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HomeMy WebLinkAboutApril 6, 2009 Work Session(iur~'L. Prav.cnn CITY OF COLUMBIA HEIGHTS ~I•,>r„ Councilntembcs Ruhcr! : I. II ',Thum ~ S)0 d0"' ,venue NC, Columbia Heights, ~4N SSd21-3878 (763)706-3600 TDD (763) 706-3692 Hr„cr A'uu~rrrck, 7'omnu•ru I1,chu, l~isif our rvebsite rd: rvtvtuci.cahlmGin-heiYlrts.nui•us Bruce l.'eL-,,,hc,;, Cite Vanagcr IPuhrr N. hrlu! ADMINISTRATION NOTICE OF CITY COUNCIL MEETING X X :F 7C :F :F 7X ~ ~ .'~ ~. ~ to be held iI~ the CITY OF COLUMBIA HEIGHTS ~rs,follotins•: Meeting of: COLUMBIA HEIGHTS CITY COUNCIL Date of Meeting: APRIL 6, 2009 Time of Meeting: IMMEDIATELY FOLLOWING CLOSED MEETING Location of Meeting: CONFERENCE ROOM 1 Purpose of Meeting: WORK SESSION Police and Fire Civil Service Commission -discussion 2. Possible Police Grants 3. Correction to 2009 Police Budget 4. Early retirement incentives for 2010 - d~sctlssiol~ 5. Hilltop Trailer lot land acquisition 6. Miimeapolis Waterworks 2009 cleaning and lining 7. Street Light Utility 8. 2009 Bond Sale (First reading April 13) 9. LED sign for liquor store 10. Preliminary discussion on 2010 tax levy/budget The City of Cohuiibia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Clerk at 763-706-3611 to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) .~ z CITY COUNCIL LETTER WORK SESSION of Apri16, 2009 AGENDA SECTION: ORIGINATING DEPARTMENT CITY MANAGER NO. POLICE APPROVAL: ITEM: Approve SuUmission of Grant Applications BY: Scott Nadeau ; i~ BY: NO. DATE 03/26/2009 DATE: BACKGROUND The Cohuubia Heights Police Department is interested in applying for tlu•ee federal grants that will supplement cui~-ent crime prevention and public safety resources. If successfully obtained, these grants include additional fielding for licensed and non-licensed police personnel, technological enhancements, and funding for police enforcement initiatives targeted at specific criminal activity. The grants and their intended application are summarized as follows: COPS Hiring Recovery Program The fielding purpose of this competitive grant is to cover the starting salary and benefits for the 27`x' licensed police officer position that had been previously cut from the budget. It will cover 100% of that base salary for three years, not including annual pay increases, with acity-funded 1- year retention requirement following the 3-year grant period. There is no public notice requirement. This grant application is due April 14, 2009. Edward Byrne Memorial Competitive Grant Program This purpose of this competitive grant is to fluid a Crime Prevention Specialist for our department for atwo-year period. This fielding is to support sworn law enforcement with the goal of making them more available on the street in au effort to reduce and prevent crime. This grant allows funding for a reasonable wage/benefit package for this position for the two-year period starting on or after July 31, 2009, without matching or retention requirement. Budget must also include h•avel and lodging for two staff members to attend two DOJ grant meetings, one in Washington D.C. and one in our own region. There is no public notice requirement. This application is due April 27, 2009. Edward Byrne Memorial Justice Assistance Grant (JAG) This is anon-competitive grant that involves countywide cooperation, with suggested allocations for Hilltop and Columbia Heights of $13,295 and $80,302 respectively. The combined award would be $93,597, and can be utilized for law enforcement programs and technology improvement efforts. The grant program is for 4 years with the award drawdown occurring the first fiscal year. The fiords can be expended anytime during the remaining 3 fiscal years of the 4- year program. Due to disparate fielding issues, all county agencies named as recipients must come to agreement in the form of a Memo Of Understanding regarding disbursement allocations. Failure of any agency to sign off on the MOU will hold up funding to all agencies involved. Subject to unforeseen stipulations in the required countywide agreement, allocation will be approximately $15,000 for equipping tlu•ee squads with audio/video recording equipment, and $78,597 used for overtime and related costs for proactive, targeted initiatives. Anoka County Approve Submission of Grant Applications Page 2 agencies have agreed to pay a 10% adminish•ative fee to Anoka Cotulty, which would be the agency handling the administrative process for application submission and progress reporting for all agencies involved as agreed upon in the MOU. This grant does have continent and review requirements: Governing Body Review The grant application must be made available for review by the governing body not fewer than 30 days before the application is submitted to BJA. This means the Council should review the application by April 18, 2009. The application deadline is May 18, 2009. Public Review There is a requirement that the application be made public, with an opportunity for comment, anytime prior to application submission. Common foi-~ns of public notification include web site and newspaper postings, City Council, and County Board hearings that are open to the public. ANALYSIS/CONCLUSION The Police Department is requesting approval to apply for these grants in order to reinstate some of the initiatives that were affected by reductions to the 2009 budget. These reductions had substantial and measurable impacts on the Police Department's operations and its ability to cant' out its strategic plan. As stated above, if successfully obtained, these grants would provide for additional funding for licensed and non-licensed police personnel, technological ei~llancements, and fiuiding for police enforcement initiatives targeted at specific criminal activity. COUNCIL ACTION: +# 3 CITY COUNCIL LETTER WORK SESSION of April 6, 2009 AGENDA SECTION: ORIG1NATiNG DEPARTMENT CITY MANAGER NO. POLICE APPROVAL: ITEM: Approve Resolution #2009-XX BY: Scott Nadeau~.~ BY: Correcting the 2009 Budget 270-42160, Police DATE: DATE: Conununity Prog-rams NO. BACKGROUND It has come to my attention that there is an inconsistency in the 2009 Police detailed budget book in regards to the Police Community Programs fined (formerly referred to as the DARE account), 270-42160. Page 7 with the dollar amounts by line item shows a $10,000 revenue budget and a $5,700 expense budget. The narrative at page 4, however, discusses a $20,000 expense budget. ANALYSIS/CONCLUSION As it was the Police Department's intention for the Police Conmituiity Programs fiend for 2009 to total $20,000, we request that the field 270 budget be amended to the $20,000 amount. The Community Programs budget includes monies for the DARE program and other projects such as crime prevention and the Police Reserves. Resolution 2009-XX addresses this issue and we are requesting the Council adopt this resolution. lcao COUNCIL ACTION: RESOLUTION N0. 2009-XX RESOLUTION CORRECTING AN INCONSISTENCY IN THE POLICE DEPARTMENT'S 2009 DETAIL BUDGET BOOK, FUND 270 WHEREAS, the Columbia Heights Police Department's detail budget book Continents page (page 4) discusses a Community Programs Fund total of $20,000; and WHEREAS, the Columbia Heights Police Department's detail budget book Summary by Class page (page 7) shows a revenue total of $10,000 and expenditure total of $5,700; and WHEREAS, we have been advised by the City's Finance Department that the dollar amounts on page 7 were the ones included in the 2009 adopted budget; and WHEREAS, it was the intention of the Police Department for the Connnunity Programs budget to be $20,000; and WHEREAS, it requires a resolution of the City Council to correct this inconsistency: NOW, THEREFORE, BE IT RESOLVED that fund 270, Police Coirmlunity Programs, be adopted as $20,000 for the budget year 2009. Passed this 13th day of April, 2009 Offered by: Seconded by: Roll Call: Mayor Gary L. Peterson Patricia Muscovitz, CMC -City Clerk CITY OF COLUtv1BIA HEIGHTS, t~kINNESOTA BUDGET 2009 Functional Area of Police Budget Narrative Budget Comments Animal Control 101-42700 The proposed Animal Control budget for 2009 shows a slight decrease ($192) from 2008. This reflects a smaller budgeted amount for supplies. The contracted cost of animal impounds remains the same under our agreement with Camden Pet, which runs through 2010. The number of animals impounded throughout the year, and how long they are housed at Camden, will determine what our actual year-end cost will be. Community Programs 270-42160 We are requesting an increase of $325 in the DARE budget to accommodate anticipated increases in training expenses and purchase of supplies. As money has accumulated in this fund over the course of the last several years, it is the intention of the Police Department to draw down some of this funds in this account. The Police Department is requesting to spend $14,300 of the existing balance currently in the fund in addition to the $5,700 requested to fund DARE for a total of $20,000. Police Capital Equipment 431-42100 The Capital Equipment Replacement Fund includes equipment required to keep our technology and fleet current and to keep our personnel safe in their duties. In 2009, it is recommended that two marked squad cars be purchased. The purchase of two marked squad cars per year allows the department to keep the marked fleet in a better working order, and aids in controlling costs on replacement parts. This also allows the marked squads to be rotated out of the police fleet .after four years of service, and rotated into another department in the city, who in turn get a better operating vehicle for conventional uses. The purchase will include one Crown Victoria and one Charger, which will be tested as a more fuel land cost efficient alternative to our current patrol vehicles. In 2008, the PD purchased one unmarked vehicle. This was the first unmarked vehicle that has been purchased in six years. It is recommended that the PD purchase one unmarked vehicle in 2009. This would replace the 1998 Ford Taurus, which is the oldest unmarked in the fleet, and currently has 49,000 miles. Due to the age of the vehicle it is starting to deteriorate at a faster rate and has started to incur additional parts costs due to its age. According to shop records, over 50% of the costs of maintenance on this vehicle over the past seven years have occurred in the last 18 months. This vehicle has been recommended for replacement by Shop Foreman Steve Synowczynski. \Ne anticipate significant savings in vehicle operating costs due to better fuel economy. Since the car to be replaced is 10 years old but still has low miles, it can be used by another department which has occasional use needs. Also requested is $5,500 for purchase of necessary equipment. ~T CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2009 Summary by Class DARE Project 270-42160 Revenue Taxes Licenses And Permits Intergovernmental Revenue Charges For Current Services Fines And Forfeits Miscellaneous Sales And Related Charges Allocations Trans and Nan Rev Receipts Total Revenue Expenses Personal Services Supplies Other Services and Charges Capital Outlay Contingencies & Transfers Total Expenses Summary Revenue Expense Ghange to Fund Balance Functional Area of QARE Budget 2009 Adopted Department City Manager Adopted Actual Actual Budget Proposed Proposed Budget 2006 2007 2008 2009 2009 2009 0 0 0 0 0 0 0 0 0 0 1,703 2,058 0 1,000 1,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9,000 9,000 9,000 9,000 9,000 10,703 11,058 9,000 10,000 10,000 0 0 0 0 0 0 3,596 2,648 3,200 3,200 3,200 1,242 2,717 2,175 2,500 2,500 0 0 0 0 0 0 0 0 0 0 4,838 5,365 5,375 5,700 5,700 0 10,703 11,058 9,000 10,000 10,000 0 4,838 5,365 5,375 5,700 5,700 0 5,865 5,693 3,625 4,300 4,300 0 ~~ CITY COUNCIL LETTER AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: PUBLIC WORKS ITEM: PURCHASE AGREEMENT FOR THE PROPERTY BY: K. Hansen ACQUISITION OF 675 37Th AVENUE, OWNED BY DATE: 4/1/09 HILLTOP TRAILER SALES `=}~ `~ :eting of: 4/6/09 CITY MANAGER BY: DATE: Background: The property located at 675 37t'' Avenue is owned by Hilltop Trailer Sales. It is open, vacant land with no improved or permanent buildings on the site. In 2006, the property ceased being used for trailer storage. The owners of Hilltop Trailer Sales approached Public Works in 2005 and again in 2007 to determine an interest in the potential acquisition of the property. Staff discussed acquiring this property under a cos~tr~rct,for deed type purchase with the council on January Sty', 2009, and was directed to negotiate further on the terms of the purchase. Analysis/Conclusions: (t3.-\ChGPOL~~D~'~~FIL~ IZ1~:VIL-:A`.-)The attached map shows the size of the rectangular property at 78,000 square feet or 1.8 acres with existing topography. The entire parcel is enclosed with a chain link fence with access on to Madison Place. The parcel surface is a combination of gravel and turf. Public Works proposed uses for the parcel identifying the following municipal needs and as shown on the attached layout: • Storm water ponding to meet NPDES Phase II requirements for Industrial -Municipal operations -requirements to be met in 1-3 years. • Covered storage for mixed salt/sand storage (now stored in the open) -enough for one season's use. City currently uses 700 ton per year average, salt. • Materials storage such as for water main breaks excavations, asphalt, concrete, wood chips and other Public Works excavations (currently being stored on other City owned land -City Parks and formerly NEI). • Materials /Excavations storage for the aiuiual water main cleaning and lining project and other construction projects. • Snow storage for snow removal operations. • Reserve Future Use (land lease or other) The need for this storage space will intensify once the industrial pernlit requirements begin to be implemented as we will lose storage space to storm water facilities. The owners of Hilltop Trailer sales approached the City prior to selling the parcel to other users. The property is now half leased by a trucking company for short and long term storage oftractor-trailers and for short-term storage of automobiles. A cursory appraisal (estimate of value) was prepared by Watson Appraisal that estimates the value at $558,750. The value is in the range that the owners indicated they were looking at obtaining for the property at $600,000. Staff (City Attorney and Engineering) negotiated with the owners and the negotiated purchase price is at $580,000, firm from the owners. The owners were not interested in a cash sale so the agreement reflects a COUNCIL ACTION: CITY COUNCIL LETTER ot: AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: PUBLIC WORKS CITY MANAGER ITEM: PURCHASE AGREEMENT FOR THE PROPERTY BY: K. Hansen ACQUISITION OF 675 37T" AVENUE, OWNED BY DATE: 4/1/09 HILLTOP TRAILER SALES BY: DATE: Continued -Page 2 down payment of $99,000 and the balance to paid over time. The term would be fifteen years with an initial interest rate of 6.5%. The interest rate would reset in 5 year increments tied to the prime rate with floors and caps. Staff has established $100,000 in the 2009 Cenh•al Garage fund for the down payment. The annual cost (beginning in 2010) would from the January terms would have been $51,175, atmually for the contract tei-~n. The primacy funding source for the acquisition is the revenue from the recently completed Verizon cell tower at the Municipal Service Center, estimated at $21,000 per year, with a 3% annual adjustment. \l~(_;O~1~1.~"1 1:1) CH~NC;1:~S (ti~ll~~~~~in~~ la» >'~' C'~' me~tin~~ ): Staff has discussed /met on several occasions with the owners and negotiated the interest rate down from 6.5% to 5.5%. Staff revisited but the owners are fii7n on the purchase price of $580,000. An alternative form of purchase using bonding is now recommended as the form of property transaction -reference attached letter from Bond Counsel Steve Bubul. This does have an additional advantage of further lowering the interest rate due to tax-exempt status and fiu-ther lowers the City's annual payment (now for debt service) from $51,000 to $46,996, amlually. Funding: In addition to the Public Works cell tower revenue, a revenue source would be to lease 50% of the land area for the next 5-10 years for storage type use, or bow the property is cuiTently being used. Staff estimates that this type of lease could generate $21,600 to 27,000, amnially ($1,800 to 2,250 monthly). The remaining payment of $7,500 is recommended to be funded out of the Water Tower Antemlae revenue, currently generating $28,285, amlually. Recommended Motion: Move to authorize the Mayor and City Manager enter into a purchase acquisition agreement for the acquisition of 675 37t~' Avenue, owned by Hilltop Trailer Sales. Attaclnnent: Draft Property Transaction (Bubul Letter) Site map (3) KH:kh COUNCIL ACTION: C H A R T E R E D Offices in 470 U.S. Banlc plaza 200 South Sixth Street Minneapolis Minneapolis, A'1N 55402 Saint Paul (G12) 337-9300 telephone (612) 337-9310 fax St. Cloud http:/Iwww.l:znnedy-graven.com Affirmative Action, Equal Opportuniq' Employzr STEPHEN J. BUBUL Attorney at La~v Direct Dial (612) 337-9228 Email: sbuUul@kennedy-~aven.com March 6, 2009 Thomas Zappia Zappia &LeVahn Lid. 941 Hillwind Road NE Suite 301 Mi>uieapolis, MN 55432 Re: JR Properties-Columbia Heights Transaction Sale of 675 37°' Avenue NE (the "Property") Dear Tom: As we discussed briefly on the phone last week, the City of Columbia Heights has no legal authority to acquire the above-identified Property from your client JR Properties ("Seller") under a contract for deed that extends longer than five years. I serve as the City's bond counsel, and have recommended an alternative structtu•e that will, I believe, meet your client's goals. The proposal calls for the City to replace the contract for deed with general obligation notes (the "GO Notes"), which the City may issue under its City Charter subject to certain conditions. The GO Note is a "bond" or "obligation" under Minnesota law, to which the City pledges its full faith and credit. While it is more coirunon for bonds to be issued to investors, and the proceeds used to acquire property, in this case the bond would be issued directly to the Seller, in consideration of receiving title to the Property. Under this scenario (described in Section 72 and Chapter 5 of the City Charter), the City Council (by four-fifths vote) must adopt an ordinance authorizing issuance of the GO Notes to the Seller. The ordinance is published, and if a petition is filed with the City Clerk within 30 days after the date of publication, signed by registered voters equal to ten percent of the vote at the last regular municipal election or 700 signatures, whichever is greater, the GO Notes may not be issued unless approved by the voters. Assuming no petition is filed by the end of the thirty-day period, the .sale of the GO Notes must occur within 60 days thereafter.. Our proposal is that, if your client agrees in principal to these terns, the Council would adopt the ordinance, wait for the 30-day petition period to expire, then promptly approve the purchase agreement with the Seller (which would effectively constitute "sale" of the GO Notes). 3481G4v1 SJBCLl62-45 City of Columbia Heights March 6, 2009 Page 2 of 3 Because the Property will be used by the City in part for its governmental ptu-poses and in part for sale or lease to private parties, the City may issue the GO Notes in part as atax-exempt obligation and in part as a taxable obligation. The tax exempt obligation would carry a lower interest rate, reflecting the fact that interest on that obligation is excludable from Seller's gross income for federal and State income tax purposes. The exact allocation between the taxable and tax-exempt notes would depend on the exact areas used, but for proposes of discussion, the City believes the split would be close to 50-50. The overall purchase terms are summarized as follows: Purchase Price: $580,000. 2. Earnest Money: $1,000, payable when purchase agreement is signed (after expiration of the 30-day petition period described above). 3. Delivered by City at closing (which is anticipated to be May 31, 2010) in exchange for warranty deed: Cash in the amount of $99,000. Two GO Notes: in the aggregate principal amount of $480,000, each payable over 15 years, as follows: Taxable Note A: Principal amount of $240,000, with interest at the initial rate of 5.5%, adjusted on each five-year amiiversary based on the then-applicable rate for 5-year U.S. Treasury Notes plus one percent, provided that in no event will the adjusted rate exceed 7.5% or be less than 3.5%. Tax-Exempt Note B: Principal amotuit of $240,000, with interest at the initial rate of 3.75%, adjusted on each five-year anniversary based on the then- applicable rate of 5-year US Treasury Notes less .25%; provided that in no event will the adjusted rate exceed 5.75% or be less than 1.75°~0. Each Note is subject to prepayment on any date, with a premitun equa120% of the outstanding principal balance during the first ten years, and a premium equal to 10% of the outstanding principal balance thereafter. Sample payments schedules prepared by the City's financial advisor are enclosed, showing the aggregate payments, and the schedule for each of the separate notes, assuming the interest rate remains at the initial rate. We think this scenario is beneficial to both parties. The Seller receives a payment stream that is more secure than a contract for deed; the GO Notes are backed by the City's full faith and credit, which means the City is legally obligated to levy a tax against all taxable property in the City if necessary to make debt service payments. The Seller does not face the risk of a cancelled 348164v1 SJB CL162-45 City of Columbia Heights March 6, 2009 Page 3 of 3 contract and the need to re-market the Property at some fiiture date. The City is able to reduce its cost by issuing one of the GO Notes on atax-exempt basis. While the Seller receives lower interest payments on that note, the effect is financially neutral to Seller because of the tax- exempt treatment of that interest. (We would also be prepared to provide the Seller a legal opinion as to the tax-exempt status of the Tax-Exempt Note B, as is customary in tax-exempt bond transactions.) Please let us know if these terms are generally acceptable to your client. If so, staff will reconnnend that the City proceed with the ordinance to issue the GO Notes, followed by a schedule to approve a purchase agreement embodying these terms as soon as possible after expiration of the 30-day petition period. These actions are of course subject to approval by the City Council. (The terms for the interim lease of the Property by the city remauz as described in prior correspondence on this transaction.) If you have questions about these teilns, feel flee to contact me. Very truly yours, Steph J. Bubul SJB cc: Kevin Hanson Angela Sainec Mark Ruff, Ehlers & Associates 348164v1 SJB CL162-45 CITY COUNCIL LETTER Meeting ot`. AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: PUBLIC WORKS CITY MANAGER ITEM: RESOLUTION AUTHORIZING THE CLEANING AND LINING OF 5,144 LINEAL FEET OF WATER MAIN UNDER THE MINNEAPOLIS 2009 PROGRAM, CITY PROJECT NO. 0903 BY: K. Hansen DATE: 4/U09 BY: DATE: Background: Columbia Heights has received complaints of discolored water at various locations and for many years throughout the City. City staff has determined that the rusty water is caused by encrusted iron scale deposits sloughing off the inside of the water main and into the water distribution system. To date, the problem originates only in unlined cast iron pipe, which ~a~as COII1111011 pl•101• t0 1962. Although iron scale has a tendency to turn the color of the water yellow or light brown, it is not known to be a health risk by federally regulated standards. City staff has taken many samples and continues to test the drinking water to ensure compliance with State and Federal requirements. The problem in general is called `hiberculation' and results in restricted flows. In January of 2005, Staff reported to the City Council several techniques to address this problem and indicated that there are likely multiple areas of the dish~ibution system affected by hiberculation. Analysis /Conclusions: In 2005, Columbia Heights began a cleaning and lining program with 3,000 lineal feet of water main cleaned and lined under the City of Minneapolis Cleaning and Lining Program as follows: • Alley from 37°i to 39`x' Avenues: Polk and Tyler Streets • Jefferson Street: 49`x' to 515` Avenues In 2006, the City of Minneapolis Cleaning and Lining program completed 3,300 lineal feet of lining in Columbia Heights at the following locations: • Madison Street: 48'x' to 5151 Avenues • 48`x' Avenue: Jefferson to Monroe Streets • Monroe Street: 48'`' to 49'x' Avenues In 2007, the cleaning and lining program completed 3,650 lineal feet of pipe with the following segments completed: • Monroe Street: 49'x' to 515` Avenues • 50 % Avenue: Monroe to Jackson Streets • 50`x' Avenue: Monroe to Jackson Streets • 49 '/2 Avenue: Monroe to Jackson Streets In 2008, the cleaning and lining program completed 4,300 lineal feet of pipe at the following streets: • .lackson Alley: 50`~'to 51st Avenues • Rainier Pass: Innsbruck Parkway to end • St. Moritz Drive: I-msbruck Parkway to end • Innsbruck Parkway: Rainier Pass to St. Moritz Drive • Innsbruck Parkway: St. Moritz Drive to Argonne Drive • Innsbruck Parkway: Argonne Drive to Pennine Pass • 45°i Avenue: Main Street to 3"~ Street. As detailed above, each subsequent year of the program an additional 300 - 600 lineal feet of cleaning and lining has been added. As discussed with the Council in 2008, the program would be increased to 5,144 lineal feet in 2009 to address continued water quality issues in our distribution system. This annual footage will push the extent of what Public Works can accomplish in-house without outside contracting for the prograu~. COUNCIL ACTION: CITY COUNCIL LIJTTIJR w .r r ,~ ~n ~ inn 1VLGGL111~' Vl. Y/VV/V7 AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: CITY MANAGER PUBLIC WORKS ITEM: RESOLUTION AUTHORIZING THE CLEANING BY: K. Hansen BY: AND LINING OF 5,144 LINEAL FEET OF WATER MAIN DATE: 4/1/09 DATE: UNDER THE MINNEAPOLIS 2009 PROGRAM, CITY PROJECT NO. 0903 Page two City staff conducted a random survey following the completion of the projects with positive comments received from the residents. Staff believes the program accomplished what was intended and eliminated the discolored water problem and restored the original diameter(s) of the existing piping system. The newly lined pipe should provide another 40 or more years of service. Based upon the positive results and project success of the past four years, staff conducted C-Factor testing on other known problem areas of the water distribution system. C-Factor testing involves isolating water main segments, flowing water and measuring pressures and flow rate. A C-Factor is then calculated which can be used to determine the amount of tuberculation in-pipe. Another way to look at a C-Factor is it is a measurement of resistance to flow in-pipe. New pipe will have a C-Factor of 120-125. We would have expected the C-Factors in the areas tested (based on age) to be in a range of 90-95. A general rule of thumb is values below a range of 70-75 would indicate a pipe in poor and tuberculated condition. The measured C-Factors in the 2009 proposed program area measured fi-om 37 to 74. Based upon the C-Factor testing and the rivo year program presented to the council in 2008, staff is reconunending a 2009 Cleaning and Lining Program for water main in the following streets: • h~nsbruck Parkway: Pennine Pass to Stinson Boulevard • Pemiiae Pass: North Upland Crest to Argonne Drive • Stinson Boulevard: North Upland Crest to Chalet Drive • Chalet Drive: Pennine Pass to Stinson Boulevard • 2"`~ Street, 2 % Street, & 3"~ Sh•eet: 44`x' to 45`x' Avenues. Staff conducted additional C-Factor testing on other complaint areas in 2008 and based upon the results, has prepared an annual program reconunendation on the attached map for 2010, 201 1 & 2012 maintaining the same budget levels. Fol• Review: The process of Mechanical Cleaning and Lining involves shutting down a pipe segment, cutting open and accessing (excavating and cutting open) the water main every 400 to 600 feet, and pulling or pushing a mechanical cleaning device (sometimes called a `pig') through the line to remove the encrustation. Depending on the severity of the interior buildup, a water line may have to be "pigged" repeatedly until the original interior diameter is restored. Since this process leaves the iron wall exposed, lining the interior pipe is necessary to prevent water contact with the iron surface which would allow the tuberculation process to start all over. Minneapolis utilizes Ceme~~t mw•tar (ii~i~~g by applying lean cement through a rotating head of a specific diameter. As the lining machine moves through the pipe, it leaves a smooth trowelled finish. The new lining of the pipe provides a smooth interior wall resistant to mineral deposits and future hiberculation buildup. Next to complete pipe replacement, this is the most expensive pipe rehabilitation technique. Costs for mechanical cleaning and cement mortar lining can range from X35 to $55 per foot, depending on the pipe diameter and severity of buildup. A potential cost to the homeowner is the access and operability of the curb stop or water shut off valve at the property line. In the Jefferson area, we experienced 4-6 services per block that needed repair. Consistent with our City Code, it is the homeowner's responsibility for the service line from the main in the street to the house. At the direction of the City Council, repairs and COUNCIL ACTION: CITY COUNCIL LETTER Meehn~ ot`. AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: PUBLIC WORKS CITY MANAGER ITEM: RESOLUTION AUTHORIZING THE CLEANING BY: K. Hansen AND LINING OF 5,144 LINEAL FEET OF WATER MAIN DATE: 4/1/09 UNDER THE MINNEAPOLIS 2009 PROGRAM, CITY PROJECT NO. 0903 BY: DATE: Page three replacements of water service lines are publicly bid and those prices for repairs or replacements are extended to the homeowners if they so choose. The inspection of the curb stops should be completed this spring in the proposed program area. Based upon the past 4 years program costs fi•om the City of Mimleapolis, staff is proposing a 2009 Program cost of $163,500, consistent with the amount established in the 2009 Water Construction Fund budget. RECOMMENDED MOTION: Move to waive the reading of Resolution 2009-xx, there being ample copies available for the public. RECOMMENDED MOTION: Move to adopt Resolution 2009-xx which accepts the Feasibility Report for the 2009 Water Main Cleaning and Lining Program and orders the Public Improvement for water main cleaning and lining of pipe totaling 5,141 lineal feet, under the City of Minneapolis water main cleaning and lining program for 2009. Attachments: Resolution Maps (2) COUNCIL ACTION: City of COLUMBIA HEIGHTS 2008-2009 WATER MAIN CLEANING AND LINING PROGRAM L E G E N D Main Valves ® Hydrant Lead Valves Service Watermain ^/ 2008 Cleaning and Lining (4299 ft) (Completed) ~° 2009 Cleaning and Lining (5166 ft) eater Zone ~~ Water ~~~ ~"~o„e C'ii~~ Limits Parks N Map Date: March 2009 A' •* ~~ 0 850 1,700 3,400 Feet Map Sources -Columbia Heights: Public Works Engineering GIS c,i7v car rrirn F~ Z T U Z 0 :_ F U z 0 T z City of COLUMBIA HEIGHTS 2010-2011-2012 WATER MAIN CLEANING AND LINING PROGRAM L E G E N D Main Valves ® Hydrant Lead Valves - Service Watermain ~~ 2010 Cleaning and Lining (4199 ft) ~~ 2011 Cleaning and Lining (3920 ft) ~~ 2012 Cleaning and Lining (4279 ft) Water Zone ~ Water ~~~,0~„0 CIt1' L]n11tS paik5 N Map Date: Apn12009 0 850 1,700 3,400 Feet Map Sources -Columbia Heights: Public Works Engineering GIS clew of PRIDLEI' clrv of ral~~ev Z r l r~ L Z L• l J G F V CITY COUNCIL LETTER Meeting of: 4/6/09 AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: CITY MANAGER PUBLIC WORKS ITEM: STREET LIGHTING UTILITY I BY: I{. Hansen I BY: DATE: 4/1/09 DATE: Background: The City for the protection and safety of its residents, property and vehicles provides street lighting, from which all residents and businesses benefit from. The City of Columbia Heights currently pays for all streetlights through the General Fund at a 2009 budgeted amount of $155,672 (except for petitioned lights, such as in alleys). An alternative revenue source to pay for this cost would be tlu•ough the creation of a sheet light utility. A street light utility would create a separate charge that would appear on the City's quarterly utility bill. The charge would help the City pay for the costs of establishing, maintaining and operating the street lighting and signal systems throughout the City. By establishing a street light utility, all costs would be removed from General Fund budget to an Enterprise utility fluid. The creation of a Street Light Utility is statutorily authorized by the State. Attached is a survey conducted by CEAM and the City of St. Cloud stunmarizing cities in Mimlesota that operate a Street Light Utility, and associated rates. Analysis/Conclusions: A summary of the adopted budget for the 2009 Street lighting is as follows: Xcel Energy Charges $145,500 Supplies $750 Contracted Electric/Structure Repairs $5,250 JPA's (signal energy costs) $21,000 Estimated staff/equipment costs $11,250 Total $183,750 The major cost is for energy budgeted at $145,500. The remainder is for persomlel, supplies, maintenance and repair of city owned streetlights, and JPA's with the City of Mimieapolis, Ramsey County and MnDOT for the City's share of signal energy costs. Rate Development: Charge based on usage, i.e. how many people and/or vehicles benefit from the streetlights for each type of property. The purpose of this proposal would be to charge more to commercial and multiple dwelling properties (more t•ip generations) vs single-family homes. • Commercial/Industrial: based on property square footage or lot size. • Multiple dwelling residential: based on the number of units at a given address. • Single family homes: per unit. • Those properties that benefit from any special city owned lights would pay an appropriate additional charge to cover the expenses of maintaining those lights -such as additional lights petitioned or requested outside of the intersection or mid-block light policy. • Those alley and other lights which were installed by petition will continue to be charged via special COUNCIL ACTION: CITY COUNCIL LETTER Meeting of: x/6/09 AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: CITY MANAGER PUBLIC WORKS ITEM: STREET LIGHTING UTILITY BY: K. Hansen I BY: DATE: 4/ 1 /09 DATE: Continued -Page 2 assessment as agreed to at the time the light was installed. Government entity owned properties would also bear their share of the costs for the streetlight per policy. Vacant lands would not be charged. The following represents possible rates for the street light utility. The acreages and number of parcel types have been estimated and will need to be verified. Using the following rates staff believes that the fluid would be self-supporting. Type: Cost per quarter: Single Family $5.50 Duplexes $4.00/unit Tln•ee units or more $2.50/unit Commercial/hldustrial/hlstitutional $16.00/acre Schools $16.00/acre The rates of the street light utility are based on the amount of revenue needed to offset current expenses in the general fiu~d to support the current level of operation, maintenance, and repair of streetlights. A draft ordinance has also been prepared that: • States the authority of the utility • Establishes the utility • Establishes the basis for rates and method of collection • Establishes which lands are excluded • Establishes the method to collect unpaid charges (certify to taxes) Recommended Motion: Direction on the implementation of a Street Light Utility Attachment: CEAM Street Light Utility survey Street Light Utility Ordinance (draft) KH:kh COUNCIL ACTION: DRAFT ORDINANCE AN ORDINANCE ESTABLISHING ARTICLE VII, CHAPTER 4 OF THE CITY OF COLUMBIA HEIGHTS CODE REGARDING STREET LIGHT UTILITY The City of Columbia Heights does ordain: Section 1. City of Columbia Heights Chapter 4 is amended to add Article VII Street Light System, Sections 4.701- ARTICLE VII. STREET LIGHT UTILITY Section 4.701 AUTHORITY AND PURPOSE Miimesota Statutes, Section 429.021 authorizes cities to install, replace, extend, and maintain street lights and sheet lighting systems and special lighting systems. Columbia Heights Code of Ordinances Chapter 4 Article 1 states that the City of Columbia Heights may create a Street lighting system for local improvements and which result in service charges may be totally or partially financed by the benefited properties. The city council has determined that in order to promote the general health, safety, and welfare of the citizens of the city, it is in the best interest of the citizens that the city operate and maintain acity-wide sheet lighting system utility and has further determined that the operation and maintenance of such utility benefits each and every property within the city. The city council has therefore determined that it is fair, appropriate, and reasonable that the costs of such operation and maintenance be paid on a fair and reasonable basis by all of the property in the city so benefited and the cost should be charged and collected from all such benefited property, except for those exempted by resolution. Section 4.702 STREET LIGHT UTILITY ESTABLISHED The City of Columbia Heights hereby establishes a street light utility. The system consists of all street light facilities owned by the city and all street lighting facilities for which die city purchases and supplies electrical energy. The operation of such utility shall be under the supervision of the City Engineer. Section 4.703 RATES AND COLLECTION OF FEES (a) Rates. The rates for street lighting are based on land use and special city-owned lights. The City Council may establish a mininnun rate for any property category within the city. (b) Calculation of Rates. The city council shall adopt a resolution establishing the rate of the service charge of each property. The charge to be billed to each property shall be a just and equitable share of the total cost of the service. Charges shall be apportioned similarly to similar types of property. (c) Collection of Fees. The service charges for street lighting shall be placed directly on the utility bill for each property. (d) Exemptions. A charge shall not be made against property that is: o Outside the corporate limits of the City; o Park Land o Public right of way o Vacant o Cemeteries Section 4.704 CERTIFICATION OF DELINQUENT ACCOUNTS Pursuant to Minnesota Statutes, Section 429.101 (7), cities may provide for the collection of unpaid special charges for all or part of the cost of the operation of a street lighting system. The certification of delinquent accounts to the county for collection shall be in accordance with the provisions of Chapter 4 Section 4.103. Section 2. Effective Date. This ordinance shall be in frill force and effect on Compiled by Engineering Department City of St. Cloud 2/24/2009 RESPONSE TO STREET LIGHT UTILITY SURVEY .:cities That Have .... E'stablished!! i Streetl Light ; When Utilities stab{fished Rate ,Annul Rate Apple Valley $1.64/month $19.68 per parcel Brooklyn Center $3.65/quarter $14.60 per parcel Brooklyn Park Residential - $5.75/quarter $23.00 per parcel Townhome - $4.00/quarter $16.00 per parcel Burnsville 2002 $2.53/month -Residential $30.36 per parcel $0.11/month/foot -Commercial and Industrial $132.00 per 100' lot 1993 $4.00/quarter -Single family $16.00 per parcel $4.00/quarter -Commercial $16.00 per parcel $3.00/quarter -Multi-family/unit/apt. $12.00 per unit Duluth 2008 $3.50/month $42.00 per parcel Eagan Implemented Neighborhood Lights: street light $4.00/quarter/lot -Single-family, twin homes $16.00 per parcel utility for local $4.00/quarter/lot - Townhomes (R3) $16.00 per parcel neighborhood $8.74/quarter/account -Multiple Residential (R4) $34.96 per account street lighting Individual Lights: in 1983 and $35.46/light/quarter - 100 WHPS $141.84 per parcel expanded it to $51.40/light/quarter - 150 WHPS $205.60 per parcel include major $45.25/light/quarter - 200 WHPS $181.00 per parcel intersection $57.73/light quarter - 250 WHPS $230.92 per parcel "Community" Community Lighting and Signals: lighting and $1.85/unit/quarter - R1/R2 $7.40 per unit traffic signals $1.48/unit/quarter - R3 $5.92 per unit in 1991. $1.09/unit/quarter - R4 $4.36 per unit $7.45/account/quarter -Non-residential $29.80 per account Cities That Have ;; ,!SfreefiLight,! !! When !1#lit-es. ' Estabtis~-ed Rate: flnnua! Rate Forest Lake 2008 $1.50 per Residential Equivalency Factor (REF) per month. One REF represents one typical $18.00 per parcel residential property. REF's to other properties is based on their comparison to a typical residential ro ert . Golden Valley $8.25/quarter -Ornamental $33.00 per parcel $5.00/quarter -Overhead $20.00 per parcel Maple Grove 1995 $5.60/quarter/residential unit $22.40 per parcel $0.96/quarter/1000 sf area (high lit areas) (i.e. -commercial/retail) $38.40 per 10,000 sf lot $0.43/quarter/1000 sf area (medium lit areas) $1720 per 10,000 sf lot $0.25/quarter/1000 sf area (low lit areas) (i.e. -industrial) $10.00 per 10,000 sf lot New Hope $1.50/month -Decorative $18.00 per parcel $1.05/month -Non-Decorative $12.60 per parcel Oakdale 1990 or 1992 $10.00 per quarter for single family equivalent (single family equivalent is 80' of street $40.00 per parcel fronta e Otsego 2009 Applicable to a special service district for commercial properties with decorative street lighting fixtures. $18.50 per acre per month for properties within the district. The fee is based on the estimated costs for operation of the lights and a 15% surcharge to accumulate funds for maintenance/replacement. The per acre basis for assessing the fee was decided upon in order to include properties within commercial development that do not abut a public street but which benefit from the installation of the decorative li hts. Plymouth Based on development (Ranges $0.25-$9/month) St. Paul St. Paul does not have an "official" Street Light Utility. They have a Right of Way Maintenance Assessment which includes maintenance of roadway, boulevard trees, sidewalks and street lighting. In 2005 the street lighting maintenance was added to the ROW Maintenance Assessment. Savage $2.99/month, all city properties $35.88 per parcel Shoreview 2004 $6.67 per unit per quarter -Single family, multi-family (per unit) or townhome $26.68 per unit $5.00 per unit per quarter -Condo, apartment or mobile home $20.00 per unit $20.02 per acre per quarter -Commercial, Industrial, Institutional $80.08 per acre South St. Paul 2009 $5.50 per unit per quarter -Single family homes $22.00 per unit $4.00 per unit per quarter -Duplex dwelling $16.00 per unit $2.50 per unit per quarter -Multi-dwelling properties $10.00 per unit $16.00 per acre per quarter -Commercial, Industrial, Institutional properties (minimum $64.00 per acre char e $10.00 er ro ert er uarter Stillwater 2003 $8.00 per quarter -Residential $32.00 per parcel Commercial -Based on acreage .::Cities That Have !!Established'. 'Stree# Light'. Uffities ', When Established '; Rate _... nnual Rate Waconia Residential: $2.65/month -Single Family $31.80 per parcel $5.30/month -Duplex $63.60 per parcel $7.91/month - Threeplex $94.92 per parcel $10.56/month - Fourplex $126.72 per parcel $16.83/month -Multiplex $201.96 per parcel Commercial, Smalllnstitutional, Industrial: $16.83/month - .01 to 1.0 acres $201.96 per parcel $22.44/month - 1.01 to 2.0 acres $269.28 per parcel $33.66/month - 2.01 to 4.0 acres $403.92 per parcel $49.98/month - 4.01 to 10.0 acres $599.76 per parcel $56.10/month - 10.01 to 100 acres $673.20 per parcel Woodbury $13.40/quarter -Single family street lights (Wedgewood) $53.60 per parcel $12.70/quarter -Single family street lights (IW, CLM, CAR, SUM & TAM) $50.80 per parcel $10.80/quarter -Single family streets (All other properties) $4320 per parcel $6.10/quarter -Single family street lights (Group 5) $24.40 per parcel $7.80/quarter -Townhome and quad street lights (Wedgewood) $31.20 per unit $6.70/quarter -Townhome & quad street lights (Seasons 5 & 6, WHL, ETH) $26.80 per unit $2.20/quarter -Townhome & quad street lights (Carriage Homes) $8.80 per unit $3.60/quarter -Townhome & quad street lights (Quads WW & CL) $14.40 per unit $4.60/quarter -Townhome & quad street lights (All other townhomes & quads) $18.40 per unit Cities that have considered but not approved Street Light Utilities: Minneapolis St. Louis Park Cities that are currently considering Street Light Utilities: Bemidji Edina Faribault Farmington Fridley Marshall Robbinsdale Rochester St. Cloud =~ `~ CITY COUNCIL LETTER WORK SESSION OF: APRIL 6, 2009 AGENDA SECTION: CONSENT ORIGINATING DEPT: CITY MANAGER NO: FINANCE APPROVAL ITEM: FIRST READING OF AN ORDINANCE BY: WILLIAM ELRITE BY: FOR A BOND SALE DATE: 04/02/2009 NO: Attached to this council letter is a document from Ehlers & Associates that highlights the purposes of the upcoming bond sale. The items covered by this bond sale are as follows: 1) Public Safety Center Bonds In 2008 the City sold $10,000,000 in bonds for the new Public Safety Building. At that time it was decided that we would need an additional bond sale in 2009 for the final costs of the building. The proposed bond sale is for $2,000,000. The cost of the bond sale for the first issue and this issue, along with capitalized interest, is approximately $500,000, which will leave a balance for construction of $11,500,000. If it is anticipated that the construction costs will be less, the bond amount can be reduced prior to the actual sale. However, the amount that is set in the ordinance caiuiot be increased without starting over. 2) Murzyn Hall Lnergy Savings Bond In 2008 the City Council entered into a conh•act with Honeywell for approximately $930,000 worth of energy saving improvements to Murzyn Hall. At that time the City Council reviewed selling capital improvement notes tlu•ough Honeywell. However, based on the advice of Mark Ruff, our financial advisor from Ehlers & Associates, the decision was made to not sell the capital improvement notes and to include the financing for these improvements along with our next bond issue. 3) City Waterline Lining Projects As has been the practice in the past, the City bonds for public improvements to our utility system on a two or three year cycle. This bond is for $300,000 for plamled waterline lining projects that will be competed in 2009 and 2010. This bond will be repaid from revenue in the Water fiend. 4) Special Assessment Bond It has been the practice of the City to bond for special assessment street projects on a three-year cycle. This bond finances the special assessment portion of the 2007 street improvements and the 2009 street improvements. 5) Taxable GO Tax Increment Bond This is for a taxable GO Tax Increment bond to provide tax increment financing for housing district improvements. The attached document provides the schedule for the bond sale that starts with the first reading on April 13 and ends with the actual award of sale on June 8, 2009. Currently interest rates are very favorable for municipal bonds. However, as shown on the attached schedule, which is based on the Columbia Heights Charter, it is difficult to sell bonds in a timely manner. Subsequently, all we can do is start the process at this time and hope that rates remain good until June 8. If rates are not favorable at that time, the sale can be delayed for a short period of time. However, under our charter, if the bonds are not sold within atwo-month period, the entire process needs to start over from the beginning. Staff will be available at the work session to respond to questions. Mark Ruff from Ehlers & Associates will be available at the council meeting on April 13, 2009. wE:s~„s o~oa2lcouNC« Attachment: Presale 2009A Debt Issuance Services March 23, 2009 Pre-Sale Report: x_,000,000 General Obligation Public Facilities Bonds, Series 2009A $_,000,000 Taxable General Obligation Tax Increment Bonds, Series 20098 Columbia(V)Heights Pre-Sale Report for the March 23, 2009 City of Columbia Heights, Minnesota Page 2 Debt Issuance Services ~- ~~.~ Details of Proposed Debt Proposed Issues: $ G.O. Public Facilities Bonds, Series 2009A; (the " 2009A Bonds'') The 2009A Bonds will be secured by the full faith and credit of the taxpayers of the City of Columbia Heights. $ Taxable G.O. Tax Increment Bonds, Series 2009B. The 2009B Bonds will be secured by the full faith and credit of the taxpayers of the City of Columbia Heights. Purpose: The 2009A Bonds will fund several projects in the City: 1. Public Safety Center. Proceeds in the amount of will pay for the remaining costs of the public safety center currently under construction. The term of this portion of the debt is expected to be years. The $10,000,000 bonds issued in 2008 funded the majority of this project. 2. Energy Savings: Proceeds in the amount of $930,000???? Will fiord costs associated with a contract with Honeywell to improve Murzyn Hall. The term of this debt is expected to be 15 years. 3. Water Projects: The 2009 and 2010 water lining projects totaling $300,000 will be funded and repaid with water revenues over 10 years. 4. Assessments: The 2007 street assessments in the amount of $350,000 and the 2009 street assessments in the amount of $240,000 (after an assumed 25% prepayment) will be funded and paid back over 10 years. The 2009B Bonds will fund to acquire foreclosed homes in the expanded area of the T-4/K-Mart TIF districts and will be repaid over 12 years. Authority: The 2009A Bonds are being issued pursuant to the City's Charter and Minnesota Statues, Chapter 475, Chapter 444 and Chapter 429. The public safety center and will count against the City's legal debt limit of 3% of market value. The City's remaining legal debt limit is over $ 000,000. The 2009B Bonds will be issued pursuant to the City's Charter and Minnesota Statues, Chapter 469. These bonds are paid primarily from tax increments and are not subject to the legal debt limit. Arbitrage Monitoring: There are IRS rules regarding the amount of interest that the City may earn on bond proceeds that must be taken into consideration. If the City spends the bond proceeds within 24 months according to specific percentages each six months, interest earned on the proceeds above the bond interest rate •' Pre-Sale Report for the March 23, 2009 -'~ = City of Columbia Heights, Minnesota Page 3 ~.~~~ ~C Rating: Debt Issuance Services does not need to be rebated or repaid. The excess interest earnings are known as arbitrage. The City will also need to keep its debt service funds within IRS parameters to avoid penalties for carrying too high of a balance during the life of the issue. It is anticipated that Moody's Investors Service will rate the Bonds "A1". The City could explore an alternate rating from Standard & Poor's. ~anl: C~ualification: Because the City is issuing less than $30,000,000 in the calendar year, the City will be able to designate the 2009A Bonds as "bank qualified" obligations. Bank qualified status broadens the market for the Bonds, which can result in lower interest rates. Term/Call Feature: The 2009A Bonds are to be repaid over a year period. Interest is payable semi-aimually, begimling February 1, 2009. Principal on the 2009A Bonds will be due on February 1 in the years 2011 tlu•ough . The 2009A Bonds maturing February 1, 2020, and thereafter will be subject to prepayment at the discretion of the City on February 1, 2019. The 2009B Bonds are to be repaid over a year period. Interest is payable semi-aimually, begimling February 1, 2009. Principal on the 2009A Bonds will be due on February 1 in the years 201 I tluough The 2009A Bonds maturing February 1, 2020, and thereafter will be subject to prepayment at the discretion of the City on February 1, 2019. Other Considerations: We will continue to monitor the market and the call dates for the City and will alert you to any future opportunities. Pre-Sale Report for the March 23, 2009 City of Columbia Heights, Minnesota Page 4 c., Debt Issuance Services -~- Proposed Debt Issuance Schedule Pre-Sale Review by Council: April 13, 2009 Second Reading of the Ordinance: April 27, 2009 Ordinance Published April 30, 2009 Distribute Official Statement: May 29, 2009 Conference with Rating Agency: Week of June 1, 2009 City Council Meeting to Award Sale of the Bond:: June 8, 2009 Estimated Closing Date: June 29, 2009 Attachments Sources and Uses of Funds Proposed Debt Service Schedule Ehlers Contacts: Financial Advisors: Mark Ruff (651) 697-8505 Stacie Kvilvang (651) 697-8506 Shelly Eldridge (651) 697-8504 Bond Analysts: Diana Lockard (651) 697-8534 Debbie Holmes (651) 697-8536 Bond Sale Coordinator: Alicia Aulwes (651) 697-8523 The Official Statement for this financing will be mailed to the Council Members at their home address for review prior to the sale date. Pre-Sale Report for the March 23, 2009 City of Columbia Heights, Minnesota Page 5 ~, 1 CITY COUNCIL LETTER WORK SESSION OF: APRIL 6, 2009 AGENDA SECTION: ORIGINATING DEPT: CITY MANAGER NO: FINANCE APPROVAL ITEM: LED SIGNAGE FOR THE LIQUOR BY: WILLIAM ELRITE BY: STORE ON CENTRAL AVENUE DATE: 04/02/09 NO: When the liquor store on Central Avenue was constructed the City ordinance for signage and the design guidelines did not provide for LED signs. Subsequently the monument sign was designed with a space in the center for the future addition of an LED sign. Based on this, staff is recommending the purchase of an LED sign to be placed in the opening of the current monument sign. LED signs provide an excellent and cost-effective method of advertising our business. The sign that staff is recommending would have a 20 square foot display area, which is the maximum allowed by the current sign ordinance. This is small in comparison to signs authorized and in use in surrounding coimnunities. The City's sign ordinance is also very restrictive in allowing for changing advertisements. Even with these restrictions, staff is confident that the addition of an LED sign will enhance our business. Staff has received tlnee price quotes from three competitive sign companies to install an LED sign that would fill the opening on the cun•ent monument sign. The proposed sign would provide full color and allow for future expansion of the display area if the City's sign ordinance is liberalized in the future. Staff is working with the tln•ee vendors and their proposals to ensure that we receive the best quality, most cost-effective sign to fulfill our needs. At this time it is estimated that the cost of the sign, with installation, will be $30,000 to $35,000. Before the sign can be installed we need to submit an application to the Plamming & Zoning Commission for a conditional use permit. Staff is planning to put this on the May 5 Plamling & Zoning agenda for review and approval. RECOMMENDED MOTION: The City Council approves submitting a conditional use application to the Plamling & Zoning Connnission for the installation of LED signage in the monument sign at the liquor store located at 4950 Central Avenue. WE:sms 0904022COUNCIL Attachment: Conditional Use Application with Two Pictln•es of Signs in Color COUNCIL ACTION: CITY OF COLUMBIA HEIGHTS CONDITIONAL USE APPLICATION To be filled out by City: CASE NO.: APPLICABLE ORDINANCE NO.: 9.104(H) PRESENT ZONING: PRESENT LAND USE PLAN DESIGNATION: DATE RECEIVED: DATE OF LETTER OF COMPLETION: APPROVAL DATE PER STATUTE: REVIEW PERIOD EXTENDED: To be filled out by Applicant: PROPOSED NAME OF DEVELOPMENT: City of Columbia Heights (Top Valu Liquor) PROJECT ADDRESS/LOCATION: 4950 Central Avenue NE, Columbia Heights, MN 55421 LEGAL DESCRIPTION OF PROPERTY INVOLVED (attach separate page if necessary): THE S 52.5 FT OF LOT 14 REV AUD SUB NO 15, TOG/W ALL OF LOTS 15 & 19 SD AUD SUB, EX RD, SUBJ TO EASE OF REC PRESENT USE OF PROPERTY: Municipal Liauor Store PROPOSED USE OF PROPERTY: Municipal Liquor Store REASON FOR REQUEST (please attach a written narrative describing the intended use of the property and justification for your request. Describe any modifications and/or limitations of the use That have been made to insure its compatibility with surrounding uses and with the purpose and intent of the Zoning Ordinance and the Comprehensive Plan.) APPLICANT City of Columbia Heights PHONE E-MAIL Bill.Elrite@ci.columbia-heights.mn.us PAGER ADDRESS 590 40`h Avenue NE 763-706-3626 FAX 763-706-3637 N/A CELL # N/A CITY Columbia Heiahts STATE MN ZIP 55421 FEE OWNER OF PROPERTY ADDRESS 590 40`h Avenue NE City of Columbia Heights PHONE 763-706-3600 FAX 763-706-3637 CITY City of Columbia Heights STATE MN ZIP 55421 Page 1 of 3 CITY OF COLUMBIA HEIGHTS CONDITIONAL USE APPLICATION THIS APPLICATION IS SUBJECT TO ACCEPTANCE BY THE CITY PLANNER AND REVIEW OF APPLICATION AND NECESSARY MATERIALS BEING SUBMITTED. ENGINEERING APPROVAL MAY ALSO BE REQUIRED AND MUST MEET ENGINEERING REQUIREMENTS SET BY THE CITY ENGINEER OR CONTAINED IN THE CITY CODE. ITEMS TO BE GIVEN TO APPLICANT WITH APPLICATION A. Application Checklist B. Schedule of Planning and Zoning Commission Meetings ITEMS TO ACCOMPANY CONDITIONAL USE PERMIT APPLICATION A. Submittals as required in the attached application checklist, detailing what is proposed for the property. B. Two copies of a list of property owners within 350 feet of the subject property. APPLICATION FEES: A. $200.00 Conditional Use Permit Fee TOTAL AMOUNT RECEIVED CITY RECEIPT NUMBER DATE RECEIVED Acknowledgement: The undersigned hereby represents upon all of the penalties of law, for the purpose of inducing the City of Columbia Heights to take the action herein requested, that all statements herein are true and that all work herein mentioned will be done in accordance with the Ordinances of the City of Columbia Heights and the State of Minnesota: APPLICANT SIGNATURE Walt Fehst, City Manager 03/24/2009 DATE Gary Peterson, Mayor 03/24/2009 PROPERTY OWNER SIGNATURE (If different from Applicant) DATE COMMUNITY DEVELOPMENT STAFF MEMBER AND TITLE DATE Revised: 2006 Approved by the Columbia Heights Planning Commission on Approved by the Columbia Heights City Council on Page 2 of 3 City of Columbia Heights 590 40t~' Avenue NE Attachment to Conditional Use Application Signage at Top Valu Liquor Central Avenue Store Sign description: The sign will be mounted in the center opening of the current monument sign. The outside frame will be approximately 40" high x 96" wide with a 4 inch boarder on all four sides leaving a message display area of approximately 19.56 square feet. The proposed sign will be as follows or the equivalent by a different manufacturer: Time-O-Matic Watchfire Twin-Pale 19mm pitch/5" tall copy. RBG full color Watchfire electronic message center. 262,144 color palette, 140 Horiz/ 70 Vert. viewing angle. Ingite Graphics Software, Temp sensor. TOM RF Wireless Modem. Steel tube fi•ameworlc will be fabricated to hold signs between brickwork. The illumination, brightness, timing, etc; will be in compliance with the City of Columbia Heights' sign ordinance. ~ 9 ~.~ s If ~ ~_~4 f ~' ~ ' . +t~ ~" S .~_ 'Le ~~ .fir. ~... .. ~ ~~ r~ti ~- .. _~~~ ,;, ;d ;~ ~r ~. l f~ x ..'.,~w ~ctY : ~ 4rr g ~ . ~ ~, _ Y ~~~ Y.~R'... k.. ry i , N ' ~ f Y ~ ~ tr ~'1 ~~ ~. '~ ~~r %~ .'t. ~1'~ ~~ ~ ~-e r. t . ""` r, 1 ,~~.ryl._ ~. [~f .., ~ . , ,. .f' ~ .. r~,,,~ ~_~ ~. . ~..w ~ w . '.~ ~.~ ~ ~ ~ ~b D~ :7 ~ „~~r s .~~~, w ~ ~ ~ vv~°` ~ `~~' ~~ ~~ ,~ CITY COUNCIL LETTER WORK SESSION OF: APRIL 6, 2009 AGENDA SECTION: ORIGINATING DEPT: CITY MANAGER NO: FINANCE APPROVAL ITEM: GUIDELINES FOR THE PREPARATION BY: WILLIAM ELRITE BY: OF THE 2010 BUDGET DATE: 04/02/09 ITT O With the recent reductions to local govermnent aid (LGA) and the probability of the City seeing a reduction of $500,000 to $1,000,000 in LGA for the 2010 budget, it is essential that the City Council set certain guidelines for the preparation of the 2010 budget. A key factor in this is that over the years the City has become reliant upon LGA to provide essential services to our residents. As part of the guidelines for the preparation of the budget, staff is recommending the development of a long-range plan so that over the next 3-4 years the City can totally eliminate the reliance on LGA as part of the operating budget, and that LGA be used for capital projects rather than day-to-day operations. This will make it much easier to deal with the fluctuations in LGA and will not affect the provision of essential services to our residents. The other altei7iative is to continue to rely on LGA to provide basic services and to keep making reductions in services whenever there is a fluctuation in LGA. If that is the direction of choice, then staff needs guidance as to the services the council would prefer to reduce in the 2010 budget. At the work session staff will present historic information on LGA, tax levies, and future projections for both of these items under along-range budgeting plan in addition to continuing to maintain expenditures under the rate of inflation. WE:sms 0904024COUNC[L COUNCIL ACTION: