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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