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HomeMy WebLinkAboutOctober 25, 2004OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING OCTOBER 25, 2004 The following are the minutes for the regular meeting of the City Council held at 7:30 p.m., immediately following the Economic Development Authority meeting, on Monday, October 25, 2004 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. CALL TO ORDER/ROLL CALL Mayor Wyckoff called the meeting to order at 7:30 p.m. Present: Mayor Wyckoff, Councihnelnber Willialns, Councilmember Nawrocki, Councilmember Ericson, Councihnember Kelzenberg PLEDGE OF ALLEGIANCE - recited ADDITIONS/DELETIONS TO MEETING AGENDA Wyckoff switched items A and B under Items for Consideration. Nawrocki requested that the Fall City Newsletter be placed on the agenda. Wyckoff placed it as item C 1 under Items for Consideration. Harold Hoium requested addition of Ordinances. Wyckoffindicated this would be discussed later in the meeting. PROCLAMATIONS, PRESENTATIONS, RECOGNITIONS AND GUESTS - none CONSENT AGENDA Walt Fehst, City Manager, took Councihnembers through the items. 1) Approve Ci_ty Council Meeting Minutes a) Motion to approve the minutes of the October 11, 2004 Special Assessment Levy Hearing for Zone 6 City Council lneeting as presented. b) Motion to approve the minutes of the October 11, 2004 Special Assessment Levy Hearing for Zone 7A City Council meeting as presented. c) Motion to approve the minutes of the regular October 11, 2004 City Council meeting. 2) Accept Boards and Comlnissions Meeting Minutes a) Motion to accept the October 5, 2004 minutes of the Library Board of Trustees. b) Motion to accept the July 20, 2004 minutes of the HR_A_. c) Motion to accept the October 4, 2004 minutes of the Traffic Co~mnission. 3) Establish the Canvass of the 2004 General Election results for Wednesday, November 3, 2004 beginning at 5:30 p.m. in the City Council Chambers Motion to establish the Canvass of the 2004 General Election results for Wednesday, November 3, 2004 beginning at 5:30 p.m. in the City Council Chambers. ~Vyckqff stated that date is also her First Wednesday with the Mayor meeting at the LibraJy, and since there wouM be a quorum,, she wouM not attend the Canvass meeting. 4) Adopt Resolution 2004-70, being a Resolution to extend the terms of the Southern Anoka County Colmnunity Consortium Joint Powers Agreelnent for payment of the am~ual fees for FY 2005 and 2006. Relnoved City Council Minutes October 25, 2004 Page 2 of 17 s) Adopt Resolution 2004-71, being a Resolution to approve application to the MN Department of Employment and Economic Development for a Contamination Clean Up Grant Motion to waive the reading of Resolution 2004-71, there being ample copies available to the public. Motion to adopt Resolution 2004-71, being a Resolution to approve application to the MN Department of Employment and Economic Development for a Contamination Clean Up Grant. Fehst indicated previo~ts grants received and stated that action taken tonight woztld indicate the project would move fo~Tvard. Consent Agenda items #5 and #6 are a joint attempt to receive clean ztp fimding. RESOLUTION 2004-71 RESOLUTION AUTHORIZING APPLICATION FOR MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT CONTAMINATION CLEANUP GRANT PROGRAM WHEREAS, the City Council of the City of Columbia Heights (the "City") has given their support to a master plan for redevelopment of industrial area properties; and WHEREAS, the City has found that there exists conditions of deterioration, blight, substandard structures, and enviro~zrnental concerns, and there exists a need (due to blighting influences) for intervention by the City to prevent further deterioration an promote redevelopment of the industrial area; and WHEREAS, the City has identified and completed Phase I and Phase II assessments of all industrial properties in the industrial planning area in which various potential contaminants were identified, with the City submitting a Response Action Plan (RAP) to the MPCA for cleanup; and WHEREAS, the DEED grant requires applicants to pay an amount equal to 12% of the cleanup costs from mtrestricted money; and NOW, THEREFORE BE IT RESOLVED that the City of Columbia Heights acts as the legal sponsor for the Contamination Cleanup Grant Program to be submitted on November 1, 2004, and that City Manager, is hereby authorized to apply to DEED for funding on behalf of the City of Columbia Heights, Mim~esota; 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 f'mancial capability to ensure adequate project administration; and BE IT FURTHER RESOLVED that the sources and amounts of the local match identified in the application are cormnitted to the project identified; 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 upon approval of its application by the state, the City of Columbia Heights, Mim~esota may enter into an agreement with the State of Minnesota for the above-referenced project(s), and that Columbia Heights certifies that it will comply with all applicable laws and regulations as stated in all contract agreements; and BE IT FURTHER RESOLVED that the Mayor and City Clerk are 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, Milmesota has approved the Contamination Cleanup Grant Application submitted to the Department of Employment and Economic Development (DEED). 6) Adopt Resolution 2004-72, being a Resolution authorizing application to the Metropolitan Council for Tax Base Revitalization Account Funding. Motion to waive the reading of Resolution 2004-72, there being ample copies available to the public. Motion to Adopt Resolution 2004-72, being a Resolution authorizing application to the Metropolitan Council for Tax Base Revitalization Account Funding. RESOLUTION 2004-72 RESOLUTION AUTHORIZING APPLICATION TO THE METROPOLITAN COUNCIL FOR TAX BASE REVITALIZATION ACCOUNT FUNDING WHEREAS, the City of Columbia Heights is a participant in the Livable Co~mnunities Act Housing Incentives Progrmn for 2004 as determined by the Metropolitan Council, and is therefore eligible to make application for fnnds City Council Minutes October 25, 2004 Page 3 of 17 under the Tax Base Revitalization Account; and WHEREAS, the City has identified a contamination clean-up project within the City that meet the Tax Base Revitalization Account's purpose/s and criteria; and WHEREAS, the City has the institutional, managerial and financial capability to ensure adequate project administration; and WHEREAS, the City certifies that it will comply with all applicable laws and regulations as stated in the contract agreements; and WHEREAS, the City Council of Columbia Heights, Minnesota agrees to act as legal sponsor for the project contained in the Tax Base Revitalization Account application submitted on November 1, 2004; and BE IT FURTHER RESOLVED that the City Manager is hereby authorized to apply to the Metropolitan Council for this funding on behalf of the City of Columbia Heights and to execute such agreement as are necessary to implement the project on behalf of the applicant. 7) Second reading of Ordinance 1477, being an Ordinance amending Ordinance 853-10.108(6) City Code of 1977, authorizing the ordinance violation of public nuisance under 10.108(6)(a) to be charged as a petty misdemeanor and subject to the penalties set forth by Resolution Removed 8) Adopt Resolution 2004-69, being a Resolution amending Resolution 2003-06 establishing penalties for the violations listed and allowing for the use of administrative tags when citing for these violations Removed 9) Approve Refuse/Recycling contract with BFI Waste Systems Removed 10) Adopt Resolution 2004-67, being a Resolution amending Resolution 2004-23 authorizing certain Charitable Gambling. Removed. 11) Establish a Hearing Date of November 8, 2004 for revocation or suspension of rental property license at 1635 49th Avenue N.E. Motion to establish a hearing date of November 8, 2004 for revocation or suspension of a license to operate a rental property within the City of Columbia Heights against Abullahi Elmi at 1635 49th Avenue N.E. 12) Approve Rental Housing License Applications Motion to approve the items listed for rental housing license applications for October 25, 2004. 13) Approve Business License Applications Motion to approve the items as listed on the business license agenda for October 25, 2004 as presented and the renewals for 2005. 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 110242 tlu'ough 110410 in the amount of $932,744.44. Motion by Williams, second by Nawrocki, to approve the Consent Agenda items, with the exception of items #4, 7, 8, 9, and 10. Upon vote: All ayes. Motion carried. #4 Adopt Resolution 2004-70, being a Resolution to extend the terms of the Southern Anoka County Community Consortium Joint Powers Agreernent for payment of the annual fees for FY 2005 and 2006. Nawrocki indicated that in light of budget concerns, we should not continue our support for the next two years. Fehst stated that other communities involved have adopted continuation of the progrmu. SACCC's fee would remain at the 2004 budget amount. Fehst stated that Police Chief Tom Johnson works with this agency. Nawrocki stated that the funds would be better used toward another patrolman. City Council Minutes October 25, 2004 Page 4 of 17 Motion by Nawrocki to table the SACCC agreement and to consider it along with other budget items. Second by Williams. Williams stated that before agreeing to fund the Values First program, Council should lead by exan~ple. If we don't do that, we should not be involved. Fehst stated this program works with and because of many volunteers. He suggested Barb Warren explain the program-! at a Council meeting or work session. Wyckoff stated that this program is recognized across the nation. There are monthly meetings regarding diversity, mental illness, immigrants, and is worth the cost. Chief Johnson stated that we need money for additional officers, but the Values First program reaches out to youth in the COlmnunity, teaching tolerance and accepting diversity. This is the only group reaching out to do this in our community. Johnson stated that he would be a program volunteer even if our City did not continue to contribute. Kelzenberg asked when this could be discussed at a work session. Fehst stated November 29th. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, nay; Nawrocki, aye; Wyckoff, nay. Motion to table 3 Ayes - 2 Nays. Motion carried. #7 Second reading of Ordinance 1477, being an Ordinance amending Ordinance 853-10.108(6) City Code of 1977, authorizing the ordinance violation of public nuisance under 10.108(6)(a) to be charged as a petty misdemeanor and subject to the penalties set forth by Resolution Chief Johnson stated this would address minor items like illegal turns, rolling through stop signs, and minor speed violations as a public nuisance allowing for the correction of behavior with a reasonable fine of a petty misdemeanor. The Officer would have the option to issue a public nuisance or County tag. Right hand turns were discussed. Williams expressed concern of excess speed where children play. Harold Hoium, 4215 5th Street, stated there should be an ordinance against parking on streets 365 days a year. Motion by Nawrocki, second by Williams, to waive the reading of Ordinance 1477 there being ample copies available to the public. Upon vote: Ayes - Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. Motion by Nawrocki, second by Williams, to adopt Ordinance 1477, being an Ordinance amending Ordinance 853-10.108(6) City Code of 1977, authorizing the ordinance violation of public nuisance under 10.108(6)(a) to be charged as a petty misdemeanor and subject to the penalties set forth by Resolution. Upon vote: Ayes - Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. ORDINANCE 1477 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY CODE OF 1977, PERTAINING TO PUBLIC NUISANCES WHEREAS Chapter 10, Article 1, Section 8, subdivision 6, which curremly reads as follows to-wit: 10.108 (6) Mi~mesota Statutes 609.74 and 609.745, defining crimes constituting public nuisances, are incorporated herein. Is hereby amended to read as follows, to-wit: 10.108 (6) Mi~mesota Statutes 609.74 and 609.745, defining crimes constituting public nuisances, are incorporated herein. (a) Notwithstandint anything to the contrary herein, a violation of Minnesota Statute 609.74 subd. (2) shall be a petty misdemeanor subject to the penalties as set forth by Resolution. City Council Minutes October 25, 2004 Page 5 of 17 #8 Adopt Resolution 2004-69, being a Resolution amending Resolution 2003-06 establishing penalties for the violations listed and allowing for the use of administrative tags when citing for these violations Johnson stated this would establish the fees for violations issued under the Public Nuisance Ordinance. Ericson questioned if refi'igerator doors are to be removed when waiting for recycling pickup. Johnson stated yes. Wyckoff refen'ed to Public Nuisance versus Adlrfinistrative Tag, which was not allowed by the State. Motion by Kelzenberg, second Williams, to waive the reading of Resolution 2004-69, there being ample copies available to the public. Upon vote: Ayes - YVyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried Motion by Kelzenberg, second Williams, to adopt Resolution 2004-69, being a Resolution amending Resolution 2003-06 establishing penalties for the violations listed and allowing for the use of administrative tags when citing for these violations. Upon vote: Ayes - Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried RESOLUTION NO. 2004-69 BEING A RESOLUTION ESTABLISHING PENALTIES FOR ADMINISTRATIVE OFFENSES WITHIN THE CITY OF COLUMBIA HEIGHTS AS AUTHORIZED BY SECTION 8, CHAPTER 3 OF THE COLUMBIA HEIGHTS CITY CODE WHEREAS, the Columbia Heights City Council adopted Ordinance No. 1358 on October t3, 1997, establishing Section 8, Chapter 3 of the Columbia Heights Code entitled "Administrative Offenses;" and, WHEREAS, Subdivision 7 provides that penalties be imposed for violations of scheduled administrative offenses according to a schedule established and amended from time to time, by Resolution of the City Council; and, WHEREAS, it is the desire of the Columbia Heights City Council to amend said administrative offense penalty schedule. THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights that the administrative offense penalty schedule is amended as listed. #9Approve Refuse/Recycling contract with BFI Waste Systems Fehst stated that Jean Kuehn, Special Projects Coordinator, oversaw the contract negotiation and did a very good job. The initial cost reduction was $30,000 plus $4 per ton if State funds remained. The City Council authorized discussions with BFI and Waste Management, which resulted in an additional $192,000 savings based on all levels of service with BFI. An advantage is there will be no disruption of service. This five year contract will stay at the same rate for two years and