HomeMy WebLinkAboutMarch 31, 2008 Work Session ~~~yor
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OLUMBIA
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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