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HomeMy WebLinkAboutMarch 31, 2008 Work Session ~~~yor H C C (lure L_ !'c tersura EIGHTS OLUMBIA ITY OF ConneilmemGers ~ IZobc~rt .~. 63'illiu,n.r Brr,ce h/cnvrocki 590 40'" Avenue NE, Columbia Heights, MN 55421-3878 (763)706-3600 TDD (763) 706-3692 1'an„:rc•ra 1~;~~J„>z Visit our website at: c~ ~ -ci.cotaearahda-JaeibJt' .narz.aes Bnrce Kel.mnher~ _ _ City Manager Wu6er R. Fchsl ADMINISTRATION NOTICE OF CITY COUNCIL MEETING to be held in the CITY OF COLUMBIA HEIGHTS as, follows: Meeting of: COLUMBIA HEIGHTS CITY COUNCIL Date of Meeting: MONDAY, MARCH 31, 2008 Time of Meeting: 7:00 P.M. Location of Meeting: CONFERENCE ROOM 1 Purpose of Meeting: WORK SESSION 1. 2008 Cleaning and Lining of water mains 2. Review six city Watershed Management (WMO) Joint Powers Agreement 3. Mayor/City Council salaries 4. Public Safety Facility bond -temporary funding The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Clerk at 763-706-3611 to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) CITY COUNCIL LETTER Meeting of: 3/31/08 AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: PUBLIC WORDS CITY MANAGER BY: S~f ~~~ DATE: ITEM: RESOLUTION AUTHORIZING THE CLEANING BY: K. Hansen AND LINING OF 4300 LINEAL FEET OF WATER MAIN DATE: 3/18/08 ,~:,~~`~' UNDER THE MINNEAPOLIS 2008 PROGRAM, CITY PROJECT NO. 0803 Background: Columbia Heights has received complaints of discolored water at various locations and for many years throughout the City. City staff has determined that the rusty water is caused by encrusted iron scale deposits sloughing off the inside of the water main and into the water distribution system. To date, the problem originates only in unlined cast iron pipe, which was common prior to 1962. Although iron scale has a tendency to turn the color of the water yellow or light brown, it is not known to be a health risk by federally regulated standards. City staff has taken many samples, and continues to test the drinking water to ensure compliance with State and Federal requirements. The problem in general is called `tuberculation' and results in restricted flows. In January of 2005, Staff reported to the City Council several techniques to address this problem and iiidicated that there are likely multiple areas of the distribution system affected by tuberculation. Analysis /Conclusions: In 2005, Columbia Heights began a cleaning and lining program with 3,000 lineal feet of water main cleaned and lined under the City of Minneapolis Cleaning and Lining Program as follows: • Alley from 37`" to 39`" Avenue, between Polk and Tyler Streets, and • Jefferson Street, from 49`" to 51St Avenues In 2006, the City of Minneapolis Cleaning and Lining program completed 3,300 lineal feet of lining in Columbia Heights at the following locations: • Madison from 48`" to 515` Avenues • 48`" Avenue from Jefferson to Monroe Monroe from 48`" to 49"' Avenues • Monroe from 48`" to 49`" Avenues In 2007, the cleaning and lining program completed 3,650 lineal feet of pipe with the following segments completed: • Monroe from 49`" to 5151 Avenues • 50'/z Avenue from Monroe to Jackson Streets • 50`" Avenue from Monroe to Jackson Streets • 49 %2 Aveilue froiii Moruoe to Jackson Streets As detailed above, each year of the program has completed an additional 300 lineal feet of pipe. With the continued water quality issues resulting in higher number of complaints and calls received in 2007, staff is proposing to expand the program in 2008 and 2009 to 4,300 and 4,800 lineal feet, respectively. This annual footage will push the extent of what Public Works can accomplish in- house without outside contracting for the program. Two maps are attached which locate the call history and the recommended lining segments to address the problem areas. City staff conducted a random survey following the completion of the projects with positive comments received from the residents. Staff believes the program accomplished what was intended and eliminated the discolored water problem and restored the original diameter(s) of the existing piping system. The newly lined pipe should provide another 40 or more years or more of service. Based upon the positive results and project success of the first three years, staff conducted C-Factor testing on other known COUNCIL ACTION: CITY COUNCIL LETTER Meeting of: 3/31/08 AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: PUBLIC WORKS CITY MANAGER ITEM: RESOLUTION AUTHORIZING THF. CLEANING BY: K. Hansen