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February 1, 1999 Work Session
ayor CITY OF COLUMBIA HEIGHTS W Gary L. Peterson Councilmembers 590 40TH AVENUE N.E., COLUMBIA HEIGHTS, MN 55421-3878 (612) 782-2800 TDD 782-2806 Donald G. Jolly Marlaine Szurek Julienne Wyckoff City Manager Walt Fehst ADMINISTRATION NOTICE OF COUNCIL WORKSESSION Notice is hereby given that a Council Work Session is to be held in the CITY OF COL UMBL4 HEIGHTS as follows: Meeting of COL UMBIA HEIGHTS CITY CO UNCIL Date of Meeting: MONDAY, FEBR UARY 1, 1999 Time of Meeting: 8: 00 P.M. Location of Meeting: CITY HALL CONFERENCE ROOM I AGENDA 1) BOARD, COMMISSION, ORGANIZATION COUNCIL REPRESENTATION 2) TELEPHONE SYSTEM CONSULTANTS 3) BOND SALE 4) WATER METER REPLACEMENT PROJECT 5) WATER AND SEWER RATE INCREASES 6) RESOL UTION DECLARING DWELLING HAZARDO US AT 4358 THIRD STREET N.E. 7) AUTHORIZATION TO PURCHASE TWO 1999 POLICE SQUADS 8) 1999 ANIMAL CONTROL CONTRACT 9) MUNICIPAL SERVICE CENTER DUCT CLEANING 10) 1999 STORM WATER ISSUES: a) Receive Feasibility Report for the 4300 Block of Monroe; b) Funding, c) Proposed Work Program 11) LCDA MEMORANDUM OF UNDERSTANDING 12) AUTHORIZE REFURBISHING COMMUNITY B ULLETIN BOARD 13) TIF CASH FLOW REVIEW 14) UPDATING INSPECTION DEPARTMENT D UTIES The City of Columbia Heights does not discriminate 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 Columbia Heights'services, programs, and activities. Auxiliary aids for handicappedpersons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at 782-2800, Extension 209, To make arrangements. (TDD/782-2806 for deaf or hearing 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 FOR AGENDA OF THE FEBRUARY 1, 1999 COUNCIL WORK SESSION: The following are the boards, commissions and organizations in which the City participates. Some of them have a Council representative. On others, the City is represented by a member of the staff. Where there is no name, it indicates that the person is no longer on the Council. Telecommunications Commission Human Services Commission None - Library Board of Trustees Jolly Park & Recreation Commission Peterson Planning; & Zoning Commission Szurek Traffic Commission Jolly Southern Anoka County Consortium Delegate - e IteZ"LiiLlli t - City Manager YYC Suburban Rate Authority Delegate - Public Works Director Alternate - National League of Cities Delegate - Jolly Alternates - Councilmembers League of Minnesota Cities Councilmembers/City Manager Rice Creek Watershed District Jolly North Metro Mayors' Association Delegate - -N'ene-- Alternate - City Mkjaer Light Rail Transit Jolly Anoka County Joint Law Enforcement Council Heiuhts Pride Committee Youth Initiative Commission Design Team Delegate - N Alternate - Police Chief Szurek Szurek Szurek Mayor CITY OF COLUMBIA HEIGHTS Co� L. Peterson cilme 590 40TH AVENUE N.E., COLUMBIA HEIGHTS, MN 55421 -3878 (612) 782-2800 TDD 782-2806 Donald G. Jolly Marlaine Szurek Julienne Wyckoff City Manager Walt Fehst ADMINISTRATION NOTICE OF COUNCIL WORKSESSION Notice is hereby given that a Council Work Session is to be held in the CITY OF COLUMBIA HEIGHTS as follows: Meeting of: " COLUMBIA HEIGHTS CITY COUNCIL Date of Meeting: MONDAY, FEBR UARY 1, 1999 Time of Meeting: 8:00 P.M. Location of Meeting: CITYHALL CONFERENCEROOMI AGENDA 1) BOARD, COMMISSION, ORGANIZATION COUNCIL REPRESENTATION 2) TELEPHONE SYSTEM CONSULTANTS 3) BOND SALE 4) WATER METER REPLACEMENT PROJECT 5) WATER AND SEWER RATE INCREASES 6) RESOLUTIONDECLARING DWELLING HAZARDOUSAT 4358 THIRD STREETN.E. 7) AUTHORIZATION TO P UR CHASE TWO 1999 POLICE SQUADS 8) 1999 ANIMAL CONTROL CONTRACT 9) MUNICIPAL SER VICE CENTER D UCT CLEANING 10) 1999 STORM WATER ISSUES. - a) Receive Feasibility Report for the 4300 Block of Monroe; b) Funding; c) Proposed Work Program 11) LCDA MEMORANDUM OF UNDERSTANDING 12) AUTHORIZE REFURBISHING COMMUNITY B ULLETIN BOARD 13) TIF CASH FLOW REVIEW 14) UPDATING INSPECTION DEPARTMENT D UTIES The City of Columbia Heights does not discriminate 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 Columbia 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 Council Secretary at 782-2800, Extension 209, To make arrangements. (TDD/782-2806 for deaf or hearing 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 FOR AGENDA OF THE FEBRUARY 1, 1999 COUNCIL WORK SESSION: The following are the boards, commissions and organizations in which the City participates. Some of them have a Council representative. On others, the City is represented by a member of the staff. Where there is no name, it indicates that the person is no longer on the Council. Telecommunications Commission None Human Services Commission None Library Board of Trustees Jolly Park & Recreation Commission Peterson Planning & Zoning Commission Szurek Traffic Commission Jolly Southern Anoka County Consortium Delegate - None Alternate - City Manager Suburban Rate Authority Delegate - Public Works Director Alternate - None National League of Cities Delegate - Jolly Alternates - Councilmembers League of Minnesota Cities Councilmembers/City Manager Rice Creek Watershed District Jolly North Metro Mayors' Association Delegate - None Alternate - City Manager Light Rail Transit Jolly Anoka County Joint Law Enforcement Council Delegate - None Alternate - Police Chief Heights Pride Committee Szurek Youth Initiative Commission Szurek Design Team Szurek CITY COUNCIL LETTER ot- :February 8,1999 AGENDA SECTION: BID CONSIDERATION ORIGINATING DEPT.: CITY MANAGER NO: General Government APPROVAL ITEM: Telephone System Consultants BY: WILLIAM ELRITE BY: NO: DATE: January 27,1999 DATE: For some time now, the City's Siemens telephone system has been unreliable and required constant repairs to be kept in an operating fashion. There has been only one vendor who will do the repairs for the system due to its obsolescence, and even they admit it is a losing battle. The technology behind the Siemens system is antiquated and not year 2000 compliant, so some form of a new system will need to be implemented before then. Staff contacted numerous consultants. Both Eastman, Morley & Krenik Ltd and ESI Communications declined to bid. Elert and Associates bid the project at $11,500, Epic Consulting bid the project at $19,800 and Haigh, Todd & Associates bid the project at $22,450. Copies of the bids can be viewed at the Finance Department. Staff is recommending that the City hire Elert & Associates, based on their low bid, good references and the fact that they have a great deal of experience with governmental entities. Staff feels that their experience with governmental institutions will be invaluable in finding an economically feasible solution for the City of Columbia Heights. Based on past discussions there are two immediate solutions to the problem. One is to acquire a US West Centrix system that would cost approximately $3,000 a month under the state contract. The other alternative is to hire a consultant to evaluate our needs and based on those needs, the most cost efficient solution. According to the state representative, generally speaking for what you pay for Centrix over 5 to 6 years you could buy your own system which would last for 10 to 12 years. This makes Centrix a costly alternative. The consultant will determine if Centrix can be configured in a cost effective way or if purchasing a system would be better. At their meeting of January 21, 1999, the Telecommunications Commission reviewed the proposals received by staff , and passed a motion recommending that the City Council enter into a contract with Elert and Associates as a consultant. RECOMMENDED MOTION: Move to authorize the Mayor and City Manager to enter into a contract with Elert & Associates for consulting work to include determining specifications for a new telephone system for the City, writing a Request For Proposal to vendors for such a system and aiding in the implementation of the system per their proposal at a. cost of $11,500. COUNCIL ACTION: CITY COUNCIL LETTER work session ot: Y eoruary i. iggg AGENDA SECTION: WORK SESSION ORIGINATING DEPT.: CITY MANAGER NO: FINANCE APPROVAL ITEM: BOND SALE BY: WILLIAM ELRITE BY: NO: DATE: 1/28/99 DATE: The subject of a debt service bond sale has previously been discussed with the Council. The construction projects that were completed in 1998 were funded through internal loans and should have long-term financing through the use of bond proceeds. It is staff s recommendation to sell bonds to cover the 1998 and 1999 construction projects, and to refund the TIF bond issue as it can be refunded at a lower interest rate resulting in savings to the TIF fund. Dan Hartman from Springsted will be at the February I't work session with handouts and additional information on the various bond issues and the refunding. Attached is a summary schedule from Springsted showing the three proposed bond issues. The first issue is for assessment bonds that will fund our PIR special assessment fund and will be repaid from special assessments. The second issue is for utility bonds and will be repaid from the sewer/water utility funds. The third issue is the refinancing of the TIF bonds. At the meeting Mr. Hartman will review the proposed bond issues, along with the benefits of doing the bond issue at this time. WE:dn 9901285 COUNCIL ACTION: 85 E. SEVENT[=r PLACE, SirrE 100 SANT PAUL, MN SS(Oi-2887 651-223-3000 FAX:651-223-3002 //y/ January 28, 1999 Mr. William Elrite, Finance Director City of Columbia Heights 590 — 40' Avenue Northeast Columbia Heights, MN 55421=3878 Dear Mr. ;`trite: �f Sr RINGS 1 EY Public finance Advisors VIA FACSIMILE Based on discussions with Dan Hartman of our mice, we have sized and structured your proposed bond issues with the following terms: Issue Project Costs Total Principal Total Debt Service Term Average Annual Coupon Source of Payments General Obligation Improvements Series 1999A 1,130,340 1,160,000 1,455,165 11 years 4.009% Assessments General Obligation Utility revenue Series 1999B 1,368,760 1,405,000 1,791,325 11 years 4.045% Utility Revenues General Obligation Tax Increment Refunding Series 1999C 2,339,079 2,409,563 3,430,000 10 years 4.864% Tax Increment Clan wlll bring more details of the debt structure to your meeting on February 1, 1999_ After we have finalized the details, we will prepare a summary for distribution to your Council. in the meantime, should you have any questions, please call me at (651) 223-3€ 63. S4�orely, AleviAxuettel Project Manager cjb cc: Daniel W. Hartman, Springsted Incorporated 5A1NT PALL, MN - cM!NNEA.PoW. MN • BROOKFM(SJ,w( - OVERLAND PARK, M - WASMNGMN, DC • DES MOTH S. SA e/Z abva ONt 01 =Zt r.$-eZ-NVf' CITY COUNCIL LETTER 2. AGENDA SECTION: WORK SESSION NO: ITEM: BOND SALE NO: ORIGINATING DEPT. FINANCE BY: WILLIAM ELRITE DATE: 1/28/99 worx Nession ot: rebruary 1. 1999 CITY MANAGER APPROVAL BY: DATE: The subject of a debt service bond sale has previously been discussed with the Council. The construction projects that were completed in 1998 were funded through internal loans and should have long-term financing through the use of bond proceeds. It is staff s recommendation to sell bonds to cover the 1998 and 1999 construction projects, and to refund the TIF bond issue as it can be refunded at a lower interest rate resulting in savings to the TIF fund. Dan Hartman from Springsted will be at the February 1" work session with handouts and additional information on the various bond issues and the refunding. Attached is a summary schedule from Springsted showing the three proposed bond issues. The first issue is for assessment bonds that will fund our PIR special assessment fund and will be repaid from special assessments. The second issue is for utility bonds and will be repaid from the sewer/water utility funds. The third issue is the refinancing of the TIF bonds. At the meeting Mr. Hartman will review the proposed bond issues, along with the benefits of doing the bond issue at this time. r WE:dn _ , , 1 x 9901285 "z -IV 41 �� r If COUNCIL ACTION: 85 E. SEVENTH PLACE, SUITE 100 SAGVT PAUL, MN SSIOI-2887 651-223-3000 FAX:651-223.3002 �� SPRINGSTED Publu ft"anu Advisors January 28, 1999 VIA FACSIMILE Mr. William Elrite, Finance Director City of Columbia Heights 590 — 40' Avenue Northeast Columbia Heights, MN 55421-3878 Dear Mr. Write: Based on discussions with Dan Hartman of our office, we have sized and structured your proposed bond issues with the following terms: Issue Project Costs Total Principal Total Debt Service Term Average Annual Coupon Source of Payments Genera! Obligation Improvements Series 1999A 1,130,340 1,160,000 1,455,165 11 years 4.009% Assessments General Obligation Utility Revenue Series 19998 1,368,760 1,405,000 1,791,325 11 years 4.045% Utility Revenues General Obligation Tax Increment Refunding Series 1999C 2,339,079 2,409,563 3,430,000 10 years 4.864% Tax Increment Dan will bring more details of the debt structure to your meeting on February 1, 1999_ After we have finalized the details, we will prepare a summary for distribution to your Council. In the meantime, should you have any questions, please Cali me at (651) 223-3063. rely, Leven P. Kuettel Project Manager Cib oc: Daniel W. Hartman, Springsted incorporated SAINT PAt,}L. MN - MNNEAPOLtS. MN • bR00KF[ELD.VV1 - OVERLAND PARK. KS - WASEUNGTON, DC • DES MOFNES,1A CITY COUNCIL LETTER AGENDA SECTION: WORK SESSION NO: ITEM: WATER METER REPLACEMENT PROJECT NO: ORIGINATING DEPT.: FINANCE BY: WILLIAM ELRITE DATE:1/28/99 Work cession ol: rebruary 1, 1999 CITY MANAGER APPROVAL BY: DATE: Attached to this Council Letter is information that was handed out and reviewed with the City Council in May of 1998 and June of 1996. In 1996 the City Council authorized the installation of 100 radio -read meters as a demonstration project to determine how successful the use of radio -read meters is and their efficiency. Since their installation they have been read from handheld radio units on a regular basis, and have proven to be very efficient and successful. It is staffs recommendation that the City continue the project ofreplacing all water meters with radio -read meters. The attached cost information sheet that was reviewed at the work session on June 3, 1996, laid out three alternatives. It is staff s recommendation to proceed with the third alte:mative to pick up 50% of the meter replacement cost through the use of City utility funds, and to charge residents the other 50% through a surcharge added to their utility bill. If the cost is spread over 10 years the surcharge on their bill will amount to approximately $1 per month, or $3 per billing quarter. Staff will be available at the work session with additional handouts and information on this subject. WE:dn 9901286 COUNCIL ACTION: /. CITY OF COLUMBIA HEIGHTS DATE: MAY 29, 1998 TO: WALT FEHST CITY MANAGER FROM: WILLIAM ELRITS�-4-- ')" '—_ FINANCE DIRECTOR RE: WATER METER REPLACEMENT PROJECT The City received proposals for an automated meter replacement system on April 30, 1996. These proposals were reviewed by staff and the City Council, and the decision was made to go with WaterPro, utilizing Sensus meters, as WaterPro had provided the most cost effective, efficient proposal. Based on this decision, the City Council approved installing 100 test meters. These were installed, and for over a year these meters have been read using the automated handheld reading unit. At the present time the system is operating very efficiently and effectively on these 100 meters. Subsequently, it is staff s recommendation to proceed with a complete water meter replacement throughout the City of Columbia Heights. I would like to see this item placed on the upcoming City Council work session for discussion purposes. I have attached a copy of my memo from June 3, 1996 outlining some financing alternatives. In addition, I will have more information available for handouts at the actual work session. If there is anything additional you would like on this subject, please let me know. WE:dn 9805292 Attachment DATE: JUNE 3, 1996 TO: MAYOR JOSEPH STURDEVENT COUNCILMEMBERS DONALD JOLLY MEG JONES GARY PETERSON ROBERT RUETTiMANN FROM: WILLIAM ELRTTE FINANCE DIRECTOR RE: FINANCING ALTERNATIVES FOR THE NEW METER SYSTEM The attached schedule shows some alternatives for financing the cost of the meter system, with an alternative for the entire cost of the new meter system being charged to the customer, the entire cost being picked up by the City, and a proration of the cost between the City and the customer. All alternatives are based on the City providing the up -front cash from the water, sewer and refuse funds to finance the meter system. The second alternative is to finance the system through lease -purchase. Attached is an excerpt from one proposal on leasing alternatives. The lease rates in this alternative are very favorable and would be a very viable alternative for the up -front funding of the new meter system. WE:dn 9606032 City of Columbia Heights Water Meter Read System Cost Information for the Work Session of June 3, 1996 General Information Approximate number of meters 5,500 Estimated cost of a radio read system 1,275,500 Average meter cost installed 231.91 Water & Sewer 2 yr average annual revenue Water Fund 1,069,458 Sewer Fund 999,348 Water & Sewer increase in revenue due to more accurate meters Projected on a minimal 5% increase in accuracy Water Fund 53,473 Sewer Fund 49,967 Elimination of meter reade_position 26.491 Water 229,000 Sewer 926,680 Refuse 398,666 Financing a Altemative 1 rnatives Charge the customer for the full cost of new meters One time charge 231.91 Monthly charge (0% interest) over 5 years 3.87 Monthly charge (0% interest) over 10 years 1.93 Alternative 2 City picks up the entire cost Total Cash cost 1,275,500 5 year savings Increased revenue due to more accurate meters 517,202 Elimination of meter reader position 149,078 Total cost savings _ _ 666,280 st Net coof meters a ►er,5.vears"",1�. Alternative 3 50% city 50% customer Customer Charge One time charge Monthly charge (0% interest) over 5 years Monthly charge (0% interest) over 10 years City cash cost Increased revenue due to more accurate meters Elimination of meter reader position 637,750 637,750 517,202 149,078 115.95 1.93 0.97 CITY COUNCIL LETTER '7)o dcM d4 Pe, AGENDA SECTION: WORK SESSION NO: ITEM:. WATER METER REPLACEMENT PROJECT 091 ORIGINATING DEPT.: FINANCE BY: WILLIAM ELRITE DATE:1/28/99 Work Session of: YebruarY 1, 1999 CITY MANAGER APPROVAL BY: DATE: Attached to this Council Letter is information that was handed out and reviewed with the City Council in May of 1998 and June of 1996. In 1996 the City Council authorized the installation of 100 radio -read meters as a demonstration project to determine how successful the use of radio -read meters is and their efficiency. Since their installation they have been read from handheld radio units on a regular basis, and have proven to be very efficient and successful. It is staff s recommendation that the City continue the project ofreplacing all water meters with radio -read meters. The attache ost information sheet that was reviewed at the work session on June 3, 1996, laid out three alternatives It is staff s recommendation to proceed with the third alternative to pick up 50% of the meter replacement cost through the use of City utility funds, and to charge residents the other 50% through a surcharge added to their utility bill. If the cost is spread over 10 years the surcharge on their bill will amount to approximately $1 per month, or $3 per billing quarter', Staff will be available at the work session with additional handouts and information on this subject. WE:dn 9901286 COUNCIL ACTION: /. CITY OF COLUMBIA HEIGHTS DATE: MAY 29, 1998 TO: WALT FEHST CITY MANAGER ��,, FROM: WILLIAM ELRITE �A-1�"�V" FINANCE DIRECTOR RE: WATER METER REPLACEMENT PROJECT The City received proposals for an automated meter replacement system on April 30, 1996. These proposals were reviewed by staff and the City Council, and the decision was made to go with WaterPro, utilizing Sensus meters, as WaterPro had provided the most cost effective, efficient proposal. Based on this decision, the City Council approved installing 100 test meters. These were installed, and for over a year these meters have been read using the automated handheld reading unit. At the present time the system is operating very efficiently and effectively on these 100 meters. Subsequently, it is staff s recommendation to proceed with a complete water meter replacement throughout the City of Columbia Heights. I would like to see this item placed on the upcoming City Council work session for discussion purposes. I have attached a copy of my memo from June 3, 1996 outlining some financing alternatives. In addition, I will have more information available for handouts at the actual work session. If there is anything additional you would like on this subject, please let me know. WE:dn 9805292 Attachment c DATE: DUNE 3, 1996 TO: MAYOR JOSEPH STURDEVENT COUNCILMEMBERS DONALD JOLLY MEG JONES GARY PETERSON ROBERT RUETTIMANN FROM: WILLIAM ELRITE FINANCE DIRECTOR RE: FINANCING ALTERNATIVES FOR THE NEW METER SYSTEM The attached schedule shows some alternatives for financing the cost of the meter system, with an alternative for the entire cost of the new meter system being charged to the customer, the entire cost being picked up by the City, and a proration of the cost between the City and the customer. All alternatives are based on the City providing the up -front cash from the water, sewer and refuse fiends to finance the meter system. The second alternative is to finance the system through lease -purchase. Attached is an excerpt from one proposal on leasing alternatives. The lease rates in this alternative are very favorable and would be a very viable alternative for the up -front funding of the new meter system. rf i City of Columbia Heights Water Meter Read System Cost Information for the Work Session of June 3, 1996 Approximate number of meters 5,500 Estimated cost of a radio read system 1,275,500 Average meter cost installed 231.91 Water & Sewer 2 yr average annual revenue Water Fund 1,069,458 Sewer Fund 999,348 Water & Sewer increase in revenue due to more accurate meters Projected on a minimal 5% increase in accuracy Water Fund 53,473 Sewer Fund 49,967 Elimination of meter reader position 26,491 Funds Available Water 229,000 Sewer 926,580 Refuse 398.666 ing altern Alternative 1 Charge the customer for the full cost of new meters One time charge 231.91 Monthly charge (0% interest) over 5 years 3.87 Monthly charge (0% interest) over 10 years 1.93 Alternative 2 City picks up the entire cost Total Cash cost 1,275,500 5 year savings Increased revenue due to more accurate meters 517,202 Elimination of meter reader position 149,078 Total cost savings aM> .a..w.r..r.�.. 