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HomeMy WebLinkAbout11/13/2012 Regular Meeting CITY OF COLUMBIA HEIGHTS Mawr Gary L.Peterson 590 40th Avenue NE,Columbia Heights,MN 55421-3878 (763)706-3600 TDD(763)706-3692 Couucilmembers Visit our website at.-www.ci.columbia-heiehts.mmus Robert A. Williams Bruce Nawrocki Tammera Diehm Donna Schmitt City Manaeer Walter R.Fehst The following is the agenda for the regular meeting of the City Council to be held at 7:00 PM on Tuesday, November 13, 2012 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. The City of o um is Heights does not iscnmmate on the basis of isa i ity 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 CALLANVOCATION Invocation by Pastor Bill Hugo of St. Matthew Lutheran Church 2. PLEDGE OF ALLEGIANCE 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 after the agenda preparation deadline.) 4. PROCLAMATIONS, PRESENTATIONS, RECOGNITION,ANNOUNCEMENTS, GUESTS 5. CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as the next order of business.) A. Approve minutes of the October 22,2012 City Council Meeting Pg 4 MOTION: Move to approve the minutes of the October 22, 2012 City Council Meeting B. Adopt Resolution No. 2012-141,Canvassing General Election Returns of November 6 2012 pgl g MOTION: Move to waive the reading of Resolution 2012-141, there being ample copies available to the general public. MOTION: Move to adopt Resolution No. 2012-141,being a Resolution Canvassing Municipal General Election Returns and approve the signing of the Abstract. C. Adopt Resolution 2012-142, being a Resolution continuing participation in the Anoka County pg2 9 HRA Lev Program for fiscal years 2013 to 2017. MOTION: Move to waive the reading of Resolution 2012-142, there being ample copies available to the public. MOTION: Move to approve Resolution 2012-142, continuing participation in the Anoka County HRA Levy Program for fiscal years 2013 to 2017. D. Award audit services contract for fiscal years 2012-2014. Pg3 6 2 City Council Agenda Tuesday,November 13,2012 Page 2 of 2 RECOMMENDED MOTION: Move to award the City's audit service contract to HLB Tautges Redpath, Ltd. for fiscal years 2012-2014, and to authorize the Mayor and City Manager to enter into a contract for same. E. Approve Business License Applications Pg51 MOTION: Move to approve the items as listed on the business license agenda for November 13, 2012 as presented. F. Approval of the attached list of rental housing licenses Pg54 MOTION: Move to approve the items listed for rental housing license applications for November 12,2012 in that they have met the requirements of the Property Maintenance Code. G. Payment of bills pg58 MOTION: Move that in accordance with Minnesota Statue 412.271, subd. 8,the City Council has received the list of claims paid covering check number 145565 through 145820 in the amount of$794,781.59 MOTION: Move to approve the Consent Agenda items. 6. PUBLIC HEARINGS 7.ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions First Reading of Ordinance No. 1610 Establishing Violation Policy for Liquor Licenses Pg6 7 MOTION: Move to waive the reading of Ordinance No 1610, there being ample copies available to the public. MOTION: Move to set the second reading of Ordinance No. 1610 for Monday,November 26, 2012 at approximately 7:00 pm in the City Council Chambers. B. Bid Considerations C. New Business and Reports 8. ADMINISTRATIVE 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.ADJQUWMEN Walter R. Fehst, City Manager WF/tal 3 CITY OF COLUMBIA HEIGHTS Mayor Gary L.Peterson 59040 1h Avenue NE,Columbia Heights,MN 55421-3878 (763)706-3600 TDD(763)706-3692 Councilmembers Visit our website at.www.ci.columbia-heiehts.mn.us Robert A. Williams Bruce Nawrocki Tammera Diehm Donna Schmitt City Manaeer Walter R.Fehst The following is the minutes for the regular meeting of the City Council to be held at 7:00 PM on Monday, October 22,2012 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia eights, 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 Present: Mayor Peterson, Councilmember Williams, Councilmember Diehm and Councilmember Nawrocki. Absent: Councilmember Schmitt Pastor Dan Thompson of Heights Church gave the invocation. 2. PLEDGE OF ALLEGIANCE- Recited 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 after the agenda preparation deadline.) Peterson pulled Resolutions 2012-138 and 2012-140, as they have been brought into compliance. Nawrocki indicated that he had some questions about the water sampling going on in conjunction with the smoke testing and newsletter. 4. PROCLAMATIONS,PRESENTATIONS,RECOGNITION,ANNOUNCEMENTS, GUESTS A. Proclamation declaring Thursday, October 25, 2012 as Earl E. Bakken Day Peterson declared Thursday, October 25, 2012 as Earl E. Bakken Day in honor of Mr. Bakken and his accomplishments. Bakken was a graduate of Columbia Heights High School in 1942 and went on to co-found Medtronic and invented the cardiac pacemaker in 1957. In June 2012 he was chosen as the school district's 2012 Alumnus of Distinction. Bakken will be honored with a dinner and program at Jax Cafe in Minneapolis with all proceeds going to the CHHS Alumni Scholarship Foundation. B. Presentation of IACP (International Association of Chiefs of Police) Community Policing Award to the Columbia Heights Police Department. The award will be presented by City of Mankato's Director of Public Safety Todd Miller, who is the IACP's regional representative. 4 City Council Agenda Monday,October 22,2012 Page 2 of 14 Mike Miller, Director of Public Safety for the City of Mankato, thanked all of the council for letting them come here this evening. Miller is also the chair of IACP committee and has been giving out this award for 14 years. This committee recognizes the best of the best of the Police and Public Safety Departments worldwide that make communities safer. There are thirty members on the committee and take applications a year in advance. They have already had submissions for next year from India, Pakistan, Israel, and Canada. There is a rigorous process that they go through to find their winners and finalists. This year there were four winners in the different population categories; the City of Columbia Heights was the winner in the 20,000 and under population, in the 20,000-50,000 the committee had good submissions and had finalists, but no winners were selected in this category. In the 50,000-100,000 population categories, the City of Duluth was the winner this year. The submissions then went on to the final judging in Washington D.C. in early August, in which the City of Columbia Heights was selected. Miller stated the mayor, council and members of the community should be very proud of our police department and their community efforts to reduce crime in Columbia Heights. Miller introduced Rusty Smith from Cisco. Smith welcomed everyone and indicated Cisco along with IACP looks at the applicants. Smith stated he lives in the area and is thrilled to be a part of this and gave his congratulations Miller stated on October 3, 2012 the IACP president presented the award to CHPD. A lot of hard work goes into obtaining this award and this is why they present it locally to the agency and city. Miller presented the award to Mayor Peterson and Chief Nadeau. Peterson said everyone in this room is part of getting this award. He thanked everyone for their participation and stated it is a group effort. Chief Nadeau stated this is an incredible honor for our police department. He stated they are all heroes and thanked the partners from School District, Columbia Heights Academy, and Highland Elementary. Staff stepped up time and time again with programs and volunteer efforts. Nadeau thanked the council for supporting them and for making a difference working in the community. 5. CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as the next order of business.) A. Approve minutes of the October 8,2012 City Council Meeting MOTION: Move to approve the minutes of the October 8, 2012 City Council Meeting. B. Adopt Resolution 2012-131,being a resolution rescheduling the regular Council Meeting of November 12, 2012—Removed. 5 City Council Agenda Monday,October 22,2012 Page 3 of 14 C. Acceptance of a Matching Grant in the Amount of$21,152.80 for Playground Equipment Replacement at LaBelle Park MOTION: Move to accept the grant for LaBelle Park in the amount of$21,152.80, appropriating matching funds of$23,975.20 from the Park Development Fund 412, and furthermore authorize the Mayor and City Manager to enter into an agreement for the same. D. Approve Business License Applications MOTION: Move to approve the items as listed on the business license agenda for October 22, 2012 as presented. E. Adopt Resolution 2012-134 Being a Resolution Ordering Preparation of a Report for the Zone 7 Street Seal Coat Program, City Project No. 1301 -Removed F. Adopt Resolution 2012-135 Being a Resolution Ordering Preparation of a Report for the Zone 3 Concrete Street Rehabilitation Program, City Project No. 1302-Removed G. Approval of the attached list of rental housing licenses- Removed H. Reissue rental license to Westchester Investments, LLC for rental propelly located at 3732 3rd Street NE MOTION: Move to issue a rental housing license to Westchester Investments, LLC to operate the rental property located at 3732 3rd Street N.E. in that the provisions of the Property Maintenance Code have been complied with. I. Reissue rental license to Brad Truong for rental roperty located at 5005 7th Street NE MOTION: Move to issue a rental-housing license to Brad Truong to operate the rental property located at 5005 7th Street N.E. in that the provisions of the Property Maintenance Code have been complied with. J. Adopt Resolution 2012-136,being a resolution establishing limited clean up and properly damage protection for sewer back-ups and water main breaks for water and sewer customers Removed K. Payment of Bills MOTION: Move that in accordance with Minnesota Statue 412.271, subd. 8 the City Council has received the list of claims paid covering check number 145384 through 145564 in the amount of $834,833.34. Nawrocki indicated he would like to have items B, E, F, G and J removed from the consent agenda for further discussion. Motion by Diehm, seconded by Williams,move to approve the consent agenda items,with exception to items B, E, F, G, and J. Upon vote, all ayes, motion carried. Fehst took the council through the remaining items on the consent agenda. Item B (removed from consent). Discussion on Adopt Resolution 2012-131,being a resolution rescheduling the regular Council Meeting of November 12, 2012. Nawrocki stated he wanted the public to understand that the first regular council meeting of the 6 City Council Agenda Monday,October 22,2012 Page 4 of 14 month falls on Veterans Day and since the City offices are closed, we need to reschedule the meeting to Tuesday,November 13, 2012. Motion by Diehm, seconded by Williams, to waive the reading of Resolution 2012-131, being ample copies made available to the public. Upon vote, all ayes, motion carried. Motion by Diehm, seconded by Williams, move to Approve Resolution 2012-131,being a resolution to reschedule the regular Council Meeting of November 12, 2012. Upon vote, all ayes, motion carried. Item E (removed from consent). Discussion on Adopt Resolution 2012-134,being a Resolution Ordering Preparation of a Report for the Zone 7 Street Seal Coat Program, City Project No. 1301 Nawrocki asked what area we are doing, as it was hard to follow on map. Are the seal coating assessed areas all the alleys? Hanson indicated the resolution would direct staff to do a feasibility study for a report to come back to the council on seal coating the streets in Zone 7,which is defined as streets south of 40'x' Avenue, west of Central Avenue and all streets west of University Avenue. They are all streets not alleys. On the map the solid line indicates the part that will be assessed and the dashed line indicates areas in which the city would pay for. Motion by Diehm, seconded by Williams to waive the reading of Resolution 2012-134,being ample copies made available to the public. Upon vote, all ayes, motion carried. Motion by Diehm, seconded by Williams, move to adopt Resolution 2012-134, being a Resolution ordering preparation of a report for the Zone 7 Street Seal Coat Program, City Project No. 1301. Upon vote, all ayes, motion carried. Item F (removed from consent). Discussion on Adopt Resolution 2012-135 Being a Resolution Ordering Preparation of a Report for the Zone 3 Concrete Street Rehabilitation Program, City Project No. 1302. Nawrocki stated this was his error when he removed the item from the consent agenda as he read the map incorrectly. Motion by Diehm, seconded by Williams,to waive the reading of Resolution 2012-135, being ample copies made available to the public. Upon vote, all ayes, motion carried. Motion by Diehm, seconded by Williams, to Adopt Resolution 2012-135, being a Resolution Ordering Preparation of a Report for the Zone 3 Concrete Street Rehabilitation Program, City Project No. 1302. Upon vote, all ayes, motion carried. Item G(removed from consent) Discussion on Approval of the attached list of rental housing licenses. Nawrocki stated he was ok with this one. Motion by Diehm, seconded by Williams, to waive the reading of Approval of the attached list 7 City Council Agenda Monday,October 22,2012 Page 5 of 14 of rental housing licenses as there are ample copies available to the public. Upon vote, all ayes, motion carried. Motion by Diehm, seconded by Williams, Approval of the attached list of rental housing licenses. Upon vote, all ayes, motion carried. Item J(removed from consent)Discussion on Adopt Resolution 2012-136,being a resolution establishing limited clean up and property damage protection for sewer back-ups and water main breaks for water and sewer customers. Nawrocki asked for a little more information for the public as to what we are proposing. Hanson stated the city has additional coverage for sewer back up claims under their no fault insurance coverage. The League added language in there about two years ago in regards to, "If there is damage caused by water main breaks". This resolution basically is for the same coverage if damage is caused by a public or city water main break. Nawrocki asked if this was a new feature. Kloiber stated that yes this is the same as it was two years ago,but the attorneys for the Leagues insurance trust decided that each policy owners needed to go through language change. Motion by Diehm, seconded by Williams,to waive the reading of Resolution 2012-136,being ample copies available to the public. Upon vote, all ayes, motion carried. Motion by Diehm, seconded by Williams Move to adopt Resolution 2012-136,being a resolution establishing limited cleanup and property damage protection for sewer back-ups and water main breaks for water and sewer customers. Upon vote, all ayes, motion carried. 