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HomeMy WebLinkAbout07/12/2010 OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING JULY 12, 2010 The following are the minutes for the regular meeting of the City Council held at 7:00 p.m. on Monday, July 12, 2010 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. CALL TO ORDER/ROLL CALL/INVOCATION Invocation by Rev. David Briley, Oak Hill Baptist Church. Present: Council President Diehm, Councilmember Nawrocki, Councilmember Williams, Councilmember Nawrocki Absent: Mayor Peterson PLEDGE OF ALLEGIANCE - recited ADDITIONS/DELETIONS TO MEETING AGENDA Nawrocki indicated the Telecommunications Commission will meet Thursday, July 15 regarding the new cable franchise agreement proposal. The City Council is invited to attend. Nawrocki presented a check for his attendance at the city picnic. He had available information on the League of Minnesota Cities (LMC) policy committee. He is a member of the fiscal committee. Nawrocki stated he was asked to comment regarding the newspaper article on the City gym. He indicated the number of attendees, which is short of the City Manager's total. The City's portion of the gym cost was about $3.7 million and the School District budgeted $4.9 million. Under the Manager's report he will speak on 4643 Johnson Street and the K -Mart site cleaning. He questioned again the staff policy on meals and asked that it be reviewed. The notice from this meeting was not on the cable station. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS A. CAFR Award Presentation Bill Elrite, Finance Director, stated the award presentation would be made by Jim Knutson, representative of the GFOA. Knutson presented the certificate of achievement for reporting. He explained the significance and importance of the award. Columbia Heights has received this award for 19 consecutive years. There are only 93 others cities that received this award. This award is recognized by financial rating agencies. Fehst referred to the increase in our credit worthiness by two points. Knutson stated this award would be one of the factors in the rating determination. Fehst referred to criticism of payment to apply for this award. Knutson stated the application is in the $450 range. The two point credit increase will save thousands of dollars. Knutson indicated the work and requirements are substantial to qualify for this award. Fehst referred to the Auditor and the misconception that they end the city's financial reports. The work that is done for the audit is by the staff. The Auditor reviews the final reports. Knutson stated that the Auditor's job is to review the reports, not prepare them. Joseph Kloiber, Assistant Finance Director, accepted the award and thanked the GFOA for their expertise and help over the years. Nawrocki stated he is the one that questions the cost to apply for the award. Both the Director and Assistant Director are involved in the GFOA. Nawrocki referred to the interne listing for the 2008 award. There were 125 entities listed as recipients, with ten of them located in Anoka City Council Minutes Monday, July 12, 2010 Page 2 of 10 County. Nawrocki indicated that the audit report is difficult for a lay person to understand. This web site also takes applications for budget awards and it would be interesting to see their comments on our budget. B. Audit presentation - Dave Mol, HLB Tautges Redpath Ltd. Elrite introduced Dave Mol. Mol agreed that the Audit is difficult to understand, but indicated where to find a summary explanation. Mol referred to page two of the 2009 Audit Review. He showed the Financial Report compiled by City staff He referred to the Audit standards that are followed. For 2009 there was a "clean opinion ", meaning the statements are free of material misstatements. Mol referred to the Office of the State Auditor's audit guide for legal compliance, which covers seven categories and there were no findings of noncompliance for 2009. There were two deficiencies noted, recreational revenue documentation and the request that resolutions with attachments have a dollar amount included in the resolution. Mol indicated there were no new accounting standards adopted and no changes in application of existing policies. He referred to accounting estimates in the financials. No difficulties were encountered and there were no disagreements with management. Mol referred to the financial result page of the summary broken down by category. Mol described fund balances, indicating a decrease of $7 million for the Public Safety Building and the Gymnasium. Nawrocki referred to the management letter, page 4 chart of cash balances, fund balances, and the change in fund balance. Mol stated in 2009 the inter -fund includes transfers with increases in TIF funds, equity, end of fiscal year. and cash balance. Klaiber explained the definition of net assets. Nawrocki questioned how values are determined. Mol indicated it is based on historical cost. Nawrocki referred to page 6, asking if the debt service includes the liquor store. Mol stated this is the levy for debt service for the year. Nawrocki asked if this includes the County levy for our HRA. Kloiber stated that is a levy of the County. Nawrocki referred to the page 8 TIF levy for the Sheffield area and questioned fund 652. Kloiber stated that the city borrowed from the sanitary sewer fund for this project. Kloiber described other funds. Nawrocki questioned "all other" on page 9. Mol listed the items, i.e. licenses and permits. Nawrocki questioned our investment losses. Mol stated the standards are at market value, and the city holds investments to maturity. Nawrocki questioned page 12. TIF for the central business district. Kloiber stated this receded to the General Fund. Nawrocki indicated the LGA un- allotment was more than anticipated. Elrite described the un- allotment that was anticipated, the final amount, and actions taken anticipating these cuts. Nawrocki referred to page 13, general fund balance increase. Mol indicated the budget progression on page 12. Fehst asked if the employee furlough was included in this. Elrite stated yes. Nawrocki referred to page 17, Library balance for capital equipment and questioned interest on this. Kloiber stated this is credited to the Library's operating budget. Nawrocki referred to page 22, questioning 2008. Mol stated this is the balance for the end of 2009. Nawrocki referred to page 30, Public Safety Building and questioned the total cost of the project. Elrite stated that the $12,246,000 includes the land cost. The $11.5 is for the construction of the building. Nawrocki requested more information on this. Nawrocki referred to page 35, Liquor stores that do not include debt service. Mol stated this does not include non - operating expenses. Elrite described depreciation and amortization. Nawrocki questioned where he would find the City Council Minutes Monday, July 12, 2010 Page 3 of 10 profitability ofthe liquor stores. Mol directed him to the correct pages for this information and the dollar amount. Nawrocki referred to page 45, additional accounting requirements. Mol stated intangibles do not apply to Columbia Heights, derivatives do not apply, and any impact on the city will be in 2011 when accounting standard 54 is implemented. Nawrocki referred to page 54 and questioned our progress on recreational documentation not being resolved. Elrite stated this is a minor issue and will be reviewed again this year. Nawrocki questioned the recommendation about attachments to the resolution. Mol stated that the resolution document should include the dollar amount of the attachment. Nawrocki questioned OPEB. Mol stated this is "other post employment benefits". Nawrocki referred to government, proprietary funds, and fiduciary funds. Mol indicated this is explained on page 180. Nawrocki asked for a comparison of 2009 to the budget. Mol directed him to page 12 of the management document. Diehm stated that for members of the public that want an overview, pages 15 to 30 make it easy to understand. Finances are handled very well by our finance department with checks and balances by our Audit firm. She indicated that the corrections, such as adding the dollar amount to resolutions, are easy to resolve. Diehm thanked the auditor for taking the time to explain the audit in a way we can understand. Williams complimented Elrite, his staff, and the auditor for their work on this audit. Donna Schmitt, 4260 Tyler Street, stated in the introduction to the CAFR, page six lists Burlington Northern Railroad as one of the major employers. They are not in Columbia Heights. C. Proclamation - 2010 National Night Out Diehm indicated that this is to encourage neighbors to gather and unite against crime. Diehm read the proclamation declaring August 3 m as National Night Out. She encouraged those interested to contact our police departrnent. CONSENT AGENDA Fehst removed item D for discussion. Nawrocki requested to remove C, E, and G for discussion. City Manager Walt Fehst took Council members through the Consent Agenda A. Approve minutes ofthe June 28, 2010 City Council meeting. Motion to approve the minutes of the June 28, 2010 City Council meeting. B. Accept minutes ofthe Columbia Heights Boards and Commissions Motion to accept the minutes of the June 2, 2010 Library Board meeting C. Adopt Resolution No. 2010-52, being a Resolution designating election judges and salaries for the 2010 elections. Removed D. Adopt Resolution No. 2010-54, to Approve Amendment #2 to the Northstar Corridor Development Authority or alternate Motion to adopt Resolution No. 2010-55_ to withdraw from the Northstar Corridor Development Authority. — removed City Council Minutes Monday, July 12, 2010 Page 4 of 10 E. Adopt Resolution No. 2010 -53, being a Resolution to approve acquisition of 3842 Tyler Street - removed F. Approval of the attached list of rental housing applications. Motion to approve the items listed for rental housing license applications for July 12, 2010 in that they have met the requirements of the Property Maintenance Code. G. Approve Business License Applications — removed H. Approve payment of the bills Motion to approve payment of the bills out of the proper funds, as listed in the attached check register covering Check Number 135304 through 135472 in the amount of $3,099,681.37. Motion by Nawrocki, second by Kelzenberg to approve the Consent Agenda items A, B, F, and H. Upon vote: All ayes. Motion carried. C. Adopt Resolution No. 2010 -52, being a Resolution designating election judges and salaries for the 2010 elections. Nawrocki questioned the symbols on the resolution. City Clerk Muscovitz stated this indicates the new judges. Motion by Williams, second by Kelzenberg, to waive the reading of Resolution No. 2010 -52, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Kelzenberg, to adopt Resolution No. 2010 -52, being a Resolution designating election judges and salaries for the 2010 Primary and General Elections and designate the City Clerk authority to appoint emergency judges. Upon vote: All ayes. Motion carried. D. Adopt Resolution No. 2010 -54, to Approve Amendment #2 to the Northstar Corridor Development Authority or alternate Motion to adopt Resolution No. 2010 -55, to withdraw from the Northstar Corridor Development Authority. Fehst stated the Joint Powers Agreement (JPA) was passed when the process began and has been amended once. They recommend adopting amendment #2 or would allow members to opt out of the JPA. This board will continue to work toward bringing this transportation line to St. Cloud. This does not affect us, but a lot of tax money is spent on this and it is good to have a representative to attend and follow this group. Only two townships did not act on this, nor has the City of Minneapolis. Nawrocki stated that residents pay for this through County taxes. He stated he was waiting for the answer from the City of Minneapolis. Diehm indicated there is value to having "a spot at the table ". Motion by Diehm, second by Kelzenberg, to waive the reading of Resolution No. 2010 -54, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Donna Schmitt, 4260 Tyler Street, recommended this resolution not be adopted as we are represented through our County Commissioner. This train is a drain to our county. Diehm indicated that under our new policy Councilmember Nawrocki, a member of this commission, is City Council Minutes Monday, July 12, 2010 Page 5 of 10 not reimbursed for travel or meals. As long as someone is willing to serve, it would be good to have someone there. Nawrocki stated that our County Commissioner does not serve on this body. Motion by Williams, second by Kelzenberg, to adopt Resolution No. 2010 -54, being a Resolution to approve Amendment No. 2 to Joint Powers Agreement Establishing the Northstar Corridor Development Authority. Upon vote: All ayes. Motion carried. E. Adopt Resolution No. 2010 -53, being a Resolution to approve acquisition of 3842 Tyler Street Fehst stated this property is only 420 sq. ft. and would be purchased under the blighted property initiative. We are looking to purchase the property next to this also. Diehm state this was built in 1921 and the only bathroom is in the unfinished basement. There are mold issues. Nawrocki asked if Council authorized staff to look this property. Fehst stated that Council authorized staff to look to purchase blighted properties under $50,000. Motion by Kelzenberg, second by Williams, to waive the reading of Resolution 2010 -53 there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Kelzenberg, second by Williams, to adopt Resolution 2010 -53, approving the acquisition of property located at 3842 Tyler Street Northeast; furthermore to authorize the Mayor and City Manager to enter into an agreement for the same. Upon vote: All ayes. Motion carried. G. Approve Business License Applications Nawrocki asked if the tobacco license is for a smoke house or to just sell cigarettes. Fehst stated it is just a market. Nawrocki questioned the Apex Alarm Company. Jim Hoeft, City Attorney, stated it is a door to door solicitation. Diehm indicated this is for the sale of home alarm systems. Motion by Kelzenberg, second by Williams, to approve the items as listed on the business license agenda for July 12, 2010 as presented. Upon vote: All ayes. Motion carried. PUBLIC J: '_ 1 GS - none ITEMS FOR CONSIDERATION - none ADMINISTRATIVE REPORTS Report of the City Manager Fehst stated that the Franchise Ordinance Committee proposal includes the reduction of our Cable TV studio. We would retain some of the equipment and have contacted the School District to discuss re- establishing a studio at the school. The Telecommunications Commission will meet on July 15 at 7:00 p.m. and has invited the City Council to hear the proposal. Diehm indicated she will need to attend the Charter Commission meeting that evening. Nawrocki referred to a letter from 4643 Johnson Street regarding apartment parking and requested a report on this. Fehst stated staff will follow up on this. Nawrocki stated that on the east side of the K -mart property there is a big hole that needs seeding and clean up to keep the dust down. Nawrocki stated that the city's policy of reimbursement for employee lunches should be looked at, including the city council. Diehm requested this be placed on a work session. City Counci] Minutes Monday, July 12, 2010 Page 6 of 10 CITIZENS FORUM Robert Wnzocc5ll67 Street, indicated he has had trouble with the City Forester for seven and one- halfyears regarding a fallen tree and his inability to have it replaced. He has been on the tree replacement list for years and has seen other neighbor's trees replaced. He stated that his stump was replaced with compost that created nothing but weeds. Fehst stated that he would come to Mr. Wamer' s home tomorrow with the city forester. Fehst stated that we are the only city that contributes 25 percent to tree removal. Steve Iserman, 662 40 Avenue, stated that he lives next to an abandoned building, 666 40 which is overgrown by brush that is getting into the power lines. Diehm stated that staff would look into this. Barb Black, 47 and Johnson, indicated a parking issue with her apartment neighbor . There is also a lot o[noise. Dwayne Morrell, 4212 Reservoir Blvd., indicated that the FAA will meet with pilot and airline groups, which shows his point that there are problems with close calls in air flights. He referred to an inappropriate comment made to him by staff. He thanked the city for their follow up with the air controller's office. Fehst stated he was assured there was not a near miss. Diehm thanked him for the update. Bob Odden, 1201 421/2, invited residents to visit our recycling center and to do more recycling. Jeff Diehm, 5125 Si. Moritz, stated that the home discussed earlier is selling for $39,900. Someone could buy that house and live there. Fehst stated that the last two or three homes like this were purchased before we could buy them. The problem is that buyers rent this type of home without fixing them. JeffDiehm referred to the outpouring against the Residential Inspection program, but questioned what should be done about homes like this. These homes still have dirt floors. Is that what we want for our city? This is a model of the house we are targeting to replace. He stated that we have to stop referring to Grand Central Lofts as the K-Mart site. '' Gregory Sloat, 4731 6 Street, stated that we �o no1 want to revisit RIBS. Donna Schmitt referred to a property purchased for $17,000 that the new owner refurbished and is now an excellent home. She suggested incentives or grants fbrochubbiow homes. Fehst stated that we work with GHMIC for this type nfproject funding. Fehst stated the benefits of purchasing these blighted properties and the incentive to make improvements in the rest of the neighborhood. Nawrocki stated he looked at this home and the tax statement and this house is not fixable. ADJOURNMENT Council President Diehm adjourned the meeting to a closed Executive Session for the purpose of labor negotiation at 9:35 p.m. Diehm encouraged residents to remember our service men and women and do a random act of kindness. Patricia Muscovitz CMC City Clerk RESOLUTION 2010-52 City Council Minutes Monday, July 12, 2010 Page 7 of 10 BEING A RESOLUTION DESIGNATING ELECTION JUDGE SALARIES AND ELECTION JUDGES FOR THE 2010 PRIMARY AND GENERAL ELECTIONS WHEREAS: There are scheduled elections in the City of Columbia Heights and the State of Minnesota; and WHEREAS: Pursuant to City Charter, Section 30, and M.S.S.204A, the Council shall appoint the following qualified voters to be judges for the 2010 Primary and General election. Precinct 1-Murzyn Hall -530 Mill St. HJ Faye Cleasby AHJ Darlene Bieljeski Dolores Strand Fran Jensen Wanda Heining Charles Kewatt Robert Petty Joyce Shellito Sandy Engquist Jeanne Andrychowicz Ardeth Bircher @Lori Ritzko @Katie Landwehr Precinct 2- Immaculate Conception -4030 Jackson St. HJ Jo Ann Kewatt AHJ Bradley Schmitt Mark Emme Jacque Block Cliff Shedlov Gretchen Gallagher Weinstein Bev Holub Michael McGee Clara Shattuck @Michelle Hass @Robert Peltier @lavresshia Baker Precinct 3 - Parkview Villa -965 40` Avenue HJ Muriel Nichols AHJ Charles Helland Georgene Baker Marna Gomez Jeani Cox Dolores Fowler Dennis Ecklund Marilyn Vaughan Delores Jacobsen @Teresa Carson @Rebecca Chudek @Kenny St. Julien Precinct 4- Highland Elem School -1500 49 Avenue * *HJ Marsha Stroik AHJ Joel Andrychowicz Shirley Browning Betty Krahl Soundra Burgoyne Karen Davenport Crystal Cohen Karli Burquest @Deborah Nero @Thomas Dimock @Jeffery Chudek City Council Minutes Monday, July 12, 2010 Page 8 of 10 @Anthony Dischinger Precinct 5-First Lutheran Church-1555 40th Ave HJ Joan Kinde AHJ Joanne Nelson Nancy French Irene Ricci Richard Meixner Lorrie Nalezny Clara Schmidt Marian Luke Sharon Shedlov @Debra Grisco @Lamont Peoples Emmanuel Garrett @Kasey Corbett Precinct 6-Highland Elem. School-1500 49 Ave HJ Stephen Iserman AHJ Diane Henderson LaVone Seim Kay Mayer Eva Pelton Doris Sunheim Carol Lawler Barbara Marshall Mary Meier Candace Blaido @Kathy Fossum @Bruce Shellito @Megan Kriesel Precinct 7-Valley View Elem School-800 49" Ave HJ Ann Kronstedt AHJ Joan Fuhrmann Kathryn Morales James Hutchinson Tyrone Sweezo Barb Nundahl John Vachuska Jane lle Nero Carol Felland Wesley Green Fatuma Elmi @Arthur Goedeking @Bee Xiong Precinct 8-Valley View Elem School-800 49 Ave **HJ Aurora Johnston AHJ Catherine Vesley Stephen Emme Mary Dowd le Irene Sunt *Marvin Helm Dorothy Penate Jenna Fish Carol Geier Sue Murzyn Laurel Best Michelle Ferreira @Matthias Waldeman City Council Minutes Monday, July 12, 2010 Page 9 of 10 NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Columbia Heights does appoint the afore mentioned as election judges, by precinct, for the Primary Election on August 10, 2010 and the General Elections on November 2, 2010, with an hourly remuneration of $11.00 for Head Judge, $10.75 for Assistant Head Judge, and $10.50 for an Election Judge. The City Clerk may designate emergency judges, as necessary. RESOLUTION 2010 -54 BEING A RESOLUTION TO APPROVE AMENDMENT NO. 2 TO JOINT POWERS AGREEMENT ESTABLISHING THE NORTHSTAR CORRIDOR DEVELOPMENT AUTHORITY. Whereas, the Northstar Corridor Development Authority (NCDA) was established in May of 1997 pursuant to a joint powers agreement entered into by the counties, county regional railroad authorities, cities, and towns along the Northstar Corridor from Minneapolis to the St. Cloud area; and Whereas, the City of Columbia Heights entered into the Joint Powers Agreement, as previously amended in 1999, (hereinafter the "Agreement ") for the purpose of meeting the future transportation needs of the Northstar Corridor from the St. Cloud area to downtown Minneapolis; and Whereas, the NCDA has, in collaboration with the Minnesota Department of Transportation ( "Mn /DOT ") and the Metropolitan Council, completed the design and construction of the first phase of the Northstar commuter rail system from Big Lake to Minneapolis; and Whereas, revenue service of the first phase of the Northstar commuter rail system commenced on November 16, 2009 and is owned and operated by the Metropolitan Council; and Whereas, the members desire to amend the Agreement to streamline the operations of the NCDA, in order to efficiently and cost effectively complete the Northstar commuter rail system to the City of St. Cloud. Now, therefore be it resolved that the City of Columbia Heights hereby approves Amendment No. 2 to the Agreement. Be it further resolved that the Mayor and City Manager are hereby authorized to execute Amendment No. 2 to the Agreement, substantially in the form presented. Be it further resolved that the City Clerk is directed to prepare a certified copy of this Resolution and deliver it, together with the executed signature pages to Amendment No. 2 to the Agreement, to the Chair of the NCDA. RESOLUTION NO. 2010 -53 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE AGREEMENT FOR CERTAIN REAL PROPERTY LOCATED AT 3842 TYLER STREET NORTHEAST IN THE CITY AND ASSIGNMENT THEREOF TO THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED By the City Council (the "Council ") of the City of Columbia Heights, Minnesota (the "City ") as follows: Section 1. Recitals. 1.01. The Columbia Heights Economic Development Authority (the "Authority") administers the Downtown CBD Redevelopment Project (the "Project ") within the City, which was established under Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act "). 1.02. The Authority has undertaken a program to acquire homes in the Project in order to address foreclosure problems and remediate and prevent the emergence of blight. 1.03. The City, as a state public body under Section 469.041 of the HRA Act, is authorized to make contributions to the Project. 1.04. In order to acquire certain properties in a timely fashion, the City has determined to assist with such acquisitions by negotiating with sellers and entering into purchase agreements on behalf of the Authority. 1.05. City staff have negotiated a Real Estate Purchase Agreement with Fannie Mae (the "Seller ") dated as of June 29, 2010, including all related addenda and disclosures thereto (collectively, the "Purchase Agreement "), for real property located at 3842 Tyler Street Northeast and legally described as follows: Lot 7, Block 4, Waltons 1 Subdivision of Reservoir Hills(the "Property"), which Purchase Agreement is contingent upon approval by the City Council. 1.06. The City intends to assign its interests in the Purchase Agreement to the Authority, contingent only upon acceptance by the Authority of such assignment. 1.07. The Purchase Agreement has been prepared and submitted and is on file with the City Manager. City Council Minutes Monday, July 12, 2010 Page 10 of 10 Section 2. Approval and Assignment. 2.01. The Purchase Agreement for the Property is hereby approved, and the execution of the Purchase Agreement by the City is hereby ratified. Pursuant to the Purchase Agreement, the City will purchase the Property for $39,900. City staff and officials are authorized and directed to take all such other actions to complete the purchase of the Property, including without limitation execution of all documents and agreements related to such transaction. 2.02. Contingent upon approval of the Authority, the City hereby assigns its interests in the Purchase Agreement to the Authority. City staff and officials are authorized and directed to take all such other actions to complete the assignment of the City's interests in the Purchase Agreement to the Authority, including without limitation execution of any documents and agreements necessary to effectuate such assignment.