HomeMy WebLinkAboutMay 28, 1985OFFICIAL PROCEEDINGS
COLUMBI,A HEIGHTS CtTY COUNCIL
REGULAR COUNCIL MEETING
28, 1985
The meeting was called to order by Mayor Nawrocki at 7:30 P.M..
I. Roll Call
Movland, Petkoff, Carlson, Peterson, Nawrocki - present
2. Invocation
The Invocation was offered by Father Sochacki of Immaculate Conception Church.
3. Minutes of Previous Meetings
Motion by Petkoff, second by Hovland to approve the minutes of the Regular City Council
Meeting of May 13th, and the Continued Board of Review Meeting of May 2Otb as presented
in writing and that the reading be dispensed with. There was some discussion regarding
an item in the Board of Review minutes and the City Manager stated he will discuss with
the Council the format used for input on the Assessing Department computer. Roll call:
All ayes
4. Oral Petitions
There were no oral petitions at this time.
Licenses
Motion by Petkoff, second by Hovland to approve the licenses as listed upon payment of
proper fees and that the fees be waived for the Lions Club on-.sale beer license and for
the itinerant food concession licenses for the V..F.W. Post #230 and for the Columbia
ghts Recreation Department. The Mayor acknowledged the receipt of a letter from
Police Department stating no objection to the .issuance of a taxicab vehicle lice-
nse to Clifford M. Sanders, Jr.. Roll call: All ayes
5. Ordinances and Resolutions
a. Second Reading of Ordinance No. 1104 --Issuance of Industrial Development Revenue
Bonds for Columbia Park Medical Clinic
The anticipated need for construction of this facility is $7,000,000 in Industrial Deve-
)opement Revenue Bonds.
The developer of this facility reviewed the site plan with the Council. Mayor Nawrocki
expressed concern with the ]ocation of the parking ramp. He felt that the residents in
the immediate area should be given consideration since their homes will be very close
to the parking ramp. He inquired i'f the consideration could be given to moving the ramp
closer to 40th Avenue. Counciimember Carlson suggested that those business persons who
have paid assessments for the parking lot also be notified of an upcoming public hearing
regarding this project. The owner of the Mercury Tool, whose business will be moved
for construction of this building, felt his loss of business should be considered as
he will not be able to conduct any business while he is relocating. The HRA Development
Specialist advised him that the Uniform Relocation ~ct does not provide for "down time"
only acquisition and relocation costs.
Motion by Petkoff, second by Paterson to waive the reading of the ordinance there being
ample copies available to the public. Roll call: All ayes
ORDINANCE NO. 1104
~mm),NIG AN ORDINANCE GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT
AUTHORITY FOR APPROVAL, AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS
Regb'lar Council Meeting
May 28, 1985
page 2
City of Columbia Heights does ordain:
i. 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 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 redevelop-
ment through the use of local, state and federal funds derived from taxation, with
the attendant necessity of relocating displaced persons and of duplicating public
services in other areas.
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 are developed to use the available resources of the City of Col-
umbia 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 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 facilities for the remaining popu-
lation.
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.
1.4 A representative of Columbia Park Properties, a Minnesota general partnership
(the "Developer"), has advised this City Council that it desires to construct an
approximately 36,000 square foot office facility (hereinafter referred to as the
"Project"). The Project will be located at the northwest corner of the intersection
of 40th Street and Central Avenue N.E. in the City.
1.5 The existence of the Project in the City will contribute to more intensive deve-
lopment 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, including economically disadvantaged or unemployed indi-
viduals.
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, and therefore,
the City finds that but for the aid of municipal financing, and its resulting lower
borrowing cost, the. Project would not be economlcally feasible.
1.7 This Council has been advised by a representative of the Developer that on the
basis of information submitted to them and their discussions with representives of
(~ea financial institutions and potentia) buyers of tax-exempt bonds, industrial
velopment revenue bonds of the City could be issued and sold upon favorable rates
and terms to finance the Project.
Regb'lar Council Meeting
May 28, 1985
page 3
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 properties
used and useful in connection with a revenue producing enterprise, such as that of
the Developer, and the issuance of such bonds by the City would be a substantial
inducement to the Developer to construct its facility in the City; and
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 Project of the Developer in an amount
presently estimated not to exceed $7,000,000 and to use the City's allocation of
authority granted pursuant to Minnesota Statutes, Section 474.18 to issue private
activity bonds for the Bonds.
3. The Project is hereby given preliminary approval by the City and the issuance of
the revenue bonds for such purpose and in such a amount is preliminarily approved,
subject to approval of the Project by the Minnesota Department of Energy and Economic
Development, to the ability of the Issuer to obtain additional allocation of authority
to issue private actiti'vy bonds and to the mutual agreement of this body, the Deve-
loper and the i'nitial purchaser of the bonds as to the details of the bonds and pro-
visions for their payment. In all events, it is understood, however, that the bonds
of the City shall not constitute a charge, 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 pay-
able solely from the revenues received from the Project and property pledged to the
~ment thereof, and shall not constitute a debt of the City.
4. In accordance with Minnesota Statutes, Section 474.0l, Subdivision 7a, the Mayor
of the City is hereby authorized and directed to submit the proposal for the Project
to the Minnesota Department of Energy and Economic Development for approval of the
Project. The Mayor and other officers, employees and agents of the City are hereby
authorized to provide the Minnesota Department of Energy and Economic Development
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 ap-
propriate to the Project, if it is approved by the Minnesota Department of Energy
and Economic Development.
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 Bond Counsel
in the preparation of such documents.
6. In accordance with Minnesota Statutes, Section 474.01, Subdivision il, 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 econo-
mically disadvantaged or unemployed individuals. Such individuals may be identified
by such mechanisms as are available to the City., including a first source agreement
in which the Developer agrees to use a designated State employment office as a first
source for employment recruitment, referral, and placement.
Regdlar Council Meeting
May 28, 1985
page 4
rst reading:
Second reading:
Date of Passage:
April 22, 1985
May 28, 1985
May 28, 1985
Offered by: Peterson
Seconded by: Petkoff
Roll call: Petkoff, Hovland
Peterson, Nawrocki - ay~
Carlson - nay
Jo-Anne Student, Council Secretary
Bruce G. Nawrocki, Mayor
b. Resolution No. 85-26; Approving the Form of and Authorizing Execution of a Joint
Powers Agreement and Designating an Underwriter for ~ertain Revenue Bonds
Motion by Petkoff, second by Hovland to waive the reading of the resolution there being
ample copies available to the public. Roll call: All ayes
RESOLUTION NO. 85-26
APPROVING THE FORM OF AND AUTHORIZING EXECUTION OF A JOINT POWERS AGREEMENT PURSUANT
TO MINNESOTA STATUTES, SECTION 474.18 SUBD. 4, AND DESIGNATING AN UNDERWRITER FOR
CERTAIN REVENUE BONDS
Whereas, the City of Columbia Heights (the"City") by Ordinance No. ll04 has given
preliminary approval to the issuance of revenue bonds in an amount not exceeding
$7,000,000 to finance a 36,000 square foot office facility (the "Project") to be
developed by Columbia Park Properties (the '"Developer"'); and
eas, in order to issue tax-exempt revenue bonds to finance the Project, the
City must obtain an allocation to issue private activity bonds in addition to the
City's entitlement allocation of $3,385,453; and
Whereas, pursuant to Minnesota Statutes, Section 474.18, Subd. 4, an entitlement
issuer may enter into an agreement with a local issuer under which agreement the
local issuer may issue bonds pursuant to authority allocated to the entitlement
issuer.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF COLUMBIA HEIGHTS AS FOLLOWS:
l. The Joint Powers Agreement prepared pursuant to Minnesota Statutes Section 474.18,
Subd. 4, with the City of Silver Bay is hereby approved in substantially the form set
forth in Exhibit A attached hereto, and the Mayor and City Manager of the City are
authorized and directed to execute such agreement on behalf of the City, provided
however, that no part of the fee requi'red to be paid to Silver Bay under such agre-
ement shall be paid by the City, but the entire fee shall be paid by the Developer.
2. Miller & Schroeder Municipals, Inc. is authorized to act as the underwriter for
the bonds to be issued to finance the Project.
Offered by:
Seconded by:
Roll call:
Howl'and
Peterson
Hovland, Petkoff, Peterson, Nawrocki - aye
Carlson ~ nay
Bruce G. Nawrocki, Mayor
Jo-Anne Student, Council Secretary
Regular Council Meeting
May 28, 1985
page 5
Communications
a. Letter from Frank Michalski Requesting Ordinance Change
A letter was received from Frank Michalski, 4745 Fourth Street, requesting an ordinance
change which would require all dog owners to fence their yards. Mayor Nawrocki requested
the Community Service Officer talk with Mr. Michalski as his letter indicates there may
be a problem with roaming dogs in his neighborhood. It was the City Manager's observation
that if dog owners don't comply with the leash ordinance it would be unlikely they
would comply with a fence ordinance.
7. Old and New Business
a. Old Business
1. Umbrella and Bus Insurance
The Insurance Commission reviewed the umbrella insurance coverage being offered by
Dale Hadtrath and recommended an increase in the City's basic coverage and the pur-
chase of a $1,O00,O00 umbrella policy. The Commission is pursuing coverage for the
bus which is leased from the MTC and will make a recommendation. Alternatives for
the bus and its coverage were discussed .in the event no coverage is available in the
amounts required by the MTC lease agreement. A special meeting of the City Council
was scheduled for Monday, June 3rd to discuss this matter further.
