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HomeMy WebLinkAbout08/12/2013 Regular OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING MONDAY,AUGUST 12,2013 THE FOLLOWING ARE THE MINUTES FOR THE REGULAR MEETING OF THE CITY COUNCIL HELD AT 7:00 PM ON MONDAY,AUGUST 12,2013 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 7:02 PM. Members Present: Mayor Peterson, Council Member Schmitt, Council Member Diehm, and Council Member Nawrocki. Members Absent: Council Member Williams Staff Present: City Manager Walt Fehst, City Engineer/Public Works Director Kevin Hansen, City Attorney Jim Hoeft, Finance Director Joseph Kloiber, and City Clerk/Council Secretary Tori Leonhardt Pastor Max Richter of Community United Methodist Church gave the invocation. 2. PLEDGE OF ALLEGIANCE Recited 3. ADDITIONS/DELETIONS TO MEETING AGENDA Council Member Nawrocki indicated he has several items to discuss under the City Manager's Report. A. Library Teen Volunteer Recognition— Children's Librarian Mai Kao Xiong stated over 800 children participated in the Summer Reading Club this year. They have had 47 programs with over 2,000 children, teens, and adults attending and taking part in the activities. The library is a community center for family, friends, schools, day cares, churches, and more. Providing quality programs, assistance, and service would not have been possible without the fine group of volunteers we have here tonight. Mai Kao had the volunteers introduce themselves to the Mayor and Council and then to the audience. Abigail Miller, Rosa Boda, Samantha Javes, Victoria Campoverde, Elishadai Yilma, Caitlin Kane, Dianna Hamilton and her dog Haylee, were the volunteers that were present. Mai Kao indicated they had a team of 17 teen volunteers and one READ dog therapy team that contributed 350 hours of volunteering service at the library. Mai Kao thanked the Mayor and Council for allowing her the time to recognize the value and importance of volunteers giving their time and efforts to serve the community in this manner. She also thanked the Volunteen's for their willingness and commitment. Mayor Peterson thanked all the volunteers and stated when starting volunteering that young, it stays with you your whole life. B. Presentation-Tautges Redpath Auditors- David Mol, CPA, Tautges Redpath, stated this report is the audit of the 2012 financial statements. The financial statements are audited with State and Federal standards. The reports are City Council Meeting Minutes Monday,August 12,2013 Page 2 of 8 an opinion on the fair presentation of the 2012 financial statements, on the internal controls, the compliance with Minnesota legal compliance Audit Guide for political subdivisions, of financial data schedule and communication to those charged with governance. The City received the GFOA award of excellence in financial reporting for 2011. Mol indicated they gained an understanding of internal controls that are in place and their effectiveness. The result was no items noted. They looked at the compliance with depositories of public funds and investments, conflicts of interest,public indebtedness, contracting bid laws, claims and disbursements,misc. provision, and tax increment—all of which resulted in no findings of noncompliance. Under communication to those charged with governance they found two immaterial timing differences that were not adjusted, but next year these items will not be counted. The financial results were 32 million dollars of revenue and 31 million dollars of expenditures with an ending fund balance of 43 million dollars. There is a total of 24 million dollars in nonspendable, restricted and unrestricted revenue. Those amounts relate to Park View Villa North. General Fund revenues are made up of 75%property taxes, 15% intergovernmental, 6% for services, 2% for licenses and permits, 1% for fines and forfeitures, and 1% other. General Fund Expenditures are made up of 56% Public Safety, 18% General Government, 14% Public Works, 10% Culture and Recreation and 2% Capital Outlay. The water operating fund generated$2,600 in operating income and the sewer operating fund generated $1,500 of operating income. Liquor Operation sales increased by $309,000 or 4% over last year. The gross margin percent decreased from 24.5% to 24.42%. The net income increased $63,000 over last year. The net gain is 35% of the city's tax capacity. Council Member Nawrocki inquired about Liquor operations stating the audit shows the City making $683,000 in 2012, does that include debt service we are paying out for stores, if not, why would you not include debt service when you talk about income? Mol responded by saying this was not meant to exclude it, but to show the net income from operations. Interest on the debt was $230,000. Included in other operating expenses is depreciation of the property. The principle is offset by the depreciation. Nawrocki commented that this report makes it look like the liquor stores are doing pretty well and in fact we will be paying on the debt service for quite a while. Mol responded by saying another good report to look at is the Cash Flow Statement and in there it shows that liquor operations generated $815,000 cash, $27,000 used for capital acquisition, and $363,000 principle and interest. Kloiber pointed out to Nawrocki where these items were located in the report. Nawrocki asked where it shows the profit. Mol said the net income of$454,000 after debt service interest. Mol explained how the income statement works. Kloiber stated in answering the question of how much do we make, it ignores the fact that the principle payments go towards buying us an asset. Nawrocki stated the net result is not helping to keep taxes down. Kloiber added at the end of the debt service you have the assets and you could sell them and make more profit. Nawrocki wanted to know where to find the total property taxes that the City levied in 2012. Mol directed him to the statistical section which provides a 10 year history of the tax levy. Part of the reason or components of it is, since 2003 state funding has changed, local government aid is decreased. When funding is reduced and you still want to keep levels of service the same, taxes have to increase. Nawrocki stated we need to look at ways of cutting expenses. Council Member Schmitt stated there is potential talk about a library, how will that affect our debt limit, our bond rating, and what repercussions will this have? Mol replied that Ehlers would be better to answer the question on bonding. He continued by saying there is statutory restriction on how much debt you can have supported by property taxes. City Council Meeting Minutes Monday,August 12,2013 Page 3 of 8 The current debt margin is $18 million and if you added in debt of$7 to $14 million for a new library you would have to look at it from a practical standpoint on what flexibility that would leave you. Schmitt asked if we could potentially support it. Mol said from a statutory stand point yes, but you would have to take property taxes into consideration and it would depend on if you want to raise your levy if need be. Nawrocki stated he figured that would be a 7-8 percent increase in property taxes, depending on how far you spread out the debt. Kloiber added, the closer you get to the debt limit the less options you have in the future. If you issue a $14 million bond that leaves you $4 to $5 million of borrowing money until paid off. Schmitt asked if we had some bonds that are coming due in a couple years. Kloiber stated in terms of tax supported debt, there are a few small ones, but those are 4-5 years out. Mol stated the latest maturity is 2038. Schmitt indicated we do want to see improvements, but there are good and bad points and it is how we set ourselves up in order to still get good ratings. Her understanding of the City Manager's goal of the City is to eliminate its dependence on state aid. Kloiber clarified stating the goal is to reduce the dependency on state aid. In the City Manager's budget message for 2013, it stated we were at a dependency level of$2.1 million at the beginning of the 5 year plan and we are down to $900,000 of dependency now. We are at that same level of$900,000 for 2013/2014 and we are working on proposal concept for the next five years. There are capital needs in the city that may always be serviced by LGA. Nawrocki stated we do not want to lose site that we are getting an increase of$500,000 in LGA funds for approximately two years. This money should be used to help reduce the property tax levy. He also commented that Schmitt raised some good questions and would appreciate it if Kloiber would also provide him with the answers to Schmitt's questions. 