed to the City Council on November 3, 2003. Hansen introduced Dave Simons and Doug Klamerus of SEH who were present to give a power point presentation of the Utifity Rate Study, which was a nine month process. Dave Simons described the following items from the Utifity Rate Study: · Important goals of the study. · Key factors affecting utility rates o Bonding for CIP o Governmental mandates City Council Minutes December 15, 2003 Page 10 of 20 · · · Simons stated years. o o o Cost to purchase water will increase, as a new treatment plant is being built. If rates were to remain the same, expenses would exceed revenue. o Cost to treat sewage Simons stated the guide was to keep annual increases to ten percent and comparable to other communities. · Recommendations for Rate Changes o Replace minimum charge with a fixed service fee and begin charging at zero usage. o Continue senior discount, water meter surcharge, and maximum charge for sewer, except for commercial (which we already do). o Increase water and storm water rates, decrease sewer rates initially o Implement annual increases for water and sewer utilities o Implement constant rate for storm water utility Simons indicated that the total utility bill increase would be less than 10 percent. · Total utility bill - comparison of communities · Proposed Water Rates and community comparison of water rates · Proposed Sewer Rates and community comparison of sewer rates Simons stated this would be recommended as a first year decrease. There is a maximum, similar to a sprinkling credit. Proposed Storm Water Rates and community comparison of storm water rates Total utility bill comparisons to other communities Recommendations Implement new rates for five years Monitor expenses and make adjustments if necessary. that in 2008 the City shouM consider another review to project needs for the next five Charge associated administrative time to utility funds. Consider supplement to utility revenues with alternatives sources such as SAC/WAC fees and special assessments. Consider doing monthly billing to improve customer convenience. Hansen reviewed staff's recommendation to increase utifity rates with numbers provided each year beginning 2004, with the sewer rate remaining constant. Hansen stated that both water and sanitary sewer rates are per dwelling unit, the same as the minimum rate we had in the past. Wyckoff asked when the last utifity rate study was done. Hansen indicated he was not aware that such a study was ever done; however the last rate adjustment was in 1999. Wyckoff indicated this would mean an average increase of $18. 00. Hansen indicated the need for a water rate increase because of the charge from Minneapolis and necessary replacements in our infrastructure. The water fund has operated in a deficit for the last two years. Wyckoff stated she receives more and more complaints about our water and sewage, which shows we have an aging system. Nawrocki stated rates shouM be researched further and not acted upon tonight. The new water contract with Minneapolis will be a cost reduction. Hansen stated that the water contract would be a 30 year contract with percentage increases after 10 years. Those proposed rates were included in this study. Nawrocki commented that there is still a small water fund surplus and the last increase was steep. Nawrocki felt the presentation was sugar coated showing a small increase by combining services. Each service should be looked at separately. He gave personal examples of usage versus the determined minimum usage, which showed usages for a single person was triple the minimum usage. The increase to those on minimum water usage would be 54 percent. Nawrocki stated this is a bargain for commercial customers. There should be no changes to storm sewer charges at this time. City Council Minutes December 15, 2003 Page 11 of 20 Simons listed water usage amounts for an average household Fehst asked for an explanation of the sprinkling credit. Simons explained relative terms for the winter usage versus summer sprinkling usage and how other communities charge for this. Simons referred to commercial usage, which does not get a break for maximum amounts, as do residential customers. Wyckoff asked why commercial is charged differently. Simons stated that we couM raise commercial fees by a lot and not generate a lot of revenue, but we can raise residential fees by a little and raise the amount necessary. This structure is similar to other communities. Hansen indicated the need to increase our rates and the importance to consider implementation of SAC/WAC fee to efiminate the deficit in our water fund Wyckoff stated that we must plan for the future. Ericson stated that we hired SEH to audit our system because