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HomeMy WebLinkAbout04/08/2013 regular OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING MONDAY,APRIL 8,2013 THE FOLLOWING ARE THE MINUTES FOR THE REGULAR MEETING OF THE CITY COUNCIL HELD AT 7:00 P.M. ON MONDAY,APRIL 8,2013 IN THE CITY COUNCIL CHAMBERS,CITY HALL, 590 40TH AVENUE N.E., COLUMBIA HEIGHTS,MINNESOTA. 1. CALL TO ORDER/ROLL CALL/INVOCATION Mayor Peterson called the meeting to order at 7:00 PM Members Present: Mayor Peterson, Councilmember Schmitt, Councilmember Williams, Councilmember Diehm and Councilmembers Nawrocki. Staff Present: Public Works Director Kevin Hansen and City Clerk/Council Secretary Tori Leonhardt. 2. PLEDGE OF ALLEGIANCE Recited 3. ADDITIONS/DELETIONS TO MEETING AGENDA Mayor Peterson added an announcement from the Sister Cities and a historical presentation from former City Manager, Malcolm Watson. 4. PROCLAMATIONS PRESENTATIONS RECOGNITION ANNOUNCEMENTS GUESTS A. Mayor Peterson read the proclamation for Arbor Day and asked that April 26t'be dedicated as Arbor Day and the Month of May as Arbor Month. Kevin Hansen stated this is the 21 st year we have been recognized as a Tree City USA and we are very proud. B. Mayor Peterson read the Proclamation for National Library Week April 14-20, 2013 and presented it to Renee Dougherty, Library Director. Board Member Pat Sowada thanked the Council and Mayor Peterson and invited everyone to visit the library. Barbara Tantenella and Catherine Vesley from the Library Board were also there to accept the award. C. Mayor Peterson read the Proclamation for the Annual Community Prayer Breakfast to be held on Wednesday, May 8"' at 7:00 AM at Murzyn Hall. The speaker for the breakfast is Randy Mortenson. Mortenson gave up his career to serve humanity and has been doing mission work in Haiti. D. Sister Cities Announcement—Gloria Berkstrom, Co-Chair of Sister Cities, invited everyone to attend the Sister Cities' 7`h Annual Young Artist/Author at Murzyn Hall this Wednesday evening at 7:00 PM. The theme this year is the Power of Exchange. It is up to each individual entrant's interpretation as to what this means to them. The jazz band and the elementary All Star Choir will be there to perform. They have selected three essay and poetry winners and three art piece winners. First prize is $100 with second and third place being awarded $50 each. The winners of the essay contest and the art piece contest will go onto the competition in Washington DC. This whole exhibit/event is solely sponsored by the Sister Cities. This is their way of giving back to the community and staying involved with the community and different activities. E. Historical Presentation by Malcolm Watson, 1717 49'h Ave. Watson began with stating he served our country in the Navy in WWII. After the war he went to the University of MN and became a civil engineer. He started at the City of Columbia Heights 62 years ago this week. While he was an engineer for the City he laid out streets and utilities in the NE corner of Heights. In 1967 he became the City Manager. At that time their offices were located in the old field house and Council meetings where held on the porch. Watson stated during his years as City Manager they built the Police and Fire station (which houses City Hall today). The second floor of the building was not designated and when staff heard there was talk of it being a library, Watson and his staff moved over their office furniture and it became the Administrative Offices. There was a house on 40`x' and Jackson which they tore down and spent $145,000 to build the current library building, complete with a shooting range in the basement. He retired in 1977 after 20 years of being City Manager. The City grew from 8,000-24,000 residents. He asked that the Council be careful not to take hasty action when they are put under pressure whether good or bad. Be sure you review expenses and recognize it adds to the debt. It is important that changes benefit the community as a whole. Watson thanked the Council, Mayor and City Manager for allowing him to be a part of this great community. 5. CONSENT AGENDA Councilmember Nawrocki pulled items C, D, E, and F for further discussion. City Manager Walt Fehst took the Council through the remaining items on the Consent Agenda. A. Approve the minutes of the March 25, 2013 City Council Meeting MOTION: Move to approve the minutes of the March 25, 2013 City Council Meeting. B. Accept Board and Commission Meeting Minutes MOTION: Move to accept the March 6, 2013 Library Board Minutes. C. Adopt Resolution 2013-24 Requesting MSAS Construction Funds for Other Local Transportation Uses- Removed D. Commercial Meter Replacement Program: Customer Funding- Removed E. Adopt Resolution 2013-25 Declaring the Intent to Bond for the Commercial Water Meter Replacement Program- Removed F. Adopt Resolution 2013-26 being a resolution approving and specifying the terms of an inter-fund loan from the Columbia Heights HRA- Removed. G. Approve Business License Applications MOTION: Move to approve the items as listed on the business license agenda for April 8, 2013 as presented. H. Review Payment of Bills MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8 the City Council has received the list of claims