AND LINING OF 4300 LINEAL FEET OF WATER MAIN DATE: 3/18/08 UNDER THE MINNEAPOLIS 2008 PROGRAM, CITY PROJECT NO. 0803 BY: DATE: Continued - 2008 Water Main Cleaning and Lining Program Page 2 problem areas of the water distribution system. C-Factor testing involves isolating water main segments, flowing water and measuring pressures and flow rate. A C-Factor is then calculated which can be used to determine the amount of tuberculation in- pipe. Another way to look at a C-Factor is it is a measurement of resistance to flow in-pipe. New pipe will have a C-Factor of 120- 125. We would have expected the C-Factors in the areas tested (based on age) to be in a range of 90-95. A general rule of thumb is values below a range of 70-75 would indicate a pipe in poor and tuberculated condition. The measured C-Factors in the 2008 proposed program area measured from 37 to 74. Based upon the C-Factor testing, staff is recommending a 2008 Cleaning and lining Program for water main in the following streets and as shown on the attached map: • Jackson Alley: 50°i to S Is` Avenues • Rainier Pass: Innsbruck Parkway to end • St. Moritz Drive: Innsbruck Parkway to end • Innsbruck Parkway: Rainier Pass to St. Moritz Drive • Innsbruck Parkway: St. Moritz Drive to Argonne Drive • Innsbruck Parkway: Argonne Drive to Pennine Pass • Pennine Pass: North Upland Crest to Innsbruck Parkway • 45`h Avenue: Main Street to 3`d Street. The process of Mechanical Cleaning and Lining involves shutting down a pipe segment, cutting open and accessing (excavating and cutting opcr~) the water main every 400 to X00 met, and pulling or pashing a mechanical cleaning device sometimes called a `pig') through the line to remove the encrustation. Depending on the severity of the interior buildup, a water line may have to be "pigged" repeatedly until the original interior diameter is restored. Since this process leaves the iron wall exposed, lining the interior pipe is necessary to prevent water contact with the iron surface allowing the tuberculation process to start all over. Minneapolis utilizes Cement mortar lining by applying lean cement through a rotating head of a specific diameter. As the lining machine moves through the pipe, it leaves a smooth trowelled finish. The new lining of the pipe provides a smooth interior wall resistant to mineral deposits and future tuberculation buildup. Next to complete pipe replacement, this is the most expensive pipe rehabilitation technique. Costs for mechanical cleaning and cement mortar lining can range from $35 to $55 per foot, depending on the pipe diameter and severity of buildup. A potential cost to the homeowner is the access and operability of the curb stop or water shut off valve at the property line. In the Jefferson area, we experienced 4-6 services per block that needed repair. Consistent with our City Code, it is the homeowner's COUNCIL ACTION: CITY COUNCIL LETTER Meeting of: 3/31/08 AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: PUBLIC WORKS CITY MANAGER ITEM: RESOLUTION AUTHORIZING THE CLEANING BY: I<. Hansen AND LINING OF 4300 LINEAL FEET OF WATER MAIN DATE: 3/18/08 UNDER THE MINNEAPOLIS 2008 PROGRAM, CITY PROJECT NO. 0803 BY: DATE: Continued - 2008 Water Main Cleaning and Lining Progra-n Page 3 responsibility for the service line from the main in the street to the house. At the direction of the City Council, repairs and replacements of water service lines are publicly bid and those prices for repairs or replacements are extended to the homeowners if they so choose. The inspection of the curb stops should be completed this spring in the proposed program area. Based upon the past 3 years program costs from the City of Minneapolis, staff is proposing a 2008 Program cost of $142,500, consistent with the amount established in the 2008 Water Construction Fund budget. RECOMMENDED MOTION: Move to waive the reading of Resolution 2008-63, there being ample copies available for the public. RECOMMENDED MOTION: Move to adopt Resolution 2008-63 which accepts the Feasibility Report for the 2008 Water Main Cleaning and. Lining Program and orders the Public Improvement for water main cleaning and lining of pipe totaling 4,300 lineal feet, under the City of Minneapolis water main cleaning and lining program for 2008. Attachments: 2008 Program area map Area Complaints map Resolution COUNCIL ACTION: CITY COUNCIL LETTER Meeting of: 3/31/08 AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: PUBLIC WORKS CITY MANAGER ITEM: CONTINUATION and SUPPORT