they are professionals. They gain nothing by increasing our rates. They are just trying to help us to plan for the future. Fehst stated that the initial reduction in the sewer rate is so the water rate increase wouM be tolerable. Fehst stated that typically rates are not reduced but in this case it wouM get the rates to the proper fund where we need them. Fehst referred to complaints from 49th Avenue and 7th Street, and 3 7th Avenue and Polk Street of poor water quality, the need to correct these types of complaints, and to not operating in the red Fehst complimented SEH, as they were amenable to our concerns and found ways to get things done. Fehst referred to the next agenda item regarding the purchase of water from the City of Minneapolis. The current contract is not favorable to our citizens. He stated that we were cheating the system by not doing infrastructure repair. Repairs have been done during the last eight years of street improvements. Williams indicated that he did not want to defer increases tike in the instance of Parkview Filla where $2,000,000 increased to $6,000,000 because the debt was deferred Nawrocki gave the background of our initially water purchase from the City of Minneapofis because of the degree of water softness and about the building of storm sewers. Over the years, when building reserves, we did not reduce the rates. Nawrocki did not agree with reducing sewer rates to make water increases look better, as these are separate funds. Wyckoff stated that the funds were calculated separately and combined Wyckoff asked if these rates wouM remain unchanged for five years. Hansen stated that these are the necessary rates to maintain service and take care of debt services, but we must remember there are other revenue sources to consider. Fehst stated that we shouM look at SAC/WAC fees prior to any new construction. Simons referred to the historic spend down of water utifity fund balances and referred again to what would happen if the rates remained the same. In general, it is the same for the storm water utifity. Simons stated there is a sense of urgency to upgrade rates, as more is being spent than is being brought in. Wyckoff stated there are copies of the rate study at City Hall, the Library and the Pubfic Works building. Motion by Kelzenberg, second by Ericson, to waive the reading of Resolution No. 2003-50, there being ample copies available to the public. Upon vote: All ayes. Motion carried. City Council Minutes December 15, 2003 Page 12 of 20 Motion by Kelzenberg, second by Ericson, to approve and adopt Resolution No.2003-50, being a Resolution establishing the rates for Water Service, Sanitary Sewer Service and Storm Sewer for the years 2004 through 2008. Nawrocki reiterated his point that this penafizes residents' and commercial users get a break. We should look at other revenue and incorporate it into the change. Motion by Nawrocki to table Resolution No. 2003-50 for further information. Second by Williams. Upon vote: Kelzenberg, nay; Williams, aye; Ericson, nay; Nawrocki, aye; Wyckoff, nay. 3 nays - 2 ayes. Motion failed. Upon vote of the original motion: Kelzenberg, aye; Williams, nay; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 3 ayes - 2 nays. Motion carried. Resolution 2003-50 BEING A RESOLUTION SETTING RATES ON SEWAGE DISPOSAL AND WATER SUPPLY IN THE CITY OF COLUMBIA HEIGHTS BE IT HEREBY RESOLVED by the City Council of the City of Columbia Heights, that: In accordance with the operating costs and rates to be paid by the City of Columbia Heights to the Metropolitan Council Environmental Services and the Minneapolis Water Department, the following rates shall be put into effect as of January 1, 2004 on all billings rendered thereafter: Water Supply Rates: Customer Classification Year 2004 2005 2006 2007 2008 Residential Fixed Fee $12.00 $12.90 $13.87 $14.91 $15.66 Rate per 1000 Gallons $ 2.28 $ 2.46 $ 2.63 $ 2.83 $ 2.97 Water MeterSurcharge $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 Senior Fixed Fee $ 6.90 $ 7.80 $ 8.77 $ 9.81 $10.56 Rate per 1000 Gallons $ 2.28 $ 2.46 $ 2.63 $ 2.83 $ 2.97 Water MeterSurcharge $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 Commercial/Industrial Fixed Fee $12.00 $12.90 $13.87 $14.91 $15.66 Rate per 1000 Gallons $ 2.28 $ 2.46 $ 2.63 $ 2.83 $ 2.97 Water MeterSurcharge $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 Sewer Disposal Rates: Residential Fixed Fee Rate per 1000 Gallons Maximum charge for 24,000 gallons Senior Fixed Fee Rate per 1000 Gallons Maximum charge for 24,000 gallons Commercial/Industrial Fixed Fee Rate per 1000 Gallons $12.00 $13.20 $14.52 $15.97 $16.45 $ 1.30 $ 1.43 $ 1.57 $ 1.73 $ 1.78 $43.20 $47.52 $52.27 $57.49 $59.22 $ 6.90 $ 8.10 $ 9.42 $10.87 $11.35 $ 1.30 $ 1.43 $ 1.57 $ 1.73 $ 1.78 $43.20 $47.52 $52.27 $57.49 $59.22 $12.00 $13.20 $14.52 $15.97 $16.45 $ 1.30 $ 1.43 $ 1.57 $ 1.73 $ 1.78 Storm Sewer Rates: Land Use R-1 R-2 Rates (2004-2008) $ 2.46/umt $ 2.46/umt City Council Minutes December 15, 2003 Page 13 of 20 R-3 $16.23/acre R-4 $16.23/acre RB $31.57/acre LB $31.57/acre GB $ 35.69/acre CBD $35.69/acre I $27.85/acre I- 1 $31.57/acre MWW $ 3.90/acre BE IT FURTHER RESOLVED that all foregoing rates are made effective January 1, 2004 in order to meet the additional cost to the City of Columbia Heights for these respective services. Approve the contract for the purchase of water from the City of Minneapolis Hansen stated that our drinking water is purchased from the City of Minneapolis. Our contract was for thirty years to the year 1995. Since then we have been operating under the same conditions. As their contracts for individual cities were coming due, they worked with a joint commission and with us over the last 12 to 15 months on future rates. Our City Attorney has reviewed the contract and his changes have been incorporated. This will change how we pay for water. Previously, we used a declining rate, from which we never left level three. Staff recommends that rates for the next ten years begin at $2.04 per 1, 000 units and increase 1.5 percent for the next ten years. Wyckoff stated that water rates paid are going down and any increase in residential rates would be for future improvements. Hansen stated this is the wholesale rate, but we will include costs to maintain our distribution system, water tower, etc. Nawrocki questioned when the contract would begin. Hansen stated danuary 1, 2004. Wyckoff fisted the average rate in 2003. Hansen stated this is would be a unit decrease orS. 48. Nawrocki questioned how many cents we would save on 15, 000 gallons. Hansen stated $. 80. Williams questioned waiting to sign this contract. Kelzenberg stated he was in favor of signing the contract, as this is a better rate than even Minneapolis residents will pay. Motion by Ericson, second by Kelzenberg, to approve the contract for the purchase of water from the City of Minneapolis and authorize the Mayor and City Manager to enter into an agreement for the same. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, aye; Wyckoff, aye. 5 ayes - 0 nays. Motion carried. Adopt Resolution No. 2003-55, being a resolution adopting a budget for 2004, setting the City, Library and EDA levy at $5,447.260 and approving the HRA levy of $137,683 Elrite stated the budget process begins in March to prepare the draft budget; meetings with Councilmembers begin in August and continue to the Truth and Taxation Hearing in December, when the budget is presented to citizens in a summary format. This year we are in a "hold the line" mode due to the reduction of State aid. The Governor and State are allowing us to make up sixty percent of lost aid through property taxes. The remaining $419,000 had to be absorbed through reductions, which staff has accomplished. Elrite stated that four out of five homes are currently paying less property tax than they were in 1997. The average home in Columbia Heights has a property tax value of $120, 000 and would have an average tax increase of $7 to $9 per month. Wyckoff asked for an explanation of the statement in the Council letter indicating there would no longer be reserves at the end of this year for a fund balance. Elrite stated that when meeting with Councilmembers in November a surplus was anticipated but now appears that we will only make the required reduction. Wyckoff dispelled the myth that staff spends extra funds at end of the year. Elrite stated it is a blending, as staff sometimes waits until near the end of the year to use budgeted City Council Minutes December 15, 2003 Page 14 of 20 funds, holding back in case there are any emergencies and subsequent expenses incurred. There were funds left under Murzyn Hall, as some expenses were not incurred so the Park and Recreation Commission replaced some carpeting at Murzyn Hall. Nawrocki felt that the Pubfic Work; budget was not properly reviewed and referred to last minute funds spent by the Fire and Police Department,'. He stated that we have not done our jobs by not making total budget reductions and by blaming the State, instead of downsizing our operations. Comparing current taxes to 1997 is not a correct comparison, as that included county and school district taxes. Nawrocki stated that in the property tax levy survey of 138 communities we are in the upper 25 percent. He listed reductions he proposed earlier, such as using the anticipated $300,000 surplus to reduce proposed taxes, eliminate the Values First program participation, drop membership in