paid covering check number 147358 through 147507 in the amount of $283,192.81. Motion by Diehm, seconded by Williams; approve the Consent Agenda items with the exceptions of items C, D, E and F, which were pulled for further discussion. Upon Vote: All ayes. Motion carried. Items pulled from Consent Agenda for further discussion: Item C: Adopt Resolution 2013-24 Requesting MSAS Construction Funds for Other Local Transportation Uses Nawrocki stated this resolution is saying that all the State Aid streets have been taken care of in the City and the roads around Kordiak Park and Innsbruck need improvement and we not using State Aid money for this. Why do we agree with the State that all our roads are fixed, when in fact the ones around Kordiak Park are not fixed as of this date. Hansen stated in 1999 the City applied for and received State Aid certifications that all roads were built and complied with the standards of the time. This frees up money and allows us to use it on Non-State Aid roads. When we certify complete, we can use this program to supplement. Every year we have done this resolution, allowing us to use the funds for repair of streets. Nawrocki stated that we are saying they are done and they are not. Hansen indicated these are two different issues. State Aid Funding rule views that they are built to the standard of the day. In this case, it does not mean that the roads do not need work; it just means all the roads within Columbia Heights were built in compliance with the standards of that time period. We do have roads that need to have maintenance work done on them and by passing this resolution; this allows us to use the money for improvement programs. Nawrocki asked why on the resolution it lists all the streets in the Innsbruck Parkway. Hansen stated the State Aid roads now need repair and the money can be used for that purpose. Motion by Williams, seconded by Schmitt, waive the reading of Resolution 2013-24, there being ample copies available to the public. Upon Vote: All ayes. Motion Carried. Motion by Williams, seconded by Schmitt, approve and adopt Resolution 2013-24 requesting Municipal State Aid System construction funds for other local transportation uses. Upon Vote: All ayes. Motion Carried. Item D: Commercial Meter Replacement Program: Customer Funding. Nawrocki stated he asked at the work session for a report on how much money the City was losing in water that was not being paid for. Hansen stated it will take some time to compile this information. Fehst stated in doing the residential meters, we found a 7% increase in the water accountability. Nawrocki asked if this was going to be cost effective and if we are going to get this money back? Hansen stated definitely. Nawrocki expressed his disappointment that this was not brought up at the Chamber Meeting where several commercial business people were present. Fehst stated we will be notifying them. Nawrocki stated there should be a public meeting and we should not go forward with this. Diehm pointed out many of these meters are $300—$500 to replace and for the costs that are going to exceed the $500 the property owners are able to spread the payments out over time. The other point is, these being the older meters; we do not have currently had the capabilities of getting a radio read. This is very important and has been 20—30 years since some of these meters were installed. Motion by Diehm, seconded by Williams, Authorize funding options for the Commercial Water Meter Replacement Program: 4 quarterly payments on customer's utility bill for meter installations less than $500; and assessment for a 5-year term for meter installations costing more than $500. Nawrocki again posed the question as to how much money are we losing. Does it justify the $250,000 expenditure? Peterson stated this is done because the meters are not reading properly because they are outdated. Schmitt pointed out if the commercial properties are not paying their fair share of the incurred costs, it is the residents that are absorbing the costs as Minneapolis bills us for the water being consumed. If it is under billed it is the residents that we have to pay for it. Motion by Nawrocki moved that this be tabled to a special hearing for commercial businesses. Motion died for lack of second. Upon Vote: Roll Call: Schmitt; aye, Williams; aye, Diehm: aye, Nawrocki; nay, Peterson; aye. 4 ayes, 1 nay. Motion Carried. Item E Adopt Resolution 2013-25 Declaring the Intent to Bond for the Commercial Water Meter Replacement Program Motion by Williams, seconded by Diehm, waive the reading of Resolution 2013-25, there being ample copies available to the public. Upon Vote: All ayes. Motion Carried. Motion by Williams, seconded by Diehm, to adopt Resolution 2013-25, being a resolution approving the declaration for the official intent of the City of Columbia Heights to bond for the Commercial Water Meter Replacement program. Motion by Nawrocki to table this item and call a special meeting. Motion died for a lack of a second. Upon Vote: Roll Call: Schmitt; aye, Williams; aye, Diehm: aye,Nawrocki; nay, Peterson; aye. 4 ayes, 1 nay. Motion Carried. Item F Adopt Resolution 2013-26 being a resolution approving and specifying the terms of an inter-fund loan from the Columbia Heights