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HomeMy WebLinkAboutDecember 13, 2004OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING r- CEMBER 13, 2004 The following are the minutes for the regular meeting of the City Council held at 7:00 p.m. on Monday, December 13, 2004 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. Reverend Bill Hugo, St. Matthew's Lutheran Church, gave the Invocation. CALL TO ORDER/ROLL CALL Mayor Wyckoff called the meeting to order at 7:00 p.m. Present: Mayor Wyckoff, Councilmember Williams, Councilmember Nawrocki, Councihnember Ericson, Councilmember Kelzenberg PLEDGE OF ALLEGIANCE - recited ADDITIONS/DELETIONS TO MEETING AGENDA Fehst pointed out a correction to the budget dollar amount on the agenda. PROCLAMATIONS, PRESENTATIONS, RECOGNITIONS AND GUESTS - none CONSENT AGENDA City Manager Walt Fehst took Councihnembers through the consent agenda items. 1) Approve City Council meeting minutes for the November 22, 2004 City Council meeting and December 6, 2004 Truth in Taxation meeting Motion to approve the minutes of the November 22, 2004 regular City Council meeting as presented. Motion to approve the minutes of the December 6, 2004 Truth in Taxation meeting as presented. 2) Accept Boards and Cmmnissions Meeting Minutes Motion to accept the December 7, 2004 minutes of the Planning and Zoning Commission. 3) Establish Work Session meeting date for Monday, January 3, 2005, beginning at 7:00 p.m. in Conference Room 1. Motion to establish a Work Session meeting date for Monday, January 3, 2005 beginning at 7:00 p.m. in Conference Room 1. 4) Nawrocki we need to have a work session on organizational items. Fehst stated that is what this would be. Adopt Resolution No. 2004-85, 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. 2004-85, there being ample copies available to the public. Motion to adopt Resolution No. 2004-85, being a Resolution establishing Senior Citizen Eligibility Standards for Refuse, Sewage Disposal and Water Supply Utility Rates. REoO~,U~ ~ON NO. 2004 - o= 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 City Council Minutes December 13, 2004 Page 2 of 22 WHEREAS, It has been the City's practice to maintain mfifonn 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 maxhnum household income of $24,200 will be eligible for reduced rates. BE IT FURTHER RESOLVED that the above eligibility standard be effective January 1, 2005. s) Adopt Resolution No. 2004-86, being a Resolution establishing a new maximum income of $24,200 for Senior or Retired and Disabled Persons to be eligible for special assessment deferral. Motion to waive the reading of Resolution No. 2004-86, there being ample copies available to the public. Motion to adopt Resolution 2004-86, being a resolution establishing a new maximum income of $24,200 for Senior or Retired and Disabled Persons to be eligible for special assessment deferral. RESOLUTION NO. 2004-86 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, Mim~esota Statutes 435.193 - 435.195 makes it possible for a home rule charter city to pass a resolution establishing standards and guidelines for deterufining 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 COLLrMBIA HEIGHTS: 1. This deferral procedure shall apply only to assessments which are payable in five or more annual installments. 2. 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. 3. 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. 4. This deferral procedure shall not be construed as to prohibit the detenuination of hardship on the basis of exceptional m~d 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. 5. In order to obtain a deferral of an assessment, the homeowner must make application on the forms prescribed by the City Clerk. 6. In granting a d~ferred assessment, the Council shall determine in its resolution approving the assessment roll the amount of interest, if an_y, to be charged on the deferred assessment. 7. 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: a. the death of the owner, provided that the spouse is not otherwise eligible for benefits hereunder; b. the sale, transfer or subdivision of the property or any part thereof; c. if the property should for any reason lose its homestead status; or d. if for any reason the City shall determine that there would be no hardship to require immediate or partial payment. 8. 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. 9. 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. 10. No deferral shall be granted to any owner who has a gross annual household income from all sources in excess of $24,200. 11. No deferral may be continued from year to year unless the owner shall file a renewal application before September 15th of each year. 12. 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. City Council Minutes December 13, 2004 Page 3 of 22 13. 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 Milmesota Statute 435.195 and this Resolution. 6) Adopt Resolution 2004-87 being a resolution designating official depositories and safe deposit access for the City of Columbia Heights. Motion to waive the reading of Resolution No. 2004-87, there being ample copies available to the public. Motion to adopt Resolution 2004-87 being a resolution designating official depositories and safe deposit access for the City of Columbia Heights. Fehst stated that this a yearly order of business. RESOLUTION NO. 2004- 87 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. 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 confn'med. BE IT FURTHER RESOLVED, that any bank or savings and loan located in the State of Mirmesota 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 ffrrn located in the State of Minnesota may be used as a depository for investment purposes so long as the investments comply with the authorized investanents 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, hfformation Systems Director, Information Systems Teclmician. 7) Approve designation of the Sun Focus News as the official City newspaper for 2005 Motion to approve designation of the Sun Focus News as the official City newspaper for 2005 and to authorize the Mayor and City Manager to enter into an agreement with the Sun Focus News for required publications. 8) Fehst indicated that if Council members do not receive this newspaper, to inform staff for follow up. Nawrocld asked b"the rates have increased. Wyckoff stated they are the san?e. Approve application for one-time Gambling Raffle request by Tri-City Hockey Association Motion to direct the City Manager to forward a letter to the State Charitable Gambling Control Board indicating that the City of Columbia Heights has no objection to a one-time raffle event to be City Council Minutes December 13, 2004 Page 4 of 22 conducted by the Th-City Hockey Association on February 11, 2005 at John P. Murzyn Hall, Columbia Heights, Minnesota, and furthermore, that the City of Columbia Heights hereby waives the remainder of the thirty-day notice to the local governing body. 9) Approve School Liaison Officer Contract with School District #13 for 9/1/2004 to 6/9/2005 Motion to authorize the Mayor and City Manager to approve the joint powers agreement with School District #13 for the provision of a police school liaison officer as stipulated in the joint powers agreement for the period of September 1, 2004 through June 9, 2005. Fehst stated this was bro~tght forth before and postponed ~mtil union negations were complete. Chief Tom Johnson stated the cost for the school year is $82, 778. 74, with the School District share being $31,042. 03. 10) Approve designation of parking in front of 700 39th Avenue Motion to recommend the City Council designate "no parking" east of the driveway for 700 39th Avenue, keeping one parking space west of the entrance walk and two parking spaces east of the entrance walk; based on a recommendation by the Traffic Commission. Nawrocki asked the length of the no parking area. Kevin Hansen, Pttblic Works Director; stated 60 linear feet, as recommended by the Traffic Commission. He indicated that currently trucks have difficulty entering the driveway. 11) Change Order No. 1 for the Zone 7A Street Rehabilitation Project - REMOVED 12) Adopt Resolution No. 2004-89, being a resolution ordering the prepm'ation of a report for proposed Zone 7B and Zone lA Street Rehabilitation Program. Motion to waive the reading of Resolution No. 2004-89, there being ample copies available for the public. Motion to adopt Resolution No. 2004-89, being a Resolution ordering the preparation of a report for proposed Zone 7B and Zone lA Street Rehabilitation Program. Fehst stated this stztdy is done yearly for the next schedzded street renovation program. RESOLUTION NO. 2004-89 BEING A RESOLUTION ORDERING THE PREPARATION OF REPORTS ZONE 7B and ZONE lA STREET REHABILITATION PROJECT #0502 WHEREAS, the City Council of Columbia Heights is proposing to rehabilitate local streets in Zone 7B and Zone lA that have not been rehabilitated under the street program. WHEREAS, the City Council intends to assess the benefited property for all or a portion of the cost of the improvement, pursuant to Minnesota Statutes, Section 429.011 to 429.111 (Laws 1953, Chapter 398, as amended), and Section 103B.201 to 103B.251, as follows: 2005-02 ZONE 7B and ZONE lA STREET REHABILITATION PROGRAM NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA that the proposed improvements be referred to Mr. Kevin Hansen, City Engineer, for study and that he is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvements are necessary, cost effective, and feasible and as to whether it should best be made as proposed or in connection with some other improvement, and the estimated cost of the improvement as recommended. i 3) Establish a Hearing Date of January i 0, 2005 tbr revocation or suspension of rental property license at 4800 4th St., 4205 Jefferson St., 1230-32 Circle Terrace Blvd, 3813-15 Pierce St., 4420-22 Monroe St., 4618 Polk St., 1162-64 Cheery Lane, 1401-03 Parkview Lane, 3726 3rd Street Motion to Establish a Hearing Date of January 10, 2005 for Revocation or Suspension of a License City Council Minutes December 13, 2004 Page 5 of 22 to Operate a Rental Property within the City of Columbia Heights against Edgar Letran at 4800 4th Street N.E. Motion to Establish a Hearing Date of January 10, 2005 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Frank Magadance at 4205 Jefferson Street N.E. Motion to Establish a Hearing Date of January 10, 2005 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Jeffrey Anribrose at 1230-32 Circle Terrace Blvd N.E. Motion to Establish a Hearing Date of January 10, 2005 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Shelia Hem~y at 3813-15 Pierce Street N.E. Motion to Establish a Hearing Date of January 10, 2005 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Duncan McClellan at 4420-22 Monroe Street N.E. Motion to Establish a Hearing Date of January 10, 2005 for Revocation or Suspension of a License to Operate a Rental Propen within the City of Columbia Heights against Khalid Mansour at 4618 Polk Street N.E. Motion Establish a Hearing Date of January 10, 2005 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Kathy Crosby at 1162-64 Cheery Ln. N.E. Motion to Establish a Hearing Date of January 10, 2005 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Molly Hobbs at 1401-03 Parkview Lane N.E. Motion to Establish a Hearing Date of January 10, 2005 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against TJ2 Properties at 3726 3rd Street N.E. 14) Approve items listed for rental housing license applications for December 13, 2004. Motion to approve the items listed for rental housing license applications for December 13, 2004. 15) Approve Business License Applications Motion to approve the items as listed on the business license agenda for December 13, 2004 as presented, regarding the new licenses for 2005. 16) 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 110714 through 110965 in the amount of $4,642,137.49. Williams questioned the previous maximulu on the Senior or Retired and Disabled Persons to be eligible for special assessment defen'al. Elrite described the forlnula that is used to determine this alnount. Ericson stated the previous amount was $22,800. Motion by Williams, second by Kelzenberg, to approve the Consent Agenda items, with the exception of City Council Minutes December 13, 2004 Page 6 of 22 item #11. Upon vote: All ayes. Motion carried. (This ntotion was retracted dztring Council Corner) Item #11 Change Order No.1 for the Zone 7A Street Rehabilitation Project Nawrocki questioned the large mnount of the change order in item #11 and if this affects the assessments. Hansen stated $169,000 was for road correction work necessary because of poor soil. $159,000 was for soil correction, digging out unstable soils, replacing it, and adding a geotechstyle fabric. He stated this was included in the engineer's estimate and in the assessments. The total is still under the original estimate. Motion by Ericson, second by Williams, to authorize Change Order No. 1 for additional work, filter fabric, colrnnon excavation, aggregate base material, sidewalk, water main gate valves, catch basins, sanitary sewer service pipe, stop box repair, and sewer and water service laterals to the Zone 7A Street Rehabilitation, City Project No. 0402 to Midwest Asphalt Corporation in the an~ount of $181,393.30 to be funded out of the PIR Fund, or Assessments ($91,287.65), the Infrastructure Fund ($79,973.65), Water Fund ($3,290.00), Sewer Fund ($4,069.00), and State Aid Maintenance ($2,773.00). Upon vote: Ayes: Wyckoff, Willimns, Nawrocki, Ericson, Kelzenberg. Motion carried. PUBLIC HEARINGS A) Public Hearing called for Revocation/Suspension of Rental Housing License at 1132-1134 40th Avenue Mayor Wyckoff closed the Public Hearing regarding the Revocation or Suspension of the Rental License held by Myma Bourcy regarding rental property at 1132-1134 40th Avenue in that the violations on the property have been corrected. B) Public Hearing called for Revocation/Suspension of Rental Housing License at 4935 Universi _ty Avenue Mayor Wyckoff closed the Public Hearing Regarding the Revocation or Suspension of the Rental License Held by Haji Azmn Regarding Rental Property at 4935 University in that the violations on the property have been corrected. ¢) Public Hearing called for Revocation/Suspension of Rental Housing License at 4927 University Avenue Mayor Wyckoff closed the Public Hearing regarding the Revocation or Suspension of the Rental License held by Haji Azmn regarding rental property at 4927 University in that the violations on the property have been corrected. D) Public Heating called for Revocation/Suspension of Rental Housing Revocation at 1308-10 Circle Terrace Mayor Wyckoff closed the Public Heating regarding the Revocation or Suspension of the Rental License held by Edward Fragale regarding Rental Property at 1308-10 Circle Terrace Blvd N.E. in that the violations on the property have been corrected. E) Public Heating - Adopt Huset Park Master Plan Hansen stated this is the overall master plan for Huset Park East and West, which has been in process for over a year. The plan includes athletic fields, play areas, pond, storm water plan, and parking for Murzyn Hall and the park. This final plan recormnendation is made on the basis of public input following several public hearings, and meetings with the Park and Recreation Colmnission and the Huset Park neighborhood group. Jim Mailand, Consultant with Bonestroo Sports, referred to a park drawing and indicated this process began in August 2003. He described the surveys completed and the public meetings held. This design evolved around having a safer facility, while preserving athletic fields. The fields are arranged in a wagon wheel fashion, including a little league field and T-ball field, circulated with about two miles of pathways. On the east park side the plan incorporates a football/soccer field and baseball field as active components. Parking needs were looked at carefully. Included is a concession/score building. There are activity areas, senior