OF THE SIX BY: K. Hansen CITIES WATERSHED MANAGEMENT ORGANIZATION DATE: 3/27/08 d,~ _ ,,fir BY: ~ ~"~ DATE: Background: The Six Cities Watershed Management Organization was formed on December 30, 1983 through a Joint Powers Agreement under the authority conferred to the member parties in 1982 through the Metropolitan Surface Water Management Act. The cities are comprised of Blaine, Columbia Heights, Coon Rapids, Fridley, Hilltop and Spring Lake Park. Approximately 90 percent of the land area of Columbia Heights is in the Six Cities WMO. The WMO Plan was last updated and approved by all member cities in 1998. Analysis /Conclusions: The WMO will be updating our Six Cities Watershed Management Plan in 2008 which when completed will require an amended Joint Powers Agreement. The Plan provides that the Six Cities WMO has historically left planning and capital improvements up to the individual member cities. The WMO instead has focused on water quality initiatives and promoting educational resources and opportunities and storm water issues involving more than one member city. The Board of Soil and Water Resources (BWSR) has recently been contacting WMO organizations with 2007 legislative changes. These changes are focused on monitoring the performance and activities of local water management entities. An appendix sheet is attached that summarizes the legislative directive to BWSR for WMO's. At the January 17`x, 2008 regular WMO meeting, the Assistant Director of BWSR attended the meeting to review the legislative requirements and particular issues with the Six Cities WMO. BWSR requested that the member cities examine the current WMO structure and desire to operate under a WMO governance format. The alternative would be to abandon the JPA which formed the WMO and merge with a Watershed District, such as the Rice Creek Watershed District (RCWD). Watershed Districts have their own taxing authority, surface water management rules and capital improvements, which in the RCWD are much more costly and onerous. Under a WMO format, the individual cities administer surface water management through their local surface water management plans and are individually responsible for storm water capital improvements. Surface water management has changed significantly since the WMO was established 25 years ago. Rules have become much more complex, involved and are constantly changing. An original intent of the Wl~VIO was to keep the storm water planning, including capital expenditures within each member city. RECOMMENDED MOTION: Move to affirm the City's continuation and support for the JPA in the Six Cities Water Management Organization. COUNCIL ACTION: Performance Review and Assistance Program 1ralATERSHEG tA,4f~JGEfxiENT C)RGrsPJi?ATIC)~.I PERF~Rfkt,Ett~l~E STAI+fE~ARD Perf. Area Performance Standard Method evel Rating II a, w. -a c v c ~ c m * Target (high performance standard ~ v ^ Basic practice or Statutory requirement ~, ~ o ~ ~ ~ ~ , ' Q Quantitative standard ~ d c> F- m tY <C =. on-time ^ (Activity Report: annual, ---- ---- - - __ - I X - -- X--- YJN _ _ - ~ ---- - ,Activity report: content MR 8410 compliant (ncl- X ® self-assessment of progress) _ _ ~ Y/IV jConsultant RFP: s3 yrs for legal, engineering, I X ^ _ _ __ __ _ __~accounting_ __ _____ ___ - Y!N _ ;Financial report & audit completed within last 12 X ® months i Y/N Personnel policies: written and reviewedtupdafed I X ® _- Iwrthin last 5 years _-- __-_ _ _-- __-_-_ __ ---- _YJN_ - ~ o (Data practices policy: reviewedfupdated within last i X ^ 'S years- --- --- - - _ YJN Water appropriation permit program e~cists X -- ® '(Hennepin and Ramsey only) Y/N '~ ______ __ _ _ :Joint Powers Bd.: tabulation of current members X ~, ® :and terms exists YJN Staff training: cant ed and orienta#ion record for '+` ';each staff member YJN Board training: cant ed and orientation record for X * , each board member YJN __ __ __-- ---- -------- -___------ -- .. . indexed Public ditch records: modernized usable .__.-- -----_____- ___._~. ~ I , --- -,(where_applicable)_-_____ _ _-- X Y/N By-laws or operational guidelines e~ ist and current X Y/N {~ ~Expenddure trend previous years X number ~ ^ :'Management Plarr uup_to_date X ! YJN ~ ________ ~+c ' Capital Improvement Plan revieaved 2J3 years _f_~X --- Y/N - 'R ___ _ , 4 ';Local plan approvals by WMO_ _ _ _ _ _ __ __ _ ---- - - ___~ X - ------ number - n. fc ;Management Ian: being_substantia(ly executed p --- .. ___ ___-- X -- _ .._ _ - ------ Y/N ----- ~ o _-- - ._ _ # iCoaoerative aroiectsltasks done with partners - r ! X YJN i ~ Q ;Water qualify trend completed for key water bodies data x U jWatershed yield trends_monitore_d_J re orted_ _ __ ---p __ _ ! ----_ --- data --- W ~ # of prajectslprogram costs (°!° of total X ex enditures number ^ ;Stakeholder survey: vdithin last 5 yrs X Y/N ^ ,Communication piece: sent within last 12 months X ! __ YJN ~ " ~ Website: contains mbrs, minutes, updated after X ®_ each board meeting-_._____ ___.___ . _. _.- _----__-. _____ Y/N ~ ~ n "3 ~ _ ~ _ Advisory committee: # mtgs within last 12 rnonths ~ X number ~ o ~ Public education program seminars. tours ---- ----- - ---- - - , X _.-_ _._ - ----- o ~ ~ Coordination with County J City J Twp. by JP Board X ~ ~ * , members or staff .Advisory committee makes recommendations on X * 'projects, issues, reports Appendix F COLUMBIA HEIGHTS -CITY COUNCIL LETTER Work Session Meeting of: March 31, 2008 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY MANAGER' S NO: Administration APPROVAL ITEM: Mayor/City Council BY: Walt Fehst / BY: ~// ~~~rc~ ~ Salaries DATE: March 25, 2008 DATE: NO: Background: Per City Charter, Chapter 2, Sectionl3, Salaries: The mayor and council members shall by ordinance fix their own salaries in such amount as they deem reasonable. No change in salary shall take effect until after the next succeeding municipal election. The City of Columbia Heights Mayor and City Councilmember's salaries have not been increased in the last twenty years. In 1994, in fact, the Mayor's salary was reduced to the 1982 level. Consideration is requested to adjust these salaries. With regards to the Mayor's position the duties of the Mayor's office in 2008 are at least comparable to the position's responsibilities prior to 1994. An adjustment back to that level should be considered. Also, since the Council has been locked in at the same rate for the past twenty years, you may want to consider some increase. Reconrti~eiidcd i~lotion: Move to approve, following the 2008 municipal election, a salary increase for the City of Columbia Heights Mayor to $ per year. Move to approve, following the 2008 municipal election, a salary increase for the City of Columbia Heights Council members to $ per year. COUNCIL ACTION: HISTORY OF MAYOR/CITY COUNCIL SALARIES ORDINANCE NO. EF`FECTIi~E DATE MAYOR NEW MONTHLY/ YEARLY RATE COIJNCILMEMBER NEW MONTHLY/ YEARLY RATE 282 8-23-51 $50/mo = $600/yr $35/mo = $420/yr 716 1-1-70 $400/mo = $4,800/yr $250/mo = $3,000/yr 813 1-1-74 $600/mo = $7,200/yr $350/mo = $4,200/yr 980 1-1-82 $750/mo = $9,000/yr $450/rno = $5,400/yr. 980 1-1-83 $850/mo = $10,200/yr $500/mo = $6,000/yr 1155 1-1-88 $1,000/mo=$12,000/yr $575/mo = $6,900/yr 1155 1-1-89 $1,150/mo = $13,800/yr $650/mo = $7,800/yr 1268 1-1-94 $750/mo = $9,000lyr $650/mo = $7,800/yr 3-7-08 ~~a~/~ 3 page 203 ORDINANCE #813 - FIXING THE SALARIES OF THE MAYOR AND CITY COUNCILMEN. A second reading was held on Ordinance #813 - Fixing the Salaries of the Council and Mayor of the City of Columbia Heights. Effective January 1, t974. Offered by Land, seconded by Heintz. Kenny Hentges reported that be had taken a survey to find out the salaries of Mayors and Councilmen from other Cities. He said Columbia Heights is the highest paid in the county of Anoka, and he feels that the Mayor is being overpaid, over and above the councilmen because they go to more meetings than the Mayor. He felt that if a man is concerned about his community he will work for nothing. He also felt they were wrong in making this salary increase. Mayor Nawrocki said that there has been no adjustment of council salaries in Columbia Heights for four years and since salary adjustments can only take effect after elections, there could be no further consideration for adjustments for at least two more years. Mr. Nawrocki said in every election, his pledge has been that he would be an active Mayor, wort;ing for the best interests of our community, he stated that he has put in many hours, far more than one would normally expect the Mayor of our community to put in. His efforts have been spent in three basic areas, listening to the concerns of the people and seeking answers to their questions, keeping informed on the day to day operation of our city governmental operation, and looking after the city's interests in the area of metropoli- tan affairs. He feels that one salary adjustment in a six year period is certainly not out of line. Roll Call -All Ayes. Ordinance #813 adopted. RESOLUTION #73-62 ESTABLISHING AN UNAPPROPRIATED SURPLUS REVENUE ACCOUNT. Offered by Land, seconded by Heintz. ESTABLISHING AN UNAPPROPRIATED SURPLUS REVENUE ACCOUNT BE IT HEREBY RESOLVED by .the City Council of the City of Columbia Heights that: WHEREAS: the post audit of 1972 indicated a surplus in the General Fund, and WHEREAS: no specific revenue account is established for the use of such funds NOW, THEREFORE, be it resolved that the City Treasurer be, and he is hereby, authorized and directed to establish an "unappropriate surplus" Revenue Account Number 101 - 397 BE IT FURTHER RESOLVED that allocation from said surplus account shall be made through the General Fund unallocated general expense fund by specific council action on same. Passed this 24th day of September, 1973 Roll Call - All Ayes. Adopted. REQUEST ON EARMARKING PROCEEDS FROM PROPERTY SALE TO H.R.A. The Housing Authority will be purchasing parcels of real property from the City of Columbia Heights for the site of the elderly high-rise. This acquisition price is $18,165.00. CITY OF COLUMBIA HEIGHTS DATE: MARCH 27, 2008 TO: WALT FEHST ~',; CITY MANAGER FROM: WILLIAM ELRITE FINANCE DIRECTOR RE: PUBLIC SAFETY BUILDING CONSTRUCTION There are a few things that should be taken care of in relationship to the City Council's authorization to proceed with the construction of a public safety building. The first item is to have the City Council formally establish a construction fund and either transfer or loan money to that fund to cover initial expenses that will be incurred prior to receiving revenue from the bond sale. The second issue that needs attention at some point pertains to the funds that the EDA borrowed from the City to purchase the NEI .property, with the intent that the loan would be repaid when the property was sold or developed. Resolution 2004-04, item 6, states that if NEI property is used for any public facility, the City and Authority will mutually determine haw and whether the loan is to be repaid. In discussing this with Steve Bubul it appears that the bond can include funds for the City to purchase the NEI property from the EDA. However, the funds the EDA receives from the City for the purchase of the property cannot be used to repay the initial loan from the City. A potential solution for the above maybe to have the EDA use funds from another source, such as the newly created housing maintenance program, to repay the City for the NEI loan of $600,000. The second step of this would be to use $600,000 in bond proceeds to purchase the NEI land from the EDA. The $600,000 could then be used by the EDA for housing or other programs. The net result of this would be that the loan would be repaid and the EDA would have an equivalent amount of money to use for programs. Another option would be to have the EDA 'r7oid these funds until construction is complete to cover any potential cost overruns. It is my recommendation that this be discussed at the next City Council work session and then put on the next regular council meeting to, at a minimum, establish a construction fund and transfer or loan money to that fund. WE:sms oso32~~cM "Resolution No "Resolution No. Attachments: 2004-04.pdf' 2007-214pdf.PDF" E-mail from Steve Bubul Message Page 1 of 2 Bill Elrite - ItE: Pubic Safety Bldg Land Purchase From: "Bubul, Stephen J." <sbubul@Kennedy-Graven.com> To: "Bill Elrite" <Bill.Elrite@ci.columbia-heights.mn.us> E3ate: 3/19/2008 3:01:09 PM Subject: RE: Pubic Safety Bldg Land Purchase CC: "Joseph Kloiber" <Joseph.Klaiber@ci.columbia-heights.mn.us>, "Walt Fehst" <Walt.Fehst@ci.columbia-heights.mn.us>, "Mark Ruff° <MRuff@ehlers-inc.com>, "Pratt, Andrew 7." <APratt@Kennedy-Graven.com> Unfortunately, I don't believe there's a way to use tax-exempt bond proceeds to reimburse the cost of the NEI site, for these reasons: 1. The EDA did pass a tax increment interfund loan resolution (your attachment), but that just stated the expectation to repay the City for the land cost with tax increment; it was not a statement of intent to reimburse with bond proceeds (because that was not actually the intent at the time). So far as we know, there is no statement of intent to reimburse from bonds. 2. Even if the City had expressed its intent to reimburse from bonds, the period for reimbursement has now passed. Under Section 1.150-2 of the Treasury Regulations, an allocation of tax-exempt bond proceeds to reimburse a prior expenditure must be made within 3 years after the date of the original expenditure. The original expenditure here (closing on the NEI acquisition) was in early 2004, so the allocation period has expired. 3. An alternative theory is that the City could buy the NEI site from the EDA now (even though the City loaned the EDA money to buy it in the first place). In other words, rather than reimburse an old acquisition cost, this is anew acquisition cost. Maybe that's possible, but then the sale proceeds would be controlled by the EDA--the EDA could not turn those funds back to the City to repay the loan, because that would effectively constitute reimbursement of the origina6 expenditure (which is now time-barred). So, this alternative would serve no purpose other than raising additional funds for the EDA, which I assume is not what the City wants to do. I understand from Walt that the $11,500,000 bond amount does notinclude land or demolition costs, so the band was not structured with the intent of reimbursing these casts. While it would be helpful to have the land as a "cushion" in case the bids came in low, I don't think there's a way to accomplish that (short of issuing some of the bonds on a taxable basis, which is probably unwise). I'll forward the draft ordinance for both the public safety bonds and the HIA bonds shortly, but let me know if you have further questions. -----Original Message----- From: Bill Elrite [mailto:Bill.Elrite@ci.columbia-heights.mn.us] Sent: Wednesday, March 19, 2008 11:57 AM To: Bubul, Stephen J. Cc: Joseph Kloiber; Walt Fehst; Mark Ruff Subject: Pubic Safety Bldg Land Purchase H i Steve Attached is the resolution for the loan to the EDA to purchase the NEI Property. Section 6 covers the future use for a public facility and appears to keep the option open to make a decision in the future. The future is here and we would like the City to purchase the land from the EDA with bond proceeds to build a public safety building. file://C:\Doeuments and Settings\CCH-User.C1015.000\Local Settings\Temp\GVd}00002.... 3/27/2008 RF.CI'ti_:TiTi(1N 2.tttld~id CITY OF COLUMBIA HEIGHTS RESOLUTION APPROVING AND SPECIFYING TES OF INTER-FUND LOAN FOR NEI PROPERTY RECI'I'A-LS A. The City of Columbia Heights. ("City"} and its Economic Development Authority ("Authority's have undertaken a program to promote the development and redevelopment of land which is underutilized within the City, and in this connection the Authority adm>ziisters the Redevelopment Project No. 1 {"Project"} pursuant to Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.090 to 469.1081 (the "Act"}. B. Pursuant to the Act, the Authority is authorized to acquire real property far development and redevelopment by private enterprise or public use. C. The Authority proposes to acquire certain property in the Project located at 825 41~ Avenue NE, known as the `m1EI Property:" . D. The Authority and City may establish a tax increment financing district (`"TIF District"} under Minnesota Statutes, Sections 469.174 to 469.176 (the `~ Act"} that includes the NEI Property in order to facilitate development of that property; or the Authority and City may develop the property for various public uses. E. Under Section 469.178, Subdivision 7 of the.'T1F Act,. the City is authorized to advance or loan money from any fund from which such advances maybe legally made in order to finance expenditures that are eligible to be paid with tax increments under the'TIF Act. F. The City has deterniined that it is in the best interests of the City to loan funds to the EDA in order to acquire the NEI Property, which Loan may be reapaid from tax increments or other sources, all as further described in this resolution. NOW, THEREFORE, BE IT RESOLVED by the .City Council of the City of Columbia I~e!ghts follows: 1. The City authorizes a loan to the Authority in the maximum amount of $600,000 (the "Loan"}, to be drawn from Bond 420 -Capital Improvement Development Fund and Fund 390 - Four Cities Single Family Mortgage Revenue Bonds, which are funds available tc> the City for such purposes. Such amount will be made available to the Authority at or before the closing on acquisition of the NEI Property by the Authority. 2. The outstanding principal balance of the Loan. bears interest at the rate of 4.0 percent per annum. Interest accrues from the date of disbursement from the identified funds iri order to acquire the NEI Property. 3. The Loan is payable from tax increments generated from a TIF District to be created (if any), from any other tax increments legally available far such purposes, from proceeds of the sate of the NEI Property (if any), and from any other revenues available to the Authority. Principal and interest ("Payments") shall be made at the times any: revenue sources are available to make installment payments. The outstanding balance of principal and interest is due on the later of 15 years after the date of the first disbursement, ~or the date of last receipt of tax increment from the TIF District (if created). Payments will be credited to the respective fund from which the Loan was drawn. All payments shall be applied first to accrued interest, and then to unpaid principal of the Loan. 4. The principal earn and all accrued interest payable under the Loan are pre-payable in whole or in part at any time by the Authority without premium or penalty. 5. To the extent the Loan is paid with tax increment, the Loan is evidence of an interfiand loan in accordance with Minnesota Statutes, Section 469.178, subd. 7 and is a limited obligation payable solely from the revenues pledged to the payment hereof under this resolution. This Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated tc> pay the principal of or interest an this Loan or other costs incident hereto except out of the pledged revenues, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the. payment of the principal of or interest on the Loan or other costs incident hereto. 6. If the NEI Property acq ' with proceeds of the Loan is used far a purpose that is a prohibited expenditure of tax increment under the TIF Act (including without limitation a building to be used primarily for conducting the business of the. City, a public or private facility used far social or recreational purposes, ar a public facility used for conference purposes}, then the Authority may not make any payments on the Loan from tax increments. If the NEI Properly is used for any public facility, the City and Authority will mutually determine how and whether the Loan is to be repaid. 7. The City may amend the teens of this Loan at any time by resolution of the City Council, including a determination to forgive the outstanding principal amount and accnzed interest to the extent permissible under law. 8. The City Council authorizes and directs staff to take all actions and execute any collateral documents necessary to c out the intent of this resolution Passed this 26`~ day of January 2Q04 Offered by: Ericson Seconded by: Kelzenberg Roll call: Ayes: Wyckoff, Williams, Nawmcki, Ericson, Kelzenberg Attest: atricia Muscovitz, CMC Deputy City Clerk/Council Secretary 2 UT, C(lT YTTTlInr N(l ~nn~_?.In RESOLUTION RECLASSIFYING AND DESIGNATING FUND BALANCES FOR THE ECONOMIC DEVELOPMENT AUTHORITY'S HOUSING MAINTENANCE PROGRAM WHEREAS, on August 28, 200'7 the Columbia Heights Economic Development Authority approved a 10-year Housing Maintenance Program; and WHEREAS, the purpose of the Housing Maintenance Program is to maintain and improve the housing stock, tax base and improve the livability of the City's neighborhoods; and WHEREAS, the City of Columbia Heights has accumulated fund balances in the Business Revolving Loan Fund, the Rental Housing Fund, the General Fund, the Special Project Fund and the Sheffield Development Fund for the purpose of funding future expenditures; and WHEREAS, the City Council has determined that there is a need for a Housing Maintenance Program in Columbia Heights; and WHEREAS, it is the intent of the City Council to provide funding for a Housing Maintenance Program: NOW THEREFORE, BE IT RESOLVED that a Housing Maintenance Program Fund be established as a fund of the Columbia Heights Economic Development Authority and funds be transferred from the following funds to the Housing Maintenance Fund 207 effective January 1, 2008. From Funds: # Name Amount 299 Business Revolving Loan Fund $306;426 235 Rental Housing $40,688 101 General Fund $138,000 226 Special Project $103,350 410 Sheffield Development 40~ 0.000 Total $988,464 BE IT FURTHER SOLVED that funds be transferred from the following fund to the Housing Maintenance Fund 20'7 before December 31, 2008. From Fund: # Name 226 Special Project Amount $103,350 NOW THEREFORE, BE TF FURTHER RESOLVED that the fund balance in the newly established Housing Maintenance Fund be appropriated for expenses related to the Housing Maintenance Program. Passed this 26`h day of November 2007 Offered By: Diehm Second By: Kelzenberg Roll Call: Ayes: Peterson, Williams, Diehm, Kelzenberg Nawrocki L. Attest: , atricia Muscovitz, City Clerk