HRA. Motion by Williams, seconded by Schmitt, to waive the reading of Resolution 2013-26 there being ample copies available to the public. Upon Vote: All ayes. Motion Carried. Motion by Williams, seconded by Schmitt, to adopt Resolution 2013-26, being a resolution approving and specifying the terms of an inter-fund loan from the Columbia Heights HRA. Nawrocki stated it sounds like we want to spend money before we get it. We are doing it by borrowing it from one fund and moving it to another and then spending it. Nawrocki stated he does not recall doing this in the past. Fehst stated we have been doing it this way. We used to do it in a less formal way, now we are itemizing it for the Council to see. It is like if you wanted to cash in a CD and there is a penalty, this allows you to get funds from another source. This way you get the benefit of a short term loan and do not have to pay any penalties. Nawrocki asked when was the last time that the City has done this. Kloiber indicated this sort of interim borrowing happens every day. All of the City funds are combined into a common investment group. The only reason this came about this way is because in the last few years it has become more formalized for Parkview Villa under the HUD agreement. Kloiber stated this is less costly to residents. Upon Vote: Roll Call: Schmitt; aye, Williams; aye, Diehm; aye, Nawrocki; aye, Peterson; aye. 5 ayes. Motioned Carried. b. PUBLIC HEARINGS 7. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions B. Bid Considerations C. New Business and Reports Report from Library Task Force— Dave Larson introduced himself and Tricia Conway of the Library Task Force. He also listed all of the Task members to include, Jane Bona, Kathleen Collopy, Marna Lee Gomez, Nile Harper, Halimo Yusuf Ismail, Mike McGee, Muhidin Warfa and Colleen Werdien. He stated they all took their task very seriously and indicated they are not experts,just ordinary citizens of the community. Mayor Peterson just wanted to mention before Larson got any further, that he and the Council are very proud and impressed in the professionalism that has gone into everything they have done. Larson thanked the Mayor and continued to say the charge to the Library Task Force was to be a fact-finding organization to explore the possible replacement of the library building either with a single building or the library and City Hall as a combined facility. The Task Force met twenty-five times for a total of over forty-eight hours. They toured eleven potential library sites within Columbia Heights and heard from many community groups and hosted public listening sessions to hear the wants and needs of the people. The Task Force gathered information on the history of our library, examined census data and library needs, investigated emerging trends in public library's and created work groups in technology, location and types of space. They spent the summer collecting community feedback, to include analyzing data from a survey that was completed and toured other libraries. Larson stated the current library was built in 1961, remodeled in 1973 and expanded in 1978. In 1999 when the original needs assessment was completed there were 12,000 residents in Columbia Heights and in 2011 that number grew to 18,312. Thirteen years later our library has continued to serve a growing community. The main part of the library is 52 years old and operating on two floors is insufficient. Children must sit on floor and the teen area is a hallway. Almost all libraries have a separate space for teenagers; have flexible reading rooms, and tables to plug in electronic devises. When they asked the community if they would support a new public library building, eight-seven percent of the respondents said yes and seventy-five percent said they would support a multi-purpose facility. The Task Force then met with Cindy McCleary from Leo A. Daly, the firm selected to conduct the 2012 space needs assessment, and went over all of the pros and cons of their findings. They completed a vision and summary of recommendations. The proposed library recommendations are as follows: 1. Replacing the existing library with a new building. 2. A new library ranging from 20,500 square feet to 24,000 square feet on 2.5-3 acres. 3. Library on one floor with multiple use space, energy-saving technology, and natural light. 4. A library wired for electronic information communication technologies that allow for future development. 5. Retain the services of an architect with major interior design experience and demonstrated success in library design. 6. A library with well-designed work spaces and offices, separate from public areas for staff to carry out administration and operations of the library. 7. A library with areas designed for a variety of groups. 8. A library designed with attention to making it a community-oriented, public meeting and lifelong learning center. 9. A library with parking space to accommodate 50-75 vehicles and designed to provide accessibility for all persons. 10. A building/parking area designed for safety, efficient operation and accessibility, with a single entrance/exit. 11. A separate staff room for breaks and storage of person items and a separate restroom. 