m'ea, bocce/horseshoe, gazebo, and patio area. Parking below Murzyn Hall has been moved slightly City Council Minutes December 13, 2004 Page 7 of 22 to the west, maintaining ADA parking. The new part of the park is land that is in the process of being acquired for a passive area, pond, island, and an area for picnicking and hiking. Wyckoff questioned acquisition of this property. Hansen stated the ponding area is part of the new industrial area in exchange for storm ponding. Mailand stated this also incorporates a holne on Mill Street. Hansen stated that the city does own that propelnty. Mailand described the play area for family activities and the east area with a warning house/skate area. There would be an active water spray feature, requiring no supervision as there would be no standing water. He indicated a small area for ponding for major water stonus, and stated the intent to light the balltields. Mailand referred to the cost summary given to Council. Site preparation, ballfield tine grading, parking, trails, playground areas, ponding, site improvements, gazebo, picnic area are estimated at $1,650,000. Items to be phased in would be the concession building, wanning house, and bridge to the island at over $1,000,000, trail lighting at about $360,000, and field lighting at about $420,000. The water spray feature would be $250,000, with an overall total preliminary cost at $3,700,000. This would include contingencies. Hansen recognized funding availability and suggested phasing begin with the $1,600,000 portion. He indicated lighting is a big component. With industrial park dedication and our park dedication fund, sale of Lomianki and grant applications this would not be unreasonable to do in a one to three year phasing. Initially the project was estimated at $2,600,000, but costs have come in at a higher amount. Lighting and the water play feature are the expensive items. The scores building was designed with a second floor and there are other amenities that could be looked at for cost reductions. The plan shown to Council in August showed potential for redevelopment of four residential lots. This has been taken out, but in the furore would be recommended as a separate line item. Hansen asked for adoption of a master plan, as grant applications are due by March 31 st and indicated the importance of Council support to obtain DNR grant dollars. Hansen stated that 100 parcels were notified of tonight's meeting. Wyckoff asked how fields could be used with no lighting and what the anticipated grant amount would be. Hansen stated the importance of lighting and the need to include it in the initial phasing. The most grant funds received in a year would be $250,000. Ericson asked for clarification that approval of the concept plan is not a colmnitment of money. Hansen continued this and indicated the request is to use this plan within the grant application, but it could still be changed. Wyckoff referred to the need for a recreational building. Mailand stated there is limited space and consideration at meetings held indicated a different location would be best. Hansen stated the strong request from the public was to include trails for walking and jogging. Nawrocki questioned where the Jamboree would be held. Hansen stated in the Murzyn Hall parking lot or on Jefferson Street, as it is now. Mailand stated that the trails provide room for these events, allowing for tents and other venues on the eight foot wide trails. Nawrocki questioned arclfitecmral and engineering fees. Hansen stated those fees and construction would be an additional fifteen percent. Nawrocki indicated that we may have to use the Lomianki sale funds for operations and it is premature to approve this plan tonight. Wyckoff indicated this is the first time Council has seen this plan in any detail and asked if it could be held off until January, allowing people time to stop in and look at the plan. Ericson asked that the public process be reiterated. Hansen again described the process. Kelzenberg stated that he liked the plan and would have no problem approving it, but felt it should wait for the new Council to review. City Council Minutes December 13, 2004 Page 8 of 22 Williams questioned the roadway cost. Hansen stated that is a separate item to also be discussed at this meeting. The roadway and infrastructure estimates are $3,000,000. Fehst stated it is conceivable to do the roadway and not do anything on the park or substantially less than shown. The roadway deals with the TIF project and is different from this. Harold Hoium, 4315 5th Street, questioned fire access issues. Hansen asked that this be discussed with the road feasibility report. A resident from 39th and Jackson stated that this is a nice plan, but costs a lot. Ericson stated the understanding that the plan would be tabled, but indicated the importance that as a Council they make a colmnitment. We collect park dedication fees, and we want to attract people. She indicated that we do not have all the funds, but this is the area to find creative ways for funding. Ericson stated that this must be a priority early in the new year. Wyckoff asked that the plan be available for viewing at City hall. Hansen stated that it can also be available at the Library and on Cable TV. Motion by Willimns, second by Kelzenberg, to table discussion of the Huset Park Master Plan. Upon vote: Kelzenberg, aye; Willimns, aye; Ericson, nay; Nawrocki, aye; Wyckoff aye. Four ayes - one nay. Motion carried. F) Public Hearing - Adopt Resolution No.2004-83, being a resolution approving Reallocation of CDBG funds fTom the sale of 4607 Tyler Mark Nagel, Co~rn,nunity Development Assistant, stated this is a reallocation of block grant funds from 4607 Tyler St, and NEI, allowing $32,000 for the demolition of Burger King and $3,400 for the MG building, through Anoka County. Ericson stated the options are to rent out the properties or make way for new development. Nawrocki questioned the fund short fall on the MG store. Fehst stated that we paid $225,000 and received $165,000 from the Block Grant and Tyler sale. Nagel indicated that $81,000 was used for NEI, so we are requesting reallocation of the remaining fund. Nawrocki indicated it would be more prudent to use CDBG funds for 40th Avenue. Randy S chumacher, Assistant Community Development Director, indicated that the closing of MG is scheduled for a cost of $220,000. This reallocation is for surplus CDBG dollars to be used for the removal of that particular building, estimated at $12,000 to $15,000. The recolmrtendation is to put some Block Grant funds into each project. A developer's agreement, which is not yet in place, would lnake up the remaining $75,000. Nawrocki stated it would seem more viable to put in a project at 40th than at Burger King. Ericson stated that if we do develop on 40th Avenue, we would get the dollars required. Wyckoff asked Tom Letness the status of adding on more movie theaters at this site. He stated it is still a go and is looking at financing. Nagel indicated there has been interest shown in purchasing the play equipment and possible sale of internal items. Motion by Nawrocki to waive the reading of Resolution 2004-83, with deletion of the language in the third and fourth section to eliminate Burger King, there being an ample mnount of copies available to the public. Second by Williams. Upon vote: All ayes. Motion carried. Motion by Nawrocki, second by Williams, to adopt Resolution 2004-83, being a Resolution Authorizing a Reallocation of Community Development Block Grant Funding through Anoka County, with deletion of the language in the third and fourth section to eliminate Burger King. City Council Minutes December 13, 2004 Page 9 of 22 Ericson stated she would not vote in favor of the amended resolution, when the initial intent was to buy the building. CDBG should be used to demolish Burger King to make it more desirable for developers and to ease redevelopment. Williams asked if we have purchased Burger ICing. Nagel stated that we have a purchase agreement, and will close in the next 30 days. Nagel stated that we would close