6. PUBLIC HEARINGS A. Adopt Resolutions 2012-132, 939-4142-1/2 Avenue NE, and 2012-133, 1312 44th Avenue NE being declarations of nuisance and abatement of violations within the City of Columbia Heights. Chief Gorman stated 939-4142 '/z Avenue NE is a foreclosed property and has issued with the deck falling off. He has been in contact with the bank and they plan on working with them to resolve. Gorman stated the second property has a damaged retaining wall and the city is working with the property owner. Motion by Williams, seconded by Diehm, move to close the public hearing and to waive the reading of Resolution Numbers 2012-132 and 133,there being ample copies available to the public. Upon Vote, all ayes, motion carried. Motion by Williams, seconded by Diehm, to move to adopt Resolution Numbers 2012-132 and 133,being resolutions of the City Council of the City of Columbia Heights declaring the properties listed a nuisance and approving the abatement of violations from the properties 8 City Council Agenda Monday,October 22,2012 Page 6 of 14 pursuant to City Code section 8.206. Upon vote, all ayes, motion carried. Other Ordinances and Resolutions A. Bid Considerations -none B. New Business and Reports Leonhardt stated the Public Accuracy Test for the November 6, 2012 General Election will be run on Thursday, October 25, 2012 at 10:00 A.M. at Columbia Heights City Hall,in the Election area,to ascertain that the equipment will correctly count the votes cast for all offices. Nawrocki asked for some more information on the smoke testing that is being done in the city. Hanson stated that the city is conducting smoke testing on sanitary sewer system for diagnostics of the sewer system and cross connections for illegal connections or breaks. At a connected property the smoke comes out the smoke stack and if not you will see it come out different areas. The area that we are doing is Collection District 2. The city has three different areas and this district is between Central and University. The process is expected to be completed this week, weather permitting. Nawrocki asked if the city informed residents of what to do if there is a problem. Hanson indicated that they sent out to every resident in this area both information on the testing and what to do if they see smoke. Nawrocki stated there has been someone going around in the city and putting a plastic bag with a vial in it and asking the residents to fill it water and put back on their door. The card does not indicate who it was doing the testing. Hansen stated the information being hung on the doors is not part of anything that the city does and is probably a private company trying to get business in the area Fehst stated that John Murzyn, Public Works Supervisor, filled one of the vials and cards out and put it on the door. Someone did pick it up,but Murzyn did not see who it was so the city has asked the police to check into it. Nawrocki indicated his disappointment in the draft newsletter regarding the budget. It also states that it is available on line,but does not say a copy of it is available at the library for people to view. Fehst stated he will make sure that the information is added in the newsletter that a copy of the budget is available to the public at the library. 8. ADMINISTRATIVE REPORTS Report of the City Manager Fehst stated he attended a demo of a new vactor that is available with a couple of extra features. This piece of equipment is used for removing water from sanitary sewers and manholes. The extra feature with this one is that it is able to dig a small hole with hose. The current equipment 9 City Council Agenda Monday,October 22,2012 Page 7 of 14 is over 20 years old and there is money in the budget next year to have it replaced. Fehst reminded council that in addition to what we have done with the police department, there are other departments within the city that continue to do things that are in line with the council's objectives and goals. The city did seek and receive the staff endorsement from the MN Housing Agency for GAP financing. The Metro council presents it next week. Fehst went over the information on the Grand opening of Mississippi Water Shed opening and the opening of Lowry Bridge. Report of the City Attorney—nothing at this time. 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. ADJOURNMENT Peterson informed the council and public that Friday night there is a fund raiser for Donny Lockenburg at Murzyn Hall with a band, dinner and silent auction. Peterson will be kicking off the Holiday season with the Taste of Heights,November 16, 2012 with music, food and dancing. Peterson also wanted to thank Jeff, Bobby and Steve's for their donation to the Sister Cities fund raiser. Meeting adjourned at 7:44 PM Tori Leonhardt, City Clerk/Council Secretary RESOLUTION NO. 2012-131 BEING A RESOLUTION RESCHEDULING THE CITY OF COLUMBIA HEIGHTS REGULAR CITY COUNCIL MEETING OF MONDAY, NOVEMBER 12,2012 WHEREAS: The City of Columbia Heights offices are closed on Monday,November 12, 2012 in observance of Veterans Day, and; 10 City Council Agenda Monday,October 22,2012 Page 8 of 14 WHEREAS: The City Council has agreed to reschedule the regular Council meeting to Tuesday, November 13, 2012 beginning at 7:00 PM in the City Council Chambers; NOW,THEREFORE,BE IT RESOLVED,that all interested parties be advised of this change. Passed this 22h day of October 2012 Offered by: Diehm Second by: Williams Roll call: All Ayes; motion carried Mayor Gary L. Peterson Attest: Tori Leonhardt, City Clerk/Council Secretary 4. RESOLUTION 2012-134 BEING A RESOLUTION ORDERING THE PREPARATION OF A REPORT FOR THE ZONE 7 STREET SEAL COAT PROGRAM CITY PROJECT NO. 1301 WHEREAS,the City Council of Columbia Heights is proposing to rehabilitate local streets in Zone 7 that have not been rehabilitated under the street program, and WHEREAS,the City Council intends to assess the benefitted property for all or a portion of the cost of the improvement,pursuant to Minnesota Statutes, Section 429.011 to 429.111 (Laws 1953, Chapter 398, as amended), and Section 103B.201 to 103B.251, as follows: 1301 ZONE 7 SEAL COAT PROGRAM 11 City Council Agenda Monday,October 22,2012 Page 9 of 14 NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA that the proposed improvements be referred to Mr. Kevin Hansen, City Engineer, for study and that he is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvements are necessary, cost effective, and feasible and as to whether it should best be made as proposed or in connection with some other improvement,the estimated cost of the improvement as recommended and a description of the methodology used to calculate individual assessments for affected parcels. Passed this 22nd day of October,2012. Offered by: Diehm CITY OF COLUMBIA HEIGHTS Seconded by: Williams Roll Call: all ayes; motion carried Mayor Gary L. Peterson Tori Leonhardt, City Clerk/Council Secretary 5. RESOLUTION 2012-135 BEING A RESOLUTION ORDERING PREPARATION OF A REPORT FOR THE ZONE 3 CONCRETE STREET REHABILITATION PROGRAM CITY PROJECT NO. 1302 WHEREAS,the City Council of Columbia Heights is proposing to rehabilitate local streets in Zone 3 that have not been rehabilitated under the street program. WHEREAS,the City Council intends to assess the benefitted property for all or a portion of the cost of the improvement,pursuant to Minnesota Statutes, Section 429.011 to 429.111 (Laws 1953, Chapter 398, as amended), and Section 103B.201 to 103B.251, as follows: 1302 ZONE 3 STREET REHABILITATION PROGRAM NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS,MINNESOTA that the proposed improvements be referred to Mr. Kevin Hansen, City Engineer, for study and that he is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvements are necessary, cost effective, and feasible and as to whether it should best be made as proposed or in connection with some other improvement,the estimated cost of the improvement as recommended and a description of the methodology used to calculate individual assessments for affected parcels. 12 City Council Agenda Monday,October 22,2012 Page 10 of 14 Passed this 22"d day of October, 2012 Offered by: Diehm CITY OF COLUMBIA HEIGHTS Seconded by: Williams Roll Call: All ayes; motion carried Mayor Gary L. Peterson Tori Leonhardt, City Clerk/Council Secretary RESOLUTION NO. 2012-136 ESTABLISH LIMITED CLEAN UP AND PROPERTY DAMAGE PROTECTION FOR SEWER BACK-UPS AND WATER MAIN BREAKS FOR WATER AND SEWER CUSTOMERS OF THE CITY OF COLUMBIA HEIGHTS WHEREAS, the City of Columbia Heights provides water and sanitary sewer services to property within its jurisdiction; and WHEREAS,water main breaks may cause water to enter into property causing damage, and WHEREAS,blockages or other conditions in the City of Columbia Heights' sanitary sewer lines may cause the back-up of sewage into properties that are connected to the City of Columbia Heights' sanitary lines; and WHEREAS, water main breaks and sewer back-ups pose a public health and safety concern; and WHEREAS, it is often difficult to determine the exact cause and responsibility for water main breaks and sanitary sewer back-ups; and WHEREAS, the City Council of the City of Columbia Heights desires to encourage the expeditious clean-up of properties that have encountered damage from water main breaks and sewer back-ups; and WHEREAS, the City Council of the City of Columbia Heights desires to minimize the potential of expensive lawsuits arising out of water main breaks and sanitary sewer back-up claims; and 13 City Council Agenda Monday,October 22,2012 Page 11 of 14 WHEREAS, the City of Columbia Heights is a member of the League of Minnesota Cities Insurance Trust(LMCIT); and WHEREAS,LMCIT has offered the City of Columbia Heights limited"no fault" sewer coverage and water main break coverage that will reimburse users of the water and sewer system for certain clean-up costs and property damage regardless of whether the City of Columbia Heights is at fault. NOW THEREFORE, BE IT RESOLVED, as follows: The City of Columbia Heights, as part of the contract for providing water and sewer services to the customers of the City of Columbia Heights, and in consideration of the payment of water and sewer bills, agrees to reimburse water and sanitary sewer customers for up to $10,000 of clean-up costs and property damages caused by a water main break or sanitary sewer back-up,regardless of whether the City of Columbia Heights is negligent or otherwise legally liable for damages, subject to the following conditions: I. Sanitary Sewer Back-Ups. For Sanitary sewer back-ups: A. The back-up must have resulted from a condition in the City of Columbia Heights' sanitary sewer system or lines, and not from a condition in a private line. B. The back-up must not have been caused by catastrophic weather or other events for which Federal Emergency Management Assistance is available. C. The back-up must not have been caused by an interruption in electric power to the City of Columbia Heights' sewer system or to any City of Columbia Heights lift station, which continues for more than 72 hours. D. The back-up must not have been caused by rainfall or precipitation that would constitute a 100-year storm as determined by the National Weather Service. E. Neither the City of Columbia Heights nor LMCIT will reimburse any costs which have been or are eligible to be covered under a property owner's own homeowners' or other property insurance, or which would be eligible to be reimbursed under a National Flood Insurance Protection(NFIP) policy, whether or not the property owner actually has NFIP Coverage. F. The maximum amount that the City of Columbia Heights or LMCIT will reimburse is $10,000. per building,per year. In this regard, a structure or group of structures served by a single connection to the City of Columbia Heights' sewer system is considered a single building. II. Water Main Breaks. For water main breaks: A. LMCIT will pay for claims presented by the City of Columbia Heights for water main break damage to property of others which was not caused by the City of Columbia Heights' negligence. B. Neither the City of Columbia Heights nor LMCIT will pay for damages or expenses for which the property owner has been or is eligible to be reimbursed by any homeowners' or other property insurance. C. The maximum amount that the City of Columbia Heights or LMCIT will reimburse is $10,000. to any claimant,regardless of the number of occurrences or the number of properties affected. D. Neither the City of Columbia Heights nor LMCIT will pay more than$250,000 for water main break damages resulting from any single occurrence. All water main break damage which occurs during any period of 72 consecutive hours is deemed to result from a single occurrence. If the total water main break damage for all claimants in a single occurrence exceeds $250,000, the reimbursement to each claimant will be calculated as follows: 1. A preliminary reimbursement figure is established for each claimant, equal to the lesser of the claimant's actual damages or$10,000. 14 City Council Agenda Monday,October 22,2012 Page 12 of 14 2. The sum of the preliminary reimbursement figures for all claimants will be calculated. 3. Each claimant will be paid a percentage of his or her preliminary reimbursement figure, equal to the percentage calculated by dividing $250,000 by the sum of all claimants' preliminary reimbursement figures. IN WITNESS WHEREOF, the City of Columbia Heights, by action of its City Council, caused this Resolution to be approved on October 22,2012. Passed this 22nd day of October, 2012 Offered by: Diehm Seconded by: Williams Roll Call: All Ayes, motion carried Mayor Gary Peterson Tori Leonhardt, City Clerk/Council Secretary RESOLUTION 2012-132 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Wells Fargo NA (Hereinafter"Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 939-94142-1/2 Avenue NE, Columbia Heights,Minnesota. And whereas,pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via regular mail to the owner of record on September 18, 2012. 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 August 16, 2012 an inspection was conducted on the property listed above. Inspectors found violations. A compliance order was sent via regular mail to the owner at the address. 15 City Council Agenda Monday,October 22,2012 Page 13 of 14 2. That on September 18, 2012 inspectors reinspected the property listed above. Inspectors noted that violations remained uncorrected. A compliance order and statement of cause was mailed via regular mail to the owner listed in the property records. 3. That on October 12, 2012 inspectors reinspected the property and found that violations remained uncorrected. 4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s)were found to exist, to wit: A. Shall repair/replace decks in back of building 5. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 939-4142-1/2 Avenue NE is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 939-4142-1/2 Avenue NE constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. Passed this 22nd day of October, 2012 Offered by: Williams Second by: Diehm Roll Call: All ayes; motion carried Mayor Gary L. Peterson Attest: Tori Leonhardt, City Clerk/Council Secretary 16 COLUMBIA HEIGHTS -CITY COUNCIL LETTER Meeting of: November 13, 2012 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY MANAGERS NO: City Clerk APPROVAL ITEM: Canvass Municipal General BY: Tori Leonhardt BY: Ax_ Election Returns DATE: 11/13/12 DATE: NO: On November 6, 2012 the City held an election to vote on the Mayoral candidate and two Council Member candidates for the 2012 General election. Attached are the results of the general election, the resolution canvassing said election and the abstract of votes cast in the precincts of the City of Columbia Heights. In accordance to Minnesota Statue § 204C.36, a recount has been requested by Catherine Vesley and must be provided without cost to her,pursuant to state law, M.R. 8235.0300. The City Clerk, Tori Leonhardt, along with Cindy Reichert, Manager of Elections for Anoka County, will be conducting a recount of the General Municipal Election for the City Council Office and will be counting up to eight precincts beginning on November 15,2012 at 10:00 AM at the Anoka County Elections and Voter Registration Office, Room 130, 325 E. Main Street,Anoka, MN 55303. During this process,Vesley can choose which three precincts she would like to start the recount on. If there is no change in count after the three precincts have been recounted, Vesley can choose to continue or to stop the recount. If there are any changes in the count after the three precincts are recounted,the remaining five precincts have to be counted. This recount process is open to the public. RECOMMENDED MOTION: Move to waive the reading of Resolution No. 2012-141,there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2012-141, being a Resolution canvassing municipal general election returns and approve the signing of the Abstract. Attachments: Resolution 2012-141 Summary Abstract of Votes Cast COUNCIL ACTION: 18 RESOLUTION NO.2012-141 CANVASSING MUNICIPAL PRIMARY ELECTION RETURNS WHEREAS, the City of Columbia Heights, did on the 6th day of November 2012, conduct and hold a General Municipal Election for the purpose of voting on candidates for two offices of Council Member; and WHEREAS,the City of Columbia Heights, did on the 6th day of November 2012, conduct and hold a General Municipal Election for the purpose of voting on a candidate for one office of Mayor; and WHEREAS, the City Council of the City of Columbia Heights, at a meeting of said Council/Canvass Board, held on the 13th day of November 2012 did canvass the returns and results of said General Municipal Election; and WHEREAS, the following results were determined by said canvass of said General Municipal Election, to wit: TOTAL BALLOTS CAST IN ELECTION: Valid Votes Cast for One 2-Year Mayoral Seat Gary L. Peterson 5349 Bob Odden 2609 Valid Votes Cast for Two 4-Year Council Seats Bobby Williams 3930 Bruce Nawrocki 3401 Stanley Hoium 2725 Catherine Vesley 3388 NOW, THEREFORE,BE IT HEREBY RESOLVED by the City Council of the City of Columbia Heights, that Gary L. Peterson is hereby declared to be the elected candidate for the Mayoral Seat and Bobby Williams, and Bruce Nawrocki are hereby declared to be the elected candidates for the two four-year Council Seats effective January 1, 2013. Passed this 13th day of November 2012 Offered by: Seconded by: Roll Call: Mayor Gary L. 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'0 C O S "O '2 'O 'd 'O 'o 'O > E Y CV 9 L d 4 L Q O f6 C O O) D) D) O7 0 L O C C C C C C C •C a N U N N N N N N w N (Cp O N N N m m m m (6 U L > C C C C > > f6 O L N U U U U U U U N N w m O O O O O O O N V t6 N N N N N N N 0 a) zn m CL N O N O a) L E a) O Z T 6 a cn w c o o c `O O C m L C o "F— �3 w L— �a) a� UU' T a) 4 N a)� L y O L a m N a) .�a3 a) _ E O .Cu o O 00 s0 N E U nj (D cn O O O N U T N d oU T a) C w N O U Y In O U > a) L 0 O >+ E a 7 0 a C M U T N N :E- L a) O U O OC � O O a) o L N 6 O U N T _ a O O Q) U a a) C a3= U (6 o co a W o m � E U L C C > o m E O w 7 N O O `� m c6 w (p SC COLUMBIA HEIGHTS CITY COUNCIL Meeting of:November 13, 2012 AGENDA SECTION: Consent ORIGINATING EXECUTIVE DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Resolution#2012-142 Anoka County BY: Scott Clark BY: Levy DATE: November 7, 2012 BACKGROUND: On August 6,2012 staff presented an in-depth EDA letter to the Commissioners,which included historical documents,regarding the subject issue. Based on the rules of engagement with Anoka County, if there is no formal action to deny the next five-year funding cycle,then the levy is automatically continued.If the EDA agrees to continue, staff recommends that the City Council affirm the same through a Council resolution. At the last meeting it was asked as to how we can use these funds.Within the most general perspective,any activity that the City's EDA or HRA can legally enter into by means of State law,is an eligible activity. This means that any bonafide economic development program,marketing,housing programs,redevelopment activities can be funded.The funds cannot be used for general governmental expenses and salaries. The only caveat is that the Anoka County HRA,which oversees these activities,must agree to the same that these are "authorized"activities. In other words,their purview is not policy but eligibility. More specifically,we could use these funds to expand into programs that we do not have such as a business retention loan(this was an activity that CDBG funds were applied for and not approved in 2012),the City could look at a different rehab loan program which could include more residents,the EDA could buy and lease some of the small existing commercial buildings for specific uses,the money could be saved towards a major redevelopment land purchase,some cities have moved towards having the EDA fund small business consultants for advice,etc. Staff is not recommending any of these programs at this time,but the list is to gain a flavor of activities that the City could expand into and have a resource to match the expenditure.From an economic development perspective,this city is going through a major shift,moving from a past industrial/service base to a pure service based economy. A significant amount of new businesses are first time start-ups,and time and energy should be spent on how we ensure their success and equally,to identify other opportunities that the market is not presently recognizing(such as the restaurant/art/entertainment success of northeast Minneapolis).Lastly, as stated before,these dollars should be viewed in terms of both the now and the future. This levy provides another mechanism to build some additional sources of revenue for future needs as the challenges of an aging community will guarantee that additional resources will be necessary to bolster residential and/or commercial neighborhoods. Follow-up from the November 6,2012 EDA Meeting-- The EDA approved this item on a vote of 5 to 2 and the draft minutes of the meeting are attached. The key discussion was the currently imposed 15% administrative fee. Anoka County staff stated that the City Council needs to formally request a change within the Resolution as a starting point for discussions with the Anoka County HRA Board. As such, the following language is incorporated into Resolution-2012-142: BE IT FURTHER RESOLVED that since the subject levy funds are transmitted to the City,through the Anoka County Housing and Redevelopment Authority as a simple pass through,the City Council formally requests that the annual administrative fee be reduced from 15%to 10%to more accurately reflect the costs associated with this transfer. 29 RECOMMENDATION: Staff recommends continuation of the Anoka County Levy for an additional five years. RECOMMENDED MOTION: Motion: Move to waive the reading of Resolution 2012-142, there being ample copies available to the public Motion:Move to Approve Resolution 2012-142"Resolution of the City of Columbia Heights to Participate in the Anoka County Housing and Redevelopment Authority Economic Development Activities for Fiscal Years 2013 to 2017. Attachments: Resolution 2012-142,Draft November 6,2012 EDA minutes EDA ACTION: 30 CITY OF COLUMBIA HEIGHTS RESOLUTION 2012-142 RESOLUTION OF THE CITY OF COLUMBIA HEIGHTS TO PARTICIPATE IN THE ANOKA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY ECONOMIC DEVELOPMENT ACTIVITIES FOR FISCAL YEARS 2013 to 2017 WHEREAS, the City of Columbia Heights is an Anoka County municipality, and such is a rapidly growing and important segment of the Twin Cities Metropolitan Region, made up of rich variety of vital, desirable communities; and WHEREAS, the City of Columbia Heights Council members believe that the residents of Columbia Heights would realize many benefits from expansion of the Anoka County tax base, including but not limited to; the creation of local job opportunities, redeveloping certain sites within the City, as well as maintaining and improving the City's housing stock, wider sharing of tax burden, and access to enhanced infrastructure, services, and retail and business activities, and, WHEREAS, in order to expand the local tax base, the Anoka County Board of Commissioners has indicated an interest in fostering a regional approach to economic development in Anoka County, and, WHEREAS, in 2007 a statutorily formed citizens exploratory committee recommended to the Board of Commissioners that the Anoka County Housing and Redevelopment Authority be granted the powers of an economic development authority, and WHEREAS, on June 12, 2007, the Anoka County Board of Commissioners, after fulfilling the statutory requirements, did authorize their Housing and Redevelopment Authority to exercise the powers of an economic development authority, and, WHEREAS, MN Stat. 469.1082 requires that a municipality shall, declare its willingness, by resolution, to join the county in its economic development activities, and, WHEREAS, the City Council approved Resolution #2007-156 for the initial five year cycle, and WHEREAS, the City's Economic Development Authority made a recommendation to continue this program for an additional five years based on a vote of 5 to 2, and NOW, THEREFORE BE IT RESOLVED, that the City of Columbia Heights does hereby declare its support of Anoka County and its countywide economic development objectives and activities, and, BE IT FURTHER RESOLVED that the City of Columbia Heights does hereby elect to participate in Anoka County Housing and Redevelopment Authority economic development activities, and, BE IT FURTHER RESOLVED that the City of Columbia Heights does hereby elect to participate in the Anoka County Housing and Redevelopment Authority economic development activities to request funds to support the City's redevelopment and housing maintenance and improvement goals for fiscal years 2013 through 2017, and, 31 BE IT FURTHER RESOLVED that since the subject levy funds are transmitted to the City, through the Anoka County Housing and Redevelopment Authority as a simple pass through, the City Council formally requests that the annual administrative fee be reduced from 15% to 10% to more accurately reflect the costs associated with this transfer. BE IT FURTHER RESOLVED this resolution and attachments are to be made a part of the permanent records of the City of Columbia Heights. Passed this_day of , 2012 MOTION BY: SECONDED BY: AYES: NAYS: Mayor- Gary L. Peterson Attest by: Tori Leonhardt, City Clerk/Council Secretary 32 EDA Minutes Page 9 November 5,2012 7. Anoka County Tax Levy Clark reminded members that on August 6,2012 staff presented an in-depth EDA letter to the Commissioners,which included historical documents,regarding the subject issue.Based on the rules of engagement with Anoka County,if there is no formal action to deny the next five-year funding cycle,then the levy is automatically continued.If the EDA agrees to continue,staff recommends that the City Council affirm the same through a Council resolution. At the last meeting it was asked as to how we can use these funds.Within the most general perspective, any activity that the City's EDA or HRA can legally enter into by means of State Law,is an eligible activity. This means that any bonafide economic