increase 1.5 percent each year after that. There would still be three levels of service. An added feature in 2005 would be electronics collection, and a pilot project for single sort recycling, which would be all recycling in one bin with twice a month pickup. Motion by Williams to authorize the Mayor and City Manager to enter into a contract with BFI Waste Systems for refuse/recycling/yard waste removal effective January 1, 2005 - December 31, 2009, and to use the savings to reduce any tax increase for next year. Fehst refen'ed to the memo fi'om the Finance Director, which indicates the supplementation of collection costs with fund balances. He suggested consideration of a franchise fee to benefit our operating expenses. Williams indicated reducing taxes by this cost savings would soften any tax increase and could be reviewed next year. Elfite stated the rates were reduced in 2000, necessitating the use of fund balances. Ericson stated Council should first decide on the contract and discuss tax reductions in the budget hearings. Williams wanted to make the commitment tonight. Ericson stated that we have not adopted a budget yet, only set the maximum levy. City Council Minutes October 25, 2004 Page 6 of 17 Nawrocki questioned if the negotiation process was legal. Hoeft stated yes. Nawrocki indicated that the contract would include the savings of no charge for pickup of City refuse. Fehst stated that was reduced from $3,000 down to zero. Nawrocki stated the saving should be passed on to the consumer. He referred to the current percentage of budgeted funds spent, which could result in a fund balance increase and should be used to reduce the tax increase. Motion seconded by Nawrocki. Hoeft restated the motion and amendment. Kelzenberg stated that we are currently subsidizing this fund from our fund balance, so we are operating at a loss. We can not pass on savings if we are operating at a loss for the last five years. Elrite stated that the fund has operated in the red since 1999. We have not passed on the increase in costs, but continued to take fi'om the reserves, and we have severely depleted our fund balance. Upon vote: Kelzenberg, nay; Willimus, aye; Ericson, nay; Nawrocki, aye; Wyckoff, nay. 3 nays - 2 ayes. Motion failed. Motion by Ericson, second by Kelzenberg, to authorize the Mayor and City Manager to enter into a contract with BFI Waste Systems for refuse/recycling/yard waste removal effective January 1, 2005 - December 31, 2009. Upon vote: Ayes - Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. Motion by Nawrocki that the matter of refuse fund cost and savings be discussed at a work session. Second by Williams. Upon vote: Ayes - Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. #10. Adopt Resolution 2004-67, being a Resolution amending Resolution 2004-23 authorizing certain Charitable Gambling. Fehst read the amendment change allowing for a monthly pull-tab booth rental rate of $1,700, all- inclusive, dependent on sales volume. This amendment was a request from the Columbia Heights Athletic Boosters. Nawrocki referred to the letter fi'om the Star Bar owner. He indicated the purpose of pull tab sales was to raise money for charitable purposes in the conununity and the rental fee should be negotiated between the property owner and pull tab owner. Wyckoff indicated that the property owners do not have to raise their fees. Jerry Foss, 4412 2nd Street, Gambling Manager for the Athletic Boosters, indicated their group feels this is fair and being done throughout the State to put everyone into aligmuent. You can negotiation a better contract. Motion by Kelzenberg, second by Ericson, to waive the reading of Resolution 2004-67, there being ample copies available to the public. Upon vote: Ayes - Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. Motion Kelzenberg, second by Ericson, to adopt Resolution 2004~67, being a Resolution amending Resolution 2004-23 authorizing certain Charitable Gambling. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 4 ayes - 1 nay. Motion carried. RESOLUTION NO. 2004-67 BEING A RESOLUTION AUTHORIZING CERTAIN CHARITABLE GAMBLING City Council Minutes October 25, 2004 Page 7 of 17 BE IT RESOLVED by the City of Columbia Heights that gambling, as described in Mirmesota Statute 326 shall be prohibited in all bars and liquor establishments within the City which are licensed pursuant to Section 5.501, 5.503, 5.504, 5.505, 5.506, or 5.57 of the City Code unless: 1.The organization wishing to gamble obtains the permission of the Minnesota Charitable Gambling Control Board; 2.The organization wishes to gamble obtains the permission of the Council of the city of Columbia Heights; 3.The organization wishing to gamble has been in existence in Columbia Heights for not less than ten years; 4.The organization wishing to gamble is a bona fide club; 5.The organization wishing to gmnble does not pay the proprietor of the licensed premises a rental or lease payment in excess lk/Frxi ~2'T'AT e/Il3 =~- Q ........... .4~.4 that allowed by MN Stat.349.18 sub. 1, and as amended. No other payment, set-off, or credit, of any kind, other than as set forth above, shall be paid to or on behalf of the proprietor, or any company or vendor providing any service or goods to or on behalf of the proprietor. 6. A license fee not subject to a waiver shall be paid to the City of Columbia Heights ha the mnount of $250 for Class A and Class B licenses and $25 for Class C and Class D licenses. License fees shall not be prorated or refundable. Not withstanding anything to the contrary herein, an existing Class A or Class B licensee shall pay a license fee of $25 for any event, of three days or less, to be conducted at a location other than the established license location. 7. If the organization is determined to be in violation of any of the terms or conditions of this Resolution, any authorization hereunder previously granted to conduct said gambling activity may be immediately suspended until such violation(s) is/are con'ected. Any such determination of violations(s) and any suspension hereunder shall be made as follows: a. At a meeting open to the public; and b. After a minimum often (10) days notice to the organization; and c. After providing the organization with the opportunity to present its position at said meeting; and d. By a simple majority vote of the City Council. NOW, THEREFORE, BE IT RESOLVED that this resolution shall take effect on October 25th and shall replace Resolution 2004-23. PUBLIC HEARINGS Adopt Resolution 2004-55, Adopting a Modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopment Project and Establishing the Huset Pm'k Area TIF District and TIF Plan Randy Schumacher, Assistant CmTnnunity Development Director, stated that Resolutions 2004-55 and 2004-54 are the last two actions necessary prior to the demolition of the buildings and removal of soil for Phase I of the industrial area. Schumacher listed actions prior to this such as amending the Comprehensive Plan, changing zoning in the area, approving the development agreement, and lifting the moratorium. Steve Bubul, Kennedy and Graven Chartered, summarized the resolution, which establishes the new TIF District and modifies the redevelopment plan. This is a pay as you go redevelopment tax increment financing district that includes twelve parcels and meets the requirements of State and HRA law. Currently, more than fifty percent of the buildings are substandard. The project area is occupied with enviromnent contamination and redevelopment would not occur without tlfis type of financing. Mark Ruff, Ehlers and Associates, financial consultants for the City, indicated that the financial plan has been shared with Anoka County and School District #13, receiving favorable comanents. He stated that the amount of $36,000,000 and 26 yem's for repayment are the full extent of the amount the City could use, and could include other projects throughout the City. This would allow for land acquisition, site improvements, grading, enviromnent costs not covered by State grants, and portions of the interior and parkway improvements. Ruff indicated that the project anticipates 560 housing units and 13,000 square feet of commercial area over a five year period. If the marketed amount is $125,000,000, the amount of assistance requested would be $8,000,000 in TIF. Additional costs could be overruns on acquisition, relocation, site improvements and demolition, which would be financed by the developer. There would be no bonds, and interest would be another $4,000,000. Ruff stated that TIF would be anticipated at approximately $12,000,000 over an eleven to twelve year time frame through phases. Use of surplus TIF would need to be decided within five years, after which the district would be closed. Wyckoff stated that the cmmnent of there being 26 years before taxes are collected is incon'ect, with a con'ect estimate of 13 years. Ruff stated that cun'ent taxes received are less than $70,000 for the City, City Council Minutes October 25, 2004 Page 8 of 17 County, and School District and have been declining yearly. The schools will continue to receive their operating budget taxes, which would actually increase to $128,000. The City would continue to receive the current amount. Wyckoff asked Mr. Ruff to explain pay as you go financing. Ruff indicated that because of the risk reduction, most cities use pay as you go financing, whereby the developer must buy the property, pay for improvements, streets, and utilities, and either develop the property themselves or sell the land. Ruff stated that if the developer would go out of business, the City would hold no responsibility. Williams questioned administrative costs. Ruff indicated the City could capture up to $100,000 for administrative costs. Nawrocki stated displease at removing sixty percent of our industrial property frOll_l the tax rolls, and placing high-density housing in this area. High-density rental housing can cause many problems. Nawrocki stated that all agreements and documents to be approved indicated 26 years of TIF, but he would feel better with an $18,000,000 limit. He stated that the development would demand additional City sex~'ices that taxpayers will have to cover. Wyckoff questioned when the schools would receive $128,000. Ruff indicated within five years, possibly receiving $25,000 the first year. He stated that the schools would benefit by increase enrollment. Wyckoff indicated that high-density areas such as the LaBelle condos have not been a problem. Wyckoff indicated she would love to see more businesses come into the City, m~d that this area has a beautiful view of downtown Milmeapolis and is ideal for colrnnuting downtown. Ruff stated that with home sale prices estimated at $225,000 to $250,000, rental would be unlikely. Williams stated his belief that the City must move forward and reemphasized that this project would require only twelve-years, of TIF. If it goes beyond that, the developer must share twenty percent of the cost. Fehst indicated that 100 percent of the up front money comes from the developer. Nawrocki stated that there is a higher interest rate for Pay as you go projects. Wyckoff asked if there were any colrnnents fi'om the audience. There were none. Wyckoff closed the public hearing. Motion by Ericson, second by Kelzenberg, to waive the reading of Resolution 2004-55, there being an ample amount of copies available to the public. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. Motion by Ericson, second by Kelzenberg, to Adopt Resolution 2004-55, Adopting a Modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopment Project and Establishing the Huset Park Area Tax Increment Financing District therein and Adopting a Tax Increment Financing Plan therefore. Motion to amend by Nawrocki, that the TIF amount of $36,000,000 be reduced to $18,000,000. Motion seconded by Williams. Upon vote: Kelzenberg, nay; Williams, aye; Ericson, nay; Nawrocki, aye; Wyckoff, nay. 3 nays - 2 ayes. Amendment to the motion failed. Upon vote of the original motion: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 4 ayes - 1 nay. Motion carried. RESOLUTION NO. 201)4-55 RESOLUTION ADOPTING A MODIFICATION TO THE DOWNTOWN CENTRAL BUSiNESS DISTRICT (CBD) REVITALIZATION PLAN FOR THE CBD REDEVELOPMENT PROJECT AND ESTABLISHiNG THE HUSET PARK AREA TAX iNCREMENT FiNANCiNG DISTRICT THEREiN AND ADOPTiNG A TAX iNCREMENT FiNANCiNG PLAN THEREFOR. City Council Minutes October 25, 2004 Page 9 of 17 BE IT RESOLVED by the City Council (the "Council") of the City of Columbia Heights, Mhmesota (the "City"), as follows: Section 1. Recitals. 1.01. The Board of Commissioners (the "Board") of the Columbia Heights Economic Development Authority (the "EDA") has heretofore established the CBD Redevelopment Project (the "Project Area") and adopted the Downtown CBD Revitalization Plan therefor. It has been proposed by the EDA and the City that the City adopt a Modification to the Dowa~town CBD Revitalization Plan for the Project (the "Project Plan Modification") and establish the Huset Park Area Tax Increment Financing District (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Project Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"), alt pursuant to and in conformity with applicable law, including Mi~mesota Statutes, Sections 469.001 to 469.047, Sections 469.090 to 469.1082, and Sections 469.174 to 469.1799, all inclusive, as amended, (the "Act") all as reflected in the Plans, and presented for the Council's consideration. 1.02. The City has investigated the facts relating to the Plans and has caused the Plans to be prepared. 1.03. The City has performed all actions required by law to be perforn~ed prior to the establistnnent of the District and the adoption and approval of the proposed Plans, including, but not limited to, notification of Anoka County and Independent School District No. 13 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Plans by the City Plmmh~g Conmfission, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the "Reports") relating to the Plans and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Plans. The Reports include data, information and/or substantiation constituting or relating to the basis for the other tTmdings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. 1.05 The City is not modifying the boundaries of the Project, but makes specific findings as further described in this resolution regarding the conditions of the area within the Project that are the boundaries of the proposed TIF District. Section 2. Findings for the Adoption of the Project Plan Modification. 2.01. The Council finds that the portion of the Project Area encompassed by the boundaries of the TIF District constitute a "blighted area" within the meaning of Minnesota Statues, Section 469.002, Subd. 11. 2.02. The Council further f'mds that acquisition, clearance, and related activities to redevelop the TIF District portion of the Project Area, all in accordance with the Project Plan and the TIF Plan, constitute a "redevelopment project" within the meaning of Minnesota Statues, Section 469.002, Subd. 14. 