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HomeMy WebLinkAboutEDA MIN 09-18-01COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OF SEPTEMBER 18, 2001 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimann at 6:28 p.m., Tuesday, September 18, 2001, in the Parkview Villa Community Room B, 965 40t~ Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Robert Ruettimann, Patricia Jindra, Marlaine Szurek, Gary Peterson, Julienne Wycko£f, Bruce Nawrocki, and Bobby Williams Commission Members Absent: Staff Present: Walt Fehst, Executive Director Randy Schumacher, Acting Community Development Director Anita Kottsick, Parkview Villa Housing Administrator Cheryl Bakken, Secretary *Ruettimann asked for a moment of silence for the families and victims of last week's terrorist attacks. CONSENT AGENDA 1) Approval of Minutes - regular meeting of August 21,2001 Move to adopt the minutes of the August 21,2001 regular meeting as presented in writing. 2) Financial Report and Payment of Bills a. Financial Statement -August, 2001 b. Payment of Bills - August, 2001 Move to approve Resolution 2001-13, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for August, 2001 and approving payment of bills for August, 2001. MOTION by Nawrocki, second by Williams, to approve Resolution 2001-13, a Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statement for August, 2001 and approving payment of bills for the month of August, 2001. All ayes. Motion Carried. PRESENTATIONS - On behalf of the Columbia Heights VF~, Nawrocki, presented Fehst with ,4merican Flags for the Award/Recognition Banquet to be held on Wednesday night, September 19~h. REPORT OF MANAGEMENT COMPANY Kottsick reported the number two elevator in the north building shut down the weekend of September 9'h. ,4 bad board on the circuit panel was faulty. New boards were ordered to replace the faulty board on elevator number 2 and the board in elevator number one, which was also in need of replacement and installed on September 11th. On 9-7-2001, the fire monitor system received another surge, which disrupted the computer system for the fire pump. A technician reprogrammed the computer on September 10~h. Kottsick has 70 of the 100 recertifications ready to transmit to HUD. A survey was sent to residents for their interest in starting a floor monitoring system. Residents were surveyed regarding this issue last year and there was not enough interest at that time. Kottsick has been busy contacting prospective tenants from the waiting list to fill several apartment openings for occupancy in November. Economic Development Authority Minutes September 18, 2001 Page 2 of 6 Kottsick will be out of the office on September 19, 20, 21 at the annual MHHA meeting. Kari Wilson will be in the office to respond to residents needs. In closing, Kottsick expressed her sincere thanks to all who helped with Parkview Villa's picnic. She has received many positive comments from residents. CITIZENS FORUM Renie SuJka, Unit 104, invited the Board to Parkview Villa's Bazaar on September 29, 2001, from 10 to 1 p.m. and asked the status of the key cards for the security system. Kottsick stated that the digging for the systems wiring will be done next week, and she is looking for completion to be approximately around October 15, 2001. ITEMS FOR CONSIDERATION. Other Resolutions. Resolution 2001-14, Board Resolution approving Calculation of Performance Funding System Operating Subsidy, Occupancy Percentage, Allowable Utilities, Drug Free Workplace, Direct Disbursement, and Certificate of Payments to Influence Federal Transactions for 2001 Schumacher stated that a Board Resolution is required approving the Calculation of Performance Funding System Operating Subsidy, Occupancy Percentage, Allowable Utilities, Drug Free Workplace, Direct Disbursement, and Certificate of Payments to Influence Federal Transactions to be submitted to HUD for compliance purposes. He explained what each of the HUD forms cover; 1) Calculation of Performance Funding System Operating Subsidy is the overall operating budget for Parkview Villa; 2) the Occupancy Percentage is a report asking the percentage of units occupied to verify Parkview meets the 97% requirement to receive government assistance; 3) Calculation of Allowable Utilities is to verify what utilities costs are for the facility; 4) Certification for a Drug-Free Workplace form requires staff to sign a document stating they will comply with state regulations for a Drug Free environment; 5) Direct Disbursement Payment Schedule clarifies the amount of funding we are eligible for; and 6) Certification of Payments to Influence Federal Transactions is a form designed to certify the proper management of funds received for the program. MOTION by Szurek, second by Peterson, to approve EDA Resolution 2001-14, being a resolution of the Columbia Heights Economic Development Authority confirming approval of the Calculation of Performance Funding System Operating Subsidy, Occupancy Percentage, Allowable Utilities, Drug Free Workplace, Direct Disbursement, and Certificate of Payments to Influence Federal Transactions for 2001; and furthermore, to direct the Executive Director to forward same to the U.S. Department of Housing and Urban Development. All ayes. Motion Carried. Bid Consideration. Approve Proposals for Air Conditioning, Boilers, and Surge Protectors Schumacher indicated staff reviewed the need for air conditioning replacement, boiler reconfiguration needs, and surge protection for Parkview Villa at the last Board meeting and received authorization to obtain quotes for these capital building needs. Staff provided quotes for all three improvements. HUD funding of contracts exceeding $2,000 requires engineering plans and specifications drawn up, a formal bidding and advertising process to be completed, and all