4. CONSENT AGENDA Council Member-Nawrocki asked that items A, C, D, E and G be removed from the Consent Agenda for further discussion. City Manager Walt Fehst took the Council through the remaining items on the Consent Agenda. A. Approve City Council Meeting Minutes of July 22 2013 -REMOVED B. Accept Board and Commission Meeting Minutes MOTION: Move to accept the Library Board Meeting Minutes of July 2, 2013. MOTION: Move to accept the Charter Commission Meeting Minutes of July 18, 2013. C. Authorization to seek bids for 2013 Sanitary Sewer Pipe Lining Project-REMOVED D. Approve Change Order No. 1 for the Commercial Water Meter Replacement Program and Rescind Purchase of Sensus MXU's- REMOVED E. Approve Stormwater Grant Program-REMOVED F. Approve Business License Applications MOTION: Move to approve the items as listed on the business license agenda for August 12, 2013 as presented. G. Payment of Bills- REMOVED Motion by Diehm, seconded by Schmitt, to approve the Consent Agenda as presented with the City Council Meeting Minutes Monday,August 12,2013 Page 4 of 8 acception of items A, C, D, E, and G which were removed for further discussion. Upon Vote: All ayes. Motion Carried. Discussion Items: Item A Approve City Council Meeting Minutes of July 22,2013 Nawrocki stated the Council secretary was discretionary on the minutes, especially towards the end of the meeting when the Mayor sited him of not being very support of progress in the City. Nawrocki went on to say, he grew up in Columbia Heights and with respect to progress, a lot of good things have happened before the last 10 years. He and his wife made a conscious effort to live in Columbia Heights and raise their family here. As far as progress, there was only one park in the city; they built the current library and the Public Works facility, among other things. Progress came long before he was on the Council and he expects progress will continue. Nawrocki reminded Council we need to keep in mind the taxes we levy. Motion by Diehm, seconded by Schmitt, to approve the City Council Meeting Minutes of July 22, 2013. Upon Vote: All Ayes. Motion Carried. Item C: Authorization to seek bids for 2013 Sanitary Sewer Pipe Lining Proiect Nawrocki indicated he would like Hansen to explain to the residents what this is about since they end up paying the bill. Hansen stated that sanitary sewer lining is an annual event that we do and these are done in place. We normally do between 4,000 - 5,000 lineal feet a year. The liner is fabric with an epoxy coating that is then cured out and basically we end up with a new pipe inside the existing pipe. The determination of these areas are done from our own records of both know problem areas and televising records. This year we are concentrating on Polk Circle, Arthur Street between 44th and 45t1i, Central on both sides from 43rd to 45th, Jefferson just north of 40th and last 38th Street by Madison Street. Motion by Nawrocki, seconded by Diehm, to authorize staff to seek bids for the 2013 Sanitary Sewer Pipe Lining Project for the pipe segments identified herein. Upon Vote: All ayes. Motion Carried. Item D: Approve Change Order No. 1 for the Commercial Water Meter Replacement Program and Rescind Purchase of Sensus MXU's Hansen explained there are two parts to the benefit of this program. It is a different radio system that captures more data and a different register head. Motion by Diehm, seconded by Schmitt, to rescind the purchase of 350 Sensus MXU's from HD Supply in the amount of$39,276.56. Upon Vote: All ayes. Motion Carried. Motion by Diehm, seconded by Schmitt, to approve Change Order 1 for the 2013 Commercial Water Meter Replacement Program, City Project No. 1309, to Ferguson Waterworks of Blaine MN in the amount of$38,500 with funds to be appropriated from Fund 651-51309-5185; and, furthermore, to authorize the Mayor and City Manager to amend the contract for the same. Upon Vote: All ayes. Motion Carried. City Council Meeting Minutes Monday,August 12,2013 Page 5 of 8 Item E. Approve Stormwater Grant Program Hansen stated staff is proposing to create a cost share agreement with residential properties. The purpose is to help with some specified areas of the city that have some flooding issues. We are proposing to set this up in our existing budget. There is a 50150 cost share with a maximum of a $3,000 grant to help homeowners pay for it. There are currently about three properties out there looking for this type of grant program. Motion by Schmitt, seconded by Diehm,to approve the creation of a Storm Water Grant Program, funded by the City's Stormwater Utility. Upon Vote: All ayes. Motion Carried. Item G: Payment of Bills Nawrocki presented the City Clerk with a check for$14 for his meal at the City picnic and the Community picnic, since he still believes that previous action by the Council indicates that the Council is to pay for their own meals and local travel expenses. He reiterated his request to show him when the action of the Council was passed to rescind this item and add it back into the budget process. Fehst stated each budget is a new action by the Council. Nawrocki stated that we have not put any money back into the budget for meals and would like to know when that was added back in. Fehst stated that it is in the contingency fund and you have the ability to take it out of there. Nawrocki believes this is a violation of intent and if you want to clean it up come up with the appropriate action to add it back in. Nawrocki stated the other item is in respect to the bills being paid in accordance with Statue 412.271; he previously asked for a copy of the statue and did not receive it. He went and looked it up at the library and found the statue does allow for this way of payment of bills, but only if the Council has authorized the payment of bills through an action. Does not recall when we made the action to allow the payment of bills in this manner. Fehst stated he thought that was sent to him. Nawrocki indicated no he did not receive it. Fehst replied he will send it again. Motion by Schmitt, seconded by Diehm, that in accordance with Minnesota Statue 412.271, subd. 8, the City Council has received the list of claims paid covering check number 148741 through 148997 in the amount of$1,234,725.55. Upon Vote: All ayes. Motion Carried. 6. PUBLIC HEARINGS 7. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions None B. Bid Considerations Accept Bids and Award the Replacement of the PRV Vault Valves and Piping at Water Pump Station 2, City Project 1307 Hansen informed the Council this is a component of our water system that is located near Pump Station No.2 located at 44"' and Reservoir. Public Work's personnel found them to be in severe condition. This is a critical component that feeds over half the city. If it was to go out, the Crest View Communities would go out. They received six bids ranging from $134,000 to $184,000. They decided to bid out the PRV component separately because if those bids came in high, they City Council Meeting Minutes Monday,August 12,2013 Page 6 of 8 could get them done in another manner. Staff is recommending adding PRV valves, because their estimate is about $12,000 to do those. Motion by Nawrocki, seconded by Schmitt, to accept the bids and award the Pump Station No. 2 PRV Vault Replacement, City Project No. 1307, to Minger Construction, Inc. from Chanhassen, MN based upon their low, qualified, responsible bid in the amount of$134,072, and accepting Alternate 1 in the amount $9,550 for a total bid of$143,622, from Fund 651-51307-5185; and, furthermore, to authorize the Mayor and City Manager to enter into a contract for the same. Upon Vote: All ayes. Motion Carried. C. New Business and Reports Nawrocki stated he and Schmitt attended the Local Government Official meeting on July 31S` and they had a presentation by the Metro Cities organization about what they were doing. The County attorney talked about their program the county is involved in to try and put a stop to the fiscal abuse and financial exploitation of seniors. There was a presentation on the Anoka County Park system, which has grown from one park to several. Nawrocki offered if anyone would like information on that he will pass it on. Schmitt stated in addition, you can go to the Anoka County website and download a video that has information on it, or you can ask for it to be sent to your home or the city. She felt it would be a good presentation to a local senior group and indicated the County would be willing to come out and talk. Nawrocki brought up that he and Schmitt also sat on the League's Fiscal Futures Committee and received a copy of the 2013 Law Summaries if anyone was interested in it. We talked about the increase in local government aid and the fact that we are supposed to receive $500,000 in aid for at least the next two years. Nawrocki stated that at 4521-25 Tyler there was a tree that came down in front of the property, maybe on the City right-of-way, that fell on the fence of the property located at 4517 Tyler and did some damage. It was reported to the City and the City paid $750 to haul away what was left of the tree. The City took the claim for the damage of the fence and sent it to the LMC and they denied the claim, therefore the city was not going to pay for the damage to the fence. Does not understand why the city would acknowledge taking down the tree but not to the damage that the tree did to the fence. Hansen stated the tree was a boulevard tree that came down in the last storm and we do remove those under our Urban Forestry program and all damage that occurs we turn that over to the LMG, as we would with any claim. Peterson asked if it fell on the house would it be the same way. Hansen stated that was correct. The homeowners insurance would address the claim. Schmitt stated her understanding is the reasoning for the City turning the claim it into the League is so that when it is denied, they can then turn that into their homeowners