before the reallocation demolition funds run out. Upon vote: Kelzenberg, nay; Willimns, aye; Ericson, nay; Nawrocki, aye; Wyckoff, nay. 3 nays - 2 ayes. Motion failed. Mayor Wyckoff closed the Public Hearing. Motion by Ericson, second Kelzenberg, to waive the reading of Resolution 2004-83, there being an ample amount of copies available to the public. Upon vote: All ayes. Motion carried. Motion by Ericson, second by Kelzenberg, to Adopt Resolution 2004-83, being a Resolution Authorizing a Reallocation of Community Development Block Grant Funding through Anoka County. Hoium suggested City Staffremove the buildings to save money. Upon vote: Kelzenberg, aye; Williams, nay; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 3 ayes - 2 nays. Motion carried. RESOLUTION 2004-83 RESOLUTION OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA AUTHORIZING A REALLOCATION OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING THROUGH ANOKA COUNTY WHEREAS, the Department of Housing and Urban Development (HUD) monitors and establishes criteria for the use of CDBG and HOME funds; and WHEREAS, The Anoka County HRA authorized the reallocation of $112,708.60 in CDBG funding from Project #327, 4607 Tyler Street, program income to Project #425, NEI demolition on June 22, 2004; and WHEREAS, the City of Columbia Heights is requesting a reallocation of CDBG funds from project ~425, NEI demolition; and WHEREAS, the City of Columbia Heights is required to publish notice of proposed CDBG reallocation in the local paper, allowing citizens 30 days to comment on the proposed change; and WHEREAS, the City Council must hold a public hearing and consider a resolution to reallocate the funds; and WHEREAS, the Anoka County HRA Board must in turn approve the reallocation request, after which the funds will be Lm_mediately available to the City; and NOW, THEREFORE BE IT RESOLVED that the City of Columbia Heights acts as the legal sponsor for the reallocation of Community Development Block Grant Funds; 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 NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Columbia Heights, Mim~esota has authorized staff to pursue the reallocation of these CDBG funds to be used for proposed CDBG eligible costs associated with the demolition of both the Burger King Restaurant, 3939 Central Avenue NE, and the MGS Building, 322 40th Avenue NE, Columbia Heights; and I certify that the above Resolution was adopted by the City Council and passed this 13th day of December 2004 City Council Minutes December 13, 2004 Page 10 of 22 ITEMS FOR CONSIDERATION Other Ordinances and Resolutions 1) Second reading of Ordinance No. 1478, being an Ordinance changing the street name of Rainer Pass to Rainier Pass Motion by Kelzenberg, second by Ericson, to waive the reading of Ordinance No. 1478, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Kelzenberg, second by Ericson, to adopt Ordinance No. 1478 being an Ordinance changing the street name of Rainer Pass to Rainier Pass. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, aye; Wyckoff, aye. All ayes. Motion carried. ORDINANCE NO. 1478 BEING AN ORDiNANCE CHANGING THE STREET NAME OF RAINER PASS TO RAINIER PASS The City of Columbia Heights does ordain: Section 1: The nmne of Rainer Pass from hmsbruck Parkway to the north corporate limit of the City is hereby changed and shall hereafter be known and renamed as Rainier Pass. Section 2: This ordinance shall be in full force and effect from and after thirty (30) days after its passage. 2) Adopt Resolution No. 2004-92, being a resolution establishing Property Maintenance Inspection Fees Fehst stated that rental units are inspected once every two years and residential inspections are done on a quadrant basis. The current cost of inspections is $129,000 per year, with only $36,000 collected in fees, The resolution shows thi'ee proposals/alternatives for consideration to increase fees to help cover costs. The Fire Dept recomlnends the highest rate, proposal 3A, netting $116,000 or 3B at $117,000. Proposal 1 increases collection to $70,000 and proposal 2 to $93,000. Any increase would be a direct offset to the budget, and the levy could be reduced by this amount. This service cost is substantial and if Council wishes to recover costs where incurred, this is the way to do it. Fehst listed items from the residential maintenance code operating expense table. Gary Gorman, Assistant Fire Chief, indicated that landlords have not received this information. Wyckoff stated that the cost would be $22 per rental unit yearly, with license and revocation fees remaining the stone. Ericson questioned re-inspection fees. Gonnan stated the goal is to not have second and third inspections, with only one re-inspection leading to abatement or revocation. Kelzenberg suggested reducing the cost of certified mail by not requiring return of the green card, and rather checking the status on-line. Lee Stauch, 1155 Khyber Lane, disputed the cost to inspect a rental unit, and the amount of time fire fighters spend on this duty. Fehst stated this is a service fee, and we are fair and accurate on the projections. Stauch questioned what nursing homes pay in taxes. Fehst stated he could get him this information. Stauch stated that this increase was not mentioned at the December 7th landlords meeting. Deb Johnson, 4626 Pierce, stated that fees should go up dramatically, which may help get rid of slumlords. Hoium stated that the landlords should be notified 30 days in advance of any changes. Nawrocki indicated this would be a large cost to building, such as the one with 146 units. Fehst stated that the impetus was fi'om Council for the cost of services to be covered by fees. Wyckoff stated these fees would bring us equal to Brooklyn Center, with only Crystal being higher. Gorman handed out COlranunity comparison information showing that we are the second lowest for single units and fourth lowest for duplexes. Anoka and Osseo do not have rental licensing fees. The highest percentage of work comes in from complaints on storage, garbage, yard problems, etc. City Council Minutes December 13, 2004 Page 11 of 22 Nawrocki asked if a comparison of costs to cal-ry out the program was done and challenged the cost allocation. GonT~an stated that is the amount in the budget. Nawrocki referred to the reduction of waste hauler fees for these units. He stated he could not justify these rates. Fehst read the cost per month for dumpster sex-vice for multi-unit trash service. Nawrocki questioned what the rates for multiple units m'e per unit and the size of vat compared to residential rates. Ericson stated that the garbage issue is interesting and should be looked at separately. She indicated that proposal 3B would be more than double that of coxmuunities around us. Ericson indicated that the cost of doing business is the cost of doing business and we should not be afraid to charge people our cost. We should have well kept rental property and this can be done through the inspection program, while getting the cost from the user. Wyckoff questioned small versus large complex costs. Gonrtan stated that currently bigger complexes pay $6 to $7 per unit and a two unit pays $35 per unit. This proposal would spread the cost over all units. Wyckoff suggested taking the proposal to the landlords for feedback. Ericson questioned why we should do so if this is the cost of doing business. Kelzenberg stated that the landlords should cover costs, but we could compromise and not have the landlord pay all of the cost, as it is a benefit to the City when property is maintained. Gorman stated that landlords would not pay the entire cost in any of these proposals. Nawrocki stated he did not accept these numbers as our a~tual cost. The cost of inspections will only be passed on to the tenants. Vat service to these buildings will also increase on January 1. Willimus indicated there are more costs not mentioned such as administrative and Council time. Fehst stated they also do not include the Special Project Coordinator's or CSO's time spent on complaints. Fehst stated it is