2.03. The Council further finds, declares and detennines that the City made the above £mdings stated in this Section based on the supporting facts described in Exhibit B. Section 3. Findings for the Establislunent of the Huset Park Area Tax Increment Financing District. 3.01. The Council hereby finds that the District is in the public interest and is a "redevelopment district" under Mimaesota Statutes, Section 469.174, Subd 10(a)(1). 3.02. The Council further finds that the proposed redevelopment would not occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan, that the Plans conform to the general plan for the development or redevelopment of the City as a whole; and that the Plans will afford maximmn opportunity consistent with the sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. 3.03. The Council further f'mds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. 3.04. The City elects to calculate fiscal disparities for the District in accordance with Minnesota Statutes, Section 469.177, ~- 1 ou~, .... clause a, which means the fiscal disparities contribution wou,d be taken from outside the District. Section 4. Public Purpose 4.01. The Council ffmds that adoption of the Plans conforms in all respects to the requirements of the Act and will help fulfill a need to redevelop a portion of the Project Area that is characterized by blight, occupied by substandard buildings, and contalninated with pollutants; and that the fmancial assistance described in the TIF Plan will revitalize this area, significantly expand the amount and variety of housing stock in the City, and expand the tax base; and that, because these benefits would not accrue without the assistance provided, any benefits received by private redevelopers are incidental to the broader benefits achieved by the overall redevelopment of the TIF District. Section 5. Approval and Adoption of the Plans. 5.01. The Plans, as presented to the Council on this date, including without limitation the f'mdings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the Executive Director of the EDA. 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. City Council Minutes October 25, 2004 Page 10 of 17 5.03 The Auditor of Anoka County (the "Auditor") is requested to certify the original net tax capacity of the District, as described in the TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the City is authorized and directed to forthwith transmit this request to the Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 5.04. The Executive Director of the EDA is further authorized and directed to file a copy of the Plans with the Commissioner of the Mim~esota Department of Revenue pursuant to Minnesota Statutes 469.175, Subd. 4a. B) Adopt Resolution 2004-54, approving the elirnination of parcels froli1 the TIF 4 Multi Use Redevelopment Project (MURP) K2 TIF District Ruff indicated this Resolution would close the old TIF district as some parcels in the new district were in the old district. He stated that they would continue to pay taxes. Motion by Kelzenberg, second by Ericson, to waive the reading of Resolution 2004-54, there being an ample amount of copies available to the public. Upon vote: Ayes: Kelzenberg, Willimns, Ericson, Nawrocki, Wyckoff. Motion carried. Motion by Kelzenberg, second by Ericson, to Adopt Resolution 2004-54, a Resolution Approving the Elimination of Parcels from the TIF 4 Multi Use Redevelopment Project (MURP) I<2 Tax Increment Financing District within the Central Business District Redevelopment Project in the City of Columbia Heights. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. RESOLUTION NO. 2004-54 RESOLUTION APPROVING THE ELIMINATION OF PARCELS FROM THE TIF 4 MULTI USE REDEVELOPMENT PROJECT (MURP) K2 TAX INCREMENT FINANCING DISTRICT WITHIN THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT IN THE CITY OF COLUNIBIA HEIGHTS. WHEREAS, on September 28, 1989, the City of Columbia Heights City Council (the "City) established TIF 4 Multi Use Redevelopment Project (MURP) K2 Tax Increment Financing District (the "TIF District") within its Central Business District Redevelopment Project; and WHEREAS, the Columbia Heights Economic Development Authority (the "EDA") is the administrative authority for the TIF District; and WHEREAS, the TIF District, in part, included the following parcel numbers, which were previously certified in the TIF District (the "Parcels"): 35-30-24-34-0013 35-30-24-34-0014 35-30-24-34-0040 35-30-24-43-0060 35-30-24-43-0047 35-30-24-34-0035 35-30-24-34-0039 35-30-24-34-0024 35-30-24-34-0041 35-30-24-34-0003 35-30-24-34-0004 35-30-24-34~0002 WHEREAS, the Parcels have been excluded from the original tax capacity of the TIF District pursuant to Mim~esota Statues, Section 469.176, Subd. 6 (the so-called "knock-down role"); and W~-iEREAS, the City desires by tiffs resolution to cause the elimination of the Parcels £rom th~ TIF Dis~ric~ ~hereby reducing the size of the TIF District; and WHEREAS, the City and EDA are authorized to modify the TIF District by eliminating one or more parcels without the notice and hearing required for approval of an initial plan if they agree that, notwithstanding Minnesota Statutes, Section 469.177, Subd. 1, the original net tax capacity of the TIF District will be reduced by no more than the current net tax capacity of the parcels eliminated from the TIF District; and WHEREAS, while the Parcels have been "knocked down," their current net tax capacity is less than the original net tax capacity of those Parcels when originally certified. NOW THEREFORE, BE IT RESOLVED as follows: 1. The tax increment financing plan ("TIF Plan") for the TIF District is hereby modified to remove the Parcels fi'om the TIF District, effective for taxes payable in 2005. 2. In accordance with Minnesota Statutes, Section 469.175, Subd. 4(e)(2)(B), the City elects that the original net tax capacity of the TIF District will be reduced by no more than the current net capacity of the Parcels. 3. Upon approval of a similar resolution by the EDA, staff are authorized and directed to attach a copy of this resolution to the TIF Plan for the TiF District in City files, file a copy of this resolution with the County Auditor of Anoka County along with instructions to adjust the records for the TIF District accordingly, and file a copy of the resolution with the Mim~esota Commissioner of Revenue. City Council Minutes October 25, 2004 Page 11 of 17 c) Adopt Resolution 2004-75, being a Resolution for Rental Housing Revocation at 1324-26 Circle Terrace Blvd. N.E. Motion by Kelzenberg, second by Williams, to waive the reading of Resolution 2004-75, there being ample copies available to the public. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. Motion by Kelzenberg, second by Williams, to adopt Resolution 2004-75, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to Ordinance Code Section 5A.408(1) of the Rental License held by Edward Fragale regarding rental property at 1324-26 Circle Ten'ace Blvd. N.E. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. RESOLUTION 2004-75 RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS APPROViNG REVOCATION PURSUANT TO ORDiNANCE CODE SECTION 5A.408(1) OF THAT CERTAIN RESIDENTIAL RENTAL LICENSE HELD BY EDWARD FRAGALE (HEREiNAFTER "LICENSE HOLDER"). WHEREAS, LICENSE HOLDER IS THE LEGAL OWNER OF THE REAL PROPERTY LOCATED AT 1324-26 CIRCLE TERRACE BLVD. NE, COLUMBIA HEIGHTS, MINNESOTA, AND WHEREAS, PURSUANT TO COLUMBIA HEIGHTS CODE SECTION 5.104(1)(A), WRITTEN NOTICE SETTiNG FORTH THE CAUSES AND REASONS FOR THE PROPOSED COUNCIL ACTION CONTAINED HEREiN WAS GIVEN TO THE LICENSE HOLDER ON SEPTEMBER 8, 2004 OF A PUBLIC HEARING TO BE HELD ON OCTOBER 25, 2004. NOW, THEREFORE, iN ACCORDANCE WITH THE FOREGOiNG, AND ALL ORDiNANCES AND REGULATIONS OF THE CITY OF COLUMBIA HEIGHTS, THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS MAKES THE FOLLOWING: FINDiNGS OF FACT 1. That on July 1, 2004, Matt Field, inspector for the City of Columbia Heights, inspected the property and noted two violations. Compliance orders listing the violation were mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 2. That on August 12, 2004, Matt Field, inspector for the City of Columbia Heights, reinspected the property and noted two violations. Compliance orders listing the violation were mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 3. That on September 8, 2004, Matt Field, inspector for the City of Columbia Heights, reinspected the property and noted one violation. Compliance orders listing the violation were mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 4. That on October 5, 2004, Matt Field inspected the property and noted one violation. Compliance orders and a Statement of Cause were mailed by certified mail to the owner at the address listed on the Rental Housing License Application. 5. That based upon said records of the Enfbrcement Office, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to-wit: a. FAILURE TO CORRECT VIOLATION OF THE RESIDENTIAL MAINTENANCE CODE: i. Shall cut/trim/remove all/any scrub gro~vth from the north side of the house. b. FAILURE TO SUBMIT REINSPECTION FEES OF $500.00 6. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 5A.306(1) m~d 5A.303(1)(d). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F6493 is hereby revoked/suspended (cross out one); 2. The City will post for the purpose of preventing occupancy a copy of this order on the buildings covered by the license held by License Holder; 3. All tenants shall remove themselves from the premises within 60 days from the first day of posting of this Order revoking the license as held by License Holder. CONCLUSIONS OF COUNCIL 1. That the building located at 1324-26 Circle Terrace Blvd. N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Compliance Order attached hereto, 2. That all relevant parties and parties h~ interest have been duly served notice of this hearing and any other hearings relevant to the revocation or suspension of the license held by License Holder. City Council Minutes October 25, 2004 Page 12 of 17 3. That all applicable rights and periods of appeal as relating to the license holder, owner, occupant or tenant as the case may be, have expired or such rights have been exercised and completed. r)) Public Hearing called for Revocation/Suspension of Rental Housing License at 1308-1310 Circle Terrace Blvd. Mayor Wyckoff closed the Public Hearing regarding the revocation or suspension of the Rental License held by Edward Fragale regarding rental property at 1308-1310 Circle Ten-ace Blvd in that the Property complies with the Residential Maintenance Code. Deb Bucher, 1310 Circle Te~Tace, questioned her rights as a tenant and indicated the landlord has maintained the other half of this duplex but will not do repairs on her portion. Gary Gorman, Assistant Fire Chief, stated their job is to enforce the Housing Maintenance Code. A complaint inspection can be conducted and the code can be enforced. Nawrocki requested she receive a written response on the interior inspection, with City Council receiving a copy. Gonnan described the smoke damage to tlu'ee units at 980 44th Avenue. E) Adopt Resolution 2004-73, Resolution of the City Council of the City of Columbia Heights Declaring the Property at 4901 5th Street NE a Nuisance and Approving the Abatement of Violations Gorman showed pictures of the property and described the process leading to the request for abatement. There is a frame for a garage that is now falling down and needs to be removed. Nawrocki questioned the stares of removal for the garage damaged by fire at 4232 5th Street. Gorman stated the insurance investigation is complete and is under the building permit process for demolition. Nawrocki questioned the transitional housing at 1004-1006 Gould and the number of persons living there. Gorman stated this is owned by the Salvation Anr~y, which currently houses three veterans who are allowed to live there for up to one year. Wyckoff indicated that no drags or alcohol are allowed and the transitional housing is to integrate the veterans back into society. This is a new program that is being observed nationwide. Nawrocki questioned if they have a rental license. Gomqan stated they are licensed as a duplex. He stated that a two bedroom unit could house six people. We do not license the number of people, only the number of bedrooms. Nawrocki questioned if the egress windows installed in the basement would allow more units. Gorman stated they would have to meet zoning requirements and follow the building penrfit process. Wyckoff stated that there have been no police calls to this duplex. Motion by Ericson, second by Nawrocki, to waive the reading of Resolution 2004-73 there being ample copies available to the public. Upon vote: Ayes: Kelzenberg, Williarns, Ericson, Nawrocki, Wyckoff. Motion carried. Motion by Ericson, second by Nawrocki, to adopt Resolution 2004-73, Resolution of the City Council of the City of Columbia Heights Declaring the Property at 4901 5th Street NE a Nuisance and Approving the Abatement of Violations fi'om the Property Pursuant to City Code Section 8.602. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. RESOLUTION 2004-73 LESOLUTION OF THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS APPROViNG ABATEMENT OF ORDiNANCE VIOLATIONS PURSUANT TO CHAPTER 8, ARTICLE VI, SECTION 1 OF CITY CODE, ORDiNANCE VIOLATIONS EXIST ON PROPERTY OWNED BY DONALD WOODS (HEREiNAFTER "OWNER OF RECORD"). WHEREAS, OWNER OF RECORD IS THE LEGAL OWNER OF THE REAL PROPERTY LOCATED AT 4901 5TM STREET N.E., COLUlVlBIA HEIGHTS, MINNESOTA, City Council Minutes October 25, 2004 Page 13 of 17 AND WHEREAS, PURSUANT TO COLUMBIA HEIGHTS CODE SECTION 8.602(1)(B), WRITTEN NOTICE SETTING FORTH THE CAUSES AND REASONS FOR THE PROPOSED COUNCIL ACTION CONTAINED HEREIN WAS SENT VIA 2ERTIFIED AND REGULAR MAIL TO THE OWNER OF RECORD ON OCTOBER 14, 2004. NOW, THEREFORE, IN ACCORDANCE WITH THE FOREGOING, AND ALL ORDINANCES AND REGULATIONS OF THE CITY OF COLUMBIA HEIGHTS, THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS MAKES THE FOLLOWING: FINDINGS OF FACT 1. That on September 9, 2004 an inspection was conducted mad tin'ce violations were noted, one violation was of a serious safety concern and an innnediate compliance order was sent. This order stated that the violation should be corrected immediately. A compliance order was sent by regular mail to the owner of record. 2.That on September 30, 2004 a reinspection was performed a reinspection and noted the violation was not corrected. 3. That on October 14, 2004. An abatement letter detailing the violations and notification of the abatement hearing was sent by certified mail to the owner of record. 