666,280 ters,et%Vk}}he�`ki7_ }.7y 220 3 50% city 50% customer Customer Charge 637,750 One time charge 115.95 Monthly charge (0% interest) over 5 years 1.93 Monthly charge (0% interest) over 10 years 0.97 City cash cost 637,750 Increased revenue due to more accurate meters 517,202 Elimination �ofrmeter �reader position 149,078 G� Net �Cill i V�Cr: J �Viil �7+=+ti'11i.:9rc1:�rL �P ^i =2 �: ,* x+Sa, 530 CITY COUNCIL LETTER AGENDA SECTION: WORK SESSION NO: ITEM: WATER AND SEWER RATE INCREASES NO: Work Session ot: 1,ebruary 1, 1999 ORIGINATING DEPT.: CITY MANAGER FINANCE APPROVAL BY: WILLIAM ELRITEBY: DATE: 1/28/99 DATE: The last water and sewer utility rate increases were in 1995, which was only the second utility rate increase since 1981. In general, the City has done an excellent j ob in maintaining costs and not increasing utility rates. However, this has created some minor problems. First, the last three years have resulted in small operating losses in the sewer operating fund. A rate increase is necessary in the sewer fund to bring the operating account to a profitable level. The construction account in the sewer fiend currently has a cash balance in excess of $1 million, so a rate increase for sewer construction purposes is not necessary at this time. The operating account in the water fund has been operated at a slight profit in recent years. However, there are no construction funds available in the water fund, and it is necessary to bond for the water construction projects that were done in 1998 and plan to be done in future years. A rate increase in the water fund is necessary to pay for the water construction bonds. In addition, for several years the City has reviewed and considered a water meter replacement program. The meters currently in place in the majority of the City are old and are not operating at total efficiency. A radio - read system was reviewed with the City Council in the past. It is staff s recommendation that we proceed with the installation of radio -read meters throughout the City and pass the cost on to the citizens through a surcharge on their utility bill. Staff will be available with handouts at the Monday night work session to further explain the needed rate increases and the surcharge for the water meter replacement program. WE:& 9901284 COUNCIL ACTION: CITY COUNCIL LETTER 6' Work Session ot: rebruary 1, 1999 AGENDA SECTION: WORK SESSION ORIGINATING DEPT.: CITY MANAGER NO: FINANCE APPROVAL ITEM: WATER AND SEWER RATE BY: WILLIAM ELRITE BY: INCREASES DATE: 1/28/99 DATE: NO: The last water and sewer utility rate increases were in 1995, which was only the second utility rate increase since 1981. In general, the City has done an excellent j ob in maintaining costs and not increasing utility rates. However, this has created some minor problems. First, the last three years have resulted in small operating losses in the sewer operating fund. A rate increase is necessary in the sewer fund to bring the operating account to a profitable level. The construction account in the sewer fund currently has a cash balance in excess of $1 million, so a rate increase for sewer construction purposes is not necessary at this time. The operating account in the water fund has been operated at a slight profit in recent years. However, there are no construction funds available in the water fund, and it is necessary to bond for the water construction projects that were done in 1998 and plan to be done in future years. A rate increase in the water fund is necessary to pay for the water construction bonds. In addition, for several years the City has reviewed and considered a water meter replacement program. The meters currently in place in the majority of the City are old and are not operating at total efficiency. A radio - read system was reviewed with the City Council in the past. It is staff s recommendation that we proceed with the installation of radio -read meters throughout the City and pass the cost on to the citizens through a surcharge on their utility bill. Staff will be available with handouts at the Monday night work session to further explain the needed rate increases and the surcharge for the water meter replacement program. WE:dn 9901284 Q COUNCIL ACTION: I. COLUMBIA HEIGHTS POLICE DEPARTMENT TO: Walt Fehst, City Manager FROM: Thomas M. Johnson, Chief of Poli e —�A SUBJECT: Work Session Item DATE: January 11, 1999 The following is a work session item to request authorization to purchase two police squads. BACKGROUND: Hennepin County has been awarded the contract for the delivery of police vehicles for 1999. This award is to Superior Ford Inc. of Plymouth, Minnesota. The base vehicle price listed in the award for the full size sedan is $19,915. As in past years, the deducts for the full size include, but are not necessarily limited to, engine block heater, noise suppression package, ABS brakes, and the deletion of silicone hoses. Add-on's include: single key -keyed alike system, vinyl back seat, driver's side power cloth bucket seat, limited slip no ABS brakes, rubber floor mats, left side spot light, under trunk lid lights, courtesy lamps disabled, white roof and doors --remainder of car black, battery controlled driver's side deck release, driver/front passenger door lock control, rear handles inoperative, and driver/front passenger window control. After the deducts and add-on's, the price of the car comes to $20,464. 1999 Ford Crown Victoria: four -door, base price with add-on's and deducts: $20,464.00 x two vehicles x 2 $40,928.00 1 parts manual 90.00 1 service manual 115.00 + sales tax 13.33 Total $41,146.33 ANALYSIS/CONCLUSION: The Police Department has reviewed both the Hennepin County bid and the State ofMinnesota bid for police vehicles and have found the Hennepin County bid is lower. It is our recommendation to the Council that our two new police vehicles be purchased from the Hennepin County bid, which has been awarded to Superior Ford of Plymouth, Minnesota. The Police Department will reduce its department fleet by two vehicles upon receipt of the new vehicles. RECOMMENDED ACTION: Move to authorize the purchase of two 1999 Ford Crown Victoria police vehicles, along with service and parts manuals per the Hennepin County bid, with funding coming from 431-42100-5150 and the Mayor and City Manager are authorized to enter into a contract for same. TMJ:mld 99-008 OP. COLUMBIA HEIGHTS POLICE DEPARTMENT TO: Walt Fehst, City Manager FROM: Thomas M. Johnson, Chief of Poli SUBJECT: Work Session Item, 1999 Animal Control Contract DATE: January 13, 1999 BACKGROUND: Attached is the 1999 animal control services contract with North Metro Humane Society. The Humane Society has been providing these services to the City of Columbia Heights for several years. Inquiries into other animal service providers have not produced a more cost effective method of providing this service. The Humane Society has proven to be a very good partner and has performed their services very well. ANALYSIS: The proposed 1999 contract begins January 1, 1999, and expires December 31, 1999. In order for the Humane Society to meet expenses, the following changes were required in this year's contract: The "impound fee" has been raised from $32 to $35 per animal for the first day of impounding. The "boarding fee" increases from $10 per day starting with the first day after impound to $11 per day. The "quarantine fee" increases from $5.50 per day to $6.00 per day. If this fee is not paid by the owner of the dog, it becomes the responsibility of the municipality. The "transportation fee" goes from $36 to a $35 flat fee. The "vet service fee" increases from $32/hour to $35/hour. The "euthanasia fee" increases from $35/pound for disposal to $.40/pound. The "vaccination fee" increases from $3.00/animal to $3.25/animal. The "euthanasia solution fee" increases from lcc @ $3.80 to lcc @ $4.00. Additional .5cc plus $.10—this increased from $.08. The ininimum monthly contract fee has been dropped from the contract. We have budgeted in the 1999 Police Department budget for the changes listed. Walt Fehst, City Manager Page 2 January 13, 1999 CONCLUSION: After reviewing the contract, it is my opinion that there are minimal increases in the contract. In tallying to other communities around us, I do not feel there is a better contract or situation available to us. Therefore, it is my recommendation that we sign the attached contract and continue the services offered by the North Metro Humane Society. RECOMMENDED ACTION: "Move to authorize the Mayor and City Manager to enter into a contract with the North Metro Humane Society for animal control/impound services for the contractual period of January 1, 1999, to December 31, 1999, and that funding for this service be provided for by the Police Department budget, 101-42100-3050.". TMJ:mld 99-014 Attachment CONTRACT FOR SERVICES WITH THE NORTH METRO HUMANE SOCIETY This contract, made and entered into this first day of January, 1999, by and between the North Metro Humane Society, 1411 Main Street, Coon Rapids, MN 55448, hereinafter referred to as `Humane Society," and the city of Columbia Heights, Minnesota, hereinafter referred to as "Municipality." Whereas, The Municipality is in need of animal control/nnpound and holding services; and Whereas, The Humane Society is qualified and willing to provide such services Whereas, The Municipality wishes to purchase these services from the Humane Society in accordance with this contract; Now Therefore, In consideration of the mutual covenants contained herein, it is agreed and understood as follows, L TERM The term of this contract shall be from January 1, 1999 through December 31, 1999, unless terminated earlier as provided herein. II. BASIC SERVICES The Humane Society agrees to provide the following services: 1. Shelter for animal drop-offs on a 24-hour basis. 2. Pick-up and transport animals to the shelter on weekdays from 1:00 p.m. to 4:00 p.m. each day and also on weekends from 1:00 p.m. to 4:00 p.m. depending on staff availability. Responses to requests for pick-ups and transport will be handled in the order in which they are received at the shelter. Individuals making the requests will be advised of the approximate time when pick-up will be made. 3. Animal examinations and veterinary care (within the scope of our abilities) as required whenever staff is available. 4. Boarding for up to five (5) days. 5. Euthanasia and disposal of animal if required. 6. Responding to all animal abuse/neglect cases in the Anoka County area in cooperation with municipal officials when necessary. IIL RESPONSIBUMUS OF THE MUNICIPALITY The Municipality shall pay the Humane Society the following fees: A. Impound Fee: An administrative charge of $35 per animal for the first day of impound. B. Boarding Fee: $11.00 per day, per animal, for each day after the first day of impound. C. Quarantine Fee: In addition to the regular boarding fee, $6.00 per day, per animal, for all animals which must be quarantined. When the Municipality has authorized quarantining an animal and the owner is unknown or known but will not pay the fee, the Humane Society will bill the Municipality. If the fee remains unpaid, the Humane Society will have the option of notifying the Municipality that after 30 days it will no longer accept quarantined animals. D. Transportation Fee: $3 5.00 E. Vet Services Fee: $35.00 per hour. F. Euthanasia Fee: $.40 per pound disposal. G. Vaccination Fee: $3.25 per animal. H. Euthanasia Solution Fee: 1 cc @ $4.00; additional .5 cc plus $.10 2. The Municipality will not be charged those costs recovered. from pet owners. 3. Charges for services shall be paid monthly or within thirty (30) days after submission of the monthly claims by the Humane Society to the Municipality. V. COMPLIANCE WITH LAWS In providing all services pursuant to this contract, the Humane Society shall abide by all statutes, ordinances, rules and regulations pertaining to or regulating the provision of such services, including those now in effect and hereinafter adopted. VL AUDIT DISCLOSURE AND RETENTION OF RECORDS The Humane Society agrees to make available to duly authorized representatives of the Municipality and either the Legislative Auditor or the State Auditor for the purpose of audit examination pursuant to MN. Stat. 16B.06, any books, documents, papers and records of the Humane Society that are pertinent to the Humane Society's provision of services hereunder. The Humane Society further agrees to maintain all such required records for three (3) years after receipt of final payment and the closing of all other related matters. VIL INSURANCE The Humane Society shall purchase, maintain in full force and effect during the term of this contract and provide proof of the following insurance coverage: A. Worker's Compensation: Coverage at statutory limits as provided by the State of Minnesota. B. Comprehensive General Liability: Coverage shall have minimum limits of $1,000,000 per occurrence, combined single limit for bodily injury liability and property damage liability. C. Business Auto Liability: Coverage shall have minimum limits of $500,000 per occurrence, combined single limit of bodily injury liability and property damage liability. This shall include owned vehicles, hired and non -owned vehicles and employee non -ownership. D. Current, valid insurance certificates meeting the requirements herein identified shall be available to the Municipality if so desired before the signing of this contract. All policies shall provide, and the certificates issued shall evidence, that the Municipality will be notified in writing at least thirty (30) days prior to cancellation or modification of coverage. This contract may be terminated by either party, with or without cause, upon thirty (30) days written notice, delivered by mail or in person, to the other party. VC MODIFICATIONS Any material alterations, modifications or variations of the terms of this contract shall be valid and enforceable only when they have been reduced to writing as an amendment and signed by the parties. X. ENTIRE AGREEMENT It is understood and agreed by the parties that the entire agreement of the parties is contained herein and that the contract supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the Humane Society and the Municipality. The parties hereto revoke any prior oral or written agreements between themselves and agree that this contract is the only and complete agreement regarding the subject hereof. NORTH O SOCIETY -=%-1 TITLE: Executive Director DATE: December 31, 1998 CITY OF COLUMBIA HEIGHTS, MINNESOTA MOW TITLE: BY: TITLE: DATE: 9. City of Columbia Heights Public Works Department Work Session Discussion Item Work Session Date: February 1, 1999 Prepared by: Kevin Hansen, Public Works Director/City Engin�6> Item: Cleaning and Sealing of Municipal Service Center HVAC Duct Work Background: The 1999 approved City budget provides $5,000 for the cleaning of the Municipal Service Center HVAC duct work under the Public Works Garage line item. The City Library had similar services recently conducted and City hall is scheduled to have their duct work cleaned February 22nd Analysis /Conclusions: Public Works solicited quotes based upon site inspections from several firms engaged in the business of commercial duct cleaning. Upon a site inspection by the first duct cleaning company, it was discovered that the MSC duct work is insulated on the inside. This is also the likely source of fine, black particulate matter that accumulates on surface tops throughout the forced air portion of the building. Although placed to prevent sweating of the metal duct work, mold can form on the interior surface of the insulation. Therefore, it is recommended that all insulated ducts be cleaned and sealed. A surface coating would be sprayed to all interior insulated ducts (see attached sheet which describes the process). Based upon the sealing requirement, staff received quotes from three firms. A spreadsheet detailing their price proposals is attached. Requested Action: Approval to award MSC duct cleaning and sealing work to Building Maintenance, Inc in the amount of $3,290, plus tax, with funds appropriated from 701-49950- 4000. Attachment: Proposed Cleaning and Sealing process Spreadsheet of Proposals Source Removal: VSI is committed to source removal of dirt/debris_i' and other contaminates. VSI cleaning procedures require the use of a patented high powered HEPA filtered (99.97% efficiency .3 microns) vacuum collection system to protect the working environment while collecting the dirt/debris and other contaminates. The dirt and debris is removed from all the surfaces by power brushing and then a final air washing insures quality workmanship and customer satisfaction. Dealing With Mechanical Insulation: In many cases the mechanical insulation found inside the ductwork is damaged or deteriorated. In the past the building owner would replace this ductwork. Today, in many cases this insulation can be repaired and enhanced by applying Tough -Coat mechanical insulation repair coating. This option can represent a tremendous savings for the building owner. Tough -Coat is formulated to help prevent the regrowth of microbial contamination. Air Handling Units, Plenums, Etc.: In areas iv moisture r high wear are a problem, IMCOA is t ong term solution. I is a closed cell polyole yethylene) foam insulation that offers uni erma cal and chemical resistant properties. It is glued a place with all seams being sealed. IMCOA FPA 90A & d has similar thermal capab' . i er glass insulation with excellen ture resistance igh durability. -- bial Contamination: VSI has several ways to co A micro bc Lamination. This includes source remova ontami- 6by =� ` _ pates, sanitizin twork with an EPA re i sanitizer, and 16 ` = cleaning/then coating echanical ' ation with Tough -Coat. ��ope �����' In addition VSI is a certifie icator for the AEGIS Microbe �l t0'����� = Shield Program which i orates a e EPA registered antimi- - ,���� = - crobial which ' epted for use on all in non food contact surface has the experience and the tools to P71,10 r help you of microbial contamination problems. PUBLIC WORKS MUNICIPAL BUILDING OFFICE AND MEZZANINE AREAS HVAC SYSTEM CLEANING PROPOSALS COMPANY CLEANING COATING TOTAL (4) {1) (2) VAC SYSTEM INDUSTRIES $2,240.00 $1,625.00 $3,865.00 {1) (3) NATIONAL SURFACE CLEANING $2,200.00 $1,190.00 $3,390.00 (1) (2) B & M BUILDING MAINTENANCE $1,705.46 $1,581.00 $3,286.86 (1) SUPPLY AND RETURN DUCT. (2) COAT SUPPLY DUCT WITH "TOUGH COAT" MECHANICAL INSULATION REPAIR COATING. (3) COAT SUPPLY DUCT WITH "FOSTERS" 40-20 FUNGICIDAL COATING. (4) ADD APPLICABLE SALES TAX TO TOTAL ENGINEERING DEPARTMENT (B CITY of COLUMBIA HEIGHTS I JANUARY 1999 DAVID J. HAUSWIRTH 537 38TH DWG City of Columbia Heights Public Works Department Work Session Discussion Item Work Session Date: February 1, 1999 Prepared by: Kevin Hansen, Public Works Director/City Engine Item: 1999 Storm Water Issues Background: Work on various elements of the City-wide storm water improvement program is continuing and three items are presented herein for discussion and direction. A. Receive Engineering Report for 4300 block of Monroe B. 1999 DNR Funding C. Proposed Work Program Analysis /Conclusions: A. Receive Engineering Report for 4300 block of Monroe The City Council authorized the addition of this study area at the July 8' work session where all other engineering reports were presented and discussed. The report details that flooding has occurred in the 4300 block alley between Monroe and Madison Streets in the 1997 storms and again in spring and summer events in 1998. Based upon rainfall events in 1998, a damage claim was filed by a duplex at 4326/4332. Our records show flooding in this location has occurred on several occasions. The analysis and recommendations by BRA follow the same process as in previous studies. Three alternatives were evaluated: Trunk storm sewer to Jackson Pond; Property acquisition of the duplex and creation of a small pond; and Trunk storm sewer in Madison St. Based upon cost and disruption to local residents, BRA recommends new storm sewer under Madison St. This area is in Zone 6 of the City's street rehab program currently scheduled for the year 2002. B. 1999 DNR Funding The City was awarded $92,000 in 1998 by the DNR under the Flood Mitigation Grant Program. The $92,000 represented the last of the funds available under this program in 1998. At that time, the DNR indicated the remaining City grant applications would be eligible and receive priority in the next grant program cycle. Work Session 2-1-99 199 Storm Water Issues Page 2 With the beginning of the new year, I contacted the Administrator of the Flood Mitigation Grants Program to check on the status of the other City applications and what the timing of review of awards would be. He informed me that the DNR is not taking a bonding package to the Legislature until October. Since a condition of these grants is that no work can begin prior to a contract being executed, this will impact other storm water projects contemplated for 1999 construction. The only other source of funding at this time would be for the City to bond for the other storm water improvements. C. 1999 Work Program To clarify what areas have had engineering studies performed and what areas we are addressing internally, please reference the attached spreadsheets. Prestemon Park, Tyler Place and 44' Avenue have been awarded matching grants from the DNR in 1998. I am recommending to include the following in a 1999 Storm Water Improvement Program: • Jackson Pond Spillway Construction • Monroe St. and 49 1/2 Ave. catch basin • 4201 2"d St. Localized Improvements • 4232 3' St. Localized Improvements If constructed in 1999, these four areas would not be eligible for DNR grant reimbursement, but are comparatively small in cost. The issue then becomes whether to proceed on any of the three property acquisitions identified in the Jackson Pond area Engineering Report. The work, including property purchase, relocation and site grading will exceed $100,000 for each. At least one of the homeowners has indicated a strong desire to work with the City based upon the Engineering Study recommendation of property acquisition. Requested Action: A. Accept the Engineering Study report for the 4300 block of Monroe and authorize submittal of an application. B. Informational purposes only. C. Provide direction on proposed 1999 Storm Water Improvements Work Program. Attachment: Spreadsheets I a ❑ O O Z u LO LO O O co C14 F- Z o 0 Lc " co Z � O O O O 20 UcoLO m w row 0 O iO N l(i CO r r r � d? Ef} tf} o N O O � O O O in Q LO CO Lt} 69- N CO Z z ❑ a)rn CD CD m w +- Z w rn rn rn rn N 01 M O O Z z O (n W rL U) Q U) CL U) rL � N N w ❑ W w > Lu 0w w O Z w F- a) cu N c to J IO C O C N � U 7 co cu "- 7 CO �, to +-' > rn IO cn c C o ` U m O C Q" E cm E C f- O U N (ll > a) 3 ++ to C> O -00 CL E C- a) CL J E O U �- N {A O F o 06 w �G cm w 06 Z w Z rli N 0-coi a) a � ° �� > � Q °? 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L LO L O o c0 LO LO V., Q!.� NCO N CO tf} EPr 6% ci F- z C) O O L w LO O U) Cq (IF)- CNf T z ❑ �Q0 UO a a c o ��L IO o LO I- LO z z z W ❑ O S 0) m � rn M rn ch O C a) m r N 1-- CM �Z a) Q Q N a)4- d: O ~ Q C a) o O Cl) n m 0_ o O N Q U `- CL w E W cn co CD N U o co _ w U Q O — m CL ca ca o s a) w J a a »� ❑ co cm ° comLUjctm a�i o r o aa) 0 w c > LL N z H m c 6 a.. `as o 2 `N (D E 2 o W Q Z m 2 cm co d }}. ` N o MiTL o U C i= coO J U �, -a Q ca U Q' °� > m can U C O U c m E U o (D U CO W re FT a) _ a� D a� N a) c fn to M O in fn > Q a� O c 04 V N M co > L O E ~ - s O T N ny d O N 4) !L O CO dOD M X w+ CN 1 o co LO co y E T O E T LO m C5 T rn O 5i E z m c It U) t0 r co W LL _I F- CITY OF COLUMBIA HEIGHTS Work Session Meetin of. February 1, 1999 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY MANAGER NO: I Community Development I APPROVAL ITEM: LCDA Memorandum of Understanding BY: Kenneth R. Anderson ` ' "~ DATE: January 28, 1999 mm BACKGROUND: The City of Columbia Heights was informed by the Metropolitan Council that we have been approved for Livable Communities Demonstration Account (LCDA) grant funds in the amount of $575,000. These grant funds are intended to be used for the infill redevelopment of property generally owned by NEI College of Technology between 41s' and 42nd Avenue NE. The proposed project is currently in concept stages and will involve the development of for sale, owner -occupied townhouses, low income housing tax credit rental townhouses, and a senior housing component. Other properties that may be affected include the single family residence at 4157 Jackson Street NE, 4156 Central Avenue (City Wide Locksmiths), and 4150 Central Avenue (the former Columbia Professional Building). ANALYSIS: The Columbia Heights EDA and the City of Columbia Heights have been working in partnership with Real Estate Equities Development Company in the preparation of our LCDA application to the Metropolitan Council. Now that our application has been approved for funding, it will be necessary to more formally recognize this partnership as we move the redevelopment project beyond the concept phase. Accordingly, Keith Jans has prepared a Memorandum of Understanding (Preliminary Agreement) for the proposed transition block redevelopment project. This Memorandum of Understanding outlines the relationship and responsibilities between the parties as this project moves forward. You will note the Memorandum of Understanding includes several references to various time lines which trigger deadlines for performance of certain steps on the part of the Developer. It is anticipated that this memorandum will evolve into an eventual contract for private redevelopment between the City and Real Estate Equities Development Company as the project scope, financing, and planning work are further defined and completed. Keith Jans of Real Estate Equities Development Company presented the Memorandum of Understanding to the EDA at their January 19' meeting and answered questions and identified the work that has been accomplished to date. RECOMMENDATION: The EDA recommended adoption of the enclosed Memorandum of Understanding subject to review and approval as to form and content by City legal counsel. Jim Hoeft, City Attorney, has reviewed and responded in writing to this request (see attached) and has no problems with the document as written. RECOMMENDED MOTION: Move to approve the Memorandum of Understanding (Preliminary Agreement) between the City and/or Columbia Heights Economic Development Authority and Real Estate Equities Development Company for the LCDA transition block redevelopment; and furthermore, to authorize the Mayor and/or President and City Manager and/or Executive Director to enter into an agreement for the same. Attachments HAI-19-99memounden-land COUNCIL ACTION: 1VIEMORANDUM OF UNDERSTANDING (Preliminary Agreement) (Project: TRANSITION BLOCS; REDEVELOPMENT) This MEMORANDUM OF UNDERSTANDING (this "Memorandum") is made and entered into this day of . 19 , by and between the Columbia Heights EDA (the "EDA") and Real Estate Equities Development Company, its successors or assigns (the "Developer"). WTTNESSETH; WHEREAS, the EDA desires to promote redevelopment within its city limits; and WHEREAS, the Developer has submitted to the EDA a concept for the redevelopment of a parcel of land within the City; and WHEREAS, the Developer's concept, as it may be further amended or supplemented (hereinafter the "Project"), contemplates the redevelopment of the "Transition Block" into a combination of. the NEI College of Technology; a for -sale townhouse component; a tax credit rental component; a senior housing component; and additional municipal improvements, on a tract of land encompassing several parcels, including the NEI College of Technology campus, a private single family residence located at , 4156 Central Avenue (Citywide Locksmiths), and 4150 Central Avenue (the former Columbia Professional Building) (hereinafter the "project site"), the approximate boundaries of which are set forth in "Exhibit A" hereto; and WHEREAS, the EDA and the Developer together have secured funding from the Metropolitan Council's Livable Communities Demonstration Account to assist in financing the redevelopment of the project site; and WHEREAS, the EDA has reviewed the Project and has an interest in supporting redevelopment of the project site, under such terms and conditions as may be established by further negotiations during the term of this Memorandum between the parties, provided that: 1) A satisfactory agrecrnent can hereafter be reached between the parties regarding the minimum requirements for redevelopment of the project site; 2) The Developer, in its judgment, can secure satisfactory financing sufficient for completion of the Project; 3) A satisfactory agreement can be reached by all parties relative to the level of public assistance to be provided; JAN 15 '99 09:53AM REAL ESTATE EQUITIES P.3/5 4) All parties can satisfactorily agree on the design concept of the Project, including exterior material selection, unit configuration, site configuration, and additional architectural requirements; 5) The EDA is satisfied that the Project is economically feasible and in the best interest of the public. NOW, THEREFORE, in consideration of the mutual promises and agreements herein, and far other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledge, the EDA and the Developer agree as follows: 1) Unless otherwise extended by written agreement between the parties, negotiations shall continue for a period of 180 days following execution of this Memorandum. The Developer may request an extension for an additional 90 days by giving written notice to the EDA of a request to extend; provided that this Memorandum will be extended only if the EDA finds that the Developer has diligently undertaken and pursued its obligations under this Memorandum_ Nothing in this Memorandum shall be construed to require the. EDA to approve any element of the Project, nor shall this Memorandum be construed as vesting in the Developer any cause of action against the EDA arising from any failure or refusal by the EDA to approve the Project. 2) During the term of this Memorandum, or any mutually agreed extension thereof the parries shall use their best efforts to attempt to negotiate and formulate a definitive redevelopment contract (hereinafter the "Contract for Redevvlopmeut") which shall provide for the redevelopment of the Project and shall, at a minimum, contain the following - a) Terms and conditions upon which the Developer will acquire the land identified as the project site and complete the Project; b) Terms and conditions concerning the scope and timing of construction of the Project by the Developer and of any public improvements to be constructed in connection with the Project; and 3) During the term of this Memorandum, the Developer shall: a) Provide to the EDA, within 90 days of execution of this Memorandum evidence that it is duly organized and eligible to do business under the laws of the State of Minnesota. b) Provide to the EDA, within 60 days of the execution of this Memorandum, a preliminary design proposal and a cost analysis projection for the development, design and construction of the Project. T3he proposal shall show the location, area, SAN 15 '99 e9=53AM REAL ESTATE EQUITIES P.4i5 size and nature of the Project and other graphic or written explanations of the Project, and shall be accompanied by a time schedule for the Project. c) Within 180 days of execution, submit to the EDA for review a Project Financing Plan that shows the Developer's ability to finance the Project. d) Furnish to the EDA, or its designated financial consultant, such information or financial statements as the EDA may reasonably request concerning the entity comprising the Developer and evidencing the financial capacity of such entity. e) The Developer shall provide the EDA with all reasonably requested information necessary to evaluate the Project. 4) Indemnification of the EDA: a) The Developer understands and agrees that the EDA shall have no obligation for any expenses of the Developer heretofore or hereafter incurred with respect to the Project. b) The Developer agrees to indemnify and hold the EDA, harmless against any and all losses, claims, damages, expenses or liabilities to which the EDA may become subject to resulting from or in connection with the EDA's consideration of the Project. 5) Termination of this Memorandum: a) This Memorandum, and the approval of the Project by the EDA, if any, shall automatically terminate and be of no further effect if the Project does not commence construction within 9 months after the date of this Memorandum. The Developer shall not be entitled to any refund or rebate of the amount paid pursuant to this Memorandum as a result of such automatic termination. The Developer may request an extension of this Memorandum, but such an extension shall be effective only if approved by the EDA, in its sole discretion. 6) It is the intention of the parties that this Memorandum: a) Shall document the present understandings and commitments of the parties, and b) Shall lead to negotiation and execution of a mutually satisfactory Contract for Redevelopment for the Project prior to the termination date of this Memorandum. Said Contract for Redevelopment (together with any other agreements entered into between the parties hereto and contemporaneous therewith), when executed, shall supersede all obligations of the parties hereunder and. constitute the entire agreement between the parties hereto. SAN 15 '99 09:54AM REAL ESTATE EQUITIES P.5i5 IN WITNESS WHEREOF, the parties have executed this Memorandum as of the date first above written. THE COLUNMIA HEIGHTS EDA BY: TTS: BY: ITS: {Developer) BY: ITS. This document was drafted by Real Estate Equities Development C(mgmy. City of Columbia Heights LEGEND Q Parcels Transition Block Property City Parks Water Features Right -of -Way LCDA Transition Block Property rus,111 'Em' L NMI mill Sol will IME 111111 � This map illustrates the geographic boundary of the Transition Block property which is the primary subject of the livable Communities Demonstration Account (LCOA) application. iLLL-v X X Area Locator N sources: AColumbia Heights Planning Columbia Heights GIS Anoka Countv GIS I inch = 533 feet RF - 1:6,400 MnMap Date: January 15. 1999 4157 Jackson Street NE PIN #35-30-24-14-0096 Owner. Lawrence and Rose Ostrander Legal: Lots 29 & 30, Blk. 38, Columbia Heights Annex to Minneapolis Assessed Value: land value: $24,300 • improvements: $51,800 • est. market: $76,100 4156 Central Avenue NE PIN #35-30-24-14-0091 Owner. Citywide Locksmith Larry and Patricia Truehart Legal: Lot 1, Blk. 38, Columbia Heights Annex to Minneapolis Assessed Value: land value: $23,000 improvements: $44,600 est. market: $67,600 4150 Central Avenue NE PIN #35-30-24-14-0092 Owner: Economic Development Authority Legal. Lot 2 and South 11 ft. of Lot, Blk. 38, Columbia Heights Annex to Minneapolis Assessed Value: • land value: $9,300 • improvements: $4,700 • est. market: $14,000 4110 Central Avenue NE PIN #35-30-24-14-0149 & 0148 Owner: North Coast Partners, 7500 W. 78' Street, Edina, MN 55439 Legal: Lots 3 & 4, Blk. 38, Columbia Heights Annex to Minneapolis and lot/unit 1, Blk./Tract 1, Northwestern Addition Assessed Value: • land value: $263,600 • improvements: $763,400 • est. market: $1,027,000 825 415L Avenue NE PIN #35-30-24-14-0141 Owner: NEI College of Technology Legal: Lot/Unit 1, Blk./Tract 2, Northwestern Addition Assessed Value: land value: $757,400 improvements: $5,045,700 est. market: $5,803,100 FROM 1.28. 1999 15:415 P. 2 MORPRT A (U I7Y CHARLES M. 5SYK0RA l~t'.MA&WL, E. STEPPM4 RICI LARD A MLRRILL G S DANIEL D. OANTEn. jn. DARRELL A. JEN.SEN 13EVFALY K. DODGE ORF.QCI V. HEiti1ICK JEFN(EY S. Jc 1I INSVN )VAN 17. H EFT RUSSELL H CROWDFR JON 1` L•RIC;F:SC1N Barna c' Guzy Steffen, Ltd. )LEAN M. C;t)AUE AVE Sn—I: )TTM LEPA t.AWRENCEti.ICliiNSON 7 FI.17.ARF,THA SCHAVINU DAVIT) A. t ATTORNEYS AT LAW WILLUiM h. Hl1FFNI;I{ OM MA1 TH}{pMAS P. MAt,t�Nf: BRADLEY A. KISTsCHF.R MIC74AFI. F HURLEY 400 Nortlltown Finalicial Plitzit SUSAN A. RVEHRIC H RC3II. Coon � 200 CRapids 1 oulcvard MALCOLM P TERKY H HF.RMAN I. TAL. TALLE Minneapolis, MN 554.33-5894 KR1Sl t R RILEY RODURTQ HYNES (612) 780-8500 FAX (61Z) ISO-1777 1935.1993 MEMORANDUM TO. Ken Anderson, Community Development Director, City of Columbia Heights FROM: James D. Hoell, City Attorney, City of Columbia Heights RE: Memorandum of Understanding Between Columbia Heights EDA and Real Estate Equities Developinunt Company DATED: January 28, 1999 This tnento is to confirm our meeting and conversation on Wednesday, January 27, 1999, regarding the above -referenced document. In reviewing the document, I indicated that I would be looking for the following issues and areas of concern: Does this document create an exclusive relationship between the EDA and the developer? The agreement does not establish exclusive negotiation rights between the 11DA and the proposed developer. While the EDA could certainly enter into such an agreement, it would not be my recommendation in that it would preclude the EVA from discussing the development possibilities with any other potential interested parties. While no one has been beating down the door to redevelop this area, I think it would be a mistake for the EDA to enter into an exclusive agreement unless there was adequate consideration (i.e. money) being offered to the EDA to essentially keep this project off the market for a certain length of time. Since this Agreement is not exclusive, this concern is not at issue, 2. Does the agreement commit the EDA to take any action within a certain tinnefiame? I would be concerned if the agreement required the EDA to act in a certain fashion within a certain tinteframe. This agreement does not. The only timeframes established within the agreement are those placed on the developer in order to assure the EDA that the developer is seriously moving ahead with the concept. 3. Does the agreement contain any direct or indirect approvals from the EDA? Obviously I would not want the agreement to contain any such language that would either directly or indirectly be interpreted as a consent or agreement by the EDA to proceed An £tli nt 04,M rri jn y E.Vloyrr, FROM 1,28.1999 15:45 F. 3 January 28, 1999 Page 2 with this project in a certain fashion. This agreement does not contain any such manifest or latent approval. 4. Does the agreement contain any language that could he considered to be a promise from the BDA to take, or not take certain action in the future? This agreement does not contain any such promise, either direct or indirect. In fact, the agreement contains clear language to the contrary. As a practical matter, this agreement is meaningless from the perspective of the FDA. However, if it is of use to the potential developer, I would not object to the LDA entering into the same. If you or any of the commissioners have any remaining questions or concerns regarding the above -referenced document, please do not hesitate in contacting me. 43781_1 /j, CITY OF COLUMBIA HEIGHTS Work Session Meeting of. February 1, 1999 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY MANAGER NO: Community Development APPROVAL ITEM: TIF Cash Flow Review and BY: Kenneth R. Anderson or, BY: Proposed Special Legislation DATE: January 28, 1999 BACKGROUND: The EDA was presented with the draft Tax Increment Financing (TIF) cash flow report prepared by Springsted, Inc. at its January 19, 1999 meeting date. The EDA scheduled a special meeting for February 9, 1999 at 6:00 p.m. Furthermore, they requested the City Council discuss the report at its February 1, 1999 work session and consider some alternative revenue sources for potentially funding the proposed cash flow deficits shown in the next three years of the analysis. Commissioner Ruettimann had some ideas for accessing revenues to meet these deficits. Staff will present the suggestions verbally at the meeting. We have attached a copy of the proposed special tax increment legislation prepared by Steve Bubul of Kennedy and Graven, Chartered to consider as part of this discussion. Please bring to this meeting your copy of the TIF Report previously distributed to the EDA Commissioners. RECOMMENDATION: Please be prepared to discuss possible options and implications of different funding sources on the estimated cash flow deficits shown on the report. Attachments ltr2-1-99TIFcash flow COUNCIL ACTI R01IFRT A CA l7Y CEiARI.GS M. SG1fKOttA LZMARD E. STEFFEN IM141M. 17. tIANTIM..1R. AIC1IARnA.Mf RILL G S DEVERLYIQDODc7E VARKELL A. JENSFN ORB" V HEARLCK JF;N(LT S. )cg LNK)N JAMES D. HOUT KussaLL H. cR.'Ywr,Frt JUN1'kAt(.9-Wt4 Boma� Guzy & Steffen, jjtd. )VAN M.2UAUE 'n ML LAwRENCE R. ICIIINSYN 8-7ARF; A.S iAUIN( DAVIT) A. t^c1ca ATTORNEYS AT LAW WILLIAM r. MllFNYI:K THOMAS P. MAI.0Nr DRAULEY A. KI.F M-1-iF.R MKS{AFI. F HURLEY 400 Norchcown Financial PIiIzII SUbAN A. RUEHRICH VIROIL c. HFRRtCx Z00 Loon Rapids I31�ult vatrcl MALCOLM P. MKT HF.RMAN L TALLE Minneapolis, MN 554.33-5894 MIS-1I K RILET XCIU i?TC. HYNES (612) 760-8500 FAX (61",) 180-1777 193s•1993 MEMORAND U M TO: Ken Anderson, Community Development Director, City of Columbia Heights FROM: James D. Hoett, City Attorney, City of Columbia Heights RF,: Memorandum of Understanding Between Columbia Heights EDA and Real Estate Equities DeveIoprncnt Company DATED: January 28, 1999 This memo is to confirm our mecting and conversation on Wednesday, January 27, 1999, regarding the above -referenced document. In reviewing the document, I indicated that I would be looking for the following issues and areas of concern: 1. Does this document create an exclusive relationship betwccn the EDA and the developer? 'fhe agreement does not establish exclusive negotiation rights between the EDA and the proposed developer. While the EDA could certainly enter into such an agreement, it would not be my recommendation in that it would preclude the L'OA from discussing the development possibilities with any other potential interested parties. While no one has been beating down the door to redevelop this area, I think it would be a mistake for the EDA to enter into an exclusive agreement unless there was adequate consideration (i.e. money) being offered to the EDA to essentially keep this project off the market for a certain length of time. Since this Agreement is not exclusive, this concern is not at issue. Does the agreement cotnmit the EDA to take any action within a certain timeframe? 1 would be concerned if the agreement required the EDA to act in a certain fashion within a certain tinteirame. This agreement does not. The only timeframes established within the agreement are those placed on the developer in order to assure the EDA that the developer is seriously moving ahead with the concept. 3. Does the agreement contain any direct or indirect approvals trom the EDA? Obviously I would not want the agreement to contain any such language that would either directly or indirectly be interpreted as a consent or agreement by the EDA to proceed An F.It,.I Orronnnwy F.nph"r January 28, 1999 Page 2 ■ with this project in a certain fashion. This agreement does not contain any such manifest or latent approval. 4. Does the agreement contain any language that could be considered to be a promise from the LDA to take, or not take certain action in the future? This agreement does not contain any such promise, either direct or indirect. In fact, the agreement contains clear language to the contrary. As a practical matter, this agreement is meaningless from the perspective of the FDA. However, if it is of use to the potential developer, I would not object to the EDA entering into the same. If you or any of the commissioners have any remaining questions or concerns regarding the above -referenced document, please do not hesitate in contacting me. 437811 /J. CITY OF COLUMBIA HEIGHTS Work Session Meeting of: February 1, 1999 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY MANAGER NO: Community Develo ment I APPROVAL ITEM: TIF Cash Flow Review and BY: Kenneth R. Anderson BY: Proposed Special Legislation DATE: January 28, 1999 BACKGROUND: The EDA was presented with the draft Tax Increment Financing (TIF) cash flow report prepared by Springsted, Inc. at its January 19, 1999 meeting date. The EDA scheduled a special meeting for February 9, 1999 at 6:00 p.m. Furthermore, they requested the City Council discuss the report at its February 1, 1999 work session and consider some alternative revenue sources for potentially funding the proposed cash flow deficits shown in the next three years of the analysis. Commissioner Ruettimann had some ideas for accessing revenues to meet these deficits. Staff will present the suggestions verbally at the meeting. We have attached a copy of the proposed special tax increment legislation prepared by Steve Bubul of Kennedy and Graven, Chartered to consider as part of this discussion. Please bring to this meeting your copy of the TIF Report previously distributed to the EDA Commissioners. RECOMMENDATION: Please be prepared to discuss possible options and implications of different funding sources on the estimated cash flow deficits shown on the report. Attachments W-1-99TIFcash flow COUNCIL ACTION: x + PKUn RM"TA C21DV to tix,jLj F. STFFfEb! RIC11ARn A' Ur•Rl " VARRELL A. JENSEN JFFFNt;T s. K71IN�YVN i ItusSELL li. cRcMr+M JUN 1t UXIQ:,WN LAWRFN(.E R. IV1INSON DAVIT) A. THOMAS P. uAI.0Nr MICNAR. F. HURLEY VIRUIL I:. HF.RRICK HFRMAN L TALLE TO, FROM: RF,: DATED: 'JODGS niARLM M. STi=RA DANIRL D. OANTM. tR. W:VERLT V. DODGE ORFM V. LAMES D. HPEFf Barra, Guzy & Steffen, Ltd. AN M. WAM StXYirM-LEPAK 9.17.ARFMA 501AL11NU ATTORNPYS AT LAW WU-UAM r. r UKI-14 M 400 Norchrown Financial Plazu WiAUUY A. KLEM'14FIt ' VSAN A. RUtHM(N 200 goon Rapids Boulevard MALCOLM P. TEMRT Minneapolis, MN 554.33-5894 taus%-) IN KILI:T R('.IMVrC HYNES (612) 780-8500 FAX (011) 180-1777 I�ss•I ►3 MEMORANDUM Ken Anderson, Community Development Director, City of Columbia Heights James D. Hoelt, City Attorney, City of Columbia Heights Memorandum of Undersuuidiinb Between Columbia ;Heights EDA and Real Estate Equities Development Company January 28, 1999 This memo is to confirm our mectinng and conversation on Wednesday. January 27, 1999, regarding the above -referenced document. In reviewing the document. I indicated that I would be looking for the following issues and areas of concern: Does this document create an exclusive relationship between the EDA and the developer? '1'he agreement does not establish exclusive negotiation rights between the EDA and the proposed developer. While the EDA could certainly enter into such an agreement, it would not be my recommendation in that it would preclude the EDA from discussing the development possibilities with any other potential interested parties. While no one has been beating down the door to redevelop this area, l think it would be a mistake for the EDA to enter into an exclusive agreement unless there was adequate consideration (i.e. money) being offered to the EDA to essentially keep this project off the market for a certain length of time. Since this Agreement is not exclusive, this concern is not at issue. 2. Does the agreement cocnmit the EDA to take any action within a certain timeframe? 1 would be concerned if the agreement required the EDA to act in a certain fashion within a certain timeframe. This agreement does not. The only timeframes established within the agreement are those placed on the developer in order to assure the EDA that the developer is seriously moving ahead with the concept. 3. Does the agreement contain any direct or indirect approvals from the EDA? Obviously 1 would not want the agreement to contain any such language that would either directly or indirectly be interpreted as a consent or agreement by the EDA to proceed An &Iml OMwn.niry Fmld rye, January 28, 1999 Page 2 with this project in a certain fashion. This agreement does not contain any such manifest or latent approval. 4. Does the agreement contain any language that could be considered to be a promise from the LDA to take. or not take certain action in the Mum? This agreement does not contain any such promise, either direct or indirect. In fact, the agreement contains clear language to the contrary. As a practical matter, this agreement is meaningless from the perspective of the FDA. However, if it is of use to the potential developer, I would not object to the L• DA entering into the same. If you or any of the commissioners have any remaining questions or concerns regarding the above -referenced document, please do not hesitate in contaciing me. 437811 Jan-12-00 10:38am FrarKENNEDY i GRAVEN +8123372310 T-308 P.02/03 F-321 470 P"my Ccnmr 200 Sourh Sixth Srr=t 1vl. ukWlu MN 55402 (612) 337-9300 Wcphoac (612) 337-9310 far c-a►ail; :�er�ketutedr-�tswcn.awri MEMORANDUM TO: Ken Anderson wall Fehst Dan Harman Nick Skarich FROM: Stephen Bubul DATE: January 19, 1999 RE: Special Tax Increment Legislation Attached is a proposed special bill that addresses, in pan, the expected deficiencies in tax increment needed to pay debt service on outstanding tax increment bonds. The bill is summarized as follows: Section 1 exempts four TiF Districts from the "frozen" original local tax rate These are distracts created alter 1988, when the statute began requiring that tax increment be calculated based on the tax rate in effect when the district is created. If tax rates increase over time, the taxes collected from such increase are not captured as tax increment This bill would "unfreeze" the tax rate and allow the EDA to collect tax increment attributa a tote tax rats. �� ��/ kijvl r,k, (Ave') Section 2 provides that the tax increment attributable to increased tax rate may be used only pay debt service on "outstanding obligations" (defined below), and only to the extent that deficiencies remain after pooling all available tau: increment in the City. Section 3 authorizes pooling of tax increment from any TIF district in the City, in order to pry debt service on outstanding obligations. Section 4 defines "outstanding obligations" as any general obligation bonds issued before January 1, 1999, and secured in whole or 1n pan with tax increments. This definition excludes pay as you go contracts, which means that the City or EDA would not be authorized to pay any increased tax increment collected because of this legislation to developers These provisions will clarify the C1ty's ability to pool tax increment to the extent needed to make bond payments, and will provide some additional revenues to address signlncant short term deficits Sits-1i6754 COVE-s Jan-18-89 10:37am From-KENNEDY i GRAVEN +6123370310 T-508 P.03/03 F-321 A bill for an act relating to the City of Columbia Heights; authorizing certain expenditures from certain tax increment financing districts BE 1T ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. f ORIGINAL LOCAL TAX RATE M gASED.1 The provisions of section 469.177, subdivision la do not apply to tax increment financing district numbers IC2 (MURF), M8 (Sheffield), N7 (53 Avenue) and r3jP4 (Howdng TIF No. 1) in the City of Columbia jjSight.. Section 2. a.INiTTATIONS.I lax increment attributable to any increase in the actual local tax rate in any year over the original local tax rate previously cenified by Anoka !County for the tax increment districts referenced in section I shall be used solely to pay principal of and interest on any outstanding obligations after application of the amounts w�horized to be stint under section 3. Section 3. [POOLING P R.N TED.1 Notwithstanding any other law to the contrary tax increments from anv tax increment financing district in the city may be used to pay Dom, jncipal of and interest on outstanding obligations. the proceeds of which were used to finance activities located outside the boundaries of the district- The amount qualifying Linder this section to be spot outside the district is limited to an amount necessary to make oavment.:, on cmmandine obligations after application of tax increments originally pledged to pay such outstanding obligations. Section 4. j]DEFINMONS.1 For the purpose, of this act. the term 'outstanding AU4 were secured in whole or in natt with tax increment from any tax increment financing district in the city. Section 5. f1=EMCTIVE DATEI Sections 1 through 4 are rffertive upon local approval in compliance with the requirements of Minnesota Statutes. section 645.021-, and Sections I and 2 apply for taxespayable in 2000 and thereafter. SJB-1566U cr"os-s CITY COUNCIL LETTER Meetin of• Febru 8 1999 a , AGENDA SECTION: Other Business ORIGINATING DEPT.: CITY MANAGER NO: Communit Devel=enttO APPROVAL ITEM: Final Plat Approval and Easement Vacation BY: Joe Hollmair�A BY: NO: Case # 9801-02, 3701 Central Avenue DATE: January 21, 1999 Issue Statement: This is a request for final plat approval for Bobby and Steve's Autoworld The lat consist f th p so e following parcels: 3828 Central Ave. NE, 3816 Central Ave. NE, 3701 Central Ave. NE, 3817 Central Ave. NE, 3802 Reservoir Blvd., 3807 Central Ave. NE, and 3740 Reservoir Blvd. This is also a request to vacate certain easements that have since been abandoned and are no longer needed. Background: The applicants submitted a request for preliminary and final plat approval for the January 6, 1998 Planning and Zoning Commission meeting. This case was tabled until the June 2, 1998 meeting. Due to a lack of time for staff and Commission review, the request was again tabled for a special meeting to be held on June 4, 1998. They voted unanimously to recommend City Council approval of the preliminary plat, subject to final staff review and approval of the preliminary plat and drainage and grading plans. They also voted unanimously to recommend City Council approval of the final plat, subject to final staff review and approval of the final plat and drainage and grading plans, and provided that three (3) copies of the complete final plat have been furnished to the City Clerk for City files. Please note that the preliminary plat has been approved. Also, during its meeting of October 6, 1998, the Planning and Zoning Commission reviewed a request to vacate certain easements. They recommended that the City Council vacate these easements. City Council action was going to be timed so that vacation of these easements coincided with the actual abandonment of the utilities. These easements are for water main, sanitary sewer and storm drains in favor of the City of Columbia Heights as found in the Easement Agreement dated June 2, 1972 and recorded June 28, 1972 as document number 370691. Analysis: As requested in a January 14, 1999 letter (attached) from the attorney for Jeff's, Bobby and Steve's Autoworld, now is the time to vacate these easements. As a result, approval of the final plat is also being requested. One consideration that staff has had since the final plat was recommended for approval by the Planning and Zoning Commission is in regard to the park property being dedicated to the City. Currently, there are undergroundstorage tanks located beneath the surface of the area to be platted park property. If the City were to take over ownership of this property prior to removal of the tanks and remediation of any contaminated soils, the City could be responsible for proper clean-up of that property and could be liable for any future problems. As a result, staff is considering changing this from a park dedication to a perpetual easement for public purposes. In this instance, the City would not take over ownership of the property and the potential for liability would be greatly reduced. Autoworld would retain ownership of the property, but the property would be dedicated to the public via the easement. The use of the property would be consistent with what has been proposed in previous discussions. Recommendation: There is a Planning and Zoning Commission recommendation from October 6, 1998 recommending that the City Council vacate the easements. The park property issue will be discussed with the Planning and Zoning Commission at its February 2 meeting. A letter describing the recommended change has been sent to Autoworld representatives (attached). Staff s recommendation to the Planning and Zoning Commission will be to dedicate the property as "a perpetual easement for public purposes". This seems to provide the best solution for all parties involved. The City Attorney has been consulted and has stated that this is a legally acceptable approach. Recommended Motions: No motion needed for the work session. Attachments: Letter om Autoworld Attorney and letter to Jeff Bahe regarding ark dedication COUNCIL ACTION: PAUL C. SM1FIENSON RECEIVED ATTORNEY AT LAW , ! e N i S i999 REAL PROPERTY LAW SPECIALIST CERTIFIED BY THE MINNESOTA .STATE BAR ASSOCIATION '4M14l1NlTY DEVELOpMENI (612) 339-14M • FAx (612) 339-1516 January 14, 1999 Mr. Kenneth R. Anderson Community Development Director City of Columbia Heights 590 40th Avenue N.E. Columbia Heights, Minnesota 55421-3878 RE: Jeff's: Bobby & Steve's Auto World, LLP Property at Central Avenue and Reservoir Boulevard Dear Mr. Anderson: This communication to you is given on behalf of my client, Jeff's: Bobby & Steve's Auto World, LLP, the owner of the gasoline and service station located at the property address referenced above. Please consider this correspondence a request on behalf of my client to initiate the process for vacation of those certain easements which were expressly reserved in Ordinance No. 1373 (which vacated the alley through a portion of my client's property). It is my understanding that the approval for vacation of the easement reserved in the Ordinance in favor of the City of Columbia Heights requires a resolution by the City Council of Columbia Heights as well as notice to adjoining property -, }mers within 300 feet of the second property, a first and second reading, and an additional thirty day period after approval by the City Council. Mr. Anderson, it is my understanding that the new utilities for the project have now been installed and completed. If you are aware of any easement grants in favor of the City which must be formalized through quit claim deeds or otherwise, please let me know as soon as possible. I note in reviewing your previous letter to me dated August 20, 1998 that you had requested a temporary easement on and over the existing alley terminating at such time as the final plat was approved and the new alley constructed. Is this still necessary? 301 FOURTH AVENUE SOUTH • 270 GRAIN EXCHANGE NORTH • M]NNEAPOLIS, MINNESOTA 55415 Mr. Kenneth R. Anderson January 14, 1999 Page Two I look forward to hearing from you at your earliest convenience. Thank you. Very truly yours, Paul C. Steffenson ; PCS/dsc cc: James Hoeft, Esq. Mr. Robert A. Williams Mr. Jeff Bahe CITY OF COLUMBIA HEIGHTS {1� 590 40TH AVENUE N.E., COLUMBIA HEIGHTS, MN 55421-3878 (612) 782-2800 TOD 782-2806 COMMUNITY DEVELOPMENT DEPARTMENT January 27, 1999 Jeff Bahe 3701 Central Avenue Columbia Heights, MN 55421 Re: Final Plat Dear Jeff: Mayor Gary Peterson Coundlmembers Donald G. Jolly Marlaine Sm, k Julienne Wyckoff Clty Manager Walter R. Fehst As you are undoubtedly aware, the final plat for Jeffs, Bobby and Steve's Autoworld has yet to be approved by the Columbia Heights City Council. At this point in time, staff anticipates that it will be on the February 8, 1999, City Council agenda. However, before the request can be placed on the agenda, a number of changes are still needed to the final plat. These changes are as follows: 1. Signature block on the Final Plat for the City Clerk needs to read "City Clerk". 2. All signature blocks need to say 1999 rather than 1997 or 1998. 3. There needs to be language on the final plat dedicating the alley and park property for future public use (see information provided below regarding the park property dedication). 4. Lot and Block designations should read Lot 1, Block 1 and Lot 1, Block 2 rather than just the numerical designations. Please note that the final plat has been reviewed and recommended for approval by the Planning and Zoning Commission, provided that the above changes are made. One consideration that staff has had since the final plat was recommended for approval by the Planning and Zoning Commission is in regard to the park property being dedicated to the City. Currently, there are underground storage tanks located beneath the surface of the platted park property. If the City were to take over ownership of this property prior to removal of the tanks and remediation of any contaminated soils, the City would be responsible for proper clean-up of that property and would be liable for any future problems. As a result, staff is considering changing this from a park dedication to a perpetual easement for public purpose. In this instance, the City would not take over ownership of the property. The property would still be owned by Autoworld, but there would be a perpetual easement, dedicating this property for public use. At this point, we are asking you to choose one of two options. • Ootion 1 would be to change the park dedication to a perpetual easement for public purpose. Autoworld would retain ownership of the property, but the property would be dedicated to the public via the easement. The use of the property would be consistent with what has been proposed in previous discussions. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER Jeff Babe January 27, 1999 Pace 2 Option 2 is to continue processing the plat as it is currently shown and the City would take over ownership of the property. Again, the use of the property would be consistent with what has been proposed previously. If option 1 meets your satisfaction, please revise the final plat to dedicate the subject property as "a perpetual easement for public purpose". If option 2 seems more desirable and you do not want to retain ownership of this property, we can continue to process the final plat as it is currently shown (subject to necessary changes). However, should you choose to pursue option 2, the plat will not be approved by the City Council until the underground. storage tanks are removed. If you decide that option 1 meets your satisfaction, the plat can be placed on the February 8, 1999, City Council agenda, provided the necessary changes have been made. It is the general feeling of staff that option 1 provides the best solution to all parties involved. Feel free to contact me at (612) 782-2856 if you have any questions or need additional information. Sincerely, e Hollman City Planner cc: Ken Anderson Kerry Gullickson CITY COUNCIL LETTER Council Meetinu of Tnnnary ?S 1999 AGENDA SECTION: NEW BUSINESS ORIGINATING CITY DEPARTMENT: MANAGER'S NO: SPECIAL PROJECTS APPROVAL ITEM: AUTHORIZE REFURBISHING BY: JEAN KUEHN BY: 449wo-'14- COMMUNITY BULLETIN BOARD DATE: DATE: NO: The City's bulletin board on 40' Avenue is beginning to show its age and needs some attention. The readerboard underlayment is broken on one side and the covers are hazy, dirty and stained. The custodial staff is having to spend an inordinate amount of time to change the letters as the board is brittle and worn. The original sign was purchased from Lawrence Sign and they were contacted to secure costs for repairs. Options are as follows: -Furnish and install one reader board to replace broken one -TOTAL COST $1,460.00 OR -Replace both reader boards with new Texan panels and $2,500.00 -Furnish and install two solar grade lexan covers $1,595.00 TOTAL COST $4,095.00 2°1 Quote received from Universal Sign Company -they made and installed the awnings on City Hall. Refurbishing existing Readerboard sign -Fabricate and install two new lexan faces with track for changeable letters Letters not included*. -Vinyl graphics across the bottom of both faces. -Fabricate and install new clear faces in the lockable doors of sign. TOTAL COST $3,795.00 * letter replacements are $2.50 each, current letters can be used. RECOMMENDED MOTION: Move to authorize expenditure of $3,795.00 to Universal Sign Company for the replacement of the readerboard and covers of the Community Bulletin Board with funds from the Council contingency fund 101-41110-8100 COUNCIL ACTION: 144 CITY COUNCIL LETTER k. Meeting of: February 8, 1999 AGENDA SECTION: C ORIGINATING DEPT.: CITY MANAGER NO: Community Development APPROVAL ITEM: J-' BY: Mel Collova BY:/ ! NO: I(� DATE: January 22, 1999 Background: The dwelling on the property located at 4358 N.E. 3`d Street has remained in a substandard, unsightly, and hazardous condition since December 23, 1998. The Building Official has mailed notices to all entities having an interest in the property and they have not complied with the Notice and Order and have allowed the condition to remain deteriorated. The Public Works Department has terminated water service and removed the water meter. The Building Official acting on an Administrative Search Warrant has supervised the removal of the hazardous contents of the dwelling. The attached Notice and Order has been sent to all parties having an interest in the property on December 23, 1998. No formal appeal has been filed by any of the interested parties. The existing dwelling does not meet the current Building Code requirements to qualify as a 1 '/z story structure as the ceiling height of the upper story is 71 (seventy-one) inches, far below the requirement of 90 (ninety) inches re-classifying the building as a single story building, not meeting the minimum requirements of the R-3 Zoning District of 1020 square feet. Recommended Motion: Move to waive the reading of the resolution, there being ample copies available to the public. Recommended Motion: Move to Adopt resolution "-fi , Declaring the dwelling on the property located at 4358 Northeast 3Td Street as hazardous, the Structure/Building must be raised, and the lot graded for future development. COUNCIL ACTION: RESOLUTION NO. 99- RESOLUTION OF THE CITY COUNCIL FROM THE CITY OF COLUMBIA HEIGHTS REQUESTING REMOVAL OF A HAZARDOUS STRUCTURE, A DWELLING, LOCATED AT 4358 NORTHEAST THIRD STREET. WHEREAS, there is a substandard building, a dwelling, located at 4358 Northeast Third Street which has been dilapidated, unsafe since December 23, 1998, and WHEREAS, Minnesota Statute 463.15 to 463.26 authorizes municipalities to address hazardous and substandard structures and properties, and WHEREAS, the City of Columbia Heights finds this property to be hazardous based on the following code violations as contained in the Findings of Fact: FINDINGS OF FACT Dangerous Building Definitions Chapter 3 of the 1994 Uniform Code for the Abatement of Dangerous Buildings: 302(9) Whenever, for any reason, the building or structure, or any portion thereof, is manifestly unsafe for the purpose for which it is being used. 302(11) Whenever the building or structure exclusive of the foundation, shows 33 percent or more damage or deterioration of its supporting members, or 50 percent damage or deterioration of its non supporting members, enclosing or outside walls or coverings. 302(13)Whenever any building or structure has been constructed, exists, or is maintained in violation of any specific requirement or prohibition applicable to such building or structure provided by the building regulations of this jurisdiction, as specified in the Building or Housing Code, or any law or ordinance of this state or jurisdiction relating to the condition, location or structure of buildings. 302(17) Whenever any building or structure is in such a condition as to constitute a public nuisance known to the common law or in equity jurisprudence. THEREFORE, BE IT RESOLVED on the Building Official's conclusions that, the structure at 4358 Northeast Third Street, a dwelling, is substandard and seriously deteriorated, that it lacks minimum standards for habitable space per 1995 MN State Building Code and 1994 Uniform Code for the Abatement of Dangerous Buildings, and the Building Official is recommending the structure be removed, and the lot be graded for future development. Removal of Hazardous Structure Resolution 99- Page two Conclusions of Council That all relevant parties have been duly notified of this action. That the structure, a dwelling, on the property at 4358 Northeast Third Street is hazardous and in violation of many local, state and national code requirements. That the structure, a dwelling, can not be rehabilitated to bring it into compliance with local, state and national code requirements. Order of Council The structure, a dwelling, located at 4358 Northeast Third Street, Columbia Heights, Minnesota, is a hazardous building pursuant to Minn. Stat. 463.152, 463.616. 2. Pursuant to the foregoing findings and in accordance with Minnesota Statutes, the City Council hereby orders the record owner of the above -hazardous building, or his heirs, to raze the building, a former dwelling, within thirty (30) days of the date of service of this order. The site must then be restored to a safe condition with fill as necessary. The City Council further orders that personal property or fixtures that may unreasonably interfere with the razing and removal of the structures shall be removed within thirty (30) days, and if not so removed by the owner, the City of Columbia Heights may remove and sell such personal property and fixtures at public auction in accordance with law. 4. The City Council further orders that unless such corrective action is taken or an answer is served upon the City of Columbia Heights and filed in the office of the Court Administration of the District Court of Anoka County, Minnesota, within thirty (30) days from the date of the service of this order, a motion for summary enforcement of this order will be made to the District Court of Anoka County. The City Council further orders that if the City is compelled to take any correction action herein, all necessary costs expended by the City will be assessed against the real estate concerned, and collected in accordance with Minn. Stat. 463.22. 6. The mayor, the clerk, city attorney and other officers and employees of the City are authorized and directed to take such action, prepare, sign and serve such papers as are necessary to comply with this order, and to assess the cost thereof against the real estate described above for collection, along with taxes. Removal of Hazardous Structure Resolution 99- Page three Passed this Offered by: Seconded by: Roll Call: Mayor Gary L. Peterson Jo -Anne Student, Council Secretary g:,coda,conrcs NOTICE AND ORDER OF BUILDING OFFICIAL December 23, 1998 Ronald E. & Mary L. Briggs Norwest Electronic Tax Service 4358 N.E. 3rd Street 1 Home Campus Columbia Heights, MN 55421 Des Moines, IA 50328-0001 Re: 4358 N.E. 3rd Street, Columbia Heights, Minnesota. PIN # 35-30-24- 22-0126. ( see attached legal description and surveys ) To All Parties Having An Interest in This Property: The dwelling on the subject property has had approximately 250 cubic yards of debris removed after first obtaining an Administrative Search Warrant for a Code Compliance inspection. The exterior roof covering of the dwelling is in need of replacement. The interior of the building has remained in a state of unsanitary condition since approximately 1977, as evidenced by dated newspaper removed from the interior of the dwelling. Refrigerator dated samples included cream cheese dated 1985. The plumbing is in disrepair as evidenced by ceiling and wall damage in the basement bath area. The electrical system is outdated with several sub feed panels added to the original fuse panel. The heating system consists of an outdated coal fired forced air furnace converted to a fuel oil fired warm air furnace. The interior walls and floors are deteriorated on all three floors and these areas are covered with mold and rotted materials. The interior is infested with insects and rodents. The water service to the property has been turned off and the drain • Page 3 Notice and Order The structure must be razed, all required permits must be applied for within 60 days of receipt of this notice and must be completed within 90 days of permit issuance. If the timetable stated is not met, the City may proceed to cause the work to be done and charge the costs thereof against the property or its owner. Any person or entity having legal title or interest in this property has the right to appeal from this Notice and Order or of any action. by the Building Official provided the appeal is in writing as provided in this Code and filed with the Building Official within 30 days from the date of service of such Notice and Order; and failure to appeal will constitute a waiver of all right to an administrative hearing and determination of the matter. Sincerely, Mel Collova Building Official C: Property File James Hoeft City Attorney Page 2 Notice and Order and waste traps have been winterized in an attempt to lessen freeze damage to the already leaking plumbing systems in the dwelling. As stated in the 1994 Uniform Code for the Abatement of Dangerous Buildings section 302; for the purpose of this Code, any building or structure which has any or all of the conditions or defects hereinafter described shall be deemed to be a dangerous building, provided that such condition or defects exist to the extent that the life, limb, health, property or safety to the public or its acquaints are endangered: 302(9) Whenever, for any reason, the building or structure, or any portion thereof, is manifestly unsafe for the purpose for which it is being used. 302(11) Whenever the building or structure, exclusive of the foundation, shows 33 percent or more damage or deterioration of its supporting members, or 50 percent damage or deterioration of its non supporting members, enclosing or outside walls or coverings. 302 (13) Whenever any building or structure has been constructed, exists, or is maintained in violation of any specific requirement or prohibition applicable to such building or structure provided by the building regulations of this jurisdiction, as specified in the Building or Housing Code, or of any law or ordinance of this state or jurisdiction relating to the condition, location or structure of buildings. 302(17) Whenever any building or structure is in such a condition as to constitute a public nuisance known to the common law or in equity jurisprudence. CITY COUNCIL LETTER Meeting of: February 8, 1999 AGENDA SECTION: ORIGINATING DEPT.: CITY MANAGER NO: Community Development APPROVAL ITEM: 1999 CDBG Application BY: Joe Holtman BY: NO: DATE: January 2 , 1999 Issue Statement: The 1999 Community Development Block Grant (CDBG) application is due to Anoka County by February 19, 1999. Funds allocated to the City of Columbia Heights must then be expended between July 1, 1999 and December 31, 2000. Background: Last year, the 1998 application was approved for three major programs: Public Service Agencies, Commercial Revitalization Program, and Single-Family/Duplex-Family Housing Rehabilitation Program. Of the total allocation, $1,000 is retained by Anoka County for administrative purposes. This year, the total allocation to the City is $222,667. Note that the $1,000 administrative fee will be deducted from this amount. Allocations to each program in 1998 were as follows: Public Service Agencies* Funding Amount • Senior Outreach Program (ACCAP) $14,539 • Alexandra House (Shelter for Abused Women) $3,500 • Hot Meals for Shut -Ins $3,100 • Southern Anoka Community Assistance, Inc. (SACA) $5,000 • Community Emergency Assistance Program, Inc. (CEAP) $2,000 • ARC of Anoka County $2,000 Subtotal $30,139 Public Service Agencies $30,139** Commercial Revitalization Program $124,473 Housing Rehabilitation $65,437*** Total $220,049 *Funding for Public Service Agencies is limited to 15% of the total City allocation. **Note that $3,100 for Hot Meals for Shut -Ins is allocated directly to the City, the remaining $27,039 is administered by Anoka County through a multi -city contract. ***The County allocates funds for housing rehabilitation to the City. In 1998, this amount was $49,663 in addition to the City portion of $65,437 for a total of $115,100. Analysis: The Human Services Commission was asked to provide a review of the proposed uses by public service agencies for Community Development Block Grant (CDBG) funds for the 1999 application. The 1999 Public Service Agency requests are as follows: Public Service Agency • Senior Outreach Program (ACCAP) • ARC of Anoka County • Alexandra House (Shelter for Abused Women) • Children's Home Crisis Nursery • Fathers' Resource Center • Community Emergency Assistance Program, Inc. (CEAP) • Hot Meals for Shut -Ins • Southern Anoka Community Assistance, Inc. (SACA) • Handyworks Program Total Requests: Requested Amount $14,854 $2,000 $3,500 $5,000 $3,500 $2,000 $4,650 $5,000 12,750 $43,254 Page 1 Please note that the Children's Home Crisis Nursery, Fathers' Resource Center, and Handyworks Program are new applications this year. The goal of Crisis Nursery is to keep children of families experiencing major stress and crisis safe and nurtured, in other words, to prevent the occurrence of child abuse and neglect. The mission of the Fathers' Resource Center is to foster environments that empower men to develop the inner resources to be the kind of fathers their children and families need by providing resources that effectively educate, advocate and support fatherhood. The mission of the Fridley/Columbia Heights Handyworks Program is to enable people age 60 and older and adults with disabilities to live independently and safely by providing yard work, housework and minor repair. See attachment entitled "Public Service Agencies Summary" for a brief description of each agency. These proposals were forwarded to the members of the Human Services Commission for consideration at their meeting of January 13, 1999. The two Commission members that were present reviewed the proposals and submit the following recommendations to the City Council for funding the public service agencies. The City Council must hold a public hearing to approve the 1999 application for CDBG funding. This public hearing has been set for February 8, 1999. Anoka County has allocated $222,667 to Columbia Heights for the entire CDBG application. The City can allocate up to 15% of the total allocation for public service agencies. Based on the 15% limit for public service agencies, the maximum amount that can be allocated for public service agencies is $33,250. Considering that the total amount requested was $10,004 more than the maximum amount allowed, significant cuts were made. The Human Services Commission considered things such as need and previous funding when making their recommendations to the City Council as to the amount of funding each agency should receive. As mentioned above, the maximum amount for all public service agencies can not exceed 15% of the total City allocation. However, this amount can be less than 15%. The City is not required to provide any funding for public service agencies, but Columbia Heights has provided this funding in the past and these agencies have come to depend on this funding for the services they provide to City residents. 1999 PUBLIC SERVICE AGENCY FUNDING RECOMMENDATIONS 1998, 1999 1999 Approved Requested Recommended Public Service Agencv Amount Amount Funding Amount Senior Outreach Program (ACCAP) $14,539 $14,854 $14,539 ARC of Anoka County $2,000 $2,000_ $2,000 Alexandra House $3,500 $3,500 $3,500 Children's Home Crisis Nursery N/A $5,000 $1,000 Fathers' Resource Center N/A $3,500 _$1,500 CEAP $2,000 $2,000 $1,611 Hot Meals for Shut -Ins $3,100 $4,650 $3,100 SACA $5,000 $5,000 $5,000 Handyworks Program NIA $2,750 $1,000 Total: $30,139 $43,254 $33,250 (Full 15%) As mentioned earlier, the 1998 allocation was split between public service agencies, housing rehabilitation, and commercial revitalization. This year, the City Council has been asked by ISD #13 to consider providing $300,000 in CDBG funding for the school district's Family Center project. We have also budgeted $104,000 of CDBG funds for the LCDA Transition Block project. Staff is working with the school district to determine the status of their project. Attached, you will find four charts illustrating CDBG trends for Columbia Heights over the past five years. These charts show allocated amounts for each year, but they do not illustrate expenditures made. Please note that there are still outstanding funds from previous years that have not been expended. At this point in time, staff is researching the remaining Page 2 balances and expects to have this information available for your review at the upcoming February 1 work session. In summary, the City Council is being asked to consider the recommendation made by the Human Services Commission for public service agency funding, as well as funding for the housing rehabilitation program, commercial revitalization program, Family Center addition, and LCDA Transition Block project. It is expected that the City will also receive roughly $50,000 from Anoka County for the housing rehabilitation deferred loan/grant program. Considering that the county -wide rehabilitation funds will be available and that there are outstanding funds for housing rehabilitation from previous years, staff will recommend that the City not apply for additional housing rehabilitation funds this year. The remaining allocation ($188,417) can be better used for commercial revitalization as well as the LCDA project and possibly the school district project. Recommendation: Staff recommends that the public service agencies be funded as recommended by the Human Services Commission. At this point, staff is withholding a recommendation for the remaining allocation, until the amount of outstanding balances from previous years is determined. It is anticipated, that this information will be available at the February 1 work session, and staff will forward a recommendation at that. time. Recommended Motion: No motion needed for the work session meeting, but the City Council will be asked to approve submission of the 1999 CDBG application at the public hearing scheduled for February 8. Attachments: CDBG Trends, LCDA budget, Letter from School District requesting CDBG funds, and Public Service Agency Summary COUNCIL ACTION: Page 3 LO T c (A O C O LLcc d. nt C d is 4) c U'o=(an U = C) C) a 8 6 s rc2ef: iffy` N - {{tiS s W L -- ■ - •i ilk }, :{ �r � 4& 40- spussnoyl LO 0) m T L V U U) 'v 2 cz E U 0 U c _o = rn o V p !N -I.- tC o ca = w c a. 0 = U MENDE co T LL m V LO r T d a U) T 0 0 o a o 0 0 0 ti (00 LO sT M N 0 0 00 LO i T L F— rr V U CO cz E 0 U 0 �� .Q ca d c U .Q C C{i ' RLL V cr t o = C � U t U d U '> d W cc a = a cn IL 0 0 0 0 0 0 0 0 0 0 CD O O O le W in CO N N M LO 00 T co as r p C C U. m V r _c L1 Q a a� c as a � L V a Ln CD O O O O O O O et M N r p p ap r r r r r m >4 m CIO 'O a la 1 m•O C •O m y C Q•'{ N C 0 w 0, m 0 C\ m W.I.) a) a) m 0 =.0 c C c JJ 0 0 to u W-i 4)x r- o U a �+•-c O� m C •.-t •.i 4+ 0 4r.4 C--I a) ea m 'O > 4+ m 0 > M-k c- != sa > to ra m ^� Co (1) C•■t t0 C U y Oy m r t s+ --r a C) y to m a 17, O+ta U •• t " 7 v 0 C tv e0 0••-t to toy m C>, kAy14 vm C-4-+m U o-tx v CIO U 7 •..t.W - 0«.t 0 m c -.i ~•.i y 0 M34 k= >,E 0-i U O � +a•.i V% O t7%w a) d dy0v y y'^tUto--1wv -V4mv-4Cyy m a) ay m a) "q X +ay > a > C k O tQ 103a w30C cP-! CO.00u v Oro IVwa) w O w0$44) OA 03+vd4)0m 0 ^-iy 0 y o > O CO CG m 0 v v WU 0 4) Cy >~ m 3a > my my m C t0 C to In 3 m m.0 w> C 0 mC R.0r.) 0 O i4 E Lo CD G toy m fi -WM a) a) a) RS y m y U y m O '4) r,m v hmy:- t •ODr;mv C 9),.2 ^ W W 0) > C W -M to > ..i 0 Q m ^ ^ .^_ ^ = C •.i to 7 -,1 to*:) •-+ a) C E -•+ a C E 0. E •++ L rCD a) O a) a) V d a) cam: w a) 0 .v a) V .,.t v .O L•• :G U ]G C L L= ,-' r u x L- y y V 'C v v 0 O \ y Ui)y+ NC+ Z X 7 )mt la -mow J ,1 Z Z � �� � to D o o t5 CD N o0 0 0 0 ui t'+ D � L Z � � -•i \ \ ODi ' O C CD CD o 0 0 D ?_ 0 U = � � \ z z JL •rt tNt1 y m O >• U y O U, \ U E = U W k. U O Z O tT > U O Ado+ v 0 o 0 U in 0 O 00 00 O O 5 O o u, V o 0 ti N 2 O NO 0 0 N N ri N CD O O y 0 r Ln Lnn p +n a N �o 0 N � en .•t a d A n 4) +� y 34 _ 0CD O c 14 go 0 U O N w s ' A U .•i N � U7 Columbia Heights Public Schools RECEIVED NnV 2 1998 . ;011MUN17Y aEVELOPMENi Independent School District #13, 1400 49th Avenue N.E., Columbia Heights, Minnesota 55421 Telephone: (612) 586-4505, FAX: (612) 586-4508 David L. Behlow, Ph.D. Superintendent October 30,.1998 Walt Fehst City Manager City of Columbia Heights 590 40th Avenue NE Columbia Heights, MN 55421 RE: CDBG Funding for the Proposed Columbia Heights School District Family Center Dear Walt: The Columbia Heights School District is in the process of planning the construction of a Family Center that would meet the needs of our community's children and parents for early childhood services and programs. The purpose of this letter is to share the vision for the Family Center and to apply for Community Development Block Grant funds (CDBG). The vision for the Family Center. arose out of many. discussions -within the District and the Southern Anoka County Community Consortium about the need for child care and support services for families and child care providers in our community. The need for programs and services for families and young children being located in one facility has existed for a long time. Our School District has carefully studied this issue over the last few years and has identified the following concerns: • Lack of child care and waiting lists for early childhood programs in our community directly influence families placing their children in other school districts. • Inability to create visible, consistent and family -friendly programs for our parents as a result of moving early childhood and school age child care programs around our District (from building to building). • Reduction of cross -program communication and program planning because of the separation of the Early Childhood programs. • Insufficient capacity in Early Childhood programs and lack of support services for families. An Equal Opportunity Employer r °pry Walt Fehst City Manager October 30,1998 Page 2 We believe that investing our bond referendum and CDBG dollars toward an addition that would function as a Family Center would have the following benefits for our community: > Increase housing stability and School District enrollment of families with young children > Provide a visible, consistent and family -friendly school age child care program, Early Childhood Family Education program, and T.Y.K.E. child care program > Create an accessible, family -friendly, supportive, comfortable, and cost-effective multi -service center that provides opportunities for children to be successful in school and in life The initial programming plans for the Family Center include: ♦ ECFE (Early Childhood Family Education) Program ♦ Preschool Programs (Little Explorers and Little School) ♦ Adventure Club Program (School age child care) ♦ ECSE (Early Childhood Special Education) Program ♦ Way to Grow Program ♦ T.Y.K.E. (Child care program for teen parents who are pursuing their high school education) ♦ Head Start Program ♦ Learning Readiness Program ♦ Early Childhood Screening ♦ Child and Teen Check-ups (C.A.R.E. Clinic) ♦ Family Literacy Program ♦ Sibling Care The Family Center budget allocation through the District's bond referendum dollars is $1.9 million. The estimated cost of the Family Center is $2.7 million. We are pursuing a grant from the Department of Children, Families & Learning for $500,000, but we still have a need for additional funding. We have undertaken preliminary discussions with your staff about the criteria for CDBG funding and it Walt Pehst City Manager. October 30,1998 f' Page 3 appears that the Family Center facility would meet the guidelines. We believe the need for such a center is clearly justified and that the benefits to Columbia Heights and to the School District are significant. To complete our vision, we are in need of $300,000 for the Family Center facility. We hope the City will review our request favorably and seriously consider supporting us at the requested level or at whatever level is deemed appropriate. The opportunity for the City and the School District to be partners in this initiative can build a positive fixture for Columbia Heights and the School District. I would be happy to address any questions you have about the Family Center or to provide further information. Your consideration of this request is appreciated and I look forward to your response. Sincerely, David L. Behl.ow Superintendent DLB/kb bc: Ken Anderson, City of Columbia Heights Karen Schaub, Dir. of Community Education W PUBLIC SERVICE AGENCIES SUMMARY ARC OF ANOKA COUNTY Arc of Anoka and Ramsey Counties is an advocacy organization consisting of people with developmental disabilities, parents, professionals and concerned citizens of the communities they serve. Arc provides a variety of services for people in Ramsey and Anoka counties including: Family Services, Community Awareness and Planning, Toy and Adaptive Equipment Lending Library, and Leadership programs. Arc has over 750 members in Anoka County and provides direct services to an estimated 900 to 1,000 people in the County. Arc provides information and direct service to approximately 50 people from Columbia Heights. SENIOR OUTREACH PROGRAM (ANOKA COUNTY COMMUNITY ACTION PROGRAM, INC.) Funding is being requested for the Senior Outreach Program in Columbia Heights, administered through Anoka County Community Action Program, Inc. This program provides information and referral, case management, and advocacy for vulnerable, isolated seniors and disabled adults within the City of Columbia Heights. The project will serve primarily low and moderate income residents of Columbia Heights who need assistance in obtaining services so they remain in their homes. It is proposed to increase hours in Columbia Heights from 25 hours to 30 hours per week to meet the needs of the growing senior population. Approximately 375 residents would be directly served by the Senior Outreach Program. 90-95% of clients will be low to moderate income. ALEXANDRA HOUSE, INC. Funding is being requested for Alexandra House Community Services. These services range from legal advocacy for battered women and children in a courtroom as well as health care advocacy in a hospital emergency room. Funding makes it possible for battered women and families to attend support groups and learn how to establish safety plans to protect themselves in the event of another violent outburst on the part of their abuser. It is estimated that 1,050 battered women and families will be provided residential shelter services in 1999-2000 and 35 will be from Columbia Heights. Over 150 Columbia Heights battered women and families will receive community advocacy, and over 500 children and youth from Columbia Heights schools will have group and individual support and advocacy services provided to them and their families. PSA Summary Page 1 CHILDREN'S HOME CRISIS NURSERY OF ANOKA COUNTY The goal of Crisis Nursery is to keep children of families experiencing major stress and crisis sate and nurtured, in other words, to prevent the occurrence of child abuse and neglect. Service is available to all families in Anoka County with children ages 13 and younger. There is no fee for parents who use the service. They are offered the choice of either 72 hours of overnight care or up to ten days of day care. In 1997, 523 children were placed in safe shelter while their parents received service from the Crisis Nursery. The Crisis Nursery has been in operation for over seven years. Because of the Welfare to Work Program, Crisis Nursery experienced a 22% increase in service in the first three quarters of 1998 as compared to the first three quarters of 1997. Another increase is anticipated in 1999. By the end of the third quarter of 1998, 300 families with 500 children have been served through the Crisis Nursery. 20% have been Columbia Heights families, 95% of which are low or moderate income. FATHERS' RESOURCE CENTER The mission of the Fathers' Resource Center is to foster environments that empower men to develop the inner resources to be the kind of fathers their children and families need by providing resources that effectively educate, advocate and support fatherhood. The Center is a non-profit 501(c)3 family service agency that takes a moderate stance that is pro -father, but not at the expense of women. The project they provide is the Anoka County office of the Fathers' Resource Center located in Blaine. This office would support a Site Manager, parenting classes, fathers' support groups, anger management classes, and family law clinics. This would be a new service in Columbia Heights and would serve approximately 1,200 families in Anoka County. It is estimated that approximately 6-7% will be from Columbia Heights. COMMUNITY EMERGENCY ASSISTANCE PROGRAM, INC. (CEAP) CEAP provides family services to those in need. These services include food, clothing, and financial assistance. By providing these services, a crisis can usually be averted and the living situation stabilized. The goal of the agency is to promote family self-sufficiency and offer intermediary services designed to protect and enhance the interests of families with dependent children. Other goals are to prevent crises from occurring and to prevent hunger and homelessness in Anoka County. CEAP expects to provide services 160-170 times to families from Columbia Heights during calendar year 1999. Also, from l/1/98 through 10/31/98, Columbia Heights residents made 130 visits to the food shelf, and between 1/1/98 through 11/30/98, CEAP provided $3,850 in financial assistance to Columbia Heights residents. PSA Summary Page 2 HOT MEALS FOR SHUT-INS Hot Meals for Shut -Ins provides a hot nutritious noon meal to home -bound residents in Columbia Heights. These meals are delivered Monday through Friday by volunteer drivers. The goals of the program are as follows: a) clients receive a hot nutritious meal daily until they can again provide for themselves; b) clients that cannot afford the cost of the meals will be subsidized by the program; c) clients can remain in their own home, making them more self-sufficient; and, d) to provide a daily personal contact. Meals on Wheels was started in 1973 serving 12 clients per day. Today 160 clients are served daily. There are no other meals on wheels programs serving the City, and 65% of their clients are Columbia Heights residents. SOUTHERN ANOKA COMMUNITY ASSISTANCE, INC. (SAGA) SACA is a non-profit, tax exempt private social service agency managed by a Board of Directors and helped by volunteers and contributors who assist as needed. Their purpose is to alleviate some of the problems of the needy in southern Anoka County who are not eligible for other forms of assistance. SACA operates a food shelf and clothing supply, provides some furniture and makes a major distribution of food and gifts at Christmas. They encourage prompt repayment, so that their resources are not depleted. In 1998, 85,582 pounds of food were given to 1,341 families (representing 3,919 individuals). 109 families representing 328 individuals from Columbia Heights were served. This totals about 7,308 pounds of food for Columbia Heights residents. In addition to the above numbers, SACA also distributes Thanksgiving baskets and food certificates, as well as the annual Christmas distribution. HANDYWORKS PROGRAM The Fridley/Columbia Heights Handyworks Program provides household chore and maintenance services to disabled persons of all ages and those age 60 and over who live in the Fridley/Columbia Heights/Hilltop area. The goal of the program is to help disabled persons and the older adults continue to live safely and independently in their own homes. The Handyworks Program is coordinated through the Fridley Senior Program. The Handyworks Program served 357 clients with 142 (40%) from Columbia Heights. In 1998, there was a total of 2,400 hours of service with 973 hours (41 %) serving Columbia Heights. PSA Summary Page 3 r COLUMBIA HEIGHTS INC R _ l= 9N-UTI-LITY-B with a $.20 increase to er and sewer Prepared 02/01 /99 CURRENT MINIMUM BILL PROJECTED MINIMUM BILL' Residential Residential Increase Water $13.20 $14.40 Sewer 28.60 33.00 Refuse 37.41 37.41 Recycling/yard waste 9.42 9.42 Sales tax 2.43 2.43 Meter surcharge 0.00 3.00 $91.06 $99.66 7_... �/ CURRENT AVERAGE BILL PROJECTED AVERAGE BILL Residential Residential Water $32.10 $36.10 Sewer 28.60 33.00 Refuse 37.41 37.41 Recycling/yard waste 9.42 9.42 Sales tax 2.43 2.43 Meter surcharge 0.00 3.00 $109.96 $121.36 F`` �_ -- .4 Projections are based on a water rate of $1.55/ccf and a sewer rate of $1.50/ccf i Finance Department Utilities Billing Office 250 South 4th Street - Room 230 Minneapolis MN 55415.1328 City of Minneapolis Janu� City of Columbia Heights 4700 Stinson Blvd 637 38th Ave NE Minneavolis, MN 55421-3806 Dear Sir or Madam: Subject: 1999 Water Rates Effective with utility billings for water meters read from and after January 1, 1999, the meter rates for water are hereby fixed and shall be collected as follows: COLUMBIA HEIGHTS WATER STEP RATES STEP 1: The charge for the first 4,000 units is $1.9354500 per unit. Any consumption used that is less than or equal to 4,000 units is charged at $1.9354501) per unit. STEP 2: The charge for the next 21,000 units (25,000 units total) is $1.5522309 per unit plus $7741.80 (the first 4000 units @ $1.9354500 per unit). STEP 3: The charge for the next 45,000 units (70,000 units total) is $ .8612753 per unit plus $40,338.65 ($7,741.80 for the first 4,000 units @ $1.9354500 per unit plus $32,596.85 for the next 21,000 units @ $1.5522309 per unit). STEP 4: The charge for the next 60,000 units (130,000 units total) is $ .7857927 per unit plus $79,096.04 ($7,741.80 for the first 4,000 units @ $1.9354500 per unit plus $32,596.85 for the next 21,000 units @ $1.5522309 per unit plus $38,757.39 for the next 45,000 units @ $ .8612753 per unit). STEP 5 The charge for all units over 130,000 units is $ .6309567 per unit plus $126,243.60 ($7,741.80 for the first 4000 units @ $1.9354500 per unit plus $32,596.85 for the next 21,000 units @ $1.5522309 per unit plus $38,757.39 for the next 45,000 units @ $ .8612753 per unit plus $47,147.56 for the next 60,000 units). Sincerely, Al Santo Manager Utilities Billing Division RECEIVE JAN 15 1999 PUBLIC WO1-tr\S www.oi.minneapolis.mmus Affirmative Action Employer 'CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND iSTATEMBNT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS Projected Operating Account For The Year Ended December 31, 1998 Projected Operating Account For The Year Ended December 31, 1999 At Various Rate; 1998 1999 Operating Operating Account Account Current Rate Rate Change $1.30 $1.50 per 100cf per 100cf Operating revenues: Charges for sales and services: Sewer service charges $1,107,182 $1,277,517 Operating expenses: Cost of sales and services 783,137 781,176 Distribution 259,402 269,778 Administration 9,709 10,097 Depreciation 109,948 109,948 Total operating expenses 1,162,196 1,171,000 Net income from operations (55,014) 106,518 Nonoperating revenues (expenses) Interest income 11,217 12,150 Miscellaneous revenues 4,293 4,293 Miscellaneous expenses Total nonoperating revenues (expenses) 15,510 16,443 Net income before operating transfer (39,504) 122,961 Operating transfers: Operating transfers in Operating transfers (out) (112,781) (112,781) Total operating transfers 1 ,7 1 (112,781) Net income (loss) (152,285) 10,180 Credit for depreciation on contributed assets 38,935 38,935 Retained earnings - January 1 2,083,815 1,970,465 Retained earnings - December 31 $1,970,465 $2,019,580 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND +)STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS Projected Operating Account For The Year Ended December 31, 1998 With Projections at Various Rates for 1999 1998 1999 Operating Operating Account Account Current Rate Rate Change $1.35 $1.55 per 100 cf per 100 cf Operating revenues: Charges for services: Customer services $27,731 $27,731 Penalties 28,904 28,904 Charges for sales: Water sales 1,199,514 1,377,220 Meter sales 9,463 9,463 Total operating revenues 1,265,612 1,443,318 Operating expenses: Cost of sales and services 702,151 734,801 Distribution 327,200 340,288 Administration 6,846 7,120 Depreciation 71,846 65,520 Total operating expenses 1,108,042 1,147,728 Net income from operations 157,570 295,589 Nonoperating revenues (expenses): Interest income 25,718 25,718 Miscellaneous revenues 280 500 Miscellaneous expenses (200) (1,640) Total nonoperating revenues (expenses) �,7 8— 24,578 Net income before operating transfers 183,367 320,167 Operating transfers: Operating transfers in 0 0 Operating transfers (out) (112,781) 0 (112,781) Total operating transfers 12,781 (112,781) Net income 70,586 207,386 Credit for depreciation on contributed assets 26,294 26,294 Retained earnings - January 1 1,475,958 1,572,838 Retained earnings - December 31 $1,572,838 $1,806,519 CITY OF COLUMBIA HEIGHTS GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1999A Composition of Issue 1998 Zone 3 Improvements $749,000 1999 Alley Improvements 532,500 2000 Zone 4 Improvements 490,000 Total Project Costs $1,771,500 Less: Contributions from Infrastructure Fund ($431,160) State Aid (210,000) Net Project Costs $1,130,340 Plus: Costs of Issuance $25,000 Allowance for Discount Bidding 9,320 Rounding (4,660) Total Bond Amount $1,160, 000 0 w COPOr0r-MM000OoetPMODO O > Oo MMv 0MMPTCOM0MPMtoet M 4)M OettOl� 000OrCON00C0�Nrd tO 4J ++ CLV Q) cc ca L PCDPtt9iOPtDP000i00MOetPO 7 cOcOcOcOOMcOLe) MMcOONetcOLr)CC) w CLm� T T r T r T- T 3 O U a L d C CO 1-1 -04-J 0)^ PrTONPOMC00etet V M0cOT• M (� CV C EOD Cn W E U V PNPNCOrtO0�000PODOpOpMo O C U CUF- Cn co C PONQ)ONC�'UO(OPOCV' Lc tMcl CV O .N iL CO .-+ 0 1-4 O CO (7) co O -e CO CM 00 Lf) Go L a Z L y T.-T T T T T T T T.-CO +J L ¢ '- C>= 0 t0 tL CL co 0) deI-I•-• r000(7)Mco0OCl) OOP000000 et C C. >% t[) cc W0 V-N0NOPNt00 LO CLM 0+J PPPOI'00IVrr0 le rl r 0 w w w w w +j H O CO CO 0) 00 P CO tO 'it CO CM 00 T L. 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OOTNMd'L0001�-00O0TNCl) etLO E m N t0 OOOOOOOOOOOTrT-T-TT 0-rq r-1 4) 00000000000000000 r•Ir-I r-• >- rNNNNNNNNNNNNNNNN O U O U Q Vl- H O L C L i M a 0 CYCOd'LOCOhCAOOrNMtt FO- �O rq co OOOOOOOOO000TTT-Tr a CY)0000000000000000 •-14 i T r N N N N N N N N N N N N N N N 0 CD LL ' CITY OF COLUMBIA HEIGHTS GENERAL OBLIGATION UTILITY BONDS, SERIES 1999B Composition of Issue Stormwater Construction Costs: Engineering & Admin Plus: 1998 Zone 3 Utility Project 2000 Zone 4 Utility Project Water Meters Total Project Costs Less: Grants DNR Net Project Costs Plus: Costs of Issuance Allowance for Discount Bidding Rounding Total Bond Amount $318, 000* 56,000 63,600* 40,104 8,400 2,479 $488, 583 $321, 820 400,000 401,8574Ad-4'!- $1,612,260 ($150,000) (92, 000) $1,370,260 $25, 000 11,240 (1,500) 1, 405, 090 * Does not include the construction costs and engineering/admin costs associated with the 4500 Block of Washington Street, 4300 Block of Washington Street and 1307 42"d Avenue NE Projects e 4— MNtO1,-Or-M+-Mt0 N p tO COS NOMNMOMtOr00 M M 0) 0+/ 0N000f-T0 00 M 4J r O M O F- r CO r� [�- r� CO T M 00 t0 0 r L M 00 00 00 00 00 M 00 00 00 00 O 4- T T r r T r r T T T 00 de T L r tO O tO M >IV CN7nl�r OH 1••4-44j^ r`TWrrrCOtOtOtO tO Wr-r*-d• C 3 Cd tv Un to N T 00 T 00 N 0) to N N 00 M cc L O +J iZ 0) — O 00 T CO r- M 1 - CM CO CO co C) .0 LL] O -4 L. ^ -4 0) F- F- C) 4) N f.00 00 00 P r O M r. T 4- tLo c+a 00r`ti�nn000DI`ti a) •1-1 (D L. oa N Rf c0 d > C. to 0) N- r CO r r r M tO to O to to O L >> totO Nr00r00NMT-0N N to 3 to (.fn 0) oW MTr-Mr-rN M m++ tE 1-1 L L C i-J V O 0) N N 00 Cl) 00 N tO 0 et r- t0 0) y N CD 0LO�etMMNNT a) C 00 U cu as as H H to 0) Q E E ri +•1 J 1-1 M C N a to H U 0) vq 7 to t] N ^ dP dP dP dP dP dP dP dP dP dP C _) +1 H C 0)1T tootooOtowooto Cr•i (1) n) ++ Co ++ tO r- r� M M M 0 N N Q a_ Z Z L • C to U 0) 7 C tr MMMC MC eC et�d r-I O O M V CD W 'C to ri^ 0000000000 O 0) 4)rl >. M o 0m OOooOOOOOO 0 dPdP ++sa #� M O rL 0000000000 O MOtf)N cc U N Vi M O •1•+ 00 Go et h E to to ++•-i r- N V OLc) OtO0tOtO0tO0 tf) .Or -ri .c .ri 1 1 c 00 N CO CO et et tO W (0 ti O 0 a) ++ to L +1 T T T 'f•'I T- T T' r T T r T T It LO et et to rl 0) tO 0) M 4-0 1 1 1 fl. T +J = c e t N N M 0) L O tli n0-I d ttf •44-J q- ^ rNMettOtOr�00Cr) 0 ++ 0) m 1SS ++ O+rN OO(DO0O000 •• to N f/1 t7 E 0) to 0— 0000000000 :woC 0) C c =•*+fn 0) Lm N N N N N N N N N N ++ +-J O 7 r-I 1-I M L. O A r4 CD O -r-I O m M 0) 0) U) i_ US ++ L ++ r-I U O M +' L. 0 0 0 CO ca r C fd +) C fr 4J L 3 q- r•r • • H 4- A ^ M O T N CO it tO (D 1'- 00 • • 0) Cd c to 0) ++ O cis (A •• 0) O >r MOOOOOOOOO V) 0+j 0 9-0) p L+1 4)� 00000a0000 J U (-r-i m >,4) ri 0) O fo LJ rNNNNNNCIINN Q 'C 0) cc ++ C L. 4-0 ++ L.. t0 F— C CA 0) H ++ 0) rl 0) 0) HS ttf •rl 0) O O > > c L ci W" a—� to r H m Q QE- V City of Columbia Heights, Minnesota. G.O. Tax Increment Refunding Bonds Series 1999A CABS Partial Advance Refunding of Series 1990A CABS REFUNDING SUMMARY Dated 03/01/1999 Delivered 03/15/1999 SOURCES AND USES OF FUNDS ParAmount of Bonds........................................................................................................... $2,161,773.75 TOTALSOURCES................................................................................................................. $2,161,773.75 Springsted Public Finance Total Underwriter's Discount(1.500%)........................................................................... 32,426.61 Costsof Issuance.................................................................................................................. 32,500.00 Deposit to Net Cash Escrow Fund...................................................................................... 2,094,495.66 RoundingAmount............................................................................................................... 2,351.48 TOTALUSES......................................................................................................................... $2,161,773.75 FLOW OF FUNDS DETAIL NET CASH ESCROW FUND SOLUTION METHOD........................................................... Net Funded TotalCost of Investments.................................................................................................... $2,0947495.66 TOTALDRAWS.................................................................................................................... $2,724,237.58 PRESENT VALUE ANALYSIS SUMMARY (NET TO NET) Net FV Cashflow Savings @ 4.111% (Bond Yield)........................................................... 73,060.91 Contingencyor Rounding Amount.................................................................................... 2,351.48 NET PRESENT VALUE BENEFIT........................................................................................... $75,412.391---� NET PV BENEFIT / PV REFUNDED DEBT SERVICE 3.374% NET PV BENEFIT / $1,733,570 REFUNDED PRINCIPAL ................................................. 4.350% NET PV BENEFIT / $2,161,774 REFUNDING PRINCIPAL ............................................... 3.488% BOND STATISTICS AverageLife.......................................................................................................................... S.711 Years AverageCoupon.................................................................................................................. 4.8761131% NetInterest Cost(NIC)........................................................................................................ 5.0483101% BondYield for Arbitrage Purposes..................................................................................... 4.1106956% TrueInterest CostMC)...................................................................................................... 4.2885107% AllInclusive Cost(AIC)....................................................................................................... 4.4696629% File = Columbht.sf-Ser 99A CAB P- SINGLE PURPOSE 2/ 1/1999 12:55 PM Page 1 City of Columbia Heights, Minnesota G.O. Tax Increment Refunding Bonds Series 1999A CABS Partial Advance Refunding of Series 1990A CABS DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I 9/01/1999 - - 3/01/2000 - 9/01/2000 - 3/01/2001 - - 9/01/2001 - _ 3/01/2002 - 9/01/2002 - - 3/01/2003 - - 9/01/2003 - - 3/01/2004 - - 9/01/2004 - - 3/01/2005 - - 9/01/2005 - - 3/01/2006 - - 9/01/2006 666,023.20 4.000% 228,976.80 895,000.00 3/01/2007 - - _ _ 9/01/2007 631,321.50 4.100% 258,678.50 890,000.00 3/01/2008 - - 9/01/2008 606,801.05 4.150% 288,198.95 895,000.00 3/01/2009 - - _ _ 9/01/2009 257,628.00 4.250% 142,372.00 400,000.00 Total 2,161,773.75 - 918,226.25 3,080,000.00 YIELD STATISTICS BondYear Dollars................................................................................................................................ $18,831.11 AverageLife................................................................................................................................-----.... 8.711 Years AverageCoupon.................................................................................................................................. 4.8761131% NetInterest Cost(NIC)........................................................................................................................ 5.0483101% TrueInterest Cost (TIC)...................................................................................................................... 4.2885107% Bond Yield for Arbitrage Purposes..................................................................................................... 4.1106956% AllInclusive Cost(AIC)....................................................................................................................... 4.4696629% IRS FORM 8038 NetInterest Cost................................................................................................................................... 4.8979794% WeightedAverage Maturity ............................................................................................................... 8.67Z Years Springsted Public Finance File = Columbht.sf-Ser 99A CAB P- SINGLE PURPOSE 2/ 1/1999 12:55 PM Page 2 City of Columbia Heights, Minnesota G.O. Tax Increment Refunding Bonds Series 1999A CABS Partial Advance Refunding of Series 1990A CABS DEBT SERVICE COMPARISON Date Total P+I Existing DIS Net New D/S Old Net D/S Savings 9/01/1999 - - - - - 9/01/2000 - - - - - 9/01/2001 - - - - - 9/01 /2002 - 885,000.00 885,000.00 885,000.00 - 9/01/2003 - 920,000.00 920,000.00 920,000.00 - 9/01 /2004 - 920,000.00 920,000.00 920,000.00 - 9/01/2005 - 920,000.00 920,000.00 9Z0,000.00 - 9/01/2006 895,000.00 - 895,000.00 920,000.00 25,000.00 9/01 /2007 890,000.00 - 890,000.00 920,000.00 30,000.00 9/01 /2008 895,000.00 - 895,000.00 920,000.00 25,000.00 9/01/2009 400,000.00 - 400,000.00 425,000.00 25 Total 3,080,000.00 3,645,000.00 6,725,000.00 6,830,000.00 105,000.00 PRESENT VALUE ANALYSIS SUMMARY (NET TO NET) Gross PV Debt Service Savings............................................................................................................... 73,060.91 Net PV Cashflow Savings @ 4.111% (Bond Yield)............................................................................... 73,060.91 Contingency or Rounding Amount ............................................. NET PRESENT VALUE BENEFIT ..................................................... NET PV BENEFIT / $1,733,570 REFUNDED PRINCIPAL ................. NET PV BENEFIT / $2,161,774 REFUNDING PRINCIPAL ............... Springsted Public Finance .............. 2,351.48 .............. $75,412.39 4.350% 3.488% File = Columbht.sf-Ser 99A CAB P- SINGLE PURPOSE 2/ 1/1999 12:55 PM Page 3 City of Columbia Heights, Minnesota. G.O. Tax Increment Bonds Series 1990A CABS PRIOR ORIGINAL DEBT SERVICE Date Principal Coupon Interest Total P+I 9/01/1999 - - - 3/01/2000 - - - 9/01/2000 - - - - 3/01/2001 - - - - 9/01/2001 - - - - 3/01/2002 - - - - 9/01/2002 391,541.70 6.900% 493,458.30 885,000.00 3/01/2003 - - - - 9/01/2003 377,917.60 6.950% 542,082.40 920,000.00 3/01/2004 - - - - 9/01/2004 350,575.20 7.000% 569,424.80 920,000.00 3/01/2005 - - - - 9/01/2005 327,253.20 7.000% 592,746.80 920,000.00 3/01/2006 - - - - 9/01/2006 300,812.40 7.100% 619,187.60 920,000.00 3/01/2007 - - - - 9/01 /2007 280,563.20 7.100% 639,436.80 920,000.00 3/01/2008 - - - - 9/01/2008 259,375.60 7.150% 660,624.40 920,000.00 3/01/2009 - - - - 9/01/2009 111,685.75 7.150% 313,314.25 425,000.00 Total 2,399,724.65 - 4,430,275.35 6,830,000.00 YIELD STATISTICS AverageLife......................................................................................................................................... 6.419 Years Weighted Average Maturity (Par Basis)........................................................................................... 6.380 Years AverageCoupon.................................................................................................................................. 36.7691978% Springsted Public Finance File = Columbhuf-Series 1990A CB -SINGLE PURPOSE 2/ 1/1999 12:55 PM Page 4 City of Columbia Heights, Minnesota G.O. Tax Increment Bonds Series 1990A CABS DEBT SERVICE TO MATURITY AND TO CALL Date Refunded Bonds DIS To Call Principal Coupon Interest Refunded D/S 9/01/1999 - - - - - - 3/01/2000 - - - - - - 9/01/2000 - - - - - - 3/01/2001 - - - - - - 9/01/2001 - - - - - - 3/01/2002 - - - - - - 9/01/2002 - - - 6.900% - - 3/01/2003 - - - - - - 9/01/2003 - - - 6.950% - - 3/01/2004 - - - - - - 9/01/2004 - - - 7.000% - - 3/01/2005 - - - - - - 9/01 /2005 2,724,237.58 2,724,237.58 7.000°% - - 3/01/2006 - -- - - - 9/01/2006 - - 546,647.57 7.100% 373,352.43 920,000.00 3/01/2007 - - - - - - 9/01/2007 - - 509,828.63 7.100% 410,171.37 920,000.00 3/01/2008 - - - - - - 9/01/2008 - - 473,291.77 7.150% 446,708.23 920,000.00 3/01/2009 - - - - - - 9/01/2009 - - 203,801.65 7.150% 221,198.35 425,000.00 Total 2,724,237.58 2,724,237.58 1,733,569.62 - 1,451,430.38 3,185,000.00 Springsted Public Finance YIELD STATISTICS Average Life...................................................................................... 8.693 Years Weighted Average Maturity (Par Basis) ........................................ 8.654 Years Average Coupon.............................................................................. 25.7354140% File = Columbht.sf-Series 1990A CB -SINGLE PURPOSE 2/ 1/1999 12:55 PM Page 5 City of Columbia Heights, Minnesota G.O. Tax Increment Refunding Bonds Series 1999A CABS Partial Advance Refunding of Series 1990A CABS ESCROW FUND CASHFLOW Date Principal Rate Zero Coupon Reinvestment Receipts Disbursements Cash Balance 3/15/1999 - - - - 237.58 - 237.58 8/15/2004 145,000.00 - (145,237.00) (237.00) - 0.58 11/15/2004 2,579,000.00 - (2,579,000.00) - - - 0.58 9/01/2005 - - - 2,724,237.00 2,724,237.00 2,724,237.58 - Total 2,724,000.00 - (2,724,237.00) 2,724,237.00 2,724,237.58 2,724,237.58 - INVESTMENT PARAMETERS Investment Model [PV, GIC, or, Default investment yield target. Securities Bond Yield CashDeposit.......................................................................................................... 237.58 Cost of Investments Purchased with Bond Proceeds ......................................... 2,094,259.08 Total Cost of Investments..................................................................................... $2,094,495.66 Target Cost of Investments at bond yield............................................................ $2,094,436.67 Actual positive or (negative) arbitrage............................................................... (58.99) Yieldto Receipt...................................................................................................... 4.1106053% Yield for Arbitrage Purposes................................................................................ 4.1106956% Springsted File = Columbht.sf-Ser 99A CAB P- SINGLE PURPOSE Public Finance 2/ 1/1999 12:55 PM Page 6 i� City of Columbia Heights Public Works Department Work Session Discussion Item Work Session Date: February 1, 1999 Prepared by: Kevin Hansen, Public Works Director/City Engin Item: Cleaning and Sealing of Municipal Service Center M7AC Duct Work Background: The 1999 approved City budget provides $5,000 for the cleaning of the Municipal Service Center HVAC duct work under the Public Works Garage line item. The City Library had similar services recently conducted and City hall is scheduled to have their duct work cleaned February 22na Analysis /Conclusions: Public Works solicited quotes based upon site inspections from several firms engaged in the business of commercial duct cleaning. Upon a site inspection by the first duct cleaning company, it was discovered that the MSC duct work is insulated on the inside. This is also the likely source of fine, black particulate matter that accumulates on surface tops throughout the forced air portion of the building. Although placed to prevent sweating of the metal duct work, mold can form on the interior surface of the insulation. Therefore, it is recommended that all insulated ducts be cleaned and sealed. A surface coating would be sprayed to all interior insulated ducts (see attached sheet which describes the process). Based upon the sealing requirement, staff received quotes from three firms. A spreadsheet detailing their price proposals is attached. Requested Action: Approval to award MSC duct cleaning and sealing work to Building Maintenance, Inc in the amount of $3,290, plus tax, with funds appropriated from 701-49950- 4000. Attachment: Proposed Cleaning and Sealing process Spreadsheet of Proposals I. w �dn= Po ,,_ .Z ?rO��_ AA�l�e�d - v Source Removal. VSI is committed to source removal of dirt/debris' and other contaminates. VSI cleaning procedures require the use of a patented high powered HEPA filtered (99.97% efficiency .3 microns) vacuum collection system to protect the working environment while collecting the dirtldebris and other contaminates. The dirt and debris is removed from all the surfaces by power brushing and then a final air washing insures quality workmanship and customer satisfaction. Dealing With Mechanical Insulation: In many cases the mechanical insulation found inside the ductwork is damaged or deteriorated. In the past the building owner would replace this ductwork. Today, in many cases this insulation can be repaired and enhanced by applying Tough -Coat mechanical insulation repair coating. This option can represent a tremendous savings for the building owner. Tough -Coat is Formulate w'r �n anti -microbial to help prevent the regrowth of microbial contamination. Air Handling Units, Plenums, Etc.: In areas w moisture r high wear are a problem, IMCOA is ong term solution. I is a closed cell polyole yethylene) foam insulation that offers uni erma cal and chemical resistant properties. It is glued a . place with all seams being sealed. IMCOA FPA 90A & d has similar thermal capab' ' t er glass insulation with excellen ture resistance igh durability. ial Contamination: VSI has several ways to cgogoo micro bt tamination. This includes source remova ontami- nates, sanitizin twork with an EPA re i sanitizer and cleaninglthen coating In addition VSI is a ce Shield Program which it ' ation with Tough -Coat. cator for the AEGIS Microbe e EPA registered antimi- crobial which ' epted for use on all inRftwnonfood contact surface has the experience and the tools to pr help you microbial contamination problems. PUBLIC WORKS MUNICIPAL BUILDING OFFICE AND MEZZANINE AREAS HVAC SYSTEM CLEANING PROPOSALS COMPANY VAC SYSTEM INDUSTRIES NATIONAL SURFACE CLEANING B & M BUILDING MAINTENANCE CLEANING COATING TOTAL (4) (1) (2) $2,240.00 $1,625.00 $3,865.00 (1) (3) $2,200.00 $1,190.00 $3,390.00 (1) (2) $1,705.46 $1,581.00 $3,286.86 (1) SUPPLY AND RETURN DUCT. (2) COAT SUPPLY DUCT WITH "TOUGH COAT" MECHANICAL INSULATION REPAIR COATING. (3) COAT SUPPLY DUCT WITH "FOSTERS" 40-20 FUNGICIDAL COATING. (4) ADD APPLICABLE SALES TAX TO TOTAL ENGINEERING DEPARTMENT ® CITY of COLUMBIA HEIGHTS JANUARY 1999 DAVID J. HAUSWIRTH 537-3M.DWG City of Columbia Heights Public Works Department Work Session Discussion Item Work Session Date: February 1, 1999 Prepared by: Kevin Hansen, Public Works Director/City Engine Item: 1999 Storm Water Issues Background: Work on various elements of the City-wide storm water improvement program is continuing and three items are presented herein for discussion and direction. A. Receive Engineering Report for 4300 block of Monroe B. 1999 DNR Funding C. Proposed Work Program Analysis /Conclusions: A. Receive Engineering Report for 4300 block of Monroe The City Council authorized the addition of this study area at the July 8' work session where all other engineering reports were presented and discussed. The report details that flooding has occurred in the 4300 block alley between Monroe and Madison Streets in the 1997 storms and again in spring and summer events in 1998. Based upon rainfall events in 1998, a damage claim was filed by a duplex at 4326/4332. Our records show flooding in this location has occurred on several occasions. The analysis and recommendations by BRA follow the same process as in previous studies. Three alternatives were evaluated: Trunk storm sewer to Jackson Pond; Property acquisition of the duplex and creation of a small pond; and Trunk storm sewer in Madison St. Based upon cost and disruption to local residents, BRA recommends new storm sewer under Madison St. This area is in Zone 6 of the City's street rehab program currently scheduled for the year 2002. B. 1999 DNR Funding The City was awarded $92,000 in 1998 by the DNR under the Flood Mitigation Grant Program. The $92,000 represented the last of the funds available under this program in 1998. At that time, the DNR indicated the remaining City grant applications would be eligible and receive priority in the next grant program cycle. Work Session 2-1-99 199 Storm Water Issues Page 2 With the beginning of the new year, I contacted the Administrator of the Flood Mitigation Grants Program to check on the status of the other City applications and what the timing of review of awards would be. He informed me that the DNR is not taking a bonding package to the Legislature until October. Since a condition of these grants is that no work can begin prior to a contract being executed, this will impact other storm water projects contemplated for 1999 construction. The only other source of funding at this time would be for the City to bond for the other storm water improvements. C. 1999 Work Program To clarify what areas have had engineering studies performed and what areas we are addressing internally, please reference the attached spreadsheets. Prestemon Park, Tyler Place and 44d' Avenue have been awarded matching grants from the DNR in 1998. I am recommending to include the following in a 1999 Storm Water Improvement Program: • Jackson Pond Spillway Construction • Monroe St. and 49 '/Z Ave. catch basin • 4201 2nd St. Localized Improvements • 4232 3' St. Localized Improvements If constructed in 1999, these four areas would not be eligible for DNR grant reimbursement, but are comparatively small in cost. The issue then becomes whether to proceed on any of the three property acquisitions identified in the Jackson Pond area Engineering Report. The work, including property purchase, relocation and site grading will exceed $100,000 for each. At least one of the homeowners has indicated a strong desire to work with. the City based upon the Engineering Study recommendation of property acquisition. Requested Action: A. Accept the Engineering Study report for the 4300 block oi'Monroe and authorize submittal of an application. B. Informational purposes only. C. Provide direction on proposed 1999 Storm Water Improvements Work Program. Attachment: Spreadsheets 2 CO) U co 0 Z LL U H z Q' z 0 0 2 Cl) p 0 w 0 w 0 CD w Q cn w w 0w w2: �z Uui t � Q Z 0 4 U 0 0 1 MLU - 0 0 LO 0 O 0 0 N 0 0 C 0 0 0 0 0 N U) r, P- ti � � r r tNf) t! O M di fA 61:.�C) O to all O to N O^ O ^� O ^� O -� 1\ 2 ; 2 O O O ti 00 ti O (fl r w It I\ w N +. N+ (d wLO I� N to co � EA ER 0 n o L o o cV) o Q OO z in r LO O En r Q:L 61k � CY) C4 f J c c c c c CD rn M rn CDM CM r r r C- C. m 0 F- C C C C Z G. CO 0 6 O CT O CT O O CCL � C0 N fV N N N 'v a� -i a tm c c c cc o oc o E o o N roi a CL coo > c 2 m .. {3 � U ca c «s c ca c o a) c Q o C C o L O E O O C L E C 00 N> N :atf c .Q� n 2Cl) O o g o 3 S E E <t Q Q a3i aoi CL 42=11 w' CD a Q. o Cl)c ;; U o 4:�� ai CL CL o c c O O O cn 2 no cu a a H w w zoCw z � -0 LLJ CCV-4 CO CO) oa �ac 0 oC o E d>C� (CD 0) Yo o r C O m a rnv 0 >� Cl U M M cS r N co m to Cti co ti � k U m k k CD CD 7 7 � 2 ~ m _ Q w ƒ o 2 @ k C%j / O c 0 k k CD CD c « /k S 2 q 2 2 m � w « 2 k V) CD 0 � uo O m � o c � m = 0 m 2a CV)k0) c / C ¢ CL k k E Co E ~ 2 � co U) QCT §§ L w Q ca E § f 2 k k 2 / E § k 2 0 % 2 a C O 2 > Co e ■ 2 � ca @ ■ © ° e 0. f 2 f ) 2 / % § R � ■ % . e � Q 2 2 § 2 $ § k k / m 2 f Iw- o U [ 2 e k E ° ¢ CO L ) 2 12 ° ■ a k_ k_ k k ( 2 _ n @ k 2 CO� @ p� & CV 2 o am $ _� R co� k _ R m C ca $ 2 - N n # LO m r- co 077 CO m m � k o k C*4mC%j m m k k k � ow2 / C4 O C4 w 71 2 A 0. � CL k B k § LL Done'stroo ® Rosene Anderlik & Associates Engineers & Architects Bonestroo, Rosene, Anderlik and Assoclates, Inc. is an Affirmative Action/Equal Opportunity Employer Principals: Otto G. Bonestroo, P.E. • Joseph C. Anderlik, P.E. - Marvin L. Sorvala, P.E. • _ Richard E. Turner, P.E. • Glenn R. Cook, P.E. - Robert G. Schunicht, P.E. - Jerry A. Bourdon, P.E. Robert W. Rosene. A.E. and Susan M. Eberlin. C.P.A.. Senior Consultants Associate Principals; Howard A. Sanford, RE. - Keith A. Gordon, P.E. - Robert R. Pfefferle, P.E. Richard W. Foster, P.E. • David O. Loskota, RE. - Robert C. Russek, A.I.A. - Mark A. Hanson, P.E. - Michael T. Rautmann, P.E. • Ted K.Field, RE. • Kenneth R Anderson, P.E. • Mark R. Rolfs, P.E. - Sidney R Williamson, RE., LS. • Robert F. Kotsmith • Agnes M. Ring - Michael P. Rau, P.E. Allan Rick Schmidt, P.E. Offices: St. Paul, Rochester, Willmar and St Cloud, MN - Milwaukee, WI Website: www.bonestroo_com DRAFT FEASIBILITY STUDY FOR STORMWATER IMPROVEMENTS 4300 BLOCK OF MONROE STREET NE COLUMBIA HEIGHTS, MINNESOTA BRAA FILE NO. 332-98-801 SEPTEMBER 15,1998 This report presents the results of our stormwater improvements feasibility study for the 4300 block of Monroe Street NE. Flooding in the spring and early summer of 1998 prompted the City to ask for the preparation of this report. Previously, Bonestroo prepared reports on elements of the Jackson Pond system in the vicinity of this block. That analysis did not specifically address the flooding around the 4300 block of Monroe Street NE, since resident surveys (which determined the priority areas for analysis) had not been received from this particular area. The previous analysis for the Jackson Pond system was completed in the spring of 1998. This report begins with an introduction to the problem area, followed in sequence by the following sections: Analysis and Results, Alternatives, Cost Estimates, and the Recommended Alternative. A location -map and report figures are at the end of the report. Please note that elevations are in the city of Minneapolis datum, followed in parenthesis by the USGS datum. The USGS datum is obtained from the Minneapolis datum by adding 710.3 feet. 1. INTRODUCTION As stated above, flooding occurred in the 4300 block alley between Monroe and Madison Streets NE during the spring and early summer of 1998. Recently obtained anecdotal evidence suggests that flooding also occurred here during the July storms of 1997. All these rainfalls were characterized by short intense periods of precipitation. For the purposes of this engineering report, we analyzed the storm sewer system under the conditions of the July 1, 1997 storm and the 100-year, 24-hour storm of 6 inches. In this manner, modeled system performance in the vicinity of the 4300 block of Monroe Street NE can be compared directly to the results obtained earlier for the Jackson Pond system. Model calibration with the July 1, 1997 storm against the spring 1998 water levels is justified because anecdotal evidence suggests that water levels in 1998 were reasonably close to those of July 1, 1997. 2335 West Highway 36 ■ St. Paul, MN 55113 ■ 612-636-4600 ■ Fax: 612-636-1311 Anecdotal evidence suggests that one or more storms in the spring and early summer of 1998 caused flooding in the alley between Monroe and Madison Streets NE and 43rd and 44th Avenues NE (see Figure 1). Water staining indicates that water rose up to 8 inches above the garage slab at 4326 and 4332 Monroe. Note that the addresses 4326 and 4332 Monroe Street NE belong to one structure, a single story double bungalow, and that one garage is shared by both addresses. The residents at 4326 and 4332 Monroe reported water encroaching but not up to their foundation for the storms of 1998. Based on our topographic survey of the area, this would suggest a HWL of approximately 184.0' (894.3'), which would be approximately 1.2' to 1.3' above the alley catch -basins (see Figure 2). Other adjacent structures were also inundated, including the garages at 4325 and 4331 Madison Street NE. Our discussions with City staff indicate that flooding is a chronic problem here, and occurred during the heavy rainfalls of July, 1997 as well as the spring and early summer of 1998. 2. ANALYSIS AND RESULTS As stated previously, we analyzed the pipe network upstream and downstream of the flood prone area (see Figure 2). Much of this analysis occurred as part of the Jackson Pond Feasibility Study, completed in the spring of 1998. Runoff from approximately 37 acres of residential land use converges at the catch- basin/manholes within the Monroe/Madison alley. The majority of this runoff is piped from the west, while a portion consists of direct runoff from areas adjacent to the alley. We delineated these inputs and entered them into our computer model. Additionally, through a topographic survey of the area, we identified ponding areas as well as overflow routes to and from the catch -basins within the alley between Monroe and Madison Streets NE. Piped or overland runoff that collects within the alley catch -basins either travels east to Jackson Pond through a 24-inch RCP or travels north to the 60-inch trunk through another 24-inch RCP. Within one of the alley manholes a baffle plate has been installed. This plate attempts to direct the majority of flow to Jackson Pond rather than directly into the 60-inch trunk. The tipping bucket rain gauge at the public works facility indicated that the July 1, 1997 storm dropped over 3.64 inches of rain in 3.5 hours - 2.9 inches in the storm's first hour. Our model, developed with the XP-SWMM32 software, simulated the July 1, 1997 storm and supports the anecdotal evidence (obtained subsequent to the 1998 storms) that intense rainfalls typically flood this area. The topographic survey of this area indicates a HWL for the storms of 1998 at approximately 184.0' (894.3'). The July 1, 1997 storm produces a simulated HWL of 184.1' (894.4'), which compares favorably with the anecdotal evidence from 1998. Our model indicates that pipe surcharge (the buildup of stormwater in the pipe network such that additional stormwater is held back) accounts for the water levels seen in this area, and that local overland flow contributes little to this flooding problem. In particular, when the 60-inch trunk reaches full capacity, runoff tends to back up into the alley between Monroe and Madison Streets NE. 3. ALTERNATIVES Various alternatives to address the flooding problem were considered. Our analysis showed that storm sewer construction to increase system capacity from this alley to Jackson Pond lowers the calculated July, 1997 HWL from 184.1' (894.4') to 182.1' (892.4') and the calculated 100-year HWL from 184.3' (894.6') to 182.1' (892.4'). New storm sewer would include 42-inch diameter RCP from the alley all the way to Jackson Pond and would replace the existing 24-inch and 27-inch pipe. Storm sewer pipe sizes smaller than 42-inch, but larger than existing diameters, do not significantly reduce the simulated HWL for the alley ponding area. These pipe sizes do reduce the time at the simulated HWL, but the goal for the area is to reduce the HWL itself and thus protect adjacent structures. The proposed pipe alignment involves construction between existing homes. Driveways, garages, trees, fences, and landscape features make this a politically sensitive alternative and create a large restoration cost. Our model indicates that replacing the 24-inch diameter storm sewer north to the 60- inch trunk with larger diameter storm sewer simply increases the amount of backflow into the storm sewer under the alley and thus exacerbates rather than relieves the problem. The second alternative involves stormwater pond construction. Specifically, removal of the double bungalow at 4326 and 4332 Monroe Street NE and creation of a storm pond on the abandoned lot would lower the calculated July HWL from 184.1' (894.4') to 183.3' (893.6') and the calculated 100-year HWL from 184.3' (894.6') to 183.3' (893.6'). This alternative does not reduce the HWL to the extent that the 42-inch pipe alternative does, but does hold the 100-year HWL below the lowest elevations of the structures remaining after the removal of the double bungalow and its garage. This alternative does not require a trunk size storm sewer. The third alternative involves construction of new 24-inch storm sewer under Madison Street NE from the 4300 block catch basins to the 60-inch trunk. The existing storm sewer from these catch basins to the alley would be abandoned as would the 24-inch storm sewer from the alley catch basins to the 60-inch trunk. Our analysis shows that redirecting runoff from the Madison Street NE catch basins north to the 60-inch trunk affects the alley by reducing the July 1, 1997 calculated HWL from 184.1' (894.4') to 182.V (892.4') and the calculated 100-year HWL from 184.3' (894.6') to 182.4' (892.7') Under this scenario, the calculated 100-year HWL at the Madison Street NE catch basins rises from 186.2' (896.5') to 186.3' (896.6'), which is approximately 0.3' above the catch basin rim elevations or approximately level with the top of curb. These three alternatives are addressed in more detail below. 3 It 3.1.Alternative 1: Trunk Storm Sewer to Jackson Pond Figure 3 shows a potential alignment for storm sewer installation from the 4300 block alley between Madison and Monroe Streets NE to Jackson Pond. As mentioned previously this alignment coincides with that for the existing 24 and 27- inch storm sewer line. The storm sewer alternative includes an estimated 560 feet of 42-inch reinforced concrete pipe (RCP), several manholes, easement acquisition, some street reconstruction, and significant restoration. Additionally, there are substantial logistical problems in cutting along lot lines directly east to Jackson Pond. In particular, the garage and driveway at 4333 Monroe Street NE lie directly in the path of the proposed alignment and would need to be removed and then rebuilt. Table 1 summarizes the benefits of this alternative in relation to the 100-year, 24 hour, and July 1, 1997 storms. Table 1 Storm Summary: Alternative 1, Trunk Storm Sewer to Jackson Pond Storm Rainfall HWL —Alley Low House Free - board in(City datum(City datum ft Before Improvements July 1 3.64 184.1' 183.9' -0.2 100-year 6.0 184.3' -0.4 After Improvements July 1 3.64 182.1' 1.8 100-year 6.0 182.1' 1.8 3.2.Alternative 2: Ponding Alternative This alternative involves purchase and removal of the double bungalow at 4326 and 4332 Monroe Street NE and calls for excavation of the vacated lot to provide temporal storm water storage. We calculate that approximately 0.65 acre-feet (1050 yd) of material should be removed. The constructed pond should have a bottom at approximately 179.0' (889.3'), which would also be the invert elevation of the 18-inch RCP pond outlet. We propose that this pond discharge into the existing catch -basin on Monroe Street NE. The proposed 0.65 acre-feet of flood storage would occur between the pond bottom and the calculated pond 100-year HWL of 183.3' (893.6'). A The existing alley catch -basins would be left in place. To eliminate backflow into the alley from the 60-inch trunk, the storm sewer that makes this connection would be retrofitted with an aluminum flap gate. In this manner flow from the alley will have a secondary outlet into the 60-inch trunk once surcharge in the trunk subsides. Additionally, pond grading would include an overflow from these catch -basins to the proposed pond at an elevation of approximately 182.9' (893.2'). Table 2 summarizes the benefits of this alternative in relation to the 100-year, 24 hour, and July 1, 1997 storms. It should be noted that low garages in the area are at approximately 183.6' (893.9'). The freeboard noted in the table below is to the lowest home at 4338 Monroe Street NE (4326 and 4332 having been removed). Also note that the calculated HWL at the alley catch -basins is from 0.1' to 0.2' higher than that for the pond. The HWLs given in the tables are those at the alley catch - basins. This HWL depends in large part on how the overflow is constructed. We recommend a 35 foot uniformly graded overflow leading to a short, broad swale into the proposed pond. Table 2 Storm Summary: Alternative 2, Ponding Alternative Storm HWL Low House Freeboard (City datum(City datum ft Before Improvements July 1 184.1' 183.9'(1) -0.2 100-year 184.3' -0.4 After Improvements July 1 183.4' 0.5 100-year 183.3' 0.6 (1) 4336 Monroe Street NE 3.3. Alternative 3: Trunk Storm Sewer under Madison Street NE Figure 4 shows an alignment for storm sewer installation under Madison Street NE. This proposed alignment includes an estimated 285 feet of 24-inch RCP, one 8-foot manhole installed over the 60-inch trunk, two additional catch -basins at the Madison Street NE low point, and street reconstruction from the low point to the Madison and 44th Avenue NE intersection. in addition two storm lines would be sealed and an additional catch -basin would be installed within the alley between Madison and Monroe Streets NE. The additional alley catch -basin insures adequate inlet capacity to the 24-inch pipe that runs east to Jackson Pond. Sealing the line that runs north from the alley insures that backflow from the 60-inch trunk cannot pond at the alley low point. Table 3 summarizes the benefits of this alternative for the 100-year, 24-hour storm and the July 1, 1997 storm. a. Table 3 Storm Summary: Alternative 3, Trunk Storm Sewer under Madison Street NE Storm HWL Low House Freeboard (City datum(City datum ft Before Improvements July 1 184.1' 183.9' -0.2 100-year 184.3' -0.4 After Improvements July 1 182.1' 1.8 100-year 182.4' 1.5 4. COST ESTIMATES Table 4 presents the cost estimate for Alternative 1 as described above and shown on Figure 3. Table 4 Estimated Cost: Alternative 1, Trunk Storm Sewer to Jackson Pond Item Unit Quantity Unit Cost Price Mobilization LS 1 $6,000 $6,000 42-inch RCP LF 560 75 42,000 42-inch FES EA 1 2,000 2,000 12-inch RCP LF 35 22 770 8-foot manholes EA 7 4,000 28,000 2' x 3' catch -basin EA 3 1,000 3,000 Rip rap CY 30 40 1,200 Clearing and grubbing LS 1 5,000 5,000 Sod SY 800 3.00 2,400 Trees EA 5 200 1,000 Restoration LS 1 25,000 25,000 Temporary easement acquisition AC 0.6 20,000 12,000 Pavement restoration LS 1 5,000 5,000 Traffic control LS 1 5,000 5,000 Estimated Construction Cost $138,370 5% Contingencies 6,919 $145,289 20% Design, Inspection, Admin. 29,058 $174,347 5% Capitalized Interest 8,717 TOTAL ESTIMATED COST $183,064 N. 4. Tables 5 presents a cost estimate for Alternative 2, the ponding alternative, as described above and shown on figure 3. Table 5 Estimated Cost: Alternative 2, Ponding Alternative Item Unit Quantity Unit Price Cost Purchase and removal 4326/4332 Monroe Street NE LS 1 $90,000 $90,000 Relocation benefits LS 1 20,000 20,000 Excavation and embankment, off -site disposal CY 1050 10 10,500 Remove existing manhole, replace with LS 1 sump manhole, install aluminum flap gate 10,000 10,000 18-inch RCP LF 60 30 1,800 Outlet skimmer structure LS 1 1,000 1,000 Rip rap CY 5 40 200 Seeding and mulching pond areas AC 0.4 4,000 1,600 Landscape plantings and features LS 1 3,400 3,400 Estimated Cost $138,500 5% Contingencies 6,925 $145,425 Design, Inspection, Admin. 8,000 $153,425 5% Capitalized Interest 7,671 TOTAL ESTIMATED COST $161,096 Table 6 presents a cost estimate for Alternative 3, storm sewer under Madison Street NE, as described above and shown on figure 4. 7 Table 5 Estimated Cost: Trunk Storm Sewer under Madison Street NE Item Unit Quantity Unit Price Cost Mobilization LS 1 $5,000 $5,000 Remove concrete curb and gutter LF 600 1.00 600 B618 curb and gutter LF 600 6.00 3,600 Full depth pavement reclamation SY 1,300 0.75 975 Common Excavation, street, off -site disposal CY 1000 7.00 7,000 Subgrade preparation SY 1,500 0.65 975 Select granular borrow TN 1000 5.00 5,000 Aggregate base, class V, in place TN 700 6.50 4,550 Bituminous base type 31 B TN 120 30 3,600 Bituminous wear type 41 B TN 120 32 3,840 12-inch RCP LF 70 22 1,540 24-inch RCP LF 285 55 15,675 Brick existing storm sewer LS 1 500 500 8' manhole, cut into 60-inch trunk EA 1 10,000 10,000 4' Diameter CB/MH EA 2 1,500 3,000 2' x 3' catch basin EA 2 1,200 2,400 Traffic control LS 1 2,000 2,000 Estimated Construction Cost $70,255 5% Contingencies 3,513 $73,768 20% Design, Inspection, Admin. 14,754 $88,522 5% Capitalized Interest 4,426 TOTAL ESTIMATED COST $92,948 5. RECOMMENDED ALTERNATIVE Based on cost, logistics, and benefit, we recommend Alternative 3. Both the disruption to local residents and the cost are greatest under Alternative 1. Alternative 2 provides less benefit at a greater cost than Alternative 3. In addition to being lowest in cost, Alternative 3 proposes work within City right-of-way; this work can be timed with regularly scheduled street reconstruction to increase cost savings. 0 V€' . ..A. H IMMI-misalm. i ---5" ' ll . ImLm allm.-1 To: w2:' :.V DVIIWULF VIW losene knderlik 6 &Rannilittan -J 44th AVE. 60" 333' — 60"11 — - LO 14 � 236' — 30" 418' — 60" APdRO IMATE EXTENT OF AND CALU TED JULY 1st HWL 100 YEXR HWL 4332 4331 - - — — -- — 152' — 24 4326 152' — 21 " 1-5 — ., 4 ° — - 152'--27" 152' — 27" 1 4325 _ ; • va 27'-24" - 27'-24" Lj- Of w of w Lw ; Cn C~i) N Z w0 U Z O Cn — Cy- Z Z_ Z) I U Q - - - -- C1 Lv - - - ---- - I LL. W �0 1 —60'$ 3 '-50" _. 240' — 54" 0 5 Scale } 100 i feet 43rd AVE. EXISTING SYSTEMf Bonestroo Rosen o Anderlik + CITY OF COLUMBIA HEIGHTS FIGURE 2 Associates 4300 BLOCK OF MONROE STREET NE Erabsem+ ArcWt°`ft \332\332801 \332801 W04.DWG 9-15-98 E EX _E R w z 0 0 Q -XISTI R w z 0 V) of w w 44th AVE. aa,a AVE. ALTE ALTE EXIT STO Scale in feet ALTERNATIVES 1 AND 2 Bonestroo Rosene CITY OF COLUMBIA HEIGHTS FIGURE 3 AAsssocisoci kates s 4300 BLOCK OF MONROE STREET NE Engineers a Architect. \332\332801 \332801 W05.DWG 9-15-98 594' - 60" CONSTRUCT-/ NEW MANHOLE 12" RCP 2' - 21" C) CY) N - 9' w cr Z O N N w --- w I w w N N i 3' - 44th AVE. 3360" ti -- N 00 I N N r- '00 ABANDON N LXISTING WIPE 152' - 24" I 12" RCP - 1 w of Cn Z O (n — a fI .3,a AVE. 418' - 60" CONSTRUCT ,I - NEW CB\M 155' - 24" - 1-52, 27'-24" — w w O O r7 I 236' --30" 152' - 27" 27'-24" w U Z Z) - -- Or 1 '-60" I 32'-50" 2 0' - ABANDONED 24" STORMSEWER' •:a - PROPOSED STORMSEWER 24" EXISTING 27" STORMSEWERi i I 0 56 100 Scale in feet 1 ALTERNATIVE 3 Bonestroo ® Rosene Anderlik & CITY OF COLUMBIA HEIGHTS FIGURE 4 Associates 4300 BLOCK OF MONROE STREET NE Engineers & Architect. \332\332801 \332801 W03.DWG 9-15-98 t FOR DISCUSSION CITY COUNCIL LETTER Work Session of February 1, 1999 AGENDA SECTION: ORIGINATING DEPT.: CITY MANAGER NO: CommunityDevelo me APPROVAL ITEM: Contract Inspections BY: Mel C01oEA lam? BY: ISATE: January 25, 1999 Issue Statement: Staff in this Department is continuously striving to becoming more user friendly. Bringing the electrical inspections back to a Electrical Inspector, on a contract basis with the City, would afford one stop shopping for permits. Background Staff researched the fees and number of permits with other cities such as Fridley, Roseville, New Brighton, etc. With approximately 900 electrical permits issued in the City this year, the 1998 estimated loss of revenue is $13,500 in administrative fees (at $15 per permit) and $5,400 in percentage of permit fees. This is an approximate total of $18,900 in lost revenues. The Council is reminded, in the early1990's construction permit valuation was an average of four million dollars, this department enjoyed considerably more help. With last year's valuation of just under seventeen million, it is not likely the current staff is physically able to maintain the standards our customers now enjoy. If this Department is to accept the additional duties of issuing electrical permits, Hilltop Building Permits, assisting Hilltop with a Building Maintenance Code, and Rental Licensing Code, additional personnel will be needed on at least a part-time basis, it make take some doing to find a place within the Department for this person. At this time, the governing body of Hilltop is anxious to adopt similar zoning and licensing ordinances. Note, the City of Hilltop does not license heating contractors, therefore, they do not get mechanical permits. They are willing to adopt our licensing requirements and be more in line with Minnesota requirements for permits. The additional revenues to this Department could exceed another $6,000 in rental inspection fees based on the number of rental units in Hilltop. Bringing the estimated total revenue up to $24,900 in additional yearly revenues This amount does not include permit fee revenues since Hilltop has virtually no enforcement and any amount of permit fees would be speculation at this time. To accomplish all these additional tasks and to gain the increase in revenues to the City, additional staff will be required. A part-time clerical position would have to be created and filled. Although I have no doubt in this proposal, a temporary position could be created and a six month trial period would be sufficient to provide enough information to evaluate this proposal. A decision on this proposal must be completed and additional staff must be added prior to the opening of the spring construction season. This will allow for ample training of personnel prior to the spring construction season. Any delays would hinder the efficient use of this person. Training would take longer after the start of the spring construction season. It is anticipated there will be a repeat of last years heavy spring work load. Kathy, Patty, and the additional person would have to be cross trained to operate the department efficiently. Kathy and Patty would have to accept additional duties and re-evaluation of their respective job descriptions and possibly compensation could be necessary to achieve the goals intended. The existing staff would not be able to cover the additional work load incurred by this proposal. Permit numbers would more than double the present numbers. The anticipated total amount of permits should Page Two exceed 2,000 permits. This estimate includes 1,300 current permits and the anticipated additional 900 electrical permits. Again, this does not include Hilltop permits. I cannot even speculate just what the numbers would be due to the lack of current enforcement. The current time spent on Building Department activities would increase approximately 20% for field inspection and plan review; 20% for property maintenance, and another 10% for rental inspections. I must stress this is an opportunity for the City of Columbia Heights to participate in improving the look of Hilltop. This is also a financial opportunity to increase revenues with minimal expenditures. With increased revenues of approximately $24,900 per year, the additional staff person would raise expenditures another $12,001 (salary )and $4,800 in benefits, net additional revenues would be approximately $8099 per year. A more than adequate amount to cdver any unforeseen expenses. You are also reminded that permit valuation has greatly exceeded past years placing an added burden on the existing staff. If construction in 1999 continues at the current pace, current staff will need at least temporary staffing assistance in order to maintain the standards currently enjoyed by residents, contractors and other construction professionals, and business owners. With the threat of further cuts from higher government, why not look to these areas of additional revenues? Alternative 1 Allow the present duties of the Building Inspection Department to remain as they are. Alternative 2• Look to this proposal to generate additional revenues for the City and additional duties to be assumed by present staff with the addition of one contract electrical inspector and one part-time clerical staff person to assume a portion of the new duties implicated. Recommended Motion: If the Mayor and Council agree to pursue this proposal, one or more appropriate motions would be written. COUNCIL ACTION: CITY COUNCIL LETTER Council Meeting of: February 22, 1999 AGENDA SECTION: OTHER ORDINANCES ORIGINATING DEPT.: CITY MANAGER NO: /RESOLUTIONS FINANCE APPROVAL ITEM: BOND SALE n BY: WILLIAM ELRITE BY: NO: " f "1q '' DATE: 1/28/99 DATE: The subject of a debt service bond sale has previously been discussed with the Council. The construction projects that were completed in 1998 were funded through internal loans and should have long-term financing through the use of bond proceeds. It is staff s recommendation to sell bonds to cover the 1998, 1999, and 2000 construction projects, and to refund the TIF bond issue as it can be refunded at a lower interest rate resulting in savings to the TIF fund. Dan Hartman from Springsted attended the February 1'` work session with handouts and additional information on the various bond issues and the refunding. Attached is a summary schedule from Springsted showing the two proposed bond issues. The first issue is for assessment bonds that will fund our PIR special assessment fund and will be repaid from special assessments. The second issue is for utility bonds and will be repaid from the sewer/water utility funds. Mr. Hartman will be available at the Council meeting to answer any questions on the proposed bond issues and to explain the benefits of doing the bond issue at this time. The third bond issue of refinancing the TIF bonds will be handled as a separate issue at a later date. It is the legal counsel's recommendation that this refunding not take place until our state TIF reporting is up to date. RECOMMENDED MOTION: Move to waive the reading of Ordinance # 1384 being an ordinance providing for the issuance and sale of $860,000 general obligation improvements bonds series 1999A. RECOMMENDED MOTION: Move to schedule a second reading of Ordinance # 1384 being an ordinance providing for the issuance and sale of $860,000 general obligation improvements bonds series 1999A for March 8, 1999. RECOMMENDED MOTION: Move to waive the reading of Ordinance # 1385 being an ordinance providing for the issuance and sale of $1,935,000 general obligation utility revenue bonds series 1999B. RECOMMENDED MOTION: Move to schedule a second reading of Ordinance # 1385being an ordinance providing for the issuance and sale of $1,935,000 general obligation utility revenue bonds series 1999B for March 8, 1999. WE:dn 9901285 COUNCIL ACTION: FAEGRE & BENSON LLP 2200 NORWEST CENTER, 90 SOUTH SEVENTH STREET MINNEAPOLIS, MINNESOTA 55402-3901 TELEPHONE 612-336-3000 STEFANIE N. GALEY FACSIMILE 612-336-3026 sgaley@faegre.com faegre.com 612/336-3324 February 18, 1999 Mr. William Elrite Clerk -Treasurer City of Columbia Heights 590 - 40th Avenue Northeast Columbia Heights, MN 55421 Re: City of Columbia Heights, Minnesota $860,000 General Obligation Improvement Bonds, Series 1999A $1,935,000 General Obligation Utility Revenue Bonds, Series 1999B Dear Bill: Enclosed please find the ordinances in connection with the captioned financings scheduled for their first reading before the City Council at its scheduled meeting on Monday, February 22. Please do not hesitate to call if you have any questions. SNG:melbj Enclosures cc(w/enc): Corky Weeks M 1:469324.01 Sincerely, Stefanie N. Galey Minneapolis Denver Des Moines London Frankfurt ORDINANCE NO. 1384 PROVIDING FOR THE ISSUANCE AND SALE OF $860,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1999A The City of Columbia Heights does ordain: 1. It is hereby determined that: (a) the following assessable public improvements (the Improvements) have been made, duly ordered or contracts let for the construction thereof, by the City pursuant to the provisions of Minnesota Statutes, Chapter 429 (Act); Total Project Designation&Description: Project Cost Project Costs: 1998 Zone 3 Improvements $ 749,000 1999 Alley Improvements 532,500 2000 Zone 4 Improvements 500,000 Less Other Funding Sources (940,731) Net Project Costs $ 840,769 Costs of Issuance 15,120 Discount 6,880 Rounding (2,769) TOTAL 860,000 (b) it is necessary and expedient to the sound financial management of the affairs of the City to issue $860,000 General Obligation Improvement Bonds, Series 1999A (Bonds) pursuant to the Act to provide financing for the Improvements. 2. To provide financing for the Improvements, the City will issue and sell Bonds in the amount of $853,120. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $6,880. The excess of the purchase price of the Bonds over the sum of $853,120 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Terms of Proposal: M1:463665.01 1 ORDINANCE AUTHORIZING ISSUANCE THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $860,000 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1999A (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Monday, April 12, 1999, until 10:00 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (651) 223-3002 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (651) 223-3000 or fax (651) 223-3002 for inclusion in the submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated May 1, 1999, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 2000. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature February 1 in the years and amounts as follows: 2001 $ 50,000 2005 $ 95,000 2009 $ 85,000 2002 $105,000 2006 $ 90,000 2010 $ 65,000 2003 $100,000 2007 $ 90,000 2004 $ 95,000 2008 $ 85,000 BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2007, and on any day thereafter, to prepay Bonds due on or after February 1, 2008. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. if less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge special assessments against benefited property. The proceeds will be used to finance street and alley improvements within the City. TYPE OF PROPOSALS Proposals shall be for not less than $853,120 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $8,600, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated riot later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non -substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Faegre & Benson LLP, of Minneapolis, Minnesota, and of customary closing papers, including a no -litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Bonds and a Continuing Disclosure Certificate, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the Bonds will be conditioned upon its receiving the Continuing Disclosure Certificate at or prior to delivery of the Bonds. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (651) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 35 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated February 22, 1999 BY ORDER OF THE CITY COUNCIL 2118/99 11:14 AM /s/ William Elrite Finance Director/City Clerk -iv- 3. Springsted Incorporated is authorized and directed to negotiate the Bonds in accordance with the foregoing Terms of Proposal. The City Council will meet at 7:00 p.m. on Monday, April 12, 1999, to consider proposals on the Bonds and take any other appropriate action with respect to the Bonds. M1:463665.01 2 ORDINANCE AUTHORIZING ISSUANCE First Reading: Second Reading: Motion for adoption: Second: upon vote being taken thereon the following members voted in favor of the motion: and the following voted against: whereupon the ordinance was declared duly passed and adopted. Publication: M 1:463665.01 ORDINANCE AUTHORIZING ISSUANCE STATE OF MINNESOTA ) COUNTY OF ANOKA ) CITY OF COLUMBIA HEIGHTS ) I, the undersigned, being the duly qualified and acting Deputy City Clerk of the City of Columbia Heights, Minnesota, hereby certify that I have carefully compared the attached and foregoing Ordinance No. , with the original on file in my office and the foregoing is a full, true and correct copy of Ordinance No. WITNESS My hand as Deputy City Clerk and the corporate seal of the City this day of ,1999. Deputy City Clerk City of Columbia Heights, Minnesota (SEAL) M1:463665.01 4 ORDINANCE AUTHORIZING ISSUANCE ORDINANCE NO. 1385 PROVIDING FOR THE ISSUANCE AND SALE OF $1,935,000 GENERAL OBLIGATION UTILITY REVENUE BONDS, SERIES 1999B The City of Columbia Heights does ordain: 1. It is determined that: (a) the City engineer has recommended the construction of various improvements to the City's sanitary sewer and water utility, and has further recommended the creation of a storm sewer utility and the construction of various improvements thereto (Project). (b) the City is authorized by Minnesota Statutes, Section 444.075 (Act) to finance all or a portion of the cost of the Project (Project Costs) by the issuance of general obligation bonds of the City payable from the net revenues of the system. The Project Costs are presently estimated by the engineer to be as follows: Total Proj ect Desi,gnation & Description: Project Cost Project Costs Storm Sewer Projects $1,027,983 Utility Projects 721,820 Water Meters 600.000 Total Project Costs $2,349,803 Less DNR Grants (447,750) Net Project Costs $1,902,053 Costs of Issuance 19,120 Discount 15,500 Rounding (1,673) TOTAL $1,935,000 (c) it is necessary and expedient to the sound financial management of the affairs of the City to issue $1,935,000 General Obligation Utility Revenue Bonds, Series 1999B (Bonds) pursuant to the Act to provide financing for the Project. 2. In order to provide financing for the Project, the City will therefore issue and sell Bonds in the amount of $1,919,500. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $15,500. The M1:469222.01 1 ORDINANCE AUTHORIZING ISSUANCE excess of the purchase price of the Bonds over the sum of $15,500 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Terms of Proposal: M1:469222.01 2 ORDINANCE AUTHORIZING ISSUANCE THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,935,000 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL OBLIGATION UTILITY REVENUE BONDS, SERIES 1999B (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Monday, April 12, 1999, until 10:00 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (651) 223-3002 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (651) 223-3000 or fax (651) 223-3002 for inclusion in the submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated May 1, 1999, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 2000. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature February 1 in the years and amounts as follows: 2001 $110,000 2005 $195,000 2009 $225,000 2002 $175,000 2006 $200,000 2010 $235,000 2003 $180,000 2007 $210,000 2004 $185,000 2008 $220,000 BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2007, and on any day thereafter, to prepay Bonds due on or after February 1, 2008. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge net revenues to be derived from the City's storm sewer, water and sanitary sewer charges. The proceeds will be used to acquire property and finance improvements to the City's storm sewer, water and sanitary sewer systems. TYPE OF PROPOSALS Proposals shall be for not less than $1,919,500 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $19,350, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a 'Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. if such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non -substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Faegre & Benson LLP, of Minneapolis, Minnesota, and of customary closing papers, including a no -litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Bonds and a Continuing Disclosure Certificate, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the Bonds will be conditioned upon its receiving the Continuing Disclosure Certificate at or prior to delivery of the Bonds. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (651) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 75 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated February 22, 1999 BY ORDER OF THE CITY COUNCIL 2/18/99 11:14 AM /s/ William Elrite Finance Director/City Clerk -iv- 3. Springsted Incorporated is authorized and directed to negotiate the Bonds in accordance with the foregoing Terms of Proposal. The City Council will meet at 7:00 p.m. on Monday, April 12, 1999, to consider proposals on the Bonds and take other appropriate action with respect to the Bonds. 4. In the resolution awarding the sale of the Bonds the City Council will set forth the covenants and undertakings required by the Act. M I :469222.01 3 ORDINANCE AUTHORIZING ISSUANCE First Reading: Second Reading: Motion for adoption: Second: upon vote being taken thereon the following members voted in favor of the motion: and the following voted against: whereupon the ordinance was declared duly passed and adopted. Publication: M 1:469222.01 4 ORDINANCE AUTHORIZING ISSUANCE STATE OF MINNESOTA ) COUNTY OF ANOKA ) CITY OF COLUMBIA HEIGHTS ) I, the undersigned, being the duly qualified and acting Deputy City Clerk of the City of Columbia Heights, Minnesota, hereby certify that I have carefully compared the attached and foregoing Ordinance No. , with the original on file in my office and the foregoing is a full, true and correct copy of Ordinance No. WITNESS My hand as Deputy City Clerk and the corporate seal of the City this day of 11999. Deputy City Clerk City of Columbia Heights, Minnesota (SEAL) M 1:469222.01 S ORDINANCE AUTHORIZING ISSUANCE