the North Metro Chamber and aH national organizations, eliminate all travel and conferences outside of the metro area, continue reduction of the Fire Department position in the second half of the year and next year, reduce Special Project Coordinator and City Planner to one- half time, and eliminate the Public Work; Administrative Assistant and one IS position. The Building Inspector position should be reinstated. Nawrocki referred to possible elimination of levy limit,'. He spoke cfa book he read on the Enron scandal and the collapse of the Arthur Anderson firm, and quoted Teddy Roosevelt saying "Americans only learn from catastrophe and not from experience ". Williams asked Bob Streetar, Community Development Director to discuss information he gave to Council. Streetar gave a summary of the December 7th Star-Tribune article comparing taxing district; and cities. The median home value in Columbia Height; was second lowest of the 165 listings, and the property tax on this home was the lowest of the listings. Streetar referred to the City's goal; and the need to continue new construction. Fehst referred to the tax rate formula. Williams restated that there wouM only be one city where you wouM pay lower taxes, and listed the similar local taxes for 2001 and 2004. Williams indicated that we have a great tax value for a city of our size. We couM cut a few more things, but our Police Department is critical and the Values First program does a lot for us. Williams stated he wouM like to see the SAC/WAC fees initiated as we have lost about $1,600,000 in State Aid in the last two years. Wyckoff indicated that this community must fight to stay alive. She does not appreciate staff being "put down" and referred to problems with rental properties requiring Police Chief Johnson to ask for replacement officers. Nawrocki stated that improvement; do continue in the city and that Mr. Streetar's report is not an apples to apples comparison. Nawrocki asked if the County will issue an HRA levy. Fehst stated this has been dropped. Motion by Ericson, second by Kelzenberg, to waive the reading of Resolution No. 2003-55, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Ericson, second by Kelzenberg, to adopt Resolution 2003-55 being a resolution adopting a budget for 2004, setting the City, Library and EDA levy at $5,447,260 and approving the HRA levy of $137,683. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 4 ayes - 1 nay. Motion carried. RESOLUTION 2003 - 55 RESOLUTION ADOPTING A BUDGET FOR THE YEAR 2004, SETTING THE CITY LEVY, APPROVING THE HRA LEVY, AND CANCELING THE SCHEDULED BOND LEVY NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF COLUMBIA City Council Minutes December 15, 2003 Page 15 of 20 HEIGHTS, MINNESOTA: that the following is hereby adopted by the City of Columbia Heights. Section A. The budget for the City of Columbia Heights for the year 2004 is hereby approved and adopted with appropriations for each of the funds listed below. General Fund Community Development Fund Economic Development Fund Parkview Villa North Parkview Villa South Anoka County CDBG State Aid Cable Television Library DARE Project Infrastructure Capital Improvement Capital Equipment Replacement Funds Central Garage Fund Liquor Operating Liquor Capital Improvement Water Utility Fund Sewer Utility Fund Refuse Fund Storm Sewer Fund Data Processing Debt Service Fund Total Expense Including Interfund Transfers Expense 8,232,617 472,230 222,648 373,900 197,477 1,016 166,431 233,427 631,271 5,375 159,871 64,000 1,026,692 488,271 6,836,166 6,000,000 1,756,214 1,361,319 1,537,967 307,164 271,745 2,326,713 32,672,514 Section general B. The estimated gross revenue to fund the budget of the City of Columbia Heights for all funds, including ad valorem tax levies and use of fund balances, as hereinafter set forth for the year 2004: General Fund Community Development Fund Economic Development Fund Parkview Villa North Parkview Villa South Rental Housing State Aid Cable Television Library DARE Project Infrastructure Capital Improvement Capital Equipment Replacement Funds Central Garage Fund Liquor Operating Liquor Capital Improvement Water Utility Fund Sewer Utility Fund Refuse Fund Storm Sewer Fund Data Processing Debt Service Fund Total Revenue Including Interfund Transfers Revenue 8,232,617 472 230 222 648 373 900 197 477 1 016 166 431 233 427 631 271 5 375 159 871 64 000 1,026,692 488,271 6,836,166 6,000,000 1,756,214 1,361,319 1,537,967 307,164 271,745 2,326,713 32,672,514 City Council Minutes December 15, 2003 Page 16 of 20 Section C. The following sums of money are levied for the current year, collectable in 2004, upon the taxable property in said City of Columbia Heights, for the following purposes: General Levy Estimated Area-Wide Total Levy Estimated General Fund Levy 3,891,670 1,037,040 4,928,710 Estimated Library Levy 433,585 433,585 Estimated EDA Fund Levy 84,965 84,965 Total Levy 4,410,220 1,037,040 5,447,260 Section D. The City Council of the City of Columbia Heights hereby approves the Housing and Redevelopment Authority Tax Levy for the fiscal year 2004 in the amount of $137,683. BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, COUNTY OF ANOKA, MINNESOTA: That the county auditor is authorized to fix a property tax rate for taxes payable in the year 2004 that is higher than the tax rate calculated for the city for taxes levied in 2002, collectable in 2003. BE IT FURTHER RESOLVED: That the city has adequate fund balances and reserves to pay all 2004 bond principal and interest payments and the county auditor is authorized to cancel all bond levies for taxes payable in 2004. The City Clerk is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Anoka County, Minnesota. Adopt Resolution No. 2003-58, being a resolution authorizing application for 2004 Anoka County Community Development Block Grant (CDBG) Funding, for the purpose of removing slum and blight in the amount of $300,000 for clearance and demolition of the NEI building at 825 41 st Avenue NE Streetar stated this application would be for anticipated demolition of the NEI building. The EDA has a purchase agreement with NEI. If we do not buy the building and we receive this money, there would be no loss. Estimated demolition is $400,000 and we are applying for $300,000. The rest of the cost would come from the sale of the property on Tyler Street. Wyckoff questioned when the building would be removed. Streetar stated possibly in April. Williams stated that the Community Development Department has brought in about $800,000 in competitive grant dollar; compared to the $80,000 we have spent. We received $230, O00 for cleanup in the industrial area. Motion by Nawrocki, second by Williams, to waive the reading of Resolution No. 2003-58, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Nawrocki, second by Williams, to adopt Resolution No. 2003-58, being a resolution of the City Council of the City of Columbia Heights, Minnesota authorizing application for 2004 Anoka County Community Development Block Grant (CDBG) Funding, for the purpose of removing slum and blight in the amount of $300,000 for clearance and demolition of the NEI building at 825 41st Avenue NE; and furthermore, to submit said application to Anoka County. Upon vote: All ayes. Motion carried. RESOLUTION 2003 - 58 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA AUTHORIZING APPLICATION FOR 2004 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING THROUGH ANOKA COUNTY City Council Minutes December 15, 2003 Page 17 of 20 WHEREAS, the City has entered into an agreement to purchase the NEI property, with the redevelopment and enhancing economic development activities; and end result of achieving WHEREAS, the City has determined that the NEI building is distressed and meets slum and blight standards; and WHEREAS, the City of Columbia Height has aggressively solicited redevelopment interests for the NEI property, with no positive response for reuse of the building and its facilities; and WHEREAS, the City has found that building systems maintenance of the current NEI building is cost prohibitive; and NOW, THEREFORE BE IT RESOLVED that the City of Columbia Heights acts as the legal sponsor for the 2004 Commumty Development Block Grant Program to be submitted on January 9, 2004; and BE IT FURTHER RESOLVED that the City of Columbia Heights has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration; and BE IT FURTHER RESOLVED that the City of Columbia Heights has not violated any Federal, State, or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or unlawful or corrupt practice; and BE IT FURTHER RESOLVED that Walter R. Fehst is hereby authorized to execute such agreements as are necessary to implement the project(s) on behalf of the applicant; and NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Columbia Heights, Minnesota has authorized staffto submit an application for clearance/demolition of the NEI building at 825 41s* Avenue NE. Streetcar stated that bids for demofition and asbestos removal will come before the EDA on January 20, 2004 and authorization of the loan will come before the City Council on danuary 29' 2004. The closing on the property would be February 6th. Nawrocki stated that this was tabled at a previous meeting to be discussed tonight. It should have been brought up and tabled again. Motion by Nawrocki, second by Williams, to table consideration of the loan to the EDA. Upon vote: All ayes. Motion carried. Approve