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HomeMy WebLinkAboutMay 23, 1983OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL REGULAR COUNCIL MEETING MAY 23, 1983 The meeting was called to order by Mayor Nawrocki at 8:00 pm. 1. Roll Call Hovland, Petkoff, Norberg, Hentges, Nawrocki--present 2. Invocation The Invocation was offered by Pastor Walter Wahl of the First Lutheran Church. 3. Minutes of Previous Meetings Motion by Hentges, second by Hovland to approve the minutes of the City Council meeting of May 9th as corrected, and the Special Council Meeting of May 16th as amended, as pre- sented in writing, and that the reading be dispensed with. Roll call: All ayes 4. Oral Petitions There were no oral petitions at this time. 4a. Presentation by Miss Columbia Heights Miss Columbia Heights gave to the Mayor and Council all of the trophies received by the royalty since their reign began. She briefly reviewed some of the activities they were included in and thanked the Mayor and Council for their support. Mayor Nawrocki thanked the royalty and wished them well in the Minneapolis Aquatennial. 5. Ordinances and Resolutions a. First Reading of Ordinance No. IO40 Vacating an Alley The City Attorney gave a new description of the property. Motion by ~entges, second bY Hovland to waive the reading of the corrected ordinance there being ample copies available to the public. Roll call: All ayes ORDINANCE NO. 1040 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY CODE OF 1977, VACATING AN ALLEY The City Council of the City of Columbia Heights does ordain: Section l: The City of Columbia Heights herewith vacates the public alley over the fol- lowing described property: The easterly 14' of the westerly 143' of the southerly 100' of Block 4, Walton's Rearrangement of Lots 33 and 34, Block 6, of Reservoir Hills, according to the recorded plat or map thereof on file and of record in the office of the County Recorder in and for Anoka County, Minnesota Section 2: This ordinance shall be in full force and effect from and after thirty (30) days after its passage. First Reading: May 23, 1983 Second Reading: Date of Passage: Regular Council Meeting May 23, 1983 page 2 b. Resolution 83-24 Authorizing the Development of a City of Columbia Heights Small Busi- ness Financing Program Motion by Hentges, second by Hovland to waive the r~ading of the resolution there being ample copies available to the public. Roll call: All ayes By adopting this resolution the Council would provide preliminary approval to the antic~ipated project; and authorize the City Manager and staff to proceed with implementation of the project, retention of bond counsel, and to proceed with proposed notes and/or bonds if deemed necessary. RESOLUTION 83-24 BEING A RESOLUTION AUTHORIZING THE DEVELOPMENT OF A CITY OF COLUMBIA HEIGHTS SMALL BUSINESS FINANCING PROGRAM PURSUANT TO MINNESOTA STATUTES, CHAPTER 474 WHEREAS, the welfare of the State of Minnesota (the "State") requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unemployment, and it is the policy of the State to facilitate and encourage action by local government units to prevent the economic deterioration of such areas to the point where the process can be reversed only by total redevelopment through the use of local, state and federal funds derived from taxation, with the attendant neces- sity of relocationg displaced persons and of duplicating public services in other areas; and WHEREAS, technological changes has caused a shift to a significant degree in the area of opportunity for educated youth to processing, transporting, marketing, service and other industries, and unless existing and related industries are retained and new industries re developed to use the available resources of the City of Columbia Heights (the "City"), a large part of the existing investment of the community and of the State as a whole in educational and public service facilities will be lost, and the movement of talented, ed- ucated personnel of mature age to areas where their services may be effectively used and compensated and the lessening attraction of persons and businesses from other areas, for purposes of industry, commerce and tourism will deprive the City and the State of the economic and human resources needed as a base for providing governmental services and fac- ilities for the remaining population; and WHEREAS, the increase in the amount and cost of governmental services requires the need for more intensive development and use of ]and to provide an adequate tax base to finance these costs; and WHEREAS, the existence of the Project, as hereinafter defined, in the City will contribute to more intensive