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HomeMy WebLinkAboutFebruary 9, 2009 RegularCITY OF COLUMBIA HEIGHTS Mavor Garv L. Peterson 590 40"' Avenue NE, Columbia Heights, MN 55421-3878 (763}706-3600 TDD (763) 706-3692 Councilmembers VuiPourwebsiteat: wavw.el.columbia-he~hts.mn.us Robert A. N'illinms Bruce Naivrocki Tammera Diehm Bruce Ke!_enberg City Manager Welter R. Fehst The following is the agenda for the regular meeting of the City Council to be held at 7:00 p.m. on Monday, February 09, 2009 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. 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 disabled 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) 1. CALL TO ORDER/ROLL CALL/INVOCATION Invocation by Pastoral Intern Angelie Ryah-Dahn, Church of All Nations 2. PLEDGE OF ALLEGL~l~TCE 3. 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 a$er the agenda preparation deadline.) 4. PROCLAMATIONS, PRESENTATIONS, RECOGNTTION, ANNOUNCEMENTS, GUESTS 5. CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part ofthe Consent Agenda by onerhntinn, Ttern~ rer1nn~terl frnln rnncent agenda approval will he taken up as the next order of business.) A. Approve minutes of the January 26 2009 City Council meeting. p4 MOTION: Move to approve the minutes of the January 26, 2009 City Council meeting. B, Accept minutes of the Columbia Heights Boards and Commissions MOTION: Move to accept the September 23, 2008 minutes of the Economic Development p15 Authority meeting. MOTION: Move to accept the October 28, 2008 minutes of the Housing and Redevelopment pas Authority meeting. MOTION: Move to accept the December 8, 2008 minutes of the Special Economic Development Authority meeting, p33 MOTION: Move to accept the June 2, 2008 minutes ofthe Traffic Commission meeting. pas C, Establish the Local Board of Review meeting date for Monday, Apri16, 2009. pia MOTION: Move to establish the Local Board of Review meeting date for Monday, April 6, 2009, at 6:00 p.m. in the City Council Chambers. De Adopt Resolution 2009-25 beinl? a Resolution accepting the Feasibility Report for Zone 4 Allev Reconstruction and ordering the Public Improvement Hearing, Cit~Project No. 0902 p39 City CounciC Agenda Monday, February 09, 2009 Page 2 of 3 MOTION: Move to waive the reading of Resolution 2009-25, there being ample copies available for the public. MOTION: Move to adopt Resolution No. 2009-25, which accepts the Feasibility Report for Zone 4 Alley Reconstruction, City Project No. 0902, and calling for the Public Improvement Hearing beginning at 6:30 p.m. on March 2, 2009. E. Adopt Resolution 2009-23 Second Amendment to Amended and Restated Contract for Private Redevelopment- Huset Park p48 MOTION: Move to waive the reading of Resolution 2009-23, there being an ample amount of copies available to the public. MOTION: Move to adopt Resolution 2009-23, a Resolution approving a Second Amendment to Amended and Restated Contract for Private Redevelopment between the Columbia Heights Economic Development Authority, the City of Columbia Heights and Huset Park Development Corporation; and furthermore, to the authorize the Mayor and City Manager to enter into an agreement for the same. F. Approve Orders Declaring Property at 4039 5th Street a Hazardous Building ps' MOTION: Move to approve orders declaring the property at 4039 5th Street a hazardous building. G. Approve reissue of license to operate a rental units) within the City of Columbia Hei htg s for Perry Avenue Partnership, LLC located at 3923 Main Street N.E. p68 MOTION: Move to issue arental-housing license to Perry Avenue Partnership, LLC to operate the rental property located at 3923 Main Street N.E. in that the provisions of the residential maintenance code have been complied with. H. Approve Business License Applications p69 IVT(ITiQN: lVlnye to approve the items as listed on the business license agenda for February 9, 2009 as presented. I. Approve payment of the hilts. p71 MOTION: Move to approve the payment of the bills out of the proper fund as listed in the attached register covering Check Number 129045 through Check Number 129227 in the amount of $2,827,045.46. MOTION: Move to approve the Consent Agenda items. ~. PlIT)~LIC I~EARIlYGS A. Public Hearing -Cable Rates and adopt Reso ut_ion No. 2009-OS being an Order regarding the maximum permitted basic programming service rate and 2009-06 being an Order re~ardina the maximum permitted equipment and installation rates. p80 MOTION: Move to waive the reading of Resolution 2009-05, there being ample copies available to the public. MOTION: Move to adopt Resolution 2009-05, being an Order regarding the maximum permitted basic programming service rate set forth in the Federal Communications Commission Form 1240 filed by Comcast on or about March 1, 2008. City Council Agenda Monday, February 09, 2009 Page 3 of 3 MOTION: Move to waive the reading of Resolution 2009-06, there being ample copies available to the public. MOTION: Move to adopt Resolution 2009-06, being an Order regarding the maximum. permitted equipment and installation rates set forth in the Federal Communications Commission Form 1205 filed by Comcast on or about March 1, 2008. 7. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions Adopt Resolution 2009-24 being a Resolution reducing the Adopted 2009 Budget in anticipation of Local Government Aid reductions pas MOTION: Move to waive the reading of Resolution 2009-24 there being ample copies available to the public. MOTION: Move to adopt Resolution 2009-24 being a Resolution reducing the adopted 2009 budget in anticipation of local government aid reductions. B. Bid Considerations -none C. Other Business Adopt Resolution 2009-26 being a resolution to accept certain donations. MOTION: Move to waive the reading of Resolution 2009-26 there being ample copies available to the public. MOTION: Move to adopt Resolution 2009-26 being a resolution to accept certain donations by the City of Columbia Heights. (This Resolution will be available as a hand-out at the meeting). 8. ADMIlVISTRATIVE REPORTS Report of the City Manager Report of the City Attorney 9. CITIZENS FORUM At this time, citizens have an opportunity to discuss with the Council items not on the regular agenda. Citizens are requested to limit their comments to five minutes. Anyone who would like to speak shall state his/her name and address for the record. 10. COUNCIL CORNER 11. ADJOURNMENT Walter R. Fehst, City Manager WF/pvm OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING JANUARY 26, 2009 The following are the minutes for the regular meeting of the City Council held at 7:00 p.m. on Monday, January 26, 2009 in the City Council Chambers, City Hali, 590 40th Avenue N.E., Columbia Heights, MN. (Resolutions may be found at the end of this docatment). CALL TO ORDER/ROLL CALL/INVOCATION Rev. Dan Thompson, Columbia Heights Assembly of God, gave the Invocation. Present: Mayor Peterson, Councilmember Williams, Councilmember Nawrocki, Councilmember Diehm, Councilmember Kelzenberg PLEDGE OF ALLEGIANCE -recited ADDITIONS/DELETIONS TO MEETING AGENDA Mayor Peterson removed Resolution 2009-18, license revocation for 4156 St" Street, as the property has been brought into compliance. Nawrocki requested to discuss snow removal on the bridge at 49t" and Central, budget discussions, Board of Review date, and requested the agenda items for the February 2, 2009 work session. PROCLAMATIONS. PRESENTATIONS, RECOGNITION, ANNOI7NCEMEN~'Sq_GJESTS A. Charter Commission recognition -Robert Buboltz Mayor Peterson presented Mr. Buboltz with a certificate and pen/pencil set and thanked him for his service on the Charter Commission. Mr. Buboltz thanked the Mayor and Council and stated that he learned a lot being on this commission. He also stated that there are openings on this commission and indicated that it is a worthwhile endeavor. Nawrocki stated that this time of year there are Board and Commission openings and terms that are expiring. We should tell the public how to apply. On Saturday, February T" the i,ions will hold their annual Sweetheart dance at Murzyn Hall. Our Congressman Keith Ellison is holding a public meeting on January 29'" in Fridley at the Community Center. The Manager informed him that at the last meeting when discussing inadequacies, he stated an explicative that he has not heard. He apologized for that, but would not apologize for the topic discussed. CONSENT AGENDA Nawrocki requested to remove items F, G, and H. City Manager Walt Fehst took Councilmembers through the Consent Agenda items. A. Approve minutes of the January 12, 2009 City Council meeting_ Motion to approve the minutes of the January 12, 2009 City Council meeting. B, Accept minutes of the Columbia Heights Boards and Commissions Motion to accept the January 15, 2009 minutes of the Telecommunications Commission. Nawrocki stated he had a call regarding the Telecommunication Commission meeting agendas and minutes not being on the City's web site. C. Appoint Commissioners to the Economic Development Authority (EDA) and. the Housing and Redevelopment Authorit (~ HRA~ City Council. Minutes Monday, January 26, 2009 Page 2 of 1 l Motion to approve the Mayor's appointment of Williams, Nawrocki, and Peterson to the vacant HRA positions. Motion to approve the Mayor's appointment of Williams, Nawrocki, and Peterson to the vacant EDA positions. D. Approve appointment of the Mayor and Cit~ager to the Columbia Heights Volunteer Firefighters Relief Association Board of Trustees for 2009 Fehst stated that this is an annual appointment. Motion to appoint the Mayor and City Manager to the Columbia Heights Volunteer Firefighters Relief Association Board of Trustees for 2009. E. Approve transfer of funds from General Fund to Police Department Budget to reimburse overtime fund re ag rding Unique Thrift. Motion to transfer $525.60 received from Apogee Retail for Unique Thrift Stores from the General Fund to the Police Department 2008 Budget under line #1020, Police Overtime. F. Authorize purchase of three replacement Police vehicles -removed. G. Unit #19 - GMC Top Kick Single Axle Dump Truck and Attachments from the State of Minnesota Purchasing Contract -removed H. Authorize the Capital Equipment Replacement of Unit #204 Ford F-250, 4X2, 3/4 Ton Pickup Truck equipped with Power Life date from the State of Minnesota Purchasing Contract - removed I. Approval of the reissuance of the license to operate a rental unit(s) within the City of Columbia Heights at 1162-64 Cheery Lane N.E. Motion to issue arental-housing license to Katherine Crosby to operate the rental property located at 1162-64 Cheery Lane N.E. in that the provisions of the property maintenance code have been complied with. J. Approval of the attached list of rental housing license applications, in that they have met the requirements of the Property Maintenance Code. Motion to approve the items listed for rental housing license applications for January 26, 2009. K. Approve Business License Applications Motion to approve the items as listed on the business license agenda for January 26, 2009 as presented. L. Approve payment of the bills. Motion to approve the payment of the bills out of the proper fund as listed in the attached register covering Check Number 128861 through Check Number 129044 in the amount of $1,492,710.97. Motion by Nawrocki, second by Williams, to approve the Consent Agenda items, with the exception of items F, G, and H. Upon vote; All ayes, Motion carried. City Council Minutes Monday, January 26, 2009 Page 3 of 11 F. Authorize purchase of three replacement Police vehicles Nawrocki questioned why we would make these purchases before we know the final result of State aid cutbacks. Fehst stated that the current Public Works vehicle is 18 years old and funds are available in the equipment replacement fund. We are attempting to find at least $700,000 in budget cuts, but we must continue to operate. The 3/4 ton pickup is a 13 year old vehicle and the three police vehicles include an "off of the lot" unmarked vehicle to save a substantial amount of money. We attempt to replace a couple of police vehicles a year. Nawrocki commended the Police Chief for including a slightly used car. He questioned the need for two different make vehicles. Police Chief Nadeau stated the Crown Victoria is a dependable vehicle and the Dodge Charger would add versatility. There is some fuel savings with the Charger and a reasonable step for us. Nawrocki questioned what would happen if Chrysler parts become unavailable. Nadeau indicated that would be unlike]y. Nawrocki questioned the number of miles on the 1991. dump truck. Kevin Hanson, Public Works Director, indicated there are 75,000 miles. Steve Synowczynski, Vehicle Maintenance Supervisor, stated that the vehicle has almost 10,000 hours on it and does not have a wing or spin sander, resulting in limited use. Hansen stated the request comes now because the State contract expires January 31. After that date there would be a five percent increase. There were three pieces of equipment scheduled for replacement this year and staff proposes to hold off on the MT Trackless purchase until 2010. Fuel economy on the pickup truck would be much greater. Nawrocki stated that prices may decrease and reiterated concern to hold off on these purchases. Fehst stated that we buy equipment from our improvement fund, which is carried through amortization and funds are available for theses purchases. Fehst spoke of the necessity to replace the police vehicles and these particular public works vehicles. Peterson stated it would be easy to not replace these vehicles, but it has been proven over the years that this is the correct action. He does not see any reason to change our policy. Motion by Diehm, second by Kelzenberg, to authorize the purchase of one 2009 Ford Crown Victoria Police Interceptor and one 2009 Dodge Police Charger patrol vehicle under the State of Minnesota bid, with funding to come from 431-42100-5150 in the amount of $44,415.00 and that the Mayor and City Manager are authorized to enter into a contract for same. Upon vote: All ayes. Motion carried. Motion by Diehm, second by Kelzenberg, to authorize the Police Chief to negotiate the purchase of a 2008 Dodge Charger Program car to be used as an unmarked police vehicle, with an expenditure of between $12,000 and $14,000. Upon vote: All ayes. Motion carried. Motion by Diehm, second by Kelzenberg, to authorize the Police Chief to expend up to $17,500 to set up and outfit two marked and one unmarked police vehicle. Upon vote: All ayes. Motion carried. G. Capital Equipment Replacement of Unit #19 -GMC Top Kick Single Axle Dump Truck and Attachments from the State of Minnesota Purchasing Contract Motion by Kelzenberg, second by Williams, to purchase from the State of Minnesota Purchasing Contract the Capital Equipment Replacement of Unit #19 GMC TOP KICK single axle dump truck chassis from Astleford International of Minneapolis in the amount of $65,722 and purchase the dump box, reversible front plow, belly plow, wing plow and sander from. Towmaster of Litchfield, Minnesota, in the amount of $76,960 for a total price of $142,682 plus sales tax. Upon vote: All ayes. Motion carried. 6 City Council Minutes Monday, January 26, 2009 Page 4 of 11 H. Authorize the Capital Equipment Replacement of Unit #204 Ford F-250, 4X2, 3/4 Ton Pickup Truck quipped with Power Life gate from the State of Minnesota Purchasing Contract Motion by Kelzenberg, second by Williams, to authorize the replacement of Unit #204 and purchase of one (1) new 2009 Ford 4x2 F-250 pickup truck from Elk River Ford Dodge Jeep in the amount of $18,873 plus sales tax: and Tommy power lift gate from Aspen Equipment in the amount of $2,195 plus sales tax. Funding shall be from Capital Equipment Fund 431-45200-5150. Nawrocki asked. the number of miles on this vehicle. Hansen stated there are nearly 70,000 miles and the vehicle would be disposed of. Upon vote: All ayes. Motion carried. PUBLIC HEARINGS A. Adopt Resolutions 2009-18, 41.56 Sth Street N.E., 2009-19, 4254 2nd Street N.E., and 2008-20 3923 Main Street N.E., being Resolutions of the City Council of the City of Columbia Heights rp oving rental license revocation for failure to meet the requirements of the Property Maintenance Codes. Fire Chief Gary Gorman recommended revocation based on the following reasons: 2009-1.8, 4156 5th Street N.E. -removed -now in compliance. 2009-19, 4254 2nd. Street N.E. -failure to schedule an inspection. 2008-20, 3923 Main Street N.E. -two items not corrected. Motion by Diehm, second by Williams, to close the public hearing and to waive the reading of Resolution Numbers 2009-19, and 20, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Diehm, second by Kelzenberg, to adopt Resolution Numbers 2009-19 and 20 being Resolutions of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental licenses listed. Upon vote: Aii ayes. ivlotion carried. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions 1. Adopt Resolution 2009-21, being a Resolution establishingLProperty Maintenance fees. Fehst stated that we need to make up $700,000 in LGA cuts. When meeting with the Fire Chief, he asked if we are being undercut in our enforcement to maintain the look of the town, and if we are recouping the cost of doing this. At this time, we have not send out the re- licensing letters for this year. Garman stated. that the cost of the program and. what property owners should pay was last looked at in December of 2005. At that time, we attempted to bring up the fees from paying 35 percent of our cost to 70 percent of our cost. We feel it should be property owners that pay for this service, rather than taxpayers. There has been anrncrease in time and. corrections necessary for single and small unit rentals. This rate is similar to charges by other communities. Gorman stated that the City of Minneapolis charges $1,000 to turn anon- rental home into a rental unit. He explained the difference between the fee schedule distributed tonight and the one in the agenda packet. Gorman spoke on the anticipated revenue from this increase. Nawrocki stated that resident taxes should be reduced by the amount anticipated.. Fehst stated City Council Minutes Monday, January 26, 2009 Page5of11 that taxes can not be reduced at this point in time. To meet the State aid Loss there will be a reduction in personnel, unpaid furloughs, and an increase in fees for service given. Nawrocki stated that this would be unfair, as the Fire Department would have $49,000 more than anticipated. Fehst stated that he would balance the decreases through all departments. Peterson indicated that this would be discussed at a budget reduction. work session.. We did not anticipate the $350,000 reduction last year and the $700,000 LGA reduction this year. Fehst stated that the state budget deficit was not indicated until after our budget was approved. Motion by Kelzenberg, second by Diehm, to waive the reading of Resolution 2009-21, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Kelzenberg, second by Diehm, to adopt Resolution 2009-21, establishing Property Maintenance fees. Nawrocki again indicated it is not fair to give an increased revenue source to this department and not consider other departments. Peterson stated that is a premature comment. Upon vote: All ayes. Motion carried. 2. Adopt Resolution 2009-22, being a Resolution establishing; Fire Department fees. Motion by Kelzenberg, second by Diehm, to waive the reading of Resolution 2009-22, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Kelzenberg, second by Diehm, to adopt Resolution 2009-22, establishing Fire Department fees. Nawrocki, aye, Diehm, aye, Williams, aye, Kelzenberg, aye, Peterson aye. All ayes. Motion carried. B. Bid Considerations -none C. Other Business -none A13 ISTRATIVE REPORTS Report of the City Manager and Report of the City Attorney Fehst indicated that the February 2°d work session would include setting a date for the joint Planning and Zoning Commission and City Council Comprehensive Plan meeting, (he will suggest a Wednesday evening in February), Citywide pedestrian and bikeway plan, feasibility report for water- main replacement and alley reconstruction west of Central from 49`" to 50`" Avenue. The request would be to assess the replacement, widen the alley and replace the fence. Budget reductions will also be discussed. Nawrocki indicated that he may be unavailable on the date recommended for the Board of Review. As he is the only member certified, someone else may have to take the class or change the date. Fehst referred to Councilmember Nawrocki's request to clear snow from the bridge before the holiday, which. he had done. The last time Councilmember Nawrocki requested this, the deck was clean, but the steps were not. This year has been consistently cold, with snow and ice difficult to clean. 