HomeMy WebLinkAboutAug 27, 1984OFFICIAL PROCEEDINGS
COLUMBIA HEIGHTS CITY COUNCIL
REGULAR COUNCIL MEETING
AUGUST 27, 1984
The meeting was called to order by Mayor Nawrocki at 7:30 P.M..
1. Roll Call
Hovland, Petkoff, Carlson, Peterson, Nawrocki - present
2. Invocation
There was no Invocation offered as there were no ministers available.
3. Minutes of Previous Meetings
Motion by Petkoff, second by Hovland to approve the minutes of the Regular City
Council Meeting of August 13, 1984 as presented in writing and that the reading
be dispensed with. Roll call: All ayes
4. Oral Petitions
The resident at 1505 Pierce Terrace re)ated an experience her daughter had at a
City Park and requested that the Park Patrol be reinstated to avoid instances such
as this. She was advised by the Mayor that the Park Patrol had consisted of one
part time person who served on a contract basis. He also noted that the Police
Department has increased its park patrolling activity which has resulted in an
increase of arrests for misconduct in the city's parks. Another resident suggested
that members of the Police Reserve could patrol the parks. He was advised that
these volunteers had no arrest powers.
Another resident had an inquiry regarding any easements that may have been re-.
quested by the developer of the condominium project on 40th and University Avenue.
He was advised that no variances nor easements had been requested or granted. This
resident also was interested in knowing why the City of Anoka could purchase new
police cars using CDBG funds. Mayor Nawrocki responded he had no knowledge that
this had been done and told the resident that in each case when a request for the
use of CDBG funds is made certain criteria must be met before the funding is auth-
orized. The last question this resident asked was how much of the funding for the
Central Valu Mall project on 44th and Central came from Kraus-Anderson, the deve-
loper. He was advised that all of the funds came from the developer.
The resident at 825 50½ Avenue requested that an utility easement on his property
be vacated so he will be able to add on to his garage. Discussion followed how this
easement affected other properties.
Motion by Hovland, second by Petkoff to direct the City Attorney to prepare an ord-
inance to vacate the easement at 825 50½ Avenue and adioinin~ orooerties if it is
determined that the easement is not needed. Roll call: All ayes
5. Ordihances and Resolutions
a. Second Reading of Ordinance No. 1088 Preliminary Approval to Kraus-Anderson Project
Motion by Hovland, second by Peterson to waive the reading of the ordinance there
being ample copies available to the public. Roli call: All ayes
The Kraus-Anderson Corporation, developer of the property on 44th and Central Avenues,
is requesting that the City approve the issuance of its industrial development revenue
bonds, which are not to exceed $1,OOO,OOO and will come from the City's allocation
of Industrial Development Bonds.
.Regular Council Meeting
August 27, 1984
page 2
A resident questioned the amount of money being spent on this project and stated he
felt it was too large an amount in that the building was already standing. He was
advised by Mayor Nawrocki and by the bond counsel for the developer that the use of
the money is mandated to be used for "hard costs" and is not to be considered for use
for operating costs. It was noted that the expenditure of the funds is observed very
closely.
ORDINANCE NO. 1088
ORDINANCE GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE MINNESOTA ENERGY AND ECONOMIC DEVE-
LOPEMENT AUTHORITY FOR APPROVAL, AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS
The City of Columbia Heights does ordain:
1. It is hereby found, determined and declared as follows:
1.1 The welfare of the State of Minnesota (the "State") requires active promotion,
attraction, encouragement and development of economically sound industry and com-
merce through govermental acts to prevent, so far as possible, emergence of blighted
land and areas of chronic unemployment, and it is the policy of the State to faci-
litate 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 necessity of relocating displaced persons and dupli-
cating public services in other areas; and
1.2 Technological change 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 are 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, educated personnel of mature age to areas where
their services may be effectively used and compensated and the lessening attration
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 facilities for the remain-
ing population; and
1.3 The increase in the amount and cost of governmental services requires the need
for more intensive development and use of land to provide an adequate tax base to
finance these costs; and
1.4 A representative of Kraus-Anderson, Incorporated, a Minnesota corporation (the
"Developer"), has advised this City Council that it desires to undertake a project,
consisting of financing the acquisition and construction of certain improvements and
betterments to' the Central Valu Mall for use in connection with the businesses con-
ducted therein, said project being located in the City (hereinafter referred to as
the "Project")~ and
1.5 The existence of the Project in the City will contribute to more extensive dev-
elopment 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
'Regular Council Meeting
August 27, 1984
page 3
for residents of the City, including economically disadvantaged or unemployed
individuals; and
1.6 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 economically more feasible; and
i.7 This Council has been advised by a representative of the Developer that on the
basis of information submitted to them and their discussions with representatives
of area financial institutions and potential buyers of tax-exempt bonds, industrial
development revenue bonds of the City could be issued and sold upon favorable rates
and terms to finance the Project; and
1.8 The City is authorized by Minnesota Statutes, Chapter 474, to issue its revenue
bonds to finance the cost, in whole or in part, of the acquisition, construction,
reconstruction, improvement or extension of capital projects consisting of prop-
erties used and useful in connection with revenue producing enterprises, such as
those of the Developer and the businesses located in the project, and the issuance
of such bonds by the City would be substantial inducement to the undertaking of the
Project in the City.
