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HomeMy WebLinkAboutNovember 9, 1992OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL REGULAR COUNCIL MEETING NOVEMBER 9, 1992 The Council Meeting was called to order at 7:00 p.m. by Mayor Murzyn. 1. ROLL CALL Nawrocki, Clerkin, Ruettimann, Peterson, Mur2yn - present 2. PLEDGE OF ALLEGIANCE 3. CONSENT AGENDA The Council approved the following items on the Consent Agenda: Minutes for Approval The Council approved the minutes of the Regular Council Meeting of October 26, 1992 as presented and there were no corrections. Request to Install "Yield" Sign on Second Street at 45th Avenue The Council approved the installation of a "Yield" sign on Second Street at 45th Avenue based on the recommendation of the Traffic Commission. Authorization to Enter Into Aqreement for Use of St. Paul's Fire Traininq Facility The Council ratified the action of the City Manager and authorized the Mayor and City Manager to approve the Agreement between St. Paul Fire and the City of Columbia Heights for use of the St. Paul Fire Training Facility for the purpose of firefighter training and testing, to be effective November 2, 1992 until cancellation. Columbia Heights Snow Removal Plan Amendments The Council adopted the Columbia Heights Master Plan for snow plowing, removal and ice control as submitted and approved the use of the vacant lot in the northwest corner of 37th Avenue and Fifth Street as snow storage site. License Applications The Council approved the license applications as listed upon payment of proper fees. REGULAR COUNCIL MEETING NOVEMBER 9, 1992 PAGE 2 Payment of Bills The Council authorized the payment of the bills as listed out of proper funds. 4. APPROVAL OF CONSENT AGENDA Motion by Nawrocki, second by Clerkin to approve the Consent Agenda as presented. Roll call: All ayes 5. OPEN MIKE/PRESENTATIONS/PROCLAMATIONS There was no one present for Open Mike and there were no proclamations or presentations. 6. PUBLIC HEARINGS/ORDINANCES/RESOLUTIONS a. Enerqy Manaqement Proqram The City Manager reviewed the contract and lease-purchase option agreement between the City and Honeywell. He also reviewed the potential savings in energy and staff time. Councilmember Nawrocki stated he feels the Honeywell proposal is not the most effective way to save energy and that the system is more sophisticated than what the City can afford. He noted that the City will be paying approximately $177,000 in interest for the seven year period. In addition, the City will have to add approximately $54,000 to its annual budget, over and above the projected actual dollar savings, which will escalate each year, and the City will have to install and pay for four additional telephone lines to make the system work. Councilmember Ruettimann felt the program would be beneficial for the City in that it looks at the future operation of the City and will realize savings in many areas. Councilmember Peterson was of the opinion that this is a win-win situation for the City. Councilmember Clerkin favors the program and observed that there will be no layoffs of personnel but rather relocation. Mayor Murzyn feels the program will be helpful to decrease the City's dependence on Local Government Aids in the future. In 3.(a) the resolution was corrected to read "seven" rather than "ten." Motion by Ruettimann, second by Peterson to waive the reading of Resolution No. 92-36, with the noted correction, there being ample copies available for the public. Roll call: All ayes REGULAR COUNCIL MEETING NOVEMBER 9, 1992 PAGE 3 RESOLUTION NO. 92-36 A RESOLUTION PROVIDING FOR THE EXECUTION AND DELIVERY OF A GUARANTEED ENERGY SAVINGS CONTRACT AND A LEASE-PURCHASE OPTION AGREEMENT WITM MONEYWELL, INC. BE IT RESOLVED by the City Council of the City of Columbia Heights, Minnesota (the "City"), as follows: Authority. The City is, by the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section 465.71, as amended, authorized to enter into lease-purchase agreements to finance energy saving improvements and equipment. . Documents Presented. Honeywell, Inc. (the "Provider"), has proposed to this Board that the City enter into a guaranteed energy savings contract (the "Service Agreement") and a Lease-Purchase Option Agreement as described below. Forms of the following documents (each to be dated as of November 1, 1992 or such other date or dates as shall be mutually agreed upon) have been submitted to the City and are now on file: (a) Service Agreement between the City and the Provider, whereby the Provider agrees to furnish certain energy saving improvements (the "Improvements") and guarantees that the energy or operating cost savings will meet or exceed the costs of the Improvements; and (b) Lease-Purchase Option Agreement (the "Lease"), whereby the Provider, as lessor, agrees to lease the Improvements to the City, as lessee, and grants the City an option to purchase the Improvements as provided therein, and the City agrees to pay payment ("Rental Payments") including principal and interest components in monthly installments during the term of the Lease; and (c) Escrow Agreement (the "Escrow Agreement") among the Provider, the City and First Trust National Association, Saint Paul, Minnesota, as Escrow Agent, authorizing the execution and delivery by the Escrow Agent of Certificates of Participation (the "Certificates"), evidencing proportional interests of the owners thereof in the Rental Payments to be made by the City under the Lease. o Findings. It is hereby found, determined and declared that: REGULAR COUNCIL MEETING NOVEMBER 9, 1992 PAGE 4 (a) The amount to be saved in energy and operation costs over seven years from the date of installations is likely to exceed the amount the City would spend on the energy conservation measures to be undertaken pursuant to the Service Agreement, and in the Service Agreement the Provider provides a written guarantee that the energy or operating cost savings will meet or exceed the costs of the Improvements. (b) There is no litigation pending or, to the best of its knowledge, threatened against the City relating to the Improvements, the Lease or the Certificates, or questioning the organization, powers or authority of the City. (c) The execution, delivery and performance of the City's obligations under the Service Agreement, the Lease and the Escrow Agreement do not and will not violate any order of any court or other agency of government of which the City is aware or in which the City is a party, or any indenture, agreement or other instrument to which the City is a party or by which it or any of its property is bound, or be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument. o Approval, Execution and Delivery of Service Aqreement, Lease and Escrow Aqreement. The City shall proceed forthwith to enter into the Service Agreement, the Lease and the Escrow Agreement, and the City hereby approves a purchase order (the "Purchase Order") between Honeywell, Inc. and Miller & Schroeder Financial, Inc. (the "Underwriter") providing for a purchase of all Certificates by the Underwriter which produces net proceeds (after payment of costs of issuance as provided in the Escrow Agreement) in an aggregate amount sufficient to provide not more than $639,823 of Improvements and not more than six months' capitalized interest at an effective cost to the City not to exceed 6.80% per annum. The Certificates shall mature and be subject to redemption at the times and in the amounts, bear interest at the rates, and contain such other terms, as set forth in the Escrow Agreement, which terms are for this purpose incorporated in this resolution and made a part hereof. . APproval and Execution of Documents. The forms of Service Agreement, Lease and Escrow Agreement referred to in REGULAR COUNCIL MEETING NOVEMBER 9 1992 PAGE 5 o . paragraph 2 are approved. The Assignment of Provider to Escrow Agent of all Provider's right, title and interest in and to the Lease and Rental Payments, for the benefit of owner of Certificates is also hereby approved. The Service Agreement, the Lease and the Escrow Agreement shall be executed in the name and on behalf of the City by the Mayor and City Manager, or other officers of the City, in substantially the form on file, but with all such completions and changes therein, not inconsistent with Minnesota Statutes, Section 465.71 or other law, as may be approved by the officers executing the same, which approval shall be conclusively evidenced by the execution thereof. Copies of all documents shall be delivered and filed as provided therein. Offerinq Memorandum. In connection with the offer and sale of Certificates by the Undewriter, the City hereby approves the circulation by the Underwriter of an Offering Memorandum describing the certificates and related matters, provided the Offering Memorandum (including any preliminary Offering Memorandum) shall be in such form as the Mayor or City Manager, with the advice of legal counsel to the City, shall approve. The City shall cause to be provided to the Underwriter, no later than seven days after approval of the final Offering Memorandum, but in any event in sufficient time to accompany any confirmation sent. by the Underwriter to any purchaser of the Certificates, sufficient copies of the Offering Memorandum to satisfy the Underwriter's obligations under Rule 15c2-12 of the Securities Exchange Act of 1934 with respect to the distribution of the Offering Memorandum. Designation Under Internal Revenue Code Section 265(b). . The City hereby designates the Lease as "qualified tax- exempt obligation" for purposes of Section 265(b) of the Internal Revenue Code of 1986, as amended (the "Code"). The reasonably anticipated amount of tax-exempt obligations which will be issued by the City in the current calendar year does not exceed $10,000,000. Tax Matters. The City expects that the Lease will be exempt from the arbitrage rebate requirements of Section 148(f) of the Code, by reason of the exception provided in Section 148(f) (4) (B) (relating to obligations the gross proceeds of which are expended no later than six months after this date of issue) or (if applicable) the exception provided in Section 148(f)(4)(D) (relating to obligations issued during the calendar year in which the REGULAR COUNCIL MEETING NOVEMBER 9, 1992 PAGE 6 . issuer does not reasonably expect to issue more than $5 million of tax-exempt obligations). The City agrees, however, that it will comply with the requirements of Section 148(f) of the Code to the extent applicable, and it will not cause the proceeds of sale of the Certificates to be invested or used in such a manner as to cause the Lease to be deemed an "arbitrage bond" under Section 148 of the Code, a "private activity bond" under Section 141 of the Code, or an "advance refunding bond" under Section 149(d) of the Code. Certificates, etc.. The Mayor, the City Manager and other officers of the City are authorized and directed to prepare and furnish to bond counsel, the Provider, the Escrow Agent and the Underwriter certified copies of all proceedings and records of the City relating to the Service Agreement, the Lease, the Offering Memorandum (including certification that the Offering Memorandum is deemed "final" as of its date for purposes of Rule 15c2- 12 promulgated under the Securities Exchange Act of ]934), and such other affidavits and certificates as may be required to show the facts appearing from the books and records in the officers' custody and control or as otherwise know to them; and all such certified copies, certificates and affidavits, including any heretofore furnished, sha]! constitute representations of the City as to the truth of all statements contained herein. Passed this 9th day of November, 1992. Offered by: Seconded by: Roll call: Ruettimann Peterson C]erkin, Ruettimann, Peterson, Murzyn - aye Nawrocki - nay Mayor Donald J. Murzyn, Jr. Jo-Anne Student, Council Secretary Motion by Ruettimann, second by Peterson to enter into a seven year agreement with Honeywell to provide an energy conservation program as authorized by State Statute 471.345 to provide a retrofit program, an off-site energy management program, and a full service maintenance REGULAR COUNCIL MEETING NOVEMBER 9, 1992 PAGE 7 . program as described in Exhibit A; and to authorize seven annual payments of $120,490 for the payment of the new equipment and a first year payment of $53,324 for the energy management and service maintenance agreements with payments escalating as described in Exhibit A; and furthermore, to authorize the Mayor and City Manager to sign the necessary agreements. Roll call: Clerkin, Ruettimann, Peterson, Murzyn - aye Nawrocki - nay b. Second Reading of Ordinance No. 1236, Being an Ordinance Amending Ordinance No. 853, City Code of 1977, Pertaining to the Regulation of Skateboards, Rollerskis, Rollerskates and Rollerblades on Public and Private Grounds The City Manager advised this ordinance was reviewed because of some citizen concerns regarding prohibitions in certain areas. It. was suggested that the limitations on certain areas in the City be removed and that the allowable areas for these types of equipment be parallel to that for the use of bicycles. Bicycle use is prohibited in business districts and on sidewalks. Two citizens noted they regularly use rollerblades and felt. this ordinance would limit their personal use. They suggested that the ordinance only address the use of skateboards. Councilmember Nawrocki was of the opinion that the use of rollerskis remain in the ordinance. He also felt the geographic area mentioned in section (a) should stay in the ordinance relative to skateboards and rollerskis. Motion by Ruettimann, second by Nawrocki to table this matter until the next regular Council Meeting. Roll call: All ayes COMMUNICATIONS a. Planning and Zoning Commission 1. Conditional Use Permit, Kendall Stone, 4747 Central Avenue Motion by Clerkin, second by Peterson to approve the Conditional Use Permit to allow the operation of a Christmas tree sales lot in the northwest corner of K-Mart parking lot at 4747 Central Avenue from November 27, 1992 through December 23, 1992, provided all licensing requirements are fulfilled. Roll call: All ayes REGULAR COUNCIL MEETING NOVEMBER 9, 1992 PAGE 8 2. Conditional Use Permit, Frank & Jacqueline Padula, 3851 Central Avenue Motion by Peterson, second by Nawrocki to approve the Conditional Use Permit request to allow a residential dwelling unit on the second floor of the commercial property at 3851 Central Avenue provided a one hour fire separation be verified prior to occupancy of the first floor. Roll call: All ayes 3. Variance, American Handyman, 5011 Fifth Street Motion by Peterson, second by Clerkin to approve the request for a variance of 3'10" on the sideyard setback to allow the construction of an addition on the rear of the house at 501] Fifth Street as it will improve the liveability of the premises, and provided that all work, including exterior painting of the building, be completed within six months from the date the building permit is issued. Roll call: All ayes 4. Desisnated Parkinq Spaces - Box Seat, 4005 Central Avenue Councilmember Nawrocki noted that. in the staff report at the November 3rd Planning & Zoning Commission Meeting, mention was made tY~at the City Council made a formal decision at one of its work sessions. He felt this was not correct as no formal decisions are made at Council work sessions. The matter referred to in the report was regarding designating/marking parking spaces at the Box Seat, 4005 Central Avenue. Motion by Murzyn, second by Ruettimann to reconsider the motion regarding the parking designation requirements for the Box Seat which was taken at the September 14, 1992 Council Meeting. Roll call: All ayes Motion by Nawrocki to lay this matter over until later in the meeting. Motion dies for lack of a second. Motion by Murzyn, second by Clerkin to approve the Conditional Use Permit for the Box Seat. The minutes of the September 14, 1992 Regular Council Meeting were reviewed. The motion was withdrawn. Motion by Peterson, second by Ruettimann to approve the reconsidered motion and approve the conditional use permit for the Box Seat Restaurant at 4005 Central Avenue. Roll call: All ayes REGULAR COUNCIL MEETING NOVEMBER 9, 1992 PAGE 9 . . b. Traffic Commission The minutes of the November 2, 1992 Traffic Commission Meeting were included in the agenda packet. No Council action was required. OLD BUSINESS a. Authorization to Establish Public Hearing for Consideration of Alley Lighting The City Attorney's opinion regarding the definition of "resident owners", as requested by Counci]member Nawrocki, was discussed. Motion by Clerk].n, second by Ruettimann to establish November 23, 1992 at 7:00 p.m. as a public hearing for consideration of alley lighting between Fillmore and Pierce Streets, 46th to 47th Avenues. Roll call: All ayes NEW BUSINESS a. Authorization to Enter into Agreement for Executive Search Assistance in Selection of City Manaqer Motion by Ruettimann, second by Peterson to authorize the Mayor and City Manager to enter into an agreement with Brimeyer Group for executive search assistance in the selection of a new City Manager. Motion to amend by Nawrocki to replace Brimeyer Group with Barna, Guzy, and Steffen, Ltd. Motion dies for lack of a second. Roll call: All ayes b. Offer to Purchase Tax Forfeit City-Owned Property Metro Exteriors has offered to purchase four parcels of City- owned land. They are 572 and 578 39th Avenue (Lots 9 and 10) and 568 and 570 38th Avenue (Lots 11 and 12). Staff is recommending rejection of the bid for Lots 9 and l0 because the Council had decided previously to hold these two lots for construction of a double bungalow. These combined lots are serviced by two water lines and two sewer lines. Also, the City does not presently hold an abstract for Lot 9. The City Manager advised it takes some time to obtain this abstract and it is costly. REGULAR COUNCIL MEETING NOVEMBER 9, 1992 PAGE ]0 A representative of Metro Exteriors stated be could clear up the title issue in from seven to ten days. The City has a Certificate of Title for Lots 11 and 12 which have one water and sewer service. In 1991, the Council decided to combine these lots for a single family home. The purchaser advised that he has a buyer for a home to be built on one of these parcels and would like to start construction soon. The buyer wishes to move in by February, 1993. Metro Exteriors offered to pay $17,000 for Lots 9 and 10 and $16,000 for Lots ]l and 12. An ordinance is required for the sale of City-owned property. Motion by Nawrocki, second by Peterson that staff be directed to prepare an ordinance for consideration later on in this meeting that would authorize the sale of Lots 9 and ]0 as being discussed for the amount of $17,000 or if the title is deemed not to be able to be passed within two weeks, that alternatively the sale of Lots 1] and 12 in the amount of $16,000 would be authorized. Roll call: All ayes c. Flexible Benefit Plan Motion by Peterson, second by Ruettimann to authorize the Mayor and City Manager to enter into a three year contract with Flex Compensation, Inc. for the design, implementation and administration of a flexible benefit plan, as outlined in the proposal dated August 12, 1992, with an option of in-house administration in the second and third year. Roll call: All ayes d. Authorization to Obtain Quotes for Park Benches for Huset Park Skatinq Rink Motion by Peterson, second by Murzyn to authorize staff to obtain quotes for up to six park benches for the Huset Park skating rink. Roll call: All ayes e. Authorization for Chanqe Order for Silver Lake Lift Station, Project No. 9120 Motion by Clerkin, second by Peterson to authorize Change Order No. 9120-2 with Ford Construction Company of Excelsior, Minnesota, extending the completion date for the Silver Lake Lift Station to November 27, ]992; and furthermore, to authorize the Mayor and City Manager to execute the agreement. Roll call: All ayes REGULAR COUNCIL MEETING NOVEMBER 9, 1992 PAGE 11 f. Lease for Third Liquor Store Motion by Clerkin, second by Ruettimann to authorize the Mayor and City Manager to enter into a lease agreement with Levine Investments for 10,030 square feet located at 2241 37th Avenue Northeast, Columbia Heights, Minnesota, for a five year lease at $3.65 per square foot with a five year option at $4.25 per square foot and a second five year option at $5.50 per square foot, and to reimburse Levine Investments for initial leasehold improvements in the amount not to exceed $35,000, and to authorize staff to seek bids for all other equipment needed to open the liquor store. Roll call: Clerkin, Ruettimann, Peterson, Murzyn - aye Nawrocki - nay g. Repair of J.P. Murzyn Hall Roof Information regarding this matter was not available. No Council action was taken. h. Tree P]antinq Proqram Motion by Clerkin, second by Ruettimann to authorize a Change Order with Fair's Garden Center, Inc. of Maple Grove, Minnesota, extending the completion date for the 1992 Tree Replanting Contract to May 14, 1993; and furthermore to authorize the Mayor and City Manager to enter into an agreement for the same. Roll call: All ayes Offer to Purchase Tax Forfeit City Owned Property (cont.) The City Attorney drafted Ordinance No. 1258 and read it in its entirety. He advised it was in written form and available to the public. Motion by Nawrocki, second by Murzyn to approve the First Reading of Ordinance No. 1258 and that the second reading will be held on November 23, 1992. Roll call: All ayes ORDINANCE NO. 1258 BEING AN ORDINANCE FOR THE SALE OF REAL ESTATE OWNED BY THE CITY OF COLUMBIA HEIGHTS The City of Columbia Heights does ordain that the real estate owned by the City of Columbia Heights located in Anoka County and described as Lots 11 and 12, Block 89 in Columbia Heights Annex to Minneapolis be sold to Metro Exteriors for the purchase price of $16,000. REGULAR COUNCIL MEETING NOVEMBER 9, 1992 PAGE 12 All real estate taxes due and payable in calendar year 1992 and all special assessments to be paid by the City of Columbia Heights at the time of closing. This sale is contingent upon one single family dwelling being built upon the two lots. First Reading: November 9, 1992 i. Bus Shelters in the City Councilmember Nawrocki inquired when the pad will be installed for the bus shelter on 40th and University Avenues. The Public Works Director responded that the contractor will begin the work when the permits are obtained. The City Manager advised that the bus shelter to be located on 44th and Central Avenues has been delayed because of concerns expressed by Super America/Ashland Oil Corporation. They claim that a portion of this shelter would be on their property. Staff is working on the matter. j. Approval of Board of Trustees Meetinq Minutes Councilmember Nawrocki had requested the minutes of the October 26, 1992 Board of Trustees be removed from the consent agenda and approval be withheld until there was another Board of Trustees Meeting. He felt this was the appropriate forum in which to approve these minutes rather than at a Regular Council Meeting. k. Metropolitan Council Meetinq Councilmember Nawrocki attended a Metropolitan Council Meeting where Section 8 Housing was discussed. He noted that the residency requirements for recipients of Section 8 housing vouchers allowed people from Minneapolis to use their vouchers in communities other than Minneapolis. Columbia Heights' Housing Program is administered through the Metropolitan Council. Recipients in Columbia Heights who receive these vouchers are not allowed to move into Minneapolis. Minneapolis administers its own Section 8 Housing Program. Councilmember Nawrocki felt the City should be moving forward to undertake the administration of its own Section 8 Housing Program. He is of the opinion that the City has more than its share of Section 8 Housing. REGULAR COUNCIL MEETING NOVEMBER 9, 1992 PAGE ]3 1. Manaqement of Parkview Villa At the November 10th NRA Meeting the management of Parkview Villa will be discussed. Councilmember Nawrocki advised that the two options which will be considered are a management firm or an individual who has a degree and some experience in housing management. Me noted a management firm would be more expensive but would supply more back up. Mayor Murzyn inquired if any Councilmembers had opinions on this matter. None were expressed. m. Council Work Sessions Monday, November 16th at 8:00 p.m was selected as the date and time for a Council work session. At that meeting other work sessions dates will be established. The City Manager advised that issues for consideration at the work session will include the budget, the HRA and miscellaneous items. 10. REPORTS a. Report of the City Manaqer The City Manager's report was submitted in written form and the following item was discussed: Condemnation Proceedinqs at 4207 Central Avenue: The City Manager advised that the owner was given forty five days to demolish the house but no demolition permit has been issued. It is presently unoccupied but it still has water service. The City Manager will keep the Council updated. b. Report of the City Attorney The City Attorney had nothing to report at this time. ADJOURNMENT Motion by Ruettimann, second by Clerkin to adjourn the meeting at 10:20 p.m. Roll call: All ayes Mayor/~2)onald J.Ju~zyn~r. ~-~fine Student, Council Secretary