police service contract with the City of Hilltop through December 31, 2006 at the following rates: 2004--$154,960/year, 2005--$161,158/year, and 2006--$168,154/year. Chief Johnson stated the goal was to provide both medical and fire services. Money was as issue, as the City of Hilltop also faces budget cuts, so the initial charge was reduced by four percent with a gradual yearly increase to achieve the amount requested and would include the fire contract. Both City Attorneys reviewed the contract, with slight wording changes made regarding indemnification. Jim Hoeft, City Attorney, explained concerns corrected in the contract were Hilltop's indemnification of the pofice department and indemnification regarding certain acts outside of pofice department services provided i.e. pofice sexual assault. Motion by Nawrocki, second by Williams, to approve the police service contract with the City of Hilltop through December 31, 2006 at the following rates: 2004--$154,960/year, 2005-- $161,158/year, and 2006--$168,154/year. Upon vote: All ayes. Motion carried. Authorize contract with the City of Hilltop for Fire/Medical and Inspection services from January 1, 2004 through January 1, 2006. Fire Chief Charlie Thompson indicated this allows fire, medical, and housing inspection services for the City of Hilltop. Thompson explained the process to determine the contract amount. There may be additional fees for licensing of rental property. Wyckoff stated that she does not want to remove the trailer home park, but wants to see that the people living there are safe. City Council Minutes December 15, 2003 Page 18 of 20 Fehst compfimented the cooperation of the two department; to achieve this goal. Fehst stated that we have also offered services for implementing improvements on Central Avenue. Wyckoff stated that the Star Light Motel is interested in selling their business. Nawrocki questioned the Fire Department budget and vehicle replacement cost,'. Thompson stated that the amount indicated did not include capital budget items. Nawrocki stated that the increase over four years might not be reafistic. Ericson indicted that we are already taking the Hilltop fire call; without reimbursement. Fehst stated this falls under mutual aid. Motion by Ericson, second by Williams, to authorize the Mayor and City Manager to enter into a contract with the City of Hilltop for Fire/Medical and Inspection services from January 1, 2004 through January 1, 2006. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 4 ayes - 1 nay. Motion carried Adopt the 2004-2005 Murzyn Hall rental rates and to make John P. Murzyn Hall a non-smoking facility effective 2005, as outlined by the Park and Recreation Commission at their meeting of November 25, 2003. Keith Windschitl, Recreation Director referred to rental rates for 2004 and 2005 recommended by the Park and Recreation Commission. The only changes wouM be a reduction in cost for Friday night rental; to increase the number of rentals, and increase the cost of premix in 2005 by $1. The Commission is also recommending that the Murzyn Hall bar area be designated as non-smoking beginning danuary 1, 2005. Windschitl indicated that his survey of other cities with community centers showed that they do not allow smoking inside their facilities. Wyckoff suggested giving the reserving party the option of non-smoking. Windschitl stated renters are given that option. Ericson questioned why the Commission is recommending this. Windschitl referred to the new carpeting. The request is to begin in 2005, as bookings for 2004 were as a smoking facility. Williams asked if the Commission passed this unanimously and if we wouM lose business. Windschitl stated it was a unanimous vote, but couM not predict if there wouM be a loss of rentals. Nawrocki stated that it wouM not bother him to ban smoking, but it is still a fact of life, so he wouM be reluctant to do so. Wyckoff stated that she despises cigarettes, but wouM tike the option of non-smoking made available to renters. Windschitl stated that with non-smoking inside, drink; would be taken outside and additional clean up would be necessary. Ericson stated that people become accustomed to the routine of where smoking is available. She stated she would support the recommendation, as it is a City owned property. Williams stated that the poficy couM be reviewed if rentals are affected Windschitl referred to comments from potential renters of smoke smell in the building. Williams asked Jerry Foss, Park and Recreation Commissioner, for his opinion. Foss stated there is always a smell in the building; and since his recent heart attack he would not even attend the Commission appreciation dinner at Murzyn Hall because of the smell. Foss stated that we try to City Council Minutes December 15, 2003 Page 19 of 20 make this facility a nice place for weddings. Nawrocki questioned rental rates for the LaBelle lounge on this rate structure and stated that resident; should received the reduced rate and the 25 percent resident discount. Windschitl stated that would be a 75 percent discount and would not cover staffing the facifity. Motion by Ericson, second by Kelzenberg, to approve the 2004-2005 Murzyn Hall rental rates and to make John P. Murzyn Hall a non-smoking facility effective 2005, as outlined by the Park and Recreation Commission at their meeting of November 25, 2003. Amendment to the Motion by Nawrocki to call for the residents 25 percent discount on any of these indicated fees. As no second was received, amendment failed. Amendment to the Motion by Nawrocki to allow smoking in the LaBelle lounge only. Second by Kelzenberg, for discussion. Kelzenberg stated that he was at the Park and Recreation Commission meeting and agreed it is time we sent a good example and make the facifity non-smoking. Upon vote of the amendment: Kelzenberg, nay; Williams, nay; Ericson, nay; Nawrocki, aye; Wyckoff, nay. 1 aye - 4 nays. Amendment failed. Upon vote of the original motion: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 4 ayes - 1 nay. Motion carried. Bid Considerations - none ADMINISTRATIVE REPORTS Report of the City Manager Fehst wished everyone "Happy Holiday,'" and commended staff that worked on the Employee and Board and Commission dinners. He thanked Board and Commissioner members for attending the event and stated that he wouM like to repeat this gathering next year. Nawrocki suggested that we consider local caterers. Report of the City Attorney Hoeft gave information on the State Attorney General's interpretation of Administrative Tag; not being used for traffic violations. Hoeft has advised the Police Department to suspend the practice of Administrative Tags for traffic violations. The will be debated by larger communities. Wyckoff referred to the expense ora speeding ticket. Chief Johnson stated that the Chief'; Association is active in its belief that administrative tag; shouM be used for traffic violations and will address this through the Legislature. CITIZENS FORUM - none COUNCIL CORNER Ericson · The Commission appreciation dinner was wonderful. The time residents put into these boards and commissions is very appreciated. · Reminded everyone of the December Values First values. We have a diverse community and celebrate may types of holidays. Wished everyone Happy Holidays. City Council Minutes December 15, 2003 Page 20 of 20 Wyckoff · "First Wednesdays with the Mayor" will begin January 7th at 6:30 p.m. at the Library with a presenter to give a civil lesson. Bob Streetar, Community Development Director, will give the first presentation. Residents may speak to the Mayor before and after the presentation. · Showed a Christmas card received from and designed by Andy and Jan Soskosky of the deer at the Minneapolis Water Works facility. · Wished everyone a Merry Christmas. Williams · Reminded everyone of the DARE graduations tomorrow and Wednesday at Valley View Elementary and Immaculate Conception Schools. · Commented on a letter received regarding the budget that took offense to the comparison of necessary city services and family spending. · The reason for the season is Christ. · Referred to finding Saddam Hussein in a hole. · Pray for the peace, prosperity, and health of our citizens. Kelzenberg · Congratulated his son, Joe for placing second at their basketball tournament. He was approached by the Fridley Assistant Coach regarding their desire to build a community center because they also lack gym space. · Wished everyone a Merry Christmas and a Happy New Year. Nawrocki · At 3808 Reservoir there are junk cars by the house. · House on Tyler and 37th or 39th, junk in backyard. Fehst stated this is in court. · Have not made a meaningful decision regarding helping residents clean up after sewer backups · Waiting for written statement that city employees are not prohibited from talking with members of the Council · Have we come up with a way to take care of the drainage problem in Cheery Heights? Fehst stated that we have contacted residents and they have not set up a date to meet. · Have not heard a response to Mr. Mady alleviating his concerns for rumors of development, which are restricting bowling league sign ups. Fehst asked for suggestions, as we have no options there. · Wished everyone Season Greetings, including his colleagues on the Council, Staff and the City Manager. ADJOURNMENT Mayor Wyckoff adjourned the meeting at 11:05 p.m. Patricia Muscovitz, CMC Deputy City Clerk/Council Secretary