insurance. Ruth Buchanan, 4517 Tyler Street, addressed the Council and indicated the tree that the City took care of was not a real healthy tree. She previously had to take down one of her trees because our tree was over crowding it. When that happened it was noted that it was rotted in the middle. Buchanan stated her insurance has a$1,000 deductible and that is a lot of money to pay to take care of her fence. Her son lives at 48016 1h Street and there is a diseased elm tree and she received a notice to remove the tree and the cost was $60.61 with the City paying 25% of the cost. She then received another letter stating there was an error and the amount to remove the tree was $625.00. Fehst stated it was a clerical error and it should have been$625.00. He apologized for the mistake. Buchanan asked if she had to pay it all at once, or is there any terms. Hansen stated he would have to see the letter. Fehst stated we are the only city that does a subsidy to remove trees. Hansen asked if she would like to call the Public Works Department City Council Meeting Minutes Monday,August 12,2013 Page 7 of 8 about assistance and offered that it can go on your next year taxes. Hansen stated it is a State law to remove the diseased tree. Nawrocki felt we should still pay for the damage to her fence. 8. ADMINISTRATIVE REPORTS Report of the City Manager Fehst stated the work continues in the Innsbrook area and the work has been delayed about a week. Cards will be left on their door and residents will have to move your car that night so you will not be blocked in. The City has sent updated notices to the residents up there. Fehst stated they were very appreciative that the city did such a great job of notifying them. Nawrocki wanted to know what is happening on the city newsletter. Fehst stated as soon as we get it we will get it to you and was unaware of what the time frame was on it. Nawrocki also brought up the building on 40th and Central, and wanted to know what is happening. Fehst said we have a meeting on August 15th as they did not have the study done on August 1st to determine if senior housing should be done. Fehst said they now have the study done and there are at least 90-95 units that can be built there. He hopes they will bring back a proposal to the City on how much it would be to purchase the first floor. Nawrocki asked about receiving a copy of the policy on trees and bushes that block the view of traffic. Fehst did not recall him asking for this but would have Hansen get him a copy of it. Fehst has been working with the police department on the areas that were brought forward by a resident at a previous meeting. Nawrocki brought up that there is a bush at McDonalds that is rather large and you cannot see when you are leaving. Fehst would have them look at it. Report of the City Attorney Hoeft indicated none at this time. 9. CITIZENS FORUM Robert Sierra, 320 44th Avenue NE, has lived here for 13 years and has had a continual problem with people from the apartment building driving across his yard. He has talked to the owner of the apartment building to try and come to an understanding and has even offered to pay for half of a fence if they would pay for the other half. He would like to build a garage,but our ordinance states that since it is front yard, he cannot build anything that extends past the front of the house. He does not feel that by doing this it would look out of place for the lot. He would like to build a 26 x 26 garage and asked who he could go to for approval. Fehst stated this has to go before the Planning Commission and he may have undue hardship, but it has to go through the process. Fehst invited Sierra to come in tomorrow and he can meet with the City Planner. Sierra also raised the issue of 44th and University being such a dangerous intersection and cars use the shoulder as a passing lane. Sierra asked what could be done. Fehst stated he would have the police department and the traffic commission look at this area. Peterson congratulated Council Member Williams on winning an award for his youth foundation. Peterson also called attention to a local resident by the name of Mimi Wiencke who is going to the Olympics in Sochi in 2014 for snowboarding. Since Americans have to pay their own way, there is City Council Meeting Minutes Monday,August 12,2013 Page 8 of 8 a fund raiser to help her raise money to get there. To show your support you can go to www.gofundme.com/mimiwiencke. Mayor Peterson asked to keep our service men and women in our thoughts and prayers and to do a random act of kindness. 10. ADJOURNMENT Mayor Peterson adjourned the meeting at 8:44 PM. Tori onhar City Clerk/Council Secretary