1-Jansen stated there is snow on the steps, but they are passable. The steps, from use, get trampled. We do shovel and place salt on the bridge. Nawrocki stated that it was visible from the street that they are dangerous. People are reminded to clean their sidewalks in 24 hours. Students have to cross this bridge and it should not be on the bottom of the list for snow removal. Nawrocki City Council Minutes Monday, January 26, 2009 Page 6 of 11 requested the priority of this be reconsidered. Hansen stated that it is normally cleared within 24 hours. Fehst indicated he has met with city employees, business agents, and union stewards to discuss implementing 80 hours of unpaid furlough, which is approximately a 3.84 percent wage decrease and is greater than the 3.5 percent increase received. Employees recognize the economic situation. The reason for the unpaid furlough is to give us some time to figure out how to re-engineer our service levels, There will be layoffs; there is a freeze on filling positions, reduced hours at the library from 60 hours to 50 hours, and replacement of a full time position with apart-time position. We think we can make up the $700,000 in a combination of not filling four positions, laying off between two and four positions and job sharing a couple of positions, which would be one person working in two positions. The recommendation will not include layoffs in the Police or Fire Departments, but the departments will receive some cuts. There may be more cuts if the amount is greater than anticipated. Fehst applauded the union and non-union personnel for stepping forward and cooperating. Nawrocki indicated that the salary adjustment approved by Council for part time personnel has not been put into place. He questioned why the Mayor, which is a part time position., was given his increase. Fehst stated that a number of those positions are not currently on the payroll and the withholding has not been determined. The approval of the Mayor's increase was required prior to the new election term, which is a different situation. Fehst stated that part time position increases will be considered, when applicable. Nawrocki questioned obtaining authorization to attend the National League of Cities Legislative Conference in Washington, D.C. Fehst stated that he will not authorize out of state travel for his staff and that the Mayor has indicated that out of state travel, at this time, would not be necessary. Nawrocki stated that he feels the Washington conference is more important as it allows conversations with our congressmen and senators Motion by Nawrocki, that all travel outside of the seven county metropolitan area, not be allowed without City Council action. Diehm called Point of Order -our Council has agreed to not bring up new motions at a meeting giving councilmember time to review items. She stated that she personally does not support out of town travel for any anyone when we are considering cuts that impact employee hours and pay. Fehst indicated that our Police and Fire departments have extensive training required to maintain certification, as does the Public Works department. Fehst referred to possibly recommending dropping out of the AMM for the next couple of years. We are required to be part of the League of Minnesota Cities to be part of their insurance pool. There is usually one LMC conference in Rochester that staff needs to attend for certification. Fehst indicated the hope that Councilmembers attend the upcoming meeting with Representative Ellison to indicate our need for programs such as the replacement of the pedestrian bridge on 49`'' and Central. Peterson stated he has talked to all Councilmembers indicating that out of state travel would be cut. Let the City Manager work on this. It will be discussed at a work session. Nawrocki again addressed part time salaries. Peterson indicated that the only time council salaries can be changed is prior to an election and not be enacted until after the new council is seated. Peterson called for a second to the motion. Motion died for lack of a second. Nawrocki stated that last year the Assistant Finance Director attended school for ways to be more City Council Minutes Monday, January 26, 2009 Fage 7 of 11 fiscally responsible and questioned the follow up on this. Fehst stated that we continually review how we operate the city and our efficiency and effectiveness on a daily basis. Nawrocki handed out tax information from the Anoka County Web page. Fehst referred to the Citizens League Report, indicating our improved standing on the list. Peterson requested a synopsis report be compiled. CITIZENS FORUM Donna Schmitt, 4260 Tyler Street, commended staff and. the City Council on their work to bring the Sonic Restaurant here. She spoke on embracing who we are as a community. We need to do a better job of selling the city. There are essential things that we cannot scrimp on in our city. Malcolm Watson, 1717 49`" Avenue, stated that the Anoka County Board of Review will meet the evening of June l 5`". He stated that 44 years ago the city went through difficult financial times because of the floods. We deal with emergencies when necessary, but there were financial difficulties. He has offered his help, with past knowledge, to staff. Williams asked Mr. Watson to tell his story about the Church of All Nations, which Watson relayed. Watson indicated that the City of Blaine appoints a committee of land appraisers and realtors as their Board of Review. Peterson suggested staff check if Mr. Watson could sit on our Board of Review if Councilmember Nawrocki is unable to attend. Dewayne Morrell, 4212 Reservoir, questioned Ordinance 1525 9.1? C7D regarding auto sales and Auto World. Fehst stated this is allowed by ordinance and asked that Mr. Morrell speak to the City Attorney if he has further questions. Morrell asked if Unique Thrift pays for the police overtime they request. Fehst stated that we are reimbursed 100 percent for police coverage. COUNCIL CORNER Nawrocki Diehm • Questioned if private water service bids could be by line item. Hansen stated that different items are required each year. The bid is awarded on overall numbers. This gets us the best bid. Owners are encouraged to also obtain bids. • Did not receive the quotes from the employee holiday Luncheon. Fehst indicated that Elrite spoke to him on that. Bids are obtained from time to time. • When the bank contract is up for renewal, are comparisons of bank charges obtained? • Referred to budget cuts. Peterson indicated that would be discussed at the woz°k session. His taxes would be $400 less in Fridley. Fehst stated they would be more in Hilltop. Thursday, February 19 is the SACA spaghetti fundraiser. Tuesday, March 24 is the Empty Bowls fundraiser. Valentines Day is February 14. The Lions Sweetheart dance is February 7. Williams Referred. to police ticketing vehicles left running and unattended. Left his car running five minutes and the accelerator was still frozen. Requested a synopsis of the crime reduction in the city, Nadeau referred to partnerships with other city departments and other cities. Our violent crime was down 20%. This was focusing on problem areas and working with our citizens, soliciting citizen involvement, working smarter and not harder. Stated his appreciation of`the positive comments on behalf of the hardworking officers. Credited Nadeau with improved employee moral. Fehst stated he would speak to Congressman 10 City Council Minutes Monday, January 26, 2009 Page 8 of 1 I Ellison on the need for improvement to the non-handicap accessible pedestrian bridge on -l9`h and Central, Peterson stated there is also one like this in Spring Lake Park. Kelzenberg • Notified residents that vehicles can not be left running and unattended, unless you have an automatic car startere Nadeau referred to car thefts and prevention measures. Peterson • Principal Brian Espe is retiring again. Thanked him for his service. • Remember our service men and women. • Do a random act of kindness and don't take ourselves too seriously. ADJOURNMENT Mayor Peterson adjourned the meeting at 8:53 p.m. Patricia Muscovitz CMC City Clerk RESOLUTION 2009-19 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of that certain residential rental license held by Stephanie Carr (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 4254 2"d Street N.E. Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article IV, Section SA.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on January 8, 2009 of an public hearing to be held on January 26, 2009. 1 • ~ "d ' t t 'll ^''d' the Cite, of ('n ~~; b'a N is tg the f , T ow,here.ore, n acct. ante ..i h he f rego.ng, and .. ~. .ranc..~ and regulations of , l m i e.b . t; Council of the City of Columbia Heights makes the following: FINDINGS OF FACT I. That on or about October 30, 2008, inspection office staff sent a letter requesting the owner of the property to submit a rental license application and schedule a rental inspection for this property. The letter was mailed by regular mail to the owner at the address listed in the property records. 2. That on January 8, 2009 inspection office staff reviewed the property file and noted that the property remained unlicensed. A Statement of Cause was mailed by regular mail to the owner at the address listed in the property records. 3. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to-wit: Failure to schedule a rental property inspection. 4. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A). ORDER OF COUNCIL I. The rental license belonging to the License Holder described herein and identified by license number F9386 is hereby revoked; 2. The City will post for the purpose of preventing occupancy a copy of this order on the buildings covered by the license held by License Holder; 3. All tenants shall remove themselves from the premises within 60 days from the first day of posting of this Order revoking the license as held by License Holder. RESOLUTION 2009-20 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of that certain residential rental license held by Perry Avenue Partnership (Hereinafter'°License Holder°'). Whereas, license holder is the legal owner of the real property located at 3923 Main Street N.E., Columbia Heights, Minnesota, 11 City Council Minutes Monday, January 26, 2009 Page 9 of 11 Whereas, pursuant to City Code, Chapter SA, Article IV, Section SA.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on January 5, 2008 of an public hearing to be held on January 26, 2009. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT 1. That on October 7, 2008 inspectors for the City of Columbia Heights, inspected the property described above and noted six violations. A compliance letter listing the violations was mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 2. That on January 5, 2009 inspectors for the City of Columbia Heights performed a final inspection at the property and noted six violations remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 3. That on January 15, 2009 inspectors for the City of Columbia Heights performed a reinspection and noted that two violations remained uncorrected. 4. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to-wit: Shall repair bonding jumper at water meter that is missing and shall install new batteries in smoke detectors (they are chirping). 5. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F9256 is hereby revoked. 2. The City will post for the purpose of preventing occupancy a copy of this order on the buildings covered by the license held by License Holder. 3. All. tenants shall remove themselves from the premises within 60 days from the first day of posting of this Order revoking the license as held by License Holder. RESOLUTION N0.2009-21 BEING A RESOLUTION ESTABLISHING PROPERTY MAITENANCE INSPECTION FEES AS AUTHORIZED BY CHAPTER SA OF CITY CODE OF 2005 WHEREAS, Ordinance No. 1490, City Code of 2005, pertaining to Property Maintenance regulations provides for the establishing of fees; and WHEREAS, the City has authorized changes to property maintenance fees from time to time; and WHEREAS, the City finds there is a need to modify the property maintenance fee structure at this time; and THEREFORE, BE I'T RESOLVED, that the property maintenance fee structure listed below shall be adopted and effective February 1, 2009. RENTAL LICENSING FEES Rental property license - 1 unit $50.00 per building plus $1.00.00 per unit Rental property license - 2 units $50.00 per building plus $35.00 per unit Rental property license - 3 thru 10 units $50.00 per building plus $25.00 per unit Rental. property license - 11 thru 30 units $50.00 per building plus $18.00 per unit Rental property license -over 30 units $50.00 per building plus $12.00 per unit License Reinstatement after Revocation/Suspension Five times annual license fee License Transfer Fee $25.00 ABATEMENT FEE5 Immediate Abatement Administrative Fee $75.00 per abatement Abatement Administrative Fee $200.00 per abatement RESOLUTION N0.2009-22 BEING A RESOLUTION ESTABLISHING A FIRE DEPARTMENT FEE SCHEDULE WHEREAS, the Columbia Heights Fire Department provides many services, such as contract inspections, plan reviews, and permits; and WHEREAS, State contracts, State Statute, and City Ordinance allows for fees to be charged for these services; and WHEREAS, the City has authorized changes to the Fire Department fees from time to time; and WHEREAS, the City finds there is a need to modify the Fire Department fee structure at this time; and 12 City Council Minutes Monday, January 26, 2009 Page 10 of 11 NOW THEREFORE BE IT RESOLVED that the attached ro osed fee schedule shall be ado ted effective February 1, 2009. AUTHORITY FEE TYPE OF ACTIVITY Recreational Fire Permit: Daily (up to 9 per year) Chapter 8, Article IV of $0.00 Annual City Code $20.00 Festival Bonfire $200.00 Permit Burn (re wires Council a royal) $500.00 Day Care Inspections: $50.00. $50.00 per inspection. 55245A.151 and State Includes contract. follow-up ins ections Abatements: Administrative fee added to the cost of the abatement. Covers cost of Chapter 8, Article II of City Code $200.00 otiice staff time. Explosives: Operational permit required for the manufacture, storage, handling, sale or use of any quantity of explosive material within the scope of Chapter 33 MSFC 105.6.1.5 $0.00 of the MN State Fire Code. Fireworks: SS624.22 $50.00 Outdoor fireworks displays by State certified operator. SS624.20 $0.00 Fireworks sales in existing retail establishments. SS624.20 $200.00 Fireworks stands or tent sales. (NFPA 1124) New Construction/ Modifications/Fire Review: Minnesota State Fire For all occupancies with the exception of detached one- and two-family Code dwellin s. Fee Structures: New constniction/modification fire review fee. 105.4 $50.00 Automatic Fire-Extin ug ishine Systems: New construction/modification fire review fee. 105.7.1 $90.00 Fire Alann and Detection Systems and Related F,quipment: New construction/modification fire review fee. 105.7.3 $50.00 Fire Pumps and Related Equipment: New construction/modification fre review fee_. If part of an automatic tire- extinguishing system review no separate fee will be charged. 105.7.4 $50.00 13 City Council Minutes Monday, January 26, 2009 Page 11 of I 1 Standpipe Systems: New construction/modification fire review fee. If part of an automatic fire- 105.7.11 $50.00 extinguishing system review, no separate fee will be charged. Spray Rooms, Dip Tanks, or Paint Booths: New construction/modification frre review fee. 105.7.10 $0.00 LP Gas: Exterior installations only: Plan review and inspections to be conducted $180.00 by Fire Department. 105.7.8 Interior installations onl :New construction modification fire review fee. $90.00 Flammable & Combustible Li ug ids: New construction/modification frre review fee. 105.7.5 90.00 (includes tank installations & removals) Hazardous Materials: New construction/modification fire review fee. 105.7.6 90.00 Temporary Membrane Structures, Tents and Canopies: Less than 180 days: Plan review and inspections to be conducted by Fire $90.00 Department. 105.7.12 $50.00 Under a Conditional Use Permit. $50.00 Greater than 180 da s: New construction/modification fire review fee. 14 ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES September 23, 2008 CALL TO ORDER/ROLL CALL President, Gary ~. Peterson called the meeting to order at 7:01 p.m. Present: Gary L. Peterson, Bobby Williams, Bruce Nawrocki, Tammera Diehm, Marlaine Szurek, Gerry Herringer and Bruce Kelzenberg Staff Present: Walter R. Fehst, Executive Director, Scott Clark, Deputy Executive Director and EDA Attorney, Steve Bubul Motion by Williams, Second by Diehm, to approve Scott Clark as Secretary Pro-tem. Motion Carried Unanimously. PLEDGE OF ALLEGIANCE CONSENT AGENDA Approve Minutes of August 26 and September 15, 2008 meetings and the Financial Report and Payment of Bills for the month of August 2008 on Resolution 2008-15. Nawrocki asked a series of questions on the claims list and the overall financial report. Clark would get back to the EDA regarding a revenue question relating to ad valorem taxes. Motion by Kelzenberg, second by Williams, to approve the consent agenda All ayes. Motion Carried. EDA RESOLUTION 2008-15 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE F/NANCtAL STATEMENT FOR AUGUST 2008 AND PAYMENT OF B1LLS FOR THE MONTH OF AUGUST 2008. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows al! receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the month of August 2008 and the list of bibs for the month of August 2008 are attached hereto and made a part of this resolution; and WHEREAS, the EDA has examined the financial statement and the list of bills and finds them fo be acceptable as to both form and accuracy. NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the attached financial statements and list of bills, which are attached hereto and made a part hereof, and they are found to be correct, as to form and content, and BE lT FURTHER RESOLVED the financial statements are acknowledged and received and the list of bills as presented in writing are approved for payment out of proper funds; and BE 1T FURTHER RESOLVED this resolution and attachments are fo be made a part of the permanent records of the Columbia Heights Economic Development Authority. 15 Economic Development Authority Meeting Minutes September 23, 2003 Page 2 of 10 BUSINESS ITEMS Resolutions 2008-12 and 13. Fourth Amendment to Contract for Private Redevelopment-Grand Central Lofts and Contract for Private Redevelopment- 4707 Central Avenue *At the September 15, 2008 EDA meeting staff informed the Commissioner's that the development under consideration suffered a setback due to not being able to secure a lease with Buffalo Wild Wings, and in turn, the project may not commence until Spring of 2009. Staff has revised the Agreements so that it covers three possible development scenarios: 1) the developer constructs immediately, the sanitary sewer expansion, the Aldi's bui{ding and the parking ramp (Phase I) and the foundation for the commercial Phase II building; 2) This fall, the developer constructs only the building foundations for both Phases, including the parking ramp. This would allow spring construction to commence in March of 2009; and 3) No work commencing until the spring of 2009, this possibility creates the change in the Agreement that work must commence by May 1, 2009 but holding the completion date at December 31, 2009. It is important to note that the Pay-As-You-Go Tax Increment of $440,000 would not change and would not be issued until the entire project is complete. Clark presented to the EDA modifications to the 4tn Amendment, specifically changes to the Completion Certificate Section and item 4.3 regarding the completion date for Phase 2. Herringer was not satisfied regarding the language change for 4.3 and Bubul explained that the language, as written, was constructed since the Housing Developer had no contractual obligation regarding a commencement date, only a completion date for '' ,- ~ grad +a na changes in lanni loge Phase ~. i he `DA a ~ ~.~, . . ~ ,~ ~..-. . Herringer then stated that it was his opinion that although the Agreement definitions stated "owner occupancy" regarding the housing units, that the EDA had previously agreed to insert additional language within the body of the Agreement. Bubul was directed to include this language and it was agreed that these modifications will be made and that the EDA will receive a new copy of the Agreement. Motion by Diehm, second by Kelzenberg, to waive the reading of Resolution 2008-12, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Diehm, second by Kelzenberg, to Adopt Resolution 2008-12, a Resolution Approving the 4th Amendment to Contract for Private Redevelopment and Awarding the Sale of, and Providing the Form, Terms, Covenants and Directions for the Issuance of its Taxable Tax Increment Revenue Notes, Series 2008A; and furthermore, to autl-torize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Nawrocki asked for a synapsis of what this Agreement was giving to the respective 16 Economic Development Authority Meeting Minutes September 23, 200& Page 3 of 10 parties. Clark gave a synopsis of the same. Clark gave a brief review of the contract between the EDA and Grand Central Commons LLC. Clark specifically read the new language regarding the Metropolitan Grant to have the EDA understand that although staff was confident in gaining aone- year extension that no contractual representation was being made regarding the same. Clark also noted that new language regarding minimum assessment agreement amounts and pro-rations, Section 6.3 of the contract, was also disbursed. Herringer asked a series of questions on the tax increment note. An error was found in the tax increment note regarding maturity date and the end date of 2018 will be amended to read 2021, which is consistent with the rest of the Agreement. Bubul clarified to the EDA that a tax increment note does not carry an amortization schedule but is paid back through "available tax increment", as defined in the contract. Tax increment proceeds are first used to pay accrued interest and then principle. Clark also explained how the process works to develop the proposed tax increment amount including the review by a third party of the developer's pro forma and expected project cash flow. The EDA will receive a new copy of the Agreement upon final draft, Motion by Diehm, second by Williams, to waive the reading of Resolution 2008-13, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Diehm; second by Williams, to Adopt Resolution 2008-13, a Resolution Approving the Contract far Private Redevelopment and Resolution Awarding the Sale of, and Providing the Form, Terms, Covenants and Directions for the Issuance of its $440,000 Taxable Tax increment Revenue Note, Series 2008B; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. RESOLUT/ON NO. 2008-12 RESOLUTION APPROVING FOURTH AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT AND AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF IT5 TAXABLE TAX INCREMENT REVENUE NOTES, SERIES 2008A BE IT RESOLVED BY the Board of Commissioners (°Board) of the Columbia Heights Economic Development Rufhorify, Columbia Heights, Minnesota (the ;4uthority'~ as follows: Section 1. Authorization Award of Sale. 1.01. Aufhcrizafion. The Authority and the City of Columbia Heights have heretofore approved the establishment of the K.mart/GentratAvenueTaxtncrement FinancingDisfrict(the°T/FDistrict")fheDowntownCBDRedeve/opmentProject(the Projecf~,and have adopted a fax increment financing plan for fhe purpose of financing certain improvements within the Project. fn connection with the TtF Disfnct, the Authority entered info a Contract forPrivate Redevelopmentbehveen fhe Authority and New Neighfs Development, LLC (now known as Grand Central Properties, LLC) dated as of September 22, 2004, as amended by a First Amendment thereto dated as of April 26, 2005, a second amendment thereto dated as of November 22, 2005, a Third Amendment thereto dated as ofAugust 28, 2007 and intends to enter into a Fourth Amendment thereto referenced below (collectivefy, the Agreement`). 17 Economic Development Authority Meeting Minutes September 23, 2008 Page 4 of 10 Pursuant fo Minnesota Statutes, Section 469.178, the Authority is authorized to issue and sell its bonds for the purpose of financing a portion of the public development costs of the Project. Such bonds are payable from alt or any portion of revenues derived from the TIF District and pledged to the payment of the bonds. The Authority hereby finds and determines that it is in the best interests of the Authority that it issue and sell ifs Taxable Tax Increment Revenue Notes in the principal amount of $700,OD0 (the Nofes'7 for the purpose of financing certain public redevelopment costs of the Project 1.02. Approval of ConfractAmendment. The Fourth Amendment to Contract forPrivate Redevelopment between the Authority Grand Central Properties, LLC ("Grand Central Properties' is approved in substantial/y the form on file in City Nall, subject to modifications That do not alter the substance of the transaction that are approved by the President and Executive Director, provided that execution of the amendment by such officials is conclusive evidence of and their approval. 1.03. Issuance Saie and Terms of the Notes. The Authority hereby delegates to the Executive Director the defermina6on offhe date on which the Notes are fo be delivered, in accordance with the Agreement. The Notes shall be issued as follows: one Note in the original principal amount of the Housing Redeveloper Portion issued to Grand Central Properties; and one Note in the original principal amount of the Commercial Redeveloper Portion issued fo Grand Central Commons, LLC ("Grand Central Commons', as such terms are defined in, and aft in accordance with, the Agreement (Grand Central Properties and Grand Central Commons being referred to as the "Owner" or "Owners'). The Notes shall be dated August 1, 2008, shat! mature no later Phan February i, 2014, and shall bear interest at the rate of 6.0 % per annum from the date of original issue of the Note. The Notes are issued in consideration of payment by Grand Gentral Properties of the Public Redevelopment Costs in at least the principal amount of the Notes, in accordance with the Agreement. Section 2. Form of Note. The Notes shall be in substantially the following form, numbered R-1 and R-2, with the blanks to be properly fitted in as of the date of issue: UNITED STATE OF AMERICA STATE OF MINNESOTA GOUNTY OF ANOKA COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY No. R- $ TAXABLE TAX INCREMENT REVENUE NOTE SER/ES 2007 Date Rate of Orioinal Issue 6.0 % August 1, 2008 The Columbia Heights Economic DevelopmenfAuthority('Authority)for value received, cerfrfies that it is indebted and hereby promises to pay to or registered assigns (the "Owner'7, the principal sum of $ (the "Principal Amount', as providedn the Agreementdefined hereafter, Togetherwith interest on i;9e unpaid b~~ance the.~ecfaccrued from ±he date ofengfnal issue hereof at the rate of 6.0 percent per annum (the "Stated Rate'. This Note is given in accordance with that certain Contract for Private P.edevelopmenf between the Issuer and New Heights Development, LLC dated as of September 22, 2004, as amended by a First Amendment thereto dated as of April 26, 2005, a Second Amendment thereto dated as of November 22, 2005, a Third Amendment thereto dated as of August 28, 2007 and a Fourth Amendment thereto dated as of , 2008 (the Agreement's and the authorizing resolution (the `ResoluSon'~ duly adopted by the Authority on August , 2008. Capitalized terms used and not otherwise defined herein have the meaning provided for such teens in the Agreement unless the context c%arly requires otherwise. 1. Payments. Principal and interest (°Paymenfs'~ shall be paid in installments commencing February i, 2009 and continuing on each February 1 and August 1 thereafierto and including February 1, 2014 (°PaymentDates'9, in the amounts and from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal Notwithstanding anything to the contrary herein, the balance of(Housing RedeveloperAvailable Tax IncrernenfJ (Commercial RedeveloperAvailable Tax lncrementJ on hand as of the date of issuance of the Nofe shat! be paid on the date of issuance. Payments are payable by mail to the address of the Owner or such atheraddress as the Ownermay designate upon 30 days v/ritfen notice to the Ruthorify Payments on this Nofe are payable in any coin or currency of the United States ofAmerica which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Simple interest shall accrue from the date of original issue of this Nofe and shall be computed on the basis of a year of 360 days and charged for actual days principal is unpaid. .4vailable Tax Increment. (Alt payments on this JVofe are payable on each Payment Date solelyfrom and fn the amcuntof the "Housing RedevefoperAvailable Tax Increment" as defined in the Agreement that has been paid fo the Authority by Anoka County in the six months preceding the Payment Date, subject tp the withholding and contingent pledge ofcertain Tax Increment held in escrow by the Authorityin accordance with Section 3.4(cJ(i) of the Agreemenf.J 18 Economic Development Authority Meeting Minutes September 23, 2008 Page 5 of I O ]All payments on this Note are payable on each Payment Date solely from and in the amount of the "Commercial RedeveloperAvaitable Tax Increment" as defined in the Agreement that has been paid to the AuthoritybyAnoka County in the six months preceding the Payment Date. j The Authority shaft have no obligation to pay principal of and intereston this Note on each Payment Date from anysouroe other than ]Housing RedeveloperAvaitable Tax Increment] jCommeroia! RedeveloperAvaitable Tax Increment] and the failure ofihe Authority to pay the entire amount of principal orinterest on this Note on any Payment Date shalt not constitute a default hereunder as long as the Authoritypaysprincipal and interesthereon fo the extent ofsuch pledged n:venues. The Authorityshaflhave no obligation fopay unpaid balance of principal or accrued interest that may remain after the final Payment on February 1, 2014. 4. Default. Upon an Event ofDefaultbytheRedeveloperundertheAgreement,theAuthoritymayexercisefheremedies with respect to this Note described in Section 9.2 of the Agreement, the terms of which are incorporated herein by reference. 5. Opffonat Prepavment. {a) The principal sum and all accrued interest payable under this Nofe is prepayable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shalt affect the amount or timing of any other regular payment ofherv/ise required fo be made under this Nofe. (b) Upon receipt by Redeveloper of the Authority's written statement of the Excess Amount as defined in Section 3.4(c) of the Agreement, one-half of such Excess Amount will be deemed to constitute, and will be applied fo, prepayment of the principal amount of this Nofe. Such deemed prepayment is effective as of the Final Cfosfng Date as defined in Section 3.4(c) of the Agreement, and will be recorded by the Regisfrarin its records for the Note. Upon request of the Owner, the Authority will deliver to the Ownera statement of the outstanding principal balance of the Note after applfcafion of the deemed prepayment under this paragraph. 6. Nature ofObliaation. This Nofe is one of an issue in the total principal amount of $700,000 issued to aid in financing certain public redevelopment costs and administrative costs of a Project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.001 through 469.047, and is issued pursuant to the Resolution, and pursuant to and in full conformity wfth the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.179. This Note is a limited obligation of the Authority which is payable solely from the revenues pledged to the payment hereof under the Resolution, each Note issued under the Resolution being on parity with the other. This Note and the interest hereon shat! not be deemed to constitute a general obligation of the State of Minnesota oranypofitical subdivision thereof, including, witYroutlimitaffon, fheAufhority. Neither the State ofMinnesota, norany political subdivision thereof shalt be obligated to pay the principal oforinferest on this Note orother costs incidenthereto except from and to the extent of the revenues pledged hereto, 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 this Note or other costs incident hereto. 7. Registration and Transfer. This Note is issuable only as a fully registered note without coupons- As provided in the Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the books of the Authority kept for that purpose at the principal offrce of the City Finance Director, by the Ownerhereof in person or by such Owner's attorney duly authorized in writing, upon surrenderof this Note fogefherwfth a wrfften instrument of transfersafisfactory to the Authority, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a new Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates. This Nofe shall not be transferred to any person unless the Authority has been provided wffh an opinion of counsel or a certificate of the transferor, in a form satisfactory to the Authority, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. !T !5 HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed fn order to make this Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due forts, time and manneras so required. IN WITNESS WHEREOF, the Board of Commissioners of the Columbia Heights Economic DevelopmentAuthorityhave caused this Note fo be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. COLUML3IA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY' Executive Director-Wolfer R. Fehst President-Gary L. Peterson REGISTRATION PROVISIOfJS The ownership of the unpaid balance of the within Note is registered in the bond register of the City Finance Director. in the name of the person last fisted below. Date of Signature of 19 Economic Development Authority Meeting Minutes September 23, ?008 Page 6 of 10 Registration Registered Owner_ Cify Finance Director Federal Tax I.D. No. Section 3. Terms Execution and Delivery. 3.01. Denomination, Pavment The Nofe shall be issued as a single typewritten note numbered R-1. The Nofe shall be issuable only in fully registered form. Principal of and interest on the Note shat! be payable by check or draft issued by the Registrar described herein. 3.02. Dates ~ Interest Pavment Dates. Principal of and interest on the Nofe shall be payable by mail to the owner ofrecord thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. 3.03. Registration. The Authority hereby appoints the City Finance Director to perform the functions of registrar, transfer agent and paying agent (the "Registrar"). The effect ofregistration and the rights and duties of the Authority and the Registrar with respect thereto shall be as follows: (a) Register. The Registrarshall keep at its office a bond registeren which the Registrar shall provide forthe registration of ownership of the Note and the registration of transfers and exchanges of the Nofe. (b) Transfer of Note. Upon surrender for transfer of the Note duty endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duty executed by the registered owner thereof orby an aftomey duly authorized by the registered ownerin writing, the Regfstrarshall authenticate anddefiver, in the name ofthe designated transferee or transferees, a new Note of a like aggregate principal amount and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note shall not be transferred to anyperson unless the Authority has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the Authority, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities taws. The P,egistrarmay close the books forregisfrafion ofany transfer aBer the fi;teenth day of the month preceding each Payment Dafe and until such Payment Date. (c) Cancellation. The Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Authority. (d) Improoer or Unauthorized Transfer. When the Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Nofe or separate instrument of transferis legally authorized. The Registrar shall incur no liability for ifs refusal, in good faith, to make Transfers which it, in its judgment, deems improper or unauthorized. (e) persons Deemed Owners. The Authority and the Registrar may Treat the person in whose name the Note is at any time registered in the bond register as the absolute owner of the Note, whether the Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Note and for alt other purposes, and all such payments so made fo any such registered owner or upon the owners order shall be valid and effectual to satisfy and discharge the liability of the Authority upon such Note to the extent of the sum or sums so paid. (t) Taxes Fees and Charoes. For every transfer or exchange of the Nofe, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any fax, fee, or othergovemmental charge required to be paid with respect fo such Transfer or exchange. (g) Mutilated Lost 5folen orDestroved Note. /n case any Note shall become mutilated orbe lost, stolen, ordestroyed, the Registrar shall deliver a new Note of like amount, maturity dates and tenor in exchange and substitution forand upon cancellation of such mutilated Note ortn lieu ofand in substitution forsuch Nofe lost, stolen, ordestroyed, upon the paymentoffhe reasonable expenses and charges of the Registraron connection therewith; and, in the case the Note lost, stolen, ordestroyed, upon filing with the Registrarof evidence satisfactory to if That such Nofe was lost, stolen, ordestroyed, and of the ownership (hereof, and upon furnishing fo the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory fo it, In which both the Authorifyand the Regisfrarshalt be named as obligees. The Note so surrendered to the Registrarshall be cancelled by it and evidence of such cancellation shat/be given to the Authority. (f the mutilated, lost, stolen, ordestroyed Note has already matured or been called forredemption in accordance with ifs Perms, it shall not be necessary to issue a new Note prior to payment. 3.04. Preoare6on and Delivery. The Note shah be prepared under the direction of the Executive Director and shalt be executed on behalf of the Authority by the signatures of its President and Executive Director. !n case any officer whose signature shalt appearon the Note shall cease to be such ofhcerbefore the delivery of the Nofe, such signature shaft nevertheless be valid and suficient for all purposes, the same as if such officer had remained in offrce until delivery. When the Note has been so executed, it shall be delivered by the Executive Director fo the Owner thereof in accordance with the Agreement. Section 4. Security Provisions. 20 Economic Development Authority Meetnlg Minutes September 23, ?008 Page 7 of 10 4.01. Pledge. The Authority hereby p/edges to the payment of the principal of and interest on the Notes alt Housing Redeveloper Available Tax Incrementand Commercial RedeveloperAvailable Tax /ncremenf, as the case maybe, under the terms and as defined in the Notes. Such revenues shall be applied to payment of the principal of and interest on the Notes, each !Vote being on parity with the outer, in accordance with the terms of fhe form of Note set forth in Section 2 of this resolution. 4.02. Bond Fund. Until the date the Nofe is no longeroutsfanding and no principal thereoforinferestthereon (to the extent required fo be paid pursuant fo this resolution) remains unpaid, the Authorityshall maintain a separate and special "Bond Fund" to 6e used for no purpose other than the payment of fhe principal of and interest on the Note. The Authority irrevocably agrees to appropriate to the Bond Fund in each year all Housing RedeveloperAvai/able Tax Increment and Commercial RedeveloperAvailab/e Tax /ncrement,~ and agrees with respect to the Nofe issued to Grand Central Properties, to maintain and apply the escrowed Tax /ncremenf in accordance with Section 3.4(c)(i) of fhe Agreement. Any amount remaining in the Bond Fund shall be transferred to the Authority's account for the TIF District upon termination of the Note in accordance with ifs terms. 4.03. Additional Bonds. If the Authority issues any bonds or notes secured by Available Tax Increment, such additional bands or notes are subordinate to the Notes in all respects. Section 5. Certification of Proceedinos. 5.01. Cetiification of Proceedinos. The officers of the Authority are hereby authorized and directed to prepare and famish to the Owner of the Nate certified copies of all proceedings and records of the Authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the Nofe as the same appear from the books and records under their custody and control or as otherwise known to them, and at! such certified copies, certfficates, and affidavits, including any heretofore famished, shall be deemed representations of the Authority as to the facts recited therein. Section 6. Effective Date. This resolution shat! be effective upon execution of the Fourth Amendment to the Agreement. RESOLUTION NO. 2008-13 RESOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT AND RESDLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS X440,000 TAXABLE TAX INCREMENT REVENUE NOTE, SERIES 20088 BE lT RESOLVED BV the Board of Commissioners ("Board's of the Columbia Heights Economic Development Authority, Columbia Heights, Minnesota (the Authority'] as follows: Section i. Authorization. 1.01. Authorization. The Authority and the City of Columbia Heights have heretofore approved the establishment of the KmartlCentral Avenue Tax Increment Financing District (the "TfF District) the Downtown CBD Redevelopment Project (the "Project), and have adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. Pursuant to Minnesota Statutes, Section 469.178, the Authority is authorized fo issue and sell its bonds for the purpose of financing a portion of fhe public development costs of the Project. Such bonds are payable from all or any portion of revenues derived from the TIF District and pledged to the payment of fhe bonds. The Authority hereby finds and determines that if is in the best interests of fhe Authority thatit issue and sell its Taxable Tax Increment Revenue Note in fhe maximum principal amount of $440, 000 (the °Note'~ far the purpose of financing certain public redevelopment costs of the Project. 1.02. Approval ofAareemenL The Contract for Private Redevelopment (the AgreemenY7 between the Authority Grand Central Commons, LLC ("Grand Central Properties') is approved in substantially fhe form on frle in City Nall, subject to modifications that do not alter the substance of the transaction That are approved by the President and Executive Director, provided that execution of the amendment by such officials is conclusive evidence of and their approval. 1.03. Issuance Sale. and Terms of the Nofe. The Authority hereby delegates to the Executive Directorthe determination of the date on which the Note is fo be delivered, in accordance with the Agreement The Note shall be issued to Grand Central Commons LLC ("Owner'?. The Note shall be dated as of the date of delivery, shall mature no later than February 1, 2018 and shalt bearinferest at the rate of 7.0% per annum from the date of original issue of the Note. The Nofe is issued in consideration ofpayment by Owner of certain Public Redevelopment Costs in at least the principal amount of the Note, in accordance with the Agreement. Section 2. Form of Note. The Note shall be in substantially the following form, v/ith the blanks to be properly filled in and the principal amount and payment schedule adjusted as of the date of issue: UNITED STATE OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA COLUMBIA HEIGHTS ECDNOMIC DEVELOPMENT AUTHORITY No. R-1 21 Economic Development Authority Meeting Minutes September 23, 2008 Page 8 of 10 TAXABLE TAX INCREMENT REVENUE NOTE SERIES 20 Date Rate of Orioinal Issue 7.0% 20 The Columbia Heights Economic DevetopmentAufhority (Authority') forvalue received, certifies thatitis indebted and hereby promises to pay to Grand Central Commons LLC orregistered assigns {the °Owner'), the principal sum of$ orso much thereof as has been from time to time advanced (the "Principal Amount'7, as provided in the Agreement defined hereafter, together with interest on the unpaid balance thereof accrued from the date of original issue hereof of the rate of_ percent per annum (fhe "Stated Rate'). This Note is given in accordance with that certain Contract for Private Redevelopment between the Issuer and the Owner dated as of 2008 (the Agreement') and the authorizing resolution {the "Resolution') duly adopted by the Authority on 2008. Capitalized terms used and not otherwise defined herein have the meaning provided for such terms in the Agreement unless the context clearly requires otherwise. 1. Payments. Principal and interest ("Payments') shall be paid on August 1, 2010 and each February 1 and August 1 thereafter fo and including February i, 2021 ("Payment Dates' fn the amounts and from the sources set forth in Section 3 herein. Payments shat/ be applied first to accrued interest, and then fo unpaid principal. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon 30 days written notice to the Authority. Payments on this Note are payable in any coin or currency of fhe United States of America which, on fhe Payment Date, is legal fender for the payment of public and private debts. 2. Interest. Interest accruing from the date of original issue through and including February 1, 2010 (and not otherwise paid from Available Tax Increment) will be compounded semiannually on February 1 and August 1 of each year and added to principal. Interest shall be computed on the basis of a year of 360 days and charged for actual days principal is unpaid. 3. Available Tax Increment. All payments on Phis Note are payable on each Payment Data so/ety from and in the amount of the Available Tax Increment "which means, on each Payment Data, 90 percent of the Tax Increment attributable to the Commercial Property as defined in the Agreement that is paid fo the Authority byAnoka County in the six months preceding fhe Payment Date. The Authority shall have no obligation fo pay principal of and interest on this Nofe on each Payment Date from anysource other than Available Tax Increment and the failure of the Authority to pay the entire amount of principal orintereston this Note on any Payment Date shall not constitute a default hereunder as tong as fhe Authority pays principal and interest hereon to the extent of such pledged revenues. The Authority shall have no obligation to pay unpaid balance of principal or accrued interest that may remain after the final Payment on February 1, 2021. 4. Default. Upon an EventofDefaultbytheRedeveloperundertheAgreement,theAufhoritymayexercisetheremedies with respect to this Note described in Section 9.2 of fhe Agreement the terms of which are incorporated herein by reference. ~. Optional Preoayment. (a) The principal sum and ail accrued interest payable underthis Nofe is prepayable in whole or in part at any time by fhe Authority without premium or penalty. No partial prepayment shall affect fhe amount or timing of any other regular payment otherwise required fo be made under this Nofe. (b) Upon receipt by Redeveloper of the Authority's written statement of fhe Excess Amountas defined in Section 3.4(e) of the Agreement one-half of such Excess Amount will be deemed to constitute, and will be applied to, prepayment of fhe principal amount of this Note. Such deemed prepayment is effective as of the Calculation Date as defined in Section 3.4(e) of the Agreement, and will be recorded by the Regfsfrarin ifs records for the Note. Upon request of fhe Owner, the Authority will deliver to the Owner a statement of the outstanding principal balance of fhe Note after application of the deemed prepayment under this paragraph. 6. Nature of Oblioation. This Nofe is one of an issue in the total principal amount of ~ issued to aid ir, financing certain public redevelopment costs and administrative costs of a Project undertaken by the Authority pursuant fo Minnesota Statutes, Sections 469.001 through 469.047, and is issued pursuant fo the Resolution, and pursuant to and in full conformity with the Consfitufion and laws of fhe State of Minnesota, including Minnesota Statutes, Sections 469. i74 to 469.179. This Note is a limited obligation of the Authority which is payable sotety from the revenues pledged to the payment hereof underfhe Resolution. This Note and the inten=se hereon shat! not be deemed to ronstitute a general obligation of the State of Minnesota or any political subdivision thereat, including, without limitation, fhe Authority. Neither the State of Minnesota, nor any political subdivision thereofshall be obligated fo pay the principal of or interest on this Note or other costs incident hereto except from and to the extent of the revenues pledged hereto, and neither the full faith and credit nor the faxing power of the State of Minnesota or any political subdivision thereof is pledged fo fhe payment of the principal of or interest on this Note or other costs incident hereto. 7. Rec~isfration and Transfer. This Nate fs issuable only as a fully registered note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the books of the Authority kept for that purpose at the principal office of the Cfty Chief Financial Officer, by the Owner hereof in person or by such Owner's attorney duly 22 Economic Development Authority Meeting Minutes Septeanber 23; 2008 Page 9 of 10 authorized in writing, upon surrenderof this Note together with a written instrument of transfersatisfactory fo the Authority, duty executed by the Owner. Upon such transfer orexchange and the payment by the Ownerof any tax, fee, orgovemmental charge required to be paid by the Authority with respect to such transferor exchange, there wilt be issued in the name of the transferee a new Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates. This Note shat/ not tie transferred to any person unless the Authority has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the Authority, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. /T IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and Laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order fo make this Note a valitl and binding limited obligation of the Authority according to ifs terms, have been done, do exist, have happened, and have been performed in due form, time and manneras so required. !N WITNESS WHEREOF, the Board of Commissioners of the Columbia Heights Economic DevelopmentAuthorityhave caused this Note to be executed with the manual signatures ofits President and Executive Director, alt as of the Date ofOriginal Issue specified above. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Executive Director-Walter R. Fehst President-Gary L. Peterson REGISTRATION PROVISIONS The ownership of the unpaid balance of the within Note is registered in the bond register of the City Chief Financial Officer, in the name of the person last listed below. Date of Signature of Registration Registered Owner Gity Chief Financial Officer Grand Central Commons LLC Federal Tax l.D. No. Section 3. Terms Execution and Delivery. 3.01. Denomination. Pavment. The Note shall be issued as a single typewritten note numbered R-1. The Note shall be issuab/e onlyin fully registered form. Principal of and interest on the Note shah be payable by check or drab issued by the Registrar described herein. 3.02. Dates Interest Pavment Dates. Principal ofand intereston the Note shalt be payable by mail to the owner ofrecord thereof as of the close of business on the fiReenth day of the month preceding the Payment Date, whether ornot such day is a business day. 3.03. Registration. The Authority hereby appoints the City Chief Financial Officer fa perform the functions of registrar, transfer agent and paying agent (the f,'egisfrar"). The effect of registration and the rights and duties of the Authority and the Registrar with respect thereto shalt tie as follows: (a) Register. The Regisfrarshalt keep ants office a bond regisferin which the Registrar shall provide forthe registration of ownership of the Note and the registration of transfers and exchanges of the Note. (bj Transfer of Nofe. Upon surrender for transfer of the tJote duly endorsed by the registereC owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duly executed by the registered owner thereof orby an attorney duly authorized by the registered owner in writing, the Registrar shalt authenticate and deliver, in the name of the designated transferee or transferees, a new Note of a like aggregate principal amount and maturity, as requested by the transferor. Nohvifhstanding the foregoing, the Nofe shalt not be transferred to any person unless the Authority has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory fo the Authority, that such transfer is exempt from registration and prospectus deliveryrequirements of federal and applicable state securities laws. The Registrar may close the books forregistration ofany transfer after the fifteenth day of the month preceding each Payment Dafe and until such Payment Cate. (c) Cancellation. The Nafe surrendered upon any transfer shall be promp8y cancelled by the Registrar and thereafter disposed of as directed by the Authority. (d) Improper or Unauthorized Transfer. When the Note is presented fo the Registrar for transfer, the Registrar may refuse to transferthe same until if fs satisfied That the endorsement on such Note or separate instrument of transfer is legally authorized. 23 Econonuc Development Authority Meeting Minutes September 23, 2008 Page 10 of 20 The Registrar shat/ incur no liability for its refusal, in good faith, fo make transfers, which it, in its judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The Authority and the Registrar may treat the person in whose name the Note is at any time registered in the bond register as the absolute owner of the Note, whether the Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the prirzcipal ofand interest on such Nofe and for alt other purposes, and all such payments so made fo any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the Authority upon such Note to the extent of the sum or sums so paid. (t) Taxes. Fees and Charoes. Foreveryfransferorexchange ofthe Nofe, the Registrarmayimpose acharge upon the owner (hereof sufficient to reimburse the Registrar for any tax, fee, orofhergovemmenta/ chan,/e required to be paid with respect to such transfer or exchange. (g) Mutilated. Lost Stolen orDesfroved /Vote. !n case any Nofe shalt become mutilated orbe lost, stolen, or destroyed, the Registrar shat! deliver a new Note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated Note Orin lieu ofand in substitution forsuch Note lost, stolen, or destroyed, upon the paymentoffhe reasonable expenses and charges of the Registrar in connection therewith; and, in the case the Note lost, stolen, or destroyed, upon filing with the Registrar of evidence sati~facfory to it that such Note was lost, stolen, or destroyed, and of the ownership thereof, and upon famishing to the Registrar ofan appropriate bond or indemnity in form, substance, and amount satisfactory to if, in which both the Authorityand the Registrarshall be named as obligees. The Nofe so surrendered to the Registrarshall be cancelled by it and evidence of such cancellation shall be given to the Authority. ff the mutilated, lost, stolen, or destroyed Note has already matured ar been called for redempBon in accordance with its terms, it shall not be necessary to issue a new Note prior to payment. 3.04. Preparation and Delivenr. The Note shalt be prepared under the direction of the Executive Director and shall be executed on behalf of the Authority by the signatures of its President and Executive Director. /n case any officer whose signature shall appear on the Note steal! cease to be such officer before the delivery of the Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the Note has been so executed, it shall be delivered by the Executive Director to the Owner (hereof in accordance with the Agreement. Section 4. Security Provisions. 4.01. Pledge. The Authority hereby pledges fo the payment of the principal ofand interest on the Note all Available Tax Increment under the terms and as defined in the Note. Available Tax Increment shall be applied to payment of the principal ofand interest on the Nofe in accordance with the terms of the form of Nofe set forth in Section 2 of this resolution. 4.02. Bond Fund. Until the date the Nofe is no longeroutstandingond no principal thereof orfnterest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the Authority shat! maintain a separate and special °Bond Fund" to be used forno purpose ofherthan the payment of the principal ofand intereston the Nofe. The Aufhorityirrevocablyagrees to appropriate to the Bond Fund in each year alt Available Tax Increment. AnyAvailable Tax Increment remaining in the Bond Fund shall be transferred fo the Authority's account for the TIF District upon termination of the Note in accordance with ifs terms. 4.03. Additional Bands. If the Authority issues any bonds or notes secured by Available Tax Increment, such additional bonds or notes are subordinate to the Nofe in alt respects. Section 5. Certification of Proceedinos. 5.01. Certification of Proceedinos. The officers of the Authority are hereby authorized and directed fo prepare and furnish fo the Owner of the Note certified copies of all proceedings and records of the Authority, and such other affidavits, certifrcates, and information as may be required to show the facts refafing fo the legality and marketability of the Note as the same appear from the books and records under their custody and control or as ofhenvise known to them, and alt such certified copies, certificates, and afdavits, including any heretofore famished, shall be deemed representations of the Authority as to the facts recited (herein. Section 6. Effective Dafe. This resolution shall be effective upon execution of the Agreement. A®J~l1RIVtViENT President, Peterson, adjourned the meeting at 7:50 p.m. Respectfully sui~itted, /'~ f ~' ~-~---~ Scats ~~arit I-I:IEDAminutes2008t9-23-2008 24 HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING MINUTES OF OCTOBER 28, 2008 Call to Order - by Chair, Tammera Diehm at 7:01 p.m. Roll Call- Tammera Diehm, Bruce Nawrocki, Dennis Ecklund Jr., and Bruce Kelzenberg Absent: Bobby Williams City Staff: Walter R. Fehst, Executive Director, Scott Clark, Deputy Executive Director, Sheila Cartney, Asst. Community Development Director, Cher Bakken, Secretary CommonBond Staff: Brian Hon, Construction Project Mgr, Jason Price, Accountant, Jennifer Eells, Asst. Property Manager, Laura Sheak, Property Manager, Tom Satzer, Maintenance Tech and Lisa Wilcox-Erhardt, Regional Manager Pledge of Allegiance Consent A eq nda Approve the Minutes of April 22, 2008 Regular Meeting and Financial Reports for the months of April, May, June, July, August and September 2008, Resolution 2008-04. Nawrocki asked if the noise from the alley problem that residents brought up in April was resolved. Sheak stated her understanding was that the City was going to look into that. Fehst stated he did talk to the Police Department but didn't remember what they said as it has been a long time ago. Resident, Alvina Stiren, unit 421, stated the noise is still there. Diehm asked Sheak to contact, Police Chief, Scott Nadeau to investigate the noise issue. Motion by Nawrocki, second by Kelzenberg, to waive the reading of Resolution 2008- 04, there being an ample amount of copies available to the public. All ayes. Motion carried. Motion by Nawrocki, second by Kelzenberg, to approve the consent agenda Items #4 and #5 as listed. All ayes. Motion Carried. HRA RESOLUTION 2008-04 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR APRIL, MAY, JUNE, JULY, AUGUST AND SEPTEMBER OF 2008 AND PAYMENT OF BILLS FOR THE MONTHS OF APRtL, MAY, JUNE, JULY, AUGUST AND SEPTEMBER. WHEREAS, the Columbia Heights Housing and Redevelopment Authority (HRA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money an hand, the purposes to which the money on hand is to be applied, the HRA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the HRA to examine the statement and treasurer's vouchers or bills and if correct, to approve Them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the months of April, May, June, July, August and September of 2008 and the list of bills for the months of April, May, June, July, August and September of 2008 are attached hereto and made a part of this resolution; and WHEREAS, the HRA has examined t/7e financial statement and the list of bills and finds them to be acceptable as to both form and accuracy. 25 Housing & Redevelopment Authority Minutes October 28, 2008 Page 2 of 8 NOW, THEREFORE BE /T RESOLVED by the Board of Commissioners of the Columbia Heights Housing & Redevelopment Authority that it has examined the attached financial statements and list of bills, which are attached hereto and made a part hereof, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the fist of bills as presented in writing are approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution and attachments are to be made a part of the permanent records of the Columbia Heights Housing & Redevelopment Authority. Public Hearing Resolution 2008-05, Public Housing Agency Plan Approval Wilcox-Erhardt explained to the board the PHA plan is required by HUD each year under the Quality Housing and Work Act of 9998. A copy of the PHA plan was provided to Resident Council, the Library, City Hall and Anoka County for review in September. The public hearing notice was advertised in the newspaper. We received written notification from Anoka/Dakota County that the plan is consistent with their plan. We are asking for $904, 000 for 2009. We still have some funding available from 2007 and 2008, which will be used for the 5~" floor Modernization costs. Diehm opened the Public Hearing. There were no public comments. Motion by Kelzenberg, second by Ecklund, to close the Public Hearing. All ayes. Motion Carried. Motion by Kelzenberg, second by Nawrocki, to waive the reading of Resolution 2008- 05, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Kelzenberg, second by Nawrocki, to Adopt Resolution 2008-05, a Resolution of the Columbia Heights Housing and Redevelopment Authority (HRA} confirming approval of the 2009 Public Housing Agency Certifications of Compliance with the PHA plans and related regulations, and authorizing it's submission to HUD. All ayes. Motion Carried. HRA RESOLUTION 2008-05 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT (HRA) CONFIRMING APPROVAL OF THE 2009 PUBLIC HOUSING AGENCY CERTIFICATIONS OF COMPLIANGE WITH THE PHA PLANS AND RELATED REGULATIONS. WHEREAS, The Department of the Housing and Urban Development has requested that Public Housing Agencies submit a Certification in regard to Public Housing Agency Compliance with the PHA Plans and Related Regulations; and WHEREAS, such Certification also requires the formal approval of the Board of Commissioners; NOW THEREFORE BE lT P,ESOLVED, by the Board of Cornmfssioners of the Columbia .Heights Housing & Redevelopment Authority that the attached (Appendix) Public Housing Agency Certifrcations of Compliance with the PHA P/ans and Related Regulations is hereby approved. 26 Housing & Redevelopment Authority Minutes October 28, 2008 Page 3 of 8 BUSIneSS IteCnS Report of Management Company Laura Sheak, Housing Manager said she provided the board with reports for the months of April through September and asked if there were any questions. There were none. Diehm stated she appreciates the additional information that Sheak provides; the calendar and schedule of events, it is very helpful. Resident Council Minutes Denny Ecklund Jr. gave the board an update of the activities that are coming up and that the Bazaar brought in a total of $2, 950. Citizen Forum Resident, Lynn Miner, Unit 202, stated she has a complaint about the school behind Parkview Villa. Kids play in the alley, so there is constant noise. Diehm directed Clark to talk to the Police Department and the owner of the school about these issues and report back to Sheak what he finds out. Sheak asked residents to let her know when they file a report with the Police report, so she can keep track of the incidents. Resolution 2008-06, Adopting the Proposed 2009 Budget for Parkview Villa North Wilcox-Erhardt stated the proposed 2009 budget for Parkview Villa North is $619, 939, whit:-i in%ii,ideS $17 C, ES2o° ur CSpitai viitiaji5. Tile available ba{an~e of the 20x7 a^r~d 2008 CFP funds is $172,143. Supplies and services are generally held at the 2008 budgeted levels. Management services include the North portion of the approved Management Agreement. Utility increases have been budgeted at 5% for electric and gas, 3% for sewer and 2 % for water. The total proposed revenue is $581, 007, which includes rents of $294, 200, HUD's operating subsidy of $270, 000, CFP Funds of $172,143, lnvesfinent Income of $5, 000 and other miscellaneous charges are approximately $11,000, Motion by Kelzenberg, second by Ecklund to waive the reading of Resolution 2008-06, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Kelzenberg; second by Ecklund, to Adopt Resolution 2008-06, a Resolution of the Housing and Redevelopment Authority in and for the City of Columbia Heights, adopting the 2009 Parkview Villa North Budget of $619,939 and recommending this to the City Council for approval. All ayes. Motion Carried. 27 Housing & Redevelopment Authority Minutes October 28, 2008 Page 4 of 8 NRA RESOLUTION 2008-06 RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITYADOPTlNG THE 2009 BUDGET FOR PARKVtEW VILLA NORTH. BE IT RESOLVED Sy the Columbia Heights Housing and RedevelopmentAuthority (HRA) of Columbia Heights, Minnesota as follows: WHEREAS, Parkview Villa North (PVVN), a 101 units rental apartment building, was constructed in 1975 for the purpose of providing affordable housing to seniors and disabled persons. NOW, THEREFORE 8E lT RESOLVED BY THE HRA FOR THE GITY OF COLUMBIA HEIGHTS, MINNESOTA THAT: 1. The HRA adopts and recommends to the City Council for approval the 2009 Parkview Villa North budgef of $619,939. The Executive Director is instructed to transmit a copy of this resolution to the City Manager and City Finance Director of the City of Columbia Heights, Minnesota. Resolution 2008-07, Proposed 2009 Budget for Parkview Villa South Wilcox-Erhardt stated the proposed 2009 budget is $272, 450, which represents a 1 %, or a $933 increase over last year's budget. We feel that we can stay within out expenditures. Management services decreased by approximately $5,300, but was off- set by asimilar amount of increase in utilities and insurance. Supplies and services are expected to remain about the same as 2008 or have minimal increases. Utility costs increases are budgeted at 5% for electric and gas and 2% for water and sewer. The proposed revenues are $312, 678, which includes rents of $308,179, investment income of $2, 500 and other miscellaneous charges. The rent revenue reflects the increase proposed on the rent schedule approved and initiated by the HRA. Nawrocki asked what the rent increase policy that was adopted years ago. Sheak stated the policy used a 4.35% increase for renters that have not paid the market rate. Clark statea star'f would like to bring this item ber`ore the boas' next yeai: lVawrocki asked why there isn `t anything budgeted for interdepartmental labor. Clark stated the way this worked for the last few years was that we use to take the interdepartmental labor services and divide it between the /North and South budgets. That number showed up under line item 3050. Then at the end of the year, with the final reconciliation of the budget, the Finance Department would take that number and put it back under line item number 1070. He felt it was more transparent to the process to take the actual numbers for interdepartmental services and put them under the 1070. Motion by Kelzenberg, second by Ecklund, to waive the reading of Resolution 2008-07, there being an amount of copies available to the public. All ayes. Motion Carried. Motion by Kelzenberg, second by Ecklund, to Adopt Resolution 2008-07, a Resolution of the Housing and Redevelopment Authority in and for the City of Columbia Heights, adopting the 2009 Parkview Villa South Budget of $272,450 and recommending this budget to the City Council for approval. All ayes. Motion Carried. 2a Housing & Redevelopment Authority Minutes October 28, 2008 Page 5 of 8 HRA RESOLUTION 2008-07 RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY ADOPTING THE 2009 BUDGET FOR PARKVIEW VILLA SOUTH. t3E IT RESOLVED ey the Columbia Heights Housing and Redevelopment Authority (HRA) of Columbia Heights, Minnesota as follows: WHEREAS, the City had constructed in 1991 Parkview Villa South (PVVS), a 45-unit rental apartment building, for the purpose of providing housing for low-income seniors age 55 and older. NOW, THEREFORE BE IT RESOLVED BY THE HRA FOR THE CITY OF COLUMBIA HEIGHTS, M-NNESOTA THAT: 9. The HRA adopts and recommends to the City Council for approval the 2009 PVVS budget of $272,450. The Executive Director is instructed to transmit a copy of this resolution fo the City Manager and City Finance Director of the City of Columbia Heights, Minnesota. Approve 5th Floor Modernization Bids Lisa Wilcox-Erhardt stated this is very exciting to see this project finally get off the ground. She introduced Brian Hon, construction manager to explain this item. Hon stated they had a walk through back in September with contractors. Unicorp is again the lowest bidder. The remodeling would include new entry doors, kitchen cabinets, appliances, lighting, countertops, bathroom vanities, kitchen and bathroom faucets, etc., plus new carpeting in the hallways. The bids were advertised in seven different newspapers, which resulting in a total of five bids received. The four lowest bids received were: 1) Unicorp at $902, 600; 2) Lund Martin Construction at $119, 800; 3) Prestige Builders at $123, 900; and 4) Berg Construction Services at $77, 911. Berg Construction sent in a letter withdrawing their bid on October 1, 2008. What isn't in the bids is tha cost of the new appliances. I-le will have those figures next week. Staff recommends approval of the Contract with Unicorp. Diehm asked what would be the difference in the bids for the 5t" floor versus the other floors. Hon stated they are allowing more space between both appliances. Wilcox- Erhardt stated they are also switching out the range hoods. Resident, Terry White, Unit 509, asked what the time line would be for the construction to start. Hon stated construction would start sometime in November. Nawrocki asked what was the reason that the bidder bid so Iow. Hon stated they did not bid correct materials for the cabinets and exterior doors. Nawrocki stated he felt the board should have a board action to record the withdrawal. ltllotion by Nawrocki, second by Kelzenberg, to formally acknowledge the withdrawal of their bid and the non-response to our bid package. All ayes. Motion Carried. Motion by Nawrocki, second by Kelzenberg, to Approve the bids and award the Contract to Unicorp for Phase 5, of Parkview Villa North Apartment Modernization Project to Unicorp far an amount not to exceed $102,60Q; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. All ayes. 29 Housing 8c Redevelopment Authority Minutes October 28, 2008 Page 6 of 8 Motion Carried. Housing Choice Voucher Program for Parkview Villa South Clark stated in a discussion with CommonBond staff it was decided that we would like direction regarding the ability to rent units in Parkview Villa South to individuals that would use the Section8 Voucher Pragram. The Voucher program provides rental assistance where: 1) a renter pays an amount equal to 30 percent of their adjusted income; and 2) the landlord (the HRA) receives from Metro HRA an amount equal to the difference between 30% of the renter's adjusted income and the base rent for a given unit. The subject would receive the same rent, albeit from two different sources. If the board wants to initiate this program, the next question would be how many units to make available to this program. We would suggest a cap of five units. We view that the HRA would have to amend the admissions policy to reflect the change plus memorializing any unit limitations. The only thing different would be to open up the eligibility for renters with a Section8 Voucher to be eligible for the units. Nawrocki asked if this was a different type of housing than we have in the North building. Clark stated yes. There are three types of housing; a PHA program, section 8 housing and the housing choice voucher. Nawrocki asked if current residents could apply for this. Clark stated they could if Metro HRA would open the waiting list. Clark stated there are hundreds of people that currently have a Section 8 Voucher who could apply to the rent fhe units. Sheak gave an example. At one point there wasn't anyone on the south waiting list. A gentlemen came in with a Section 8 Voucher that could pofentially rent in the south building, as he was a Columbia Heights resident, but he could not because we didn't r it r=--- r.-_r_ ... i ... t.....' 6,F ~1... 1`J f;Il nave it%ls progrcd%~l !n pldt~C. CId/K What We are dfscussillg lVlrlg-1l Is carat v/e %ouru rrrr the vacancies in the south building with the addition of this program with a limit of five units. Diehm stated we aren't looking at changing the age or admissions policy, but are looking to open the five units to Section 8 residents to help with the rental process. She then suggested staff bring back to the board a sample contract with information about how the program works. Motion by Kelzenberg, second by Ecklund, to direct staff to bring back to the board information from Metro HRA about a potential Contract, how it works, and what other entities allow for this program; 3% or 5% of the units, for Parkview Villa South to use the Housing Choice Voucher Program. All ayes. Motion Carried. 30 Housing & Redevelopment Authority Minutes October 28, 2008 Page 7 of 8 Laundry Proceeds Policy Discussion Sheila Cartney, Assistant Community Development Director stated in 1999, the HRA adopted a Cash Management Policy for the laundry proceeds at Parkview Villa. The policy ensures a consistent manner of which the cash is handled in the Parkview Villa office. At that time, the City was operating and managing the facility and laundry proceeds were minimal and collected every three months. Currently, due to the increase in cost and use, the money is collected monthly. CommonBond collects the coins, deposits them in the bank and then issues a cashiers check to the Resident Council for half the proceeds. Common8ond's policy is that they cannot issue a check to the Resident Council because they do not have a tax lD number. We want to update the policy and would like the HRA to get a report of expenditures. Staff is also unaware of any records kept by the Resident Council of laundry proceeds including deposits and expenditures. The proposed amendment would require quarterly reports to management and annual reports to the HRA. Nawrocki asked how much money do they get. Sheak stated the Resident Council receives an average amount of $10,220 and the rest is used for electricity, water, repairs, and replacement of the machines if they can't get them fixed using maintenance staff. Diehm directed Cartney to prepare an updated policy far board review at their next meeting. Administrative Resorts Snow Removal Par king Agreement Cartney stated in the past residents have been able to park in the parking ramp at 590 40t"Avenue while the snow has been removed at Parkview Villa. The ramp has been sold to Stadium Village Properties. They will let residents, park in the southeasf corner of the lower level of the ramp. Residents are not guaranteed a parking spot in the designated area as the ramp is and has been on a first come, first serve basis. Stadium Village Properties prefers no overnight parking. Sheak will be providing a map of the area were residents can park in the coming weeks. Letter from Robert Alsop regarding tenant inquiry Diehm stated this item was regarding a letter received by the board months ago, from a resident addressing some issue on the bidding process for management of Parkview Villa. The document was given to our City Attorney, who has provided a letter to the board stating his findings. The letter states the board might want to consider preparing guidelines for future RFP's in order to educate both the Commissioners and the residents as to the proper procedures for requesting, reviewing and selecting proposals ir7 these situationsa Diehm directed staff to put prepare guidelines. Nawrocki stated the minutes should say thaf the investigation by the attorney turned up with no convictions that apply. Diehm directed staff to make sure that text was placed in the minutes, 31 I lousing & Redevelopment Authority Minutes October 28, 2008 Page 8 of 8 Motion by Diehm, second by Kelzenberg, to direct staff to prepare guidelines for future RFP's in order to educate both the Commissioners and the residents as to the proper procedures for requesting, reviewing and selecting proposals. All ayes. Motion Carried. Other Business Diehm stated the next HRA meeting, will be held on Tuesday, January 27, 2009. Diehm asked if Common8ond was checking out the contractors that bid for the modernization contract, as from the last audit, the City was made aware that we should be checking them out on the HUD approved contractors list prior to approving the contract. Wilcox-Erhardt stated CommonBond does this. Clark stated City staff has been checking contracts and has developed a form to document the findings. Adjournment Chair, Diehm adjourned the meeting at 8:29 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:UiRAMinutes 2008110-28-2008 32 Economic Development Authority (EDA) Special Meeting Minutes December 8, 2008 CALL TO ORDER/ROLL CALL President, Gary L. Peterson called the meeting to order at 6:55 p.m. Present: Gary L. Peterson, Tammera Diehm, Bruce Kelzenberg, Bruce Nawrocki, Bobby Williams, Gerry Herringer. Absent: Maclaine Szurek Staff: City Manager, Community Development Director, Assistant Community Development Director PLEDGE OF ALLEGIANCE Res 2008-16, Approving the Terms of Interfund Loan in Connection with K-Mart/Central Avenue TIF District Staff ilztroduced the resolution before the EDA to approve teens of an Interfund Loan in connection with K-mart/Central Avenue TIF district. The interfund loan is for the purchase of a duplex located at 4636 Polk Street. Motion by Diehm, second by Kelzenberg, to waive the Readu1g of Resolution 2008-16, there being an ample amount of copies available to the public. All ayes. Motion Carved. Mohan by Diehm, second by Kelzenberg, to Adopt Resolution 2008-16, a Resolution Approving the terms of an lilterfund Loan in connection with K-MartlCentral Avenue TIF District. Discussion: Nawroclci commented that it is premature to use these funds. He is not sure if we should buy the property at 4636 Polk Street. Clark explained the language of the resolution. Upon Vote: Peterson- aye, Herringer-aye, Kelzenberg -aye, Williams -aye, Nawroclci -nay, Diehzn-aye. Motion Carried. RESOL UTION NO.2008-16 APPROVING THE TERMSOFBJTERFUND LOAN INCONNECTION N~THK--ATART/CENTRAL AVENUE TIFDISTRICT BE IT RESOLVED BY THE BOARD OF COA~MISSIONERS OF THE COLU~LIBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (THE 'AUTHOR/TI"J ASFOLLOIVS: Section 1. Background. 1.01. .The Authority and City of Columbia Heights ("City) have established the K MartJCentral Avenue Tax Increment Financing District (the 'TIF Dish~ct) within the Central Business District Redevelopment Project (the 'Project'), mTd have adopted a tax increment frnmtcing plan ("TIFPIan )for the purpose offrnancing certain improvements within the Project. 1.02. The Authority or City may incur certain costs related to the TIF Dish•ict or Project, i+~hich costs may be frrimrced on a temporary 6asisfront available Authority or Cityfunds. J.03 77ae City, using available City funds, lruends to acquire certain property in the City located at 4636 Polk Street (tlae "Property') within the Project, all or a portion of which Property the Authority or City n:ay use to further redevelopment of the Project. 33 1.04. The Property is not currently within the TIFDistrict, but the Authority intends to expmtd the TIF District boundaries to include Phe Property, as such expmrsion mitt further the Authority's redes~elopment goals and objectives. 1.05. The Authority intends to reimburse the City for the cost ofacquisition of the Properly, closing costs, and demolition (together, the "Oual~ed Costs) from !ax increments derived from the TIF District in accordance with the terms of this resolution (which term are referred to collectively as the "TZFLoan ). Seaton 2. Terms a,~TIFLoan. 2.01. Subject to the conditions described in Section 2.D7, the Authority shall repay, to the City fund from which the Qualified Costs are aaifially paid or advmrced the principal amount of funds advanced not to exceed 8116,500 together i+~ith interest on the principal amount advanced accruingfrmn the date of each initial expenditw•e or advance. For expenditw~s made irr 2008, the interest rate shalt be 8.0%, which is the greater of (aJ the rate specified under Minnesota Statutes, Section 270C40 or (b) the rate specified carder Minnesota Statuses, Section 549.09 for 2008. For expenditures made in 2009, the interest rate shall be reset to the greater of (a) the rate specified under Mimnesota Statutes, Section 270C.40 or (b) the rate specified under Minnesota Statutes, Section 549.09 for 2009. 2.02. Principal and interest ("Payments') shall be paid semi-armually on each .August 1 mrd February 1 ("Payment Dates J, canvnencirtg on the first Pa~mrent Date after the first advance of Qual f ed Costs and continuing through the earlier of (a) the date the principal and accrued interest of the TIF Loan is paid in felt, or (b} the date of last receipt of tax increment from the TIF District. Payments a+~ill be made nz the amount and on/y to dre extent of Available Tax Increment as hereinafter defined Payments stroll be applied first to accrued interest, and their to unpaid principal. Interest accruingfron: the date of each expenditure to the fast Payment Date shall be compounded semimrnually on February 1 mrd August 1 of each year and added to principal, unless othenwise specifred by the Executive Director. 2.03. Payments on this TIF Loma are pa,7rable solely from 'Available Tax Increment,"awlrich shall mean, on each Payment Daie, all of the tax increment generated in the preceding six (6) months with respect to the property within the TIF' District and remitted to the Authority by Anoka County, after deduction of may tax increment allocated to administrative expenses, all in accordance iwtfh Minnesota Statutes, Sections 469.174 to 469.179. Payments orr dais TIF Loan are subordinate to arty outstanding ar future notes or obligations issued to developers or third parties secured in whole or in part with Available Tax Increment, arrd are on parity iwith may other outstanding or future interfund loans secured ira whole or in part r++ith Available Tax Increment. 2.04. 77Te prnrcipal sum and aU accrued interest pa~xtble under this TIF Laan are pre payable in whole or in part at arty time by the Authority rvithoad premium or penalty. No partial prepa~mrent shall affect the amount or timing of arr~+ other regular payment otherwise required io be made wader this TIFLoan. 2.05. T7iis TIF Loan is evidence of an internal borrrnwing by the Authority nr accordance with Minnesota Statutes, Section 469.178, subdivision 7, and is a limited obligarian payable solely from Available Tax bacrernent pledged to the payment hereof under !Iris resolution. This TIT Lomr and the interest hereon shall not be deemed to rnrzstitute a general obligation of the State of Minnesota or arty political subdivision thereof, nrcluding, without limitation, the City. Neither the State of Mmnesota, nor mry pohdcal subdivision thereof shall be obligated to pay the principal of or interest on this TIF Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and crndit nor the taxing prnver of doe State of Minnesota or arty political subdivisior thereof is pledged to the paynrerrt of the principal of or interest on this TIF Lama m• other costs incident hereto. The Authority shall have rao obligation to pay arty principal amount of the TIF Loma or accrued interest thereon, i++hich »ray remain unpaid after doe, final Payment Date. 2.06. Tlae Authority may amend the terms of this TIFLoan at arty fine by resolution of the Board including a deterninaNon to forgive the outstanding principal amount and accrued interest to the ealerat permissible under lm++. 2.07. Nohwithstanding anything to the contrar y herein, as a condition to making any payment wader the TIF Loan, the Audrarity shall approve, and obtain City approval of a mod~catimz of the TIF Plan to include the Property a++ithin the TIFDistrict area. Section 3. Effective Date. This resolution is effecfive upon the date of its apprwaL Adopted dais 8" day of December, 2008. Act g RecordilZg Secretary Sheila Cartney, Assistant Community Development Director 34 OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS TRAFFIC COMMISSION JUNE 2, 2008 CALL TO ORDER The meeting was called to order by Chairperson Carlson at 6:03 p.m. ROLL CALL Members present: Anderson, Carlson, Doty, Goodman, Sturdevant Staff present: Kathy Young, Assistant City Engineer Scott Nadeau, Police Chief Members absent: None. Council Liaison: Bruce ICelzenberg, present L APPOINTMENT OF SECRETARY TO THE TRAFFIC COMMISSION Motion by Carlson seconded by Anderson, to appoint Carol Broermann as Secretary to the Traffic Commission. Motion passed unanimously. II. APPROVAL OF MINUTES Motion by Carlson, seconded by Anderson, to approve the minutes of March 3, 2008, as presented. Motion passed unanimously. Iii, C1L.I,l Fti,JCINE.C$ Commissioner Carlson asked if the stop signs installed on 39"' Avenue could be turned. Kathy Young said staff stated it couldn't be done because of sign placement requirements. IV. OTHER OLD BUSINESS None. V. NEW BUSINESS Ao l'sE~UEST TO CONSTRUCT A DEDICATED TURN LAI`:E ON 49'x' P.VENUE BETt~lEEN FILLMORE STREET AND JOHNSON STREET Mr. Howard Seim of 1425 Molars Terrace requested a dedicated turn lane be designated on 49`x' Avenue between Fillmore Street and Johnson Street. The turn lane has the potential to allow through traffic to continue east bound or west bound on 49°i Avenue when school is in session or when there are special events at the school. 49"' Avenue is a County State Aid Highway and under tl~e jurisdiction of Anolca County. Provided the Traffic Commission and City Council approve the request, staff will request Anoka County do a traffic study of the area to add a dedicated turn lane. 35 Traffic Commission Agenda ,Tune 2, 2008 Page 2 Mr. Seim summarized the problems of traffic congestion in this area with 49`x' Avenue dividing the school district and traffic being congested during school and special events. He outlined several possible solutions but thought that adding a horn lane by eliminating two blocks of parking would be the easiest and most cost-effective way to reduce the traffic problem. Chief Nadeau spoke with school staff and ran an accident report for this area. Accidents weren't a problem, but school staff raised concerns about traffic congestion when special events or school events are going on. Chief Nadeau liked the proposal of removing 12 parking spots to create a tl~rn lane. Commissioners Anderson, Carlson, Doty, and Couneilmember Kelzenberg concurred with this option. Commissioner Goodman favored the idea but thought a traffic study should be done by the County to determine if this is a feasible option. Commissioner Sttirdevant felt traffic congestion was only a problem during special events and thought traffic control could be achieved through the use of traffic police at those times. Motion by Goodman and seconded by Anderson to request a traffic study from Anoka County for 49`'' Avenue NE from Filhnore Street to Johnson Street to add a dedicated horn lane by reducing the parking zone for two blocks. Upon Vote: Commissioner Anderson -Yea, Commissioner Carlson -Yea, Commissioner Doty -Yea, Commissioner Goodman -Yea, Commissioner Sturdevant -Nay. (4-Yeas, 1-Nay -Motion Carried) B. REQUEST TO INSTALL 10 MPH SPEED SIGNS AT THE ALLEY ENTRANCES NORTH OF PARKVIEW LANE Mr Kalinoski has requested a 10 m.p.h, speed limit sign be installed at the alley entrance adjacent to his property. His concern is the speed of traffic. This alley is not typical, because it provides access to the parking lot for the rental units along 47'x' Avciitie. Staff rcCvimn"ieiidS Specd liiiiit5 $igiiS be posted at tiie vr`eSt aid the east alley e;7tral.~es. Commissioner Carlson asked if the 10 M.P.H. sign was in all alleys. Kathy Young, Assistant City Engineer clarified signs were installed on a request basis. Motion by Stt~devant seconded by Anderson, to instal] the 10 m.p.h. speed limit signs at the alley entrances adjacent to 1401 and 1465 Parkview Lane, as presented. Motion passed unanimously. VII. OTHER NEW BUSINESS None. VIII. REPORTS A. CITY ENGINEER -None B. POLICE CHIEF -Chief Nadeau relayed to the coirnnission that reports on traffic accidents could be provided to them by area per their request. C, COMMISSIONERS -None. 36 Traffic Commission Agenda June 2, 2008 Page 3 IX. ADJOURNMENT Motion by Sturdevant, seconded by Goodman, to adjourn the meeting at 6:50 p.m. Motion carried unanimously. Respectfully submitted, ~~z~~ ~3if~~~~~c~ Caro( Broermann Traffic Commission Secretary 37 COLUMBIA HEIGHTS -CITY COUNCIL LETTER Meeting of: February 9, 2009 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY MANAGER'S NO: Administration APPROVAL ITEM: Establish Date for BY: Walt Fehst BY: Annual Board of Review DATE: February 3, 2009 DATE: NO: Anoka County has requested that we select the date for the required annual Board of Review. The tentative date is Monday, April 6, 2009 at 6:00 p.m. in the City Council Chambers. Staff recommends the Council adopt the following motion: Recommended Motion: Move to establish the Local Board of Review meeting date for Monday, April 6, 2009, at 6:00 p.m. in the City Council Chambers. COUNCIL ACTION: 38 CITY COUNCII. LETTER Meeting of: 2/9/09 AGENDA SECTION: CONSENT AGENDA ORIGINATING DEPARTMENT: CITY MANAGER PUBLIC WORKS ITEM: RESOLUTION 2009-25 ACCEPTING THE BY: K. Hansen BY: FEASIBILITY REPORT FOR ZONE 4 ALLEY DATE: 2/5/2009 DATE: RECONSRUCTION AND ORDERING THE PUBLIC IMPROVEMENT HEARING, CITY PROTECT NO. 0902 Background: Staff has developed preliminary plans and prepared the Feasibility Report for alley reconstruction located in the Street Rehabilitation Zone 4. The 2009 Zone 4 Project Area is bounded by University Avenue on the west and Central Avenue on the east, 48th Avenue on the south and extends to 53`d Avenue at the North Corporate Limit. .Analysis /Conclusions: Attached is the Feasibility Report that details the scope of work for Alley Reconstruction for the alley located between Central Avenue and Jackson Street from 49th Avenue to SOt" Avenue in Zone 4. Particular issues are summarized below: 1. Reconstruction: The alley was originally constructed over 30 years ago. The current condition of the alley is poor, and with the recent redevelopment of the businesses along this segment of Central Avenue it is expected to increase the through trips, including heavier delivery and garbage trucks. 2. Utilities Replacement: Utilities have been reviewed in the alley and staff is recommending replacement of water main due to numerous breaks. The water main was installed in 1900. Staff utilized the history of water main breaks, age of water main and services, and previous engineering reports in determining utility replacements. 3. Assessment Methodology: The residential property to the west of the alley do not have any access and are separated from the alley by a fence owned. by the commercial. properties and are not proposed to be included in the assessment for the reconstruction. It is proposed that the commercial properties abutting the alley to the east that use and have direct access to the alley be assessed for the reconstruction. Past practice has used a unit basis assessment methodology in reconstruction areas. Staff has also developed a front foot rate and in this case it may be preferable as the use and access is ail comparable for the commercial/retail properties proposed to be assessed. Continued -Page 2 COUNCIL ACTION: 39 CITY COUNCIL LETTER Meeting o£ 2/9/09 AGENDA SECTION: CONSENT' AGENDA ORIGINATING DEPARTMENT: PUBLIC WORKS ITEM: RESOLUTION 2009-25 ACCEPTING THE BY: K. Hansen FEASIBILITY REPORT FOR ZONE 4 ALLEY DATE: 2/5/2009 RECONSRUCTION AND ORDERING THE PUBLIC IMPROVEMENT HEARING, CITY PROJECT NO. 0902 CITY MANAGER BY: DATE: 4e Scope of Work: Allen Reconstruction The proposed alley would consist of a 14' cross section including concrete curb and gutter along the west side. The surfacing would be concrete or bituminous. The bituminous section has been designed to a 9-ton section for heavier trucks such as delivery and garbage and would match the section already reconstructed when Taco Bell was redeveloped in 2007/08. Utilities Water main replacement is proposed for the northerly 480' of the alley. Staff is not anticipating any water services will need to be replaced. Inoperable stop boxes will be repaired/replaced as required. Screening Fence A requirement of commercial property is to provide screening when abutting residential property. The existing screening is a chain link fence with filler slats inserted, in poor shape. A new cedar wood fence is proposed for this length and is included in the construction cost estimate. 5, Finanlci~a: A,1~ey Recooslru~ct~ao lone 4: The commercial properties are responsible for 100% of the alley reconstruction. The estimated construction costs are as follows: 1. Concrete alley: 2. Bituminous alley: 3. Utilities: $ 139,500. $ 116,250. $ ** Project funding is proposed as follows: Assessments -Concrete alley: $ 139,500. Assessments -Bituminous alley $ 116,250. Water Construction Fund: $ ** The costs and associated. funding for utility work (**) will be further developed during the final design. Continued -Page 3 COUNCIL ACTION: 40 CITY COUNCIL LETTER Meeting of: 2/9/09 AGENDA SECTION: CONSENT AGENDA ORIGINATING DEPARTMENT' PUBLIC WORKS ITEM: RESOLUTION 2009-25 ACCEPTING THE BY: K. Hansen FEASIBILITY REPORT FOR ZONE 4 ALLEY DATE: 2/5/2009 RECONSRUCTION AND ORDERING THE PUBLIC IMPROVEMENT HEARING, CITY PROJECT NO. 0902 CITY MANAGER BY: DATE: 6. Past Assessments: There are no properties affected by this improvement that have had past assessments in the last 10 years. 7. Concurrent Projects: Proposed Zone 4 Street Rehabilitation Projects 8. Meeting Dates: Staff has established the following meeting dates: Public Hearing: March 2, 2009 Because of the small number of parcels affected by the proposed improvements, staff would meet on an individual basis with the property owners to address any questions or concerns. Recommended Motion: Move to waive the reading of Resolution 2009-25, there being ample copies available for the public. Recommended Motion: Move to adopt Resolution No. 2009-25, which accepts the Feasibility Report for Zone 4 Alley Reconstruction, City Project No. 0902, and calling for the Public Improvement Hearing ~ieair~rZinu at h;"~n m nn Marr.h 2 7nn9 KH:cb Attachments: Resolution 2009-25 Feasibility Report Map COUNCIL ACTION: 41 RESOLUTION N0.2009-02 BEING A RESOLUTION ACCEPTING THE FEASIBILITY REPORT FOR ZONE 4 ALLEY RECONSTRUCTION AND ORDERING THE PUBLIC IMPROVEMENT HEARING, CITY PROJECT N0.0902 WHEREAS, the City Council has adopted a Street Rehabilitation Program which divides the City into seven separate zones, and WHEREAS, a report has been prepared by the City Engineer with reference to the Zone 4 Alley Reconstruction, and WHEREAS, Zone 4 Alley Reconstruction is bounded by Central Avenue to Jackson Street, from 49`" to 50`h Avenues, and WHEREAS, the report provides information regarding whether the proposed project is feasible, necessary and cost effective, and Said report is hereby received by the City Council of Columbia Heights on February 9, 2009. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA 1. The Council will consider the improvement of such streets in accordance with the report and the assessment of abutting or benefited property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the improvement of $139,500. 2. A public hearing shall be held on such proposed improvement on the 2°d day of March, 2009, in the City Council Chambers at 590 40`h Avenue N.E. at 6:30 P.M. and the City Clerk shall give mailed and published notice of such hearing and improvement as required by law. Dated. this 9th day of February, 2009. Offered by: Seconded by: Roll Call: Mayor Gary L. Peterson Patricia Muscovitz, CMG City Clerk 42 City of Columbia Heights FEASIBILITY REPORT FOR 2009 ALLEY ~~ECONSTRUCTION INIPT~OVEI~IENTS: Zone 4 CITY PROJ~i;~ 0902 FEBRUARY, 2009 ENGINEERING DEPARTMENT 637 3~`h Avenue NE, Corumbia Height,, MN 55421 763-706-3700 763-706-3701 (Fax) 43 ALLEY RECONSTRUCTION IMPROVEMENTS COLUMBIA HEIGHTS, MINNESOTA ZONE 4 -PROJECT NUMBER 0902 LOCATION: ZONE 4 -AREA BOUNDED BY UNIVERSITY AVENUE SERVICE DRIVE TO CENTRAL AVENUE, 48T'-'AVENUE TO 53RD AVENUE This feasibility study includes an analysis of proposed alley reconstruction within Zone 4. IMPROVEMENTS: Alley Reconstruction - Concrete curb and gutter (west side), granular sub-base if needed, new aggregate base and new concrete or bituminous surfacing and new fence. Utility Construction - Water main construction to improve or maintain the distribution system. Storm sewer replacements and repairs as required. to maintain the collection system. INITIATION: City Council in accordance with the Street Rehabilitation Policy. OWNERS Allen Reconstruction ABUTTING 1. Jackson Street to Central Avenue, 49`" Avenue to 50`" Avenue (4) AND 1 ~,PACTED: ISSUES: The following is a study of the key project issues. Allen Reconstruction The proposed alley would consist of a 14' cross section including concrete curb and gutter along the west side. The surfacing would be concrete or bituminous. Utilities Water main replacement is proposed for the northerly 480' of the alley. This section has recorded 6 water main breaks. There have not been any breaks in the southerly end of the main. Staff is not anticipating any water services will need to be replaced. This is based on the age of homes and businesses (built after 1950). The type and size of water service is field verified during construction. Any water service other than 3/ " or larger copper is replaced. Inoperable stop boxes will be repaired/replaced. 1 44 Screening By City code, commercial/retail property is required to provide screening when adjacent to residential property. The existing screening is provided by a chain link fence with filler slats placed, in poor condition. A new cedar wood fence is proposed to replace the chain link fence and provide the required screening. FEASIBILITY: The proposed improvement project is necessary to provide consistency with the street rehabilitation policy, cost-effective with the inclusion of partial city funding for utility work, and technically feasible as prescribed in the construction recommendations found elsewhere in this report. The project and project elements should be implemented as proposed in this study. The improvements, once completed, will provide a benefit to the properties served. SCHEDULE: Construction is scheduled to begin in late spring of 2009, with substantial completion occurring in the late summer of 2009. Council receives draft Feasibility Report February 2 Council receives final Feasibility Report and orders Public Improvement Hearing February 9 Public Improvement Hearing and Council orders Public Improvement Project March 2 Council Approves Plans and Specifications, Authorizes Advertisement for Bids March 9 Bid Opening April 21 Council Awards Contract April 27 Begin Construction May 18 Construction Completed August 28 FINANCING: Financing would be a combination of assessments to benefitted properties and utility funds. The estimated construction costs for each option are as follows: Type of Construction Proposed Assessments Alley Reconstruction -Concrete $ 139,500. Alley Reconstruction -Bituminous $ 116,250. The assessments reflect a flat fee of 10% of the construction cost included in the amount to assess for a portion of the Engineering and Administration costs. Percentages proposed to be assessed for street rehabilitation are consistent with the policy followed under each of the prior street rehabilitation zones. Utility work performed as part of the Zone 4 project will be paid for from the appropriate utility fund. ASSF,SSM[ENT: Assessments will be in accordance with the City's Street Rehabilitation resolution, policy and past practice. Assessments can be based on a per foot basis or a parcel basis. As only commercial/retail property is involved, a front foot rate may be the method to calculate assessment to the affected parcels. 2 45 2009 IMPROVEMENT PROGRAM COLUMBL~ HEIGHTS, MINNESOTA ESTIMATED ASSESSMENTS -PROJECT N0.0902 ZONE 4 ALLEY RECONSTRUCTION (Section 26, T30N, R24Vt~ I. ALLEY RECONSTRUCTION CONCRETE ALLEY Estimated Cost: Assessable Construction Cost: Assessable Cost per Alley Footage: Estimated Assessed Cost per Parcel: 4910 Central 4920 Central 4950 Central BITUMINOUS ALLEY Estimated Cost: Assessable Construction Cost: Assessable Cost per Alley Footage Estimated Assessed Cost per Parcel: 4910 Central 4920 Central 4950 Central $ 139,500. $ 139,500. $300.00 per L.F. $ 33,600. $ 36,900. $ 69,000. $ 116,250. $ 116,250. $250.00 per L.F. $ 28,000. $ 30,750. $ 57,500. 3 46 j ~ ~ } ~ 5051 S056 ~ ~ C/J 5049 5048 I 5045 s 5040 5031 ~` _. 5032 5025 5024 ~~~~ ~~~ 5018 15019 ~ 5012 ~ 5009 t ~ ~- G ._ 5006 ~ 5001 5000 _ G E ~'n~ o oMO ~ ' 711 ~~~'~ ~ ~ 5055 5054 I 5049. 5048 ' 5043 ` 5042 5035 5036 `` 5031 5030 5025 5019 5024 5018 5013 5012 5007 , 5006 5001 5000 f- U, ~ ~ p~ N ~O O ~n ~n ro m n wiw n n n n~n ..,.n. o cc ' ~ n N ao r `ti .i ~ ~ ti .. O si• O c' .,.M_.,~ oo ~ co cc w ~ ~ .....,._....~~ ~ s ~ o to ~ _ co a., __ cc c ~.. , _.~ ~ ; to O E O r r N O O O '. r r N E M n ~ o o ~ ~ ~ o ~ o O Q> ~' n~~ r~esvrn ~, o ~._:..._~, f ~C y 5060 , uss 50 1 /2 _AVE 027 . _. ~~' o ~ 5025 E Q cn '~ o! v o~ j o N o ur 0 5021 5050 O O ~ ~ N O O O{ r N N '~ tf i LL1 ~ ti N r• r o 0 0; w oo co ..-o Z 5Q1.9 t Q _--t. o ~ 5013 ~ 5011 ~ "' ~ Z r. r' N o' o o ~ ~' N c~ i- 7 ~ ,, 5000 O' 5001 ~ ti r` o w ~ o0 0o ea , ~ ~ Q 5001 _w ___ --~L.__.,. ~ L_..._ '---_ 4957 4956, 49mm~ ~___: 4947 4946 4941 4940 4937 4936 ____ 4955 ~ co _ N o O o T ono N .~ 4949 r. ; ~ r` o i o 0 o m o ., v _ _ ~ 4941 4935 a to •- , ~ _... 6! ' tt) ~- r- N! O ti n co _ to ~ O 00 ___ Cn O 00 ; M ~ r 0 ._, O ~ 0 u7 N o v `_ M cn ~ _ _! 4931 4930 _. 49 1 /2 AVE 4927• ~ 4926 ~~ ~~ N ~ O s ;,_ 4925 ~, °r° ~ N °o o { a r °r° N ~ v 4921 4920 4917 r r n , ao ao ca , o0 00 00 ,.~ _._...~ o 4915 4910r _~ ~- r ~~~ ~ ~ .. _._ 4909 4907.._ : 685 ~ 705 n ~ ~ ~ a°o coa , oo~ a`-o a~ ~ °o 4901 ! ~ ~.. r_~ ! _._ _.... 4857 4856 4853 4860 4851 4850 4847 4854 4845 4844 4841 4852 47 4950 _.~ 4920 4910 4900 W Z W LEGEND Full Alley Reconstruction Water Main Replacement d J ~ CITY OF COLUMBIA HEIGHTS I--' W GIS !ENGINEERING DEPARTMENT °'°^ ~ M D t ~ ap a e: January, 2009 U Map Author: K Young COLUMBIA HEIGHTS CITY COUNCIL LETTER Meeting o£ February 9, 2009 AGENDA SECTION: Consent ORIGINATING DEPARTMENT: CITY MANAGER'S NO: Community Development APPROVAL ITEM: Adopt Resolution 2009-23, Second BY: Sheila Cartney BY: Amendment to Amended and Restated Contract for DATE: February 3, 2009 Private Redevelopment-Huset Park BACKGROUND• On October 25, 2004 the City, EDA and Huset Park Development Corporation entered into contract for private redevelopment of the "Industrial Park." On August 1, 2007 the same parties agreed and entered into an Amended and Restated Contract for Private Redevelopment. The "Minimum Improvements" in the contract is broken out into phases and includes three different housing types and one commercial space. According to the contract there are to be a total of 277 townhouse units, 50 senior units, and 183 condominium or cooperative housing units and 11,650 square feet of commercial space. Due to the down turn in the housing market and economic conditions, Schafer Richardson has requested completion date amendments to the development contract. The following table represents the amendments requested per phase. Section 4.3(c) states "if the Redeveloper is making substantial progress with respect to the redevelopment project, and is unable to meet one or more of the above-referenced deadlines, the Authority and Redeveloper shall negotiate in good faith for a reasonable period to extend the time in which necessary action(s) must be taken or occur, the lapse of which time would otherwise constitute a default of this Agreement." Phase Ori final Date Pro osed Date IB Housin Com Iete b 12/31/2008 Com lete b 4/30/2011 IIA Housin Com lete b 4/30/09 Com lete b 6/1/2010 IIB Housin Com lete b 12/31/09 Com lete 7/]./2012 IIIA Housing and Commercial Commence by 12/31 /08 complete by 12/3 U2010 Commence by 4/I/2010 Complete by 4/1/2012 IIIB Housing Commence by 12/31/2010 complete by 12/31/1012 Commence by 12/31/2012 complete by 12/31/2014 IIIC Housing Commence by 12/31/2012 complete by 12/31/2014 Commence by 12/31/2014 complete by 12/31 /20I The EDA reviewed the proposed amendment at their special meeting of February 9, 2009. RECOMMENDATION: Staff recommends the City Council Adopt Resolution 2009-23 to amend the redevelopment contract as requested to change commencement and completion dates for the Huset Park/Parkview Redevelopment. RECOMMENDED MOTION: Motion: Move to waive the reading of resolution 2009-23, there being an ample amount of copies available to the public. Motion: Move to Adopt Resolution 2009-23, a Resolution Approving a Second Amendment to Amended and Restated Contract for Private Redevelopment between the Columbia Heights Economic Development Authority, the City of Columbia Heights and Huset Park Development Corporation; and furthermore, to authorize the Mayor ar~d City Manager to enter into an agreement for the same. Attachments: Resolution, Amendment, Pro'ect a date from Shafer Richardson, Phase Ma COUNCIL ACTION: 48 CITY OF COLUMBIA HEIGHTS RESOLUTION N0.2009-23 RESOLUTION APPROVING A SECOND AMENDMENT TO AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF COLUMBIA HEIGHT'S AND HUSET PARK DEVELOPMENT CORPORATION BE IT RESOLVED By the City Council ("Council") of the City of Columbia Heights, Minnesota ("City") as follows: Section 1. Recitals. 1.01. The Columbia Heights Economic Development Authority ("Authority") has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ("EDA Act"), and is currently administering the Downtown CBD Redevelopment Project ("Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"). 1.02. The Authority, the City and Huset Park Development Corporation (the "`Redeveloper'") entered into a into a Contract for Private Redevelopment dated as of October 25, 2004, as amended by a First Amendment thereto dated June 16, 2008 (the "Contract"), setting forth the terms and conditions of redevelopment of certain property within the Redevelopment Project, generally located east of University Avenue and south and west of Huset Park . 1.03. The parties have determined a need to modify the Contract in certain respects, and have caused to be prepared a Second Amendment to Amended and Restated Contract for Private Redevelopment (the "Amended Contract"). 1.04. The Council has reviewed the Amended Contract and finds that the execution thereaf and performance of the City's obligations thereunder are in the best interest of the City and its residents. Section 2. City Approval; Further Proceedings. 2.01, The Amended Contract as presented to the Council is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the Mayor and City Manager, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The Mayor and City Manager are hereby authorized to execute on behalf of the City the Amended Contract and any documents referenced therein requiring execution by the City, and to carry out, on behalf of the City its obligations thereunder. 49 Approved by the City Council of the City of Columbia Heights, Minnesota this 9t" day of February, 2009. Offered By: Second By: Roll Call: Mayor Gary L. Peterson ATTEST: Patricia Muscovitz CMC City Clerk 2 50 SECOND AMENDMENT TO AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT THIS AGREEMENT, made on or as of the day of , 2009, by and between COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, COLUMBIA HEIGHTS, MINNESOTA, a public body corporate and politic (the "Authority"), established pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (hereinafter referred to as the "Act"), the CITY OF COLUMBIA HEIGHTS, a Minnesota municipal corporation (the "City") and HUSET PARK DEVELOPMENT CORPORATION, a Minnesota corporation (the "Redeveloper"). WIT'NESSETH: WHEREAS, the parties hereto entered into that certain Amended and Restated Contract for Private Redevelopment dated as of August 1, 2007, as amended by a First Amendment thereto dated as of June 16, 2008 (the "Contract"), providing for redevelopment of certain property in the City described as the Redevelopment Property; and WHEREAS, the parties have determined a need to amend the Contract in certain respects, in light of changing market conditions. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: Section 4.3 of the Contract is modified as follows (italicized language shows revision): Section 4.3. Completion of Construction. (a) Subject to Unavoidable Delays and the provisions of paragraphs (b), (c) and (d) below, the Minimum Improvements must be constructed in accordance with the following schedule: Phase I: As of the date of the Amended and Restated Contract, the internal site improvements and at least 80 percent of the required number of units for Phase IA are complete. Redeveloper must substantially complete all internal site imnroverne>nts fnr Phase TB; including roads; and at least 80 percent of required number of housing units for Phase IB, by April 30, 2011. Phase II: As of the date of the Amended and Restated Contract, Phase IIA is under construction. Redeveloper must substantially complete all internal site improvements, including roads, together with at least 80 percent of required number of housing units for Phase IIA, by June 30, 2010. Redeveloper must substantially complete all internal site improvements, including roads, together with at least 80 percent of required number of housing units for Phase IIB, by July 31, 2012. Phase III: Redeveloper must construct and complete all internal site improvements, including roads, and at least 80 percent of the required. number of housing units, according to the following schedule: Phase ILIA: Commence by Apf°il 30, 2010; complete by April 30, 2012. Phase IIIB: Commence by December 31, 2012; complete by December 3l, 201. Phase IIIC: Commence by December 31, 201; complete by December 3l, 2016. 2. The Contract remains in full force and effect and is not modified except as expressly provided herein. 51 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Redeveloper has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By Its President -Gary L. Peterson By Its Executive Director -Walter R. Fehst CITY OF COLUMBIA HEIGHTS By Its Mayor -Gary L. Peterson. By Its City Manager- Walter R. Fehst HUSET PARK DEVELOPMENT CORPORATION By President and Chief Executive Officer CONSENT BY ASSIGNEE The undersigned, as assignee of certain rights of Redeveloper under the attached Amended and Restated Contract for Private Redevelopment (the "Amended Contract"}, hereby consent to all terms of the Amended Contract; provided that nothing in this consent will alter or affect the rights of undersigned under the Agreement of Purchase and Sale (Finished Lots) between The Ryland Group, Inc. and Redeveloper dated April 18, 2005, as amended. THE RYLAND GROUP, INC. By Its CONSENT BY ASSIGNEE The undersigned, as assignee of certain rights of Redeveloper under the attached Amended and Restated Contract for Private Redevelopment (the "Amended Contract"), hereby consent to all terms of the Amended Contract. PARKVIEW HOMES, LLC By Its 52 Page 1 ~` Sheila C~trtney -Update to EDA on IIuset Pariz T'rom: "Maureen Michalski" <natnichalslci{a7sr-re.cam> To: "Sheila Cartney" <Sheila.Cartney crci.colttmbia-heights.mn.us> Date: 1/3012009 9:24 AM Subject: Update to EDA on Huset Park CC: "Brad Schafer" <bschafer(7asr-re.com>, "Sonstegard, Marlc" <msansteg tztyland.eom> Attachments: Status update to EDA 1-28-09.doc Sheila, Please find attached the update you requested for the EDA packet on Huset Park. As I mentioned, the extension of dates we are requesting ale based mainly on our anticipated sale of lots to Ryland I-lames and then subsequent development on the lots. We ~vauid all be very pleased if the target dates on this schedule shift to a sooner timeframe- the sooner we are able to sell lots and townhomes, the better it is for all of us. However, we want to be clear in communicating with the city the realities of the mulcet, and oiu requested extension dates are the best we can predict at this time. I also would like to reiterate that if the city or 1•JDA has partners, or projects in mind, that would allow for development of the Phase III portion of the site in a sooner timefratne, we are very willing to consider those opportunities. I plan on attenduig the EDA meetuig on the 9~'- can you please clarify tivhat time I should plan on being there? Please let ine know if I can answer any additional questions or provide further information. Also, if l need to come prepared with further information on the )~' please let the know. Thank you, Maureen Michalsl~ Project Manager Schafer Richardson, Inc. Direct- 612-359-5842 1Vlolaile- t 12-599-9945 ta-~ michalsl~i@s r-re. cozn ale:/lC:lDacurnents and SettingslCCH-User\Local Se~t~ngs\TemplXPgrpwise\4982C733cchgw... 1/30/2009 Huset Park Development- Update of Status 1-30-09 Phase IA- To date all site improvements have been made and all 123 townhome units in Phase IA have been completed. All Ryland Homes (Ryland) units have been sold in this phase except the three model units, and five units developed by Huset Park Development Corporation (HPDC} remain to be sold. In 2008 Ryland sold 5 units and HPDC sold 1 unit in Phase I. Phase IB- This site, located at the east side of Phase IA along Jefferson Street, is planned to be senior housing. Half of the site will be developed by the National Handicapped Housing Institute (NHHI) and half of the site will be developed by Huset Park Development Corporation. Because these buildings will share a party wall it is planned that construction of the two portions will be very close to concurrent. In June of 2008 the National Handicapped Housing Institute placed an application to the U.S. Department of Housing and Urban Development (HUD) for funds to construct their portion of the development. NHHI received notice in fall of 2008 that the application had been ``technically rejected" because of one existing monitoring well on the site. Once technically rejected an application is removed from consideration for funding in that round. HUD will not meet with NHHI and HPDC until after announcement of awards from the 2008 funding round, which is why we are currently in a holding pattern. Once they announce the 2008 awards we will immediately schedule a meeting with HUD to discuss the technical rejection and a 2009 funding application. In discussions with ProSource, the environmental consulting firm on this project, they anticipate that the monitoring well that caused this technical rejection will be "abandoned" in spring of 2009 after Minnesota Pollution Control Agency (MPCA) has granted approval. It is currently anticipated that the 2009 HUD SuperNOFA will have applications due in the early part of summer, for which NHHI intends to apply unless there is a further issue with the "technical rejection." If successful in the 2009 round, NHHI would be notified of funding in early 2010 and we would anticipate construction of the two senior buildings at this site beginning in late summer/early fall of 201.0, and opening for occupancy approximately one year later. Phase IIA- This phase is currently under construction. In this phase there are 39 townhomes built, with another 8 currently under construction, for a total of 47 townhomes. Ryland has sold. 44 homes to date in Phase IIA, of which 11 sales were in 2008. Ryland currently has site control of 16 additional townhome lots (two, eight-lot building pads) in this phase. Ryland will not begin construction on either of these buildings until 50% of the units within a building are pre-sold. To date, there is only one purchase agreement associated 54 with these buildings, Ryland has been actively selling these two, eight lot building pads since they acquired these parcels from Huset Park Development Corporation on October 31, 2008. The remaining schedule for Ryland purchasing lots from Huset Park Development Corporation for this phase is as follows: 18 lots by Apri130, 2009 18 Lots by December 31, 2009 18 Lots by September 30, 20l 0 (4 of which are in Phase IIA) This is per our current Purchase and Sale Agreement with Ryland Homes. This agreement requires Ryland Homes to purchase lots from Huset Park Development Corporation NO LATER than these dates. However, if there is a demand for townhome units at this location Ryland Homes would likely purchase these lots from Huset Park Development Corporation sooner and begin construction on the townhomes. Phase IIB- Site improvements, including streets and utilities, have not yet been constructed for this phase, and this portion of the site has not yet been re-platted. Per our current Purchase and Sale Agreement with Ryland Homes the schedule for Ryland's purchase of lots from HPDC for this phase is: 18 Lots by September 30, 2010 (14 of which are in Phase IIB} 18 Lots by March 31, 2011 12 Lots by September 30, 2011 It is currently anticipated that Huset Park Development Corporation will undertake the site improvements necessary for this phase in summer of 2010. Phase III- As planned, Phase III is scheduled to be a mixed use development. Site improvements and re-platting have not yet occurred for this phase of the development. Schafer Richardson is actively marketing this land for potential commercial/mixed use opportunities through: Minnesota Commercial Association of Realtors (MNCAR), CCIM Loopnet, the Schafer Richardson website, and email blasts to brokers on a regular basis. 55 ,~. ~~ ~'. ~, ;~ P ~~ 'i SCD~D~ULE B MASTER SITE PL.~T ~~~ ~ 17 ~'1~EL~3•P.~ L~`NT`T` ~ 4'J P~~i 1~'1.°i'~I ~5bt HIS. ~ P'3;~' t~unri4la, F{cig~la, TI~t+~ nfuarncy 2l~i El~'~ 33388Sv5 SJB CL~205-23 ' B-1 56 ~~R~a~ ~- ~ I -' -~,; ~~~~ are.attTCxruwm~ COLUMBIA HEIGHTS CITY COUNCIL LETTER Meeting of: February 9, 2009 AGENDA SECTION: Consent ORIGINATING DEPARTMENT: CITY NO: Community Development MANAGER'S APPROVAL ITEM: Approve Orders Declaring property BY: Sheila Cartney BY: at 4039 St" Street a Hazardous DATE: February 2, 2009 Buildin BACKGROUND: The Building Official conducted an inspection at 4039 5`" Street on December l6, 2008. The inspection revealed that the structure constitutes a hazard to public safety or health in that the structure was seriously damaged in a fire, resulting in deficiencies in the structural integrity and serviceability of the mechanical and plumbing systems, which render the structure unsalvageable. The Orders require the structure to be razed and removed by May 15, 2009. RECOMMENDATION: Staff recommends approving orders declaring the property at 4039 5`'' Street hazardous. RECOMMENDED MOTION: Move to approve orders declaring the property located at 4039 St" Street a Hazardous building. Attachments: Orders, Photos o the site COUTICIL, P.CTION: 57 STATE OF MINNESOTA COUNTY OI~ ANOKA Order of the City Council of Cahtmbia Heights, Anol<a County, Minnesota concerning hazardous building an property located at: 4039 5`~' St. NE Columbia I-teights, Minnesota legally cleseribcd as: Lot 25 Block 52 Calunlbia Heights Annex to MlnneapOllS, AnOICa Coutlty, MII1nes0ta PIN: 35-30-24-3I-0055 TU: ~. M. Granroos, Ownee Charles Storlic, Owner DISTRICT COURT TENTH ,1UDICIAL DISTRICT CASE TYPE: 14 -OTHER COURT FILE NO. Pursuant to Minnesota Statutes ~~163.15, et secy., the City Council of the City of Columbia Heights having duly cotlsiclered the matter, finds the structure located on the above clescribeci property to be a hazardous building for the reasons set forth herein. The Building Official for the City of Colombia Heights has inspected the above referenced structut°e, The inspection revealed that the structure constitutes a hazard to public safety or health in that the structure was seriously damaged in a fire, resulting in deficiencies in the stt°UC1Ut°al ttltegl'lty alld SeCVlceablllty Of the n1CC11a111Ca1 and plumbing systems which render the structure unsalvageable. The inspectian report is attached as Exhibit A and made a part hereof. Pursuant to the foregoing and attached Exhibit A, in accordance with Minn. Scat. ,x'463.16, the structure on the above-referenced property shall be razed antl removed by May 1 S, 2009. Additionally, city water and sewer connections at the mains must be severed anti gas and electrical services to structure shall 11e disconnected no later than May 15, 2009. 58 A motion for summary enforcement of this Order will be made to the Anolca Counly Distt•ict Court unless the action ordered herein is taken within the prescribed time fi•au~e or unless an answer is filed within twenty (20} days from the date of service of this Order. lvloreover, you at°e advised that if the City of Columbia Heights is compelled to take any action to abate these hazardous eonciitions, a[1 necessary costs expended by the City will be assessed against the real estate and collected as other taxes as provided in Minn. Star. 5463.21. Dated this day of , 2009. BY ORllLR OI+ THL CITY UI' COLUMBIA HLIGII'I'S Gary l?eterson, Mayor Walt r'ehst, City Manager 304511 59 EXHIBIT A Deeenlbez° 23, 2008 Manuel Crl'alli'05s l 114 63"' avenue NE Fridley, MN 55432 Re: 4039 5`~' St. NE Columbia Heights, MN Dear Manuel, On Deeeznbez° 16t~', 2008 I was invited to the above reference address to make a damage assessment of the property due to fire. Upon arrival I proceeded to the front door of the residence and knocked. People inside instructed lee to come on in. I introduced myself as the City of Columbia Heights Building Official. Present at the site were yourself, two individuals from the insurance company, your mother, your zuothcr's sister and two individuals fiolll a restoration company. I proceeded dawn into the basement to observe the fire damage. Dul•izlg my investigation and assessment I witnessed the following def ciencies with the structural integrity of the building and serviceability of the mechanical and plumbing systems: l . The structural beams have a permanent sag in them caused by the excessive heat during the fire. The entire structural steel support system appears to also be inadequate in terms of structural bearing. The steel beams are supported on 4" Cement Masonry Units. 4" CMUs are not rated fol- continuous load path bearing. 2. Approximately 1/3 of the floor joists are charred to the point of cracking, leaking them structurally unsound. 3. Sub-#7oor in the same area is charred coznpromisillg the structtiu•al integrity of the floor system. 4. The electrical system reached temperatures causing the jacket to melt off of the conductors. 5. The electrical service panel was exposed to temperatures in excess of the panel ratings. G. The filrnace was exposed to the extreme heat compromising the working conlponellts of the lleatulg system. 7. The ductwork reached tcmperatul•es causing the galvanizing to melt off the ductwork. 8. Water piping was compromised due to the high temperatures. 9. The water heater drain valve was leaking due to being exposed to the high temperatures, 60 I l~zave assessed the property undez• Minnesota Statutes 463.15-26 Hazardous and Substandard buildings. My recommendation to the City Council will be to have the structure razed due to the amount of damage to structural, electz•ical and mechanical systems. I will be forwarding my recommendation to the City Council for their considerations and decision as whether or not to order the removal of the primary structure. With safety being my primary concern, at this time I will be placing a placard on the structure indicating the building is deemed unsafe for human occupancy. It is unlawful far any person to occupy or reside in this building under Section 1300.0180 of the Building Code of the State of Minnesota. This placard will remain in effect until the structure is Lazed. Written authorization is required fz•om the Building Official, or his authorized agent, for anyone to enter the structure for either providing assessments or removal of personal property. Please allotiv adequate time to prepare the authorization letter for entry to the property. The letter must be in hand in order to access the property. The letter will state the tune(s) and date{s} of access. If the City Council votes to have the building razed, you as the owner, or representative of the owner, will be responsible for the removal of the structure in the time specified by the Ctty Council. This will include the "killing" of both the city water and city sewer cozureetions at the mains. In addition, disconnection of both electt•ical and gas service to the structure will be required. Recommendation by my office will be to extend the removal pez•iod to May 15, 2009 due to the added costs of killing the utilities through frozen ground acrd excavation of the street during winter months. If you have any questions or would like to discuss my findings you can call me at {763}706-3677. Yours tr Orly, Lawrence R. Pepin Building Official #2379 Ce Scott Clark, Conununity Development Director Jim Hoeft, City f~ttarney Walt Fehst, City Manager Gary Garman, Fire Chief Scott Nadeau, Police Chief Squad Roorn 61 ~ ~~~ e ~ ~~_ ,. I ,;~ ~„ r.. ~' ~ x r V ~ Z ... 'Uf ~ i ~~~~ ~t~'u~~ ~ ~rl ,t 1 f ~~~ `~~`.!, ~ :~ r ~ Y i V,`~ __ ~- U +~. ~~. ,' ~: ,t , ~, ;. :2u 1!;,' P~ ~: CITY COUNCIL LETTER Meeting of February 9, 2009 AGENDA SECTION: CONSENT ORIGINATING DEPARTMENT: CITY Fire MANAGER NO: APPROVAL ITEM: REISSUE RENTAL BY: Gary Gorman BY: LICENSE NO: DATE: February 3, 2009 DATE: The matter of the revocation of the license to operate a rental unit(s) within the City of Columbia Heights against Perry Avenue Partnership, LLC located at 3923 Main Street N.E. for failure to meet the requirements of the Property Maintenance Code. The owner has corrected ali violations and paid all fees and penalties. RECOMMENDED MOTION: Move to issue arental-housing license to Perry Avenue Partnership, LLC to operate the rental property located at 3923 Main Street N.E. in that the provisions of the residential maintenance code have been complied with. COUNCIL ACTION: 68 CITY COUNCIL LETTER Meeting o£ February 9, 2009 AGENDA SECTION: ORIGINATING DEPT.: CITY MANAGER NO: License Department APPROVAL ITEM: License Agenda BY: Shelley Hanson DATE: NO: DATE: Feb.4, 2009 BY: BACKGROUND/ANALYSIS Attached is the business license agenda for the February 9, 2009 Council meeting. This agenda consists of applications far Contractor licenses for 2009. At the top of the license agenda you will notice a phrase stating *Signed Waiver Form Accompanied Application. This means that the data privacy form has been submitted as required. If not submitted, certain information cannot be released to the public. RECO ED 1lfIOTIN: Move to approve the items as listed. on the business license agenda for February 9, 2009 as presented. COUNCIL ACTION: 69 TO CITY COUNCIL February 9, 2009 *Signed Waiver Form Accompanied Application CONTRACTOR'S LICENSES 2009 BLDG * Reliable Tree Service 6600 Brookview Dr, Fridley $60.00 * Metro Tree and Stump 10101 Naples St NE, Blaine $60.00 GTI Inc 1817 180`" Ave, Canby $60.00 Overhead Door Co 3195 Terminal Rd, Eagan $60.00 Tw. City Tile Marble Co 900 Montreal Cir, St Paul $60.00 Tw City Acoustics Inc 2655 Cheshire Ln No, Plymouth $60.00 *Gary Ford/Metro Testing 31222 Cedar Creek Rd, Hinckley $60.00 *Citywide Plumbing LLC 2059 123rd Ave NW, Coon Rapids $60.00 *Tim's Quality Plumbing 523 Central Ave, Osseo $60.00 *AI's Master Plumbing 1424 3rd St N, Mpls $60.00 McQuillan. Bros PI/Htg 688 Hague Ave, St Paul $60.00 *St Paul Plumb & Htg 640 Grand Ave, St Paul $60.00 *Restoration Services 636 39`" Ave, Col. Hts $60.00 *MD Mechanical Inc 5123 60`" St SE, St Cloud $60.00 *Air Design Inc 1500 122nd Lane NE, Blaine $60.00 Corporate Mechanical Inc 5114 Hillsboro Ave N, New Hope $60.00 *Spectrum Sign 2025 Gateway Cir #2, Centerville $60.00 70 CITY OF COLUMBIA HEIGHTS FINANCE DEPARTMENT COUNCIL MEETING OF: February 9, 2009 STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS Motion to approve payment of bills out of the proper funds, as listed in the attached check register covering Check Number 129045 through 129227 in the amount of $ 2 827 045.4b These checks have been examined and found to be legal charges against the CITY OF COLUMBIA HEIGHTS, and are herby, recommended for payment. 71 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 02/06/2009 11:44:00 Check History GL050S-V06.74 COVERPAGE GL540R ******************************************************************************* * *** :L E A N N O * *** L E A N N O * *** L E A N N O** * *** L E A N N O ******************************************************************************* Report Selection: Optional Report Title.......02/09/2009 COUNCIL LISTING INCLUSIONS: Fund & Account .............. Check Date .................. Source Codes ................ Journal Entry Dates......... Journal Entry Ids........... Check Number ................ Project ..................... Vendor ...................... Invoice ..................... Purchase Order .............. Bank ........................ Voucher .................... Released Date ............... Cleared Date ................ Include Exp/Rev Closing Entries thru thru thru thru thru 129045 thru 129227 thru thru thru thru thru thru thru thru N Run Instructions: Jobq Banner Copies Form Printer Hold Space LPI Lines CPI CP SP J LEANNO O1 P4 Y S 6 066 10 Y Y 72 ACS FINANCIAL SYSTEM 02/06/2009 11 BANK VENDOR BANK CHECKING ACCOUNT CITY OF COLUMBIA HEIGHTS Check History GL540R-V06.74 PAGE 1 02/09/2009 COUNCIL LISTING CHECK NUMBER AMOUNT CITY OF COLUMBIA HEIGHTS 129045 141,622.86 NORTHEAST BANK 129046 1,384,801.04 RICE CREEK WATERSHED DIS 129047 2,500.00 AMERIPRIDE LINEN INC 129048 218.92 ANOKA COUNTY LIBRARY 129049 3,515.50 ANOKA COUNTY SHERIFFS DE 129050 46.00 ASPEN MILLS, INC. 129051 21.30 BRISTOL/KENNETH & KARI 129052 7.59 BURNET TITLE CO 129053 152.32 CENTER POINT ENERGY 129054 16,676.67 CHERNIN/ALEKSANDR 129055 180.00 CHISAGO LAKES DISTRIBUTI 129056 33.55 COCA-COLA BOTTLING MIDWE 129057 1,507.60 COLDWELL BANKER 129058 25.00 DUFFY/CAROL 129059 30.00 FELBER/ANNE 129060 78.80 FIRST AMERICAN TITLE 129061 351.93 FLAHERTYS HAPPY TYME COM 129062 608.30 FRESHWATER SOCIETY 129063 125.00 GORMAN/GARY 129064 60.00 HALVORSON/JUSTIN 129065 465.87 T.-IINRICHS/JACOB 129066 5.99 IDEARC MEDIA CORP 129067 61.75 INTOXIMETER INC 129068 59.11 JOHNSTON/ERIK 129069 66.37 LARKIN/JOHN 129070 116.01 LEAGUE OF MN CITIES INS 129071 45,695.75 MAHCO 129072 30.00 MORTGAGE ELECTRONIC 129073 94.99 NORTHEAST BANK 129074 64,616.08 OFFICE DEPOT 129075 35.51 OTTNEY/LEANN 129076 7.92 PAUSTIS & SONS WINE COMP 129077 1,234.64 PERFORMANCE OFFICE PAPER 129078 486.92 PETTY CASH - LIZ BRAY 129079 33.89 PHILLIPS WINE & SPIRITS 129080 518.32 QWEST BUSINESS SERVICES 129081 541.77 WEST COMMUNICATIONS 129082 823.94 RICOH AMERICAS CORPORATI 129083 338.44 SPRINT INC 129084 113.22 STREICHER'S GUN'S INC/DO 129085 20.22 USA MOBILITY WIRELESS IN 129086 100.43 rdELLS FARGO 129087 40.83 XCEL ENERGY (N S P) 129088 20,728.40 AANERUD/MELVIN 129090 500.00 ACE HARDWARE 129091 15.29 ALCOHOL & GAMBLING ENFOR 129092 250.00 73 ACS FINANCIAL SYSTEM 02/06/2009 11 BANK VENDOR BANK CHECKING ACCOUNT CITY OF COLUMBIA HEIGHTS Check History GL540R-V06.74 PAGE 2 02/09/2009 COUNCIL LISTING CHECK NUMBER AMOUNT ALLIED-BFI WASTE SYSTEMS 129093 89,661.61 AMERICAN BOTTLING COMPAN 129094 327.80 AMERICAN LIBERTY CONSTRC 129095 58,652.22 AMERIPRIDE LINEN INC 129096 16.03 ANOKA COUNTY CHIEFS OF P 129097 227.00 ASPEN MILLS, INC. 129098 137.90 BARNICK/ROBERT & PRISCIL 129099 1,047.00 BELAIR EXCAVATING 129100 5,463.00 BELLBOY BAR SUPPLY 129101 434.82 BELLBOY CORPORATION 129102 8,831.57 BIFF'S,INC. 129103 585.19 BONESTROO 129104 500.00 BRAUN INTERTEC CORP 129105 315.00 BRECKENITCH/LAURIE 129106 47.92 C. ADLER MARTIAL ARTS SE 129107 591.50 CAPITOL BEVERAGE SALES L 129108 35,912.89 CHISAGO LAKES DISTRIBUTI 129109 8,449.98 COCA-COLA BOTTLING MIDWE 129110 372.02 COLUMBIA HEIGHTS TRANSIT 129111 7,213.00 CREST VIEW ONDC 1 129112 21,008.00 DANIMAL DISTRIBUTING INC 129113 795.12 DEX MEDIA EAST LLC 129114 545.50 EGAN OIL COMPANY 129115 6,492.20 EARNER-BOCKEN 129116 8,115.34 GENUINE PARTS/NAPA AUTO 129117 62.98 GRIGGS-COOPER & CO 129118 39,704.53 GS DIRECT 129119 18.08 HOHENSTEINS INC 129120 1,002.25 HONEYWELL INC 129121 152,650.00 INDEPENDENT SCHOOL DIST 129122 329,581.16 JJ TAYLOR DIST OF MN 129123 9,554.90 JOHNSON BROS. LIQUOR CO. 129124 75,253.80 KIMLEY-HORN & ASSOCIATES 129125 3,932.60 LEESE/STEVE 129126 134.99 MARK VII DIST. 129127 13,418.54 MEDICINE LAKE TOURS 129128 774.00 MENARDS CASHWAY LUMBER-F 129129 192.38 MN DEPT OF ADMINISTRATIO 129130 331.10 MN REC & PK ASSOC - MRP 129131 45.00 OLSON/GREG 129132 129.87 PAUSTIS & SONS WINE COMP 129133 3,422.06 PETTY CASH - KAREN MOELL 129134 174.70 PETTY CASH - KAREN OLSON 129135 125.80 PHILLIPS WINE & SPIRITS 129136 20,301.88 PROSOURCE TECHNOLOGIES I 129137 7,476.57 QUALITY WINE & SPIRITS 129138 21,385.17 QWEST COMMUNICATIONS 129139 39.84 74 ACS FINANCIAL SYSTEM 02/06/2009 11 BANK VENDOR BANK CHECKING ACCOUNT CITY OF COLUMBIA HEIGHTS Check History GL540R-V06.74 PAGE 3 02/09/2009 COUNCIL LISTING CHECK NVMBER AMOUNT SCOTT/LARRY 129140 117.97 SHAMROCK GROUP-ACE ICE 129141 317.77 SHORT ELLIOT HE1vDRICKSON 129142 351.66 SOLBREKK INC 129143 206.40 STANWAY EXCAVATING 129144 937.20 STREICHER'S GUN'S INC/DO 129145 109.99 SYNOWCZYNSKI/STEVE 129146 41.25 T-MOBILE INC 129147 657.55 THE DEPOT 129148 841,60 UNIVERSITY OF MINNESOTA 129149 160.00 VERIZON WIRELESS 129150 30.77 VINOCOPIA INC 129151 725.75 WINE MERCfiANTS 129152 3,853.74 ABLE HOSE & RUBBER INC 129153 6.39 AID ELECTRIC SERVICE INC 129154 4,643.00 AMERIPRIDE LINEN INC 129155 119.21 ANOKA COUNTY ATTORNEY 129156 135.00 ANOKA CTY FIRE PROTECTIO 129157 210.00 ASPEN MILLS, INC. 129158 319.37 ASTLEFORD INTERNATIONAL 129159 140.34 BAKER & TAYLOR 129160 1,704.26 BOYER TRUCK PARTS 129161 649.12 BRADLEY & GUZZETTA LLC 129162 3,372.50 BROOK WHITE CO. 129163 346.13 BUILDING FASTENERS 129164 5.51 CATCO PARTS SERVICE 129165 76.15 CHAMBERLAIN OIL COMPANY 129166 408..94 CINTAS FIRST AID-SAFETY 129167 72.41 COORDINATED BUSINESS SYS 129168 1,203.92 DEMCO MEDIA 129169 97.95 DISCOUNT STEEL INC 129170 63.90 DNR ENTERPRISES 129171 1,807.78 EMERGENCY AUTOMOTIVE TEC 129172 75.08 FIDELITY BUILDING SERVIC 129173 5,238.19 FIRST NATIONAL INSURANCE 129174 1,000.00 FOUNDATION CENTER/THE 129175 221.50 G & K SERVICES INC 129176 638.49 GENUINE PARTS/NAPA AUTO 129177 55.03 GIS RANGERS LLC 129178 6,524.18 HD SUPPLY WATER WORKS 129179 1,800.00 HEARTLAND FUEL PRODUCTS 129180 10,191.55 HEINRICH ENVELOPE CORP 129181 292.87 HERRINGER/GERRY 129182 35.00 HOME DEPOT #2802 129183 85.25 INSITUFORM TECHNOLOGIES 129184 85,665.11 ZNSTY PRINTS 129185 281.80 INTEGRA TELECOM INC 129186 167.46 75 ACS FINANCIAL SYSTEM 02/06/2009 11 BANK VENDOR BANK CHECKING ACCOUNT CITY OF COLUMBIA HEIGHTS Check History GL540R-V06.74 PAGE 4 02/09/2009 COUNCIL LISTING CHECK NUMBER AMOUNT INTEGRATED LOSS CONTROL 129187 378.00 KIRKUS REVIEW 129188 270.00 LEAGUE OF MN CITIES INS 129189 53,519.00 MAC QUEEN EQUIPMENT CO. 129190 340,87 MARCO, INC 129191 943.93 MARQUIS WHO'S WHO 129192 175.95 MENARDS CASHWAY LUMBER-F 129193 179.21 D4ETR0 CHIEFS OFFICER FIR 129194 200.00 MIDWEST TAPE 129195 729.62 P9INNEAPOLIS SAW CO INC 129196 9.63 MN STATE FIRE CHIEFS ASS 129197 105.00 OFFICE DEPOT 129198 315.40 OMNIGRAPHICS, INC 129199 370.00 ONE-CALL CONCEPT-GOPHER 129200 124.55 PHYSICIANS DESK REFERENC 129201 64.95 POLITICS IN MINNESOTA 129202 55.00 QWEST COMMUNICATIONS 129203 160.98 REINDERS INC 129204 53.08 ROAD MACHINERY tx SUPPLIE 129205 703.22 ROYAL TIRE 129206 309.23 RUGG'S RECOMMENDATIONS 129207 31.95 RYDBERG/SCOTT 129208 47.50 S & T OFFICE PRODUCTS IN 129209 792.52 SCHINDLER ELEVATOR CORP 129210 300.45 SOLBREKK INC 129211 2,026.00 SPORTS TURF MANAGERS ASS 129212 155.00 ST JOSEPH'S EQUIPMENT 129213 293.07 STATE OF MINN-DEPT OF FI 129214 67.50 STREICHER'S GUN'S INC/DO 129215 109.99 SUN PUBLICATION INC 129216 49.50 T-MOBILE INC 129217 93.61 TAUTGES, REDPATFi, & CO., 129218 15.00 TESSMAN CO 129219 1,011.75 THOMSON GALE 129220 978.34 VERIZON WIRELESS 129221 31.22 WHOLESALE TRUCK-TRLR PR 129222 222.40 WORLD CHAMBER OF COMMERC 129223 53.00 tVW GRAINGER,INC 129224 143.06 YOUNG AUDIENCES OF MINNE 129225 133.37 ZEP MANUFACTURING COMPAN 129226 217.14 ZIEGLER INC 129227 241.58 2,827,045.46 *** 76 ACS FINANCIAL SYSTEM 02/06/2009 11 BANK VENDOR REPORT TOTALS: CITY OF COLUMBIA HEIGHTS Check History GL540R-V06.74 PAGE 5 02/09/2009 COUNCIL LTSTING CHECK NUMBER AMOUNT 2,827,045.46 RECORDS PRINTED - 0009713 77 ACS FINANCIAL SYSTEM 02/0 6/2009 11:44:02 Check History FUND RECAP: FUND ---- DESCRIPTION °------°------°------------- DISBURSEMENTS 101 GENERAL 32,703.68 201 COMMUNITY DEVELOPMENT FUND 781.74 212 STATE AID MAINTENANCE 325.36 225 CABLE TELEVISION 3,422.00 240 LIBRARY 12,879.23 250 COL HGHTS AFTER SCHOOL ENRI 90.00 261 AFTER-SCHOOL PROGRAMS 992.59 265 FORFEITURE FUND 202.50 315 SULL-SHORES:TX GO BONDa'2008A 94,405.05 340 GO IMPROV/REV BONDS 2006A 430,827.00 341 GO STREET REHAB BONDS 2007A 85,984.38 343 GO PUB SAFETY CTR BOND 2008B 214,193.94 385 MULTI-USE REDEVELOPMENT PLAN 1,047.00 387 G.O. IMPROVEMENT BOND 1999A 88,203.75 388 G O IMPROVE/REV BONDS 2003A 110,652.00 389 R8:TRANSITTON BLK REDEVELOP 28,221.00 401 CAPITAL IMPROVEMENTS 4,247.60 410 SHEFFIELD REDEVLPMNT NON-TIF 116.01 411 CAPITAL IMP-GEN GOVT. BLDG 152,650.00 412 CAPITAL IMPROVEMENT PARKS 58,652.22 415 CAPITAL IMPRVMT - PIR PROD 2,500.00 418 COMMUNITY CTR CAPITAL BLDG 329,581.16 420 CAP IMPROVEMENT-DEVELOPMENT 7,476.57 601 WATER UTILITY 10,837.64 602 SEWER UTILITY 1,548.29 603 REFUSE FUND 89,848.56 604 STORM SEWER UTILITY 388.83 609 LIQUOR 264,251.69 631 WATER FUND DEBT SERVICE 277,689.84 632 SEWER FUND DEBT SERVICE 4,648.60 634 STORM SEWER DEBT SERVICE 142,812.56 652 SEWER CONSTRUCTION FUND 85,665.11 701 CENTRAL GARAGE 37,911.68 720 INFORMATION SYSTEMS 2,926.09 875 FISCAL AGENCY: GIS RANGER 6,524.18 884 INSURANCE 100,214.75 885 PAYROLL FUND 141,622.86 TOTAL ALL FUNDS 2,827,045.46 BANK RECAP: BANK NAME DISBURSEMENTS ---- ---------------------------- CITY OF COLUMBIA HEIGHTS GL060S-V06.74 RECAPPAGE GL540R 78 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 02/06/2009 11:44:02 Check History GL060S-V06.74 RECAPPAGE GL540R BANK RECAP: BANK NAME ---- ---------------------------- BANK CHECKING ACCOUNT TOTAL ALL BANKS DISBURSEMENTS 2,827,045.46 2,827,045.46 79 CITY COUNCIL LETTER Meeting of: February 9, 2009 AGENDA SECTION: PUBLIC HEARING ORIGINATING DEPARTMENT: CITY MANAGER'S NO: CITY MANAGER'S APPROVAL ITEM.: PUBLIC HEARING--CABLE RATES BY: LINDA L. MAGEE BY: NO: DATE: January 22, 2009 DATE: On or about March 1, 2008, Comcast filed with the City Federal Communications Commission (FCC) Form 1240, "Updating Maximum Permitted Rates for Regulated Cable Services", purporting to set forth and justify the maximum rate it could charge to subscribers in the City for basic programming service, and FCC Form 1205, "Determining Regulated Equipment and Installation Costs, Equipment Form", purporting to set forth and justify the rates it could charge to subscribers in the City for equipment and installation. The relevant rate period covered is June 1, 2008 to May 31, 2009. Basic programming consists ofover-the-air broadcast stations, public, educational, and government access channels, and any other programming Comcast chooses to add to its basic tier of service. The City does not regulate the rates for any programming not carried on the basic service tier, including (but not limited to) programming offered on a pay-per-channel orpay-per-program basis. Under federal law, the rates for all programming not included in the basic service tiers are unregulated. The chart below reflects Comcast's actual rates since June 1, 2008, and the maximum permitted rates as of June 1, 2008. tes ince June 1, Zoos azimum Permitted Rates Effective June a, 2008 Basic Service $ 9.57 $ 9.91 asic n eceiver Remote Control $ .10 $ .31 Installation-Unwired Home $44.99 $47.12 Installation-Prewired Home $29.99 $32.46 Installation-Additional Outlet- Connect Initial $15.99 $17.75 Installation-Additional Outlet- Connect Se crate $25.99 $27.72 Other Install-Relocate Outlet $21.99 $23.49 U rade- O tional Services $15.99 $17.73 Down rade- O tional Services $10.99 $11.94 COUNCIL ACTION: 80 CITY COUNCIL LETTER Meeting of: February 9, 2009 AGENDA SECTION: PUBLIC HEARING ORIGINATING CITY NO: DEPARTMENT: MANAGER'S CITY MANAGER'S APPROVAL ITEM: PUBLIC HEARING-CABLE RATES BY: LINDA L. MAGEE BY: NO: DATE: January 22, 2009 DATE: Page 2 As part of its ongoing rate proceeding, the City must hold a public hearing. At their meeting of January 12, 2009, the City Council established a public hearing date of Monday, February 9, 2009, at 7:00 p.m. or as soon thereafter as possible. The purpose of the public hearing is to provide interested persons with an opportunity to express their views on the basic service programming and equipment rates and installation charges Comcast calculated in its March 2008 rate filing. Any comments furnished at the hearing may be considered by the City as it issues appropriate rate orders, and will become part of the record in the City's proceeding. Notice of the public hearing was published in the Focus Newspaper. At the Telecommunications Commission meeting of January 1 S, 2009, Steve Guzzetta, the City's telecommunications attorney, presented options from which the City may at this point in time select in addressing Comcast's rate filing: (A) do nothing (the city would remain certified to regulate rates and could review and act on future rate filings from Comcast); (B) issue rate orders preserving the City's rights to the extent possible (the City would retain the right to look at underlying data, calculations and assumptions in the context of a future rate filing). The Telecommunication Commission recommended that the City Council pursue Option B -issue rate orders preserving the City's rights to the extent possible. The benefit of Option B is that the City would avoid the long and expensive process associated with a detailed substantive review of Comcast's rate filing, while still preserving certain fundamental rights. The drawback of this approach is that Comcast may appeal any rate orders issued by the City to the Federal Communications Commission. That said, the City is not required to respond to any appeal filed by Comcast. Attached are two resolutions recommended for adoption by the City Council. Resolution 2009-OS is an order regarding the maximum permitted basic programming service rate set forth in the Federal Communications Commission Form 1240 filed by Comcast on or about March 1, 2008. Adoption of the resolution would neither approve nor deny the maximum permitted rate for basic cable service, as calculated in the 2008 FCC Form 1240, but would function as a basic service rate ceiling during the relevant rate period and be utilized in future basic rate filings. Resolution 2009-06 is an order regarding the maximum permitted equipment and installation rates set forth in the Federal Communications Commission Form 1205 filed by Comcast on or about March 1, 2008. Adoption of the resolution would neither approve nor deny the maximum permitted rates and charges for equipment and installation as calculated in the 2008 FCC Form 1205, but would function as a rate ceiling during the relevant rate period. COUNCIL ACTION: 81 CITY COUNCIL LETTER Meeting of: February 9, 2009 AGENDA SECTION: PUBLIC HEARING ORIGINATING CITY NO: DEPARTMENT: MANAGER'S CITY MANAGER'S APPROVAL ITEM: PUBLIC HEARING-CABLE RATES BY: LINDA L. MAGEE BY: NO: DATE: January 22, 2009 DATE: RECOMMENDED MOTION: Move to waive the reading of Resolution 2009-05, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2009-05, being an Order regarding the maximum permitted basic programming service rate set forth in the Federal Communications Commission Form 1240 filed by Comcast on or about March 1, 2008. RECOMMENDED MOTION: Move to waive the reading of Resolution 2009-06, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2009-06, being an Order regarding the maximum permitted equipment and installation rates set forth in the Federal Communications Commission Form 1205 filed by Comcast on or about March 1, 2008. COUNCIL ACTION: a2 RESOLUTION N0.2009-05 ORDER REGARDING THE MAXIMUM PERMITTED BASIC PROGRAMMING SERVICE RATE SET FORTH IN THE FEDERAL COMMUNICATIONS COMMISSION FORM 1240 FILED BY COMCAST ON OR ABOUT MARCH 1, 2008 WHEREAS, under Section 623 of the Cable Communications Policy Act of 1984, 47 U.S.C. § 543, as amended, the City of Columbia Heights, Minnesota (hereinafter the "City") is permitted to regulate rates for basic cable service; and WHEREAS, the City is certified as a rate regulation. authority pursuant to rules of the Federal Communications Commission (hereinafter "FCC"); and WHEREAS, Comcast of Minnesota, Inc. (hereinafter "Comcast"), the local franchise holder, filed with the City an FCC Form 1240 "Updating Maximum Permitted Rates for Regulated Cable Services", on or about March 1, 2008, purporting to set forth and justify the maximum rate it could charge to subscribers in the City for basic cable service (hereinafter the "2008 FCC Form 1240"); and WHEREAS, the City held a public hearing to solicit the views of interested persons concerning the 2008 FCC Form 1240; and WHEREAS, the rate set forth herein will govern Comcast's basic service rate until Comcast lawfully implements a further rate change pursuant to applicable FCC regulations. NOW, THEREFORE, the following is resolved: 1. Comcast's maximum permitted rate for basic cable service, as calculated in the 2008 FCC Form 1240, is neither approved nor denied, but may: (i) function as a basic service rate ceiling during the relevant rate period; and (ii) be utilized in future basic service rate filings, to the extent permitted by and consistent with FCC rules and decisions. 2. Comcast shall not charge any rate higher than the maximum permitted rate set forth in the 2008 FCC Forrn 1240, nor increase that rate, unless such rate is first filed with and approved by the City, in accordance with applicable law and. regulations, inchiding but not limited to the notice requirements imposed by 47 C.F.R. § 76.1603, or as otherwise expressly permitted under applicable law and regulations. 3. Comcast may charge rates less than the lawfi~l maxin-uni permitted rate ur basic service, as long as such rates are applied in a uniform and nondiscriminatory way, pursuant to applicable federal, state and local laws and regulations. The City, however, shall nat be deemed to have approved such rates. 4, This Order is based on the representations made by Comcast in its 2008 FCC Form 1240. Should information came to the City's attention that these representations were inaccurate in any material way, the City reserves the right to take appropriate action. This Order 83 is not to be construed as a finding that the City has accepted as correct any specific entry, explanation, calculation or rate in the 2008 FCC Form 1240. 5. The City reserves all of its rights with respect to rate regulation, including (but not limited to): (i) the right to request and review data, and documents concerning the 2008 FCC Form 1240 in order to determine the impact, if any, such data and documents have on rates proposed in future basic service rate filings; (ii) the right to address issues raised. in the 2008 FCC Form 1240 that are relevant to any City review of subsequent basic service rate filings; and (iii) the right to request additional information concerning the 2008 FCC Form 1240 that is relevant to any City review of subsequent basic service rate filings. 6. This Order constitutes a written decision for purposes of 47 C.F.R. § 76.936(a). 7. This Order shall be effective immediately upon its approval by the City. 8. This Order shall be released to the public and to Comcast, and a public notice shall be published stating that this Order has been issued and is available for review, pursuant to 47 C.F.R. § 76.936(b). Passed this day of February 2009. Offered by: Seconded by: Roll Call: Mayor Gary L. Peterson Patricia Muscovitz, CMC City Clerk 2 84 RESOLUTION NO. 2009-06 ORDER REGARDING THE M[AXIMLTM PERMITTED EQUIPMENT AND INSTALLATION RATES SET FORTH IN THE FEDERAL COMMUNICATIONS COMNIISSION FORM 1205 FILED BY COMCAST ON OR ABOUT MARCH 1, 2008 WHEREAS, under Section 623 of the Cable Communications Policy Act of 1984, 47 U.S.C. § 5439 as amended, the City of Columbia Heights, Minnesota (hereinafter the "City") is permitted to regulate rates for equipment and installations; and WHEREAS, the City is certified as a rate regulation authority pursuant to rules of the Federal Communications Commission (hereinafter "FCC"); and WHEREAS, Comcast Cable Communications, LLC (hereinafter "Comcast") filed with the City an FCC Form 1205 "Determining Regulated Equipment and Installation Costs, `Equipment Form"' (hereinafter the "2008 FCC Form 1205"), on or about March 1, 2008, purporting to set forth and justify the rates it could. charge to subscribers in the City for equipment and. installations; and WHEREAS, the City held a public hearing to solicit the views of interested persons concerning the 2008 FCC Form 1205; and WHEREAS, the rates set forth herein will govern Comcast's equipment rates and installation charges until Comcast lawfully implements a further rate change pursuant to applicable FCC regulations. NOW, THEREFORE, the following is resolved: 1. Comcast's maximum permitted rates and charges for equipment and installation, as calculated in the 2008 FCC Form 1205, are neither approved nor denied, but may function as a rate ceiling during the relevant rate period. 2. Comcast shall not charge any rates higher than the applicable maximum permitted rates set in the 2008 FCC Form 1205 nor increase those rates, unless such rates are first filed with and approved by the City, in accordance with applicable law and regulations, including but not limited to the notice requirements imposed by 47 C.F.R. § 76.1603, or as otherwise expressly permitted under applicable law and regulations. 3. Comcast may charge rates less than the lawful maximum permitted rates for equipment and installation, as long as such rates are applied in a uniform and nondiscriminatory way, pursuant to applicable federal, state and local laws and regulations. The City, however, shall not be deemed to have approved such rates. 4. This Order is based on the representations made by Comcast in its 2008 FCC Form 1205. Should information came to the City's attention that these representations were inaccurate in any material way, the City reserves the right to take appropriate action. This Order 85 is not to be construed as a finding that the City has accepted as correct any specific entry, explanation, calculation or rate in the 2008 FCC Form 1205. 5. The City reserves all of its rights with respect to rate regulation, including (but not limited to): (i) the right to request and review data, and documents concerning the 2008 FCC Form 1205 in order to determine the impact, if any, such data and documents have on rates proposed in firture equipment and installation rate filings; (ii) the right to address issues raised in the 2008 FCC Form. 1205 that are relevant to any City review of subsequent equipment and installation rate filings; and (iii) the right to request additional information concerning the 2008 FCC Form l 205 that is relevant to any City review of subsequent equipment and. installation rate filings. 6. This Order constitutes a written decision for purposes of 47 C.F.R. § 76.936(a). 7. This Order shall be effective immediately upon its approval by the City. 8. This Order shall be released to the public and to Comcast, and a public notice shall be published stating that this Order has been issued and is available for review, pursuant to 47 C.F.R. § 76.936(b). Passed this day of February 2009. Offered by: Seconded by: Roll Call: 1`~hayor Oary L. Peterso.~ Patricia Muscovitz, CMC City Clerk 2 86 CITY COUNCIL LETTER MEETING OF: FEBRUARY 9, 2009 AGENDA SECTION: OTHER ORDINANCES ORIGINATING DEPT: CITY MANAGER AND RESOLUTIONS FINANCE APPROVAL NO: ITEM: RESOLUTION REDUCING THE BY: WILLIAM ELRITE BY: ADOPTED 2009 BUDGET IN ANTICIPATION OF LOCAL DATE: FEBRUARY 5, 2009 GOVERNMENT AID REDUCTIONS NO: In anticipation of reductions in the amount of money the City receives in local government aid, the City Manager and staff have made advance preparations based on Governor Pawlenty's proposal to reduce the City of Columbia Heights' aid by $460,000 for the year 2009. Through significant advanced planning and reductions, staff and the City Manager are recommending to make cuts and revenue enhancements to compensate for the governor's proposed reductions in the 2009 budget. These cuts and reductions are a combination of reducing services and expenses, some layoffs, and all employees taking an 80-hour furlough without pay in 2009. It should be recognized that this level of reductions cannot be made without serious impairment to services provided by the City of Columbia Heights. These reductions, as laid out in the attached resolution, should enable the City to deal with the governor's proposed aid reductions resulting in a corresponding reduction of services to residents. As has been discussed with the City Council, staff will continue to evaluate expenses and revenues during the preparation of the 2010 budget. This should allow for the adoption of a 2010 budget that will deal with any further aid reductions that are made by the state legislature. 1t is staff's very strong recommendation that the council seriously look at increasing other revenue sources wherever possible. There are some instances where the City could make services self-sustaining rather than reliant on taxes or state aid. An example of this would be to establish a street light utility to collect service fees to cover this expense. Another example is that currently approximately $100,000 per year is used to supplement the operation of Murzyn Hall. Service fees should be established to cover the cost of this operation. The other area that needs to be clearly understood is that unlike the budget reductions of 2003 and 2004, the current reduction cannot be made without seriously reducing services. The cuts will mean having parks, streets, boulevard trees, and other public works items maintained at a much lesser level. Library hours (from 60 to 51}, reference work, and other services will also be reduced. Murzyn Hall would close when it is not in use for recreation programs or by afee-paying group. This means fee waived groups would need to be rescheduled to times when the hall is open. Other services such as abatements for weeds and unkempt properties may not be at the same level as in 2008. In addition to this, we are exploring other reductions such as using an automated attendant for phone calls and. encouraging all payments that do not require a receipt to be made in the payment drop box. It is important that the City Council understand that these service reductions may result in more c.tlzen comments and Input. RECOMMENDED MOTION: Move to waive the reading of Resolution 2009-24 there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2009-24 being a resolution reducing the adopted 2009 budget in anticipation of local government aid reductions. WEams 0902051COUNCIL COUNCIL ACTON: $7 RESOLUTION N0.2009-24 RESOLUTION REDUCING THE ADOPTED 2009 BUDGET IN ANTICIPATION OF LOCAL GOVERNMENT AID REDUCTIONS WHEREAS, the City of Columbia Heights is anticipating a reduction in excess of $460,000 in the amount of state aid the City will receive in 2009; and WHEREAS, the City of Columbia Heights is anticipating a reduction in excess of $960,000 in the amount of state aid the City will receive in 2010; and. WHEREAS, the City Manager has utilized advanced planning and. preparation for these reductions; and WHEREAS, it is the overall goal to balance the City budget for 2009; and WHEREAS, the City Council recognizes that this budget reduction will have a significant impact on services provided to residents: NOW, THEREFORE, BE IT RESOLVED that the following budget reductions be made to the 2009 property tax supported budgets. Adopted Fund 2009 Budget Proposed Cuts General Fund 9,793,340 516,055 Library Fund 783,847 92,377 Community Development Fund 625,309 50,568 Estimated Furlough Expense 260,000 NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Manager be authorized to develop along- range b,~dget plan to in~liide the redu~ti~n of servi~ec and expenses, the geperatinp ttf new revenue, and a projection of property tax increases needed to offset the loss of local government aid. NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Manager instruct staff to explore all areas where City revenue and fees can be increased to offset the cost of providing services and present recommendations to the City Council for evaluation. Passed this day of , 2009 Offered by: Seconded by: Roll Call: Mayor Gary Peterson Patricia Muscovitz, City Clerk 88 CITY COUNCIL LETTER MEETING OF: Februa 9, 2009 AGENDA SECTION: OTHER BUSINESS ORIGINATING DEPT: CITY MANAGER NO: ADMINISTRATON APPROVAL ITEM: RESOLUTION ACCEPTING CERTAIN BY: WALT FEHST BY: DONATIONS RECEIVED BY THE CITY OF COLUMBIA HEIGHTS DATE: FEBRUARY 6, 2009 This is a list of donations recently received by the City and submitted for acceptance by the City Council. The main intent of the resolution is to comply with Minnesota Statute 465.03 Gifts to Municipalities. That statute provides that municipalities can accept donations subject to donor teens, if the acceptance is by a resolution approved. by at least two-thirds of the City Council. It should be noted that the statute prohibits accepting donations with religious or sectarian purposes. Staff recommends that the City Council adopt the following motions: RECOMMENDED MOTION: Move to waive the reading of Resolution 2009-26 there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2009-26 being a resolution to accept certain donations by the City of Columbia Heights. COUNCIL ACTION: 89 CITY COUNCIL LETTER MEETING OF: February 9, 2009 AGENDA SECTION: Other Business ORIGINATING DEPT: CITY MANAGER NO: Administration APPROVAL ITEM: Discussion of contribution BY: Walt Fehst BY: / ~~~ ~/' DATE: February 6, 2009 ~ At the February 2, 2009 City Council work session, City Manager Fehst stated that Mayor Peterson has volunteered to take the proportionate two week pay reduction that City employees are being asked to take, as loss of Local Government Aid (LGA) will require over $460,000 in budget reductions. City employee cooperation has been requested to bear this burden by taking a two week unpaid furlough. There will be extensive cost reductions and staff reorganizations Fehst stated that Councilmembers will need to look at significant changes for next year. Mayor Peterson suggested that council members reduce their salary by the proportionate equivalent of the two week furlough that employees are being asked to take. Williams requested that this be accomplished through a monetary donation. Mayor Peterson, Councilmember Williams, Councilmember Diehm, and Councilmember Kelzenberg each expressed their willingness to do this. Councilmember Nawrocki stated that he is unwilling to do this. The main intent of the resolution is to comply with Minnesota Statute 465.03 Gifts to Municipalities. That statute provides that municipalities can accept donations subject to donor terms, if the acceptance is by a resolution approved by at least two-thirds of the City Council. It should be noted that the statute prohibits accepting donations with religious or sectarian purposes. Staff recommends that the City Council adopt the following motions: RECOMMENDED MOTION: Move to waive the reading of Resolution 2009-26 there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2009-26 being a resolution to accept certain donations received by the City of Columbia Heights. COUNCIL ACTION: RESOLUTION N0.2009-26 ACCEPT CERTAIN DONATIONS RECEIVED BY THE CITY OF COLUMBIA HEIGHTS WHEREAS, City employees have been requested to join in bearing the burden of the 2009 budget reductions, due to the loss of Local Government Aid, by taking a two week unpaid furlough, and WHEREAS, the City Council extends their sincere appreciation to the employees for their cooperative spirit, and WHEREAS, Councilmember Williams requested that council members reduce their salary by the proportionate equivalent of the two week furlough that employees are being asked to take, and WHEREAS, the request is that this pledge be accomplished through a monetary donation form the Mayor and Councilmembers, and WHEREAS, Mayor Peterson, Councilmember Williams, Councilmember Diehm, and Councilmember Kelzenberg have each expressed their desire to pledge the following donations, Donor Amount Purpose Gary Peterson $530.77 Furlough pay equivalent Robert Williams $300.00 Furlough pay equivalent Tami Ericson $300.00 Furlough pay equivalent Bruce Kelzenberg $300.00 Furlough pay equivalent and, WHEREAS, the City Of Columbia Heights acknowledges the preceding pledged donations, BE IT HEREBY RESOLVED by the City Council of the City Of Columbia Heights that the City of Columbia Heights accepts these donations. Passed this 9`" day of February 2009 Offered by: Seconded by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk