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HomeMy WebLinkAboutMarch 29, 2004 Work SessionCITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: www. ci. columbia-heights, mn.us ADMINISTRATION NOTICE OF CITY COUNCIL MEETING to be held in the CITY OF COLUMBIA HEIGHTS as follows: Mayor Jalienne ~ckoff Councilmembers Robert A. Williams B/'uce Naw/'ocki Tammera Ericson Brace Kelzenberg CRy Manager Walt Fehst Meeting of: Date of Meeting: Time of Meeting: Location of Meeting: Purpose of Meeting: COLUMBIA HEIGHTS CITY COUNCIL MARCH 29, 2004 7:00 P.M. CONFERENCE ROOM 1 WORK SESSION AGENDA Consent: 1. Pm'chase of two Police vehicles per State of Mim~esota bid 2. Excel Energy lighting replacement proposal for Library's Adult Reading Room 3. Revised 2004 Audit Engagement Letter Discussion: 1. Sanitary Sewer Clem~up Policy. 2. Liquor Relocation Feasibility Study The City of Coltm~bia Heights does not discrhninate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Colmnbia Heights' services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Cotmcil Secretary at 706-3611, to make arrangements. (TDD/706-3692 for deaf or heating impaired only) THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT Or THE PROVISION Of SERVICES EQUAL OPPORTUNITY EMPLOYER CITY COUNCIL LETTER AGENDA SECTION: Consent ORIGINATING DEPARTMENT CITY MANAGER NO. POLICE APPR~: ITEM: Authorize purchase of two 2004 Ford Crown BY: Thomas M. Jolmson BY~.~'/~__~~ NO. Victoria police vehicles per State of Minn. bid DATE: March 23, 2004 DATE: BACKGROUND The State o£Mi~mesota has awarded the contract for the delivery of'police vehicles for 2004. This award is to Superior Ford, ktc. of Plymouth, Mim~esota. The base vehicle price listed in the award for the full size sedan is $19,469. As in past years, the deducts for the full size sedan include, but are not necessarily limited to, engine block heater and rubber floor mats instead of carpet. Add-ons include left side spot light, com-tesy lamps disabled, power fi'ont left seat, white roof and doors, remainder of car black, ch-iver/fi:ont passenger door lock control, rear handles inoperative, lamp pre-wire group, and driver/fi:ont passenger window control. After the deducts and add-ons, the price of the car comes to $20,595. Two each 2004 Ford Crown Victoria vehicles: 4 door, base price with add-ons and deducts Plus sales tax 6.5% $41,190 exempt $41,190 ANALYSIS/CONCLUSION It is our reconn~aendation to the council that our new marked police vehicles be purchased fi:om the State of Minnesota bid, which has been awarded to Superior Ford of Plymouth, Minnesota. RECOMMENDED MOTION: Move to authorize the purchase of two 2004 Ford Crown Victoria police vehicles per the State of Minnesota bid, with funding to come fi:om 431-42100-5150 in the amount of $41,190, and that the Mayor and City Manager are authorized to enter into a contract for same. TMJ:mld 04-036 COUNCIL ACTION: SUPERIOR FORD FLEET & GOVERNMENT SALES 9700 56TM A~E NO PLYMOUTH, MN 55442 FAX # OF PAGES c-hendr2@dealeremail.com Bill Stuad 763-519-6349 Carol Hendrickson 763-519-6351 Wanda Mahaffey 763-519-6373 Fax 763-519-6336 Fax To: AT: Date PH 7~ 3 -- -7cO/., - &~ -FO / MN CONTRACT # 432130 2004 CROWN VIC POLICE INTERCEPTOR POLICE INTERCEPTOR PACKAGE 4.6L V8 ENGINE / AOD TRANSMISSION / 3.27 RATIO POWER LOCKS, WINDOWS, HEATED MIRRORS BUCKET SEAT FRONT - CLOTH FRONT & REAR SPEED CONTROL / TILT STEERING WHEEL AIR CONDITIONING /AMFM STEREO RADIO MAP LIGHT / 5" ROUND HEADER LIGHT REAR WINDOW DEFROSTER I ENGINE BLOCK HEATER ABS BRAKES / LIMITED SLIP REAR AXLE RADIO NOISE SUPPRESSION / CARPET W/FLOOR MATS FR DOOR MOLDINGS IN TRUNK $ 19469.00 TAX & LICENSE NOT INCLUDED IMPORTANT - TO RECEIVE THIS GOV'T PRICING YOU MUST HAVE A FORD FLEET ID# WE FAX CONFIRMATION OF ORDERS RECEIVED - CALL US IF YOU DO NOT RECEIVE FAX CONFIRMATION OF YOUR ORDER PAYMENT IS DUE UPON DELIVERY OF EACH VEHICLE ISSUE SEPA.RATE PO'S FOR EACH VEHICLE IF NECESSARY Fax g,/~ - ~-F~- 7 74;, / EXTERIOR: TM LIGHT GREY BU MED BROWN JL DK TORADOR RED' FS SPRUCE GREEN' DX DARK PEARL BLUE' LK DARK BLUE LM ROYAL BLUE LN LIGHT BLUE MM ULTRA BLUE C2 GOLD ASH* LS LT ICE BLUE .