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HomeMy WebLinkAboutOctober 1, 2001 Work SessionCITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: www. ci. colurabia-heights, mn.us ADMINISTRATION NOTICE OF COUNCIL WORK SESSION Notice is hereby given that a work session is to be hem in the CITY OF COLUMBIA HEIGHTS as follows: Mayor Gary L. Peterson Councilmernbers Marlaine Szurek Julienne Wyckoff Robert A. Williams City Manager Walt Fehst Meeting of: Date of Meeting: Time of Meeting: Location of Meeting: Purpose of Meeting: COLUMBIA HEIGHTS CITY COUNCIL OCTOBER 1, 2001 7:00 P.M. CONFERENCE ROOM 1 WORK SESSION AGENDA Consent Items Replacement of Library Public Access Catalog Terminals Resolution authorizing the purchase of 3718 Central - Von Heideman League of Minnesota Cities Membership Dues Discussion Items Modification of Tax Increment Financing Plan for Housing Redevelopment of District 1 Workers comp close out (buy out) of prior years when we were self-insured by the LMC City Hall Roof Report 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 706-3611, to make arrangements. (TDD/706-3692 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 COLUMBIA HEIGHTS - CITY COUNCIL LETTER Meeting of: October 8, 2001 AGENDA SECTION: ~_~ t~ ORIGINATING DEPARTMENT: CITY MANAGER'S NO: Library APPROVAL Authorization to purchase and BY: M. Rebecca Loader~ ~a.~,~'°' BY: ITEM: install 6 public access catalog pc's at the DATE: 9/25/01 DATE: Library NO: The Columbia Heights Public Library (CHPL) has participated in an automated circulation system with the Anoka County Library (ACL) since 1987. The main frame computer is located in Blaine at the Library Support Services building, and all buildings in the system are connected via T1 lines and frame relays. During the past 14 years, access to the databases has been through dumb terminals. To accommodate changes in technology and to provide access to online reference sources, Data Research Associates (DRA), the library's automation vendor, is moving to a client-server environment, which operates with pc's. The first of two phases of implementation is budgeted in 2001 and involves replacement of the six public access catalog dumb terminals with pc's. Library staffhas worked with the Information Systems (IS) staffand the ACL IS department to determine the most cost effective way to install the new pc's. The CHPL can order equipment through the County at their contractual prices and through the City's IS Department. The following breakdown covers the replacement of the six public access catalogs: 1. Ordered through ACL: 6 NetShifi Pro Software Licenses ~ $160= 6 installations/set ups/upgrades ~ $200= 2. Ordered through Columbia Heights IS Department: 6 Compaq Ipaq pc's ~ $729= 6 Compaq color monitors ~ $229.00= $960.00 1,200.00 2,160.00 4,374.00 1,374.00 5,748.00 $7,908.0O The 2001 budget contains the following amounts for the project in the designated line items: 5170 (Office Equipment) $11,400.00 RECOMMENDED MOTION: Move to purchase and to install hardware and software necessary to replace six public access catalog pc's at the Library from the Anoka County Library and through the Columbia Heights Information Systems Department based on available State and County contract prices and obtained quotes; and furthermore to authorize the Mayor and City Manager to enter into an agreement for the same. COUNCIL ACTION: CITY COUNCIL LETTER Meeting of: October 8, 2001 AGENDA SECTION: ORIGINATING DEPT.: CITY MANAGER AVPROVAL NO: COMMUNITY DEVELOPMENT ITEM: RESOLUTION APPROVING PURCHASE BY: Randy Schumacher AGREEMENT FOR 3718 Central Avenue N.E. NO: DATE: September 28, 2001 Staff has reached an agreement to purchase the house at 3718 Central Avenue N.E. from the owner Heidi G.K. Von Heideman (Purchase Agreement is attached). The property will be purchased by the City for $70,000.00. Funding for the purchase of this property will come from Community Development Block Grant funds for commercial revitalization. RECOMMENDED MOTION: Move to waive the reading of Resolution 2001-56 there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2001-56, being a Resolution of the City Council of Columbia Heights approving the purchase agreement and purchase of the property located at 3718 Central Avenue N.E. and utilizing Community Development