12. A new City library constructed in the near future while interest rates for borrowing are very low and good sites are available. Cindy McCleary, Regional Lead for Leo A. Daly, stated she was hired as a consultant to identify and review existing needs for a library, determine who the library is serving, investigate alternatives and what it would take to have a new library here. McCleary stated that sometimes it helps when someone new looks at things for the first time as they may see things that people who frequent the library may not notice. She pointed out many areas of the existing library that are inadequate, such as where the main desk is in the library. Currently they can only see about 1,000 of the 14,000 square feet. This poses a problem when trying to help patrons. The stairs are particularly narrow and hard to bring small children down. The teen area is very small and there are no tables. The lower level is the children's area and there is only one table and two chairs, which does not give an opportunity to engage in reading. The computer demand is growing and currently there are three in the children's area and she viewed adults using them. There are also not enough outlets to plug in anymore computers. McCleary indicated that one-fifth of residents in Columbia Heights are under eighteen years of age, one-third is over fifty years old and sixty-seven percent are in the labor force. They looked at four local comparable libraries and also compared our current library on a regional scale. Columbia Heights current library has the largest percentage of circulation of children's materials at forty-seven percent compared to the regional circulation of forty percent. Columbia Heights also has the highest number of programs for children at three hundred and forty-three programs per year. The current library is underfunded compared to other libraries. Libraries supply data and communication preferences are changing. The future library provides immediate access to the ever changing resources. The final recommendation is for a single level library, have up to seventy parking stalls, a drive up book drop, have from 2.5 —3.0 acres of land, have up to twenty computers, a training room/lab space, multiple tutoring and conferences room, a dedicated teen area, a children's story area, a space for non-English speaking students and a way to provide technology. Larson stated the Library Task Force recommends three sites: 1. Mady's bowling site, which is owned by City, is in a highly visible area, but the cleanup of the site would be major. 2. Empty land on 42"d between Jackson and Van Buren is close to Immaculate Conception Church that utilizes the library. Could build a multi-level/use building. 3. Former Kmart site 47th and Grand Ave which has a high elevation overlooking Central Avenue, but it is not owned by City. Smallest site, have to find alternatives for storm water holding. Larsen stated they have presented the Council with their findings and the ball is in their court now. He asked that the Council review the information supplied and follow up with the Task Force at the May 13t1i City Council meeting. Nawrocki stated he remembers the old library. He appreciates the time the Task Force has put into this and the time that Larson has taken to answer his questions. Nawrocki stated it would have been nice to have bond information and maintenance costs in their presentation. A new building would cost approximately 8-10 million dollars and another 5-7 million dollars in interest. This needs to be taken into account. We are still paying for our new public safety building. We have to look more at property tax dollars. Nawrocki stated he strongly recommends that this is put before the voters in the community before proceeding any further. Williams stated we just had an election and when he was running, he personally had about 100% of the people wanting a new library. We are building this for the youth of today and tomorrow. We need to make a statement for our citizens. We have come a long ways and I feel that our citizens will be behind us on this. Williams stated the Library Task Force did a great job and now is the time to make a move. Diehm echoed Councilmember Williams' statement and added that in 1999 we decided we had inadequate library space and here we are tonight stating we have inadequate space. We need to take this message and tap into some of our staff and see if we can take this vision and turn it into a reality. I am very supportive and feel we need to be sensitive to our resident's needs. The people in our community have invested in their homes and over the past several years we have struggled to keep our property taxes where they are. We need strong schools and community centers. Schmitt stated she was impressed and appreciates all the time that was put into this. She has a concern with the costs, like everyone else. Where is the funding going to come from? In talking to residents she has found people are both for and against a new library. Schmitt told the Task Force members they were a great influence to this community and thanked them for their dedication. Mayor Peterson wanted to thank them again for all their time and efforts. There is no doubt that anything you do will cost you money. We want people to want to live here and want people to