4. That based upon said records of the Fire Department, the following conditions and violations of City Ordinance(s) were found to exist, to-wit: 1)Shall IMMEDIATELY remove the illegal structure being built on to the garage. The framing that is up is a danger and must be removed, complete all/any exterior work on the house. This work requires a building permit. (Chapter 5A, Section 5A.205(1)(a), Section 5A.205(1)(g)). 5. That all parties, including the OWNER OF RECORD and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.602(1)(a) and 8.602(1)(b). CONCLUSIONS OF COUNCIL 1. That the property located at 4901 5th Street is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement attached hereto; 2. That all relevant parties and parties in interest have been duly served notice of this heating, and any other heatings relevant to the abatement of violations on the property listed above. 3. That all applicable tights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 4901 5th Street constitutes a nuisance pursuant to City Code. 2. That a copy of this resolution/order shall be served upon all relevant parties and parties in interest. 3. That any motion for summary enforcement shall be served upon all relevant parties and parties in interest. 4. That all sel-vice provided for herein shall be in accordance with Minnesota Statute 483.17, subd. 2 ITEMS FOR CONSIDERATION Other Ordinances and Resolutions 1) Adopt Resolution 2004-68, being a Resolution approving a lot split of the property at 1600 41st Avenue NE/4050 Tyler Street NE Patrick Smith, City Planner, indicated that the applicants Steve Johnson and Anthony Palacino were present and have signed off on the lot split. He stated that after the lot split, all three properties wn~dcl rne.e.t Cqtx[ re.qnirm-ne.nte The. Plnnnino nncl 7oninc~ ~nrnrni~inn [P?.xT~ he. Icl n nnhli~-, he.arin~r and voted to approve the lot split. Smith stated that the two houses on the property would remain, possibly with a third horne to be built. This area is Zoned R1 - single family. Steve Johnson stated tlfis would change 4050 Tyler Street fi'om a non-conforming horne to confonrfing. He stated a home would be for a long time resident that was moving back to Columbia Heights and needs a home to fit their medical needs. Motion by Ericson, second by Kelzenberg, to waive the reading of Resolution 2004-68, there being ample copies available to the public. Upon vote: Ayes: Ke!zenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. Motion by Ericson, second by Kelzenberg, to adopt Resolution 2004-68, a resolution approving a lot split of the property at 1600 41 st Avenue NE/4050 Tyler Street NE, subject to the following City Council Minutes October 25, 2004 Page 14 of 17 conditions of approval that are deemed necessary to protect the public interest and ensure compliance with the provisions of the Zoning Ordinance: 1. The applicant shall provide required utility and drainage easements for all newly created lots and be responsible for the cost of filing and recording written easements with the Anoka County Recorder's Office. 2. The applicant shall pay a parkland dedication fee in the mnount of $3,667 for the one newly created lot. This fee is payable at the time of building pennit application. 3. The property owner of 1600 41st Avenue NE shall be responsible for relocating the water line that cun'ently runs from the rear of the house to the alley. The line shall be rerouted out to 41st Avenue. The property owner shall be responsible for the cost of this relocation. All applicable City requirements regarding street excavation shall be met. 4. Upon approval of a minor subdivision, the applicant shall be responsible for filing the subdivision smwey with the Anoka County Recorder's Office. The minor subdivision shall become invalid if not filed with the Anoka County Recorder within one (1) year of the date of the City Council action. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. RESOLUTION NO. 2004-68 SUBDIVISION REQUEST I, Steven Johnson, and I, Anthony Palacino, hereby request a split of PIN 36-30-24-31-0007 Legally described as: Lot 2, Block 21, Auditor's Subdivision of Walton's 2nd Subdivision, Anoka County, Miunesota. PIN 36-30-24-31-0006 Legally described as: Lot 1, Block 21, Auditor's Subdivision of Walton's 2nd Subdivision, Anoka County, Mim~esota. THE DESCRIPTIONS HENCEFORTH TO BE: Northeasterly Parcel: The East 87 feet of at part of Lot 4, Block 17, Auditor's Subdivision of Walton's 2nd Subdivision, Anoka County, Minnesota. Southerly Parcel: Lot 2, Block 21, Auditor's Subdivision of Walton's 2nd Subdivision, Anoka County, Minnesota, except that part of the North 13 feet thereof which lies west of the East 87 feet thereof. Northwesterly Parcel: That part of Lot 1, Block 21, Auditor's Subdivision of Walton's 2nd Subdivision, ga~oka County, Minnesota, which lies west of the East 87 feet thereof and that part of the North 13 feet of Lot 2 in said Block 21, which lies west of the East 87 feet thereof. Be it further resolved that special assessments of record in the office of the City of Columbia Heights as of this day, against the above described property, are paid. Any pending or future assessments will be levied according to the new split as approved this day. Andy lot split given approval shall become invalid if the resolution, motion or other Council action approving the said lot split is not filed with the County Recorder within one (1) year of the date of the Council action. Bid Considerations 2) Adopt Resolution 2004-74, being a Resolution accepting the bid for building demolition and excavation of contaminated soil in the Industrial Park (Phase 1), Colulnbia Heights, MN. Schumacher stated that the City has received $1,233,000 in grants for clean up in the industrial area Phase I, and has a development agreement with Schafer/Richardson to go ahead with the expenditure of these dollars. ProSource Enviromrtental Engineering prepared and took the bids, which were opened on October 19. Five bids were received. Schumacher requested Council adoption of this Resolution approving demolition and excavation of contamination in Phase I of the industrial area by J. M. Frattalone Company. He stated asbestos removal and demolition would begin in November. City Council Minutes October 25, 2004 Page 1 $ of 17 Schumacher indicated that the bids came in lower than the Engineer's estimate, therefore we will have a surplus of funds, which will be used on future cleanup phases. Motion by Kelzenberg, second by Williams, to waive the reading of Resolution 2004-74, there being ample copies available to the public. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. Motion by Kelzenberg, second by Williams, to adopt Resolution 2004-74, being a Resolution accepting the bid for building demolition and excavation of contaminated soil in the Industrial Park (Phase 1), Columbia Heights, MN. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. RESOLUTION 2004-74 RESOLUTION ACCEPTING BID FOR BUILDING DEMOLITION AND EXCAVATION OF CONTAMINATED SOIL IN THE INDUSTRIAL PARK (PHASE I), COLUMBIA HEIGHTS, MN WHEREAS, pursuant to an advertisement for bids for the demolition of buildings at 3801 5th Street, 510 39th Street (Rayco Corp) and 550 & 600 39th Avenue (Honeywell) and Excavation of Contaminated Soil identified in Phase I of the Industrial Park Redevelopment Plan; bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: (See attached bid spread sheet) AND WHEREAS, it appears that J.M. Frattalone Company is the lowest responsible bidder, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA: 1. The mayor and clerk are hereby authorized and directed to enter into the attached contract with J.M. Frattalone Company in the bid amount of $694,662 for the building demolition and excavation of contaminated soil in the Industrial Park Phase I area according to the plans and specifications as outline in the bid request dated October 13, 2004 and on file in the office of Community Development. 2. The City staff is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed. Other Business Nawrocki requested input in the City newsletter regarding the budget, as he felt it was not totally accurate. He spoke of the history of tax increases and referred to the motion, which failed, to keep the levy at six percent. He referred to reduction in services and using fund balances to tide us over. The newsletter should indicate there are several vacancies on Boards and Commissions. Residents are encouraged to apply, as next spring many current tenr~s will expire. Fehst indicated the history of loss of State Aid. In our operating budget of $8 million, we lost $2.5 million. Our Goals and Objectives are to look at possible savings and revenue sources. Williams indicated that the article was not accurate, as the City Manager asked for a "hold the line" budget and it was the Mayor who asked to include cost of living increases. Williams stated that there are more creative ways to be more efficient. Fehst stated that the budget is a planning document that we continue to try and make more efficient. He requested that Council tell staff what we are doing that does not need to be done. Williams stated that we are not going to reduce Police persormel and every division had suggested ways to increase revenue. Fehst indicated that most of the Police budget is for personnel. Fehst stated that staff would look at revising the newsletter article. Wyckoff stated that we are only asking back what we lost in State Aid, with a 3.5 percent increase in the budget. Nawrocki pointed out information fi'om the green sheet, which indicated that the Fire Department is saving funds by conducting their physical tests in their building instead of renting space in Minneapolis, and COlVanended them. City Council Minutes October 25, 2004 Page 16 of 17 ADMINISTRATIVE REPORTS Report of the City Manager Fehst thanked the City Council for allowing him to attending the National Managers Conference in San Diego. He stated that he stayed a one-half mile trolley ride away for $8 a night, instead of at the conference site for $250 a night. Fehst stated it was a very invigorating and inspiring conference, addressing items like diversity. Report of the City Attorney - none CITIZENS FORUM Wyckoff stated that all cmmnents should be issues, and should not address individual candidates. A Candidates Forum will be held on October 26, beginning at 7:00 p.m. in the City Council Chambers. Lee Stauch, 1155 Khyber Lane, questioned what fund the purchase of Burger King came frona. Fehst stated that the EDA borrowed funds from the City, which would be paid back. Wyckoff listed the cost per square foot of Burger King at $16.90, Hardies at $22.31, Chutney's Indian Grill at $37.80, and Mr. Steak, which is for sale, at $21.70. Stauch questioned plans for the rest of the area and the cost. Fehst stated we would pay the going rate, as this is one of three major areas designated by City Council as a major redevelopment area. Stauch stated that those who contaminated the soil in the industrial area should be required to clean it up. Fehst indicated that they are deceased. Wyckoff stated that we must protect our senior's property values and we can do so by increasing property development. Wyckoff indicated that the Heights Theater owner is considering a development proposal for the Burger King area, which would include theaters and a restaurant. LaiTy Beaman, 3846 Tyler, stated he is having trouble with City Police coming into his yard and making false Police reports. Beaman referred to a computer broken by Police, his neighbor's fence facing the wrong direction, and disagreement with his property tax amount. Wyckoff stated that the County does the property appraisals. Joyce Myer, Jackson Street, stated that the City of Egan, population 36,000, has the same number of council members as we do, but is considering going to a seven lnember council. She felt we have too much govelTnnent. Harold Hoium, 5th Street, indicated the ordinance discussion he requested was not addressed. Aurora Johnson, 3977 Polk Street, disagreed with the use of fund balances to offset budget increases, as they were set up for emergencies. She stated that rental properties should be charged for inspections. Johnson also stated that City Staff does a good job, and that a lot of properties in the City are going stagnant, and we need to do something different to keep our City going. Nawrocki listed some statistics and stated that fund balances have been increasing. Fehst stated that we could get Ms. Johnson information on fund balances and their restrictions. COUNCIL CORNER Nawrocki Monthly financial statements are incorrect because of purchases made without purchase orders. Any item of consequence should not be allowed without a purchase order. Cable televised Mayor's Report has contained personal feelings. Not the proper use of a City sponsored program. The City has printed flyers for the Mayor's program and NEI open house. City Council Minutes October 25, 2004 Page 17 of 17 Things should be kept professional. Ericson Candidate Fol'Ulla tomorrow evening will be televised on cable. Encouraged attendance or viewing, and voting in the upcoming election. Participants in the Make a Difference program should forward their information to JoAlme Student, as Rising to New Heights will highlight projects at a future City Council meeting. Three dozen City employees donated over 50 birthday bags to SACCA. · Values First value for the month of October is non-violence. · Do what we can to promote peace. W¥ckoff In 1977 Council adopted information whereby the audience would not be allowed to make personal attacks. Two weeks ago this happened and she received no support. Attended a conference with the Community Development Director regarding other cities. Columbia Heights will host the Local Govermrtent Officials meeting for Anoka County at Murzyn Hall, spotlighting the City of Columbia Heights. The same presentation scheduled for the elected officials will be given at the Wednesday with the Mayor program at the Library. Encouraged the public to attend the Candidates Debate tomorrow and to vote next week. On Thursday night, Pastor Dan Thompson, Assembly of God Church, will conduct a Crossroads Conversations at 7:00 p.m. There are openings on the Library Board and Human Services Commission. Both commissions meet once a month. Nawrocki stated there is a vacancy on the Police and Fire Civil Service Cmm2ission. Williams Agreed with Ms. Johnson that those causing problems should pay the price. Agreed that the City paid too much for the Burger King property. Agreed with the green sheet, that trashy houses can attract trashy people. Pleased we are clamping down on this. Does not always retract everything said about him. · November values are Caring, Compassion, and Kindness. Pray for the peace of our citizens. Kelzenberg Went on a Police ride-along. Was the first to an'ive at a fire, whereby the Police blocked off the area. Our Police Officers emTt their money. Hope everyone respects them. ADJOURNMENT Mayor Wyckoff adjourned the meeting at 11:05 p.m. Deputy City Clerk/Council Secretary