Block Grant funds for the purchase. COUNCIL ACTION: 3718 Central RESOLUTION 2001 - 56 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA AUTHORIZING THE PURCHASE OF 3718 CENTRAL AVENUE N.E. WHEREAS, the City Council of the City of Columbia Heights (the "City) has an on-going Community Development Block Grant (CDBG) funded Commercial Revitalization Program; and WHEREAS, the City has found that there exists conditions of deterioration, substandard residential structure, in need of repairs which are in violation of the City Housing Code and City Ordinances or there exists a need (due to blighting influences) for intervention by the City to prevent further deterioration of the area; and WHEREAS, the City has an option to acquire one such residential property pursuant to the Purchase Agreement by and between the City of Columbia Heights and Heidi G.K. vonHeideman (the "Seller") and such Purchase Agreement has been signed by the Seller and provided to the City Council. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Columbia Heights that: The City Council hereby approves the terms of the Purchase Agreement for 3718 Central Avenue N.E. between the City of Columbia Heights and Heidi G.K. vonHeideman and authorizes the Mayor and the City Manager to sign it on behalf of the City at a purchase price of $70,000, which is established as the fair market value based on the amount being the price for the property offered for sale by the owner and the value being determined by comparison of formal appraisals of the property. The City Council hereby authorizes the City Manager to handle all the requirements and conditions in order for the City to complete the transaction contemplated in the Purchase Agreement. The City Council approves payment of the purchase cost from the City Community Development Block Grant Program funds. Passed tiffs Second by: Poll Call: __ day of October, 2001 Mayor Gary L. Peterson Patficia Muscovitz, Deputy City Clerk COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: September 18, 2001 AGENT)A SECTION: Items for ORIGINATING EXECUTIVE Consideration, Other Business DEPARTMENT: EDA DIRECTOR NO: 7-C-1 APPROVAL ITEM: Acquisition of 3718 Central Ave. NE BY: Randy Schurnacher BY: DATE: September 11, 2001 BACKGROUND: In June of 2000, the consensus of the EDA Board was to use the CDBG fi.rods to purchase residential property located at 3718 and 3722 Central Avenue. Based on that direction, Mr. Malcolm Watson completed appraisals on both properties. Funding for the purchase ofth/s property is through the City's 1998 ($124,473), and 1999 ($34,417), CDBG Program. As per the application to Anoka County, these funds are to "address the problem of vacant, substandard residential or commercial/industrial structures in areas planned for future commercial development and redevelopment", such as Central Avenue. The owner at 3718 Central Avenue agreed on apurchase pr/ce of $70,000. A Purchase Agreement was drafted by City Attorney, Jim Hoet~ along w/th a waiver of relocation benefits and was signed by Ms. Heidi G.K. vonHeideman, personal representative for the estate ofMadeline Jeanette vonHeideman. A copy of the proposed Purchas,,~ A~¢ement and the relocation benefit waiver are attached. With the exception of final approval ~ the ~ZI'~~'47_.' by Anoka County, which is anticipated shortly, the purchase is read~, for consideration by the EDA and City Council. RECOMMENDATION: Staffrecommends the Board make recormnend to the City Council approval of a resolution authorizing the purchase of 3718 Central Avenue for $70,000 fi:om CDBG Funds. RECOMMENDED MOTION: Move to recommend City Council authorize a resolution to purchase the property at 3718 Central Avenue for $70,000 in CDBG funds. Attachments EDA ACTION: ::\consent Form2001\Acquisi~ion of 3718 Cencral Ave. MINNESOTA STANDARD RESIDENTIAL PURCHASE AGREEMENT 30 i 32 53 108 12O 121 T27 231 233 237 239 240 242 243 244 245 CHARLES M. SEYK01I~,.A BARHA. GUZY & ETT~"FE~. LTD. ~.00 H'0~T'[-FTOWN FI/qANCIAL PLAZA 200 COOiq KAP[D$ BLVD. MINNEAPOLIS, MN $5433-5S~4 763-780-8500 LEAD PAINT ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1978 (use only with Minnesota Standard Residential Purchase Agreement, Minnesota State Rat Association 1 997) This aCdendum is a continuation at Paragraph 21 of the Purchase Agreement and ~,, [tY-O LC~J u~bia.