come here. We have honest, hardworking people in this community and they deserve a new library. In talking with the community, he found people that are very against it, but he feels that the majority of the people want one. Peterson stated you have proven to us that we need one. We will talk it over at staff level and council level. Bob Odden, 1201 42 'h Avenue, stated that it is only $10 to be a member of the library. The library is a fun place. The library is a great asset and it is in a good location. There are problems out there and at the state and federal level, we are incurring too much debt. We should not pull money out of the private sector. Interest rates maybe low, but they need to go back up. Realizes the library has some problems, but it is still a nice library. Believes it should go up for a referendum. Does not think it is a good time for us to build one. Agrees we need one, but not the time to build one. Cliff Shedlov, 1000 41St Avenue, stated in his opinion this community is getting better with the new fire and police station and all the things they do for you. Shedlov asked how we can move forward if we cannot plug another thing in. We need to keep up with the times. Mayor Peterson asked that the audience withhold their applause. Deloris Strand, 1145 Polk Place, wondered if it was an option to be a part of Anoka County Library system. Peterson stated he and Fehst met with them and it is no benefit to us. Strand also asked when they build this library make sure there are display cases and storage for Sister Cities. Catherine Vesley, 5135 Matterhorn Drive, wanted to express her thanks to the City Council and to the Library Task Force and consultants. The board gave full support,but we did not influence them at all. They remained independent. We have a lot of confidence that the Council will look at all the parameters. Councilmember Nawrocki wanted to encourage all members of the council to consider moving this to a referendum. 8. ADMINISTRATIVE REPORTS Report of the City Manager Councilmember Nawrocki stated we need to let people know that the Police Department has started policing Jay Walkers. We need to get information out to the public that they are back to enforcing it. Diehm stated it is on the website and Facebook, plus we have stated it at the last two meetings. Nawrocki indicated that the trash on 47th and Central was overflowing and that needs to be looked at. Peterson stated there is going to be a lot of cleanup in the City. Nawrocki stated it has been full for a couple of weeks. Schmitt asked how residents could report pot holes. Hansen stated call Public Works at 763-706-3600 or by going to our website to the Public Works page. Either way it comes directly to US. Report of the City Attorney None 9. CITIZENS FORUM John Bistow, 4216 Jackson Street, expressed the need for dog parks within the City. Over the last 10 - 15 year's dog parks have become to be a standard amenity. Does not understand why Columbia Heights does not currently have that. Nawrocki stated there is one on the south side of the golf course. Bistow stated you have to pay Minneapolis to use it. Diehm stated she has been asked about this several times. This may have to be directed to our Park and Recreation Department and she would be in support of looking into that. Nawrocki stated the park was looked at a while ago and residents were not happy with that. Bistow stated there are several parks in the City that could be looked at. It is an amenity that people would use. Williams thanked Bistow for bringing this to our attention. There is a nice piece of land that we have at the dead end of 37t". That would be a perfect place for a dog park. Williams stated he would be in favor of a dog park. Nawrocki thought that there was some intent that people could bring their dogs into that area—informally. Hansen does not believe it was a formal discussion for the Park and Recreation Commission. Peterson stated that may be a good place to have one. There is also a vacant parcel on Huset. Peterson stated we can look at it. Fehst stated the League does have some stipulations. Fehst stated he will have the Park and Recreation Department takes a look at what it all entails. 10.ADJOURNMENT Mayor Peterson gave a report on our progress on Heritage Tower. Donations are up to $22,000. The pancake breakfast at Applebee's raised approximately $795.00. He thanked all the volunteers. Peterson asked that we keep our service men and women in our prayers and do a random act of kindness. Peterson adjourned the meeting at 9:29 PM. RESOLUTION NO. 2013-24 BEING A RESOLUTION REQUESTING MUNICIPAL STATE AID SYSTEM CONSTRUCTION FUNDS FOR OTHER LOCAL TRANSPORTATION USES WHEREAS,the City of Columbia Heights receives Municipal State Aid System(MSAS)funds for construction and maintaining 20%of its City streets,and WHEREAS, 11.62 MSAS miles are currently authorized,and WHEREAS, 11.62 MSAS miles of streets have been built or resurfaced since 1964,and WHEREAS,the City currently has 48.58 miles of municipal streets that require maintenance and upgrade,and WHEREAS,the majority of these streets have insufficient strength and poor surface drainage,and WHEREAS,it is proposed to systematically install or repair concrete curb and gutters for improved surface water