2. Invest Castings
Qcomplaint had been received regarding black smoke coming from the Invest Castings
cility. The Treasurer of the firm acknowledged there had been a problem and advised
the Council a contractor had installed a hood and the problem is solved. The City
Manager stated it had been understood there would be no business operation until a
site plan and requests for variances had been submitted, reviewed and approved. At
a previous Council meeting the owners of the business had stated they wished to be
in the building to remodel and paint in preparation for operating the business when
all of the approvals were given. The City Manager stated they were operating in vio-
lation and had suggested an escrow agreement or a letter of credit as an alternative
to being shut down.
A business owner whose facility is near Invest Castings stated he felt the ordinance
which addressed the continuous use of this building did not apply in the industrial
areas of the City. The City Manager reviewed how the building had been used since
last October.
3. 1984 Audit
The Mayor inquired When the 1984 Audit would be completed and ready for distribution.
He was advised it would be soon.
4. Central Valu Mall - Freestanding Sign
The City Manager was requested to inquire as to why the City's liquor store was not
included on the freestanding slgn located on the east side of the parking lot at the
Central Valu Mall.
b. New Business
Request to Erect Tent in Parking Lot at Central Valu Center
WLOL FM is again requesting permission to erect a tent in the Central Valu Center
parking lot.
Motion by Petkoff, second by Peterson to authorize erection of a 20' x 40' tent in
Regular Council Meeting
May 28, 1985
page 6
Qhe parking lot of Central Valu Center on July 13th and 14th; and furthermore, that
he tent be removed by July 17th and there is to be a $100 refundable deposit. Roll
call: All ayes
2. Cutting and Removing of Weeds and Grass
The individual who had removed weeds and grass for the City last year is not interested
in providing this service this year. The City Manager had requested the Public Works
Director to retain seasonal employees for these duties this year. The City Manager
recommended our city draft an ordinance similar to that of Fridley to address weeds
and grass that need cutting. The City Attorney advised the Council that the ordinance
we have would allow for city employees to remove any large objects such as rocks, tires,
or concrete to cut grass or weeds. Most situations that would require the weeds and
grass be cut are vacant lots. The Council requested that the notice sent to owners of
t~ese properties also include an estimate of the costs for removing materials in pre-
paration for cutting.
3. Billing Charges for Weed and Grass Control
Motion by Peterson, second by Petkoff that the 1985 fee for cutting unlawful weeds
and grasses shall be $85.00 per hour for performance using a diesel tractor with
brush cutter and $45.00 per hour for performance using rotary lawnmowers and power
trimmers and, furthermore, that if the property has a history of being maintained by
the City for a period of time, it be improved for easier and more convenient mainte-
nance in the future. Roll call: Hovland, Petkoff, Peterson - aye Nawrocki - nay
Carlson - no vote cast
:00 P.M. Recess
:30 P.M. Reconvene
4. Employee Assistance Program - Contract Renewal
The City Manager reviewed the frequency with which this program has been utilized by
employees and the proposed rates for the new contract. He was requested to seek
information on other programs of this nature and present his findings at the special
Council meeting on June 3rd.
5. Anoka County Lease Agreement for Rental of City Hall Space
The City Manager explained that Anoka County prefers to have all of their leases uniform
so the County is requesting its lease for court services space use the consumer price
index as a factor when considering the lease costs. The leasing fees will be based on
the consumer price index, plus square footage and plus percentage of use of the space.
The rate for the contract which expired in February was $9.00 ~er square foot. This
rate will continue for the first year of the three year contract with the remaining
two years being based on the consumer price in~ex..
Motion by Peterson, second by Petkoff to authorize the Mayor and City Manager to enter
into a lease agreement with Anoka County for court services space. Roll call: All
ayes
6. Authorization for Christmas Party & Summer Picnic Activities
Motion by Petkoff, second by Carlson to authorize the City Manager to proceed with
undertaking activities for the Summer Pi'cnic and Employee Christmas Party; and further-
more, that expenditures not exceed a tota.1 of $],750.
Mayor Nawrocki felt it would be preferable to see a budget for both affairs before any
nds authorized. Councilmember chose withdraw his second. He advised
are
to
was
'~econd can be wi'thdrawn only i'f the maker of the motion withdraws the motion. Council-
member Petkoff chose not to withdraw her motion.as she felt the committees for these
two functions needed authorization now.
Regu.lar Council Meeting
May 28, 1985
page 7
.bstitute motion by Nawrocki, second by Carlson to authorize $250 for the summer
.~cnic and that the Christmas party committee will present its proposed expenditures
to the Council. Roll call: All ayes
7. Informal Quotations on Banquet Tables and Folding Chairs
Motion by Hovland, second by Petkoff to authorize the purchase of 15 banquet tables
from Institutional Sales, Inc. of St. Paul at a price of $79.00 each based upon low
quotation, and the Mayor and City Manager be authorized to enter into an agreement
for same. Roll call: All ayes
Motion by Petkoff, second by Hovland to authorize the purchase of 150 folding chairs
from Superior Products Mfg. Co. of St. Paul at a price of $6.95 each based upon low
quotation and that the Mayor and City Manager be authorized to enter into an agre-
ement for same. Roll call: All ayes
8. Schools and Conferences
Motion by Carlson, second by Hovland to authorize the attendance of Tom Madlgan
at the Engineer as Manager Conference to be held July 15-16, 1985, at the Earle
Brown Center; and furthermore, to reimburse related expenses. Roll call: All ayes
9. Labor Negotiations with Local 320
The City Attorney advised this matter should be discussed at an Executive Session
following the Council meeting.
lO. Bids Received - 1985 Alley Improvement Projects
e City Engineer advised the Council that only one bid had been received for the
y improvement projects. He had contacted those contractors ~ had been expected
to bid and gave the reasons for some of them not bidding at this time. The City
Engineer recommended the construction period for the alley improvements be extended
to October and bids be let again right away.
Motion by Hovland, second by Petkoff to reject the bid received for projects #8102,
#8301 and #8411. Roll call: All ayes
Motion by Peterson, second by Movland to authorize the City Manager to readvertise
for projects #8102, #8301 and #8411. Roll call~ All ayes
Il. Approved Records Retention Schedule
The Council received copies of the approved records retention schedule from the State
of Minnesota. It was noted by the City Manager that some changes and modifications
had been made. He noted that the staff will expunge records to comply with the
retention schedule. Mayor Nawrocki requested before the expunging is done this item
be a matter for discussion at a Counci'l work session.
12. Junk Materials at 846 and 848 40th Avenue
Mayor Nawrocki inquired as to the status of this item. The City Manager's Administrative
Assistant advised the Council she has been in contact with the owner of the company at
this address as well as with the City's contract rubbish hauler. She will be following
up on this matter. There also was some question regarding the materials at 838 40th
Avenue.
13. Fence Construction
iuncilmember Carlson advised the staff that the fence located at 1125 5Oth Avenue
ill has timbers against the garage and requested this matter be checked out.
Regular Council Meeting
May 28, 1985
page 8
4 Complaint Regarding Yard at 514 Summit Street
City Attorney apprised the Council as to the situation at 514 Summit Street and
the notice written by the Fire Inspector. Presently, the Inspector is waiting for
compliance.
8. Reports
a. Report of the City Manager
The City Manager's report was submitted in written form and the following items were
discussed:
1. ICC Gambling License Application: Motion by Petkoff, second by Carlson that the
City Counci) has no objection to the Class B Gambling License application sub-
mitted by Immaculate Conception Church to the Minnesota Charitable Gambling
Control Board. Roll call: All ayes
2. Promotion From ~cting Property Appraiser to Property Appraiser: The City Manager
advised the Council he has promoted Carrol McCain to the position of Property
Appraiser effective March 19,1985 at the hourly rate of $10. O8.
3. Joint Meeting of the City Council and HRA Board: This joint meeting will con-
vene immediately after the HRA public hearing on Thursday, June 6th.
4. Drainage Problem - 4832 West Upland Crest: A petition is being circulated ad-
dressing this problem.
5. Park Board Meeting: Letters have been sent to interested parties concerning
a meeting of the Park Board on June 4th to review the architect's work on
John Murzyn Hall.
6. Six Cities Water Management Organization: The City Engineer requested guidance
in the matter regarding procedural requi'rements, and taxing authority that are
being mandated by state statute for surface water runoff areas. He anticipates
there may be a conflict with this mandate particularly in the area of levying
taxes. There is a meeting scheduled for representatives from the Revenue Depart-
ment, Six Cities Board and the Anoka County Auditor's Office to discuss this
matter.
b. Report of the City Attorney
The City Attorney advised the Council that the negotiations with the City of Hilltop
regarding water needed for the project on 45th Avenue have ceased.
9. Payment of Bills
Motion by Carlson, second by Peterson to pay the bills as listed out of proper funds.
Roll call: All ayes
lO. Appointments/R~appointments to City's Boards and Commissions
Motion by Carlson, second by Hovland to reappoint the following individuals to the
indicated boards or commissions:
Trudy Rider, Science, Technology and Energy Commission
Jon Ninnemann, Science, Technology and Energy Commission
Kathy McCollom, Human Services Commission
Tony Keenan, Human Services Commission
John Murzyn, Sr., Park Board
Dick Bennett, Cable Communications Commission