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HomeMy WebLinkAboutApril 27, 1987OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL REGULAR COUNCIL MEETING APRIL 27, 1987 The meeting was called to order by Mayor Nawrocki at 7:30 p.m.. 1. Roll Call Paulson, Petkoff, Carlson, Peterson, Nawrocki - present 2. Invocation The Invocation was.offered by Pastor William Otte of St. Matthew Lutheran Church. 3. Consent Agenda The following items were on the consent agenda: a. Minutes for Approval The minutes of the Regular Council Meeting of April 13, 1987 were approved and the reading was dispensed with. b. Resolution No. 87-35; Being a Resolution Indemnifying the State of Minnesota From Certain Claims Arising From the 37th Avenue N.E. Design Variance RESOLUTION NO. 87-35 BEING A RESOLUTION INDEMNIFYING THE STATE OF MINNESOTA FROM CERTAIN CLAIMS ARISING FROM THE 37TH AVENUE N.E. DESIGN VARIANCE BE IT RESOLVED by the City of Columbia Heights: That the City shall indemnify, save and hold harmless the State of Minnesota and all its agents and its employees of any and all claims, demands, actions or causes of actions of any nature arising out of or by reason of, in any manner, the reconstruction of 37th Avenue N.E. (M.S.A.S. lO1) from Central Avenue N.E. to Stinson Boulevard N.E. in any other manner than as a 46' wide street no parking in accordance with Minnesota Rule 8820.9919 and further agrees to defend at their sole cost and expense any action or proceeding commenced for the purpose of asserting any claim whatsoever character arising as a result of the granting of this variance. Passed this 27th day of April, 1987. Offered by: Paulson Seconded by: Peterson Roll call: All ayes Jo-Anne Student, Council Secretary Mayor Bruce G. Nawrocki c. Request to Cons~m.e Non-lntoxic~tin.g Malt Liquor - NEI The Council authorized the consumption of non-intoxicating malt liquor by Northwestern Electronics Institute for a picnic scheduled for June 19th from 9:00 a.m. to 6:00 p.m. at Huset Park, based upon the recommendation of the Park Board. d. Change Order for Matharire Parking. Lot The Council appropriated '$1'1,150 from the General Fund Undesignated Fund Regular Council Meeting A~ril 27, 1987 page 2 Balance to the General Fund Park Department, Structures and Other Improvements; and, furthermore, to authorize the Mayor and City Manager to execute State of Minnesota Department of Transportation Change Order #8516-1 in an amount of $9,758.25 with Bituminous Roadways, Inc. e. Authorization to Seek Bids on Miscellaneous Concrete Work The Council authorized the City Manager to seek bids for the 1987 miscellaneous concrete work. f. Authorize Sale, Salvage, or Disposal of Surplus City Property The City Council authorized the sale, salvage, or disposal of a 1964 Toro tractor including six gang mowers and one 7' Mars broom. 9' Authorization to Expend Monies for the 1987 Employee Picnic and Christmas Party The City Council authorized the expenditure of up to $1,750 for the 1987 employee Christmas party and employee picnic. Approval of Consent Agenda Motion by Paulson, second by Peterson to approve the consent agenda. Roll call: All ayes Oral Petitions Verg Muller of Muller Engineering advised the Council of Anoka County's proposed work for Highland Lake in Kordiak Park. A consultant retained by the County for this project explained that the project is for controlling the algae and weed growth in the Lake and will be installing a bubble aeration system to improve the water quality. This project will continue for three years and will be funded by Anoka County. This project must be approved by the Six Cities Water Management Organization and Mr. Muller advised the Council he presently is seeking this ap- proval. Mayor Nawrocki inquired if the residents whose property is near the Lake have been advised of this project. Mr. Muller stated they had not but this was planned for the near future. Proclamation Mayor Nawrocki proclaimed May as Arbor Month and reflected on the benefit of trees in our community. Public Hearing - Installation of an Alley Light A petition has been received from residents in the area to install one 100 watt high pressure sodium light in the alley between Upland Crest and Stinson Boulevard north of Ivanhoe Place. The City Manager reviewed the project and identified those properties to be assessed. Two letter were received in opposition to this project. Both of the letter writers were in attendance at the hearing. They reside at 4726 Stinson Boulevard and 4721 Upland Crest. Mayor Nawrockl inquired what the benefit would be to these two parcels. The City Manager stated that the light would add security. Both residents disagreed with this and felt they were too distant from the lights to be benefitted. The City Manager noted that the light distribution from the proposed location is 150 feet. The Mayor observed that the location chosen for the light is one which would benefit most of those who signed the petition. Councilmember Carlson suggested that the light be moved down one lot and install it even if a pole must be installed. The Public Works Director stated that the installation of a pole costs approximately $900. Councilmember Peterson requested an alternative be suggested by the staff which would eliminate these two properties. The resolution ordering improvements was amended to include Regular ~ouncil ~eeting April 27, 1987 page 3 the properties at 4726 Stinson Boulevard and 4721 Upland Crest be eliminated from the list presented by the City Manager of benefitting property owners and their addresses. The benefitted alley feet was reduced, the estimated cost per foot was increased and the estimated parcel charge was amended. Motion by Petkoff, second by Carlson to waive the reading of the resolution there being ample copies available to the public. Roll call: All ayes RESOLUTION NO. 87-33 BEING A RESOLUTION ORDERING IMPROVEMENTS BE IT HEREBY RESOLVED by the City Council of the City of Columbia Heights: WHEREAS, the City Council of the City of Columbia Heights by motion on the 23rd day of March, 1987, ordered notice of a hearing to be given to property owners, and WHEREAS, pursuant to a notice of hearing certain residents appeared at a Council meeting on the 27th day of April, 1987, and WHEREAS, the Council determines to proceed with this local improvement, a portion of the cost being defrayed by special assessments under Charter pro- visions NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the location and extent of such improvement is as follows: The installation of one (1) 100 watt high pressure sodium light in the alley between Upland Crest and Stlnson Boulevard N.E., north of Ivanhoe Place 2. That the materials to be used are as follows: N.S.P. poles, electrical illuminares, and miscellaneous materials 3. That a careful estimate of the cost of the improvements has been made by the City Manager and the several lots and parcels of land fronting upon and adjacent to such proposed improvements, which be deemed benefitted thereby, were properly notified of said hearings. 4. That the City Manager presented a list of property owners and their addresses who would be benefitted by this project and removed the properties located at 4721 Upland Crest and 4726 Stinson Boulevard N.E. 5. These improvements shall be known as Project #8710 - P.I.R. #677 - Area 19. Passed tbis 27th day of April, 1987. Offered by: Petkoff Seconded by: Peterson Roll call: All ayes Jo-Anne Student, Council Secretary Mayor Bruce G. Nawrocki Regular Council ~eeting April 27, 1987 page 4 Resolution Levying an Improvement for the Installation of Alley Light Motion by Petkoff, second by Peterson to waive the reading of the resolution there being ample copies available to the public. Roll call: All ayes RESOLUTION NO. 87-34 Adopting assessment roll for the following local improvement and determining said improvement will be made and ratifying and confirming all other proceedings, h~retofore had: Special Assessment for midblock alley lighting numbered 677- Area 19. WHEREAS, the City Council of the City of Columbia Heights, Minnesota, met at 7:30 p.m. on the 27th day of April, 1987, in the City Council Chambers, 590 40th Avenue N.E., Columbia Heights, Minnesota, being the time and place set when and where all persons interested could appear and be heard by the Council with respect to benefits, and to the proportion of the cost of making the local improvement above described, a notice of such hearing having been heretofore duly published as required by law, and a notice mailed to each property owner of record, stating the proposed amount of the assessment; and, WHEREAS, this Council has heretofore estimated the cost of such local improve- ment and has prepared an assessment roll therefore, THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS HEREBY RESOLVED: Section 1: That this Council does hereby adopt the aforesaid assessment roll known and described as "Assessment Roll for Local Improvements" numbered 677 - A~ea 19 for midblock alley lighting. Section 2: That this Council hereby finds and determines that each of the lots and parcels of land encumbered in said assessment roll was and is especially benefitted by such improvements. This Council further finds and determines that the proper proportion of the cost of such improvement to be especially assessed against each lot or parcel of land is the amount as billed annually by Northern States Power plus an administration fee. Section 3: That the annual installment shall be paid in full without interest on or before September 15, 1988, and in annual installments there~ after, as long as the midblock light is in place. Failure to pay the annual installment renders the same delinquent and thereafter a 10% penalty is added and the said delinquent special assessment is certified to the County for collection with the real estate tax. Section 4: That this Council did hereby determine and redetermine to proceed with said improvement, does ratify and confirm all other proceedings heretofore had in regard to this improvement, and said improvement shall hereafter be known and numbered 677 - Area 19 for midbloock alley lighting. Section 5: This resolution shall take effect immediately upon its passage. Passed this 27th day of April, 1987. Regular Council Meeting April 27, 1987 page 5 Offered by: Carlson Seconded by: Petkoff Roll call: All ayes Jo-Anne Student, Council Secretary Mayor Bruce G. Nawrocki Second Reading of Ordinance No. 1144; Authorizing Issuance of Bonds to Refinance Tax Increment Financing General Obligation Bonds The bond counsel advised the Council that the valuation of the tax increment district has gone down so about one third of the savings anticipated has been lost. It was stated that the City will incur no costs from either Miller & Schroeder nor Holmes & Graven if the bond sale does not go through. Motion by Paulson, second by Peterson to waive the reading of the ordinance there being ample copies available to the public. Roll call: A!1 ayes ORDINANCE NO. 1144 AUTHORIZING ISSUANCE OF $9,1OC ,0OO GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS OF 1987, SERIES A The City of Columbia Heights does ordain: 1. Bond Purpose and Authorization Sale. a. Pursuant to the provisions of Minnesota Statutes, Chapter 475, the City of Columbia Heights (the "City") is authorized to issue bonds for the purpose of refunding its existing general obligation indebtedness prior to maturity when determined by the City to be necessary or desirable for the reduction of debt service cost to the City. b. The City has heretofore issued its $2,1OO,0OO General Obligation Tax Incre- ment Bonds of 1985, Series A and the $8,175,O00 General Obligation Tax Increment Bonds of 1981 (the "Prior Issue Bonds"). c. It is hereby found, determined and declared that the refunding of the Prior Issue Bonds in advance of the maturity of such bonds is necessary and desirable to reduce the debt service cost for such bonds to the City and that the City should issue, and the City hereby authorizes and directs the issuance and sale of, its General Obligation Tax Increment Refunding Bonds of 1987, Series A in the principal amount of $9,100,0OO (or such different principal amount as is determined in accordance with the Official Terms of Offering attached hereto as Exhibit A), (the "Refunding Bonds"). 2. Sale. This City Council (the "Council") shall meet at the time and place specified in the forms of Official Notice of Bond Sale for the Bonds attached hereto as Exhibit B for the purpose of opening ~nd considering sealed bids for, and awarding the sale of the Refunding Bonds. 3. Notice of Bond Sale. The Council her~y authorized and directs the City Mana- ger or his designee to cause to be published the notice of advertisement for sealed bids for the Refunding Bonds in the official newspaper of the City, and in Com- mercial West, at Minneapolis, Minnesota, in substantially the form attached hereto as Exhibit B. Each and all of the terms and provisions set forth in such notices are adopted and confirmed as the terms and conditions of the Refunding Bonds and the sale thereof. Regular Council Meeting April 27, 1987 page 6 4. Official Terms of Offering. The Official Terms of Offering of the Bonds in substantially the form attached hereto as Exhibit A shall constitute the terms and conditions of the sale of the Refunding Bonds, and the Council hereby autho- ri'zes the incorporation of such terms and conditions in the material to be distributed to prospective bidders for the Refunding Bonds. 5. Information and bidding forms may be obtained from the undersigned or from Miller & Schroeder Financial, Inc., 7900 Xerxes Avenue South, Minneapolis, Minnesota 55440; telephone: 612-831-1500, financial consultants to the City. 6. This ordinance shall be in full force and effect from and after 30 days after its passage. First Reading: Second Reading: Offered By: Seconded By: Roll Call: Date of Passage: April 13, 1987 April 27, 1987 Carlson Peterson All ayes April 27, 1987 Mayor Bruce G. Nawrocki Jo-Anne Student, Council Secretary Second Reading of Ordinance No..1148; Authorizing Issuance of Bonds to Refinance Tax Increment Financing General Obligation Bonds Motion by Paulson, second by Carlson to waive the reading of the ordinance there being ample copies available to the public. Roll call: All ayes ORDINANCE NO. 1148 AUTHORIZING ISSUANCE OF $2,230,000 GENERAL OBLIGATION REFUNDING IMPROVEMENT BONDS OF 1987, SERIES A The City of Columbia Heights does ordain: 1. Bond Purpose and Authorization Sale. a. Pursuant to the provisions of Minnesota Statutes, Chapter 475, the City of Columbia Heights (the "City") is authorized to issue bonds for the purpose of refunding its existing general obligation indebtedness prior to maturity when determined by the City to be necessary or desirable for the reduction of debt service cost to the City. b. The City has heretofore issued its $2,460,000 General Obligation Refunding Bonds of 1985, Series B (the "Prior Issue"). c. It is hereby found, determined and declared that the refunding of the Prior Issue is necessary and desirable to reduce the debt service cost for such bonds to the City and that the City should issue, and the City hereby authorizes and directs the issuance and sale of, its General Obligation Refunding Improvement Bonds of 1987, Series A in the principal amount of $2,230,000, (the "Refunding Bonds"). Regular Council Meeting April 27, 1987 page 7 2. Sale. This City Council (the "Council") shall meet at the time and place specified in the forms of Official Notice of Bond Sale for the Bonds attached hereto as Exhibit B for the purpose of opening and considering sealed bids for, and award the sale of the Refunding Bonds. 3. Notice of Bond Sale. The Council hereby authorizes and directs the City Manager or his designee to cause to be published the notice of advertisement for sealed bids for the Refunding Bonds in the official newspaper of the City, and in Commercial West, at Minnepolis, Hinnesota, in substantially the form attached hereto as Exhibit B. Each and all of the terms and provisions set forth in such notices are adopted and confirmed as the terms and conditions of the Bonds and the sale thereof. 4. Official Terms of Offering. The Official Terms of Offering of the Bonds in substantially the form attached hereto as Exhibit A shall constitute the terms and conditions for the sale of the Refunding Bonds, and the Council hereby authorizes the incorporation of such terms and conditions in the material to be distribured to prospective bidders for the Refunding Bonds. 5. Information and bidding forms may be obtained from the undersigned or from Miller & Schroeder Financial, Inc., 7900 Xerxes Avenue South, Minneapolis, Min- nesota 55440; telephone: 612-831-1500, financial consultants to the City. 6. This ordinance shall be in full force and effect from and after 30 days after its passage. First Reading: Second Reading: Offered By: Seconded By: Roll Call: Date of Passage: April 13, 1987 April 27, 1987 Carlson Paulson All ayes April 27, 1987 Jo-Anne Student, Council Secretary Mayor Bruce G. Nawrocki Update on Single Family Mortgagp ~venue Bond Issue The bond counsel advised the Council that he hopes to lock into a 8½% interest rate tomorrow on this bond issue. Previously, the Council had authorized the interest rate to be set at a high of 8 3/8%. The Council was also advised that the entire ten million dollars for this bond issue was secured. The HRA's Com- munity Development Director advised the Council as to who the originators were. He noted that four million dollars of this issue is being set aside for Rottlund Builders who is proposing to develop an area around Sullivan Lake. Motion by Petkoff, second by Paulson that if the mortgage rate to be approved by the program is greater than 8½% then consent of the City Council is required. Roll call: All ayes Second Reading of Ordinance No. 1146; Regarding Suburban Rate Authority Uniform Electric Franchise Motion by Carlson, second by Peterson to waive the reading of the ordinance there being ample copies available to the public. Roll call: All ayes Regular Council Meeting April 27, 1987 page 8 ORDINANCE NO. 1146 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY CODE OF 1977, GRANTING TO NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCT, OPERATE, REPAIR, AND MAINTAIN IN THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES AND APPURTENANCES, FOR THE FURNISHING OF ELECTRIC ENERGY TO THE CITY, ITS INHABITANTS, AND OTHERS, AND TO USE PUBLIC WAYS AND PUBLIC GROUNDS OF THE CITY FOR SUCH PURPOSES The City of Columbia Heights does ordain: Section 1: Chapter 12, Article II of Ordinance No. 853, City Code of 1977, passed June 21, 1977, which is currently reserved, shall here- after read as follows: Article II SRA Uniform Electric Franchise (NSP) Section l: DEFINITIONS 12.201 12.201 (1) The following terms shall mean: "City" in this Article, "City" means the City of Columbia Heights, located in the County of Anoka, State of Minnesota. 12.201(2) 12.201 (3) i2.201 (4) 12.201(5) "City Utility System" means the facilities used for providing sewer, water, or any other public utility service owned or operated by City or agency thereof. "Company" means Northern States Power Company, a Minnesota cor- poration, its successors and assigns. "Notice" means a writing served by any party or parties on any.other party or parties. Notice to Company shall be mailed to the Division General Manager thereof at 4501 68th Avenue N., Brooklyn Center, Mn. 55429. Notice to City shall be mailed to the City Clerk. "Public Way" means any street, alley, or other public right-of-way within the City. 12.201 (6) 12.201 (7) "Public Ground'l means land owned by the City for park, open space or similar purpose, which is held for use in common by the public. "Electric Facilities" means electric transmission and distribution towers, poles, lines, guys, anchors, ducts, fixtures, and necessary appurtenances owned or operated by the Company for the purpose of providing electric energy for public use. Section 2: FRANCHISES ]2.202(1) Grant of Franchise. City hereby grants Company, for a period of twenty years from April 1, 1987, the right to transmit and furnish electric energy for light, heat, power and other purposes for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future. For Regular Council Meeting April 27, 1987 page 9 12.202(2) 12.202(3) 12.202(4) 12.202(5) Section 3: 12.203(1) 12.203(2) these purposes, Company may construct, operate, repair and maintain Electric Facilities in, on, over, under and across the Public Ways and Public Grounds of City subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject, however, to zoning ordinances, other applicable ordi- nances, permit procedures, and to the further provisions of this franchise. Effective Date; Written Acceptance. This f~anchlse shall be in full force and effect from and after the completion of all three of the following events, to wit: (al 30 days from and after the passage of this Ordinance. (bi Acceptance in writing by Company within 30 days after the passage of this Ordinance; and (c) This Ordinance has been published once per week for four consecutive weeks in the official newspaper of the City. Service Rates and Area. The service to be provided and the rates to be charged by Company for electric service in City currently are subject to the jurisdiction of the Minnesota Public Utilities Commission. The area within the City in which the Company may pro- vide electric service currently is subject to the provisions of ltinnesota Statutes, Section 2169.40. Publication Expense. The expense of publication of this Ordinance shall be paid by the Company. Default. If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. If the dispute is not resolved within 30 days of the written notice, either party may com- mence an action in District Court to interpret and enforce this franchise or for such other relief as may be permitted by law or equity for breach of contract, or either party may take any other action permitted by law. Location Other Regulations Location of Facilities. Electric Facilities shall be located and constructed so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and they shall be located on Public Grounds as determined by the City. The Company's construction, reconstruction, operation, repair, maintenance and location of Electric Facilities shall be subject to other reasonable regulations of the City. Field Locations. The Company shall provide field locations for any of its underground Electric Facilities within a reasonable period of time on request by the City. The period of time will be considered reasonable if it compares favorably with the average time required by the cities in the same county to locate municipal underground Regular Council Meeting April 27, 1987 page 10 12.203(3) 12.203(4) 12.203(5) Section /4: 12.204(1) facilities for the Company. Street Openings. The Company shall not open or disturb the paved surface of any Public Way or Publlc Ground for any purpose without first having obtained permission from the City, for which the City may impose a reasonable fee. Permit conditions imposed on the Company shall not be more burdensome than those imposed on other utilities for similar facilities or work. This Company may, however, open and disturb the paved surface of any public Way or Public Ground without permission from the City where an emergency exists requiring the immediate repair of Electric Facilities. In such event the Company shall notify the City by telephone to the office designated by the City before opening or disturbing a paved sur- face of a Public Way or Public Ground. Not later than the second working day thereafter, the Company shall obtain any required per- mits and pay any required fees. Restoration. After undertaking any work requiring the opening of any Public Way or Public Ground, the Comapny shall restore the same including paving and its foundation, to as good condition as for- merly existed, and shall maintain the same in good condition for two years thereafter. The work shall be completed as promptly as weather permits, and if the Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Way or Public Ground in the said condition, the City shall have, after demand to the Company to cure and the passage of a reasonable time following the demand, but not to exceed five days, the right to make the restoration at the expense of the Company. The Company shall pay to the City the cost of such work done for or performed by the City, Including its administrative expense and overhead, plus ten percent additlonal as liquidated damages. This remedy shall be in addition to any other remedy available to the City. Shared Use of Poles. The Company shall make space available on its poles or towers for City fire, water utility, police or other City facilities whenever such use will not interfere with the use of such poles or towers by the Company, by another electric utility, by a telephone utility, or by any cable television company or other form of communication company. In addition, the City shall pay for any added cost incurred by the Company because of such use by the City. RELOCATIONS Relocation of Electric Facilities in Public Ways. Except as pro- vided in Section 12.204(3), if the City determines to vacate for a City improvement project, or to grade, regrade, or change the line of any Public Way, or construct or reconstruct any City Utility System in any Public Way, it may order the Company to relocate, its Electric Facilities located therein. The Company shall relocate its Electric Facilities at its own expense. The City shall give the Company reasonable notice of plans to vacate for a City improvement project, or to grade, regrade, or change the line of any Public Regular Council Meeting April 27, 1987 page 11 12.204(2) 12.204(3) 12.204(4) Section 5: 12.205 Way or to construct or reconstruct any City Utility System. If a re- location is ordered within five years of a prior relocation of the same Electrical Facilities, which was made at Company expense, the City shall reimburse Company for non-betterment expenses on a time and material basis, provided that if a subsequent relocation is required because Of the extension of a City Utility System to a previously served area, Company may be required to make the sub- sequent r~location at its expense. Nothing in this Ordinance requires Company to relocate, remove, replace or reconnect at its own expense its facilities where such relocation, removal, replacement or recon- struction is solely for the convenience of'the City and is not reasonably necessary for the construction or reconstruction of a Public Way of City Utility System or other City Improvement. Relocation of Electric Facilities in Public Ground. Except as may be provided in Section 12.~'04(3), City may require the Company to relocate or remove its Electrical Facilities from Public Ground upon a finding by the City that the Electric Facilities have become or will become a substantial impairment of the public use to which the Public Ground is or will be put. The relocation or removal shall be at the Company's expense. The provisions of 12.204(3) apply only to Electric Facilities constructed in reliance on a franchise and the Company does not waive its rights under an easement or prescriptive right. Projects with State or Federal Funding. Relocation, removal, or rearrangement of any Company facilities made necessary because of the extension into or through City of a federally-aided highway pro- ject shall be governed by the provisions of Minnesota Statutes, Section 161.46 as supplemented or amended. It is understood that the right herein granted to Company is a valuable right. City shall not order Company to remove, or relocate its facilities when a Public Way is vacated, improved or realigned because of a renewal of a redevelopment plan which is financially subsidized in whole or in part by the Federal Government or any agency thereof, unless the reasonable non-betterment costs of such relocation and the loss and expense resulting therefrom are first paid to Company, but the City need not pay those portions of such for which reimbursement to it is not available. Liability. Nothing in the Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Electric Facilities while performing any activity. TREE TRIMMING The Company may trim all trees and shrubs in the Public Ways and Public Grounds of City interfering with the proper construction, operation, repair and maintenance of any Electric Facilities installed hereunder, provided that the Company shall save the City harmless from any liability arising therefrom, and subject to permit or other reasonable regulation by the City. Section 6: INDEMNIFICATION Regular Council Meeting April 27, 1987 page 12 12.206(1) 12.206(2) Section 7: 12.207 Section 8: 12.208 Section 9: 12.209(1) The Company shall indemnify, keep and hold the City free and harmless from any and all liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permi.ts, or the operation of the Electric Facilities located in the City. The City shall not be indemnified for losses or claims occasioned through its own negligence except for losses or claims arising our of or alleging the City's negligence as to the issuance of permits for, or inspection or, the Company's plans or work. The City shall not be indemnified if the injury or damage results from the performance in a proper manner of acts reasonably deemed hazardous by Company, and such performance is nevertheless ordered or directed by City after notice of Company's determination. In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, the Company at its sole cost and expense shall defend the City in such suit if written notice thereof if promptly given to the Company within a period where in the Company is not prejudiced by lack of such notice. If the Company is required to indemnify and defend, it will there- after have control of such litigation, but the Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or .immunity other- wise available to the City; and the Company to assert in any action every defense or immunity that the City could assert in its own behalf. VACATION OF PUBLIC WAYS The City shall give the Company at least two weeks' prior written notice of a proposed vacation of a Public Way. Except where required for a City street or other improvement project, the vaca- tion of any Public Way, after the installation of Electric Facilities shall not operate to deprive Company of its rights to operate and maintain such Electrical Facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to Company. In no case, however, shall City be liable to the Company for failure to specifically pre- serve a right-of-way, under Minnesota Statutes, Section 160.29. CHANGE IN FORM OF GOVERNMENT Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of the Company, succeed to all of the rights and obligations of the City provided in this Ordi- nance. FRANCHISE FEE Separate Ordinance. During the term of the franchise hereby granted, and in lieu of any permit or other fees being imposed on the Company, the City may impose on the Company a franchise fee of not.more than five percent of the Company's gross revenues as Regular Council Meeting April 27, ]987 page 13 12.209(2) 12.209(3) 12,209(4) Section 10: hereinafter defined. The franchise fee shall be imposed by a separate ordinance duly adopted by the City Council, which ordinance shall not be adopted until at least 60 days after written notice enclosing such proposed ordinance has been served upon the Company by certified mail. The fee shall not become effective~ntiJ at least 60 days after written notice enclosing such adopted ordinance has been served upon the Company by certified maiJ. Terms Defined. The term "gross revenues" means a11 sums, excluding any surcharge or similar addition to the Company's charges to custo- mers for the purpose of reimbursing the ComPany for the cost resulting from the franchise fee, received by the Company from the sale of electricity to its retail customers within the corporate limits of the City. Collection of the Fee. The franchise fee shall be payable not less often than quarterly, and shall be based on the gross revenues of the Company during complete billing months during the period for which payment is to be made. The percent fee may be changed by ordinance time to time; however, each change shall meet the same notice requirements and the percentage may not be charged more often than annually, Such fee shall not exceed any amount which the Company may legally charge to its customers prior to payment to the City by imposing a surcharge equivalent to such fee in its rate for electric service, The Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles or customer refunds. The time and manner of collecting the franchise fee is subject to the approval of the Public Utilities Commission, which the Company agrees to use best efforts to obtain, The Company agrees to make its gross revenues records available for inspection by the City at reasonable times. Conditions of the Fee. The separate ordinance imposing the fee shall not be effective against the Company unless it lawfully imposes and the City quarterly or more often collects a fee or tax of the same or greater percentage on the receipts from sales of energy within the City by any other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise fee or to impose a tax. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling, or lighting, as well as to the supply of energy needed to run machinery and appliances on premises located within or adjacent to the City, but shall not apply to energy sales for the purpose of providing fuel Eot vehicles. SEV EI~AB I L ITY Section 11: If any portion of this franchise is found to be invalid for any reason whatsoever, the validity of the remainder shall not be affected. AMENDMENT 12.211 This Ordinance may be amended at any time by the City passing a sub- 'sequent ordinance declaring the provisions of the amendment, which Regular Council Meeting April 27, 1987 page 14 Section 12: amendatory ordinance shall become effective upon filing of the Company's written consent thereto with the City Clerk within 30 days after the effective date of the mandatory ordinance. PREVIOUS FRANCHISES SUPERSEDED 12.212 This franchise supersedes any previous electric franchise granted to the Company or its predecessor. Section 13: CHARTER REQUIREMENTS 12.213(I) 12.213(2) Except for matters currently subject to the regulation of the Minnesota Public Utilities Commission as referred to in [12.202(3), the Company shall be subject to and will perform on its part all the terms of Sections 94 to 102, inclusive, of the Charter of the City and the provisions of this Section 13. That the Company shall not issue any capital stock on account of the franchise or the value thereof, and that the Company shall have no right to receive, upon condemnation proceedings brought by the City to acquire the public utility exercising such franchise, any return on account of the franchise or its value. 12.213(3) 12.213(4) 12.213(5) That no sale or lease of said franchise shall be active until the assignee or leasee shall have filed in the office of the City Clerk an instrument, duly executed, reciting the fact of such sale or lease, accepting the terms of the franchise, and agreeing to perform all the conditions required of the Company thereunder. That every grant in said franchise contained of permission for the erection of poles, masts, or other fixtures in the streets and for the attachment of wires thereto, o~ for the laying of tracks in, or of pipes or conduits, under places Of any permanent or semi- permanent fixtures whatsoever, shall be subject to the condition that the Council shall have the power to require such alteratI~ons therein, or relocation or rerouting thereof, as the Council may at any time deem necessary for health, or convenience of the public, and particularly that it shall have the power to require the removal of poles, masts and other fixtures bearing wires and the placing underground of poles, masts, and of other fixtures bearing wires and the placing underground of all wires for whatsoever purpose used. This franchise and every extension of renewal thereof must be accepted in writing by the Company within 30 days after its passage by the Council and before its submission to a vote of the people in case of a referendum. This franchise shall not be binding upon the City until its acceptance by the Company. Such acceptance shall be construed to be an acceptance of and consent to all the terms, con- ditions, and limitations contained in this ordinance granting the franchise as well as the provisions of the Charter of the City of Columbia Heights. Section 2: This Ordinance shall be in full force and effect from and after thirty (30) days after its passage. The franchise shall be in full force and effect as been heretofore provided in this Ordinance. Regular Council Meeting April 27, 1987 page 15 First reading: Second reading: Date of passage: April 13, 1987 April 27, 1987 April 27, 1987 Offered by: Carlson Seconded by: Peterson Roll call: All ayes Jo-Anne Student, Council Secretary Mayor Bruce G. Nawrocki First Reading of Ordinance No. 1145; Amending City Chart~.r Regarding Elections Motion by Petkoff, second by Carlson to table this matter for additional infor- mation. Roll call: All ayes Communications Traffic Commission The Council received the minutes of the April 6, 1987 Traffic Commission meeting. No Council action was required. North Suburban Consumer Advocates for the Handicapped, Inc. A letter was received from NSCAH regarding the City's representatives to this organization as well as annual dues. The Mayor noted that the Council makes recommendations for appointment to the organization and does not make the ap- pointments. Doug Hill, who represents the City of Columbia Heights, advised the Council that another person will also be representing the City as well as himself. Motion by Petkoff, second by Paulson to authorize the individual membership fee for Doug Hill in the amount of $12.00 to NSCAH in that Doug Hill represents the City on this body. Roll call: All ayes Old Business Final Payment to Electrical Contractor - Murzyn Hall It was noted that the contractor has completed all of the items on the punchllst involving electrical work in Murzyn Hall. A discussion was had regarding work done by the electrical contractor which was in addition to the contracted work. The Mayor. felt that perhaps this payment should not be made until this matter was cleared up. He also noted that the bases on the lamps in the parking lot were not secure. Motion by Peterson, second by Carlson that the City make final payment to Hayes Contractors, Inc. of $10,616.20 for Project #8408. Roll call: All ayes City Hall Heating/Cooling System Mayor Nawrocki requested a progress report on this matter. The City Manager advised that the Building Inspector would have a report on this the end of the week. Clean Up at 544 Summit Street The Mayor inquired as to the progress on this matter. He was advised that a contract had been let to repair the building and much of the work has already been done. It was also noted that exterior holes in the building have been repaired and the bu.iiding will be exterminated. Garage at 4243 Pierce Street The garage at this location is not yet built. The Mayor was advised that the Building Inspector is working with the property owner on this matter. Participation of the City of Fridley in Sealcoating Project Mayor Nawrocki advised that the Fridley City Council has reassessed its position on participating in the sealcoating of border streets and will participate. Regular Council Meeting April 27, 1987 page 16 New Business Authorize Advertisin9 for Liquor Operations Motion by Petkoff, second by Paulson to authorize the Mayor and City Manager to enter into a contract with the Twin Cities' Reader to. expend up to $3,600 for nine advertisements to start on May 13, 1987 and run bi-weekly through September 2, 1987. Roll call: All ayes Reduction of Retains.ge from 10% to 5% for Antco Construction State law requires governmental entities to reduce the retainage on any con- struction project to 5% after 90% of the work has been completed. Over 90% of the Murzyn Hall project is completed. Presently, the contract with the general contractor requires that 10% retainage. If this amount were not reduced the City would be required to pay interest on the amount above 5%. This amount is on the list of bills for this meeting. No Council action was taken. Electrical Wiring Problems. at Wadis. Pools The City's Electrical Inspector advised the City Manager of a problem with the wiring at the wading pool at Huset Park. Upon inspection it was observed that all three wading pools in the City are wired in the same way. Motion by Paterson, second by Petkoff to appropriate $3,000 from the General Fund - Undesignated Fund Balance to the General Fund - Park Department - Contractual Maintenance and Repair; and furthermore, to authorize the City Manager to seek quotations for the work. Roll call: Ail ayes Authorize Execution of MaSys Software Agreement - Public Safety Data Pro- cessing System Motion by Paulson, second by Paterson to authorize the Mayor and City Manager to execute a software agreement with MaSys Corporation for the "ENFORS" - law enforcement systems at a purchase price of $19,225; and, at a monthly support cost of $210. Roll call: All ayes Authorize Execution of a Contract for Week Inspection Motion by Petkoff, second by Paulson to authorize the Mayor and City Manager to execute a contract with Mr. Walter Logacz for weed inspection at a cost not to exceed $2,400. It was noted that this is a year's contract but that the compensation will be made during the summer months. Roll call: All ayes PCA Meeting - Groundwater Contamination Mayor Nawrockl noted he had recently attended a PCA meeting regarding ground- water contamination. He requested that the Public Works Director continue the monitoring of the groundwater in the City as has been the practice. The Public Works Director also noted he had contacted an hydrologist at the PCA regarding this matter as well. Preliminary Financial Report The Council has received copies of the Preliminary Financial Report and the Clty Manager will be meeting with the auditor next week. City Surplus Item Auction The total funds realized from this auC[|on were not available but it. was noted that the total of registered bidders was very high. Maintenance Standards for Rental Properties At a Council work session the present ordinance regulations presently being used in the City will be reviewed as will as practices of other communities. Regular Councll Meeting April 27, 1987 page 17 Reports a. Report of the City Manager The City Manager's report was submitted in written form and the following items were discussed: a. Use of City Bus by St. Timothy's Church: A letter of appreciation for the use of the City bus and a donation to offset fuel and maintenance costs was received from St. Timothy's Lutheran Church. b. John P. Murzyn Hall Report: The expenditures and budget for this project were reviewed. Mayor Nawrocki and Councilmember Petkoff had questions regarding the legal fees in the report. The City Attorney explained what the fees were for. It was felt these fees should have been in the City's budget which addressed legal fees and not be charged to the Murzyn Hall project. b. Report of the City Attorney The City Manager advised the Council that the questionable material on the property at 514 Summit Street had been removed. The Mayor stated he was in receipt of the contract for Police and Emergency Services for the City of Hilltop. Licenses Motion by Petkoff, second by Peterson to approve the licenses as listed upon payment of proper fees and that the fee for the food concession at Silver Lake Beach be waived. Roll call: All ayes Payment of Bills Motion by Peterson, second by Carlson to pay the bills as listed out of proper funds. Roll call: All ayes Adjournment Motion by Carlson, second by Peterson to adjourn the meeting at 11:10 p.m.. Roll call: All ayes /o- nne Stu ent, Counci Secr'e'tary