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HomeMy WebLinkAboutOct 3, 1977OFFICIAL PROCEEDINGS SPECIAL MEETING OF THE CITY COUNCIL CITY OF COLUMBIA HEIGHTS, MINNESOTA OCTOBER 3, 1977 The meeting was called to order at 7:40 p.m. Roll Call: Heintz, Norberg, Nawrocki--present Logacz, Hentges--absent Motion by Norberg, seconded by Heintz, to name Carol Lattery Secretary Pro-Tem for the meeting. Roll Call: Ail Ayes. The purpose of this special meeting is for items as indicated on the Agenda. HEARING AS ADVERTISED: INSTALLATION OF WATER MAIN ON 3RD STREET FROM 40th AVENUE TO A POINT 500 FEET NORTH OF 40TH AVENUE Finance Director John Schedler announced that Bob Owens from the Engineering Department would be giving the explanation of the details of this project. Sr. Engineering Tech. Bob Owens reported that the water main is on 3rd Street from 40th Avenue to approximately 500 feet north of 40th Avenue. He explained that it does parallel a proposed sanitary sewer that was authorized to be installed this year. It takes a jog from the east side of the sanitary sewer to the west side. The reason for that is that the pipe that is on the west of 3rd Street was installed in 1916 and is an old pipe and it would be very difficult to cut into that pipe without breaking it off. The pipe going west from 3rd Street was put in in 1958. The water main is approximately 7½ feet deep, 6 inches in diameter. He stated the Engineering Department contacted the contractor for the Sanitary Sewer Project and asked him for a quote to install this water main and the contractor's quote is approximately $11,000. Bob stated he figured there will be 908 assessable feet which will bring the cost to $13/assessable foot. Included in with that cost was street repair and street restoration to the portion that is dug up. The contractor bid about $2,700 for that item, so he asked the Street Superintendent, Mitch DeMars, if he could do it cheaper. Mitch DeMars thought he could do it for about $1,000, giving a savings of approximately $1,700. Bob Owens recommended about $11.00 per assessable foot for the Water Main Project if the street restoration could be done by city forces. Councilman Heintz asked if the labor cost was figured into the Street Department doing the restoration. Bob Owens replied that it was. Councilman Heintz expressed concern from past experience as to whether or not city forces could do it at that price. Councilman Hentges joined the meeting at 7:50 p.m. October 3, 1977 Councilman Norberg stated he did not see why it is going to cost anything extra being the same contractor is going to be used for the sanitary sewer as for the water main and the contractor is going to be in and out at the same time and the city people are charged with the job of doing the restoration of the sewer already. Bob Owens explained that the sanitary sewer is going to need a trench that is just wide enough for the sewer and the water main is going to need a bigger trench. Councilman Norberg asked if it is a variable cost bid or if it includes the supervision, overhead and such. Bob Owens replied that it was a burdened number and not just a differential number. Mayor Nawrocki explained that in order to make a fair comparison with those numbers the amount of money the Street Department has in there for restoration would have to be taken out of the sanitary storm sewer bid and added to the $1,000 and then compared to Northdale's $2,700. He also noted that Northdale is not in the restoration business themselves. A lady in the audience asked how far apart the two were. Bob Owens replied that the sanitary sewer is 10 feet from the water main. A long discussion ensued on the costs in Northdale's bid for the Water Main Project. Mr. Moneta, resident in the audience, asked why the pipe is 6" in diameter. Mr. Owens explained there is an 8" pipe on 42nd Avenue and there is an area there that used to be owned by the school that is undeveloped which can be fed with an 8" line out to 42nd or up 2nd Street and provide an 8" loop depending on what goes in there and the Engineering Department feels a 6" main could be eventually looped into this 8" pipe and provide proper and adequate service. Mr. Moneta asked if the city is looking to develop that area. Bob Owens replied that the city is looking to develop in that area. Mr. Moneta reported that the dealer is trying to sell this corner and is advertising it now and there is another restaurant chain, H. Bond, who is looking for a place to put a restaurant that is interested. A discussion ensued on the proposed development in that area. A lady in the audience asked if anythinghad been done about the deferred payment and if it had been discussed at all. Councilman Hentges replied that Mr. Jensen, Asst. HRA Director, is looking into the matter now concerning getting a grant through the Housing Authority. A lady in the audience stated this would be something for people in the future, too, who are probably being assessed. October 3, 1977 Mr. Hemp, a resident in the audience, stated he talked it over with his wife and son and he wanted the project approved or he was going to tell his family to move out of Columbia Heights. RESOLUTION 77-56 BEING A RESOLUTION ORDERING IMPROVEMENTS BE IT HEREBY RESOLVED by the City Council of the City of Columbia Heights, WHEREAS, The City Council of the City of Columbia Heights by motion on the 12th Day of September, 1977 ordered notice of a hearing to be given to property owners, and WHEREAS, pursuant to a notice of hearing certain residents appeared at a Council Meeting on the 3rd day of October, 1977, and WHEREAS, the Council determines to proceed with this local improvement, a portion of the cost being defrayed by special assessments under Charter provisions. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the location and extent of such improvements is as follows: 3rd Street, north of 40th 500 feet 2. That the materials to be used are as follows: ductile iron pipe and appurtenances That a careful estimate of the cost of the improvements has been made by the City Manager and the several lots and parcels of land fronting upon and adjacent to such proposed improvements, which he deemed bene- fitted thereby, were properly notified of said hearings, and 4. That the City Manager shall also list the names and owners of the several parcels so improved as nearly as can be ascertained. 5. These improvements shall also be known as Project No. 725 - Water Main Offered by: Heintz Seconded by: Hentges Councilman Norberg asked the residents in the audience who have to pay for the water main if they want it. A lady in the audience stated the residents were for it right from the beginning and felt if it is going to be done that the water and sewer should be put in at the same time because it would be cheaper to do it all at once. Councilman Hentges stated he felt the water main should have been put in years ago, but the citizens couldn't afford it at the time, but he felt now is the time to do it because the property is being sold and is going to be developed there. He concurred that the sewer and water should go in at the same time. October 3, 1977 Councilman Heintz stated it is hard to conceive that there isn't water and sewer to all the homes in Columbia Heights and he felt it is about time to service them all. He didn't feel if a resident sold for potential development, he would lose any money. He stated it is a fact that Columbia Heights is an older, well-established community and there are senior citizens in just about every block in Columbia Heights and he didn't feel the city should stop improvements because of that fact. Mr. Moneta asked if anything had been declared as to the length of time of the assessment. Mayor Nawrocki replied that this would be declared at the Assessment Hearing. The policy as indicated in the past has been for eight years. Roll Call: Ail Ayes Resolution adopted. GARBAGE PICK UP SERVICE BIDS Administrative Assistant Tim Yantos reported that as of 4:45 p.m. today he had not received any materials from Hollie's Rubbish Service Inc., but had received some materials at the meeting tonight but not the Performance Bond. Mr. Yantos introduced Mr. Hollie, his attorney and his banker, · an officerof Plymouth National Bank, Mr. Tony Williams. Mr. Williams stated he reviewed the specifications with Mr. Hollie at the time of bidding and it was agreeable to write the bond with the stipulation of writing it for one year at a time. He felt the contract was not flexible enough. Mayor Nawrocki reported there were requests prior to bid opening asking to have some changes in that requirement, but by virtue of experience and after some discussion, the decision was made to leave the requirement as is. He stated the preliminary facts received on Hollies is that his present customers are satisfied, but it is the city's concern whether the amount of equipment (3 vehicles) he has is enough to provide good service. Mr. Hollie explained that he was in the process of leasing some vheicles and needed two days or 48 hours to get everything together. He stated he would be taking care of getting the equipment and his banker would be taking care of getting the Performance Bond. Councilman Norberg asked Mr. Hollie if he had any negotiations going with someone on the three-year bond. Mr. Williams, Mr. Hollie's banker replied that there were no negotiations at the time. Councilman Heintz asked Mr. Yantos if presently the two obstacles were 1) the Performance Bond and 2) equipment to fill it. Mr. Yantos replied that the Performance Bond was an obstacle, but Mr. Hollie felt he had enough equipment. October 3, 1977 Councilman Heintz asked if Mr. Hollie could use his present vehicles in Columbia Heights being two of those vehicles are being used in his other business. Mr. Hollie explained he is negotiating on two vehicles. Councilman Heintz asked the City Attorney if it is possible to have Hollies Rubbish Service Inc. come up with the Performance Bond and other requirements within 48 hours, otherwise go to the next lowest bidder. The City Attorney replied yes. Councilman Heintz then suggested that Administrative Assistant Tim Yantos and the City Attorney discuss and come up with a proper motion on the Performance Bond and the number of vehicles required. Mayor Nawrocki then suggest Administrative Assistant Tim Yantos, the City Attorney, Mr. Hollie and his two representatives go into the other room and go over everything and come back later with more information. 1978 BUDGET Finance Director, John Schedler, reported that HRA Director, Dean Otterson would not be at the meeting tonight as he is in the hospital. He brought up one item that might tie into the budget and this is the resolution on preparation and submission of an application for a local assistance grant that has to do with the Metropolitan Land Use Planning Act. He questioned what Planning has in mind as they originally needed $6,000 to hire a half- time planner and that half would be paid for by the grant and now they say the grant is going to cover enough and the city doesn't need to put the extra amount in. The budget does not provide any dollars of city funds to work on that Metropolitan Land Use Project other than what would be used by the staff. Mayor Nawrocki noted that at the last several meetings, the Council has gone through documents and have made several changes. From what is here, whether the city went full tilt with the Land Use Planning Program as outlined in the application document previously given or if the city scratched it all together, it would not affect the budget numbers that were talked about. Roger Jensen, Assistant HRA Director, stated the HRA is not asking for any additional monies. Finance Director, John Schedler, laid that issue aside and went back to the budget. He stated he prepared another four-page chart for the Council on the budget. He reported he found out today from the Auditor's office that he is going to have to change the special levy because of the incorrect figure the County gave him on abatement for 1976, and it dropped the levy by $9,376.00, which dropped the mill rate. He restated the levy and mill rate and gave the corrected figures as they stand now for the Revenue, Expenditures and listed the full amount for each department in the General Fund. The balancing item in the General Fund Revenue would be $34,483 and he noted one thing the Council has not really determined yet is what source that should be: liquor transfer, surplus funds or what. October 3, 1977 Mayor Nawrocki noted there are some other smaller equipment items, generators for example, to be gone over. He stated it has been agreed to have an inventory process made of all the selected pieces of equipment. On the smaller items which have had concerns expressed about them as to whether or not there is an actual need, nobody will buy said pieces of equipment without further discussion of the City Council. The Council also has had some concerns about the cameras, but he stated he thought that issue was pretty well covered and there will be further review of the actual need and coordination of the needs of the various departments before any such equipment is bought. School tuition was to receive further review by the Council. The policy manual which is now in draft form will be reviewed by the Council this coming week and no commitments will be made out of next year's money until such time as the Council has reviewed this policy manual, especially that policy on city participation in schooling, tuition, and the like. He stated that items of equipment that are above $500.00 automatically have to come before the Council. The review items that were underneath, generators in particular which are $450 a piece, will be given further discussion with the Council by the staff before those pieces of equipment are purchased. There may have to be adjustments in water, sewer and garbage pickup rates, but the Council will have to see how the outcome of the bid award is going to be on rubbish hauling before they can make that determination. The Council has to look at the transfer out of the Sewer Fund. $34,483 is a number the Council has to talk about as to whether it can be transferred out of Unallocated Surpluses or be transferred out of Liquor Store Profits or what. He asked for any more comments to be made on the Revenue Side of the Budget. Finance Director John Schedler stated the General Fund is about the only item that is in question. He stated it is a matter of what the Council wants to do on that balancing item, either transfer it from Surplus or from the Liquor Fund as has been the past practice and that would give us the balanced budget for the General Fund at $2,917,260. Mayor Nawrocki stated that at the present time, the budget for next year anticipates no transfers from the Liquor Fund to the General Fund. Councilman Norberg questioned the Sewer Revenue Item on page 107 of the Budget asking if the $547,000 budgeted amount included a rate increase. Finance Director, John Schedler, replied that it did include an increase in rate. Councilman Norberg stated the point he was trying to make is that on page 113 of the Budget there is a $50,000 item under Transfers Out of Storm Sewer Construction which doesn't have any supporting information. He suggested changingboth those numbers and proposed a lower sewer increase and not just show enough support of a $50,000 transfer which is rather out of line. October 3, 1977 Mayor Nawrocki statedthe budget is going to anticipate some utility rate increases, but it is not setting any new utility rates. That is going to have to be done by appropriate action of the Council. He stated he did not think the Council could intelligently do that at this time for various reasons: 1) The garbage pickup rate is going to hinge on how the bid award ends up. 2) The sewer rate has some new inputs because of the federal monies that the city received to plug into the 5th Street Storm Sewer Project and 3) The City received cost reductions on the Central Avenue Urbanization. When everything gets squared away and the dollar amountsand impacts are known, the Council is then going to have to sit down and look at that rate and see exactly what kind of increase is going to be needed and it may well be a little bit less than what was originally anticipated by the staff. Councilman Norberg noted there is a $97,000 proposed increase in revenue and he presumed it came from the sewer service charge from increased rates and there is a non-supported expense item under 1790 on page 113 of $50,000, which he did not feel was needed~light of the fact that those rates could be set after finding out what the situation is. He stated the very fact that non-supported item is there tends to support the increased sewer service charges and it surely supports the need for $50,000 of them. He stated he did not like to see the large number in the Revenue Item as he felt it would tend to cause the sewer rate to be higher than it has to be because it is there and because it is supported by this number down in the expense account. Mayor Nawrocki stated the Council is not going to be considering any increase in utility rates tonight. Councilman Norberg complained that every other number in the budget is supported but that one. He noted nobody in the making of this budget came up with any backup at all. He reported he called Finance Director John Schedler and asked him where that number came from and Mr. Schedler said it was a number. Finance Director, John Schedler, explained there is nothing written down in there, but the City Manager did want it in there because every once in a while there might be a problem some place. Councilman Norberg argued it looked to him like the only thing it serves to do is to potentially show a surplus in the Sewer Utility Fund which has already been supplanted by some federal grants the city received on the 5th Street Storm Sewer Project. He contended that $50,000 doesn't need to be there. Mayor Nawrocki noted the action that is supposed to be taken now will have absolutely no bearing on the sewer budget and he proposed scratching it now and coming back to the Sewer Utility Budget when the Council can recorrect that figure. Councilman Norberg stated it was his finding that if a budget number is bigger than it needs tO be, generally so are the expenses. RECESS: 9:20 p.m. RECONVENE: 9:40 p.m. October 3, 1977 Councilman Logacz joined the meeting at 9:40 p.m. GARBAGE PICKUP SERVICE BID CONTINUED Mayor Nawrocki suggested putting aside the budget and going back to the matter of the Garbage Pickup Service Bid. He asked the City Attorney for any information he had based on discussions he and Administrative Assistant Yantos had with the garbage contractor and his representatives. City Attorney Kalina reported that the information regarding the review of the contract document attachments indicated that Hollies Rubbish Service Inc. had in fact complied with all of the insurance requirements of the contract. However the vehicles listed seemed to indicate that in contrast to the current needs of the city, which seem to require 3.2 vehicles, Hollies currently had about 1.3 vehicles available: a 1973 Chev 25-yard which is currently available and a 1972 Chev 18-yard which is apparently available 3½ days per week. He stated Mr. Hollie indicated that he owned an old chassis from another vehicle and he and his banker, Mr. Tony Williams, indicated that he has the resources to purchase a box and make that vehicle usable. They have also pledged to buy or lease an additional new vehicle if they are awarded the contract, which would give them in excess of three vehicles assuming that they were all in good condition. City Attorney Kalina indicated again that Hollies is looking for an extension of time to furnish the thr~year, $50,000 Performance Bond and ask that it be extended until Thursday morning, October 6, at 9:00 a.m. City Attorney Kalina noted another item with respect to the vats. He stated Mr. Hollie furnished him with a list of vats, but that Mr. Hollie indicated that he did not own all those vats but was ordering these. He stated there was no way to confirm the order ~orwas there any way to assure ourselves that these vats would be available right at this time. He asked Mr. Hollie if these were already on order and Mr. Hollie indicated they were, but did not indicated with what company. Mayor Nawrocki reminded the staff that November 1st the present contract expires and there has to be assurances that whoever the contractor is is fully equipped, will be on the street with men and equipment and will continue to provide the service the people in the co~unity are supposed to get on that date. The Council would expect that the staff, when checking out the contractor, do everything they can to assure that this situation occurs. He then asked the City Attorney for his suggestion as to the additional time requested by Mr. Hollie. City Attorney Kalina recommended that Mr. Hollie be given until Thursday morning, October 6, at 9:00 a.m. He explained that his advice in recommending an extension of time is that today was chosen as a reasonable time to have these documents, however on a unilateral basis without Mr. Hollie's prior agreement. He stated there was probably some time prior to the Council's action a week ago, but until a man is reasonably assured that he is going to be awarded the contract, he could understand his reticence to get into these details. October 3, 1977 Mayor Nawrocki asked what will happen if Mr. Hollie comes in with the bond on Thursday morning. City Attorney Kalina recommended at this point, if Mr. Hollie comes in with the bond and the confirmation with respect to the vats, that the City Manager and Mayor be authorized to enter into contract with Hollies, but if this material is not supplied by that time, that the bid be awarded to the next lowest responsible bidder, Dick's Sanitary Service, Inc. Councilman Hentges noted that Hollies have to furnish a certain number of vehicles which have to pass inspection and the insurance on the vehicles, plus OSHA and manpower requirements. He ~sked whether extending more time would throw us back another week or two. Mayor Nawrocki replied that would depend on what action the Council takes. He asked if by 9:00 am on Thursday Mr. Hollie or his representative would sit down with the staff people, hopefully get started on this tomorrow, and go over the city routes, review the equipment (trucks and vats) that is going to be used to cover those routes and manpower so that our staff can be satisfied that there will be no problem with performance. He then suggested considering a motion to award the bid to Hollies contingent on their meeting the Performance Bond requirement on Thursday morning at 9:00 a.m. and that the Mayor and City Manager be authorized to enter into agreement with same for this service. In the event the requirements cannot be met, he recommended that the bid be awarded to the next lowest responsible bidder, Dick's Sanitary Service, Inc., and the Mayor and City Manager be authorized to enter into agreement with same. He suggested that the staff go over the same ground that they have covered with Mr. Hollie for the next lowest responsible bidder before the time of actually sitting down and signing the contract. He stated he felt there is no reason that by the time of the next Council Meeting the city cannot be reasonably assured that there is going to be someone performing the contract. Then the Council can take whatever action is necessary to assure that there will be ongoing service provided the citizens of Columbia Heights. Motion by Logacz, seconded by Norberg, to extend the time that Hollies Rubbish Serivce Inc. has to comply with the Performance Bond requirement of the garbage contract to Thursday, October 6, 1977, at 9:00 a.m. provided that the staff confirms that Hollies Rubbish Service Inc. has the vats listed in the attachment to the contract document before that time and if such bonds and assurances are not furnished to Administrative Assistant, Tim Yantos, at City Hall by that time, the Mayor and City Manager are then authorized to contract with the then lowest responsible bidder, Dick's Sanitary Service, Inc., in accordance with the city garbage contract specifications and the bid of Dick's Sanitary Service, Inc. provided that Dick's Sanitary Service, Inc. meets the same criteria with respect to the equipment and Performance Bond as required by the contract documents. Further, the staff is requested to investigate each contractor's equipment and manpower needs to assure that the contractor has the ability to commence performance of this contract by October 31st, 1977. October 3, 1977 Councilman Heintz asked about the equipment needs such as trucks as they were not mentioned in the motion. City Attorney Kalina replied that what is mentioned in the motion is the "staff is requested to investigate each contractor's equipment and manpower needs to assure that the contractor has the ability to commence performance of this contract by October 31, 1977". He explained that putting this last sentence in was to request the ongoing investigation so that if there is no compliance by the end of the month, the city can get somebody else out there to pick up the garbage and proceed against the Performance Bond for the damages so that there is ongoing service to our citizens. The contract does not call for any specific number of vehicles so that there is no way that Hollies can be required to have these vehicles by that time. Mayor Nawrocki stated that Mr. Hollie has agreed to sit down with Administrative Assistant Tim Yantos to review the routes, vehicles, etc. and, hopefully, the staff will be satisfied that Hollies can start carrying out the contract on November 1st. Roll Call: Logacz, Heintz, Norberg, Nawrocki--Aye. Hentges--abstained. Motion carried. Mr. Dick Hetland from Dick's Sanitary Service, Inc. stated that in the event on Thursday morning it works out that Dick's Sanitary Service, Inc. is awarded the bid, he came to hand out their brochure on their Recycling Service Program. He stated he would like to work with the staff and the City Council in setting up a public education program on recycling. Mayor Nawrocki expressed his appreciation to Dick Hetland for bringing the information to the Council and stated the Council would like to see some recycling activity. He explained that prior to taking bids there was some discussion on the subject and the information given to the Council at that time was that the time was not the best, so the Council decided rather than try to require a Resource Recovery Program, they would ask the contrac- tors to consider it and state that the city would work with them. 1978 BUDGET CONTINUED Mayor Nawrocki noted it has been announced that the budget does not account for any transfer of funds from the Liquor Account to the General Fund. The budget is therefore short by $34,483. He stated the alternatives are: 1) take it out of the budget on the expenditure side, 2) transfer from the Liquor Fund to offset this project shortfall and 3) transfer from Unallocated Surplus in the General Fund to Earned Surplus. This is in lieu of transferring from the Liquor Fund to the General Fund as has been done in the past years because the Liquor Fund is low. Finance Director John Schedler stated the General Unallocated Fund is just an item of Revenue along with taxes and everything else. It is a source of funding. It is just a designation that you are going to be using part of the surplus on next year's budget. When you do that, you then have a balanced budget and you have legally complied with all you need to do. October 3, 1977 Mayor Nawrocki went over again the increases in utility charges. He indicated that at the present time, the Council does not know exactly what these increases need to be and that they can hopefully be less than what the staff indicated those increases should be because the bidding on the refuse service was considerably more favorable than what was anticipated and in the area of the sewer fund, the extra monies received from the federal government to help us with the 5th Street Storm Sewer Project have reduced the local share of monies to be used for that project, and the Central Avenue Urbanization reduction in local costs of the job will again reduce the need for monies from local city funds for that project. So the Council will again have to sit down and review those items with that additional information in mind and hopefully be able to consider rate increases to less than what the staff had in mind. Councilman Hentges mentioned the CETA Program and noted not one penny was allocated to keep on any of the CETA people after September 1978. Mayor Nawrocki explained that at that point in time, the Council is going to have to sit down and review the CETA Program and the functions being carried out by the CETA personnel and then the Council is going to have to make a decision as to which of those functions will need to be carried on. The Council will have the option because there will be monies for that in the Unallocated Contingency Fund or the surplus portion that would enable the Council to make rational decisions based on needs at that time. It takes specific action of the Council to transfer those monies. Councilman Hentges asked if the Council can act upon the levy itself or does there have to be a proposed budget to warrant the levy. Mayor Nawrocki replied that there has to be some backup. He noted there is a resolution and that would be what the Council would act on and it is subject to the Council's perogative to make changes in accordance with the City Charter. Councilman Hentges noted there is a budget for each one of the departments to be expended, but there are no asssurances that each one of these departments is going to get that much money. Mayor Nawrocki stated budgeting is not spending. Councilman Hentges indicated some people in some departments feel that if the money is there they have to spend it, but they have to come to the Council first before they spend it. He stated he just wanted to make that clear just because the money is there does not mean it is going to be spent. Motion by Hentges, seconded by Heintz, that $34,483 be transferred in the proposed city budget from Earned Surplus Fund of 1977 to the General Fund for purposes of balancing out the budget as proposed for 1978. Councilman Norberg stated he thought it ought to come out of the Liquor Fund. Roll Call: Logacz, Heintz, Hentges, Nawrocki--Aye Norberg--Nay Motion carries. October 3, 1977 RESOLUTION 77-57 ADOPTING A BUDGET FOR THE YEAR 1978 AND LEVYING TAXES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS as follows: Section A. The General Fund budget for the City of Columbia Heights for the year 1978 is hereby approved and adopted with appropriations for each of the departments as follows: GENERAL FUND Mayor-Council $ 71,810 Executive 70,815 Finance-Assessing-Elections 131,570 General Buildings 51,865 Legal 61,565 Planning 35,555 Public Safety 1,015,360 Public Works 589,620 Sanitation 288,255 Library 122,325 Parks 295,670 Unallocated and Transfers 182,850 $ 2,917,260 Section B. The estimated gross revenue of the City of Columbia Heights from all sources, including general ad valorem tax levies as hereinafter set forth for the year 1978, the same being more fully detailed in the City Manager's official copy of the 1978 budget, are hereby found and determined to be as follows: GENERAL FUND $ 2,917,260 REVENUE SHARING $ 184,000 Section C. There is hereby levied upon all taxable property in the City of Columbia Heights a direct ad valorem tax in the year 1977 payable in 1978 for the following purposes and in the following amounts: PURPOSE AMOUNT General Fund (Including Recreation) Police Pension Fire Pension Bond and Interest Civil Defense $ 1,188,556 78,500 47,000 260,500 8,600 $ 1,583,156 October 3, 1977 Provision has been made in the General Fund for payment of the City's contributory share to Public Employees' Retirement Association in the amount of $82,925. Provision has also been made in the General Fund revenues for receipt of the State Sales and Excise Tax local govern- ment aid distribution. Section D. A certified copy of this resolution shall be transmitted to the CouNty Auditor. Offered by: Logacz Seconded by: Heintz Roll Call: Logacz, Heintz, Hentges, Nawrocki--Aye Norberg--Nay Councilman Hentges asked the City Attorney if there can be any transfer from line item to line item in the charter without a 4/5 vote as the charter reads you cannot transfer without 4/5 vote. City Attorney Kalina answered it depends on how those items are defined. He stated he thought that language pertains to the items specified in the charter and the only thing that takes a 4/5 vote is transferring one of those items to another item. Those are the items listed specifically in the charter, such as salaries, wages, printing, supplies, etc. He gave an example of a surplus of $50,000 in Park Board salaries and a person wanted to use it for Public Safety salaries to pay another Community Service Officer, at that point it can be done by a 3/5 vote because that is a transfer from salary to salary. However, if the $50,000 in wages is used to buy a new fire truck, then that is a capital investment. There has been a transfer from wages to capital investments which are a different charter item and then would require a 4/5 vote. He stated that this is the way he has been interpreting the way transfers will be made. Councilman Hentges stated he wanted it determined and set clear now so the Council doesn't run across it during the year as they did once before. Mayor Nawrocki suggested the City Attorney set down in writing an answer to this question that has come up before and will come up again. He also suggested putting together a reasonable policy on the handling of expenditures, inter-fund transfers, and if it takes changes in the charter, the Council will have to ask the Charter Commission to consider them. He stated the charter was written back in 1921 and there are changes there, but they are not necessarily all good and certainly not of the present Council's doing, but there are parts he felt are still in error regarding the establishment of salaries. In the old days, that is all it took to establish a salary. Now days, the State Law spells out the procedures for hiring, etc. and this is just another example of an area that needs clarifying and may well need some new language to be considered so that if there is a question of conflict, it can be minimized or resolved on a reasonable basis. He asked the staff to work on it. October 3, 1977 Councilman Hentges asked if for example at the end of the year a department has a surplus, does all of that revert back to the General Fund. Mayor Nawrocki replied that it would be released to the General Fund. City Attorney Kalina stated it doesn't automatically become budgeted for the following year. RESOLUTION CONFIRMING TAX LEVY BY THE HRA FOR 1978 Councilman Norberg stated the Auditor reported that in the past all the levies have been coded directly to Surplus rather than having been shown as an item in the Revenue Fund and so there are two years at least, maybe three years, of levy out of balance. He stated it is on the balance sheet in Surplus and not in the Revenue Fund. He asked if HRA is going to make the approrpiate changes to correct this error that has been going on. Roger Jensen, Assistant HRA Director, stated they were in the process of that now and that they have changed Accountants. Councilman Norberg reiterated that he just wanted to know if the HRA is going to transfer out of Surplus into the Revenue Fund to compensate for the three years or whatever it is of levies that have been mistakenly put in Surplus by your accountant. Roger Jensen stated we have been trying to correct our account for a long time and if it is just a case of transferring numbers, that can be done. Councilman Norberg stated the HRA doesn't have to have an accountant to make a change like that. He stated it is clear that the Board has not contemplated it and he stated he was amazed that they haven't in view of what the Auditor said and they could have done that in the budget they adopted. It is a balance sheet operation. All the levies have been coming in and rather than having to pass into the Levy Fund, they have been going directly into the Surplus Fund. He stated he was rather amazed that the HRA is spending about $74,000 for a Central Office Fund and that it can get that big in that short of time. Roger Jensen stated a lot of that is the CETA Fund. Councilman Norberg asked if the Council was aware of the transfer of $5,000 of the Special Projects Funds into financing the Downtown Develop- ment. Mayor Nawrocki stated he did not think the Council would be approving that transfer by virtue of this resolution. He stated he thought by virtue of the fact the HRA is proposing it, the Council would expect that they would come to the Council and ask for a specific concurrence with the actual transfer of $5,000 in accordance with previous agreements and that Councilman Hentges who represents the Council on the Housing Authority Board serves as a very good liaison between this ~Council and the 'Housing Authority and he felt Councilman Hentges will be watching that issue and he will call it to the Housing Authority's attention. October 3, 1977 Councilman Hentges explained that the Housing Authority is aware of that policy and that they agree if there is to be any money expended from the Special Fund they will get concurrence of the City Council. This is what they are proposing if they need the $5,000 in the Downtown Development budget. Councilman Norberg stated the record should show tbat the Council action, if they approve this budget, is not passing approval of that item. RESOLUTION 77-58 CONFIRMING TAX LEVY BY THE HOUSING AND REDEVELOPMENT AUTHORITY FOR 1978 BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, that WHEREAS, the Housing and Redevelopment Authority of Columbia Heights, Minnesota has adopted a budget as shown on their attached resolution 77-24, and WHEREAS, said Authority has also resolved that a special tax be levied of $21,500 upon all taxable property, both real and personal, in the City of Columbia Heights, and WHEREAS, Section 462.545, Subdivision 6 of the Minnesota Statutes requires approval by the governing body of the municipality in and for which said Authority was created. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Columbia Heights approves and consents to the levy of $21,500 upon all taxable property, both real and personal, in the City of Columbia Heights, by said authority, as special taxing district, for use for the purpose of the redevelopment provisions of Section 462.711 of the Minnesota Statutes. Offered by: Logacz Seconded by: Hentges Councilman Norberg asked if John Schedler read the number for the full levy as he understood this budget was only going to call for half of it. Finance Director John Schedler stated there are two parts to it: the Downtown Council and the HRA general offices. Mayor Nawrocki commented that there aremany things he could be critical of the Housing Authority on some procedures and different things, but looking at the overall pictures, the Housing Authority has been extremely active in offering opportunities for housing rehabilitation within the community, offering rental assistance programs within the community, senior citizen housing projects, very active in trying to bring ideas and proposals that will get something moving on Central Avenue Redevelopment. He stated he supports the overall accomplishments that the Housing Authority has made as they are all very good programs for the community. Roll Call: All Ayes. Resolution is adopted unanimously. October 3, 1977 Discussion ensued on the legality of considering the next two items on the agenda as they were not given the 12-hour advance notice. However, Mayor Nawrocki noted the matter of Land Use Planning was a specific item that was referred to the meeting from the last Council Meeting. The City Attorney stated that stating it at an earlier meeting would constitute a 12-hours notice and it is still legitimate even if it is not on the Agenda. But any item not given 12-hours notice is illegal. Mayor Nawrocki reported he was not going to be at the meeting on Monday, October 10. He commented on the item "Request for Authorization for Mayor to expend up to $1,500 for Civil Defense Recognition Dinner". It should have said "Request for Authorization for Expenses for the Civil Defense Recognition Dinner not to Exceed $1,500". He stated he suspected the actual cost will be closer to $1,000 than $1,500, but that depends on how many Civil Defense Personnel turn out. PROCLAMATION DECLARING SATURDAY, NOVEMBER 19, 1977, AS YMCA SWIM P~RATHON DAY WHEREAS, the Eastside YMCA in conjunction with the Metropolitan Minneapolis YMCA is conducting a Swim Marathon Fund Raising Project on Saturday, November 19, 1977, and WHEREAS, Funds raised by this event will go to underwrite the cost or the Eastside "Y" Fatherless Boy's Program, and the Fatherless Boy's Program presently serves over sixty boys from the Eastside area including Columbia Heights. NOW , THEREFORE, I, Bruce G. Nawrocki, Mayor of the City of Columbia Heights, do hereby proclaim Saturday, November 19, 1977, as YMCA Swim Marathon Day and urge all of our citizens to support this worthwhile fund-raising event on behalf of the fatherless boys in our area. Interested citizens are further advised that additional data is available through Mr. Richard Nelson or Mr. Ed Eide at the Eastside YMCA, 789-8803. Mayor Nawrocki reported he received a request from Southern Anoka County Assistance, Inc., a volunteer group that provides emergency aid to people who are down and out, primarily in terms of food, until other resources are able to take over. He reported that currently they have some space in St. Matthews Lutheran Church, but are running into trouble in that there is not much space for all the clothing and food articles that they try to maintain stock of and they are looking for more space in the area. He stated he contacted this group and asked them whether or not they thought the Tema House, which the city now owns and is not being used and may well be going down, might help them. He reported they did look at the property on Saturday, October 1, and thought that it might well meet their needs. He asked the Council to consider on Monday night authorizing the staff to meet with the Southern Anoka County Assistance, Inc. people and see if an agreeable arrangement can be worked out as to the use of the Tema House on an interim basis until such time as the city makes a determination that this property is needed for other purposes. October 3, 1977 LAND USE PLANNING Asst. HRA Director Jensen reported that for this item he began at the back page of the grant application itself and went to the city staff and asked them how much time it would take them to prepare their portion of the grant. He then multiplied that times their salary. He stated these are strictly manhours and the vast majority of this will be done in our normal workload. Councilman Hentges stated the city had a comprehensive land use plan and spent $35,0~on it. He stated it was adopted in 1969 and not completed until 1972 and he felt there has to be something good in it. Roger Jensen stated the Planning Commission might disagree with him. Councilman Hentges stated that planning is only one part of it. Roger Jensen stated that they based almost all of their decisio~ on planning. Councilman Hentges asked the City Attorney to explain where it says if a city already has one that it has to have another one. He noted all it states is that it has to be updated according to their recommendations. City Attorney Kalina replied that this was right. It just has to be updated according to their recommendations. Councilman Hentges suggested taking the present plan off the shelf, sending it into them asking for their recommendation on what is wrong with it. Roger Jensen stated he was using the census data from 1950 to 1960. But now the Metro Council is projecting Columbia Heights population will be 26,000 by 1985. He stated he felt the city would fall very short of that figure because of the age bracket. He explained that they are working with new regulations. Forexample in the sewer elements they are working with legislation passed in 1974. Councilman Hentges stated he didn't see any reason why the city would have to have a new one since it is a first-rate suburb which has been incorporated for 40 to 50 years and is built 97% to capacity. Mayor Nawrocki commented that he did not agree that the present plan was all bad. He stated he didn't care what kind of plan the city comes up with today, five years from now some of those same comments are going to be made. We might try to predict changes, but we cannot predict them accurately. He didn't agree that the plan was all cookie cutter and stated he was sure parts of it were, but somewhere in between those two extremes is a lot of work and effort that went into that plan as we had good participation from the people. He stated he felt no matter what was sent over to the Metro Council will probably come back with some comments and changes, but that doesn't mean that the present plan can be sent over to them for them to tell us what has to be changed as this would not be realistic either. October 3, 1977 Councilman Hentges asked if the city filed for the grant of $3300 and sent in the plan to them and all that was needed was minor updating, would the city still be eligible for the $3300 grant. Roger Jensen, HRA, stated the city would be eligible for the grant as long as that figure did not exceed 75% of the total cost. So if $5,000 approximately is spent, the city is entitled to it. Councilman Norberg suggested coming back with another budget that turns out to be $5,000 to $6,000 and then changing on the front of it by taking the word "not" out of the sentence under Section 6 which says "the plan was completed in 1969 and because of the quality of that plan, it will not be used." He suggested taking the word "not" out and then it will read "because of the quality of that plan, it will be used as a resource". Sam Van Tassel, Assistant HRA Planner, stated there are several items in the Comprehensive Plan that they have to change. He stated the HRA did not feel that the present plan. is a very good Comprehensive Plan for the community. For example, the HRA has certain goals in Housing that are very important to their long range plans, but a section on Housing doesn't exist. Councilman Hentges stated there should have been a data indexing. He stated that "Housing" is what the comprehensive overall plan of our Zoning Map referred to. He felt there should have been a notation under Housing to refer to the Zoning Map. Sam Van Tassel, Asst. Planner, stated they felt that the present plan is not a very accurate Comprehensive Plan. He stated they are not saying that maybe we shouldn't use it to update it, but they thought it would take substantial changing. He stated their objective is to get a workable Comprehsnsive Plan. Councilman Norberg stated they apparently want to redo the Zoning Map as a result of this. Sam Van Tassel, HRA, stated if there are going to be any changes to the Zoning Ordinances, it is usually based on the Comprehensive Plan. He stated the Metro Council suggested they do a more heavier density compre- hensive planning stating they would like to see smaller lot sizes, not require a garage, etc. Mayor Nawrocki stated that going to smaller l~t sizes is an exercise in futility to talk about because with everything pretty much developed, what is there to carve up. Councilman Norberg stated the alternative in this case would very obviously be multiple dwelling. When a house is torn down, put up a multiple dwelling. There is nothing else to do. October 3, 1977 Mayor Nawrocki explained that the Land Use Planning Act is an act of the Legislature and not the Metro Council. He stated if anybody thinks that what is in the law now as it is on the books is bad, two things: 1) They should have seen what was originally proposed by the Legislature and 2) They should have been over there making their feelings known at that time. The League of Municipalities did try to make their feelings and comments known and tried to have an impact on this Legislation and the result was what you see here, which from the local government's standpoint is considerably modified from what was originally proposed. Also if it isn't done, they will come along and do it and the taxes will be levied on the property in our community to pay for it. Councilman Norberg renewed his suggestion to take the word "not" out of Item #6 on the first page and redo the budget in the back to around $5,000 or $5,500 and submit it that way. Councilman Logacz asked if the Metro Council had some guide lines and if the Comprehensive Plan is supposed to be changed to meet the needs of our community or satisfy the Metro Council. Roger Jensen, HRA, stated the Metro Council has our current Comprehensive Plan on file so they can compare what is turned in now to what was turned in in the past. Councilman Logacz asked how can the Metro Council come in and say these things are to be changed instead of considering whether it meets the community's needs or not and why do the surrounding communities have to look at our plan and approve of what we are doing with our community. Mayor Nawrocki explained that there are things that overlap one community with the other in termsof one community doing something that would be a detriment to the people that are on the other side of the line. For example, Spring Lake Park and Blaine got into a hassle of that nature over traffic generated by the Northtown Shopping Center. Also, the school could coordinate when they are trying to compensate for lower population growth. Motion by Norberg, seconded by Heintz, to refer it back to the Planning Department to revise the front page to indicate the heavier reliance on the present plan and redo the proposed budget in the range of $5,000 or $6,000. Councilman Hentges noted that both units of government, the local govern- ment and the school district, have to work together, but yet have to share the expense. City Attorney Kalina stated the city doesn't have to pay for whatever input the school district puts into it. Mayor Nawrocki asked what the motion does to the dollar amounts. Councilman Norberg stated allocation of the grant couldn't be more than 75% of the total cost, so he proposed a rational number. October 3, 1977 Councilman Heintz asked how long it will take to complete the plan. Roger Jensen, HRA, answered at least a year and one half. Mayor Nawrocki suggested to the Council that they go ahead as he had a certified letter relative to this matter indicating that some time in October that application has to be in or the money will be reallocated to other communities. He also suggested that the language in Item #6 be changed from "completed in 1969'to read "completed in 1972 and adopted in 1969" Roll Call on Councilman Norberg's motion: Heintz, Norberg--Aye Logacz, Hentges, Nawrocki--Nay Motion fails. Motion by Logacz, seconded by Hentges, to change item #6 on the Community Grant Application to read: Columbia Heights has a 701 Plan that was completed in 1972. This plan will be updated" and on page 2 of said Community Grant Application the dollar amounts of the schedule to be revised to total $10,902 including outside assistance money. Motion by Norberg to amend the motion to change $10,902 to $6,000. Motion dies for lack of a second. Roll Call: Logacz, Hentges, Nawrocki--Aye Norberg, Heintz--Nay Motion carried. RESOLUTION 77-59 AUTHORIZING THE PREPARATION AND SUBMISSION OF AN APPLICATION FOR A LOCAL ASSISTANCE GRANT WHEREAS, the 1976 Metropolitan Land Use Planning Act requires all Metropolitan Communities to prepare or update a local comprehensive land use plan, and WHEREAS, the 1976 Metropolitan Land Use Planning Act provides a limited amount of State funds to local units of government to help offset the costs of preparing the comprehensive plan, and WHEREAS, the City of Columbia Heights under the Application, Award, and Disbursement Guidelines, is required to submit a grant application to acquire its entitlement funds, and, WHEREAS, said application has been reviewed by the Council. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, THAT: October 3, 1977 1. The City Planner and City Manager be authorized to sign and transmit copies of the application for Local Planning Assistance grants to the Metropolitan Council for their review and consideration for the activities for which assistance is requested. 2. The City Planner be authorized to administer those activities funded by the grant and periodically report to th~City Council on the status of said grant. Offered by: Logacz Seconded by: Hentges Roll Call: Logacz, Hentges, Nawrocki--Aye Heintz, Norberg--Nay Resolution is adopted. Motion by Logacz, seconded by Norberg, to adjourn the special meeting at 11:55 p.m. Roll Call: Ail Ayes 57 Bruce G. Nawrocki, Mayor Secretary