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HomeMy WebLinkAboutJune 5, 2000OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL SPECIAL CITY COUNCIL MEETING JUNE 5, 2000 AT 8:05 PM 1. CALL TO ORDER/ROLL CALL Present: Councilmember Szurek, Councilmember Jolly, Councilmember Wyckoff, Councilmember Hunter, and Mayor Peterson 2.ADDITIONS/DELETIONS TO MEETING AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda. These may be items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) 3.ITEMS FOR CONSIDERATION A.Supersedeas Bond for Leland Stauch Case. Walt Fehst, City Manager, indicated the Leland Stauch lawsuit has been settled, and they have been paid $128,000. The only issue remaining is if we will have to pay the attorney fees. This person has been at City Hall demanding to get paid. Fehst informed him that we are filing a bond and continuing with the appeal process. The City needs to file a bond or put this money in escrow. He recommended filing a bond with the court, at a maximum cost of $6,000 or $7,000. William Elrite, Finance Director, stated the cost was originally $4,300 for the bond and $3,300 for the letter of credit. The insurance company has now indicated the cost will be lowered by $1,000. Elrite asked that the first motion by City Council include the maximum cost for the bond. MOTION by Szurek, second by Jolly to authorize the Mayor and City Manager to enter into an agreement with Arthur J. Gallagher & Co. of Minnesota, Inc. to acquire a supersedeas bond as required by the court order of May 25, 2000 in relationship to Leland Stauch’s attorney fees. At a Motion carried. cost not to exceed $4,300. All ayes. MOTION by Szurek, second by Jolly to waive the reading of Resolution 2000-49, there being Motion carried. ample copies available to the public. All ayes. . MOTION by Szurek, second by Jolly to adopt Resolution 2000-49, being a resolution designating official depositories, borrowing authority, and safe deposit access for the City of Columbia Heights, to authorize borrowing money in the name of the City of Columbia Heights. Motion carried. All ayes. MOTION by Szurek, second by Jolly to authorize the Mayor and City Manager to enter into a promissory note with Northeast State Bank for the purpose of establishing a letter of credit as Motion carried. collateral for a supersedeas bond. All ayes. 1. B.Parking ramp lease estoppel agreement for Lake State Properties. Fehst stated on short notice he received a request from Gordon Awsumb, for the city to sign an estoppel agreement for a loan closing. The new lender wants the prior agreements null and void. Generally, there has been a good working relationship involving the parking deck. They have no outstanding obligations with us. Three years ago we looked at this same agreement and it was agreed to by the City Council. Fehst tried giving a letter to the financier saying he would get Council approval, but they requested actual City Council approval. The agreement is the same, but the present financier wants the ability to have more than 30 days to correct any problems. Fehst recommended approval, as this gentleman wants to do improvements to this building. This agreement would be reviewed by Steve Bubul, Kennedy and Graven, to assure it is essentially the same. City Attorney, Hoeft’s firm has a conflict of interest in this matter. Bubul commented to Fehst on the short notice regarding this requested approval. Fehst stated this was because they are refinancing their loan. The owner plans to use the funds to do environment improvements in the building, walkway improvements, etc. Fehst stated the requirements will be the same conditions for use of the parking deck as the old agreement. Fehst stated the last refinancing was in July of 1997. MOTION by Wyckoff, second by Szurek, to authorize the Mayor and City Manager to sign an estoppel agreement for Lake State Properties, upon the approval of Steve Bubul, Kennedy and Motion carried. Graven, Chartered. All ayes. 4.ADJOURN Meeting adjourned by Mayor Peterson at 8:05 p.m. Patricia Muscovitz, Deputy City Clerk 2.