~..I:J~_L~E_~ GREY ~UA~--~OK~ YG MED TITANIUM JP SILVER BIRCH' AQ ARIZONA BEIGE' TV MIDNIGHT GREY' INTERIOR: lAN TOTAL OF OPTIONS FROM PAGE 2 TOTAL FOR EACH VEHICLE $ 19,469.00 $ o'o EXT POWERTRAIN WARRANTY 3YR/OR/75,000 MILES ** ADD $ 975 EXT POWERTRAIN WARRANTY 3YR/OR/100,000 MILES ** ADD $1485 **$50 DED-F__XPIRES YR/MI -WHICHEVER'COMES FIRST TOTAL FOR EACH VEHICLE X # OF UNITS = THANK YOU, PLEASE CALL iF ANY QUESTIONS. SUPERIOR FORD, INC. TOTAL MANUALS $ TAX & LICENSE NOT INCLUDED 1. POWER DRIVER SEAT 21A 327 2. SIDEAIR BAGS 59M 258 3. LH SPOTLIGHT 51A 163 4. VINYL REAR SEAT IW-DK GREY IC-LT GREY IH-TAN 56 5. AM/FM STEREO CASSETTE 58H 159 6. TRUNK ORGANIZER W/KEVLAR FRONT LINER 14T 163 7. RUBBER FLOOR (iN LIEU OF CARPET & FLR MATS ) 128 (108) 8. DELETE RADIO 58B (86) 9. DELETE ENGINE BLOCK HEATER 41H (30) 10. MULTIPLE UNITS KEYED ALIKE KEY CODE //°~/'/X' ORDER CODE /-/...4~)- 43 11. 3.55 REAR AXLE RATIO 730A 138 12. ADD RH SPOTLIGHT 51Y 129 13. CLOTH SPLIT BENCH SEAT PW-DK GRAY PC-LT GRAY PH-TAN 77 '14. ADDITIONAL ROOF REINFORCEMENT 185 69 15. FULL WHEEL COVERS (in lieu of center hub caps) 642 30 16. DELETE 5" ROUND HEADER LIGHT 54M 0 17. COURTESY LIGHTS DISABLED 478 17 .18. SILICONE HOSES W/AIRCRAFT CLAMPS 177 275 19. TRUNK RELEASE ON DRIVERS DOOR (IGNITION POWERED) 61H 0 20. DELETE SPEED CONTROL 525 (194) 21. DELETE RADIO NOISE SUPPRESSION 53M (82) 22. POWER ADJUSTABLE BRAKE & GAS PEDALS 59C 103 23. LOCKS -DRIVER & FR PASS CONTROL ONLY 157 0 24. WINDOWS-DRIVER & FR PASS CONTROL ONLY 948 22 25. TWO TONE PAINT - ACCENT ON ROOF & 4 DOORS 952 387 26. TWO TONE PAINT - ACCENT ON ROOF,HOOD,TRUNK 953 387 27. TVVO TONE PAINT - ACCENT ON ROOF & FR DOORS .955 387 28. BASE POLICE PREP PKG - 65A (NA WITH 66F PDB) 598 29. POLICE PREP PKG - COMPLETE - 68P (NAWITH 66F PDB) 1716 30. VISIBILITY PKG - 65W &68P (REQ68P PKG) 2572 31. VISIBILITY BASE PKG - 65N (NA WITH 68P OR 66F) 1587 32. FRONT POWER DISTRIBUTION BOX (PDB) 66F 82 33. GRILL LAMP, SIREN & SPEAKER WIRING 172 0 34. LAMP PRE WIRE PKG 476 39 35. ROOF WIRING, HOLE IN ROOF 187 : 168 36. ROOF WIRING, NO HOLE IN ROOF 189 73 37. RADIO, 2 WAY PRE WIRE (FR SPKRS INOP FOR AM/FM) 946 39 38. LOCKING GAS CAP 54G 9 39. DELIVERY .50 per mile one way $.50 X. miles = 40. LAMINATED SECURITY SIDE GLASS 68G 254 41. PLASTIC TRIM RINGS (AFTERMARKET- NOT INSTALLED) 50 42. TRACTION CONTROL 553 202 43. FRONT DOOR MOLDINGS INSTALLED BY FACTORY 96C 0 /03 /7 TOTAL OF ALL OPTIONS ADDED TO ORDER .............................. SERVICE MANUAL ELECTRICAL MANUAL EMISSIONS MANUAL PARTS MANUAL ANNUAL TECHNICAL SERVICE BULLETIN (TSB) SUBSCRIPTION COLUMBIA HEIGHTS - CITY COUNCIL LETTER Meeting of: April 12,2004 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY MANAGER'S NO: Library APPROVAL ?. , ITEM: Excel Energy lighting replacement BY: M. Rebecca Loader BY: /,~{~/0,,/../~ proposal for Library's Adult Reading Room DATE: March 24, 2004 DATE: NO: Background: The Columbia Heights Public Library has looked at ways to improve the lighting in the Adult Reading Room for many years. The indirect lighting, originally installed in 1965, utilizes ballasts that emit a hum, are intended for use in exterior lighting situations, and are not energy efficient. In addition, the fixtures require expensive 8' fluorescent bulbs that are not energy efficient, and many of the fixture reflector hoods are either ~ssing or discolored. When the Honeywell retrofit was done on the rest of the building, the Adult Reading Room was not done at the time because Honeywell could not improve the lighting in the room and still retain the energy savings required for their progrmn. Public Works has utilized a progrmrt available through Xcel Energy to hnprove the lighting on the main floor of the Municipal Service Center. Xcel Energy's Energy Efficiency program is still available. Analysis/Conclusion: Xcel Energy's Energy Efficiency program provides incentives through rebates, low interest financing, or a combination of both. In October 2003, staff requested an audit of the Adult Reading Room lighting to identify options available. The audit results are as follows: 1. The existing system utilizes 60 VHO (Very High Output) lamps that generate a yearly energy cost of $2,459.64. The proposed system has 90 fixtures that utilize T-8 (energy efficient) lamps that would generate a yearly energy cost of $995.30. 