development program,marketing,housing programs, redevelopment activities can be funded.The funds cannot be used for general governmental expenses and salaries. The only caveat is that the Anoka County HRA,which oversees these activities,must agree to the same that these are"authorized"activities. In other words,their purview is not policy but eligibility. More specifically,we could use these funds to expand into programs that we do not have such as a business retention loan(this was an activity that CDBG funds were applied for and not approved in 2012),the City could look at a different rehab loan program which could include more residents,the EDA could buy and lease some of the small existing commercial buildings for specific uses,the money could be saved towards a major redevelopment land purchase, some cities have moved towards having the EDA fund small business consultants for advice,etc.Clark is not recommending any of these programs at this time,but said the list is to gain a flavor of activities that the City could expand into and have a resource to match the expenditure. From an economic development perspective,this city is going through a major shift,moving from a past industrial/service base to a pure service based economy.A significant ainount of new businesses are first time start-ups, and time and energy should be spent on how we ensure their success and equally,to identify other opportunities that the market is not presently recognizing(such as the restaurant/art/entertainment success of northeast Minneapolis). Lastly,as stated before,these dollars should be viewed in terms of both the now and the future.This levy provides another mechanism to build some additional sources of revenue for future needs as the challenges of an aging community will guarantee that additional resources will be necessary to bolster residential and/or commercial neighborhoods. Staff recommends continuation of the Anoka County Levy for an additional five years. If the City chooses to opt out,we cannot participate in this program for five years. Questions from members: Fehst said that most of the inner ring suburbs have used past tax increment to accumulate significant funds for redevelopment projects, but Columbia Heights has not done that. He expressed his opinion that we need to establish reserves in order to purchase properties for redevelopment and this is a means to provide that funding. He agrees that the administration fee the County charges for handling these funds is too high,however as an alternative to our City Council not raising taxes to provide funding for redevelopment,we should probably continue on with this levy program. 33 EDA Minutes Page 10 November 5, 2012 Williams asked if we could do our own tax levy to provide the funds. He would like to see us receive the tax dollars directly and not have to pay an administration fee. Clark told him it is too late for this year's levy,but we could increase the levy next year,but we wouldn't be able to raise quite as much money as this Anoka County levy provides. The most we could probably raise would be $100,000/year and the Anoka County levy provides approximately$170,000/year. Fehst stated that if levy limits were imposed, it would limit the amount we could levy even more. Nawrocki stated the total amount paid by taxpayers over the last five years has been approximately $1 million and the County will keep $150,000 of that money, and we haven't used it for anything yet. Peterson stated if we proceed with the purchase of Mady's or any other similar site,this the funding we will use and it will be depleted. Clark said we began with the Anoka County Levy Program to reserve funds for the redevelopment of 37th and Central, a GMHC contract for a house on 2nd Street, and the possible redevelopment of the Mady's site. Nawrocki said the City has other unallocated funds that should be used. There was a brief discussion as to whether the funds he referred to are allocated or not. Her-ringer asked if the proceeds from the sale of Parkview Villa could be used to establish our own fund. Clark said that there has been some preliminary discussion to possibly consider those proceeds as a potential funding source for a new library, and not redevelopment. Schmitt said her biggest concern would be that Anoka County decides to withhold the funds from us when we request to use it. Clark explained they can't do that as it is collected by them on our behalf. We get the funds issued to us when we apply for payment, once we get a project to pay for that is an approved use of the funds. Fehst told members that we have a good working relationship with the County and they have provided other funding to us which helps offset the administration fee they keep for this particular program. Szurek asked if there was also a charge for the other funding we receive. Clark said the County takes an initial administrative fee prior to a given pool of dollars being set for competition, especially if it is provided by Federal dollars. Diehm asked what other communities are doing. Clark said that all the small communities within Anoka County are continuing with the program. The larger communities are doing their own tax levies for redevelopment or using other funds. Motion by Nawrocki, seconded by Schmitt to not continue with the Anoka County Levy Program. Roll Call: ayes-Schmitt, Nawrocki, Herringer Nays-Szurek, Diehm, Williams, Peterson MOTIONFAILS. 34 EDA MINUTES Page 11 November 5,2012 Diehm asked if we could participate for a period less than five years. Clark didn't think that was possible but he would research that and would also try to get the County to agree to a reduced fee of 10%rather than 15%. Schmitt would like to see us start our own redevelopment fund as Mr. Williams has suggested. Nawrocki stated there is an alternative way to put money in the fund. He suggests reducing the budget further and put the excess money in the redevelopment fund. Other members said the budget is already"cut to the bone"and there isn't any place they would recommend cutting further. Nawrocki then asked how it was determined that this is an EDA decision and not a Council decision. Clark said that five years ago when the program started it was approved by both the EDA and the City Council. It was decided to do the same thing this year. Williams said we should find a way to do this ourselves before it has to be renewed five years from now. Motion by Szurek, seconded by Schmitt, to authorize staff to submit a letter of acknowledgement to Anoka County that the City will continue with the Anoka County Economic Development Levy. Roll Call: ayes-Szurek,Diehm, Herringer, Williams, Peterson Nays-Schmitt,Nawrocki MOTIONPASSED. 35 CITY COUNCIL LETTER MEETING OF: NOVEMBER 13,2012 AGENDA SECTION: CONSENT ORIGINATING DEPT: CITY MANAGER NO: FINANCE APPROVAL ITEM:AWARD AUDIT SERVICES CONTRACT BY: JOSEPH KLOIBER BY: FOR FISCAL YEARS 2012-2014 DATE: NOVEMBER 6,2012 Background At the request of the City Council, staff recently obtained contract proposals from CPA firms for the City's annual audit. As this service has not been bid in a number of years, the Council primarily sought assurance that the City was receiving a competitive fee for the work. In the words of one council member, "I have no problem with the service, but maybe they can sharpen their pencil." The City is required to undergo an independent annual audit by several statutory, contractual and charter requirements. As a by-product of this required process, an audit firm can also be well-positioned to advise the City on many significant issues at little or no additional cost. For this reason, it is valuable for the City to limit its consideration of audit firms to those that have sufficient experience with comparable municipalities to effectively provide such advice, as well as to conduct the audit efficiently. Staff prepared a 12 page request for proposals (RFP), detailing the scope of work, the City's financial systems and staffing, required scheduling, audit firm qualifications, and evaluation criteria. A copy of that RFP is attached. The RFP was distributed to CPA firms that met two criteria: 1) Firms with participation in the MN Government Finance Officers Association. This association's membership consists of almost all MN cities with populations over 5,000;plus various professional firms that seek to serve those cities. 2) Firms with participation in the Government Audit Quality Center of the American Institute of CPA's (AICPA). The AICPA is the national organization that issues most auditing standards. Whereas the GASB decides what must be in the CAFR,the AICPA decides how auditors will test the CAFR. Participation in this particular group within the AICPA is a clear commitment by a firm to the specialized area of governmental auditing. Staff identified nine firms that met these two criteria. The responses are summarized below. The detailed proposal from each firm is available for review in the finance department. 3 year Average Firm Office Contract Annual Fee 1 Eikill Schilling Duluth 94,875 31,625 2 HLB Tautges Redpath White Bear Lake 105,000 35,000 3 Malloy Montigue Karnoswki Minneapolis 105,800 35,267 4 Abdo Eick Meyers Edina 106,475 35,492 5 CliftonLarsonAllen Minneapolis 109,493 36,498 6 Kern DeWenter Viere Bloomington 110,375 36,792 7 Schlenner Wenner St Cloud 117,885 39,295 8 Baker Tilly Minneapolis Declined N/A 9 Conway Deuth Schiniesing Wilmar No response N/A 36 MEETING OF NOVEMBER 13, 2012 AUDIT SERVICES CONTRACT FOR FISCAL YEARS 2012-2014—page 2 Analysis The five firms listed as 2 through 6 above conduct the substantial majority of the independent audits of Minnesota governmental units,particularly in the metro area. The proposals from these five firms are relatively similar in terms of the quality of staff proposed, the level of experience these firms have with comparable cities, and stated price. Staff judges that this reflects the degree to which these five firms regularly compete with each other for the same relatively fixed pool of similar clients. Observations on specific proposals are as follows: Firm 6 Kern DeWenter Viere (KDV) currently performs annual audits for the Columbia Heights paid-on-call firefighters' pension fund and for Columbia Heights School District 13. Under generally accepted auditing standards, conducting these other audits does not impair KDV's independence for auditing the City's CAFR, but the City Council should be aware of those relationships. Firm 5 CliftonLarsonAllen is a national firm with 90 offices. Staff judges that in some instances, the business model of a national firm may not be the best fit for the City of Columbia Heights. We note that the only other national firm to meet the criteria to receive the RFP was Baker Tilly (a McGladrey affiliate.) After reviewing both the RFP and the City's responses to their follow-up questions, Baker Tilly declined to submit a proposal. Firm 1 Eikill Schilling submitted the lowest bid. Their bid forecasted 28% fewer hours than our current audit firm. All other bidders were within about 5-10% of the number of hours forecasted by our current audit firm. Based on their proposal, this firm primarily serves small communities in northern Minnesota. The only two city clients mentioned in their proposal that prepare a CAFR are Cloquet(pop 12,000) and Hermantown (pop 9,000). Neither of those cities have municipal liquor stores, although some of this firm's smaller clients do. None of the clients listed for this firm participate in the Area-Wide Fiscal Disparities Agreement which provides 28% of the Columbia Heights' levy. For these reasons, staff judges that Firm 1 is not the best fit for the City of Columbia Heights. We also note that this firm does not appear to currently participate in the MN Government Finance Officers Association. They were included in the RFP based on past participation in that association. Firm 2 HLB Tautges Redpath is the City's current auditor and submitted the second lowest bid. There are two inherent advantages to contracting with a current auditor,regardless of whom that auditor might be. First, there are significant one-time conversion costs for the City to change auditors. Staff estimates a minimum of 80 city staff hours would be required to format and transition various documentation and knowledge from any one firm's system to another in the first year. Second, no bidder knows more accurately what they are committing to than a current auditor. If professional service relationship is not a good deal for both parties, it won't be a good deal for either party. So, despite the stated contract term of"an all-inclusive not-to-exceed maximum price", if a new auditor changes their mind about how much they want to do the work, we have little alternative but to muddle through an awkward and difficult situation for one year, and then incur the 80 staff hour transition costs again the next year to change auditors yet another time. Conversely, when continuing with the same audit firm for several years, there is a risk that the firm may become complacent and thereby fail to notice technical issues that should be considered in the audit. Some entities will periodically change auditors for this reason. The auditing profession has determined that this approach of"change for the sake of change" generally does not yield better quality audits. Oversights and omissions are actually more likely to occur from changing to a firm that did not audit the client's prior year. 37 MEETING OF NOVEMBER 13,2012 AUDIT SERVICES CONTRACT FOR FISCAL YEARS 2012-2014—page 3 Generally, a better approach is for the ongoing audit firm to periodically rotate some new personnel into key roles on the audit team. The proposal from Firm 2 HLB Tautges Redpath uses this approach. They propose to newly assign Jeffrey Wilson, a senior manager, to direct the day-to-day audit work, while retaining Dave Mol as the firm's partner on the audit. Jeffrey Wilson currently manages the City of Fridley and City of Champlin audits for the firm. Recommendation Based on the above analysis, staff recommends that the City Council adopt the following motion: RECOMMENDED MOTION: Move to award the City's audit service contract to HLB Tautges Redpath, Ltd. for fiscal years 2012-2014, and to authorize the Mayor and City Manager to enter into a contract for same. COUNCIL ACTION: CouncilLetter 2012 RFPauditservices.docx Attachment 38 Columbia Heights nformation Systems Financial Reporting C It o f IAccounts Payable Utility Billing Finance Department Payroll (0 590 40th Avenue N.E. Columbia Heights,MN 55421-3878 Office(763)706-3600 TDD(763)706-3692 Fax(763)706-3637 REQUEST FOR PROPOSALS FOR AUDITING AND ANCILLARY SERVICES Fiscal Years Ending December 31;2012, 2013 and 2014 I. Introduction The City of Columbia Heights (the City) is requesting proposals from qualified firms of certified public accountants to audit its financial statements for fiscal years ending December 31; 2012, 2013, and 2014, and to also provide certain ancillary services described herein. The audits are to be performed in accordance with auditing standards generally accepted in the United States of America, the standards applicable for financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States, the provisions of the Minnesota Legal Compliance Audit Guide; and (when applicable) the US Office of Management and Budget (OMB) Circular A-133 Audits of States, Local Governments, and Non-Profit Organizations. The City presents single year financial statements with only summarized prior year information for comparison purposes. The City will not reimburse firms for any expenses incurred in preparing proposals in response to this request. To be considered, proposals must be received by 4:30 p.m. October 31, 2012, at: City of Columbia Heights Attn: Finance Director 590 401h Ave NE of Columbia Heights Columbia Heights MN 55421 The City reserves the right to reject any or all proposals submitted. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the firm selected. The City reserves the right to request additional information or clarifications from proposers, or to allow corrections of errors or omissions. The City reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. The City contact for audit firm inquiries regarding this request for proposal is Joseph Kloiber, Finance Director, joseph.kloiber @ci.columbia-heights.mn.us (763)706-3627. The City seeks a three year contract with an option for either party to terminate the contract after the first year. This approach is intended to strike a balance between the significant value to the City of retaining the same firm for multiple years, and the rare but potential case of the audit firm and the City being unable to establish a mutually beneficial professional services relationship. The City is not aware of any problems with the relationship it has with its most recent audit firm, and the City is satisfied with the quality of services it has received from that firm. Given that the City has used that firm for a number of years,the City's Council has initiated this proposal process to assure itself and the public that it is obtaining the appropriate market price for audit services. 1 39 II.Scope of Work A. Reports Required Following the audit of the financial statements in accordance with the standards listed above, the auditor shall issue the following reports to be included in the City's comprehensive annual financial report (CAFR): 1. A report on the fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States. 2. A report, or a paragraph in the report above, on the required supplementary information (RSI), stating that certain limited procedures have been applied to the RSI in accordance with auditing standards generally accepted in the United States. No opinion or provision of assurance is required in regard to the RSI. 3. An "in-relation-to" report, or an "in-relation-to" paragraph in the report above, on the combining and individual nonmajor fund statements and supplementary financial information contained in the CAFR. No opinion or provision of assurance is required in regard to the introductory or statistical sections of the CAFR. 4. A report on compliance with the Minnesota legal compliance audit guide for political subdivisions. 5. A report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with government auditing standards. 6. A report (if applicable) on compliance with requirements applicable to each major program and internal control over compliance in accordance with OMB Circular A-133. 7. An "in-relation-to" report (if applicable)on the schedule of expenditures of federal awards. 8. An "in-relation-to" report on the Financial Data Schedule required by the U.S. Department of Housing and Urban Development. In the required report(s) on internal control and compliance within the CAFR, the auditor shall communicate any significant deficiencies found during the audit. A separate management letter, not included in the CAFR, shall be issued to review and comment on the City's significant accounting policies, activities, and other matters. Auditors shall assure themselves that the City's Council is informed of each of the following, and are encouraged to do so via the management letter: 1. The auditor's responsibility under generally accepted auditing standards. 2. Significant accounting policies. 3. Management judgments and accounting estimates. 4. Significant audit adjustments. 5. Other information in documents containing audited financial statements. 6. Disagreements with management. 7. Management consultation with other accountants. 8. Major issues discussed with management prior to retention. 9. Difficulties encountered in performing the audit. B. Financial Statement Production The City's CAFR is consistently 200-250 pages long. The preferred method of financial statement production is to populate templates established by the audit firm, in order to have a uniform proven style for headers, footers and other graphic elements of the CAFR. The report covers and plastic comb binding the City provides for its CAFR are designed to coordinate with the City's separate annual budget document. Approximately 30 hardcopy CAFRs and management letters are required each year. The City is willing to print and assemble these hardcopies, but generally has found it logistically more practical to have its audit firm print and assemble these in conjunction with the firm's final procedures. 240 For the basic fund financial statements, the budgetary comparison schedule within RSI, the combining fund statements,the individual fund statements, and the subcombining fund statements,the audit firm will need financial statement software that will group and map the accounts from the City's adjusted trial balance to financial statement templates. The City will provide its adjusted trial balance (in Microsoft excel or plain text format) and preliminary schedules detailing which accounts are grouped to yield each line item within the financial statement templates. Although this software will be maintained by the firm and reside within the firm's information system, the City will have responsibility for initiating and approving changes to the templates to reflect necessary line item additions/deletions or other presentation changes. Upon completion of the drafting process, the firm's financial statement software must generate final detail account grouping schedules which the City will approve and retain. For the remaining sections of the CAFR, the City will populate the firm's templates using Microsoft word or excel as appropriate. The City will compose the notes to its financial statements, but it is anticipated that the City will request example language from the firm to assist with composing new notes as necessary and that the firm will provide this example language if available. C. Special Conditions 1. The City will submit its comprehensive annual financial report to the Government Finance Officers Association (GFOA) of the United States and Canada for review under the Certificate of Achievement for Excellence in Financial Reporting program. It is anticipated that the City will not need the audit firm's assistance to meet the requirements of that program, but that the firm will provide assistance if requested. 2. The City prepares and submits a web-based version of the Financial Data Schedule required by the U.S. Department of Housing and Urban Development (HUD). This submission requires the audit firm to certify within the web-based HUD system that the City's submission is (or is not) consistent with that of the version of the Financial Data Schedule contained in the CAFR. As part of this engagement, the audit firm will perform the web-based certification and the firm's staff will obtain and maintain the necessary HUD user logins for the firm to do so. 3. In the event that the City is required to have an audit in accordance with OMB Circular A-133 the audit firm will provide the assistance necessary for the City to file the related web-based submission with the federal single audit clearinghouse of the U.S. Census Bureau. 4. The City, with the assistance of its financial advisors, could prepare an official statement in connection with the sale of debt securities which would contain the general purpose financial statements and the auditor's report. The auditor shall be required, if requested by the financial advisor and/or the underwriter,to issue a "consent and citation of expertise" as the auditor and any necessary"comfort letters." D. Retention and Access to Working Papers All working papers and reports must be retained, at the Auditor's expense, for a minimum of five years, unless the firm is notified in writing by the City of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to the City of Columbia Heights, the Office of the MN State Auditor, and designees of grantors/pass-through entities of the City. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. 341 III. Description of the Government A. Background Information The City of Columbia Heights comprises 3.5 square miles at the southern-most point of Anoka County, bordering on northeast Minneapolis. The 2010 census population of the City was 19,496. Initially incorporated as a village in 1898,a home-rule city charter was adopted in 1921. The City's governing body consists of a mayor and five council members, all elected at large. The mayor serves a two-year term. Council members serve staggered four-year terms. The city manager is responsible for the daily management of city business and the administration of policy as directed by the Council. Walt Fehst is the city manager and has served in this capacity since 1996. As an older, fully-developed first-ring metro suburb, the City is challenged with replacing infrastructure and housing stock, as well as with serving a population that in recent years is far more diverse than was the case for most of the City's history. A community that is relatively modest in terms of household income and property value per household, the City has historically been a significant recipient of state aid to local government. That aid however, has been dramatically reduced over the past decade. The City operates one of the few remaining municipal libraries in the state. The City operates three municipal liquor stores, which collectively generate approximately the fifth highest gross annual sales of municipal liquor operations in Minnesota. The City presents two blended component units in its CAFR: 1. Columbia Heights Economic Development Authority (EDA) 2. Columbia Heights Housing and Redevelopment Development Authority (HRA) The EDA addresses redevelopment efforts within the City, which includes several tax-increment financing districts. The HRA's sole function is administration of the Parkview Villa senior housing development. Parkview Villa consists of 100 rental units of federally-subsidized low-income housing and 50 rental units of market rate housing. The HRA is currently in negotiations with HUD to sell Parkview Villa to a prospective buyer in mid-2013. If the sale is completed,the HRA is expected to dissolve. The City's most recent general obligation bond series, received an AA rating from Standard and Poor's upon issuance in 2009, based factors which included good financial management and planning practices. In August 2012,Standard and Poor's reaffirmed this AA rating with a stable outlook. The City's CAFR has received the GFOA Certificate of Achievement award each of the past twenty years. The City's three most recent CAFRs are available at the finance department page of the City's website: www.ci.columbia-heights.mn.us/index.aspx?NID=115 Note: Due to deadline pressures, the City elected to forgo correcting certain immaterial errors in the 2011 CAFR which were the result of inadvertent clerical omissions in the final drafting process. The City is aware that U.S. GAAP exclude the presentation of unassigned fund balance in other than the City's general fund(reference 2011 CAFR pages 88 and 117.) B. Finance Staffing The City's finance department consists of the following 9.75 full-time equivalents: 1. Finance Director 2. Assistant Finance Director 3. Accounting Coordinator/Accounts Payable 4. Finance Secretary/Accounts Payable 5. Payroll Accountant 442 6. Budget Coordinator/Accounting Clerk II -Liquor 7. Utility Billing Clerk II 8. Utility Billing Clerk I/Data Entry 9. Accounting Clerk I 10. Receptionist/Cashier(PT) In mid-2011, the City's previous finance director retired after nearly thirty years of service to the City. Joseph (Joe) Kloiber was then promoted to finance director after seven years as the department's assistant director. Joe is an active status CPA in Minnesota, with a BA degree in accounting, and a combination of public accounting and exempt organization experience totaling 24 years. At that same time,Jackie Senko was hired as assistant director. Jackie served as assistant finance director for the City of West Saint Paul for three years, and previous to that held various finance staff positions with the City of West Saint Paul and the City of Saint Anthony. Jackie has a BA degree in accounting and is currently pursuing an MBA degree and CPA certification. Jackie will coordinate the specific assistance and information to be provided by City to the audit firm in the course of the engagement. In mid-2012, external candidates were hired to fill the accounting clerk I and utility clerk II positions. The latter of these was due to the incumbent being promoted to fill a retirement vacancy in another department of the City. Also in mid-2012, a receptionist/cashier from the City's recreation department transferred to the position of finance department receptionist/cashier, when that incumbent left the workforce. Other finance staff have been in the department for a varying number of years. The City's information systems department consists of an I/S director that reports to the finance director, an assistant I/S director, and an I/S technician. The technician was hired in 2011. The I/S director and assistant I/S director have been with the City for many years. C. Financial Systems The City uses a suite of financial software applications from Affiliated Computer Services, Inc. (ACS), a Xerox corporation with offices in Waite Park Minnesota and other locations. ACS has a nation-wide user base. Formerly in much wider use in Minnesota, the ACS software operates on an IBM AS400 platform and is rather antiquated by today's standards. Users primarily access the AS400 through the City's PC network using "NewVision", an ACS-affiliated interface installed on user PCs. NewVision somewhat simulates a windows environment for the user, despite ACS being an older "green screen" technology. For a limited number of functions, standard IBM client access software is installed on user PCs to access the AS400. The ACS modules used by the City include: 1. Government financial systems, including: a. General ledger b. Monthly P&L with budget-to-actual comparisons c. Cash Disbursements (for approximately 4,400 A/P checks per year) 2. Purchase order 3. Payroll (for approximately 200 total employees of all types) 4. Utility billing (for approximately 6,000 customers billed quarterly) 5. Cash register 6. Accounts receivable (limited use for miscellaneous A/R) 7. Capital Asset System The City uses Microsoft SQL Server for its special assessment database and Microsoft Access for the related user interface. The City uses Microsoft Office 2010 for most other financial record-creation purposes. Long-term record retention media is a combination of hardcopy and optical image. Laserfiche is the optical image system vendor. Minutes of the City Council, EDA and HRA meetings in Laserfiche are available through the City's website. 543 Monthly accounting records and source documents of the Parkview Villa senior housing development are prepared by the HRA's contract management company, CommonBond Inc., and are available upon request. Parkview Villa fund trial balances are consolidated into the City's financial system at yearend. As of 2011, the City reports 50 funds in its CAFR, including 13 major funds, with 2012 expected to be similar in this regard. Although the City formally adopts annual budgets for most of its funds for internal control purposes, only the general fund and six nonmajor special revenue funds are considered to have legally adopted budgets for general-purpose external reporting. The City's budgetary accounting method for governmental funds is consistent with U.S. GAAP. The City's budgetary accounting method for proprietary funds is a modified accrual basis with the addition of depreciation expense, which differs from the full accrual method used by the City for other proprietary fund purposes. This budgetary method for proprietary funds is expected to be changed beginning with approximately fiscal year 2014. The City reconciles and monitors key balance sheet accounts monthly, but prepares formal balance sheets only at fiscal yearend. For operating and debt service purposes,the City has a five-year financial plan through 2014. To varying degrees, the City has the components of a capital improvement plan in place, with the infrastructure components being the most formalized at this point. The buildings and equipment components of the plan are scheduled for significant updates and formalization in the next twelve to twenty-four months. IV.Time Period A. Schedule Desired for the 2012 Fiscal Year Audit(some limited flexibility available) 1. October 31, 2012: Audit proposal submission deadline. 2. November 14, 2012: City Council awards contract. Accepted firm notified as soon as possible. 3. Within First Two Weeks of December 2012 Audit entrance conference with finance director and assistant director. The purpose of this meeting will be to discuss any potential audit issues, the interim work to be performed; and to arrange for work space, internet access, and other needs of the auditor. This meeting will also be used to establish a work plan for the first year formatting of the fund financial statement templates described above in section II.B. 4. December 31, 2012 a. The firm provides a detailed list of all schedules, confirmations and other information to be prepared and/or made available by the City. b. The firm provides the City with blank templates in Microsoft office format for the CAFR pages not generated by the firm's fund financial statement software, such as notes to the financial statements,statements of cash flows,statistical tables, etc. 5. Within First Two Weeks of January 2013 The firm performs inventory observation/test counts. The City's liquor inventory is always material to its financial statements. It is located at three stores within the City. Store staff organize the stores during the week following the New Year's Day holiday, then typically count inventory at the largest store on one of the next two Sundays, and count at the two smaller stores on the alternate of those two Sundays The only other significant inventory in the City's financial statements is the auto parts and fuel inventory within the central garage internal service fund. The audit firm should use its judgment as to whether this inventory requires yearend observation or can be sufficiently verified by other audit procedures. Refer to 2011 CAFR page 149. 644 6. Mid-January 2013: The firm performs interim audit fieldwork. 7. March 25, 2013 a. The City finishes preparation of the introductory section of the CAFR. b. The City provides its trial balance, including substantially all adjustments other than entries for government-wide financial statement conversion, to the firm for import into the firm's fund financial statement software. 8. March 25-29, 2013 The firm provides the City with the fund financial statement templates populated with the City's trial balance data,and the related detail account grouping schedules. 9. March 30—April 21, 2013 a. The City verifies the appropriate accounting groupings are mapped to the correct line items in the draft fund financial statements. b. The City finishes preparation of supporting audit schedules. c. The City finishes government-wide financial statement conversion. d. The City updates notes to the financial statements. e. The City finishes preparation of HUD financial data schedule. 10. April 22-May 10, 2013 The firm performs substantially all yearend fieldwork. 11. May 10-19, 2013 a. The City finishes preparation of management's discussion and analysis. b. The City finishes preparation of the statements of cash flows. c. The City finishes preparation of the CAFR statistical section. 12. May 20-24, 2013 The firm provides a complete draft CAFR for the City to detail proof; including unsigned audit reports, any draft audit findings, also the final related detail account grouping schedules, and draft management letter. 13. May 24-31, 2013: The City detail proofs the complete draft CAFR and draft management letter. 14. May 31, 2013: Audit exit conference with finance director and assistant director. The purpose of this meeting will be for: a. The firm to summarize the results of field work and review significant findings. b. The City to provide a final list of proof corrections to the CAFR, the management letter, and responses to any audit findings. 15. June 1-June 15, 2013: a. The firm provides a final draft CAFR and draft management letter for the City to confirm that all proof corrections have been carried throughout. b. The City and firm authorize assembly and issuance of the CAFR, including covers and bindings. c. The City distributes the CAFR and submits the related web-based submission to the Office of the State Auditor. 745 16. June or July 2013: The firm makes a brief presentation to the City Council at regular semi-monthly council meeting, regarding the City's financial statements and the auditors' reports thereon, followed by an opportunity for the Council to ask questions. 17. July 2013: The City and the firm complete their respective portions of the web-based submission of the HUD financial data schedule. V. Proposal Specifications A. Required proposal material: 1. Title page listing the proposal subject;the firm's name;the name, address and telephone number of the contact person; and the date of the proposal. 2. Technical proposal as described in section V.B. below. 3. Executed copy of proposer warranties (appendix A of this proposal). 4. Dollar cost bid in a separate sealed envelope. B. Technical Proposal The purpose of the technical proposal is to demonstrate the qualifications, competence and capacity of the firms seeking to undertake an independent audit of the City in conformity with the requirements of this request for proposal. The technical proposal should address the points outlined in the request for proposal (excluding any pricing information which should only be included in the sealed dollar cost bid) in a straightforward, concise manner. While additional data may be presented,the following items must be included.These represent the criteria against which the proposal will be evaluated: 1. Independence a. The firm should provide an affirmative statement that it is independent of the City and its component units, as defined by auditing standards generally accepted in the U.S. and the government auditing standards issued by the Comptroller General of the United States. b. The firm should list the any professional relationships involving the City, its component units, or other entities affiliated or associated with the City or it component units,for the past five years;together with a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit. 2. Firm Qualifications and Experience a. The firm should provide an affirmative statement that the firm and all key engagement personnel hold the licenses/proper status certificates to practice in Minnesota. b. The proposer should state the size of the firm,the size of the firm's governmental audit staff, and the location of the office from which the work on this engagement is to be performed. c. Provide a copy of the firm's most recent peer review report. In addition,the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three years with state regulatory bodies or professional organizations. 846 d. Provide a brief description of the firm's recent involvement, if any,with current developments in the area of government auditing and governmental accounting through professional associations and/or regulatory bodies. e. For the firm's office that will be assigned responsibility for the audit, list the Minnesota city audit engagements performed in the last year and indicate which of these cities, if any, prepared a CAFR. For the three most comparable engagements, provide the name and telephone number of the principal client contact. 4. Partner,Supervisory and Staff Qualifications and Experience a. Identify the principal supervisory and management staff who would be assigned to the engagement. Provide information on the government auditing experience of each person. Engagement partners, managers, other supervisory staff may be changed if those personnel leave the firm, are promoted or are assigned to another office. b. To the extent practical, provide information regarding the number, qualifications and experience of the other staff to be assigned to this engagement. Indicate how the quality of staff, over the term of the engagement,will be assured. Staff at this level may be changed at the discretion of the proposer, provided that replacements have substantially the same or better qualifications or experience. 5. Key Elements of the Audit Plan Provide the following information on the firm's planned audit approach: a. Level of staff and number of hours proposed for each segment of the engagement. b. Approach to be taken to document an understanding of the City's internal control. c. Approach to be taken in determining laws and regulations that will be subject to testing. d. Expected sample sizes and the extent to which statistical sampling is to be used, including sampling for purposes of tests of compliance, if any. e. Any anticipated potential audit problems identified by the firm. C. Sealed Dollar Cost Bid The sealed dollar cost bid should contain all pricing information relative to performing the audit engagement and ancillary services as described in this request for proposal.The total all-inclusive maximum price bid is to contain all direct and indirect costs, including all out-of-pocket expenses. The sealed dollar cost bid should include the following information: 1. Name of the firm. 2. A signed statement that the person signing the proposal is entitled to represent the firm, empowered to submit the bid, and authorized to sign a contract with the City of Columbia Heights; and that the proposal is a firm and irrevocable offer with a commitment to complete the services offered within the Minnesota statutory filing deadline six months following the end of each fiscal year. 3. The total all-inclusive maximum price for the proposed audit and ancillary services for each of the fiscal years ended December 31; 2012, 2013, and 2014(state each year separately). The ancillary services include the report production and financial statement drafting services referred to in sections II.B. and IV.A. above. 4. A schedule of professional fees by staff level and expenses, presented in the format provided in the attachment (Appendix B)that supports the total all-inclusive maximum price. 947 5. The cost of any special services should be disclosed as separate components of the total all- inclusive maximum price. 6. The incremental cost to perform the audit in accordance with OMB Circular A-133 should be disclosed as a separate component of the total all-inclusive maximum price. In the event that OMB Circular A-133 audit procedures and related reports are not required in a given year,the all-inclusive maximum price will be reduced by this amount. It is unlikely that the City will expend more than$500,000 in federal awards in the fiscal year ended December 31, 2012. Expenditures of federal awards for subsequent years however,are not estimable at this time. 7. The sealed dollar cost bid should state that, if it should become necessary for City to request that the firm render additional services to either supplement the services requested in this RFP or to perform additional work as a result of specific needs,then such additional work shall be performed only if set forth in an addendum to the contract between the City and the firm, and further state that any such additional work agreed to shall be performed at the same rates set forth in the schedule of fees and expenses included in the sealed dollar cost bid. 8. The sealed dollar cost bid should state that,following completion of the services for the fiscal year 2012,the City or the firm may terminate the contract upon thirty(30) days written notice to the other party. 9. Payments under the contract will be progress payments made on the basis of hours of work completed during the course of the engagement and out-of-pocket expenses incurred in accordance with the firm's dollar cost bid proposal. VI. Proposal Evaluation Criteria The basis of proposal selection will include, but not be limited to,the following criteria: A. Mandatory Criteria 1. The audit firm is independent and authorized to practice in Minnesota. 2. The firm has no conflict of interest with regard to any other work performed by the firm for the City, its component units, or affiliated entities. 3. The firm adheres to the instructions in this request for proposal on preparing and submitting the proposal. 4. The firm has a record of quality audit work. B.Technical Qualifications Criteria 1. Expertise and Experience a. The firm's past experience and performance on comparable government engagements. b. The quality of the firm's personnel to be assigned to the engagement. c. The firm's expertise with the GFOA Certificate of Achievement in Financial Reporting. d. The firm's involvement with current developments in the area of government auditing and government finance through professional associations and committees. 2. Adequacy and Efficiency of Key Elements of the Audit Plan a. Proposed staffing plan for various segments of the engagement b. Approach to document an understanding of the City's internal control. c. Proposed sampling techniques. d. Approach to determine laws and regulations that will be subject to testing. 3. Cost 148 APPENDIX A PROPOSAL FOR AUDIT AND ANCILLARY SERVICES FOR THE CITY OF COLUMBIA HEIGHTS PROPOSER WARRANTIES A. Proposer warrants that it is willing and able to comply with State of Minnesota laws with respect to foreign (non-state of Minnesota) corporations. B. Proposer warrants that it is willing and able to obtain an errors and omissions insurance policy providing a prudent amount of coverage for the willful or negligent acts or omissions of any officers, employees or agents thereof. C. Proposer warrants that it will not delegate or subcontract its responsibilities under an agreement without the prior written permission of the City of Columbia Heights. D. Proposer warrants that all information provided in connection with this proposal is true and accurate. E. The proposer certifies that it can and will provide and make available at a minimum, all services set forth in the request for proposals. Signature of Official: Name (typed): Title: Firm: Date: 149 APPENDIX B SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR AUDIT AND ANCILLARY SERVICES FOR THE CITY OF COLUMBIA HEIGHTS Standard Quoted Hourly Hourly Hours Rates Rates Total Partners/Shareholders Managers Supervisory staff Staff Other(specify) Other(specify) Other(specify) OMB A-133 audit services Out-of-pocket expenses Transportation Meals, lodging Total all-inclusive maximum price for services for the fiscal year ended December 31,2012 Total all-inclusive maximum price for services for the fiscal year ended December 31,2013 Total all-inclusive maximum price for services for the fiscal year ended December 31,2014 150 CITY COUNCIL LETTER Meeting of November 13, 2012 AGENDA SECTION: CONSENT ORIGINATING DEPT.: CITY MANAGER NO: License Department APPROVAL ITEM: Business License Agenda BY: Shelley Hanson DATE: NO: DATE: November 6, 2012 BY: BACKGROUND/ANALYSIS Attached is the business license agenda for the November 13, 2012 Council meeting. This agenda consists of applications for Contractor licenses for 2012-2013, and the renewal of various business licenses for 2013. At the top of the license agenda you will notice a phrase stating *Signed Waiver Forth 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. RECOMMENDED MOTION: Move to approve the items as listed on the business license agenda for November 13, 2012 as presented. COUNCIL ACTION: 51 TO CITY COUNCIL November 13, 2012 *Signed Waiver Form Accompanied Application CONTRACTOR'S LICENSES -2012 BLDG *Todd Landon Inc. 183 West Sidney St, St Paul $60 *Nova-Frost Inc 7264 Dickman Trail, Inver Grove Hts $60 *Horizon Contractors Inc. 8197 Horizon Dr, Shakopee $60 *Total Air Inc. PO Box 17127, Mpls $60 *GR Danielson& Son 1551 164th Ln NE,Ham Lake $60 CONTRACTOR'S LICENSES-2013 BLDG *Randy Michaels 203 13th Ave NE, Buffalo $60 Forced Air One 6768 158th Lane NW, Ramsey $60 *Ray N Welter Htg 4637 Chicago Ave S, Mpls $60 *Home Energy Center 2415 Annapolis Ln, Plymouth $60 *Sharp Heating&AC 7221 University Ave, Fridley $60 Contact Signs Inc 1803 Victoria St, Roseville $60 FUEL DISPENSING DEVICES-2013 FIRE Lowells Auto 4457 University Ave, Col. Hts. $100 No. Tier/SA Gas 5000 Central Ave. Col. Hts. $140 University Auto 5257 University Ave, Col. Hts. $ 80 MOTOR VEHICLE SALES-2013 POLICE/ZA David's Auto 573 40th Avenue, Col. Hts. $300 CIGARETTE SALES-2013 POLICE *Family Dollar Store 4037 Central Ave, Col. Hts. $300 *No. Tier/SA Gas 5000 Central Ave, Col. Hts. $300 *Jerusalem Market 4945 Central Ave. Col. Hts. $300 *Totem Superette 4635 Central Ave. Col. Hts. $300 *Hot Market 5011 University Ave $300 SMOKE SHOPS POLICE *Top Value Tobacco 2311 37th Ave. Col. Hts $300 *Urban She-Sha 332 40th Ave. Col. Hts. $300 *Hookah Kingdom 4919-21 Central Avenue $300 52 GAMES OF SKILL POLICE American Amusements at Columbia Grill $210 Metro Coin of MN at VFW $30 Mendota Valley Amusements at VFW&Jimmys $195 OFF SALE BEER POL/F/BL/ZA *No. Tier/SA Gas 5000 Central Ave, Col. Hts. $150 LIQUOR POL/FBL/ZA *Sarnas 3939 University Ave, Col. Hts. $6,700 CLUB LIQUOR POL/F/BL/ZA *VFW Post 230 4446 Central Avenue. Col. Hts. $500 53 CITY COUNCIL LETTER Meeting of November 12, 2012 AGENDA SECTION: CONSENT ORIGINATING DEPARTMENT: CITY Fire MANAGER NO: APPROVAL ITEM: Rental Housing BY: Gary Gorman BY: Licenses 4XV NO: DATE: November 5, 2012 DATE: Approval of attached list of rental housing applications. RECOMMENDED MOTION: Move to approve the items listed for rental housing license applications for November 12, 2012 in that they have met the requirements of the Property Maintenance Code. COUNCIL ACTION: 54 COLUMBIA HEIGHT'S Print Rental Licenses to FIRE DEPARTMENT approve by CC Insp action Division 825 41st Avenue N.E.-Columbia Heights,MN 55421-Ph:763-706-8156-Fax:763-706-8151 10001 1016 GOULD AVE NE Ikeda, Rika F12200 PO Box 12039 $ 150.00 Honolulu, HI 96828 10014 5236 6TH ST NE Cambi, Fausto F12169 3515 Ulyssess Street NE $ 150.00 Minneapolis, MN 55418 10015 550 HUSET PKY NE Samatar, Mohobo F12173 1809 87th Trail N. $ 150.00 Brooklyn Park, MN 55443 10063 4721 5TH ST NE Froiland, Dane F12234 1825 158th Avenue N.W. $ 150.00 Andover, MN 55304 10085 4542 HEIGHTS DR NE Kilgore, Gina F12136 6391 Monroe Street NE $ 150.00 Fridley, MN 55432 10135 4427 MONROE ST NE Ogundipe, Adegbola F12149 7260 Hidden Hollow Ct. $ 150.00 Saint Paul, MN 55112-3836 10181-RY 332 ORENDORFF WAY NE Bowman, Alyson F12143 215 Barry Avenue S. Apt. #319 $ 150.00 Wayzata, MN 55391 10224 4909 5TH ST NE Cel Monton, LLC F12210 1845 Stinson PKWY#102 $ 150.00 Minneapolis, MN 55418 10241 3962 5TH ST NE Saykally, Jessica F12126 1543 Deleware Avenue $ 150.00 St. Petersberg, FL 33703 10299 3816 2 1/2 ST NE Fehl, John F12023 1040 Erie St Apt 205 $ 150.00 Oak Park, IL 60302-1917 10306 4422 7TH ST NE Anglin, Bobby F12114 414 66th ST SW $ 150.00 Waverly, MN 55390 11/05/2012 09:48 Page 1 55 COLUMBIA HEIGHTS Print Rental Licenses to FIRE DEPARTMENT approve by CC IAi�Ctitl!'1 QiYisiOI'1 ■ 825 41st Avenue N.E.-Columbia Heights,MN 55421-Ph:763-706-8156-Fax:763-706-8151 10360 5036 JACKSON ST NE Gongma, Passang F12068 9811 Fillmore St NE $ 150.00 Blaine, MN 55434 10383 4958 5TH ST NE Lyke, Peter F12170 5015 4th St NE $ 150.00 Columbia Heights, MN 55421 10391 1000 41 STAVE NE GSB, Properties, LLC F12215 1775 Selby Ave. #1 $ 150.00 St. Paul, MN 55104 10395 3930 JACKSON ST NE Vercacteren, Luke F12135 3716 11 th Ave. S. $ 150.00 Minneapolis, MN 55407 20128 621 51 ST AVE NE Busse, Daniel F12240 P O Box 18672 $ 150.00 Minneapolis, MN 55418 20240 1407 CIRCLE TERRACE BLVD NE Cornelius, Chris F12207 7890 Queensland Lane N. $ 150.00 Maple Grove, MN 55311 20387 3726 3RD ST NE Mounds Park Investment Partners, LLC F12060 PO Box 24717 $ 150.00 Edina, MN 55424 30019 4060 4TH ST NE Lynde Investment Company, LLP F1 1975A PO Box 16501 $248.00 Minneapolis, MN 55416 30035 228 40TH AVE NE Mikulak, Robert F12192 8241 Riverview Terrace $234.00 Fridley, MN 55432 30127 4441 UNIVERSITY AVE NE Lynde Investment Company, LLP F1 1975E PO Box 16501 $248.00 Minneapolis, MN 55416 30129 4621 UNIVERSITY AVE NE Dumore Investments, LLC F12164 PO Box 28635 $248.00 Oakdale, MN 55128 11/05/2012 09:48 Page 2 56 x, 3 1 COLUMBIA HEIGHTS Print Rental Licenses to FIRE DEPARTMENT approve by CC inspoction division 825 41 st Avenue N.E.-Columbia Heights,MN 55421-Ph:763-706-8156-Fax:763-706-8151 30180 4715 UNIVERSITY AVE NE Lynde Investment Company, LLP F1 1975H PO Box 16501 $248.00 Minneapolis, MN 55416 30182 5121 UNIVERSITY AVE NE Lynde Investment Company, LLP F119751 PO Box 16501 $248.00 Minneapolis, MN 55416 30184 5131 UNIVERSITY AVE NE Lynde Investment Company, LLP F1 1975J PO Box 16501 $248.00 Minneapolis, MN 55416 30186 5141 UNIVERSITY AVE NE Lynde Investment Company F1 1975K PO Box 16501 $211.00 Minneapolis, MN 55416 Total#of Licenses 26 11/05/2012 09:48 Page 3 57 W w * + Q * * U * k H * * C) * + p N * * U) >{ 00 a * a Ln O o * U> U> W W P'-, * * H O O o o * * p Lr)d * * U >i o Ln IEi Cal Cal U * * o ko * * z Lr) a * •K * * i� '% E-� H H * * a �i �i �A �i �i �i �4 �i �4 >i �i * * H U * 0000 * z � `i) z a ° * zzzz 0 LO �' * * U ro x * zzzz * N 0>H * * H x x * * o U * 4 K4 K, 1:� * N aI * •k \ � .0 Vi U * wwww * 0 12 k * \ N ri aaaa � a * * 1, * * * * * * . . . . w * * * * * * m . . . . . . . . . . m ri ri a) r1 O to U ••U a ri i i 11 O S >v> (D • a)P : O k O a) a) •• O a) N 4-1 a) �4 (d 4.) 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I r-I N N N N N N N Md' d' d, d'w w w w ID w 1D L- L- ww W F PQ PQ I Q E CITY COUNCIL LETTER Meetin g of November 13, 2012 AGENDA SECTION: Other Ordinances& ORIGINATING DEPT.: CITY MANAGER Resolutions Community Development APPROVAL NO: ITEM: Ordinance #1610 Amending Liquor BY: Scott Clark BY:��� � License Establishing Violation Policy DATE: November 6, 2012 Background: Over the past two years the City Council has had to act on several liquor violations. From a staff perspective, the key to administrative penalities is equitable enforcement, with the understanding that from time to time some extenuating circumstance will arise that could affect the penalty. Staff is proposing to amend the current liquor license provisions to add an administrative penalty matrix. At the current time, liquor violations for selling, on or off-sale, are handled criminally by citing the server or seller with a gross misdeamonor. The license holder is not penalized unless staff brings the holder to the City Council for a hearing. In review of other city ordinances there are three key penalty considerations 1) Should an ordinance contain an "extenuating circumstance"clause 2)What should the penalities be, and 3) How long of a period of time should elapse so previous violations are not viewed as being a"second violation."4) How are penalties administered? 1) "Extenuating Circumstances"—attached in the proposed amendment(called"Minimum Penalty") is language from the City of Roseville's Ordinance, which states the process of deviating from the administrative matrix and establishes that written findings must be made to justify the same. 2) Levels of Penalties-in review of other cities there is obviously a wide range of choices (meaning either monetary penalty and/or suspension). A significant number of communities have a large monetary fine e.g. $1,000 for the first violation with no suspension. As shown on the chart, staff recommends a$250.00 administrative fine for the first violation and increases for following violations. As stated before,the owner does not currently have any monetary penality invested when a violation occurs, and as such,there is not a nexus to the responsibility that a license holder should have. Based on Council direction, staff has also provided for License holders to become"Best Practices"licensees that shows their commitment to minimize violations, and therefore,based on their extra effort they would have less severe penalties administered. 3) Period of time for prior violations-Language needs to be contained as to when prior violations are considered in the formula of 1St violation, 2nd violation, etc. Based on the seriousness of liquor violations, staff is recommending that any violation occuring within 24 months of another violation be considered as a successive violation. 4)Administration of penalty—the proposed amendment establishes that the penalty is "automatic"once the violation occurs and that fine is paid directly to the City,without a City Council hearing. There is an appeal process if the licensee views that the violation did not occur and then a hearing date would be established by the Council. Based on this new amendment, if a liquor violation occurs, the seller or server would be cited by the Police as a criminal violation and the licensee would be charged an administrative penalty. If passed on final reading,staff will be sending a notice of the second reading and a copy of the proposed changes to all current alcohol license holders. 67 Recommended Motions: MOTION: Move to waive the reading of Ordinance No. 1610, there being ample copies available to the public. MOTION: Move to set the second reading of Ordinance No. 1610 for Monday, November 26, 2012, at approximately 7:00 pm in the City Council Chambers. 68 ORDINANCE NO. 1610 BEING AN ORDINANCE AMENDING ORDINANCE NO. 1490, CITY CODE OF 2005 RELATING TO ALCOHOL RELATED LICENSE VIOLATIONS 5.510 POLICY FOR ALCOHOL LICENSE VIOLATIONS It is the goal of the City of Columbia Heights to have each liquor licensee comply with the law 100% of the time in relation to the ordinance regulating liquor. The City of Columbia Heights will maintain staff to complete annual compliance checks,periodically check establishments for compliance with hours and license conditions. The City will act as a resource to provide server training or to direct businesses to approved training on an annual basis. The City wishes to have all business choose to be a Best Practices liquor licensee. BEST PRACTICES: Best Practices licensees will have the benefit of following the"Best Practices"violation matrix. The Best Practices program is voluntary and serves as a cooperative venture between licensees and the City to meet the goals of the City laid out in the city code. Best Practices licensees will fill out an application from the City of Columbia Heights committing their establishment to working towards 100% compliance with the applicable ordinances and Minnesota State Statutes. Required Activities: Best Practices licensee will agree to keep records of Best Practices activities and to have them available for inspection. The Best Practices licensee will have 75% of all alcohol selling staff trained by the Columbia Heights Police Department,Minnesota Department of Alcohol and Gambling Enforcement, the Minnesota Municipal Beverage Association,the Minnesota Licensed Beverage Association, (or any other organization who provides similar training upon approval by City's Liquor Licensing Department)on an annual basis. Best Practices licensees will have a written internal training program for new employees and a written policy requiring identification on anyone appearing to be 40 years old or younger. Optional Activities: Best Practices licensees will do four(three if they do integrated ID scanner on register) of the following: • Continuously certify 75% of all employees who sell alcohol are trained. • Internal employee reward/recognition program for employees who catch underage customers. • Run an approved internal compliance program. 69 • Automated ID card scanner integrated into cash register. • Pre-arrange to meet with staff and prosecutor on violations. • Have a policy to check ID on every sale. • Have a policy to work with the Columbia Heights Police Department to prevent secondary resale of alcohol. • Have a minimum age of 21 for employees selling alcohol products. PROCESS FOLLOWED FOR VIOLATIONS The purpose of this section is to establish a standard by which the City determines the length of a license suspension, revocation, and/or civil penalty. This policy shall apply to all on-sale and off-sale license holders. These penalties are deemed to be appropriate for all violations. Licensees shall be informed that this policy applies to the License Holder and does not apply to the Criminal Charges against the person who actually violates the law. The City Council may choose to deviate from the prescribed penalty is there are extenuating circumstances. Should the City Council deviate from the adopted policy, they must take official action and document the reasons for the deviation. The City Council may only consider the penalty portion of the action. Should the licensee wish to appeal the facts of a violation,they must request a due process hearing. A. Notice: Upon a determination that a violation of a city ordinance or state law relating to alcoholic beverages has occurred in a licensed premises, the licensee will be issued a notice, either personally or by U.S. Mail, setting forth the nature, date, and time of the alleged violation, the administrative penalties if applicable, the process for appealing the determination and the penalty for failing to comply with the penalty. Mailed notice will be considered complete upon deposit in the U.S. Mail addressed to the licensee at the most current address contained in City records. B. Compliance: Within 14 calendar days of the date of the notice, a licensee may comply with the penalties set out in the notice by paying the administrative fine and notifying the Licensing Clerk of the dates the licensee chooses to submit to any imposed suspension. Suspension days must be consecutive business days the last of which must not be more than 60 days after the date of the Notice. C. Hearing: Any licensee who receives notice of a violation may, within 14 calendar days of the date of issuance of the Notice, request in writing a hearing before the City Council. A request for a hearing must be submitted to the Licensing Clerk who will cause the request to be placed on the agenda of the next regular City Council meeting that will be held not less than 15 calendar days after receipt of the request. Written notice stating the date, time, and place of the hearing will be provided to the licensee no less than 10 calendar days before the hearing. Such notice will be considered complete upon deposit 70 in the U.S. Mail addressed to the licensee at the most current address shown in City records. The City Council may sustain, dismiss or amend the violation, and may sustain, waive, reduce, or increase any penalty provided for in this Chapter, except that no penalty may exceed the maximum permitted under state law. The City Council, if it sustains or amends the violation, will establish a new compliance date for the penalties imposed. D. Revocation: Notwithstanding any provisions in this Chapter to the contrary, a violation for which the established penalty is revocation must be forwarded to the City Council for disposition. The notice of violation will include the nature, date, and time of the violation and the date,time, and place of the Council's consideration, which will be not less than 10, nor more than 20 calendar days after the date of service of the notice.Notice will be considered complete upon personal service on the licensee or upon deposit in the U.S. Mail addressed to the licensee at the most current address shown in City records. The Council may sustain, dismiss, or amend the violation. If Council sustains or amends the violation it may revoke the license or impose such other penalty it deems as appropriate provided the penalty does not exceed the maximum permitted under state law. E. Multiple Violations: Each incident with respect to date,time, place, and persons involved,will be deemed a single violation for the purposes of imposing administrative penalties notwithstanding that an incident may involve more than one offense. The City Council may take multiple offenses into consideration when determining whether to deviate from the established penalties for any violation. F. Violations When Another is Pending: Any violation that occurs at a licensed premise while a prior violation is pending for those same premises will be treated as a separate violation and considered a subsequent violation for purposes of imposing an administrative penalty. G. Submission to Council in Lieu of Administrative Procedures: With the concurrence of the City Manager, or their designees, the Licensing Clerk, in lieu of accepting the administrative penalties provided for in Section §5.510,may submit any violation to the City Council for review and determination. The decision must take into consideration the number and seriousness of the offenses allegedly committed in a single incident. The decision to submit a violation to the Council must be included in the initial violation notice along with the date, time, and place the Council will consider the matter. XXXX: PENALTIES A. Penalty for Noncompliance: In addition to any criminal penalties which may be imposed by a court of law, the City Council may suspend a license for up to 60 days, may 71 revoke a license and/or may impose a civil fine on a licensee not to exceed$2,000.00 for each violation on a finding that the license holder or its employee has failed to comply with a statute, rule or ordinance relating to alcoholic beverages, malt beverages, or wine. B. Minimum Penalty: The purpose of this section is to establish a standard by which the City Council determines the civil fine, the length of license suspensions and the propriety of revocations, and shall apply to all premises licensed under this chapter. These penalties are presumed to be appropriate for every case; however,the council may deviate in an individual case where the council finds that there exist certain extenuating or aggravating circumstances, making it more appropriate to deviate, such as,but not limited to, a licensee's efforts in combination with the state or city to prevent the sale of alcohol to minors or, in the converse,when a licensee has a history of repeated violations of state or local liquor laws. When deviating from these standards, the council will provide written findings that support the penalty selected. When a violation occurs,the staff shall provide information to the City Council to either assess the presumptive penalty or depart upward or downward based on extenuating or aggravating circumstances. The staff shall notify the licensee of the information being considered and acted upon by the City Council. C. Penalties: (1) Except as otherwise provided in this Chapter,the sale of alcoholic beverages to a person under the age of 21, the sale of alcoholic beverages to an obviously intoxicated person, or the failure of an on-sale licensee to take reasonable steps to prevent a person from leaving the licensed premises with an alcoholic beverage will subject the licensee to the following administrative penalties: ("Best Practices" applies only to license holders who are enrolled in the program at the time of the violations) FOR BEST PRACTICES LICENSE HOLDERS: Type of License 1"Violation 2°d Violation 3`d Violation 4th Violation On Sale Intox. $250 $500 and 3 day $1,000 and 5 day Revocation Liquor suspension suspension On/Off Sale Beer $250 $500 and 3 day $1,000 and 5 day Revocation suspension suspension Wine/beer $250 $500 and 3 day $1,000 and 5 day Revocation suspension suspension Club Liquor $250 $500 and 3 day $1,000 and 5 Revocation suspension days suspension FOR OTHER LICENSE HOLDERS: Type of License 1"Violation 2°d Violation 3`d Violation 4th Violation On Sale Intox. $500 $750 and 5 day $1,000 and 10 Revocation Liquor suspension day suspension 72 On/Off Sale Beer $500 $750 and 5 day $1,000 and 10 Revocation suspension day suspension Wine/beer $500 $750 and 5 day $1,000 and 10 Revocation suspension day suspension Club Liquor $500 $750 and 5 day $1,000 and 10 Revocation suspension days suspension (2) Except as otherwise provided in this Chapter,the following violations will subject the licensee to the following administrative penalties: Type of 1St Violation 2"d Violation 3rd Violation 41h Violation Violation Refusal to $1,000 and 7 $2,000 and 14 Revocation N/A allow City days days inspectors or suspension suspension police admission to remises After hours $1,000 and 7 $2,000 and 14 Revocation N/A sale, display or days days consumption of suspension suspension alcoholic beverages Illegal $1,000 and 7 $2,000 and 14 Revocation N/A gambling on days days remises suspension suspension Commission of Revocation N/A N/A N/A a felony related to licensed activity Sale of Revocation N/A N/A N/A alcoholic beverages while license is under suspension Sale of Revocation N/A N/A N/A intoxicating liquor with only 3.2 percent malt liquor license 73 (3) Any prior violation that occurred more than 24 calendar months immediately preceding the most current violation will not be considered in determining successive violations. (4) The nature of the most current violation will determine the appropriate penalty as established by paragraphs(1) or(2) above,provided, however,that any and all violations occurring within 24 months immediately preceding the most current violation will be considered in determining successive violations. (5) Any licensee who fails to pay an administrative fine or adhere to a suspension, whether imposed by this Section or the City Council, within the allotted time period will be subject to an additional suspension of the license for a period of time as determined by the City Council,but not to exceed 60 consecutive days. Any licensee who fails to comply with a City Council imposed license suspension resulting from a prior non-compliance with the administrative penalties imposed by this Chapter is subject to license revocation. (6) Nothing in this Section will prohibit the City from seeking criminal prosecution of any alleged violation of this Chapter in addition to any administrative penalties provided for herein. This ordinance shall be in full force and effect from and after 30 days after its passage. First Reading: November 13, 2012 Second Reading: Date of Passage: Offered by: Seconded by: Roll Call: Mayor Gary L. Peterson Tori Leonhardt City Clerk/Council Secretary 74