Davis-Bacon/Prevailing Wage procedures be followed, which are extremely costly and time consuming for small projects. Therefore, staff is recommending the funds to be used for the capital needs be divided between the HUD capital fund, Economic Development Authority Minutes September 18, 2001 Page 3 of 6 Parkview North and South and approving the bids from C.O. Carlson Air Conditioning for the 10 ton Air Conditioner for $5,917, Ryan Plumbing & Heating for re-piping the boilers at $4,960, and Mid-Northern Electric for the surge protectors at $3,197. Nawrocki felt a minimum of three bids should have been obtained, not two as presented. MOTION by Peterson, second by Williams, to approve the proposal from C.O. Carlson Air Conditioning for a 10 ton Air Conditioner, Ryan Plumbing & Heating for re-piping Boilers, and Mid-Northern Electric for Surge Protection, with funding as listed above from the HUD Capital Fund, Parkview Villa North and South operating budget; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Other Business. Acquisition of 3718 Central Avenue NE. Schumacher stated that in June of 2000, the EDA Board approved the purchase of property at 3718 and 3722 Central Avenue NE with CDBG Program funds from 1998 and 1999. The owner at 3718 Central Avenue agreed on a purchase price of $ 70, 000, a purchase agreement was drafted, and a waiver of relocation benefits was signed by Ms. Heidi vonHeideman, personal representative for the estate of Madeline vonHeideman. Staff is recommending the Board make recommendation to City Council for approval of a resolution authorizing the purchase of 3 718 Central Avenue for $70, O00 from CDBG funds. Nawrocki asked for copies of the appraisals and Anoka County documentation that staff has obtained in order to purchase the property and asked what are we buying the two Central Avenue properties to develop, dindra stated this was similar to the Logacz property on Van Buren Street. Nawrocki indicated that it wasn't the same because with the Logacz property was a residential rezoning with another house to be built on it. The concern then was about the possibility of combining the Logacz lot with the one next to it on the southwest corner, which was to be torn down due to deterioration and used for some kind of development project Ruettimann indicated this is only a recommendation to City Council from the EDA to purchase the property and they will make the decision per their Comprehensive Plan as to what the property will be used for. Szurek felt that if we obtain the properties on Central, and clear the homes from the property, a developer would be very interested in that size and location of the two lots. Therefore, this will be a good investment for the City. MOTION by Jindra, second by Ruettimann, to recommend City Council authorize a resolution to purchase the property at 3718 Central Avenue for $70,000 in CDBG funds. Upon Vote: Jindra- Aye, Peterson- Aye, Nawrocki- Nay, Szurek- Aye, Williams- Aye, Wyckoff- Aye. Motion Carried. Approve Application C1998-02, CDBG Housing Rehabilitation Program Schumacher reported the Center for Energy and Environment (CEE) has prepared a Community Development Block Grant for housing rehabilitation at 4320 Monroe Street NE, in the amount of $10,473 to replace and install windows and frames, install condenser and line set for air conditioning, as well as make health and safety improvements to the property. This application needs Board approval and then it will be submitted to Anoka County. Economic Development Authority Minutes September 18, 2001 Page 4 of 6 Ruettimann asked if staff receives a list of grants that have been processed and what is CEE's explanation of why the loans are not processed. Schumacher stated staff receives a very generic listing on a monthly basis. Ruettimann then, requested staff meet or send a letter to CEE stating thr Board wants a monthly report of loans and grants received by address, date application was received, and the reason why they have not been processed yet. Staff will obtain this report and include it with the EDA packets starting in October, 2001. MOTION by Wyckoff, second by Szurek, to approve the CDBG Housing Rehabilitation Deferred Grant/Loan Application for Grant gC1998-02 in the amount of $10,473.00 for housing rehabilitation to Anderson Heating and Windows America, and the Center for Energy and Environment subject to meeting all program requirements; and furthermore, to direct staff to submit the loan application to Anoka County and to authorize all related expenses to be reimbursed from Fund 202-46350-4600/3050. All ayes. Motion Carried. Approve Beauty Salon Licensing and Agreement. Schumacher indicated that licensing of the beauty salon at Parkview Villa is required by the Department of Commerce. The EDA owns two chairs with hairdryers attached and one beauty chair that is used by Despina Hams, a beautician that comes into Parkview Villa every Thursday to provide affordable hair care services to the residents. The EDA has never charged rental fees for the use of the building space. The drafted agreement references licensing issues, cost of services, liability issues, safety, health, insurance, consultant responsibilities, and facility responsibilities, which will protect the Columbia Heights Economic Development Authorities interest in the property. This will also address any further audit concerns that may arise. The fee for licensing the salon is $65 for a three year period. The City Building Official inspected the salon and notified staff that in order to meet code requirements the waiting area chairs need to be removed from the Salon area, which has already been addressed. The City Attorney and the Public Housing Administrator have reviewed the agreement and recommend adoption at this time. MOTION by Peterson, second by Szurek, to Approve the Parkview Villa Beauty Salon Agreement between the City of Columbia Heights Economic Development Authority and Beautician, Despina Hams, and authorize staff to submit Licensing documentation to the Department of Commerce for said facility; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Jindra ask the residents of Parkview if they felt Hams charges for her services were reasonable or not. Theresa Bryzenski, Unit 406, stated she was a beautician years ago and felt Hams was charging residents too much. Kottsick stated that Hams charges $10 for a haircut, which is very reasonable as her beautician charges her $20. Nawrocld requested staff obtain a survey of other senior building Beauty Salon fees charged in the area. Ruettimann stated that after the inspection we may be required to put in better ventilation in the salon area as this was required for his daughters salon. AMENDED MOTION by Nawrocki, to table the original motion until next month when staff can obtain what the residents of other senior high rises in the area are being charged for beautician services to be compared to Parkview Villa's salon charges. Motion Failed for lack of a second. Economic Development Authority Minutes September 18, 2001 Page 5 of 6 Upon Vote of original Motion: Jindra- Aye, Peterson- Aye, Nawrocki- Nay, Szurek- Aye, Williams- Aye, Wyckoff- Aye. Motion Carried. ADMINISTRATIVE REPORTS. Budget Ouestions- Ruettimann requested Board members contact him with any questions pertaining to the Community Development Department Budget for 2002 and he would clarify the issues for them. CommuniW Development Project Status Report for the Year 2000. Schumacher touched on a few of the issues addressed in a memorandum from the former director, Ken Anderson, dated January 2, 2001 identifying projects undertaken by the Community Development Department; 1) Elevator Modernization is complete at Parkview Villa and the only issue left is the Davis Bacon wage status. The Davis Bacon paperwork was not filled out at the time the work was preformed. Staff has been working with Millar Elevator and the Elevator Advisory Group to address the issue. At this time, it is clear that the proper procedures were not followed for the project. Staff will provide a report to the Board as soon as all of the details are compiled; 2) Transition Block Redevelopment Project- staff is monitoring the progress and processing the reimbursements per the signed agreements for the project; 3) Parking Ramps- Clark Engineering will perform the necessary physical audit of the two City owned ramps and will advise their status; 4) Administrative Reimbursement from Columbia Park Medical Clinic Project Bond- a meeting was set with John Utley regarding the reimbursement of administrative costs; 5) EDA's appointment ora Resident Council member for the year 2002- staff is pursuing the issue for publication prior to the end of the year; 6) St. Timothy's Lutheran Church- T[F District certification- staff is pursuing "decertifying " this district, along with modifications to TIF District gl, the scattered Site Housing District, for a greater payback; 7) Blue Earth Environment- Davis Bacon benefit papers have been requested by the City attorney to the attorney for Blue Earth. When the paperwork is received the final payment of $5, 000 will be submitted for payment. EDA/HRA Transfer Schumacher stated the Kennedy and Graven memorandum enclosed in the packet lays out the proposed timetable for the transfer of EDA activities to the HPu4, which will be on the City Council Agenda for Monday, September 24, 2001. Report of the Executive Director Fehst indicated staff met with Shelly Eldridge, Ehlers and Associates to discuss preparing a current TIF Status Report, which will be presented to the Board sometime in the near future. Schumacher stated that Eldridge is also working with staff on the TIF scattered site revision. Committee/Other Reports. Resident Council Minutes Jindra encouraged the Board to attend Parkview's Bazaar on Saturday, September 29, 2001. No other comments we received pertaining to the minutes of the meeting. ATTACHMENTS HOUSING UPDATE Wyckoff questioned how much we will receive, and what can we use the funding for from the Metropolitan Council Performance Score. Fehst was unclear of the exact amount and uses for the funds, and directed staff to contact Red Nelson at Met Council to obtain this information for the Board. Economic Development Authority Minutes September 18, 2001 Page 6 of 6 Other Business Williams asked when will the City know if the taxes and maximum levy will possibly be finalized for 2002. Ruettimann indicated that he has contacted Bill Elrite, Finance Director for the City on that subject and he wasn't sure when we would hear about adjustments to the City budgets and levy. Therefore, Ruettimann suggested using last years levies and this years maximum taxable amounts to base the percentage for proposed 2002 Budgets. Nawrocki indicated he proposed a three and one half percent increase for next years Budget. Williams asked if Ruettimann is looking for more money for development of the City. Ruettimann stated he would like to present a G.O. Bond (General Obligation Bond) issue to the City Council for major redevelopment funds on Columbia Heights. In order to have any significant impact on the Community, he felt a $15 million dollar issue would be needed. Nawrocki indicated that in the past, the City has shyed away from G.O. Bonds due to two things; 1) with the bonds you have to pay them back with interest which doubles the cost of the loan; and 2) the City wants to maintain a history of good credit. MEETINGS The next EDA meeting is scheduled for 6:30 p.m., Tuesday, October 16, 2001. ADJOURNMENT The meeting was adjourned by President, Ruettimann at 8:14 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:\EDAminutes2001\9-18-2001