2. The proposed new lighting system would increase the existing luminance by three thnes. 3. The proposed new lighting system would provide an energy savings of 40.4%. 4. Replacing the existing system with the proposed system would provide a payback of 4.5 years. 5. Xcel Energy would offer rebates for materials and installation totaling at least $894.00. 6. The total calculated project cost is $7,503.00 before rebates. The project requires no up front funding and is paid back through the monthly electrical bills with financing provided by Xcel at a rate of 5.75% for 60 months. Projects require pre-approval. Due to the low financing, energy savings, and a payback under five years, staffis requesting approval of the Xcel Energy Efficiency Progrmn to improve the lighting in the Library's Adult Reading Room. Recommended Motion: Approve the replacement of 60 VHO light fixtures in the Library's Adult Reading Room with a project cost of $6,609 under the Xcel Energy Efficiency Program. COUNCIL ACTION: CITY COUNCIL LETTER 0_3 MEETING OF: APRIL 12, 2004 AGENDA SECTION: OTHER BUSINESS ORIGINATING DEPT: CITY MANAGER NO: FINANCE APPROVAL ITEM: REVISIONS TO AUDIT ENGAGEMENT BY: WILLIAM ELRITE BY: AGREEMENT NO: DATE :'' 03/25/2004 History In 2001 the City entered into a four-year agreement with HLB Tautges Redpath, Ltd. to perform the City's annual audit for years ending 2001 tlr:ough 2004. Under that agreement, the audit cost for the 2003 audit is a base fee of $36,130 plus $3,000 for GASB 34 compliance for a total of $39,130. This fee was low in comparison to some other cities based on the fact that for years the Finance Department staff prepared the actual Comprehensive Annual Financial Report (CAFR) document. This has resulted in an annual audit savings of $8,000 to $10,000. Currently it takes the Assistant Finance Director approximately 140 hours to prepare the CAFR. This is due to her high level of CPA and govermriental accounting experience. It would take less experienced staff considerably longer to complete this report. :-~ .. Current Situation With the resignation of the Assistant Finance Director it is not feasible to have City staff prepare the 2003 CAFR and take advantage of this savings..!~, will be necessary to have the City's auditing fn-m of HLB Tautges, Redpath, LTD. prepare':th~', CAFR. The estimated cost for having them do this is between $8,650 and $10,165, which is comparable to the mr~ount paid by other cities. In checldng costs for the preparation of the CAFR with Faribault, Woodbury, West St. Paul and Fridley, they range from a low of $8,500 to a high of $10,500. Subsequently, the proposal from our auditor is well within the normal range. In addition to this, as was reported in the previous green sheet, auditing standards have changed and now require the auditor to perform a more in-depth investigation and evaluation for fraud. The cost for this additional requirement is $2,500. At this point there is no alternative available to facilitate a clean audit report and acceptable CAFR preparation. From a b.u. dget standpoint, tlfis will not result in an increase to the Finance Department budget. The money saved for the amount of time the Assistant Finance Director position will be vacant Will more than exceed the additional audit expense. ~"' RECOMMENDED MOTION: Move to authorize the Mayor and City Manager to enter into a revised agreement with HLB Tautges, Redpath, Ltd. based On their revised proposal of March 23, 2004 with the additional mmual cost not to exceed $12,665. WE:sms .. 0403252COUNCIL Attachment COUNCIL ACTION: CITY COUNCIL LETTER Meeting of: March 29, 2004 AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: CITY MANAGER NO: PUBLIC WORKS ITEM: SANITARY SEWER ASSISTANCE POLICY FOR .BY: K. Hansen INITIAL CLEANUP OF SANITARY SEWER BACKUPS, DATE: 3/25/0~s~'""~" J DATE: AND COST SHARING FOR BACKWATER VALVES Background: The City of Columbia Heights' sanitary sewer system has periodically experienced surcharging at various locations throughout the City and at various times in the last 30-40 years. A consequence of this is flooding or backups into private property through the sanitary sewer services. One of the most recent and more severe of these occurred in 2003 after a severe rainfall the evening of Jrme 24th and early morning of June 25, measuring 5.47 inches of rain ~ a 3-hour period (exceeding a 100-year storm event). As a direct result, several areas of the City experienced localized flooding fr6m surface water and sanitary sewer system overload (backups). We have also had a recent backup in the 49xx'Block of Madison Street. Analysis/Conclusions: This item was tabled to a work sessionforfi~rther discussion at the MarCh 8th reg~tlar City Council meeting. Staff has developed a policy addressing assistance during instances of sanitary sewer baclmp§'~t3 private property, a copy of which is attached. To provide some background, the following is a listing of the munber ofba6kups, both public and private, that we have responded to over the last 4 years: Public Private 2003 31 37 2002 30 46 2001 13 29 2000 14 36 The City of Columbia Heights averages 20-22 backups on an annual basis. Staff is proposing a policy addressing assistance with the initial cleanup after a backup that would allow a contracted cleaning service to respond to individual properties with · professional services, assistance and advice. Professional firms are trained.in this type of cleanup and have hygienists on staff that can answer and provide more detail on resident questions. The policy p~ovides for a dollar cap recommended $500, (typical homeowner's policy deductible) per property. The City of Columbia Heights has not cleaned basements that had experienced sanitary sewer backups since the early 1990's. Since then, the city has limited 'it's assistance to offering cleaning solution and aerosol spray disinfectant to residents that have had sanitary sewer backups. We have also contacted the League of Minnesota Cities and they are unaware of any city that currently provides staff for .cleanup assistance. Their search included 853 Cities in Minnesota. Staff has also called/contacted ten cities to further discuss how sanitary sewer backups are handled. From the cities contacted, there are two methods: 1. Through the inSllrance carrier, or 2. Pay for an outside cleaning service for contracted services. The cities of Fridley, Hastings, and Richfield pay for the amount of cleanup costs, without a cap or limit. The proposed policy would provide for a monetary reimbursement of up to $500 for each occurrence of a backup resulting from a plug or blockage in the public line. It would not apply if the plug or blockage were in the privately maintained sewer smwice. The reimbursement would be for cleaning services or for a'homeowner's insurance policy deductible, if applicable. Also attached is a 2003 memo from our insurance carrier, the LMCIT, providing information on clean-up assistance. COUNCIL ACTION: CITY COUNCIL LETTER Meeting of: March 29, 2004 AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: CITY MANAGER NO: PUBLIC WORKS ITEM: SANITARY SEWER ASSISTANCE POLICY FOR BY: K. Hansen BY: I/XlITIAL CLEANUP OF SANITARY SEWER BACKUPS, DATE: 3/25/04 DATE: AND COST SHARING FOR BACKWATER VALVES Sanitary Sewer Assistance Policy Page 2 The proposed policy also adds a cost sharing of up to $500 for the purchase and installation of backwater valves for those areas of town where there is an established history of sanitary sewer backups. An example of established history would be that area in and around Jackson Pond. The proposed type of in-line backwater valves is one of the two type described as follows: Backwater Valves: a. The first is a new type of backwater valve made by Mainline; a diagram of this type of valve was distributed at the February 17th, 2004 work session. The advantage of this type of valve is they are relatively inexpensive. In discussion with local plumbers, it was estimated that th/s type of valve could be installed complete for about $1,000, depending on the complexity of the installation. Most plumbers we spoke with suggested adding a gate valve in line, which would add approximately $250 - $300 to the overall cost. b. A second type of valve is a combination shear gate & swing check backwater valve. A diagram of this type of combination valve was distributed at the February 17th work session. This unit has both a swing-check valve and mechanical gate valve within a single housing. This type of unit has a positive shut offwith a mechanical gate valve shut-off, but is much more expensive. The estimated cost for a single valve is $1,293, plus installation. Depending on access and the degree of difficulty, these could be installed for about $2,000 - 3,000 each. Recommended Action: Consider approving Sanitary Sewer Assistance Policy for Initial Cleanup of Sardtary Sewer Backups and cost sharing for the installation of Backwater Valves. Attachment: Proposed Sanitary Sewer Backup Assistance Policy COUNCIL ACTION: 1.0 2.0 3.0 4.0 5.0 CITY OF COLUMBIA HEIGHTS Sewer Backup Clean-up Assistance Policy OBJECTIVE: It is the intent of the City of Colmnbia Heights to provide cost effective and uninterrupted public sanitary sewer service to the residents of Columbia Heights, and minimize the number of overflows and sanitary sewer backups into private homes and businesses. POLICY: Where backups do occur and are a direct result of a blockage, malfunction or hydraulic overload of the City's Sanitary Sewer System, or PUBLIC SYSTEM, the City of Columbia Heights shall provide initial clean-up assistance in individual properties for Health, Safety & Welfare purposes. ORGANIZATIONS AFFECTED: Property Owners of Columbia Heights who have experienced backups from the PUBLIC sanitary sewer system. APPLICABILITY: Administration, Finance, and Public Works Departments. PROCEDURES: 5.1 Property owner or occupant shall notify the city immediately upon the discovery of a sanitary sewer backup. 5.2 Public Works Department will be notified of the sewer backup and dispatch a crew irmriediately to inspect the situation. 5.3 Public Works shall determine if a sewer backup in the city is caused by a malfunction or hydraulic overload of the city's sanitary sewer collection system; and if so: 5.3.1 The City shall assist in initial cleanup procedures through a contracted cleaning company. Initial cleanup procedures are defined as: a. Wet-extract carpet and floors. b. Sanitize and deodorize carpet (doesn't include cleaning) c. Smfitize and deodorize floors. d. Clean and sanitize walls, if needed. 5.3.2 The City of Columbia Heights will pay for the first $500 of cleaning services per property per occurrence. In the event that the homeowner has insurance that covers backups, the City will reimburse any insured party for any homeowner's insurance deductible paid for clean up and disinfection services performed by a pre-approved sewer cleanup service, up to a maximum of $500. 5.4 5.5 5.6 5.7 5.3.3 The property owner or occupant shall, prior to the city performing any work, hold the city harmless from any damages that might occur during the work and give written authority to enter the premises to perform the work and to inspect the premises after the work has been performed. The property owner or occupant shall also assign to the city any claim it has for recovery of costs to eliminate the health hazard. Any contractor performing work for the city or a private property owner in Columbia Heights that results in a sanitary sewer backup shall reimburse the city for cleanup costs and staff time, if it is determined the contractor or subcontractor is responsible for causing the sanitary sewer backup. The City of Columbia Heights will not be responsible for costs associated with the following circumstances: 5.5.1 5.5.2 Damage to personal or real property associated with a sewer backup that was caused by the property owner's PRIVATE sanitary sewer line. A PRIVATE sanitary sewer line is the service line from the sewer main to the house. Sewer backups caused by flood or other catastrophic acts of God. Columbia Heights designated staff will review each sewer backup case that was caused by a plug in the City's main sewer line and determine if the property owner or occupant will be reimbursed for the cleaning costs or the insurance deductible paid for clean up and disinfection services if such a backup arose or was caused by a malfunction or hydraulic overload of the city's sanitary sewer collection system. In areas of Columbia Heights that have been determined by the City Engineer to experience sanitary sewer backups, drainage piping servicing fixtures which flood level rims located below the elevation of the next upstream manhole cover of the public sewer servicing such drainage piping shall be protected from backflow of sewage by installing an approved type of backwater valve. If the backwater valve is deemed a viable option by the City Engineer, the City will reimbrrrse the property owner up to $500 toward the purchase of an approved backwater valve and installation. G:¢WkPublic Works\City CouncilkProposed PoliciesXProposed Sewer Backup Policy.doc City of Columbia Heights Public Works Department Goals, Objectives, and Strategies for Minimizing Sanitary Sewer Backups Mission- To provide the residents of Columbia Heights with cost effective and efficient sanitary sewer service the continues to meet the needs of existing and future customers in accordance with federal, state, and local rules, regulations, and ordinances. Goals, Objectives, and Strategies- To provide uninterrupted public sanitary sewer service to the residents of Columbia Heights and minimize the number of overflows and sewer backups into private property. To work with the property owners in a cooperative manner to determine the most cost effective means of correcting defects and improper connections that is introducing storm/ground water to the sanitary sewer system. · Repair/replace defective sewer lines on a regular basis, in conjunction with the City's street reconstruction zone projects. · Continue to take proactive measures in maintaining and documenting trouble spot areas throughout Columbia Heights that have a high number of sanitary sewer backups on a yearly basis. Sewer line cleaning shall be focused on these areas in accordance with the City's Sewer Cleaning Policy. · Locate and evaluate areas that are prone to non-rain event backups and maintain an aggressive and proactive flushing and rodding schedule to minimize blockages. · Reduce inflow and infiltration of storm/ground water on public and private property to the greatest extent practicable. · Make available information regarding the installation backwater valves in areas that experience sanitary sewer backups on a regular basis. Regular basis is defined as two or more in five years or 3 or more in ten years. League of Minnesota Cities Insurance Trust University Avenue West, St. Paul, MN 55~.03-2044 (65~_) 28~-:L200 · (800) 925-~_:L22 Fax: (65.~) 281-:L298 · TDD: (65~_) www.lmnc, org July 9, 2003 To: Walt Fehst From: Tom Grundhoefer Re: Clean-up assistance to residents affected by sewer back-ups This is a follow-up to the conversations you've had with several of our staff about how the city might respond to sewer back-ups that affected a number of Columbia Heights residents recently. I understand that Doug Gronli and Dar Boese are in touch with you regarding our evaluation of the city's potential liability for the damages caused by those back-ups. However, you also mentioned that at least some members of the city council may favor assisting the residents in some way with the clean-up, irrespective of whether the city is legally liable for the damages. You and Mr. Hansen had asked whether the city could or should assist the residents in some way, even if the city is not legally liable for the damages; and whether'that' ' assistance could be provided without affecting or prejudicing the determination of legal liability. Unfortunately, I'm not sure that our initial response and the materials we sent were as clear and helpful as they could have been, so I'll try to respond more directly to your questions. Since this involves some legal questions, I'm also copying it to your city attorneys. 1. Can the city assist the residents with the clean-up? Yes, the city can provide this kind of service. However, if the city decides to do so, we'd suggest that the city develop and formally adopt a policy on what kind of assistance will be provided and in what circumstances, in order to assure that everyone is treated fairly and equitably in the future. Cleaning up after a sewer back-up seems clearly to be within the city's legal authority. A sanitary sewer back-up that's not properly cleaned up can certainly be a health hazard and potentially a nuisance. The courts and statutes have long recognized that protecting the public health and removing nuisances from private property are legitimate public purposes, for which the city has the authority to expend public funds. There is precedent for cities and other public entities to provide this kind of service. The Alexandria Lake Area Sanitary District, for example, has had such a policy for many years. Of course, while it's within the city's authority to provide this se~wice, that doesn't mean that the city is obligated to do so. It's ultimately the council's decision on whether or not the city should provide this service. *Name* Page 2 July 15, 2003 As noted above, if the city decides to do in this direction, we'd suggest that you develop and adopt a formal policy spelling out what will and what will not be included in the clean-up services the city will provide, and specifying under what circumstances clean-up services will be provided. One approach could be to incorporate that policy into the ordinance that establishes the conditions and rates for the sewer system. In other words, the specified clean-up services would essentially be part of the sewer services the customer is purchasing. One point to keep in mind in developing a policy is that in a very large and severe storm, a great many properties could be affected at the same time, which could make the clean-up a very substantial financial obligation. That doesn't necessarily mean that you'd need to wait on assisting people in the present circumstance until you've developed a policy. But if the city does decide to respond in this instance, you'd want to keep in mind that you'd be establishing some precedent for the future, so you'd want to consider whether the city would be prepared to provide a similar level of service in similar circumstances in the future. Another issue is whether you'd want to use city staffto do the clean-up, or to hire a clean-up contractor. The availability of city staff and the cost of hiring a contractor are certainly considerations. Another consideration is that the clean-up work itself potentially could generate claims. E.g., a property owner might claim that the clean-up workers further damaged the property, or that the clean-up itself was incomplete or ineffective. If the city contracts for the service, those risks would fall primarily on the contractor rather than on the city. 2. Can the city provide clean-up assistance without prejudicing the ultimate determination of liability? While there's no guarantee how a court might view it, there are some things you can do to minimize this potential problem. The key is to make it clear up front that the city is providing the clean-up based on its interest in the public health, and that providing the clean-up service does not necessarily imply that the city believes that it is legally liable. Having a policy in place would be very helpful on this point. Another good way to accomplish this would be to include an aclmowledgement in an authorization form the property owner would sign to authorize the city to enter the property and perform the clean-up. If the City decides to go ahead with providing clean-up services in the immediate situation, before a formal policy is adopted, it would be especially important to use this ldnd of acknowledgement form. Suggested language for an authorization form is included at the end of this memo. *Name* Page 3 July 15, 2003 One further comment. Some cities have attempted to use an authorization form which provides that as a condition of accepting clean-up assistance from the city, the property owner waives any further claim against the city. That's an attractive option in some ways, since it would eliminate the liability risk for the city. The problem though is that property owners are often reluctant to agree to waive their rights in this way, which effectively defeats the purpose. Suggested language for an authorization~acknowledgement form I hereby authorize the City of Columbia Heights and its employees or contractors to enter my property at and to provide sewer back-up clean-up services. These sewer back-up clean-up services will consist of removing the wastewater, drying floors, carpets and walls, and performing disinfection. It also includes removing furniture and other items of personal property from the premises, but does not include cleaning, drying, or repairing furniture or other items of personal property. I understand and acknowledge that the City of Columbia Heights' offer to provide clean-up services is for the purpose of protecting public health, and that it is not and should not be consl:med to be an admission of legal liability or negligence on the City's part. Cc Barna, Guzy & Steffen Kevin Hansen CITY COUNCIL LETTER MEETING OF: APRIL 12, 2004 AGENDA SECTION: OTHER BUSINESS ORIGINATING DEPT: CITY MANAGER NO: FINANCE APPROVAL ITEM: FINANCIAL ANALYSIS OF BY: WILLIAM ELRITE BY: CITY-OWNED LIQUOR STORE NO: DATE: 03/25/2004 The City's lease for the liquor store at 4340 Central Avenue expires December of 2004. Under this lease we do have the option of extending the lease for an additional five years. However, before the City does this, staff is recon~r~ending that a thorough financial review be perfon~ed showing the alternatives of the City owning a liquor store versus paying $130,000 a year for rent and CAM expenses. In July of 2002 the City entered into an agreement with Ehlers & Associates, Inc. to perform a financial analysis of the City acquiring property and building a liquor store. Due to political concerns that analysis was put on hold and never completed. At the present time staff is recommending that we have Ehlers & Associates complete the financial analysis and present it to the City Council before we lock in on a five-year lease extension at the current location. Preliminary financial analysis done by staff indicates a; significant cost savings if the City owns the liqnor store rather than renting space. This would result in additional liquor revenue being available to fund city operations and reduce the city Property tax levy. Had the City purchased a liquor store in 1984, when we originally entered into the lease agreement for the present location, the store would be paid for at this time and we would have an additional $120,000 to $130,000 available to fund city operations. RECOMMENDED MOTION: Move to authorize staff to work with Ehlers & Associates, Inc. to finalize the financial analysis of a city-owned liquor store. WE:sms 0403253COUNCIL Attachment COUNCIL ACTION: