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HomeMy WebLinkAbout10-26-2015OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING OCTOBER 26, 2015 The following are the minutes for the regular meeting of the City Council held at 7:00 PM on MONDAY October 26, 2015 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota 1. CALL TO ORDER Mayor Peterson called the meeting to order at 7:02 p.m. 2. ROLL CALL Present: Mayor Peterson, Councilmembers Nawrocki, Schmitt, Williams and Murzyn, Jr. Also Present: Walt Fehst; City Manager, Jim Hoeft; City Attorney, John Larkin; Assistant Fire Chief, Joseph Kloiber; Finance Director, Kelli Bourgeois; HR Director /Assistant to the City Manager; Renee Dougherty, Library Director; Brianna Belanger, Children's Librarian; Joe Hogeboom; Community Development Director, Katie Bruno; City Clerk /Council Secretary 3. INVOCATION Invocation provided by Sam Snyder, Bethel Christian Fellowship 4. PLEDGE OF ALLEGIANCE Recited S. 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.) Mayor Peterson announced item 8B will be removed, as the property has been brought into compliance. 6. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS A. Introduction of Brianna Belanger, Children's Librarian. Renee Dougherty introduced Brianna Belanger, reporting she began her employment on October 19th Mayor Peterson announced there will be Press Conference on October 29, 2015 at 2:00 PM, regarding the proposal of a new Peace Park in the community. 7. 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 City Council MOTION: Move to approve the minutes of the City Council meeting of October 12, 2015 B. Accept Board and Commission Meeting Minutes. *Removed for discussion MOTION: Move to accept the July 15, 2015 Charter Commission Minutes MOTION: Move to accept the September 2, 2015 Library Board Minutes C. Consideration of approval of attached list of rental housing applications. MOTION: Move to approve the items listed for rental housing license applications for October 26, 2015, in that they have met the requirements of the Property Maintenance Code. D. Adopt Resolution 2015 -87, being a resolution of the City Council for the City of Columbia Heights, Minnesota, amending the 2015 budget for Cable Television Fund 225. MOTION: Move to waive the reading of Resolution 2015 -87, there being ample copies available for the public. MOTION: Move to adopt Resolution 2015 -87, being a resolution of the City Council for the City of Columbia Heights, Minnesota, amending the 2015 budget for Cable Television Fund 225. E. Adopt Resolution 2015 -88, being a resolution of the City Council for the City of Columbia Heights, Minnesota, amending Resolution 2015 -39 as it pertains to the Facility Supervisor Wage. *Removed for discussion F. Approve Business License Applications. *Removed for discussion G. 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 158655 through 158830 in the amount of $ 1,031,614.19 Councilmember Nawrocki requested that items B, E and F be removed from the Consent Agenda for discussion. Motion by Councilmember Murzyn Jr., seconded by Councilmember Nawrocki to approve Consent Agenda items A, C, D and G. All Ayes, Motion Carried. Councilmember Nawrocki requested that the following items be removed from the Consent Agenda for discussion: B. Accept Board and Commission Meeting Minutes MOTION: Move to accept the July 15, 2015 Charter Commission Minutes MOTION: Move to accept the September 2, 2015 Library Board Minutes Councilmember Nawrocki announced the Charter Commission is reviewing the Charter, section by section, and are currently discussing franchises. Residents were encouraged to contact Mr. Nawrocki with questions regarding the city's franchise agreements. Councilmember Nawrocki asked for clarification of the donation tiers referenced in the library board meeting minutes. City Manager Fehst gave an explanation of the varied amounts, explaining the Library Foundation will have opportunities available for both businesses and individuals to make donations. Motion by Councilmember Nawrocki, seconded by Councilmember Williams to accept the Board & Commission minutes from the Charter Commission and the Library Board meetings. All Ayes, Motion Carried, E. Adopt Resolution 2015 -88, being a resolution of the City Council for the City of Columbia Heights, Minnesota, amending Resolution 2015 -39 as it pertains to the Facility Supervisor Wage. Councilmember Nawrocki questioned why we have had low interest in this position. Kelli Bourgeois, Human Resource Director /Assistant to the City Manager speculated that it could be due to the fact that the school district hires for similar positions, and pay a higher rate. Another factor may be the job responsibilities associated with the job. Councilmember Schmitt commented that because of the job responsibilities, the new wages are appropriate, and is hoping this will help. Motion by Nawrocki, seconded by Schmitt to waive the reading of revised Resolution 2015 -88, there being ample copies available for the public. All Ayes, Motion Carried. Motion by Nawrocki, seconded by Murzyn, Jr. to adopt revised Resolution 2015 -88, being a resolution of the City Council for the City of Columbia Heights, Minnesota, amending Resolution 2015 -39 as it pertains to the Facility Supervisor Wage. All Ayes, Motion Carried. F. Approve Business License Applications Councilmember Nawrocki questioned what the signed waiver referenced consists of. Community Development Director Joe Hogeboom explained some of the information contained on the waiver may be private, and for that reason they are not included in the council packet. Mr. Hogeboom stated he will provide more information on the waiver in the upcoming Green Sheet. Motion by Schmitt, seconded by Murzyn, Jr. to approve the items as listed on the business license agenda for October 26, 2015. All Ayes, Motion Carried. 8. PUBLIC HEARINGS A. Consideration of Declaration of a nuisance and abatement of violations within the city of Columbia Heights is requested regarding the property at 160137th Avenue NE for failure to meet the requirements of the Residential Maintenance Code. Assistant Fire Chief John Larkin explained the property owner has failed to make repairs as required pursuant to the property maintenance code. Motion by Councilmember Murzyn, Jr., seconded by Councilmember Williams to close the public hearing and to waive the reading of Resolution Number 2015 -84, there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Murzyn, Jr., seconded by Councilmember Williams to adopt Resolution Number 2015 -84 being resolution of the City Council of the city of Columbia Heights declaring the property listed a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. All Ayes, Motion Carried. Councilmember Schmitt noted the wording on the council letter should be changed to Property Maintenance Code, rather than Residential Maintenance Code in the future. C. Resolution 2015 -86 adopting a housing program with respect to a multifamily senior housing project; granting preliminary approval for the issuance of multifamily housing revenue bonds to finance the project under Minnesota statutes, chapter 462c, as amended; and authorizing the reimbursement of expenditures made in anticipation of the issuance of such bonds Finance Director Joe Kloiber reported the redeveloper, Dominium, has requested that the City assist them with certain project financing by issuing conduit revenue bonds on their behalf for this project, in the event the developer would default on the bonds, the City's bond credit rating would not be affected. The agreement(s) associated with the proposed bonds require the redeveloper to reimburse the City for the costs to issue the bonds and to pay the City an administrative fee. Councilmember Schmitt questioned if there are minimum income requirements for potential residents. John Utley, Kennedy & Graven explained there is no minimum in the legal requirements, noting the developer may have their own income requirements. Councilmember Schmitt questioned if there fees associated with the transaction. Director Kloiber explained all fees are covered under the agreement; the contract lists a 1% fee upfront, and no annual fee. Councilmember Nawrocki asked what the impact of this outstanding debt could have on the City's credit rating. Director Kloiber explained this is not the type of debt that counts towards statutory debt limit, and it does not count towards the rating. John Utley confirmed the rating agencies do not take these in account when establishing a rating. Motion by Councilmember Williams, seconded by Councilmember Schmitt to close the public hearing and waive the reading of Resolution 2015 -86, there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Williams, seconded by Councilmember Schmitt to adopt Resolution 2015 -86, being a resolution adopting a housing program with respect to a multifamily senior housing project; granting preliminary approval for the issuance of multifamily housing revenue bonds to finance the project under Minnesota statutes, chapter 462c, as amended; and authorizing the reimbursement of expenditures made in anticipation of the issuance of such bonds. All Ayes, Motion Carried. 9. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions B. Bid Considerations C. New Business and Reports 10. ADMINISTRATIVE REPORTS Report of the City Manager City Manager Fehst reported the library construction continues to be on schedule. Fehst commented that there has been a lot going on in the City this year, including; the new library, the new splash pad, LaBelle Park, and the upcoming Dominium project. Councilmember Nawrocki asked if significant donations are made to the library, if it could be used to reduce the portion being paid by the City. Manager Fehst explained these items are outside of the budget the council set. Councilmember Nawrocki reported that he recently received a notice from the rubbish collector, he noted there was no address on the notice, nor was it attached to his can. Manager Fehst said he will follow -up. Report of the City Attorney Mr. Hoeft had nothing report. 11. 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. Mayor Peterson reminded all to remember our service men and women, our police and firefighters, and to do a random act of kindness. Meeting adjourned at 7:58 p.m. ahL &U&U_ Respectively Submitted, Katie Bruno, Council Secretary /City Clerk RESOLUTION NO. 2015 -84 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 David Roberts (Hereinafter "Owner of Record "). Whereas, the owner of record is the legal owner of the real property located at 160137 th 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 August 3, 2015. 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 I. That on July 30, 2015, 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. 2. That on September 1, 2015, inspectors re- inspected 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 September 23, 2015, inspectors re- inspected the property and found that violations remained uncorrected. 4. That based upon said records of the Fire Department, the following condition 5. ns and violations of City Codes(s) were found to exist, to wit: A. Shall fix peeling paint around windows, trim, fascia, and sign out front. B. Shall repair /replace deteriorated paved area on west side of property. 6. 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(6). CONCLUSIONS OF COUNCIL 1. That the property located at 1601 37th 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. 1. The property located at 160137 th 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. RESOLUTION NO. 2015 -86 ADOPTING A HOUSING PROGRAM WITH RESPECT TO A MULTIFAMILY SENIOR HOUSING PROJECT; GRANTING PRELIMINARY APPROVAL FOR THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS TO FINANCE THE PROJECT UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED; AND AUTHORIZING THE REIMBURSEMENT OF EXPENDITURES MADE IN ANTICIPATION OF THE ISSUANCE OF SUCH BONDS BE IT RESOLVED by the City Council of the City of Columbia Heights, Minnesota (the "City "), as follows: Section 1. Recitals. 1.01. The City is a home rule charter city duly organized and existing under the Constitution and laws of the State of Minnesota. 1.02. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Housing Act "), the City is authorized to carry out the public purposes described in the Housing Act by providing for the issuance of revenue bonds or other obligations to finance or refinance multifamily housing developments, including multifamily senior housing developments, located within the City. As a condition to the issuance of revenue bonds under the Housing Act, the City must adopt a housing program providing the information required by Section 462C.03, subdivision 1a of the Housing Act (the "Housing Program "). A public hearing must be held in accordance with the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code "), and regulations promulgated thereunder (the "Regulations "), and the requirements of the Housing Act. The City Council of the City (the "Council") must also grant preliminary approval to the issuance of revenue bonds to finance the multifamily senior housing development referred to in the Housing Program, and authorize the submission of an application to Minnesota Management & Budget for an allocation of bonding authority with respect to the Bonds (as hereinafter defined) to finance the Project (as hereinafter defined). 1.03. Columbia Heights Leased Housing Associates I, LLLP, a Minnesota limited liability limited partnership (the "Borrower "), has proposed that the City, pursuant to the Housing Act, issue its revenue bonds in an aggregate principal amount not to exceed $32,000,000, in one or more series (the "Bonds "), the proceeds of which will be loaned by the City to the Borrower. The Borrower will apply the proceeds of such loan to: (i) the acquisition, construction, and equipping of a multifamily senior housing facility comprised of 191 affordable independent - living rental apartments to be located in a four -story building, together with related common amenity spaces over one floor of underground parking, including a party room, theatre, fitness center, cards /crafts room, salon, library and a landscaped patio, to be located at 3700 5`" Street NE in the City (the "Project "); (ii) the funding of one or more reserve funds to secure the timely payment of the Bonds; (iii) the payment of interest on the Bonds during the construction of the Project; and (iv) the payment of the costs of issuing the Bonds. 1.04. Under Section 147(f) of the Code, prior to the issuance of the Bonds a public hearing duly noticed must be held by the Council. Under Section 462C.04, subdivision 2 of the Act, a public hearing must be held on each housing program after one publication of notice in a newspaper circulating generally in the City, at least fifteen days before the hearing. 1.05. Under Section 146 of the Code, the Bonds must receive an allocation of the bonding authority of the State of Minnesota. An application for such an allocation must be made pursuant to the requirements of Minnesota Statutes, Chapter 474A, as amended (the "Allocation Act "). Section 2. Preliminary Findings. Based on representations made by the Borrower to the City to date, the Council hereby makes the following preliminary findings, determinations, and declarations: (a) The Project consists of a housing development designed and intended to be used for rental occupancy. (b) The proceeds of the Bonds will be loaned to the Borrower and the proceeds of the loan will be applied to: (i) the acquisition, construction, and equipping of the Project; (ii) the funding of one or more reserve funds to secure the timely payment of the Bonds; (iii) the payment of interest on the Bonds during the construction of the Project; and (iv) the payment of the costs of issuing the Bonds. The City will enter into a loan agreement (or other revenue agreement) with the Borrower requiring loan repayments from the Borrower in amounts sufficient to repay the loan when due and requiring the Borrower to pay all costs of maintaining and insuring the Project, including taxes thereon. (c) In preliminarily authorizing the issuance of the Bonds and the financing of the acquisition, construction, and equipping of the Project and related costs, the City's purpose is and the effect thereof will be to promote the public welfare of the City and its residents by retaining and improving multifamily housing developments and otherwise furthering the purposes and policies of the Housing Act. (d) The Bonds will be limited obligations of the City payable solely from the revenues pledged to the payment thereof, and will not be a general or moral obligation of the City and will not be secured by or payable from revenues derived from any exercise of the taxing powers of the City. Section 4. Public Hearing. On October 26, 2015, the City conducted a public hearing on the Housing Program, the Project, and the issuance of revenue obligations by the City, notice of which hearing (the "Public Notice ") was published as required by Minnesota Statutes, Section 462C.04, subdivision 2 of the Housing Act, and as required by Section 147(f) of the Code and applicable Regulations promulgated thereunder. The Public Notice provided a general, functional description of the Project, as well as the maximum aggregate face amount of the obligations to be issued for the purposes referenced above, the identity of the initial owner, operator, or manager of the Project, and the location of the Project. The Public Notice was published in the Sun Focus, the official newspaper and a newspaper circulating generally in the City, on October 9, 2015, a date at least 15 days before the meeting of the Council on October 26, 2015. At the public hearing a reasonable opportunity was provided for interested individuals to express their views, both orally and in writing, on the Project and the proposed issuance of revenue obligations. Section 5. Housing Program. Bond counsel, as described below, prepared and submitted to the City a draft Housing Program to authorize the issuance by the City of up to $32,000,000 in revenue bonds to finance the acquisition, construction, and equipping of the Project by the Borrower The Housing Program was prepared and submitted to the Metropolitan Council for its review on or before the date of publication of the Public Notice. Section 6. Preliminary Approval. The Council hereby provides preliminary approval to the issuance of the Bonds in the approximate aggregate principal amount of $32,000,000 to finance all or a portion of the costs of the Project pursuant to the Housing Program of the City, subject to: (i) review of the Housing Program by the Metropolitan Council; (ii) receipt of an allocation of the bonding authority from the State of Minnesota; (iii) final approval following the preparation of bond documents; and (iv) final determination by the Council that the financing of the Project and the issuance of the Bonds are in the best interests of the City. Section 7. Submission of an Application for an Allocation of Bonding Authority. Under Section 146 of the Code, the Bonds must receive an allocation of the bonding authority of the State of Minnesota. An application for such an allocation must be made pursuant to the requirements of the Allocation Act. The Council hereby authorizes the submission of an application for allocation of bonding authority pursuant to Section 146 of the Code and the Allocation Act in accordance with the requirements of the Allocation Act. The Mayor of the City, the City Manager, and Kennedy & Graven, Chartered, acting as bond counsel of the City with respect to the Project and the Bonds, are hereby authorized and directed to take all actions, in cooperation with the Borrower, as are necessary to submit an application for an allocation of bonding authority to Minnesota Management & Budget. Section 8. Reimbursement of Costs under the Code. 8.1. The United States Department of the Treasury promulgated by Section 1.150 -2 of the Regulations, which governs the use of the proceeds of tax - exempt bonds, all or a portion of which are to be used to reimburse the City or the Borrower for project expenditures paid prior to the date of issuance of such bonds. Section 1.150 -2 of the Regulations requires that the City adopt a statement of official intent to reimburse an original expenditure not later than sixty (60) days after payment of the original expenditure. Section 1.150 -2 of the Regulations also generally requires that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds occur within eighteen (18) months after the later of: (i) the date the expenditure is paid; or (ii) the date the project is placed in service or abandoned, but in no event more than three (3) years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. 8.2. To the extent any portion of the proceeds of the Bonds will be applied to expenditures with respect to the Project, the City reasonably expects to reimburse the Borrower for the expenditures made for costs of the Project from the proceeds of the Bonds after the date of payment of all or a portion of such expenditures. All reimbursed expenditures shall be capital expenditures, a cost of issuance of the Bonds, or other expenditures eligible for reimbursement under Section 1.150- 2(d)(3) of the Regulations and also qualifying expenditures under the Housing Act. Based on representations by the Borrower, other than (i) expenditures to be paid or reimbursed from sources other than the Bonds, (ii) expenditures permitted to be reimbursed under prior regulations pursuant to the transitional provision contained in Section 1.150- 2(j)(2)(i)(B) of the Regulations, (iii) expenditures constituting preliminary expenditures within the meaning of Section 1.150- 2(f)(2) of the Regulations, or (iv) expenditures in a "de minimus" amount (as defined in Section 1.150- 2(f)(1) of the Regulations), no expenditures with respect to the Project to be reimbursed with the proceeds of the Bonds have been made by the Borrower more than sixty (60) days before the date of adoption of this resolution of the City. 8.3. Based on representations by the Borrower, as of the date hereof, there are no funds of the Borrower reserved, allocated on a long term -basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long -term basis or otherwise set aside) to provide permanent financing for the expenditures related to the Project to be financed from proceeds of the Bonds, other than pursuant to the issuance of the Bonds. This resolution, therefore, is determined to be consistent with the budgetary and financial circumstances of the Borrower as they exist or are reasonably foreseeable on the date hereof. Section 9. Costs. The Borrower will pay the administrative fees of the City and pay, or, upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with the Project and the issuance of the Bonds, whether or not the Bonds are issued. Section 10. Commitment Conditional. The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the Bonds as requested by the Borrower. If, as a result of information made available to or obtained by the City during its review of the Project, it appears that the Project or the issuance of Bonds to finance or refinance the costs thereof is not in the public interest or is inconsistent with the purposes of the Housing Act, the City reserves the right to decline to give final approval to the issuance of the Bonds. The City also retains the right, in its sole discretion, to withdraw from participation and accordingly not issue the Bonds should the Council, at any time prior to the issuance thereof, determine that it is in the best interests of the City not to issue the Bonds or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents for the transaction. Section 11. Effective Date. This Resolution shall be in full force and effect from and after its passage. RESOLUTION NO. 2015 -87 A resolution of the City Council for the City of Columbia Heights, Minnesota, amending the 2015 budget for Cable Television Fund 225. Whereas, on December 8t" 2014, the City Council adopted an initial 2015 budget for Cable Television Fund 225 by resolution 2014- 91; and Whereas, the City as franchisor, subsequently negotiated and collected a total of $22,500 in additional 2015 revenue from two cable television franchisees to fund legal costs of the City attributable to administrative actions requested by the franchisees; and Whereas, the expenditure of this additional revenue was not included in initial 2015 budget; Now, therefore, in accordance with all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: IT IS HEREBY RESOLVED, that the 2015 budget for Cable Television Fund 225 is amended for an increase of $22,500 in both revenue and expenditures. RESOLUTION NO. 2015 -88 A resolution of the City Council for the City of Columbia Heights, Minnesota, amending Schedule III of Resolution 2015 -39, Facility Supervisor wage rate. Whereas, on May 11, 2015, the City Council approved Resolution 2015 -39 establishing wages for seasonal /temporary recreation and other positions including the position of Facility Supervisor; and Whereas, the City has been trying to fill vacant part time Facility Supervisor positions since February, 2015 and has not received adequate applications for the positions; and Whereas, the lack of staffing has caused the City to have to reduce open gym hours at the Highlander Center. Now, therefore, in accordance with all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: ORDER OF COUNCIL IT IS HEREBY RESOLVED, that Schedule III of Resolution 2015 -39 is hereby amended to establish the wage range for the Facility Supervisor as follows effective November 1, 2015: ENTRY 6 MONTH 1 YEAR 2 YEARS $12.41 $13.03 $13.65 $14.27 3 YEARS 4 YEARS $14.89 $15.51