development and use of land to increase the tax base of the City and overlapping taxing authorities and maintain and provide for an increase in opportunities for employment for residents of the City; and WHEREAS, the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Sections 474.0] et seq. (the "Act") authorized the issuance of revenue bonds to finance the cost of the acquisition, construction, reconstruction, improvement, betterment or extension of projects; and WHEREAS, the term "project" is defined by Section 474.02, subdivision la, of the Act to p nclude "any properties, real or personal, used or useful in connection with a revenue roducing enterprise"; and ~egular Council Meeting May 23, 1983 page 3 WHEREAS, Section 474.07 of the Act authorizes the governing body of the City, after the authorization of the issuance of bonds pursuant to Section 474.04 of the Act, to provide funds immediately required for the purpose and not exceeding the amount of such bonds, by effecting temporary loans upon such terms as it shall by resolution determine, evidenced by notes, due in not exceeding 24 months from the date thereof, to be repaid with interest from the proceeds of such bonds when issued and delivered to the purchaser thereof; and WHEREAS, a representative of Ruvelson and Associates, Incorporated, a Minnesota corporation (the "Developer") has presented the City Council of the City with information concerning a proposed project (the "Project") to be undertaken with the City; and WHEREAS, the Project proposed by the Developer would require the Developer to construct certain retail and/or office facilities (the "Facilities") within the City for acquisition, in whole or in part, by small commercial firms, corporations, partnerships, or persons (the "Purchasers") wishing to locate, relocate, or expand within the City; and WHEREAS, the obligation of the Developer to construct the Improvements in connection with the Project would be contingent upon the City's undertaking a program (the "Small Business Finance Program" or "Program") to make available to the Purchasers of the Facilities the City's financing powers under the Act; and WHEREAS, the Developer has proposed that, under the City's Program, the City would, upon compliance by a Purchaser with the Program requirements, offer to issue its note (the "Note") pursuant to Sections 474.04 and 474.07 of the Act and loan the proceeds thereof to the Purchaser for the acquisition, in whole or in part, of an office Facility, which Note would be a revenue obligation of the City, payable solely-from loan repayments received from the Purchaser; and WHEREAS, the Developer has proposed that, pursuant to the Program, the City would offer to issue one or more issues of bonds, pursuant to Section 471~.04 (the "Bonds"), within months from the date of the first Note to be repaid therefrom or to directly finance an office or retail facility in the event a Note has not been issued to do so, which Bonds would be revenue obligations of the City, payable solely from loan payments received under the program from the purchasers; and WHEREAS, prior to the issuance of any Notes or Bonds by the City under the Program, the representations and obligations of the City and the Developer to initiate the Program and construct the Facilities pursuant to the Project, and the terms under which a Purchaser would qualify to participate in the Program would be established in a Development Agre- ement (the "Agreement") between the City and the Developer; and WHEREAS, the City has been advised that conventional, commercial financing to pay the capital cost of the Project is available at such costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal financing, and its resulting lower borrowing cost, the Project is ec- onomically more feasible; and WHEREAS, the City has been advised that the Program and the Project would make financing under the Act available to the prospective Purchasers under the Program, and that such financing would not otherwise be available to such small business Purchasers without the standardization and aggregation of their financings pursuant to the Program; and Regular Council Meeting May 23, 1983 page 4 WHEREAS, the Developer has requested that the City resolve to enter into the Agreement, to undertake the Program, to issue the Notes and to issue the Bonds pursuant to the Act to fin- ance the Project, and to authorize and direct the City Manager of the City and the City Staff to enter into negotiations with the Developer and any other interested parties to that end; and ., WHEREAS, before entering into such an Agreement, undertaking such a Project, initiating the Program and issuing any