~ eig h ~ %_B uy.e t 8 9 10 11 12 13 15 IS 17 18 19 20 21 22 23 25 26 28 29 30 31 32 33 34 35 36 ,37 3S 39 40 42 43 46 47 48 50 51 52 53 54 55 SB 57 58 59 60 62 63 64 S5 66 67 S8 69 70 71 73 LEAD WARNING STATEMENT Every purchaser of any interest in residential real p~ope~y on which · res/dent/el dwelling was built pr/or to 7575 i$ notified that SUCh property may pre-~ant exposure to lead from lead.hosed paint that may place young children et risk of developing lead poisoning, &sad poisoning ~ young children may produce pe/wTanent neurological damage, including learning d~ebl//tles, reduced intelligence quotient, behavioral problems, end/mpa/red/notaBly. Lead poisoning also poses a pea/curer ~k to pregnant women. The Eel/ar of any interest in re~idential real property i$ required to provide the Suyer with any information on/ead-flase~ paint hazards f/z)m risk assessments or inspections in the Seller's possession and not/fy the ~uyar of any known lead-based paint hazards. A /Ysk assessment or inspect i an for possible lead-based paint hazards ~ recommended p/Yor to purchase. LEAD PAINT INSPECTION CONTINGENCY Buyer's obligations under This Purchase Agreement are contingent upon Buyer obtaining within 10 business days of the date hereof a risk assessment or inspection of the proper~y for possible lead-based paint and lead-based paint hazards, the results of which era acceptable to Buyer. This contingency ~hail be deemed satisfied, and this Purchase Agreement shall be ~n full force and effect and binding upon Buyer and Seller..unless, within 10 business days of the date hereof, Buyer notifies Seller Jn writing that the results Of the ~sk assessment or inspection are unacceptable to Buyer. if Buyer notifies Seller of unacceptable results, this Purchase Agreement shaiZ be null and void and alt earnest money shall be refunded to Buyer. Buyer may waive in writing this contingency at any time. Seller's Disclosure la) Presence of lead-based paint or lead-based paint hazards (check tl} or {ii) below: Ii) Lead-based paint or lead*based paint hazards are present in the housing lexDfain). (il)'~-'- Seller has no knowledge of lesd-based paint or lead-based paint hazards in the housing. lb) Records and reports available to the Seller Icheck (il or Iii) below): ti). __ Seller has provided Buyer with ail records and reports Jn Seller's possession or reasonably obtainable by Seller pertaining to lead-baaed paint and lead-based paint hazards in the housing II,st documents below). Ill) ~/ Seller has no reports or records pertaining To lead-based paint or lead- based paint hazards in the housing. Buyer's Acknowledgment (initial) (c) Buyer has received copies of all information listed at lb) (il above. Id) Buyer has received the pamphlet Protect YourFam//y from/ead/n YourHome. (e) ,~ Buyer has (check Iii or {ii) below): (J) received · 10 business day opportunity lot mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and lead-based paint hazards; or l/il ,.. ~/ waived the opportunity to conduct s Hsk assessment or inspection for the presence of lead-based paint and lead-bssed pa!hr hazards. Agent's Acknowledgment {initial) If) ~ Agent has informed Seller of Seller's obligations under 42 U.$.C.48B2d and ~s awa~e of Agent's responsibility to ensure compliance. Cer[(flcatJon of Accurac~ The following parties have reviewed the information above and csr[Jfy, to the best of their knowledge, that the infon'natJon they have provided is t~ue and accurate. Buyer Buyer STATEN~NT OF OCCUP.4~NCy I, Heidi G. K. von.Heideman, as the Personal Representative of the Estate of Madeline J'eanette vonI--Ieideman, state that the property located at 3718 Central Avenue South, Columbia Heights, Minnesota, has been unoccupied since Febmm-y 25, 2001. Dated: Heidi O. K. vorff-Ieideman Personal Representat/ve Estate ofMadeline Jeanette vortHeideman COLUMBIA HEIGHTS - CITY COUNCIL LETTER Meeting of: October 8, 2001 AGENDA SECTION: Consent ORIGINATING DEPARTMENT: CITY MANAGERS NO: C. 3 CITY MANAGER APPROVAL ITEM: 2002 League of MN Cities BY: Walt Fehst BY:~///'~ Membership Dues DATE: September 28, 2001 DATE: NO: Background: Attached is an Invoice from the League of Minnesota Cities for their annual 2002 Membership Dues, in the amount of $10,504.00. Recommended Motion: Move to authorize payment to the League of Minnesota Cities for 2001 membership dues in the amount of $10,504.00. COUNCIL ACTION: in governance, management and services to citizens City: Columbia Heights Population: 18,520 Building Quality Communities Membership Dues Invoice EffeCtive dunng 2001-2002 Cities with z population off 249 OR LESS ............................................................................................................................ $262 250-4,999 ........................................................................... $91 PLUS 69,.~ CENTS PER C&PITA 5,000-9,999 ...................................................................... 1724 PLUS 56.68 ClaN-rS PER CAPITA 10.000-19,999 ............................................................. $1,566 PLUS 45.26 CENTS PER CAPITA 20,000-49,999 ............................................................... $5,356 PLUS 29.31 CENTS PER CAPIT^ 50,000-299,~99 ............................................................. $15,856 PLUS 8.32 CENTS PER CAPITA 300,000 AND OVER .................................................. $26,72? PIUS 4.70 CENTS PER CAPIT^ (l'hU ~e~edMe ad~ptedJune 15. 2000. Total ~ounded to Fer mcmbe:~dp dues in t}~ ~ of Minu~oa CMcs for thc ycar bcgbming S~ptember 1, 2001. Annual dues ~z membenhlp .~ thc L~ue of Minn~ota Cities inrlud~ ml~crlption at $25 c'~h to ~ffi~e~t~ Ci~}$ m~- ~nc Purmar~ to the disd~u.~ ~qu~m~s ofM~susa Smmt~ 1996, ~a~ou of dues ~¢m f~ Iobby~n~ I~es ~ 10A%. I declare under the pena/dcs of law that the foregoing ae.c~unt is just and cusveet and d~t no part of it h.as b~¢u paid. Dated: September 1,2001 l~ecu~i~ Director, [~gue of M~'mcsom Cities Annual du*s for membership in the League of Minnemm Cities include subs~riptious ~o Minn~.'~:a Ci~e~ maila~n¢ at $25 l~r subscription, accol~ing to ~e fo~g ~¢: Pop'lion ~up N~ ~iptions 249 o~ l~s 6 250 - 4,~9 ~ ~ 5,0~ - 9,~9 ~5 I0,000- 19,999 ' 20 20,000 - 49,999 25 50,~0 - 299,~9 ~0 300.000 or ~ ~5 For ~her ~fo~atlon on sub~fipfions mnt~ ghe ~ offim, (~SD 281.1~. League of M;nne~o[a C~t~ · 145 Uo~e~ty Avenue West · 5t gaul, MN S510~-2044 · ((~51) 2814200 Or (800) 925-1122 · www Imqc.org TOTRL P. 0! COLUMBIA HEIGHTS CITY COUNCIL LETTER Meeting of: October 1, 2001 AGENDA SECTION: '~ I ORIGINATING DEPARTMENT: CITY MANAGER'S NO: Community Development APPROVAL ITEM: Resolution 2001-59, Mod cationo' BY: Nagel BY: TIF District No. 1 DATE: September 28, 2001 BACKGROUND: On May 27, 1997, the Columbia Heights City Council approved a scattered site redevelopment TII~ District to facilitate redevelopment of substandard single-family homes throughout the City in order to improve the City's housing stock, increase property values, and prevent the spread of blight. Tax increments from the 56 properties listed in the Disltict were to be used to finance land acquisition, demolition, relocation, and related development costs. During a meeting August 7® with Shelly Eldridge, Ehlers and Associates, reviewing progress in TN: District 1 and 2, it was determined that the City needs to show activity and any modifications need to be completed on each of the 56 parcels in the District by September 8, 2002, or they will be dropped from the District. This would reduce the potential 'fll~ revenue generated for the above purposes. Finally, all projected funds generated by the District need to be obligated by that date. Based on discussions with the Consultant and further analysis of Housing Redevelopment 'llF District No.1, the following steps can be taken: 1) add 15 parcels to the District on which work is expected to take place prior to September 8, 2001 to increase the revenue stream; 2) Ehlers and Associates will complete a projection of funds that could be expended, then recovered over the remaining 21 years of the District based on the new TIF laws; 3) expend the projected funds for the purposes listed above within the District prior to the September 8, 2002 deadline; 4) decertify (if necessary) Housing Redevelopment District No. 2, the St. Tim's Senior Housing, as it unlikely there will be completion of any development prior to next September; and 5) any City funds that have been spent in the past 4 years on the 56 parcels, such as 4401 Quincy Street NE, can be reimbursed by the District and spent on other housing activities within the District. There is a lot of work to do to realize the goals when the District was set up and not much time to do it in, but accomplishment of the steps above will pay a nice dividend for the City Council and EDA's continuing efforts to upgrade housing in the City. The first step in the modifying Housing Redevelopment District No.l is to call for a Public Hearing. A copy of the proposed Resolution Calling for the Public Hearing and a timetable is attached for your information. I will be at the meeting to answer questions regarding this item. RECOMMENDATION: Recommendation to Approve Resolution 2001-59, a resolution calling for a Public Hearing by the City Council for the proposed modification of Housing Redevelopment of'lit~' District No. 1. RECOMMENDED MOTION: Move to waive the reading of Resolution 2001-59, there being ample copies available to the public. RECOMMENDED MOTION: Move to Approve Resolution 2001-59, a resolution calling for a Public Hearing by the City Council on the proposed adoption of a modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopment Project and the proposed modification of Housing Redevelopment Tax Increment Financing District No. 1, therein and the adoption of the modified plans therefore. Attachments COUNCIL ACTION: RESOLUTION NO. 2001-59 BEING A RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL ON THE PROPOSED ADOPTION OF A MODIFICATION TO THE DOWNTOWN CENTRAL BUSINESS DISTRICT (CBD) REVITALIZATION PLAN FOR THE CBD REDEVELOPMENT PROJECT AND THE PROPOSED MODIFICATION OF HOUSING REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT NO. 1 THEREIN AND THE ADOPTION OF THE MODIFIED PLANS THEREFORE. BE IT RESOLVED by the City Council (the "Council") for the City of Columbia Heights, Minnesota (the "City"), as follows: Section I. Public Heating. This Council shall meet on November 26 or December 10, at approximately 7:00 P.M., to hold a public heating on the proposed adoption of a Modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopment Project, the proposed adoption of a Modification to Housing Redevelopment Tax Increment Financing District No. 1, (a redevelopment district), and the proposed adoption of the Modified Plan therefor, all pursuant to and in accordance with Minnesota Statutes, Sections 469.174 through 469.179, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and Section 2. Notice of Public Heating, Filing of the Modified Plans. City staff is authorized and directed to work with Ehlers and Associates, Inc., to prepare the Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the Modification to the Tax Increment Financing Plan for Modification to Housing Redevelopment Tax Increment Financing District No. 1, and to forward documents to the appropriate taxing jurisdictions including Anoka County and Independent School District No. 13. The Deputy Clerk is authorized and directed to cause notice of the heating, together with an appropriate map as required by law, to be published at least once in the official newspaper of the City not later than 10, nor more than 30, days prior to November 26 or December 10, and to place a copy of the Modified Plans on file in the Deputy Clerk's office at City Hall and to make such copy available for inspection by the public. Passed this day of October, 2001 Offered by: Second by: Roll Call: Mayor Gary L. Peterson Patricia Muscovitz, Deputy City Clerk SCHEDULE OF EVENTS COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF COLUMBIA HEIGHTS FOR THE MODIFICATION OF THE DOWNTOWN CENTRAL BUSINESS DISTRICT (CBD) REVITALIZATION PLAN FOR THE CBD REDEVELOPMENT PROJECT AND THE MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR HOUSING REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT NO. 1 (a redevelopment distric0 As of September 19~ 2001 October 8, 2001 City Council calls for public hearing on the modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the modification to the Tax Increment Financing Plan for Housing Redevelopment Tax Increment Financing District No. 1. October 10, 2001 Project information, property identification numbers, and maps sent to Ehlers and Associates for drafting documentation. October 26, 2001 Project information submitted to the County Board for review of county road impacts (at least 45 days prior to public hearing). October 30, 2001 Letter received by County Comrmssioner giving notice of potential redevelopment tax increment financing district (at least 30 days prior to publication of public hearing notice). November 9, 2001 Fiscal/economic implications received by School District and County Board (at least 30 days prior to public hearing). November 20, 2001 EDA/HRA approves the Modified Plans. November 20, 2001 Ehlers confirms with the City whether building permits have been issued on the property to be included in the TIF District. November 29, 2001 Date of publication of hearing nohce and map (at least 10 days but not more than 30 days prior to hearing). [Focus News publication deadline Friday, November 23, 2001J December 4, 2001 Planning Commission finds Modified Plans to be in compliance with City's comprehensive plan. December 10, 2001 City Council holds public hearing on the modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the modification to the Tax Increment Financing Plan for Housing Redevelopment Tax Increment Financing Dis~'ict No. 1, and passes resolution approving the Modified Plans. [Council packet informatfon sent by December 3, 2001J January 31, 2002 Ehlers certifies Modified Plans with county and state. *The TIF Plan was forwarded to the County 45 days prior to the public headng. The County Board, by law, has 45 days to review the plan to determine if any county roads will be impacted by the development. Please be aware that the County Board could claim that tax increment should be used for county roads, even after the public hearing. CITY COUNCIL LETTER Council Meeting of: October 8, 2001 AGENDA SECTION: CONSENT -~ ~- ORIGINATING DEPT: CITY MANAGER NO: FINANCE~ 2/] ~ APPROVAIff.~// ITEM: LMCIT Workers' Compensation Retro BY: WILLIAM ELRITE BY: Close-Out Option DATE: 09/26/01 DATE: In approximately 1984 the City began purchasing workers' compensation insurance through the League of Minnesota Cities Insurance Trust (LMCIT) under their Retro Refund Workers' Compensation Insurance program. Under this plan, the City paid an optional premium that was considerably less than the standard premium with an agreement that we would reimburse the LMC1T for all workers' compensation claims and expenses up to a maximum cap not to exceed 130% of what the normal standard premium would be. Although this type of insurance was promoted by the LMCIT as being a good potential cost savings for cities, in several years we did exceed the normal standard premium and top out at the 130% maximum. At the present time we still have six open years under this plan. The total potential cost under this plan, if all years max out at the 130% would be $485,546. The LMCIT is now offering an option to buy out this extended liability and close all of these years for a total of $14,653. In comparison to the total potential liability, this is an excellent buy. The offset to this is that if no further claims materialize and no further expenditures are made by the LMCIT, we would see no further expense and the net result would be the savings of the $14,653 that it cost to buy out the ongoing liability. In essence, by buying this out as a close-out at this time we are gambling $14,653 against a potential liability of $485,546. In reviewing this and the open claims with Linda Magee, Human Resources Director, Walt Fehst, City Manager, and our insurance agent, we feel that it is in the best interest of the City to buy all of these years out under the retro close-out option being offered by the LMCIT. RECOMMENDED MOTION: Move to authorize the close-out of all open retro workers' compensation years with the League of Minnesota Cities Insurance Trust at a cost not to exceed $14,653. WE:sms 0109261COUNCIL Attachment COUNCIL ACTION: September 12, 2001 William Elrite City of Columbia Heights 590 40* Ave. Columbia Heights, MN 55421 RE: LMCIT Retrospective Premium Plan Dear Bill: Recently you received a letter from the LMCIT on the cost of choosing a retro close out option adjustment by specific policy year. The illustration did not include the following years due to these reasons: 2/13/87-2/13/88: Premium paid previously is the maximum charge. 2/13/90-2/13/91: 1/1/94-1 / 1/95: Retro close out option chosen previously. 1/1/95-1/1/96: Premium paid previously is the maximum charge. 1/1/96-1/1/97: Payments of$114,396 nearly at $119,882 maximum premium. %%? %%':'\. The close out charge is a primarily the total incurred losses (paid and reserves) multiplied by a percentage charge that decreases with the age of the policy. This decreasing percentage represents the maturity of the claims experience. An example is the 2/13/93-2/13/94 policy year with $6,186 total incurred losses. You have paid $67,297 premium, versus a potential $182,412 maximum premium. The retro close out option charge is $832. The LMCIT is asking for a response prior to September 28, 2001. You have the choice of choosing which policy years the LMCIT is to close out, if any. Please call if you have any questions. Carl A. Bennetsen 00/27/01 11:47 FAX 612 376 4281 BERI(LE¥ RISK ADMIN. 09/27/01 14~ l.]ujvm~it'/A~mue ~'est, ~t. Psu], HN 55].03-2044 Phone: (65]) 281-1200 · (BO0) 9~5-11Z2 TDD (651) 281.1290 LIvIC F~: (651) 281-1299 * LI~CIT F~x: (653.) 281.1298 Veb Si~: httl,:/l'~'-lmn~-°r~ Mr. William Elrite The City of Columbia Heights 590 40th Ave. Columbia Heights, MN 55421 Dear Mr. FJrite: Enclosed is your workers' compensation retro close-out adjustments selected under the optional Retrospective Premium Plan. The close-out adjustments indicate an amount du~ to the LMCtT for $14,653.00. Please send your payment in the enclosed envelope to reach our office prior to October 27, 2001. Upon receipt of your payment, wa'il issue an endorsement for each year you requested closed, specifying that no further premium adjustments will be made for these policy years. if you have any questions, please contact me at (612) 288-2732. Sincerely, Berkley Risk Administrators Company Dan Vaith Accountant cc: LMCIT Gallagher- Carl Bennetson AN I~QUAL OP~ORTIJN FTY/AJ~-~MATIVI3 Ac'nON EM PI.,O~R 09/27/01 11:47 FA~ ~12 376 4281 BERKLE¥ RISK ADMIN. ~002 09/27/01 145 lJniv~r,lt7 A,,,-,,,,,~ ~reK, St. Paul, ~ 55103-204.4 Phone; (651) 281-1200 ' (800) 925-1122 TDD (651) 281-1290 LM_C Fax: (6:51) 281-1299 ' LlViCIT Fax: (651) 281-1298 ~eD ~it~: httlp://~.lmnc-org RETRO CLOSE-OUT OPTION The City of Columbia Heights League of Minnesota Cities Insurance Trust Recap of retro close-out option adjustments by years selected _Policy Year ~ 2-13-86 to 2-13-87 $23.834 2-1 3-88 to 2-13-89 $57,533 2-13-89 to 2-13-90 $46,163 2-13-91 to 2-13-92 $29,806 2-13-92 to 2-13-93 $59,164 2-13-93 to 2-13-94 $6,186 Net Balance Due to the LMCIT $213 2-386 CharGe xO% ~- x3% = x5%-- x9% = xt1%= x 13%= $0 $1,726 $2,308 $3,279 $6,508 $832 $14.653 EQUAL OlqSORTUNII3t/AI;~RMA'I~/~ ACTION E]VIPLOyER COLUMBIA HEIGHTS - CITY COUNCIL LETTER Meeting of: October 1, 2001 AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: CITY MANAGERS NO: CITY MANAGER APPROVAL ITEM: -~ ~ BY: Walt Fehst BY: NO: DATE: September 27, 2001 DATE: Background: Attached is the Columbia Heights City Hall Roof Report from AAC, Inc. This is the same consultant who spec'd the Library roof and was able to get us $15,000 for hail damage recognition on Murzyn Hall from the LMC. The report includes a recommendation for a combination of repairs and renovation work. Analysis: Over the past five years, City Hall has continued to leak in certain areas despite repeated attempts to patch the problem. Bill Holman of AAC, Inc. indicates that Section A over the Police Department needs total replacement at a cost of $55,000, and that Section G over the Finance Department needs restoration at a cost of $15,000. He is recommending that those two areas be completed this year. Not included in the cost is disconnecting and connecting of equipment on the roof, though it could possibly include movement of equipment in order to complete the repair to the roof. Bill Elrite is reviewing the budget to see if we could possibly complete some of this work this year. The remaining sections of the roof could be done within 2-3 years to get an additional 10-12 years of life out of the roof. If no action is taken, I am told tensile strength is lost, and it would be too late to restore the roof for another 10-12 years. We will also be considering replacement of HVAC if it is too old. We will be asking Honeywell to consider this. Obviously, new HVAC would have a warranty, be more efficient, and could reduce our regular O & M. Recommendation: To review the report, consider funding sources and direct staff to enter into contract with Bill Hollman of AAC Inc. to prepare specifications for roof repairs as per attached report. cc: Department & Division Heads COUNCIL ACTION: AAC, INC. 6449 Lyndale Avenue South, Suite 103 · Minneapolis, Minnesota 55423 · (612) 866-3602 C~ of Columb~ He~ts Walter K Fehst City Manager 590 40ts Avenue N.E. Columbia Heights, MN 55421 . This is to confirm our recent infrared survey of the City Hall, Police, and Fire Station. As per your reque~ please find enclosed report on conditions present and our r~commandations for corrective repairs. CONDITIONS PRESENT: The composition of your roofing system is a concrete dec, k, two layers of fiberboard insulation, ~ plies of asphalt and 15# felt, with a flood coat of asphalt and embedded Snivel. The flood coat is quite brittle in all area (especially area A and G). The flashing on nil areas where in need of Fepairs via craze craciinS and splits. The individual problems tre as follows: Area A- has two wet areas and pondins wnter. Area B. has one vent atack that nends to be moved away from the parapnt wall Area D- needs to have flashing rasuffaced Area F,* basically is in fair condition. Area F- Has ponding area and flashing tht needs resurracing. Area O- bas exposed fell rested ductwork, two wat areas, and flashing in very poor ~ondifion. The inside ofthe wall in area G is in very poor repair. The metal copin8 cap is also in poor repair throughout. The wall in area B is stained from the rust at the lap joints in area B. RECO~ATIONS: With the exception of area G your roofs are candidates for restoration rather than replacement. Restomion does not increase your R-value but will exlent the life ofyonr ronfl0-12yeara. Area G shouldbe scheduled for replacement as soon as budsnts allow. The tansile strength is weak in area O ~ restoration impr~ical. Ares A has two wet areas that must be removed and insiall a new roof in those arces, and then restore the remaining wot The restoration process is as follows: 1. Vao. mm loose Sravel and debris off of the roofdown to a clean surface with embedded ~vel only. 2. Repair all weak areas ofrooftzinforcins these areas with two layer of nylon mesh and a high quality elastomeric cement. . 3. Remove metal counter flashing and resurface the flashing using two layer offiberslass mesh coated with nylon set into a hish quality elastomeric cement. Coat fishing with a high quality aluminum paint. 4. Resurface the roof mat with hot modified asphalt at a ra~e of 60-65 # per 100 sq. ~. 5. Rebroadcast f~esh 8ravel mcetln8 ASTM 1863 type 7 mesh at the ra~ of 450-$00 # Per sq. fl. 6. Furnish a five-ycer warranty cover~ laoo~ and material, plus leak repairs as _n~__~. If your budi~t does not ~low any m~jor spending this y~r we v~ l~ve to do some tempora~ rep~r~ to get you through the wint~. If we have a ~rve winter like we ~l last year w~ m~¥ have difficulty keepin/you dry. I have e~clos~d a Priority Schedule for your review and b~dget]n8 use. The rating is bued on & l- 10scale. A 1 rafin~ is a brand new properly installed wof. A 10 rating is a top priority that needs immediate at~em/on- Once · roof reaches a 7 rating it should be scheduled for restoration es soon as poss~le or replaced within 1-2 years. An 8 rat/rig should berestored within 1 yearor as won as budgets will allow. A 9 rating should be replace as soon as possible to avoid serious water infiltration. In some cases you can re,ore a 9 reed roof however, the risk is usually higher. Thank you for this oppommity to serve your mol wnsultin~ needs. If there ~re any questions pl~ contact me . 6449 Lvndale Avenue South, Suite 103 WET AREA 1 IN AREA A INFIL~a~ED PHOTO OF WET AP, EA #1 WET ~ 2- AREA A INFRARED PHOTO O1~ AI~A2 AREA B - VENT STACK IS BUILT INTO PARAPET WALL AREA- B WALKING PAD IS BLISTERING PONDING WA~ F.~ AREA WALL MARg2:~ FROM M~TAL CAP SEAMS FALLING - AREA B AR~A-~ POND~G WATF.~OUND TH~ DRAI~ AREA G DUCT WORK IS IN POOR CONDITION DUCT WORK I$ BADLY ~USTF..,D AND IN POOR REPAIR EXPOSED FELT AREA AROUND TH~ DRAIN PARAPET WALL IS IN POOR RI~PAIR AS W~-t. AS THE METAL COPING CAP WET AREA 3 IN A~.EA G MOISTURE MERER INDICATING WET INSULATION WET AREA 3 INFRARED PHOTO OF WET AREA 3 WET AREA 4 AREA G INFRARED PPHOTO OF AREA 4 EXPOSED FELT IN AREA G OVER¥1~W OF AREA G METAL COPING IS RUSTING CAULKING HAS FAn .~'~ ON STACK FLASHING °l