hm'd to justify a large increase in one year. Williams complimented Gonuan and suggested we discuss this with the landlords. Nawrocki questioned if each Parkview Villa unit is inspected every second year. Gonuan stated yes, and sooner if a complaint is received. Motion by Williams (on proposal 3B), second by Ericson, to waive the reading of Resolution No. 2004-92, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams (on proposal 3B), second by Ericson, to adopt Resolution No. 2004-92 being a Resolution establishing Property Maintenance Inspection Fees. Ericson clarified where this would put us in comparison to other co~mnunities. City Attorney Jim Hoeft indicated the issue is the ability to justify the cost of the program, not where you end up on the list. Hoium asked that this be tabled to notify property owners. Stauch stated that raising the fees without input from those paying them is a dictatorship. Ericson stated that we have a representative democracy. Gonuan indicated the objective to spread the cost of inspections over all units. Ericson discussed combining alternatives 1 and 3B. Wyckoffagreed more discussion was necessary. If we approve an increase, what would the notification requirements be. Hoeft stated there were no requirements. City Council Minutes December 13, 2004 Page 12 of 22 Ericson stated that we could move to table this item. Heoft stated that would be a priority motion and would supercede the motion on the floor. Fehst stated that we could send out these options to the landlords. Ericson questioned why we should give them special treatment, as it is the cost of being in our colrnnunity. We don't consult other groups when we raise their fees. Motion by Williams to table a resolution establishing Property Maintenance Inspection Fees for further discussion. Second by Ericson. Upon vote: All ayes. Motion carried. Mayor Wyckoffmoved forward on the agenda to item Cl. 7C Other Business 1) Adopt Resolution No. 2004-91, being a Resolution accepting the feasibili _ty report for Huset parkway and ordering the preparation of plans and specifications. Hansen stated that a study was done two years ago regarding necessary public improvements to the industrial area, and was adopted in 2003. This included discussion of a parkway. The industrial area redevelopment ground breaking ceremony was held last week. Sue Mason, SEH, congratulated the City Council and co~rnrtunity on the ground breaking last Thursday. She referred to the report reviewing roadway/utilities and funding options, It covers sewer/water capacity, drainage/water flooding, individual traffic impact study, and intersections. Sewer and water capacities are fine for the change in the land use. There is a 10 inch water main on 5th Avenue that has a high degree of flow loss, and is proposed for replacement. The pond would handle a 2 to 3 inch rainfall and reduce a peak discharge to Minneapolis. The pedestrian walkway would connect to Huset Park. Mason referred to the project cost summary. The sanitary sewer costs are for minor repairs to pipes and the water main. Services to the buildings would be the developer's responsibility. The roadway total project cost for first phase is $3,000,000 with ten percent contingencies, by the developer paying $1,700,000 and the City paying $1,400,000. This would include engineering and legal costs. Williams questioned the estimate of the second phase. Mason stated that because the park plan is not ready to go, there would be $500,000 deducted for the connection to the park. Wyckoff asked Hansen what adopting this would mean. Hansen stated the necessity to adopt this is the 429 process to assess the developer, and to move forward on plans and specifications. He referred to the estimated time frame. Nawrocki stated that the City is being asked to absorb a disproportionate cost by replacing the water main, which is adequate. This developer should cover the cost like the Kanart developer did. Hansen stated that K-mart was a capacity issue, and this is not. Staff looked at this line and there is a 40 percent buildup. Hansen stated that we do this analysis for all reconstruction areas. Kelzenberg thanked Hansen and stated it looks like a 50/50 split and proportionate for what needs to be done for this development to happen. Motion by Kelzenberg, second by Ericson, to waive the reading of Resolution No. 2004-91, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Kelzenberg, second by Ericson, to adopt Resolution No. 2004-91, being a Resolution accepting the feasibility report for Huset Parkway and ordering the preparation of plans and City Council Minutes December 13, 2004 Page 13 of 22 specifications. Nawrocki asked where the City portion would come from. Hansen indicated the City utility funds and the City State Aid account. Nawrocki requested a running cost total on this project. Nawrocki questioned the current balance in the State Aid fund. Hansen stated vew little and that we would be required to borrow an advance for a community projects, which would have a two year payback. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 4 ayes - 1 nay. Motion carried. RESOLUTION NO. 2004-91 BEING A RESOLUTION ACCEPTING THE FEASIBILITY REPORT AND ORDERING THE PREPARATION OF PLANS AND SPECS FOR THE HUSET PARKWAY WHEREAS, The Huset Parkway is a roadway along Jefferson Street from 40th Avenue to 39a~ Avenue, continuing west to 5th Street, and then continuing Southwest along an abandoned railroad right-of-way connecting to 37th Avenue. WHEREAS, the report provides information regarding whether the proposed project is feasible, necessary and cost effective, and The City Council of Columbia Heights hereby receives said report on December 13, 2004. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA 1, The Council will consider the improvement of such streets in accordance with the report and the assessment of abutting or benefited property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the improvement of $3,085,000. 2. A public hearing shall be held on such proposed improvements in the City Council Chambers at 590 40th Avenue N.E. and the City Clerk shall give mailed and published notice of such hearing and improvement as required by law. 3. That the location and extent of such improvements is as follows: The Huset Parkway is a roadway along Jefferson Street from 40th Avenue to 39th Avenue, continuing west to 5th Street, and then continuing southwest along an abandoned railroad right-of-way connecting to 37th Avenue. Work includes required utility reconstruction, sub-base correction, new aggregate base, new bituminous surfacing, new concrete curb and gutter, pond construction, bituminous trail and sidewalk construction, tree planting, a roundabout, restoration, miscellaneous construction items and appurtenances. 4. Such improvement is necessary, cost-effective, and feasible as detailed in the feasibility report. 5. Such improvement is hereby ordered as proposed in the engineering feasibility report December 6th, 2004, as prepared by the finn of SEH and accepted by the council December 13% 2004. · o o" ~ o- be known ,o City, roj~c, N~ ~0 ,-04. 6. These m~provements oh .... 1o,, oo ~ ;,~ , ,, 'm zt 7. The consulting firm of SEH and the City Engineer, Kevin Hansen, is hereby designated as the engineer(s) for this improvement. The engineer shall prepare plans and specifications for the making of such improvement. 2) Authorize engineering final design services for Huset Parkway. Hansen indicated that four finns were initially interviewed, with SEH approved to do the feasibility report in coordination with the developer. As they have done this work on the project, it is appropriate they take us tlu'ough the rest of the project. The cost would be eight percent of the total engineering costs. Central Avenue engineering services were 21 percent. Staffrecmmnended approval of SEH for final design services. Nawrocki indicated this is $220,000 worth of work that we do not have a bid on. Motion by Ericson, second by Kelzenberg, to accept the proposal from SEH for the Huset Parkway City Council Minutes December 13, 2004 Page 14 of 22 Final Design based upon their proposal dated November 30th 2004, in an amount not-to-exceed $222,800; and fUrthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. Nawrocki stated that any agreement for that amount of money, without the competitive proposal process, is not in the City's best interest. Williams asked Hansen's response to Nawrocki's statement. Hansen stated this is similar to the Central Avenue process allowing, due to the complexity of the project, continuation with the sane firm. Professional services do not require bidding, but negotiation or proposal basis. Hansen stated that eight percent is typical for design services. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 4 ayes ~ 1 nay. Motion carried. 3) Suspension of Tobacco License for Oasis Market Hoeft stated this suspension is self-explanatory, with the only question being the length of the suspension and when it would take place. City ordinance states it must be seven days. The licensing clerk requests the suspension be in December and not carried into the new year. Manager Rick Nestive, 5548 Morgan Avenue, Brooklyn Center and Area Manager Josha Severson, 5276 18th Street, Princeton, of the Oasis Market were present to state that the cashier did card the customer and misread the date. All dates are now put into the computer system and verified on the tape. The Area Manager indicated this was an extreme pmxishlnel~t to theln for an employee's lrfistake. The employee has been terminated. Williams stated he also deals with this situation and asked if the City can be more lenient. Hoeft stated the suspension is based on a third violation in 24 months. Ericson stated it is harsh, but the cost of doing business. Ericson stated that we have policies and consequences that we have an obligation to follow. Hoeft stated that our ordinance calls for a minimum seven day suspension, or greater. He pointed out that this process rarely comes forward. Police Chief Tom Johnson listed the dates and fines leading to this suspension request. Ericson questioned how we will control the suspension of sales. Johnson stated that all product will be removed from view and the store will be monitored by patrol officers and plain clothes officers. Motion by Williams, second by Kelzenberg, to suspend the license to sell Cigarettes/Tobacco products of Twin Cities Avanti Stores LLC dba Oasis Market for a period of 7 days, from December 20 through 26, 2004. Upon vote: All ayes. Motion carried. 4) Appeal of decision to deny the 2005 Renewal of Cigarette/Tobacco license for Salem Tobacco Carl Newquist, legal representative for Mr. Salem, indicated that Mi-. Salem advised he wishes to withdraw his appeal. Newquist stated the store will close December 31, 2004. 5) Appeal of decision to deny the 2005 Renewal of Cigarette/Tobacco License for Jerusalem Caf~ Zahira Aquel, Jerusalem Cafe, and her legal representative Carl Newquist appealed denial of her tobacco license, which was denied based on her employment of Mr. Salem. Aquel has discharged Mr. Salem as of November 30th and as such requests reconsideration to grant a tobacco license. The store only sells small amounts of~ipe tobacco. Chief Johnson indicated that with the termination of Mr. Salem, he finds nothing that would stop license approval. Wyckoff questioned the consequences if he returns. Hoeft stated that Mr. Salem can have no ownership or involvement in the business, which would be the responsibility of the owner. City Council Minutes December 13, 2004 Page 15 of 22 Nawrocki questioned if this should be suspended for violation. Hoeft stated that there is no violation. Mr. Salem was an employee and his involvement stopped the re-licensing procedure. Motion by Williams, second by Kelzenberg, to approve the 2005 application for a Cigarette/Tobacco License for Ms. Zahira Aquel, dba Jerusalem Caf6 operating at 4921 Central Avenue NE based on the reco~mnendation of the Police Department and the understanding that Mr. Salem not be any part of the business, ownership or employment. Upon vote: All ayes. Motion carried. 6) Discussion of additional citizen appointments to the EDA Wyckoff suggested this be discussed next year with the new City Council. Nawrocki stated that the EDA makes decisions for the community involving millions of dollars and it is important that elected officials are responsible for actions taken. Wyckoff disagreed, stating that most decisions by the EDA have to come before the City Council and she would prefer more citizen input. 7) Adopt Resolution No. 2004-84, being a resolution adopting a budget for 2005, setting the Ci _ty, Library and EDA lew at $6,241,986 and approving the HRA levy of $161,363 Fehst stated that there were more than a dozen meetings to discuss the budget. He initially reco~rnnended fi:eezing expenditures at the 2004 level for 2005 and 2006, and an increase in 2007 of three percent. This would have resulted in a less than ten percent levy to the County, and with the fiscal disparities and the homestead credit this would have resulted in a 14 percent tax increase. Fehst stated that on a three to two vote the City Council included a $250,000 cost of living increase. Another alternative, with an $114,000 list of add-backs, was presented for Council consideration, along with an alternative to use fund balance amounts. Wyckoff stated that alternate motion two lowers the proposed tax levy, does not use fund balances, adds back one police officer, leaves the special projects coordinator at 40 hours per week, increases the level of the planner, hires a full time building official, helps with fanaily health insurance coverage, and adds back the library surmner reading program. Wyckoffindicated she did not want to use reserve funds. She stated her support for alternate motion #2. Nawrocki gave the history of levies and improvements since he began on the City Council in 1961. He stated that we have lost state aid and this will not improve. Last year the levy was 20 percent and this consideration is another 15 percent. Any changes should be from the document approved last August. Nawrocki asked what reductions were proposed. Fehst indicated a reduction in the Mayor/Council budget and special event projects; and increasing the special project coordinator position, adding a police officer, increasing family health coverage, library surmrter reading program, upgrading the city planner position, and adding a full time building inspector for a total of $136,000. This is a reduction in the $6,241,986 by $136,000 for a new amount of $6,102,537. Nawrocki stated that the City Council cut travel and national memberships and that every department budget should be reduced by the same percentage. Nawrocki stated that per the Stanton Report we do not need the increase to a top planner, or to add another person for inspections. Nawrocki asked the rational to maintain the special projects coordinator at 40 hours when staffrecmmnended the reduction. Fehst stated that the coordinator does an excellent job. The reduction was recommended because the manager's office was required to make the same cuts as other departments. Wyckoff stated that Jean Kuehn is a valuable employee. Nawrocki stated that Council did not dig into the budget. Nawrocki indicated that he has sat through 35 budgets and this is the poorest job ever done evaluating the budget for the city. He pointed out that the Assistant Public Works director and Assistant Finance Director position were filled, not following the staffing reduction by attrition. He stated he has no problem City Council Minutes December 13, 2004 Page 16 of 22 adding back a police officer as suggested in August, but does not know if the other officer should be added. The people we have working for the city are good people that do a good.job. Over the years we have made good changes and progress in the city with services provided, but like a family, when costs go up you must make tough decisions. Wyckoff indicated that Counciha~ember Nawrocki states every year that this is the worst budget process. Williams stated his recollection that the Values First program was cut. He felt is should be removed as Council has not stood up to our Values First program. Ericson stated that just because Council has not lived by these values, it does not mean the program should stop. They should be invited to attend more often. Nawrocki asked how many Anoka County cities are involved. Police Chief Tom Johnson stated that there are several different consortiums involved in Anoka County. Kelzenberg indicated his disappointment in the budget meetings held as there was a problem with not being open-minded. He stated that every time he suggested selling Parkview Villa to save $600,000 it was dismissed. We are now paying for coupon bonds that should have been paid long ago. Ericson stated that residents realize Council spends a lot of time on the budget and can not satisfy everyone. We need to learn from and pay attention to our past. Regarding the Clinton Cop program and removal through attrition, we are not bound to that as we are responsible to our citizens today in the world following 9/11. Rather than looking back at decisions, we must look at our community today. Ericson indicated that different family structures have a different perspective of what they want in City services. We have great development opportunities in the K-mart area, and the industrial park. We need to look at creative ways to pay for some budget items, such as user fees. Ericson stated that we need to have a positive attitude. She stated that she did not hear Mr. Gonr~an bad mouth the community, but speak passionately about the city. Nawrocki stated that he did. Ericson indicated it is in the perspective. Cheryl Beck, 4321 Reservoir, expressed disappointment in this process. Hoium questioned the $643,000 in the Community Development construction fund. Bill Elrite, Finance Director, indicated the breakdown would be in the detailed budget book. Wyckoff requested a motion to adopt the $6,102,537 budget, which includes $161,366 in add backs. Ericson stated that one alternative allows the City Manager's budget as proposed, another includes add-backs in the levy, and the other uses fund balances. Ericson asked what remains in the 2004 budget. Fehst stated he anticipated under spending the 2004 budget by $200,000. Fehst stated the option to use the savings from this year with his proposed budget, or the alternative, to increase taxes below the original levy limit. Elrite indicated that the expenditures in all resolution options do include the add backs; the question is whether to levy for the full amount or use fund balances for add backs. Alternative #2 covers add backs through an increase in the levy, but would still be $136,000 less than levied in September. Ericson asked the difference in the impact of a $150,000 increase versus $136,000. Elrite stated on an average home the increase would be $12 dollars per month, and if we levy only for add backs it would reduce to an increase of $10 per month, and to city manager's budget with fund balances it would be $8 per month. Fehst indicated that we are paying heavily for a half time building official, and with this we would City Council Minutes December 13, 2004 Page 17 of 22 have a full time official. This would still not include a person to administer the Point Of Sale program, but would propose to pay for that service by fees charged. Nawrocki stated that most weeks we pay for more than a half time position. Motion by Kelzenberg to waive the reading of Resolution No. 2004-84, with the $5,991,986 option. Ericson clarified that this would be the City Manager's recommendation and the addition of $200,000, resulting in a 14.6 percent levy. Second by Ericson. Upon vote: All ayes. Motion carried. Motion by Kelzenberg, second by Ericson to adopt Resolution 2004-84 being a resolution adopting a budget for 2005, setting the City, Library and EDA levy at $5,991,988 and approving the HRA levy of $161,366. Wyckoff stated she did not agree with this, as it allows no wiggle room and the city has a lot to do to get back on its feet. Nawrocki questioned the county levy to be canceled. Elrite stated that this includes public improvement bonds, when sold, go to the county auditor and the levy, this says we have collected enough in assessments to cancel the levy. Nawrocki questioned the amount and if this would reduce the 14 percent. Elrite stated $300,000 and if not canceled it would increase significantly. Nawrocki stated he would support this if the $114,000 were not put in at this time and next yem' we could add or subtract with additional funding coming from the general fund. Elrite indicated that if we wait until next year this would require a 4/5 vote, but as part of the budget requires only a 3/5 vote. Elrite refen'ed to the expenses that include the add backs. Upon vote: Kelzenberg, aye; Williams, nay; Ericson, aye; Nawrocki, nay; Wyckoff, nay. 3 nays - 2 ayes. Motion failed. Ericson stated that of the three recon~nended motions, this one allowed for the lowest increase in taxes, and failed. Nawrocki stated that a 15 percent increase is too much. Ericson stated that she was shocked that Williams and Nawrocki, who keep talking less taxes, did not vote in favor of this motion. Motion by Kelzenberg to sell Parkview Villa, build a'con~nunity center, and raise taxes only six percent. Motion failed for lack of a second. Nawrocki stated his understanding that 15 percent is less than 20 percent, but feels it is still too high. Ericson asked Councilmember Nawrocki what he wanted, to which he did not reply. Motion by Wyckoff to waive the reading of Resolution No. 2004-84, with the $6,201,537 option. Second by Kelzenberg. Williams stated that Council should have worked hard, but took the easy way out. Wyckoff stated this would be alternate #2. City Council Minutes December 13, 2004 Page 18 of 22 Ericson called for the question. Upon vote: All ayes. Motion carried. Nawrocki suggested going back to the City Manager's first recmmnendation. Motion by Wyckoffto adopt Resolution 2004-84 being a resolution adopting a budget for 2005, setting the City, Library and EDA levy at $6,102,537 and approving the HRA levy of $161,366. Second by Kelzenberg. Nawrocki stated there is no back to the page of Alternate C or D. Elrite indicated they would remain the same as the original on any resolution adopted. Upon vote: Kelzenberg, aye; Williams, nay; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 3 ayes - 2 nays. Motion carried. Nawrocki stated that this would mean an 18 percent increase in property taxes for 2005. Wyckoff stated that resident's taxes would be lower than the amount they received in the mail from Anoka County. RESOLUTION 2004 - 84 RESOLUTION ADOPTING A BUDGET FOR THE YEAR 2005, SETTING THE CITY LEVY, AND APPROVING THE HRA LEVY. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF COLUMBIA 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 2005 is hereby approved and adopted with appropriations for each of the funds listed below. General Fund Community Development Fund Economic Development Fund State Aid Cable Television Library DARE Project Infrastructure Capital Improvement Capital Equipment Replacement Funds Construction Funds Central Garage Fund Liquor Operating Liquor Capital/Non-Operating Water Utility Fund Sewer Utility Fund Refuse Fund Storm Sewer Fund Data Processing Expense 8,318,543 517,421 246,332 163,984 200,643 636,521 5,375 162,560 499,472 394,598 643,000 494,658 6,987,480 6,210,747 1,951,379 1,421,276 1,540,225 336,037 269,571 City Council Minutes December 13, 2004 Page 19 of 22 Debt Service Fund Total Expense Including Interfund Transfers 2,537,607 33,537,429 Section B. The estimated gross revenue to fund the budget of the City of Columbia Heights for all funds, including general ad valorem tax levies and use of fund balances, as hereinafter set forth for the year 2005: General Fund Community Development Fund Economic Development Fund State Aid Cable Television Library DARE Project Infrastructure Capital Improvements Capital Equipment Replacement Funds Construction Funds Central Garage Fund Revenue 8,318,543 517,421 246,332 163,984 200,643 636,521 5,375 162,560 499,472 394,598 643,000 494,658 Liquor Operating 6,987,480 Liquor Capital/Non-Operating Water Utility Fund Sewer Utility Fund Refuse Fund Storm Sewer Fund Data Processing Debt Service Fund Total Revenue Including Interfund Transfers 6,210,747 1,951,379 1,421,276 1,540,225 336,037 269,571 2,537,607 33,537,429 Section C. The following sums of money are levied for the current year, collectable in 2005, upon the taxable property in said City of Columbia Heights, for the following purposes: 2005 Levy General Fund Levy 5,578,737 Library Levy 438,835 EDA Fund Levy 84,965 Total 6,t 02,537 City Council Minutes December 13, 2004 Page 20 of 22 Section D. The E~ity Council of the City of Columbia Heights hereby approves the Housing and Redevelopment Authority Tax Levy for the fiscal year 2005 in the amount of $161,366, or maximum allowable by statute if less than $161,366. 