drainage and add additional strength to the streets for traffic survivability,and WHEREAS,the City State Aid routes are improved to State Aid standards and are in an adequate condition that they do not have needs other than additional resurfacing,and WHEREAS,it is authorized by MN Rules 8820.1800 to use part of the MSAS construction appropriation of our City's State Aid allocation on local streets not on the approved State Aid system,and WHEREAS,the City proposes to rehabilitate the City-owned underground utilities as needed and rebuild the street in the process, and WHEREAS,it is proposed to use a portion of the City's population allocation funds to upgrade the local street,to wit: WHEREAS the City indemnifies save and holds harmless the State of Minnesota and its agents and employees from claims, demands,actions,or causes of action arising out of or by reason or matter related to constructing the local street as designed,and WHEREAS,the City further agrees to defend at its sole cost any claims arising as a result of constructing the local street,and WHEREAS,the final approval of the State Aid for Local Transportation Division is therefore given, NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS,MINNESOTA The City of Columbia Heights,Anoka County Minnesota,requests the release of MSAS construction funds for the upgrade and rehabilitation of City municipal streets,to wit: Argonne Drive Innsbruck Parkway West Saint Imier Drive Chalet Drive Matterhorn Drive Saint Moritz Drive Innsbruck Circle West Pennine Pass,Innsbruck-Argonne Stinson Boulevard,225' south of Innsbruck Parkway,Pennine-Stinson Rainier Pass Innsbruck-Argonne Dated this 8"'day of April 2013. RESOLUTION 2013-25 DECLARING THE OFFICIAL INTENT OF THE CITY OF COLUMBIA HEIGHTS TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY WHEREAS, Internal Revenue Service has issued Tres. Reg. 1.140-2 providing that proceeds of tax exempt bond used to reimburse prior expenditures will be not be deemed spent unless certain requirements are met; and, WHEREAS. the City of Columbia Heights (the "City") expects to incur certain expenditures which may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a bond; NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS AS FOLLOWS: 1. The City reasonably intends to make expenditures for the Commercial Water Meter Replacement program consisting of water meter replacements and reasonably intends to reimburse itself for such expenditures from the proceeds of debt to be issued by the City in one or more series in the maximum principal amount of$200,000. City Council Minutes Monday,April 8,2013 Page 10 of 11 2. This resolution is intended to constitute a declaration of official intent for purposes of Tres. Reg. 1.150-2 and any successor law, regulating or ruling. Passed this 8t1'day of April 2013. RESOLUTION 2013-26 CITY OF COLUMBIA HEIGHTS RESOLUTION APPROVING AND SPECIFYING TERMS OF AN INTER-FUND LOAN FROM THE COLUMBIA HEIGHTS HRA RECITALS A. The City of Columbia Heights ("City") and its Housing and Redevelopment Authority ("Authority") desire to enter into a mutually-beneficial sixty(60) day inter-fund loan agreement. B. The Authority is currently undertaking to divest itself of all operations. Therefore it is impractical for the Authority to invest in long-term high-earning investments at this time. Consequently, the Authority's building repairs reserve for Parkview Villa North is currently invested in a demand deposit account with an interest rate of approximately 0.35 percent per annum. It would be advantageous for the Authority to safely earn a higher rate of interest for a sixty day period. C. The City receives two large payments of property taxes each year as its primary source of funds. Therefore the City invests upon receiving these payments and then liquidates the investments over the following six months until the next tax collection. It would be advantageous for the City to hold more of these investments to full maturity beyond the next tax collection date of June 20, 2013, instead of liquidating them in the current market. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights: 1. The City authorizes acceptance of a loan from the Authority in the maximum amount of $750,000 (the "Loan"), to be drawn from Fund 203 — Parkview Villa North. Such amount will be made available to the City on April 24, 2013. 2. The outstanding principal balance of the Loan bears interest at the rate of 1.0 percent per annum. Interest accrues from April 24, 2013. 3. The Loan is payable from the City's Investment Fund 886 and shall be due in full, including all accrued interest, on June 24, 2013. 4. The principal sum and all accrued interest payable under the Loan are pre-payable in whole or in part at any time by the City without premium or penalty. All payments shall be applied first to accrued interest, and then to unpaid principal of the Loan. 10 City Council Minutes Monday,April 8,2013 Page 11 of 11 5. The Authority and City may amend the terms of this Loan at any time by mutual resolutions. 6. The City Council authorizes and directs staff to take all actions and execute any documents necessary to carry out the intent of this resolution. Passed this 8ffi day of April 2013 Tori Le nhar t, C y Clerk/Council Secretary I1