Notes or Bonds thereunder, the City requires professional assistance to determine the marketability of the Notes and Bonds, the financial feasibility of the Project, and the legality of the Project and the issuance of the Notes and Bonds; and WHEREAS, on the basis of the information given the City to date, the City finds that it would be in the best interests of the City to begin negotiations with the Developer to establish the final terms and conditions of the Agreement, the Project and the Program under which the City would issue the Notes and Bonds to finance the Purchasers' acquisition of their office Facilities in the Project in an amount presently estimated not to exceed an aggregate total of $2,000,000. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, THAT: 1. The City hereby grants preliminary approval to the Project and the Program and declares its present intention to work, together with the Developer, toward reaching a final under- standing on the terms of the Agreement pursuant to which the Project and the Program would be undertaken and the Notes and Bonds would be issued; provided that the City shall incur no obligation to the Developer with respect to the issuance of the Notes or Bonds until the City, the Developer and any lender or lenders who may become a party to the Agreement ~have reached a final understanding as to the terms thereof, and such Agreement has been approved and the execution thereof authorized by the final resolution of the City. 2. The City Manager and the staff of the City are hereby authorized and directed to take such actions as are deemed necessary to prepare for the undertaking of the Project and the Program, the preparation of the Agreement and the other necessary documents and the issuance of the revenue Notes and revenue Bonds thereunder, by the City, when, as and if authorized by the City Council of the City, to finance the Purchasers' acquisitions of the office or retail facilities in the project, including specifically the hiring of Holmes and Graven as bond counsel. Such bond counsel will be compensated for its services out of the proceeds of the proposed issues of Notes and Bonds, when and if issued, or by the Developer in the event that the Notes and Bonds are not issued. Passed this 23rd day of May, 1983. Offered by: Hentges Seconded by: Petkoff Roll call: All ayes Bruce G. Nawrocki, Mayor Jo-Anne Student, Council Secretary The Council also received copies of a development agreement which was addressed by Roger Jensen, Director of the HRA. orion by Hentges, second by Hovland to ratify the development agreement for the Ruvelson Project between the Housing and Redevelopment Authority for the City of Columbia Heights and Ruvelson and Associates, Inc. Roll call: All ayes ~egular Council Meeting May 23, 1983 page 4 ~ Oc. Resolution 83-25 1983 Supplemental CDBG Funds These supplemental funds are made available as a result of the "Jobs Bill". $63,237 is being received by the City of Columbia Heights as a result of the "Jobs Bill". The activity that is being suggested was discussed. Councilman Norberg stated that the Human Services Commission had discussed possible uses for this funding and had been led to believe that members of the Council were to receive a memo from the Human Services , Commission regarding its suggestions for uses. No one on the Council had received such' a memo. He explained that it was the proposal of the Commission that possible use for some of the funding would be for staffing at SACA. He also felt that perhaps use of the funds should not be limited to staffing but could be used for other needs of SACA, such as consumables. Since the suggestion of the Commission had just been received it was the opinion of the Mayor that it should be explored further. Motion by Hentges, second by Petkoff to waive the reading of the resolution there being ample copies available to the public. Roll call: All ayes RESOLUTION 83-25 WHEREAS, Anoka County has been designated by the Department of Housing and Urban Development as an Urban County and thereby eligible of Urban County Community Develop- ment Block Grand Fund, and; WHEREAS, the County will be receiving in 1983 Supplemental CDBG Funds as a result of the "Jobs Bill", and; WHEREAS, the County has established a program for distribution of these funds to the communities, and; WHEREAS, the distribution process requires an application outlining the program the community would like to implement using the supplemental CDBG funds, and; WHEREAS, the City Council, at a meeting held on May 23, 1983 directed the HRA staff to prepare and submit an application for the following activity: 1) Acquisition and clearance of non-conforming and/or deteriorating residential and commercial structures located within the City's Commercial Redevelopment District to cause construction of a new office/retail facility. NOW, THEREFORE BE IT RESOLVED, that l) The City Council of Columbia Heights hereby authorizes the preparation and submis- sion of an application for Anoka County Supplemental ("Jobs Bill") CDBG Funds. 2) That this application be for the activity listed herein and the request to the County be for allocated funds. Passed this 23rd day of May, 1983. Offered by: Hentges Seconded by: Petkoff Roll call: All ayes Bruce G. Nawrocki, Mayor Jo-Anne Student, Council Secretary d. Resolution 83-26 Adjust 1982 Budget to Projected Annual Budget Motion by Norberg, second by Hentges to waive the reading of the resolution there being ample copies available to the public. Roll call: All ayes Regular Council Meeting May 23, 1983 page 5 RESOLUTION 83-26 ADJUST 1982 BUDGET TO PROJECTED ANNUAL BUDGET WHEREAS, the City Council of the City of Columbia Heights has reviewed the projected annual 1982 expenses in conjunction with the 1983 budget, and WHEREAS, the City Treasurer has reviewed each General Fund object classification after passing of the bills approved by Council on December 27, 1982, and allowing for year-end accruals, NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Columbia Heights that the following departmental budgets be increased as needed from the balance of the General Fund Contingency: Mayor-Council $ 3,300 City Manager 13,600 Assessing 5,800 Protective Inspections 11,6OO Animal Control 550 Street Lighting 4,500 Library 11,200 Civil Defense 100 Decrease Contingency $ (5o,65o) Passed this 23rd day of May, 1983. Offered by: Norberg Seconded by: Hentges Roll call: All ayes Jo-Anne Student, Council Secretary Bruce G. Nawrocki, Mayor 6. Communications a. Insurance Committee Renewal of Insurance Policy for City Employee Bonding Motion by Hovland, second by Petkoff to renew the employee bond policy in the amount of $100,OOO through Aid Insurance Company for the period of May 15, 1983 through May 14, 1984 in the amount of $1,254. Roll call: All ayes b. Other Communications Copies of a response letter from the Mayor to a resident regarding a street maintenance project were distributed to members of the Council as was a response from Congressman Martin Sabo which addressed urban county designation for Anoka County. Regular Council Meeting May 23, 1983 page 6 7. Old and New Business a. Old Business 1. Proposal to Purchase City-Owned Parcel, 1237 42½ Avenue An appraisal for this parcel was gotten with a figure of $14,OO0 in an as-is condition. It was noted by the appraiser that the current market value would be $29,000 if there were "stable" subsoil conditions. Since the parcel would require excavation and refilling to prepare for building, the appraiser reduced the value by $15,0OO which was his estimate of costs that would occur for foundation preparation. In April, 1983 two offers, both for $8,500 had been received with proposals for land use for the property. In May, one of the purchasers increased his offer to $12,OO0. Councilman Norberg questioned how an offer for less than the appraised price could be accepted. Councilman Hentges felt consideration for the potential costs to make the land buildable was justification. Motion by Hentges, second by Hovland to authorize the City Attorney to draft an ordinance for the conveying of property at 1237 42½ Avenue N.E. to James Prokopowicz in the amount of $12,OO0. Discussion followed regarding that there only be two single-family homes on this property. The City Attorney advised the Council that this stipulation would be in- cluded in the agreement. Roll call: All ayes RECESS: 10:lO RECONVENE: 10:20 b. New Business 1. Change Order for Library Basement Modifications There are four changes in Change Order No.1, the major one provides for additional car- peting. Motion by Norberg, second by Hovland to authorize the City Manager to execute Change Order No. I with D.W. Harstad Company, Inc. for the Columbia Heights Library modifications for an added sum of $1,433. Roll call: All ayes 2. Award of Bid for Sandblasting and Repainting the City's Water Storage Tank Motion by Hentges, second by Norberg to authorize the award of bid to Aegis Ltd. Inc. for the low, formal competitive bid of $10,150 for the repainting and sandblasting of the City's water storage tank and authorize the Mayor and City Manager to enter into a contract for same. Roll call: All ayes The City Engineer had also requested authority to hire a firm to perform inspection work on the job and to certify its completion according to the specs and the best workmanlike standards. He was concerned that a firm be hired that would display a willingness to tes- tify in cases of product liability. Motion by Hentges, second by Hovland to enter into a contract not to exceed $2,500 with Twin City Testing to inspect the recoating of the water storage tank. Roll call: All ayes The City Attorney advised it would be preferable to not determine a company in the motion unless its willingness to litigate had been addressed. Motion to reconsider by Norberg, second by Hovland. Roll call: All ayes Substitute motion by Norberg, second by Hovland to authorize the expenditure of up to $2,500 to hire an engineering firm for inspection work on the water tower interior re- painting and that the Mayor and City Manager be authorized to enter into an agreement for same. It was decided that the willingness of a company to testify in cases of product liability would be reviewed by the City Engineer and ~i~e City Attorney. Roll call: All ayes Begular Council Meeting May 23, 1983 page 7 ,3 Authorization so Expend Funds for a Paint Striping Contract ~tion by Norberg, second by Hovland to authorize the Mayor and City Manager to execute a contract with AAA Striping Service of Hopkins, Minnesota based on low, formal quotation of $1,280.93. Roll call: All ayes 4. Construction of Parking Area in Keyes Park The City Engineer was notified by the Minnesota Department of Transportation that the parking area in Keyes Park could not be covered by state aid funding. This parking area was included in the construction project for Fillmore Street, 46th Avenue, and Reservoir Boulevard. Motion by Norberg to delete the paving of the parking lot area from the project. Motion dies for lack of a second. Discussion followed as to the need for this parking area and how it could be financed. Motion by Hentges, second by Petkoff to authorize the paving of the proposed new parking area at Keyes Park on the 46th Avenue side with the costs coming from General Fund Unal- located. Roll call: Hovland, Petkoff, Hentges, Nawrocki--aye Norberg--nay 5. Establishing Work Session Two dates were established for work sessions; Tuesday, May 24th, 7:00 pm and Monday, June 6th, 7:00 pm. 6.M~I/DOT Agreement-Traffic Lights at 52nd and Central Avenue The Department of Transportation had selected 52nd and Central Avenue for placement of traffic lights. There was considerable discussion regarding maintenance costs for the City. It was noted that Fridley was agreeable to this placement but that Fridley will have no maintenance costs. Authorization for the Mayor and City Manager to execute an reement with MN/DOT had been given at an earlier Council meeting. 8. Reports a. Report of the City Manager The report of the City Manager was submitted in writing. Some of the items in the report that were discussed are as follows: 1) Proposed Changes to City Ordinances: to amend our public health and safety section to prohibit the keeping and raising of bees and several animals and birds; to amend our zoning ordinance with regard to lot splits. The City Attorney was requested to draft an ordinance that would address these proposed changes. 2) Data Processing Feasibility Study: The tentative schedule for major items in the feas- ibility study and the timeframes for completing various phases of the study were given to the Council and were discussed. Motion by Hentges, second by Norberg to send a copy of the feasibility study done by Packaged Computer Systems, Inc. to the Science, Technology and Energy Commission for its review and for recommendations of the Commission to be returned to the Council with- in thirty days. Roll call: All ayes 3) Receipt of Bid to Purchase Used Library Carpeting: A bid of $1.00 per. square yard (approximately 25 square yards) had been received for the carpeting in the employees room at the Library. Motion by Norberg, second by Petkoff to authorize the City Manager to sell the library :arpeting to Gloria Uden for $1.O0 a square yard. Roll call: All ayes ~egular Council Meeting May 23, 1983 page 8 b. Report of the City Attorney The City Attorney advised the Council of some of the sources and data that would have to be checked to accommodate the proposed changes in that section of the ordinance that dresses public health and safety. 9. Licenses Motion by Petkoff, second by Norberg to approve the licenses as listed upon payment of the proper fee. Roll call: All ayes 10. Payment of Bills Motion by Hentges, second by Hovland to approve the payment of the bills as listed out of proper funds. Roll call: all ayes Adjournment Motion by Norberg, second by Hovland to adjourn the meeting at 12:15 am. ayes Jo~e St~'dent, C-ouncil S~etary