2. On the basis of information given the City to date, it appears that it would be
in the best interest of the City to issue its industrial development revenue bonds
under the provisions of Chapter 474 to finance the costs of the Project of the Dev-
eloper in an amount presently estimated not to exceed $1,000,000.
3. The Project is hereby given preliminary approval by the City and the issuance of
the revenue bonds for such purpose and in such amount approved, subject to approval
of the Project by the Minnesota Energy and Ecomonic Development Authority and to the
mutual agreement of this body, the Developer and the initial purchaser of the bonds
as to the details of the bonds and provisions for their payment. In all events, it
is understood, however, that the bonds of the City shall not constitute a change,
lien or encumbrance legal or equitable upon any property of the City except the
Project, and the bonds, when, as, and if issued, shall recite in substance that the
bonds, including interest thereon, are payable solely from the revenues received
from the Project and property pledged to the payment thereof, and shall not con-
stitute a debt of the City.
4. In accordance with Minnesota Statutes, Section 474.01, Subdivision 7a, the Mayor
of the City is hereby authorized and directed to submit the proposal for the Project
to the Minnesota Energy and Economic Development Authority for approval of the Pro-
ject. The Mayor and other officers, employees and agents of the City are hereby
authorized to provide the Minnesota Energy and Economic Development Authority with
any preliminary information needed for this purpose, and the City Attorney with any
preliminary information needed for this purpose, and the City Attorney is authorized
to initiate and assist in the preparation of such documents as .may be appropriate
to the Project, if it is approved by the Minnesota Energy and Economic Development
Authority.
5. The law firm of Holmes & Graven, Chartered, is authorized to act as Bond Counsel
and to assist in the preparation and review of necessary documents relating to the
Project and bonds issued in connection therewith. The Mayor, City Attorney, and
other officers, employees and agents of the City are hereby authorized to assist
Regular Council Meeting
.August 27, 1984
page 4
Bond Counsel in the preparation of such documents.
6. In accordance with Minnesota Statutes, Section 474.O1, Subdivision 11, the City
Manager and other officers, employees and agents of the City are hereby authorized
and directed to encourage the Developer to provide employment opportunities to ec-
nomically disadvantaged or unemployed individuals. Such individuals may be identified
by such mechanisms as are available to the City, including the first source agre-
ement in which the Developer agrees to use a designated State employment office as
a first source for employment, recruitment, referral and placement.
7. The City shall have the right, in its sole discretion, to withdraw from part-
icipation, and accordingly, not issue its revenue bonds for the Project, should
the City at any time prior to the issuance thereof determine that it is in the best
interest of the City not to issue its revenue bonds or should the parties to the
transaction be unable to reach agreement as to the terms and conditions of any of
the documents required for the transaction. The decision of the City Council with
respect to any of the aforementioned matters shall be incontestable.
8. This Ordinance shall be in full force and effect from and after thirty (30)
days after its passage.
First reading:
Second reading:
Offered by:
Seconded by:
Roll call:
July 23, 1984
August 27, 1984
Hovland
Peterson
Hovland, Petkoff, Peterson, Nawrocki - aye
Carlson - nay
Date of passage: August 27, 1984
Bruce G. Nawrocki, Mayor
Jo-Anne Student, Council Secretary
b. Resolution 84-51 Reimbursement Funds - Police Officer Training
Motion by Peterson, second by Carlson to waive the reading of the resolution there
being ample copies available to the public. Roll call: All ayes
RESOLUTION 84-51
RESOLUTION AUTHORIZING CHIEF OF POLICE AND CITY TREASURER TO APPLY FOR REIMBURSEMENT
OF MONEY FOR POLICE OFFICER TRAINING
BE IT RESOLVED by the City of Columbia Heights as follows:
WHEREAS, the City of Columbia Heights maintains and operates a police department; and
WHEREAS, the State of Minnesota has passed a statute assessing a ten percent surcharge
on all moving traffic offenses for the purpose of assisting in the cost of police
training;
WHEREAS, the City of Columbia Heights must formally apply for its reimbursement;
NOW, THEREFORE, BE IT RESOLVED, that the Chief of Police and the City Treasurer are
.Regular Council Meeting
A~gust 27, 1984
page 5
to apply for such reimbursement on behalf of the City of Columbia Heights.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS THIS 27TH
DAY OF AUGUST, 1984.
Offered by: Peterson
Seconded by: Carlson
Roll call: All ayes
ATTEST:
Bruce G. Nawrocki, Mayor
William EIrite, City Clerk
6. Communications
There were no communications.
7. Old and New Business
a. Old Business
1. Rax Restaurant, Letter of Credit
This matter was discussed at an Executive Session with the City Attorney.
2. Cimmaron Capital Corp./DaVerne Corporation, Letter of Credit
The original proposal for the letter of credit was that the anx>unt would be $45,OO0
until all of the project is completed. Cimmaron had requested that the City Attorney
draft an alternative letter of credit for the Council's consideration with the fol-
lowing conditions; $45,000 until June 15, 1985 and the amount to be reduced to $10,000
after that date until all of the clean-up work and any interior work is completed.
Mayor Nawrocki stated that he is opposed to making any concessions to this developer
citing changes that were made in the project after having been reviewed by residents
in the neighborhood. The Mayor felt this had broken faith with the neighbors and also
stated that other developers had not been afforded this accommodation with their letters.
of credit. Councilman Carlson stated that this developer has had all of the changes
it deserved.
Motion by Carlson. second by Hovland to authorize the City Manager to enter into a
letter of credit with the Cimmaron CapitalCorporation/DaVerne Corporation for the
Nelson School condominium project. Roll call:All ayes
3. Award of Bid - Parking Lot for Parkview Villa
Motion by Peterson, second by Carlson to award the Parkview Villa Elderly High Rise
parking lot expansion at 965 40th Avenue (Project #8410) to Bituminous Roadways, Inc.
of Minneapolis in the amount of $29, 637.41 based upon low, formal bid; and further-
more, to authorize the Mayor and City Manager to execute a contract for such service
and that the staff be authorized to work with the HRA to include lighting of the
parking lot. Roll call: All ayes
4. Organizational Structure of Public Works Department
The City Manager and the City Engineer reviewed the proposed restructuring of the
Public Works Department and the salaries being proposed. Mayor Nawrocki stated he
would rather see individuals put into the new positions being proposed on a trial
basis and also that he was not convinced of the merits of the Administrative Assist-
ant position. Councilman Carlson was opposed to a new supervisor and administrative
assistant in the department. The City Engineer advised the Council that this re-
· ~egular Council Meeting
Abgust 27, 1984
page 6
organization would result in a $9,000 savings in salaries of department personnel.
Councilmembers Petkoff. Hovland. and Peterson were supportive of the proposal.
Councilmember Petkoff inouired if the position of Administrative Assistant could be
considered as a part time position and the City Engineer suggested it should only
be a full time position.
Motion by Peterson, second by Hovland to adopt the position descriptions dated
August 27, 1984, of Working Foreman, Public Works Superintendent, and Administrative
Assistant - Public Works Department; and furthermore, to establish a salary range for
the Administrative Assistant - Public Works position as follows:
Hourly - Entry, $8.15; 6 Months, $8.52; 1 Year, $8.89; 2 Years, $9.26
Roll call: Hovland, Petkoff, Peterson - aye
Carlson, Nawrocki - nay
5. Retention of Cable Consultant to Review Group W Cable Rate Increase
The Council received copies of proposals from consulting services regarding Group
W rate review and performance audit. These proposals were discussed indiwidually.
The Mayor stated again that the review should be done to determine if the rates
are determined by the cost of supplying the service or if they are based on what-
ever the market will bear. He also felt more consulting firms should be pursued.
It was noted that our franchise agreement with Group W states that Group W will
pay the costs of the audit and the rate review. Staff was requested to see if
this part of the franchise agreement had also been changed by new federal legis-
lation. No Council action was taken on this matter.
6. Establish Position Description & Salary Range for Liquor Operations Manager Position
The job description for this position included only responsibilities for an off-sale
liquor operation. It was decided the term "off-sale" should be striken from the job
description. Councilmember Petkoff stated she would prefer to see the two types of
liquor sales, on-sale and off-sale kept separate. The City Manager told the Council
that a number of applicants for the position had been interviewed. The ad for the
job is being run again in the newspaper and another interview is scheduled for Tuesday.
Motion by Petkoff, second by Peterson to approve the position description of Liquor
Operations Manager dated August 27, 1984; and furthermore, to establish a salary
range as follows:
Annual: Entry, $32,391; 6 Months, $33,496; 1 Year, $34,600; 2 Years, $35,704 and
3 Years, $36,808. Roll call: All ayes
b. New Business
!. WAYL Radio and Rainbow Foods
Motion by Petkoff, second by Carlson to approve WAYL Radio and Rainbow Food request
to erect a 30' x 40' tent in the parking lot of Rainbow Food at 4300 Central Avenue
for the following dates: September 20-24, 1984, and subject to agreement by WAYL
and Rainbow Food to indemnify the City for any damages incurred by the City as a
result of this approval and that such approval is conditional upon proper arrange-
ments being made with the Police Department. Roll call: All ayes
RECESS: 10:10 P.M.
EXECUTIVE SESSION
RECONVENE: 11:00 P.M.
2. Columbia Heights Motor Request for Erection of Tent
This item was withdrawn from the agenda as no formal request was received.
'Regular Council Meeting
August 27, 1984
page 7
3. Schools and Conferences
Fire Chief's Attendance at Conference
Motion by Hovland, second by Peterson to approve the attendance of Don Johnson,
Fire Chief, at the Minnesota and Canadian American Fire Chiefs Conference in
Bemidji, Minnesota on October 18-20, 1984; and furthermore, to authorize reim-
bursement of related expenses. Roll call: All ayes
4. Purchase of Lounge Furniture for Fire Department
Motion by Petkoff, second by Peterson to authorize the City Manager to purchase
furniture for the Fire Department lounge from Wickes at a cost of $1,179.73 based
upon low, informal quotations. Roll call: All ayes
5. Purchase of Repair Parts for Street Sweeper
Motion by Carlson, second by Hovland to authorize the City Manager to purchase
needed repair parts for street sweepers from Seal Methods, Inc. of Santa Fe
Springs, California in the amount of $2,637.10 based upon low quotation. Roll
call: All ayes
6. Request to Vacate Alley
Motion by Carlson, second by Hovland to instruct the City Attorney to prepare the
necessary ordinance to vacate the east/west alley off of Van Buren at the site of
the new Credit Union Office; and, furthermore, that the first reading of this
ordinance occur on September 10, )984. Roll call: All ayes
7. 1985 License and Permit Fees
The Council determined that there will be no changes in the license and permit
fees for the year of 1985. Some discussion followed regarding application of the
penalty. Mayor Nawrocki felt the penalty should be included in the up-front charge
and subtracted if the license is paid by the deadline.
RESOLUTION 84-52
Motion by Petkoff, second by Hovland to waive the reading of the resolution there
being ample copies available for the public. Roll call: All ayes
RESOLUTION 84-52
ESTABLISHING 1985 BUSINESS LICENSE FEES
WHEREAS, Ordinance No. 853, City Code of 1977, pertaLning to commercial licensing
regulations provides for the establishing of annual license fees; and,
WHEREAS, the City has participated in a survey of metropolitan municipalities re-
garding business license fees charged by other communities; and,
WHEREAS, the City is attempting to maintain business licenses which are comparable;
and,
WHEREAS, the City annually reviews its business fee schedule;
NOW, THEREFORE, BE IT RESOLVED that the attached proposed license fee schedule be
adopted and effective January l, 1985.
Passed this 27th day of August, 1984.
'Regular Council Meeting
August 27, 1984
page 8
Offered by: Petkoff
Seconded by: Hovland
Roll call: All ayes
Jo-Anne Student, Council Secretary
Bruce G. Nawrocki, Mayor
8. Final Pay Estimate - Consolidate Plumbing, Projects #8212 & #8208
Motion by Carlson, second by Peterson to authorize the final payment ~o Consolidated
Plumbing of Burnsville, Minnesota in the amount of $10,027.13 for Projects #8218 and
#8208. Both of these projects are lift stations. Roll call: All ayes
9. Final Pay Estimate - Miscellaneous Concrete Repairs and Installations
Motion by Petkoff, second by Peterson to authorize the final payment to Concrete
Curb Company of Burnsville, Minnesota in the amount of $555.69 for miscellaneous
concrete repairs and installations, Project #8409. Roll call: All ayes
10. Maintenance Coat on Service Center Garage Floor
Motion by Hovland, second by Peterson to authorize the expenditure of funds for a
maintenance coat on the Service Center floor in the amount of $5,680 to Florock
Northwest, Inc. of Minneapolis, Minnesota based upon quotation received, with
the recognition by City Council that this purchase is a proprietary item; and,
furthermore, that expenditures be charged to Central Garage Fund, Account #602-4862.
Roll call: All ayes
I1. Naming of New Liquor Store
Many names for the new liquor store in the City were discussed and the final choice
was Heights Liquor Warehouse.
12. Purchase of Equipment for Cable Communications
a. Specific Equipment
Motion by Peterson, second by Petkoff to authorize the Cable Communications Commis-
sion to seek proposals on the following items which are included in the 1984 Cable
TV budget:
5 - iow light video cameras
I - ½" portable recorder
2 - ½" non-portable recorders
3 - color televisions
1 - color television with large screen
Mayor Nawrocki felt this authorization was premature as there is no plan in place
for maintenance, security of the equipment, monitoring and operating costs.
Roll call: Hovland, Petkoff, Carlson, Peterson- aye Nawrocki - nay
b. Wiring of Council Chambers
The wiring being requested is primarily for color television. The lighting presently
in the Council..Chambers will be sufficient for black and white. Councilmember Petkoff
stated that members of the Cable Commission will install the wiring. This matter was
defemred until the next Council meeting for additional information.
Regular Council Meeting
August 27, 1984
page 9
13. Performance Audit of Group W Cable
This item had been considered earlier in the meeting.
14. Request to Seek Bids for Replacement Van
Motion by Peterson, second by Petkoff to authorize the City Manager to seek bids
for the replacement of a 1966 Chevrolet truck. Roll call: Hovland, Petkoff, Nawrocki,
Peterson - aye Carlson nay
~. Reports
a. Report of the City Manager
This report was submitted in written form. Also, an addendum to the City Manager's
report was distributed which contained three items. One of the items on the addendum
addressed the appointment of a new City Accountant, Mary Prokop. Her appointment is
effective September 18, 1984 at an entry rate of $24,000 ($2,000'per month).Mayor
Nawrocki noted that this salary should have been established by the City Council as
dictated by Charter. The City Attorney stated the salary was part of the con'tractural
agreement for the position. A second item dealt with the reconstruction of 41st Ave-
nue, Reservoir Boulevard to Stinson Boulevard, and the estimated costs for storm
drain construction. The City Engineer reviewed with the Council all the facets of
this reconstruction project and its costs. All members of the Council were in agre-
ement that the City Engineer should proceed in gathering additional information on
this item.
b. Report of the City Attorney
The Letter of Credit for Rax Restaurant had been discussed earlier in the meeting
during an Executive Session.
Motion by Hovland, second by Carlson to approve the amended letter of credit with
Rax Restaurant. Roll call: All ayes
Acquisition of Property
Motion by Carlson, second by Hovland to authorize the acquisition of 4101 Third Street
at a cost of $525.00 to be transferred to the HRA. This property is adjacent to the
University Heights project. Roll call: All ayes
Mayor Nawrocki requested that the Gaughan Company sod and remove the stump as well as
restore the land back to an acceptable condition at 210 42nd Avenue. The Building
Inspector advised the Council he wilt contact the Gaughan Company regarding this
matter.
9. Licenses
Motion by Petkoff, second by Hovland to approve the licenses as listed upon pay-
ment of proper fees. Roll call: All ayes
10. Paynent of Bills
Motion by Hovland, second by Carlson to pay the bills as listed out of proper funds.
Roll call: All ayes
Adjournment
Motion by Carlson, second by Peterson to adjourn
All ayes
Anne Student, Cou-nci~-Secretary
them~' : . 1:
Nawrocki, Mayor