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 2005 that is higher than the tax rate calculated for the city for taxes levied in 2003, collectable in 2004. BE IT FURTHER RESOLVED: That the city has adequate fund balances and reserves to pay all 2005 General Obligation (Non TIF) Bond principal and interest payments and the county auditor is authorized to cancel all General Obligation (Non TIF) Bond Levies for taxes payable in 2005. The City Clerk is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Anoka County, Minnesota. 8) 9) Adopt Resolution No. 2004-90 being a resolution regarding additional employer contribution to health insurance for 2005. Linda Magee, Assistant to the City Manager, indicated this $70 per month increase would only be for the year 2005 and would be effective January 1, 2005 for non-union and union employees upon entering into an agreement with union employees. Wyckoff questioned single plans. Magee stated that single plans are already covered. Magee stated this would revert back in 2006. Motion by Ericson, second by Kelzenberg to waive the reading of Resolution No. 2004-90, there being muple copies available to the public. Upon vote: All ayes. Motion carried. Motion by Ericson, second by Kelzenberg, to adopt Resolution No. 2004-90, being a resolution regarding additional employer contribution to health insurance for 2005. Upon vote: Kelzenberg, aye; Williams, nay; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 3 ayes - 2 nays. Motion carried. RESOLUTION NO. 2004-90 RESOLUTION REGARDING ADDITIONAL EMPLOYER CONTRIBUTION TO HEALTH INSURANCE FOR 2005 WHEREAS, employer contribution to insurances for eligible union and non-union employees for 2005 were previously negotiated and established; WHEREAS, effective January 1, 2005, health insurance premiums will be increasing 21%; WHEREAS, neither the City nor the unions anticipated this dran~atic an increase in insurance premiums during the course of contract negotiations for the current bargaining agreements; WHEREAS, in an effort to help lessen the impact to employees of the significant premium increase while attempting to minimize the impact on the City budget; BE IT RESOLVED, that the employer will contribute an additional $70 per month for calendar year 2005 for eligible union and non-union employees participating in family health insurance tlu'ough the City; BE IT FURTHER RESOLVED that such change will be effective for union employees once a memorandum of understanding is entered into between the City and the respective union(s). Adopt Resolution No. 2004-88, being a resolution regarding the City Manager's Compensation Ericson stated this increase is in line with what other employees received; two percent effective July 2004 and two percent January 2005. Magee stated that the City Manager would qualify for the increase in family health coverage. Motion by Kelzenberg, second by Ericson, to waive the reading of Resolution No. 2004-88, there being ample copies available to the public. Upon vote: Motion carried. City Council Minutes December 13, 2004 Page 21 of 22 Motion by Kelzenberg, second by Ericson, to adopt Resolution No. 2004-88, being a resolution regarding the City Manager's Compensation. Nawrocki questioned the determination of defe~Ted comp "up to a maximum of' $8,000 per year. Magee suggested replacement of"to an amount equal to" $8,000 per year. Nawrocki stated that there should have been, and there was not, an evaluation of the City Manager this year. He indicated that the City Manager has capabilities he is not using for the city, and he would not vote for the increase. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 4 ayes -1 nay. Motion carried. ADMINISTRATIVE REPORTS Report of the City Manager Fehst acknowledged Mayor Wyckoff on this, her last meeting, and passed on the regards of City Staff and himself for her good will and hard work given to the office of Mayor. He asked that the City Council have a wonderful holiday season. Be safe - don't drink and drive. Fehst thanked the City Council for tonight's civil discourse. Report of the City Attorney - None CITIZENS FORUM Hoium questioned the Manager's salary amount. Fehst stated $92,000. Nawrocki stated plus $8,000, and plus mileage. Cheryl Beck, 4321 Reservoir, questioned if Councilmembers and staff attend conflict of interest training as she felt there is a conflict of interest on the 40th Avenue property. Ericson indicated Councilmembers sign off that they have no conflict of interest. Williams stated that he has abstained from any relative items. COUNCIL CORNER Nawrocki · Indicated why he does not agree with more citizens on the EDA - the meetings are not published and residents are not infonned. Also, Streetar asked Bond Council for opinion, which recommended against it. · Seasons Greetings to everyone and all those on the Council. Ericson Central Middle School - attended their play. Suggested more people attend these events. Her son and Councilmember Nawrocki's granddaughter were in the play. Values First value are caring, compassion and kindness. Wished staff, fellow Councilmembers and those in the City Happy Holidays. Thanked Mayor Wyckoff for her service. Williams · Voted for consent agenda - wished to rescind to abstain on the License approval. Motion by Nawrocki, second by Ericson, to reconsider the consent agenda approval, regarding licenses. Upon vote: All ayes. Motion carried. Motion by Nawrocki, second by Ericson, to approve the consent agenda removing items #15 and #11. Upon vote: All ayes. MOtion carried. City Council Minutes December l 3, 2004 Page 22 of 22 Motion by Ericson, second by Kelzenberg, to approve items on the license agenda for December 13, 2004. Upon vote: Kelzenberg, aye; Williams, abstain; Ericson, aye; Nawrocki, aye; Wyckoff, aye. 4 ayes - one abstain. Motion carried. Goal to have a more active Neighborhood Watch program. Want every block organized in the next four year. Tragedy - last Thursday a woman jaywalking on Central Avenue was hit by a car and killed. Indicated times of the service. Merry Christmas, Happy New year. Continue to pray for the peace and health of our citizens. Thanked Julienne Wyckoff for her service as Mayor. Kelzenberg Thanked Julienne for her service to the residents and City of Columbia Heights. Wished everyone a Happy New Year and Merry Christmas. Referred to budget - did what we have to do, the town has deteriorated and crime has risen. Hope to turn that around in the next few years. Wyckoff Referred to PrOperty on 40th. Earlier in the meeting Nawr0cki suggested demOlition ofprope~, allowing the Peterson project to move forward. Ironic. Saw play at the CAST Theater on Friday - recommended attendance. Thanked staff for what they have done for her. Read a statement on City accomplisbanents. The Secretary of State's web site has document showing a company was fonx~ed 5/10/2004 for Williams and Peterson Real Estate Investments. Referred to redevelopment sites in the City. Thanked her supporters for an honest, clean campaign. Happy New Year and Merry Christmas. ADJOURNMENT Mayor Wyckoff adjourned the meeting at 12:16 a.m. i ~atricia M~scovitz, CMC Deputy City Clerk/Council Sedretary