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HomeMy WebLinkAbout08-14-2017 CCPColumbia Heights *Americo City 1 r 2016 1. CALL TO ORDER /ROLL CALL 2. INVOCATION CH COLUMBIA HEIGHTS www.columbiaheightsmn.gov AGENDA CITY COUNCIL MEETING CITY HALL - COUNCIL CHAMBERS 590 40th AVE NE MONDAY, AUGUST 14, 2017 7:00 PM Invocation provided by Bob Lyndes, Crest View 3. PLEDGE OF ALLEGIANCE Mayor Donna Schmitt Councilmembers Robert Williams John Murzyn, Jr. Connie Buesgens Nick Novitsky City Manager Walter R. Fehst 4. MISSION STATEMENT Our mission is to provide the highest quality public services. Services will be provided in a fair, respectful and professional manner that effectively address changing citizen and community needs in a fiscally - responsible and customer friendly manner. S. APPROVAL OF AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda.) 6. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS A. Acknowledgement and introduction of Teen Volunteers at the Library B. Update from Sister Cities 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 July 24, 2017 pg 4 MOTION: Move to approve the minutes of the City Council work session of August 7, 2017 pg 10 MOTION: Move to approve the minutes of the City Council work session of July 19, 2017 pg 13 B. Accept Board and Commission Meeting Minutes MOTION: Move to accept the Park & Recreation commission minutes from May 24, 2017 pg 14 MOTION: Move to accept the Library Board minutes from July 5, 2017 pg 21 MOTION: Move to accept the EDA commission minutes from June 5, 2017 pg 23 MOTION: Move to accept the EDA commission minutes from June 12, 2017 pg 36 MOTION: Move to accept the EDA commission minutes from July 10, 2017 pg 41 MOTION: Move to accept the HRA commission minutes from February 13, 2017 pg 56 C. City Hall Master Plan pg 68 MOTION: Move to authorize staff to prepare a City Hall Master Plan. D. Establish date for 2017 Public Special Assessment Levy Hearing for: Seal Coat, Street pg 69 Rehabilitation, MSAS Mill & Overlay, Petition and Waiver, and Delinquent Accounts MOTION: Move to establish Monday, October 2, 2017 at 6:00 p.m. as the Public Special Assessment Levy Hearing for City Project #1601 Zone 1 Seal Coat, to be held in the City Council Chambers. MOTION: Move to establish Monday, October 2, 2017 at 6:15 p.m. as the Public Special Assessment Levy Hearing for City Project #1705 M.S.A.S. Mill & Overlay, to be held in the City Council Chambers. MOTION: Move to establish Monday, October 2, 2017 at 6:30 p.m. as the Public Special Assessment Levy Hearing for Delinquent Accounts, to be held in the City Council Chambers. E. Keyes Park Final Plans pg 70 MOTION: Move to approve the final Plans and Specifications and order Advertisement for Bids for Keyes Park Improvements, City Project 1610. F. Refuse Cart Purchase pg 72 MOTION: Move to approve the purchase of 12,836 carts from Advanced Disposal Services at a price of $10.00 each, with funding from the Refuse Fund 603. MOTION: Move to amend the 2017 Refuse Fund Budget authorizing the expenditure of $128,360 from fund balance to purchase the carts. G. Authorization to seek bids for 2017 Sanitary Sewer Pipe Lining Project pg 75 MOTION: Move to authorize staff to seek bids for the 2017 Sanitary Sewer Pipe Lining Project. H. Approve Business License Applications pg 77 MOTION: Move to approve the items as listed on the business license agenda for August 14, 2017. I. Payment of Bills pg 79 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 166714 through 167028 in the amount of $4,911,606.44. MOTION: Move to approve the Consent Agenda items. 8. PUBLIC HEARINGS A. Repeat Nuisance Call Service Fee Appeal pg 91 MOTION: Motion to uphold the $250 Nuisance Call for Service Fee imposed on Ken Hertz, owner of 9403 91h Avenue NE. 9. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions B. Bid Considerations C. New Business and Reports 10. CITY COUNCIL AND ADMINISTRATIVE REPORTS Report of the City Council Report of the City Manager Report of the City Attorney 11. COMMUNITY FORUM At this time, individuals may address the City Council about any item not included on the regular agenda. Speakers are requested to come to the podium, sign their name and address on the form for the Council Secretary's record, and limit their comments to five minutes. Individuals are asked to state their name for the record. The City Council will listen to the brief remarks, ask clarifying questions, and if needed, request staff to follow up or direct the matter to be added to an upcoming agenda. Generally, the City Council will not take official action on items raised at the Community Forum at the meeting in which they are raised. 12. ADJOURNMENT Walt Fehst, City Manager Auxiliary aids or other accommodations for disabled persons are available upon request when the request is made at least 48 hours in advance. Please contact the City Clerk at 763 - 706 -3611 or kbrunopcolumbiaheightsmn.gov, to make arrangements. OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING JULY 24, 2017 The following are the minutes for the regular meeting of the City Council held at 7:00 PM on Monday July 24, 2017 in the City Council Chambers, City Hall, 590 40th Ave. N.E., Columbia Heights, Minnesota 1. CALL TO ORDER Mayor Schmitt called the meeting to order at 7:02 p.m. 2. ROLL CALL Present: Mayor Schmitt, Councilmember Williams, Councilmember Murzyn, Jr., Councilmember Buesgens and Councilmember Novitsky Also Present: Walt Fehst; City Manager, Jim Hoeft; City Attorney, Joe Kloiber; Finance Director, Jackie Zillmer; Assistant Finance Director, Kathy Young; Assistant City Engineer, John Larkin; Assistant Fire Chief, and Katie Bruno; City Clerk /Council Secretary 3. INVOCATION Invocation provided by Rachel James, First Lutheran Church 4. PLEDGE OF ALLEGIANCE 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 Schmitt announced a change in the order of the announcement sections, and the addition of item 6C, Lee Carlson Center - Bridgeview Summer Luau announcement. 6. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS A. Presentation of the GFOA Certificate of Achievement for Excellence in Financial Reporting Sue Birnig, State Representative for the GFOA Association congratulated the City for receiving this award since 1990. Jackie Zillmer accepted the award on behalf of the city. B. Proclamation announcing Tuesday, August 1St as National Night Out in the City of Columbia Heights Sergeant Andy Museus reported in 2016 there were 52 block parties, with over 1600 participants. Police officers attend every party, and speak to residents about pertinent topics. Officer Justin Pletcher announced a reception is planned for Police Chief Scott Nadeau on Thursday, July 27th from 2:30 -4:00. Officer Pletcher reported that Chief Nadeau has been instrumental in steering the police department in a positive direction, and assured the council that the department will continue to do so. C. Announcement of the (Lee Carlson Center) Bridgeview Summer Luau Maria Davis announced the Lee Carlson Center will be hosting an event taking place on Wednesday, July 26tH D. 2016 Summary Financial Information presented by auditor. City Council Minutes July 24, 2017 Page 2 of 6 Dave Mol, representing Redpath and Company gave an overview of the 2016 Audit Review, indicating a "Clean Opinion" was issued. Councilmember Williams thanked Mr. Mol, and the Finance Director for their diligence. Mayor Schmitt questioned an item related to the sale of Park View Villa, and the HRA's obligation to HUD. Finance Director Kloiber explained the HRA entered into the grant contract with HUD, and as a condition of letting the HRA out of the agreement, HUD expects the HRA to pay them. Councilmember Williams was pleased to seethe revenues increase in the liquor operations. Kloiber indicated competition has seemed to stabilize. 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.) Mayor Schmitt requested the item E be removed for discussion A. Approve Minutes of the City Council MOTION: Move to approve the minutes of the City Council meeting of July 10, 2017 MOTION: Move to approve the minutes of the City Council work session of July 10, 2017 B. Accept Board and Commission Meeting Minutes MOTION: Move to accept the Charter Commission meeting minutes from April 20, 2017 C. Appoint Councilmember Novitsky to the HRA MOTION: Move to approve the mayor's appointment of Councilmember Nick Novitsky to the vacant HRA position. D. Accept bids and award Contract for Central Avenue Safety Improvements, Columbia Heights Project No. 1608 and MN Project No. HSIP 0217(146) MOTION: Move to waive the reading of Resolution 2017 -82, there being ample copies available to the public. MOTION: Move to adopt Resolution 2017 -82 being a resolution accepting bids and awarding the Central Avenue HSIP Safety Improvements, City Project No. 1608 and MN Project No. HSIP 0217(146), to Thomas and Sons of Rogers, Minnesota, based upon their low, qualified, responsible bid in the amount of $946,246.62 from Fund 402 - 51608 -5185; and, furthermore, to authorize the Mayor and City Manager to enter into a contract for the same. E. Approve Resolution for Point Source Implementation Grant Program (PSIG) Application *Removed for Discussion. F. Consideration of approval of attached list of rental housing applications. MOTION: Move to approve the items listed for rental housing license applications for July 24, 2017, in that they have met the requirements of the Property Maintenance Code G. Approve Business License Applications MOTION: Move to approve the items as listed on the business license agenda for July 24, 2017 H. 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 166532 through 166713 in the amount of $1,110,276.23. City Council Minutes July 24, 2017 Page 3 of 6 Motion by Councilmember Williams, seconded by Councilmember Murzyn, Jr. to approve the Consent Agenda items A, B, C, D, F, G, and H. All Ayes, Motion Carried. The following item was removed for discussion: E. Approve Resolution for Point Source Implementation Grant Program (PSIG) Application Kathy Young, Assistant City Engineer explained the City has been trying to obtain funding to reconstruct this pond for a couple of years. This grant funding would be used strictly for the pond. Mayor Schmitt asked if the Rice Creek Watershed was contacted for assistance. Young indicated a $50,000 grant was previously awarded, and believes that will be available. Motion by Councilmember Buesgens, seconded by Councilmember Williams to waive the reading of Resolution 2017 -83, there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Murzyn, Jr., seconded by Councilmember Williams to adopt Resolution 2017 -83 being a resolution authorizing the Public Works Director to submit an application to the Minnesota Public Facilities Authority for eligible funds for the reconstruction of the storm water pond at the Silver Lake Boat Landing. 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 4320 7th Street NE for failure to meet the requirements of the Residential Maintenance Code. Assistant Fire Chief John Larkin reported the homeowner has been notified about their broken garage door and have not responded. The City will make one additional attempt to contact the owner, and if necessary hire a contractor to repair the garage door. Motion by Councilmember Williams, seconded by Councilmember Murzyn, Jr. to close the public hearing and to waive the reading of Resolution Number 2017 -80, there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Williams, seconded by Councilmember Buesgens to adopt Resolution Number 2017 -80, 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. 9. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions B. Bid Considerations C. New Business and Reports 10. ADMINISTRATIVE REPORTS Councilmember Buesgens attended an open house hosted by Dominium, the HeightsNext party; celebrating a merger with the Farmers Market, the MN DOT informational meeting for the University Ave project, a Metro Council committee meeting, the HeightNext garden tour and the Charter Commission meeting. The Charter City Council Minutes July 24, 2017 Page 4 of 6 commission discussed extending the Mayoral term, and the Mayor's authority over the police department. Both items will continue to be discussed at the October Meeting. Councilmember Williams thanked the Council, Staff and Community for their support following the recent passing of his son, Steve. Councilmember Novitsky attended the open house hosted by Dominium and a Lee Carlson wellness event at Community Grounds. Novitsky reported the Lion's have adopted Keyes Park. Mayor Schmitt attended the MWMO bi- monthly meeting; they are considering doing some on -site water storage near their east side maintenance facility in Minneapolis. Schmitt suggested Columbia Heights may want to use some of their ideas. The MWMO annual retreat was attended. Speakers included a representative from the Governor's Alliance on Race and Equity. The Mayor reported Lenny Austin has been appointed to the Interim Police Chief, effective July 27, 2017. The Mayor has met with both Chief Nadeau and Captain Austin to discuss the transition period. City Manager Walt Fehst reported that SACA (Southern Anoka County Assistance) has obtained an "Open your Hearts to Hungry" challenge grant. Matching donations will help to provide for fresh produce to be available. Crest View Communities have invited City Officials to a picnic on Thursday, July 27th from 12:00 -3:00 P.M. 11. CITIZENS FORUM 12. ADJOURNMENT Motion by Councilmember Murzyn, Jr., seconded by Councilmember Williams to adjourn. All Ayes, Motion Carried. Meeting adjourned at 7:52 p.m. Respectively Submitted, Katie Bruno, Council Secretary /City Clerk RESOLUTION NO. 2017 -80 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 Nyjibi Ojuway (Hereinafter "Owner of Record ") Whereas, the owner of record is the legal owner of the real property located at 4320 7th Street N.E., 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 June 9, 2017. 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: City Council Minutes July 24, 2017 Page 5 of 6 FINDINGS OF FACT 1. That on May 9, 2017, 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 June 9, 2017, 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 July 12, 2017, inspectors re- inspected 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 south garage door to close completely. 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 4320 7th Street N.E. 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. RESOLUTION NO. 2017 -82 A resolution of the City Council for the City of Columbia Heights, Minnesota, WHEREAS, pursuant to an advertisement for bids for City Project No. 1608 and MN Project No. HSIP 0217(146), Central Avenue Safety Improvements, bids were received, opened and tabulated according to law. Now therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of Columbia Heights makes the following: FINDINGS OF FACT The following bids were received complying with the advertisement: Bidder Base Bid Thomas & Sons Construction, Inc. $ 946,246.62 (Corrected) Meyer Contracting $1,058,156.20 L.S. Black Constructors $1,153,974.28 Urban Companies $1,211,840.75 Pember Companies, Inc. $1,214,563.90 8 City Council Minutes July 24, 2017 Page 6of6 It appears that Thomas and Sons, 13925 Northdale Boulevard, Rogers, Minnesota is the lowest responsible bidder. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA The Mayor and City Manager are hereby authorized and directed to enter into a contract with Thomas and Sons Construction, Inc., in the name of the City of Columbia Heights, for the Central Avenue Safety Improvements, City Project No. 1608 and MN Project No. HSIP 0217(146), for a bid amount of $946,246.62 according to plans and specifications therefore approved by the Council. 2. The City Engineer is hereby authorized and directed to retain the deposit of the successful bidder and the next lowest bidder until the contract has been signed. City Project No. 1608 shall be funded from Fund 402 - 51608 -5185. RESOLUTION NO. 2017 -83 A resolution of the City Council for the City of Columbia Heights, Minnesota, supporting submission of a Point Source Implementation Grant (PSIG) application to the Minnesota Public Facilities Authority (PFA) for Silver Lake Boat Landing Pond reconstruction, WHEREAS, the City Council of the City of Columbia Heights is the official governing body; and WHEREAS, the Point Source Implementation Program, established in Minnesota Statutes 446A.073, as amended provides funds for construction projects; and WHEREAS, the City of Columbia Heights is hereby applying to the Minnesota Public Facilities Authority for funds to be used for eligible costs for the Silver Lake Boat Landing Pond reconstruction. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of Columbia Heights makes the following: FINDINGS OF FACT 1. The City of Columbia Heights has the legal authority to apply for the grant, and the financial, technical, and managerial capacity to ensure proper construction, operation and maintenance of the project for its design life. 2. That upon approval of its application by the PFA, the City of Columbia Heights may enter into an agreement with the PFA for the above - referenced project, and that the City of Columbia Heights certifies that it will comply with all applicable laws and regulations as stated in all contract agreements described in the Compliance listing of the grant application. 3. The Mayor and City Manager, or their successors in office, are hereby authorized to execute such agreements, and amendments thereto, as are necessary to implement the above project on behalf of the City of Columbia Heights. 4. The Council adopts this Resolution in support of the request for PSIG funds for the Silver Lake Boat Landing Pond reconstruction. 5. That a copy of this Resolution be provided to the PFA as part of the PSIG application. Meeting of: COLUMBIA HEIGHTS CITY COUNCIL Date of Meeting: August 7, 2017 Time of Meeting: 7:00 PM (Following the EDA Meeting) Location of Meeting: Conference Room #1 Purpose of Meeting: WORKSESSION CALL TO ORDER /ROLL CALL - The meeting was called to order at 7:22 PM Present: Mayor Schmitt, Councilmembers Murzyn Jr., Buesgens and Novitsky Also Present: Kelli Bourgeois; Human Resource Director /Assistant to the City Manager, Kevin Hansen; Public Works Director, Joe Hogeboom; Community Development Director, and Katie Bruno; City Clerk Report from Goff Public, Communication Audit Sara Thatcher gave an overview of the recently completed Communication Audit. The recommendations include hiring a communications coordinator, implementing a crisis communication plan, consolidating the current eight social media accounts, broadening the content on the City's cable channel, modernizing the city newsletter, continuing to hold community engagement events and provide translation services; especially in the area of community events and recreation brochures. Mayor Schmitt questioned if the communication coordinator would be one full time position. Kelli Bourgeois indicated the 2018 proposed budget includes one full time employee, who would work flexible hours. Frost Simula -1700 49th Ave NE commented that graphic design is complex because there is variety of media outlets on the city. Bourgeois indicated contracted services are included in the proposed 2018 budget. Adam Davis; producer of city meetings indicated there are issues with the cable access channel. Davis questioned if his current position could be upgraded to the communications coordinator position. Bourgeois clarified this is a full -time benefited position, being open to all applicants. Mayor Schmitt expressed concern with a new person learning the systems. Bourgeois indicated we have outside support options. Councilmember Novitsky asked how much time per week is devoted to meeting production. Bourgeois indicated the budget allows for up to 14 hours per week. Schmitt stated she would like to discuss this position more during the budget meetings. Incident update from Captain Austin Captain Austin reported the Anoka County CID (Criminal Investigations Division) is investigating a recent complaint of shots fired at 4439 2nd St. Police Department Information Meetings Captain Austin invited the council to participate in ride along's with the police department. Austin also reported that the Department is planning to host a 4 -6 week Council Academy this fall, and requested council submit various topics of interest. The council tentatively agreed Tuesday evening would work best, and suggested beginning September 19th DeWayne Morrell questioned if speed control actions can be utilized on Reservoir Blvd. Mayor Schmitt suggested Mr. Morrell contact Captain Austin at a separate time. Councilmember Novitsky and Buesgens suggested the Traffic Commission review the request, and explain the process related to speed control. Mayor Schmitt indicated she would like to schedule meetings with the Police Officers and Sergeants regarding the Police Chief recruitment. Councilmember Buesgens indicated she would like to think about this further, prior to scheduling the meetings. Schmitt indicated she intends to meet with both groups, and invited the council to particpate. Councilmember Murzyn, Jr. and Councilmember Novitsky indicated they would attend. The meetings were tentatively scheduled for October 5, 2017 at 6:30 and 7:30 PM at the Public Safety Building. 10 City Council Worksession August 7, 2017 Page 2 of 3 MN /DOT Economic Development Program Grant for Central Avenue Joe Hogeboom, Community Development Director reported MNDOT administers the "Transportation / Economic Development" grant program, or TED for short. TED funds up to $10 million per improvement project to a state highway. Staff has identified the area along Central Avenue, between 47th and 43rd Avenues, as an area that it would like to focus on for the grant, extending the safety improvement work that is planned to occur north of 47th Avenue further south into downtown Columbia Heights. The work, if funded, would likely include new sidewalks, street lighting, decorative concrete treatment to roadway medians, enhanced pedestrian crossing(s), enhanced bus facilities and potential minimal right -of -way acquisition. The TED grant provides for 70% of total project costs. The City may also consider burying the utility lines along Central Avenue. The Community Development Director and Economic Development Manager would coordinate the application material. Staff would like to utilize the engineering services of SEH. SEH was the selected professional service provider for the Central Avenue project north of 47th Avenue, and has the project history and ability to facilitate with the potential extension of the project to 43rd Avenue. SEH would provide a location map with surrounding businesses and conceptual layout drawings and typical section renderings that illustrate the proposed sidewalk, lighting and other enhancements. Also they would prepare a high level project cost estimate including a review of right of way needs and costs. SEH has submitted a proposal with a fee of $8,000. Mayor Schmitt questioned the timing of the project, noting University Ave. will be reconstructed in 2018. Public Works Director Kevin Hansen indicated the Central Ave project would not begin before 2019. Mayor Schmitt commented that she would like to see a bus shelter near the HyVee as well as additional benches along Central Ave. Authorization to seek bids Keyes Park Director of Public Works Kevin Hansen reported that the Park and Recreation Commission developed a Master Plan for Keyes Park. The Park Planning consulting firm of ISG prepared the Master Plan including many elements, staff is recommending the following elements: • Realigned athletic fields (2) • New playground • Reconfigured parking lots • Rain gardens /infiltration basins for water quality • Walking path from parking lot to facilities • 11. Site landscaping • 12. Preserve sliding hill • 13. Introduction of a soccer field (partial) The following are recommended as add alternate bids: • 6. Addition of a paved walking trail around entire park • 7. Sidewalk along the east side of McLeod from 44th to 45th Avenues Solar gardens subscription Director of Public Works Kevin Hansen reported the City of Columbia Heights has the opportunity to subscribe to a community solar garden through Xcel Energy's Solar Rewards Community Program. There are no costs to the City for subscribing. For each kWh that is subscribed, the City will receive a bill credit and a Renewable Energy Credit. The Solar Garden is being built and paid for by a Third Party Tax Investor. Because the City pays nothing for the Solar Garden or the subscription, they must buy the electricity that the Garden is producing from the owner of the actual Garden (the Third Party Tax Investor). The end result is that the City will receive a net profit of 1 cent for every kWh they subscribe for. Hansen indicated there are no capital costs; the only possible downside is the 25 year commitment. if City Council Worksession August 7, 2017 Page 3 of 3 Refuse cart purchase (garbage and recycling) Director of Public Works Kevin Hansen explained that by purchasing the refuse carts currently in use, the upcoming bidding process will be more consistent. De Wayne Morrell suggested residents be given the option to purchase their own carts. Hansen expressed concern with residents maintaining their own carts, as well as the potential injury to drivers. City Hall Master Plan Director of Public Works Kevin Hansen reported that in In 2014 staff contracted with Braun Intertec to perform a building envelope analysis of City Hall, considering the exterior masonry and windows. It identified over $640,000 of recommended repairs or mechanical replacements to the building. Staff has delayed any major investment in the building considering the age, condition and deficiencies of the current structure, and instead has focused only on keeping the building mechanical systems running. During the 2017 Council goal setting process, the replacement of the existing City Hall was discussed and a short -term objective was established to create a City Hall Master Plan. The creation of a Master Plan will take 4 -6 months and would involve: -Site Evaluation and Selection *Site Assessment and Site *Concept Layout Development *Develop preliminary building systems: *Develop a detailed cost estimate based on the preferred site. *Develop funding scenarios based on the detailed cost estimate. Hansen indicated it will take 4 -6 months to complete the analysis. Councilmember Murzyn, Jr. questioned the source of the funding, noting he would like to wait until the Liquor Store, Public Safety Center and the Library are paid off. Hansen indicated that bonding may not be necessary. Hansen commented that it would be beneficial to have the Master Plan completed prior to planning the financial aspects of the proposed project. Mayor Schmitt stated the current building needs to be maintained as necessary. Review of updated council documents Human Resource Director /Assistant to the City Manager Kelli Bourgeois distributed an updated Council Agenda and an updated Council Letter for the council to review. The members suggested using the updated forms at the upcoming meeting. Bourgeois stated she would pass that along to staff, noting it may take a couple of meetings for everyone to make the change. Bourgeois distributed a draft Council Handbook, requesting the council review the content and contact her with questions or suggestions. Adjournment Motion by Councilmember Murzyn, Jr., seconded by Councilmember Buesgens to adjourn the meeting. Meeting Adjourned at 10:06 PM Respectively Submitted, Katie Bruno, Council Secretary /City Clerk 12 Meeting of: COLUMBIA HEIGHTS CITY COUNCIL Date of Meeting: JULY 19, 2017 Time of Meeting: 3:30 PM Location of Meeting: CONFERENCE ROOM 1, CITY HALL Purpose of Meeting: SPECIAL WORK SESSION CALL TO ORDER /ROLL CALL - The meeting was called to order at 3:30 PM Present: Mayor Schmitt, Councilmembers Murzyn Jr, Williams, Buesgens and Novitsky Also Present: Lenny Austin, Police Captain; Kelli Bourgeois, Human Resource Director /Assistant to the City Manager; Danielle Pregler, Joseph Sturdevant, Malcolm Watson, Mike Novitsky, and Mary Granlund Interview of Captain Lenny Austin Mayor Schmitt explained the purpose of the meeting was to interview Lenny Austin for the Interim Police Chief position. The Council Members were provided a list of questions which each of them were to take turns asking Captain Austin. The City Council took turns asking Captain Austin the first 10 questions of the list and Mayor Schmitt followed up with the final two questions of the interview. Bourgeois escorted Austin out so the City Council could discuss the interview and make a recommendation regarding the Interim Chief appointment. All members of the audience were given an opportunity to share their ideas on the interview and appointment of Austin to the Interim Police Chief position. The City Council members all shared their thoughts on appointment of Lenny Austin to the Interim Chief position with the full City Council consensus being that Captain Austin should be appointed to the Interim Chief position. The Mayor reviewed the transition updates sheet that Captain Austin had referred to in the interview and read through the items he is working on and planning for in the next several months. She then stated that it is her plan to appoint him to the Interim Police Chief position. With no further comments the meeting was adjourned at 4:27 p.m. Respectively Submitted, Kelli Bourgeois, Human Resource Director/ Assistant to the City Manager 13 bCOLUMBIA HEIGHTS Park & Recreation Commission Minutes of the Meeting Columbia Heights Public Library May 24, 2017 David Payne called the meeting to order at 5:30 p.m Roll Call Members present: Anne Carder, Sean Clerkin, Bruce Evans, Tom Greenhalgh, Kevin McDonald, David Payne, Marsha Stroik Staff present: Kevin Hansen, Public Works Director; Keith Windschitl, Recreation Director; Deanna Saefke, Commission Secretary; Connie Buesgens, Council Liaison Also present: Captain Lenny Austin, CHPD; residents Fatima Molas, and Jim Sharpless Approval Consent Agenda Motion by Stroik, second by Evans, to approve the consent agenda. Upon vote: All ayes. Motion Carried. Letters and Requests A. Letter of request for an open bar on July 1, 2017 for a wedding reception with approximately 250- 300 guests, using Tibet Kitchen. Windschitl reported the couple is a resident of Columbia Heights and has been at the facility before for other family events. They are using the Tibet Kitchen which is a restaurant and bar in Minneapolis. At this time we do not have a current cater license, liquor license, or insurance policy listing the City of Columbia Heights as additional insured from the company. The only way he would suggest approving this request is if all of the proper paperwork is received one month prior to the event. Clerkin asked if business from outside the City are allowed to use their liquor license. Windschitl replied yes it has happened in the past. In fact there are not very many caters who cook on site because they like to have their own things to use and not haul all of their supplies and equipment to another location. Stroik indicated the letter states they might be over the number of guests for an open bar, does that matter. Windschitl replied a guest count of 275 is a general maximum number for an open bar, but this family is also including children in that count. Stroik stated that as long as this company provides all of the proper paperwork to show that it is going to be a responsibly run bar. Motion by Greenhalgh, second by Clerkin, to approve the request for an open bar on July 1, 2017 using Tibet Kitchen, as long as all of the proper paperwork is provided. If the proper paperwork is not received they will be required to use the CH Lions Club for bartending. Upon vote: All ayes. Motion Carried. B. Letter of request for an open bar on August 26, 2017 for a wedding reception with approximately 100 guests, using Common Roots Catering. Windschitl reported the proper paperwork has been received from Common Roots Catering. Motion by Clerkin, second by Carder, to approve the open bar on August 26, 2017 using Common Roots Catering. Upon vote: All ayes. Motion Carried. C. Request to waive the park rental fee of Huset Park East by CH Lions Club for the 2017 Jamboree, June 21 -June 25. 14 City of Columbia Heights May 24, 2017 Park & Recreation Commission Minutes of the Meeting Page 2 Windschitl indicated the reason for including this request this year is because the City was looking more into the liability factor. Typically if a group has a large event in the park staff works with them to get a little more paperwork. The Finance Director is working with the Lions Club to prepare an agreement for this event as directed by the City attorney. The question is not to just waive the fee for the Jamboree event but for the approval of the Lions Club entering into an agreement with the City and provide liability coverage throughout the entire event. Clerkin indicated there has always been liability insurance coverage by both the Lions Club and the carnival vendor but it has never been asked for by the City. Motion by Stroik, second by Greenhalgh, to waive the fee for the use of Huset Park during Jamboree as long as the Lions Club works with the City of Columbia Heights going into a contract for the Jamboree event, June 21 -25. Upon vote: All ayes, Clerkin abstained. Motion Carried. Old Business A. Circle Terrace Park building bid results. Hansen indicated Circle Terrace Park has the sport court feature and new playground equipment installed. Work is continuing on fencing and restoration of the area, and installation of the patio area overlooking LaBelle. The multipurpose building has had some delays. The initial architects estimate was around $350,000. The original budget was $265,000 - $270,000. Staff made the decision to scale back items on the building in order to reach the original budgetary number. Within the past two weeks eight bids were received; the lowest bid was for $414,000. Park of the reason for the high estimate is the time of year and that every contractor is very busy. With this type of federal funding we are tied to prevailing wage. The other stipulation with this funding is that it has to be drawn down by December 31, 2017. Hansen stated there are three options: to award the bid to a contractor now and find additional funding, to rebid the project with a fall project date, or to abandon the project. Clerkin suggested a fall construction. McDonald asked if the scale of the building could be downsized. Hansen replied that has been done. If it was any smaller you would lose what the original intention is for. Stroik asked if a partial build could be done to use up the available funding. Hansen replied no because of the HUD agreement and with Anoka County is based on the building. Windschitl asked what the amount of federal funding is. Hansen sated $240,000 federal funding and $30,000 from Park Development. There is no additional funding available from Park Development funds. Carder asked if any other fund raising could be done. Stroik asked if a round up feature on water and sewer bills could happen. She had previously been told that the software cannot handle that type of feature. Hansen replied the software has not changed for utility billing. He indicated a rebid process will need to be started now with a building completion date of December 15, 2017. In order to receive the reimbursement for the federal funding the $240,000 total needs to be spent on the building by the end of the year. Clerkin restated the only option at this time seems to be to rebid the project. B. Keyes Park Improvements: Construction Plans Hansen began discussing the Keyes Park Master Plan that was adopted by the City Council last August or September and to prioritize what elements will be completed as funding become available. To complete items 1 through 12 the architect's estimate of soft costs is $600,000 - $800,000. He indicated that the work done in the four or five parks over the last few years have cost around $500,000 each. It was budgeted to have about $375,000 from the parks development fund, and some available funding in storm water to account for the storm water pond. That is about a $400,000 - $415,000 available funding for improvements at Keyes Park. Staff recommend for a base bid to include items 1 through 5 and then add alternates for other items. Stroik asked if the walking trail could be done without actual paving and can the work be done in- house. Hansen replied the base bid would include trail work on the area from the parking to the ballfields and the rest would be add alternate. The paver that the City owns is for 15 City of Columbia Heights May 24, 2017 Park & Recreation Commission Minutes of the Meeting Page 3 patching and not quality work. Public Works staff are not contractors so what would take a contractor two weeks might take staff four weeks and then that is four weeks where regular maintenance throughout the City is not being completed. Stroik asked why the sliding hill costs money. Hansen replied the backstop will need to be removed for safety. The plan indicated seating areas at the top of the hill as well. For the sliding hill there will need to be fencing added to the flat area to reconfigure the area. Stroik indicated the warming house and shelter can be completed at a later time. Payne stated the project should get started as soon as possible. Hansen indicated the bidding process is approximately six weeks and would probably award the bid sometime in August. Work would be done in the fall and spring. Payne asked if the park will be closed down. Hansen replied yes. Hansen reminded the Commission the park development funds come in through park dedication and those funds are received through development within the City. For example part of the money received from the Dominium development is funding the Keyes Park redevelopment. Staff suggests moving forward on the Keyes Park development with items one through five and any other items the Commission feels would be important. He indicated public feedback included a walking trail as a top priority; some other suggested items were outdoor adult fitness, slight landscaping can be done later, preserve the sliding hill, and introduce a soccer field with a question of what type of field is put in. Hansen indicated listing item six as an add alternate. Stroik replied improving the sliding hill is important. Greenhalgh indicated the backstop on the baseball field had funding through a Twins grant and asked if the Twins organization needs to be notified of the changes. Hansen replied no but he will look into it for further funding opportunities. Motion by Greenhalgh, second by Clerkin, to move forward with the bidding process on the Keyes Park Master Plan items one through five with number six as an add alternate. Upon vote: All ayes. Motion Carried. New Business A. Sullivan Park incident Captain Austin informed the Commission a shooting incident occurred at Sullivan Park on May 4, 2017. When officers arrived no one was around but did find evidence of a shooting. A local hospital did report an injured patient with non -life threatening gunshot wounds. Through investigations it was discovered that person was at the park for a memorial. One of the bullets did go through the wall of a house about a block away from the park. Captain Austin indicated after this incident an internal discussion began among police staff for potential changes to the ordinances or procedures regarding park usage. One point of discussion was the time in the evening of this incident. For example Kordiak Park has hours listed as sun up to sun down but the city parks close at 11:00 p.m. Austin commented that with the redevelopment over the past five years or so within the city parks they look fantastic. He feels this is a good time to review the ordinances for the parks. Evans asked if the people involved in the shooting were attending the event. Austin replied it is believed that they were attending the event. It is also believed that the shooting was gang related. At one time there were approximately 150 people there. The woman reserving the park indicated an attendance of 50 people. When officers arrived no one was at the park and they did have a quick response time. Stroik stated the woman renting the park was from Crystal. She asked if park rentals can be reported to the police department for officer's to routinely drive by. Austin replied there has been discussion regarding that for large groups. It is also dependent on call load for each day if an officer would be available to drive by park rentals. He stated that he was unaware that alcohol was allowed in the parks. It is allowed at the other parks with a signed permit. The ordinance states that City Council approval is needed to allow alcohol in the parks. Overtime this authority must have been delegated to the Park and 16 City of Columbia Heights May 24, 2017 Park & Recreation Commission Minutes of the Meeting Page 4 Recreation Department or the Director. This is an example of how these ordinances can be cleaned up, and do research on how other cities are approaching these situations. He does not know if this particular incident could have been prevented, but feels that by simply looking at the park hours that can affect behavior. Windschitl stated he feels it is good to review the ordinance as it is many years old and make adjustments as needed. The adult softball league often times has their last game starting at 9:15 p.m. and ending at 10:15 p.m., so that may have been a reason to keep the park open until 11:00 p.m. The other item based on last year's park rentals out of 129, 25 were non - residents using the parks. This is the first shooting at a park in his career at Columbia Heights. Windschitl feels the ordinance should be looked at but also does not want to make different changes that make it inconvenient for residents to use the parks. The rental at Sullivan Park on May 4th was done properly; the person paid the non- resident fee and filled out all of the permits. Stroik wondered why they had the event in our city though. Windschitl replied that she did pay the $100 damage deposit for the park key and did return it a day later in our evening drop box as instructed by staff. Hansen replied there may have been some kind of amendment to the ordinance that is not indicated. Windschitl reported working with the City attorney to create the park forms. Austin replied when the archival system was moved to a web -based program there may be items that are missing. Stroik asked if alcohol can be limited to just one park like Huset. Saefke replied Sullivan Park is the largest park and probably the most rented. Carder asked if having different park hours or no alcohol at the parks would have stopped this incident. Austin replied it is hard to tell but often times in an example of not allowing alcohol at the park for a large event many times the group wouldn't hold a party like that there. He stated the permit for this particular event was for a ten hour time frame. Stroik stated that rentals shouldn't be allowed for that long of time. Saefke indicated that Staff asks for a block of time for each rental that will include any setup prior to the event so often times it is for most of the day. Windschitl replied that only one rental is reserved each day because Public Works does not have extra seasonal staff to pick up trash at a park if there was going to be more than one event in a day. Evans stated closing the parks at dusk but keeping the ballfields open later would be a good course of action. Windschitl suggested gather information on park policies from other communities and reviewing the current city policy at the next meeting. B. Soccer Field request at Huset East Buesgens reported a discussion that started about three years ago with a resident who was talking about the need for a soccer field. There is a need for an adult size soccer field for teens and adults. Many other communities in the metro area have adult soccer fields. Families with soccer players will go outside of the city once their children become teenagers because they outgrow what is available here. After discussing the most reasonable place for a soccer field with Hansen, she learned it was already in the master plan at Huset Park in 2004. There is ample parking, a concession stand, and it is somewhat away from residential areas. Buesgens believes this will bring a lot of people in our diverse community together. Revenue can be made through renting out the field and provide opportunities for competitions. There are people within the Somalian and Ecuadorian communities that have expressed interest in helping donate and raise funds over time for a soccer field. Resident Fatama Molas expressed that many children with special needs and specifically autism thrive when playing soccer where they would otherwise struggle in other sports. Carder asked if lacrosse can be played on an adult size soccer field. Clerkin replied when he was growing up in Columbia Heights soccer was played inside the softball field at Huset Park. He asked if there is a soccer field at the High School. Carder suggested the area behind Columbia Academy for a soccer field. Buesgens indicated after speaking to Windschitl soccer is being played at other parks but then they are tearing up the field so that is why she is looking to create a full size adult field for people to use. Stroik suggested for Buesgens to attend a Columbia Heights Athletic Boosters meeting to discuss opportunities for fund raising. Payne replied that he is in favor of a 17 City of Columbia Heights May 24, 2017 Park & Recreation Commission Minutes of the Meeting Page 5 soccer field but wants all of the Huset Park Master Plan to be completed. C. Dog Park request discussion Windschitl reported council member Novitsky asked for this to be on the agenda per a request from a resident to add a dog park. This resident thinks there is an area by Sullivan Park that is not being utilized and could be used for a dog park. Windschitl indicated the Commission has discussed this topic in the past. He printed out the rules from the St. Anthony Parkway and Locke Park dog parks. There are fees for a permit at some area parks. While running a dog park there are costs associated with maintenance, enforcement, and liability on the city. Stroik received comments recently that the Lomianki Park which is unused many days should be turned into a dog park. She recently saw a story on WCCO regarding the numerous injuries at dog parks between dogs. Clerkin asked what a conservative cost would be to take a flat area and install the fencing required to enclose a park. Hansen estimated $60,000- $100,000. He indicated the recommendations from the American Kennel Club states an area of one acre or more of land surrounded by a six -foot high chain link fence, a double gated entry, cleaning supplies, waste bags, the area should provide both shade and water for dogs and people, benches, tables, and a separate area designated for small dogs and large dogs. Gauvitte Park does not work for this area because it will be needed for the future area of storm water filtration, flood control, and Mississippi River requirements. Hansen recommended keeping in mind the use of open green space for people to use for relaxation, picnics, throwing Frisbees and many other activities. Carder replied the other two parks mentioned earlier are so close that it doesn't seem necessary. Stroik replied if a dog park cannot be done right then it shouldn't be done at all. Especially considering safety, and to have a full acre or more of free land. Hansen replied Sullivan Park is not the right size. Another item to consider is lack of parking at any of the areas. Clerkin replied the two main requirements of money and available land are not things that the City has available at this time. Carder and Payne- agreed. Windschitl indicated he would report back to Novitsky and resident Erickson. D. 2018 Work Plan 1. Master Planning next park Hansen asked if the Commission wants to start another master plan at this time or wait until 2018. Gauvitte Park or McKenna Park would be the next two logical choices in terms of size. Gauvitte Park would tie in with meeting storm water rules and flooding issues. Carder asked if something had been done already at McKenna Park. Hansen replied there was a partial redevelopment there with a new playground. There is no parking other than street parking, there are two fields that overlap but what are the recreational needs of a ball field in that area. There is also a current building. At Gauvitte Park there is a hockey rink but it is a very narrow park. Hansen reported that a regulation soccer field is slightly larger than a football field. He indicated there is no funding to do any work. Member suggested waiting to create any new master plans. 2. Restroom for Huset Park Splash Pad Hansen indicated $50,000 was budgeted this year for two restrooms at the Huset Park Splash Pad. Plans have not been drawn up for that with the current work load. This project will either be a late 2017 project or a 2017 -2018 project for the Huset Park splash pad. A changing room was suggested for this area. Stroik indicated this will help keep people out of Murzyn hall. 3. Other Hansen reported the splash pad at Huset West used more water than was projected last year. Based on the design of the splash pad it was estimated that between four and six million gallons of water would be used and last year nine million gallons were used in 2016. The proposal for 2017 is to make a few changes. Regarding temperature and time of use it was observed that the majority of use in the morning 18 City of Columbia Heights May 24, 2017 Park & Recreation Commission Minutes of the Meeting Page 6 doesn't begin until 11:00 a.m. To reduce the amount of water used staff propose changing the hours of operation to 11:00 a.m. until 7:00 p.m. and begin the first day of operation after the Columbia Heights schools are done, so June 81h. In 2016 it was open 111 days and this will reduce it to 85 days. Regarding the computer programming of the features themselves there can be a few adjustments. The amount of water flowing through each unit can be restricted. The features can also be changed so that only a certain amount of fixtures will turn on at one time. During staff observations many times kids were just running around and turning on all the features but not using them. Stroik asked if the weather is under a certain temperature or it is a stormy day if the splash pad will be closed. Hansen replied yes, if it is less than 70 degrees or there is bad weather for the day it will be closed. He indicated there is still a possibility of working with the Mississippi Watershed Management Organization to partner for installing a reuse system for the water at the splash pad. Currently the water drains into Zurich pond. The idea would then be to pull water from the pond and irrigate the fields with farm field type of sprinklers. Stroik asked if the splash pad would be open for the community picnic on June 7th. Hansen replied that could be open just for the event time. Motion by Stroik, second by Clerkin, to change the hours of operation for the splash pad to 11:00 a.m. until 7:00 p.m. daily from June 9th through Labor Day in order to help with water conservation and cost savings. Upon vote: All ayes. Motion Carried. Reports A. Recreation Director Windschitl needed to leave for a youth sport team to pass out uniforms, Saefke reported on his behalf. June 7th is the Community Picnic from 4:30 p.m. — 7:00 p.m. at Huset Park West. The recreation program coordinator Liz Bray planned this event to include all city departments and the entire community is welcome to attend. This initiative is an extension of the All American City award and promoting community involvement. Registrations are coming in for the youth summer programs. The theater programs are very popular and have waitlists where as some of the Wild Wednesday trips have only a few registrations. Loaves and Fishes will be providing a free lunch program for all of the youth programs this summer. Saefke described the youth park programs for each age group and some of the things that they do each week. Saefke reported the Beautification Committee started planting today. The volunteers plant at City Hall, along Central Avenue, many park signs, the circle garden at Huset East, and the gateway. The wood floors are being refinished this week at John P. Murzyn Hall. The recreation office is temporarily located at the old police office where the IS department is located in city hall. B. Public Works Director /City Engineer Hansen reported eight seasonal staff are currently working with the remaining six staff starting June 1. The Dominium housing development construction is progressing well at 37th and University Avenue. Stroik asked about the progress of the area on 47th and Central Avenue. Buesgens replied the business came before the EDA to show the preliminary plans for affordable housing with the Dominium group. Hansen replied Hy -Vee is planning to have a gas station and a Slimms Restaurant in that area. Mill and overlay work will be done at 39th Avenue from the roundabout over to Central Avenue. A sidewalk will be installed on the south side. 40th Avenue will have a new storm sewer system and V] City of Columbia Heights May 24, 2017 Park & Recreation Commission Minutes of the Meeting Page 7 reconstructing the roadway. Water main work will be done on Main Street between 40th and 42 "d C. Commission Members Stroik asked what is happening in the old NE State Bank building. Hansen replied there is a proposal for two charter schools and adult education. Stroik asked about market rate apartments. Hansen replied nothing happened with that. Clerkin reported the plates have been ripped off from inside the shelter where the outlets are located. Buesgens presented a request from the Heights NEXT group. The group would like to host a Dogs Day Afternoon event on Sunday, August 13 at Huset Park. They have K -9 Coaches providing demonstrations and dog equipment. This will be a free family event. The group is asking for the fee to be waived or discounted for this first time event. Stroik indicated these types of events are huge in other cities. Buesgens stated they are getting a lot of volunteers, there may be other organizations there, and hope to have a big turnout. Stroik asked what the fee typically is. Saefke replied for groups over 100 people it is $110 including tax. Motion by Clerkin, second by Stroik, to waive the fee for the first time event for Heights NEXT to use Huset Park on Sunday, August 13th for the Dogs Day Afternoon. Upon vote: All ayes. Motion Carried. Payne adjourned the meeting at 7:12 p.m. Deanna Saefke, Recreation Clerk Typist II 20 CH COLUMBIA HEIGHTS PUBLIC LIBRARY 3939 Central Ave NE, Columbia Heights, MN 55421 BOARD OF TRUSTEES: MEETING MINUTES Wednesday, July 5t ", 2017 Approved 8/2/2017 The meeting was called to order in the History Room by Vice - Chair, Nancy Hoium, at 5:49pm. Members present: Nancy Hoium, Catherine Vesley, Stephen D. Smith, Tricia Conway, and Bobby Williams. Also present: Library Director, Renee Dougherty, and Recording Secretary, Nick Olberding. • The Minutes of the June 7th, 2017 Board Meeting were approved. • The Bill List dated June 7th, 2017 was reviewed. It was moved, seconded, and passed that the bills be paid. • The Bill List dated June 21St, 2017 was reviewed. It was moved, seconded, and passed that the bills be paid. • The Accounting Sheet as of June was reviewed, and approved. • Questions and discussions from Bills and Accounting: • Donation from the Friends of the Library for Summer Reading Program. The Friends donated $500 for the purchase of books to give away as prizes for the Summer Reading Program, and $250 towards booking of Leo & Kathy Lara as entertainment during for the Summer Reading Kick -Off Party. The board was happy to hear that the Thank You Card (discussed at the prior meeting) had been sent to the Friends for their generous donation. o Who is the Chair of the Friends of the Library? Kay Reiners • Activities & Attendance: Based on Bri and Renee's Operational Reports, the Board is very impressed by the number of activities and programs we host at the library over the summer, and the healthy attendance at these events. For example: 140 at the Summer Reading Kick -Off Party; 110 for Wacky Wednesday; and consistently around 60 people for Toddler Storytime. o Foodservice at the Library: Through a partnership with Youthprise, the library is serving bag lunches to children in the library from 11:45 -12:15 (Tuesday, Wednesday, and Thursday in the Community Room) during the summer months. Parents are also served if accompanied 10 by their children. Attendance has fluctuated, but has had adequate numbers. We receive 20 youthprise lunches a day, and have served up to 20 in a day. o Staff Update: Cortni O'Brien, our new Adult Services Librarian, will be starting next Monday, July 10th. The Board is excited for our new librarian to start, and happy with the library background she has. Old Business: N/A New Business: Change of December 2017 Closed Dates: Between the City and the Unions, an agreement has been made to observe the Christmas Holiday on Monday, December 25th and Tuesday the 26th. This differs from what the Library had originally planned. The change was motioned, and seconded. Approved. 2018 Proposed Budget: The overall budget includes an increase of 8.5% over the adopted 2017 budget. This takes into account the raises for both part -time and full -time employees; increased building maintenance costs, and increased IS expenses. o Part -time wages were increased to be more competitive, to both attract applicants and retain employees. o Full -time wages covered by the AFSCME Union were increased from contract negotiations. 21 o Maintenance costs have increased due to the larger space, more complex systems, more components, more HVAC filters, and more labor related to these. ■ HVAC system maintenance increased from around $5,000 to $13,000 /yr. ■ Line 4020 also includes cost for window washing, carpet cleaning, thermostatic controls contracts, landscaping, and sprinkler systems. ■ We will try to have Kevin Hansen or Eric Hanson attend an upcoming Board Meeting to explain the intricacies and costs of the new systems, and maintenance agreements. o Informational Services increases are based on the number of computers /devices in the building. Items from the Floor: N/A There being no further business, the meeting was adjourned at 6:31pm by Nancy Hoium, and seconded. Respectfully submitted, Nicholas P. Olberding Recording Secretary, Library Board of Trustees 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. 22 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF JUNE 5, 2017 The meeting was called to order at 6:33 pm by President Szurek Members Present: Williams, Buesgens, Murzyn, Herringer, Schmitt, Novitsky, and Szurek Staff Present: Walt Fehst, Keith Dahl, Joseph Hogeboom, and Shelley Hanson. Don Drier, a college student seeking a degree in Public Administration was also present. He is a Columbia Heights resident who wants to observe various City meetings and will be joining the Comprehensive Plan Committee to further his education in this area and learn first -hand how local government works. PLEDGE OF ALLEGIANCE - RECITED Nick Novitsky was officially sworn in as an EDA member. CONSENT ITEMS 1. Approve the Minutes from May 22, 2017 2. Approve the Financial Report and Payment of Bills for April 2017 on Resolution 2017- 12. Questions by Members: There were no questions. Motion by Williams, seconded by Murzyn, to waive the reading of Resolution 2017 -12 there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Murzyn, to approve the Minutes of May 22, 2017, and the Financial Report and Payment of Bills for April, 2017 as presented. All ayes. MOTION PASSED. RESOLUTION NO. 2017-12 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for the Month of April, 2017 and the Payment of the Bills for the Month of April, 2017. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and 23 EDA Minutes Page 2 June 5, 2017 WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve thein by resolution and enter the resolution in its records; and WHEREAS, the financial statements for the month of April, 2017 has been reviewed by the EDA Commission; and WHEREAS, the EDA has examined the financial statements and finds them to be acceptable as to both form and accuracy; and WHEREAS, the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9, including but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets, Audits and similar documentation; and WHEREAS, financials statements are held by the City's Finance Department in a method outlined by the State of Minnesota's Records Retention Schedule, NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the referenced financial statements including the check history, and they are found to be correct, as to fonn and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the check history as presented in writing is approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution is made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this 5`n day of June, 2017. Motion by: Williams Seconded by: Murzyn PUBLIC HEARING 1. DEEDING OF EXCESS PROPERTY — CONVEYANCE OF 4147 7 "" ST- RESOLTUION 2017 -13 Dahl stated that over the years, the Columbia Heights Economic Development Authority (the "EDA ") has purchased several blighted residential properties throughout the City of Columbia Heights (the "City ") for various housing redevelopment programs. A few of the properties acquired are non - conforming residential properties pursuant to City Code of Ordinances, Chapter 9, Article I, Section 9.106, Subd. (B)(4); and Section 9.109, Subd. (C) because they do not meet the minimum lot area and dimensions. The EDA owned property located at 4147 7th Street NE, Columbia Heights, MN 55421 (the "Subject Property) zoned as R -2A One and Two Family Residential District is one of these non - conforming residential properties. The following are excerpts from City Code pertaining to the non - conformity of the Subject Property. 24 EDA Minutes Page 3 June 5, 2017 City Code of Ordinances, Chapter 9, Article I Section 9.106 Subd. (B)(4) A lot of record shall be deemed a buildable lot provided it has frontage on a public right - of -way and meets the setback and area requirements for the district in which it is located, or adjusted to conform as follows: a lot or lot of record upon the effective date of this article which is in a residential district and which does not meet the requirements of this article as to area or width, may be utilized,for single-family detached dwelling purposes provided the measurements of such lot meets 100% of the front yard, side yard and rear yard setback requirements for the district in which it is located and 60% of the minimum lot area or lot width requirements for the district in which it is located. City Code of Ordinances, Chapter 9, Article 1, Section 9.109 Subd (C) Lot area, setback, height and lot coverage requirements for uses in the residential districts shall be as specified in the following table for R -2A One and Two Family Residential District: Minimum Lot Area Single - Family Dwelling: 6,500 sp. ft. Minimum Lot Area Two - Family Dwelling: 12, 000 s . ft. Minimum Lot Width: 60 ft. Dahl told members that the Subject Property is thirty (30) feet by one - hundred twenty -nine and fifteen hundredths (129.15) feet. Since the lot width or area does not meet the minimum lot width (30 ft. 160 ft.) or area (3874.5 sq. ft. t 6,500 sq. ft.) respectively, the Subject Property is not buildable. Thus, in certain circumstances such as this, the EDA has tended to deed the property to an adjacent property owner(s). Staff reached out to both property owners who are adjacent to the Subject Property to see if either property owner had an interest in acquiring all or a portion of the Subject Property. The only response staff received was from the property owners of 4149 7th Street NE, Vladimir and Tisha Maksimovich (collectively, Maksimovich). The Maksimovichs have expressed an interest in acquiring the Subject Property from the EDA for the addition of more yard space. For consideration tonight, the EDA must determine if the conveyance of the Subject Property to Maksimovich is advisable. A notice of public hearing was published in the Sun Focus for any person wishing to express an opinion on this matter to be heard orally or in writing. At this time staff recommends conveyance of 4147 7th Street NE to Vladimir and Tisha Maksimovich. Once combined, they will have a 70 ft. wide lot which would be considered a conforming lot. 25 EDA Minutes Page 4 June 5, 2017 Questions from members: Williams asked how many properties were left of the ones purchased by the City. Dahl said there are two lots for sale from those purchased prior to 2016 and there are two lots that will be for sale as soon as the structures are demolished. Williams asked what the City paid for the lot and how much we are getting for it. Dahl said the City purchased the lot in 2009, but he didn't remember the amount paid. He said he could provide that information to Williams later. Dahl went on to say that the Maksimovichs were not paying anything for the lot, but it would increase the value of their property, and therefore generate more taxes as it would be back on the tax rolls, rather than remaining tax exempt as it is now. He went on to say that the City has also been expending money on the lot keeping it mowed for the past 8 years. Williams thought they should have paid something for the lot, even though he knows we would never recoup the entire cost. Schmitt asked if the City can mandate that it be combined with their property into one parcel. Dahl said they can combine the two parcels in order to simplify the records and tax statements. However, even if they keep as two separate lots and have two tax statements, it still would not be a buildable lot, so it can only be used as extra yard space. Public Hearing Opened.. No one was present to speak on this. Public Hearing Closed. Motion by Schmitt, seconded by Buesgens, to waive the reading of Resolution 2017 -13, there being ample copies available to thepublic. All ayes. MOTIONPASSED. Motion by Schmitt, seconded byHerringer, to adopt Resolution 2017 -13, Resolution Approving the Conveyance of 4147 7th Street NE, Columbia Heights, MN 55421 to Vladimir and Tisha Maksimovich. Roll call: ayes - Buesgens, Herringer, Murzyn, Schmitt, Szurek Nays- Williams and Novitsky. MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION 2017 -13 The undersigned, being the current members of the Board of Commissioners of the Columbia Heights Economic Development Authority (the "Authority "), take the following actions in writing. 26 EDA Minutes Page 5 June 5, 2017 WHEREAS, the Authority is the current owner of certain real property located at 4147 7th Street NE, Columbia Heights, Anoka County, Minnesota, and legally described as the South 30 feet of Lot 22, Block 45, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota (the "Property "); WHEREAS, Vladimir and Tisha Maksimovicb (collectively, "Maksimovich ") own and reside at property adjacent to and north of the Property, and have expressed interest in acquiring the Property from the Authority; WHEREAS, the Authority is willing to convey the Property to Maksimovich, in consideration for Maksimovich paying all closing costs associated with the conveyance of the Property; and WHEREAS, the Authority, through its undersigned Commissioners, has reviewed copies of the proposed Quit Claim Deed transferring the Property to Maksimovich ( "Deed "). NOW, THEREFORE, be it resolved that Marlaine Szurek, as the President of the Authority, is hereby authorized, empowered and directed for and on behalf of the Authority to deliver to Maksimovich and cause for recording in the Office of the County Recorder of Anoka County, Minnestoa, the Deed and any other documents that may be incidental to the consummation of the conveyance of the Property to Maksimovich. RESOLVED FURTHER, that Marlaine Szurek, as the President of the Authority, is hereby authorized and directed to execute and take such action as she deems necessary and appropriate to carry out the purpose of the foregoing resolutions. RESOLVED FURTHER, that these actions shall be effective as of June 5, 2017. By: By: Donna Schmitt, Vice President By: By: John Murzyn, Commissioner By: By: Robert Williams, Commissioner Connie Buesgens, Commissioner Gerry Herringer, Commissioner Nick Novitsky, Commissioner A Quit Claim Deed will be executed conveying title to the Maksimovichs. 27 EDA Minutes Page 6 June 5, 2017 BUSINESS ITEM 1. ACHRA LEVY UPDATE -KAREN SKEPPER, ANOKA COUNTY DIRECTOR OF COMMUNITY AND GOVERNMENT RELATIONS Skepper was present to give the EDA Board an update of ACHRA Levy funds and other funding sources that have benefited Columbia Heights. She explained that her position with Anoka County has three different areas of responsibilities. As the Community Development Director she receives Federal Funds that must be used to benefit lower income and older housing areas. The CDBG program is an example of this type of funding. She said Columbia Heights has received almost one million dollars of Federal Funds over the last five years for projects such as contaminated site clean-up, redevelopment of the Mady's site, the Commercial Revolving Loan Program, funding for the construction of the Circle Terrace Peace Park building, as well as funding for SACA which serves the residents of Columbia Heights. She told members that the amount allocated for the Circle Terrace Park building must be spent by the end of 2017. She also oversees the Home Investment Partnership Program that provides funds to build or maintain affordable housing. Some of these funds were used at Parkview Villa to do upgrades while the City owned it. Another good program that benefited the City of Columbia Heights was the Neighborhood Stabilization Program. During the downturn in the economy, Anoka County also bought up distressed properties and either remodeled them or tore them down and built new homes. Out of the 90 homes they purchased in Anoka County, 13 of them were in Columbia Heights. Skepper told members this was a very successful program that caused property owners near the new homes to also fix up their properties. The second part of her job is Government Relations. She said she is part of a committee that meets three times a year whereby they receive Emergency Management Updates, legislative updates, and infrastructure /traffic updates for our state. She is the connection on behalf of Anoka County cities to the State Legislators. At the Federal level she serves on a committee to lobby for Federal Funding to help accomplish goals important to our Cities /County. The third part of her job is Executive Director of the Anoka County HRA. It was created in the 1990's to create Sr. Housing. Initially the goal was to build market rate units for seniors. Columbia Heights residents do get preference on the waiting lists of these buildings as they are part of Anoka County. Since then the job has evolved and as the Executive Director she has taken on Economic Development at the County level. A conunittee determined there was a need for an Economic Development Dept. but did not want to add an additional levy on the taxpayers for this. An Economic Gardening Program was started that focuses on helping small businesses to grow. These second stage businesses participate in information forums, networking, and customizing research. Since its inception the program has centralized and combined with other counties in the metro area. The Open to Business Program is part of this program and Columbia Heights has a person who serves this area on a monthly basis. 28 EDA Minutes Page 7 June 5, 2017 Skepper said she also represents Anoka County in the Greater MSP which works to improve the image of the Twin Cities and the State overall in order to draw employees /professionals, and businesses to the area. They especially target medical and technology companies. Skepper said her department is not funded by the General Fund, but is funded by the administrative fees collected by administering the HRA levy dollars. Those administrative fees pay for her staff to obtain as much Federal, State, and other organization funding as possible and then to disburse to the cities in Anoka County depending on the criteria of the funding. She told members that Columbia Heights has benefited greatly by receiving conduit financing to make some big projects work for us, as well as the CDBG and HOME funds that we have received. The City has received a lot more funding for redevelopment than what we pay in administrative fees. Fehst said that Skepper has worked well for our City and this must be considered when deciding on whether to continue in ACHRA for the next five years. One example he used is the Circle Terrace building. The bids came in $129,000 over the estimate. He said that Skepper is trying to find some of that difference for us so we don't lose the funds that are already allocated for this project that must be used by year end. Schmitt asked if the City decided to opt out of the ACHRA program if we would still be eligible to receive any of the State and Federal funding programs. Skepper said we would still be eligible for the Federal programs, but not the local or State funds or any of the economic business programs. Herringer asked if we opted out what happens to the funds that have been collected, but not spent thus far. Skepper said she doesn't know the legal answer to that question. Schmitt asked how many cities participate in ACHRA and that let the County administer the funds. Skepper said that currently 17 of the 21 cities are members of the ACHRA. East Bethel, Coon Rapids, Anoka, and Blaine do not. However a couple of the cities purchase some of the services, so they pay a fee also. Dahl said that we need to make a decision about his by August on whether to participate for another five years. This is part of our budgeting process which is why staff wanted Skepper to come and explain what the County does to help us and the benefits we receive. Schmitt asked Skepper to provide a breakdown of what monies the City has received over the last five years, and if they were from Federal programs or State and local ones. Skepper said she draft something up although some of the it would be estimates since various funding sources may have been used. 29 EDA Minutes Page 8 June 5, 2017 2. CENTRAL AVE COMMERCIAL REVITALIZATION PROJECT UPDATE On May 1, 2017, the Columbia Heights Economic Development Authority (EDA) discussed three alternative funding scenarios due to the need for increased capital to fund planned projects and programs for the revitalization of the commercial corridor along Central Avenue. And, of these three scenarios presented, Commission Members directed staff to pursue Scenario B, which would effectively maximize the fund sources available to the EDA. The following information is to provide Commission Members with a project update, as well as an overview of the Central Avenue Commercial Revitalization Project. Scenario B — Maximize Fund Sources: • Participate in the ACHRA economic development activities for another five (5) years • Increase the 2017 EDA levy to the statutory levy limit Scenario "B" maximizes the amount of EDA funds available for housing and economic development activates. The EDA would be able to maximize its fund sources by participating in the ACHRA for another five (5) years and increasing the EDA levy from .0074188% to the statutory levy limit of .01813 %. Based on the figures in the table below, the EDA would realize a fund increase in the amount of $121,280. Thus, bringing the total of annual funds available to the EDA for housing and economic development activates to $259,257.10. The impact to tax payers would account for a property tax increase of $20 - $25 annually for a resident who owns a property at an estimated market value of $200,000. *Note: The figures in the table above ivere calculated using the 2016 levies (Payable in 2017). The total cost of the Central Avenue Commercial Revitalization Project will be approximately $3,922,089.65. And, staff anticipates that this project will be an ongoing effort for the EDA over the course of the next five (5) ten (10) years. Based on the total project cost and the projected funds that will be available to the EDA by maximizing the fund sources over the course of the next five (5) to ten (10) years, staff has prepared the following infographics to help explain how the EDA will fund the Central Avenue Commercial Revitalization Project. 30 HRA Levy EDA Levy ACHRA Levy Levy Percentage .0185% .01813% N/A Levy Amount $ 209,468.00 $ 205,280.00 $ 137,977.10 Amount of Change N/A $ 121,280.00 N/A *Note: The figures in the table above ivere calculated using the 2016 levies (Payable in 2017). The total cost of the Central Avenue Commercial Revitalization Project will be approximately $3,922,089.65. And, staff anticipates that this project will be an ongoing effort for the EDA over the course of the next five (5) ten (10) years. Based on the total project cost and the projected funds that will be available to the EDA by maximizing the fund sources over the course of the next five (5) to ten (10) years, staff has prepared the following infographics to help explain how the EDA will fund the Central Avenue Commercial Revitalization Project. 30 EDA Minutes Page 9 June 5, 2017 Questions /comments from members: Szurek said if we stay with ACHRA, it would pay for most of the estimated expenses. Schmitt asked if the graphs include any federal funding or other external funding . Dahl said it did not. Williams asked if we had to make a decision tonight about continuing with ACHRA. Dahl said the final decision didn't have to be made until August. Her-ringer said it is hard to project 10 years out, as a lot can happen to have an impact on the proposed plan. Buesgens thought we should go for full funding and invest in the community and small businesses while we have options of funding. 3. SELECT REAL ESTATE AGENT FOR AN EXCLUSIVE RIGHT TO REPRESENT Dahl explained that on May 1, 2017, the Columbia Heights Economic Development Authority (EDA) directed staff to request exclusive representation proposals from local real estate agents or groups to assist with acquisition of legal non- conforming residential structures along Central Avenue. Staff received three proposals from three local real estate groups that exclusively represent residential buyers. All three real estate groups are prevalent throughout Northeast Minneapolis and Columbia Heights and are knowledgeable of the residential market trends in the area. Below are the three real estate agents and groups that submitted a proposal to staff in no particular order. All proposals received are available in the Community Development Department for review, due to the quantity and documentation type staff is not including the proposals in the packet. Mark and Liz Grotewold — Edina Realty, Inc. Pete T. Heryla & John M. Rockwell — RE /MAX Synergy Tani Le, Viet Le & Dan Baltzer — Pinnacle Realty Teani Dahl told members that our legal counsel advised that due to the Federal Relocation Act and the Minnesota Version of the Uniform Relocation Act, government agencies are responsible for relocation fees if they are proactive in acquisition of industrial, commercial or residential property. Tenant occupants may not waive their right to relocation fees, but Owner occupants may waive their right to relocation fees if the owner is proactive by reaching out to the government agency or the owner lists their property on the open market. Thus, whoever is selected to represent the EDA in acquisition of legal non - conforming residential properties along Central Avenue, there will be strict rules that will need to be followed in order for the EDA to not pay relocation fees. 31 EDA Minutes Page 10 June 5, 12017 Staff recommends that the EDA select Pete T. Heryla & John M. Rockwell — RE /MAX Synergy based upon their proposal submitted and their previous work experience with government agencies. Our legal counsel will help with language of what can be said or done, or how much contact there can be to avoid paying relocation fees. Questions /comments from members: Schmitt asked for a summary of the bids. Dahl said that Edina Realty would charge 2.7% commission, but had no experience with government transactions or the constraints they have to operate in. ReMax would charge 3.15% and has worked with us in the past so they have experience with government transactions. Pinnacle Realty would charge 5% commission and had a very complex proposal about being proactive, which is something we can't do according to our legal counsel. Schmitt asked how they can really help us. Dahl said they get quicker notice of MLS listings and since they have a license they can take immediate action on behalf of the City. Motion by Buesgens, seconded by Herringer, to engage the services of Pete T. Heryla & John M. Rockwell — RE /MAX Synergy to represent the Columbia Heights Economic Development Authority in the acquisition of residential structures along Central Avenue NE and direct staff to prepare an Exclusive Representation Agreement for consideration at the July 10, 2017 EDA meeting. All ayes. MOTIONPASSED. 4. SINGLE FAMILY HOME PROGRAM- CONCEPT APPLICATION FOR 4647 TYLER ST. Dahl told members that the Columbia Heights Economic Development Authority (the "EDA ") has received a completed concept application from Tollberg Homes offering $22,500 for the purchase of the property located at 4647 Tyler Street NE (the "Property "). The Property is part of the Single Family Home Lot Sales Program, which was established by the EDA in 2015 to stabilize and increase property values in the Heritage Heights Neighborhood. The program's lot prices are based upon the estimated market land value for each individual property, but the EDA has the right and authority to review and adjust lot prices periodically provided that sufficient evidence supports the lots price reduction. The 2017 Estimated Market Land Value for this particular property is $38,600. However, in speaking with various home builders and realtors, staff received comments that the lots located in the Heritage Heights neighborhood, are generally lower in value than other properties throughout the City. Furthermore, the Public Works Department has confirmed that there was a ON EDA Minutes Page 11 June 5, 2017 water main break at the Subject Property, which resulted in the sewer and water lines being disconnected at the main. Thus, the offer from Tollberg Homes of $22,500 is around what the EDA can expect to sell this property for. Dahl said that Tollberg has paid approximately $18,500 for the other parcels he purchased from the City, so he has increased his offer for this property even though there will be additional expense for the water and sewer work. Along with a completed concept application, Tollberg Homes has submitted a written letter of intent, pictures of a previous home built, and an example house plan. The example house plan is a representation of what Tollberg Homes intends to construct on the Property and should be reviewed based upon the features present. Dahl told members that the final plan will be brought before the members at the next meeting. The garage will probably be located in the back due to the width of the lot. Staff recommends approval of the concept application submitted by Tollberg Homes as presented. Questions /comments from members: Schmitt asked if there had been any complaints on Tollberg during construction of his other properties. Dahl said the only complaints have been from Public Works due to a lack of erosion control. One of the other homes under construction had dirt going into the sewer system and they had to pay to have it cleaned out. They have made corrections to prevent this from happening again. Motion by Williams, seconded by Buesgens, to approve the concept application submitted by Tollberg Homes for the property located at 4647 Tyler Street NE, Columbia Heights, MN 55421. All ayes. MOTION PASSED. Motion by Williams, seconded by Buesgens, to authorize staff to work with Tollberg Homes to determine specific house plans and to prepare a Purchase and Redevelopment Agreement for consideration at the next EDA meeting on July 10, 2017. All ayes. MOTION PASSED. 5. 2017 EDA LEVY INCREASE Dahl stated that on May 1, 2017, the Columbia Heights Economic Development Authority (EDA) determined a need to increase the EDA levy to the state statute limit of .01813 %. Pursuant to State Statue 469.107, Subd. 1 and 2, the city may increase its levy for economic development authority purposes, subject to a reverse referendum. Thus, at the request of the EDA by resolution, the City Council will need to pass a resolution stating the proposed amount of levy increase as well and to establish a public hearing two to four weeks after. A resolution that serves as a recommendation to City Council for approving a levy increase of the Economic Development Authority was included in the packet. Dahl said we need to establish the hearing now since it takes two months to process. 33 EDA Minutes Page 12 June 5, 2017 Staff recommends approval of the EDA levy increase as presented. Questions /comments by members: There were no questions. Motion by Buesgens, seconded by Williams, to waive the reading of Resolutions 2017 -14, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Buesgens, seconded by Williams, to approve Resolution 2017 -14, resolution of the Economic Development Authority in and for Columbia Heights, Minnesota, approving a tax levy increase. All ayes. MOTIONPASSED. RESOLUTION NO. 2017-14 A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, REQUESTING A TAX LEVY INCREASE BY THE CITY OF COLUMBIA HEIGHTS FOR ECONOMIC DEVELOPMENT PURPOSES. BE IT RESOLVED, By the Columbia Heights Economic Development Authority (the "EDA ") as follows: WHEREAS, the City of Columbia Heights (the "City ") established the Columbia Heights Economic Development Authority by an enabling resolution adopted on January 8, 1996, pursuant to Minnesota Statutes 469.090 to 469.1081 (the "EDA Act "); and WHEREAS, the City Council of the City has given to the EDA the responsibility for all development and redevelopment projects and programs; and WHEREAS, under Section 469.107 of the EDA Act, the City is authorized to levy a tax for the benefit of the Authority, in an amount not to exceed 0.01813 percent of the City's estimated market value (the "EDA Levy "); and WHEREAS, the City currently levies an EDA Levy that is less of the 0.01813 percent of the City's estimated market value as authorized by the EDA Act; and WHEREAS, the City is authorized to increase its EDA Levy to the statutory cap as provided in Section 469.107, subd. 2 of the EDA Act, upon the request of the EDA; and WHEREAS, the EDA desires that the City increase its EDA Levy to $220,100 for taxes payable in 2018, in order to better serve the EDA's economic development activities within the City. 34 EDA Minutes Page 13 June 5, 2017 NOW, THEREFORE BE IT RESOLVED, by the Board of Commissioners of the Columbia Heights Economic Development Authority, that the EDA request the City's approval of an increase of its EDA Levy to the amount of $220,100 for taxes payable in 2018, after a duly noticed public hearing as provided in the EDA Act; and BE IT FURTHER RESOLVED, that the Executive Director is instructed to transmit a copy of this resolution to the City Manager, Finance Director, and City Clerk of the City of Columbia Heights, Minnesota. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 5th day of June 92017 Offered by: Buesgens Seconded by: Williams Roll Call: All ayes President Attest: Assistant Secretary OTHER BUSINESS: Dahl passed out a memo and told members there is a need to hold a special meeting on June 12th at 5:45 pm in order to call for Redemption of EDA Lease Revenue bonds to refinance the Series 2007B for Liquor Store. He also told members the next regular meeting would be July l Ot" at 6:30 pm. The meeting was adjourned at 8:18 pm. Respectfully submitted, Shelley Hanson Assistant Secretary 35 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE SPECIALMEETING OF JUNE 12, 2017 The meeting was called to order at 5:45 pm by President Szurek Members Present: Williams, Murzyn, Herringer, Schmitt, Novitsky, and Szurek Members Absent: Buesgens Staff Present: Joseph Kloiber, and Joseph Hogeboom PLEDGE OF ALLEGIANCE - RECITED BUSINESS ITEMS 1. CALL FOR REDEMPTION OF PUBLIC FACILITIES LEASE REVENUE BONDS - RESOLUTION 2017 -15 The City of Columbia Heights (the "City ") intends to refinance the Public Facilities Lease Revenue Bonds for the Municipal Liquor Stores (the "Municipal Liquor Stores Bonds ") to achieve a lower interest rate and save money on its debt service payments. The City will issue its own bonds under the authority of the City Charter (the "Refunding Bonds "), and will use the proceeds of the Refunding Bonds to pay off the outstanding principal and accrued interest on the Municipal Liquor Stores Bonds. The City Charter requires a 30 -day reverse referendum period after publication of a City ordinance authorizing the issuance of bonds. If the City receives a valid petition within the 30 -day period, it may not issue its bonds without an election. The City published its ordinance authorizing the Refunding Bonds on May 12, 2017, and thus the 30 -day petition period expires on Sunday, June 11. The City plans to award the sale of the Refunding Bonds on Monday, June 12, and will receive proceeds on Tuesday, July 6 (the "Closing Date "). In order for the Columbia Heights Economic Development Authority (the "EDA ") to prepay and redeem the Municipal Liquor Stores Bonds, the EDA is required to notify the bondholders at least 30 days before the date of redemption. Thus, the EDA must adopt a resolution authorizing notification of the bondholders and calling for the redemption of the Municipal Liquor Store Bonds on August 1, 2017. Staff recommends approval of Resolution 2017 -15 as presented. Questions from members: Herringer asked what the regular term is for liquor bonds. Kloiber told him it is I 1 years. 36 EDA Minutes Page 2 June 12, 2017 Williams said it is a good plan to sell the bonds as the rates will go up next year. Motion by Williams, seconded by Schmitt, to waive the reading of Resolution 2017 -15, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Williams, seconded by Novitsky, to adopt Resolution 2017 -15, a resolution consenting to the redemption and repayment of the Authority's outstanding Public Facility Lease Revenue Bonds, series 2007B (Municipal Liquor Store Project). All ayes. MOTIONPASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2017 -15 A RESOLUTION CONSENTING TO THE REDEMPTION AND PREPAYMENT OF THE AUTHORITY'S OUTSTANDING PUBLIC FACILITY LEASE REVENUE BONDS, SERIES 2007B (MUNICIPAL LIQUOR STORES PROJECT) BE IT RESOLVED By the Board of Commissioners of the Columbia Heights Economic Development Authority (the "Authority "), as follows: Section 1. Recitals. 1.01. Pursuant to a Mortgage and Security Agreement and Trust Indenture, dated as of September 1, 2007 (the "Indenture "), between the Authority and U.S. Bank National Association, as trustee (the "Trustee "), the Authority issued its Public Facility Lease Revenue Bonds, Series 2007B (Municipal Liquor Stores Project) (the "Authority Bonds "), dated September 19, 2007, in the original aggregate principal amount of $5,040,000. The proceeds of the Authority Bonds were used to provide financing for the construction of two new municipal liquor stores (the "Improvements ") in the City of Columbia Heights, Minnesota (the "City "). The Authority acquired a leasehold interest in the real property on which the Improvements were constructed (the "Site ") pursuant to a Ground Lease, dated as of September 1, 2007 (the "Ground Lease "), between the City, as lessor, and the Authority, as lessee. The Authority Bonds are secured by lease payments (the "Lease Payments ") from the City to the Authority pursuant to a Lease - Purchase Agreement, dated as of September 1, 2007 (the "Lease "), between the Authority, as lessor, and the City, as lessee. 1.02. Section 8.1 of the Lease pen-nits the City to purchase the Site and the Improvements at any time, in accordance with Article V of the Lease. Pursuant to Section 5.5 of the Lease, the City may purchase all or a portion of the Site and the Improvements by depositing funds to the Trustee for deposit in the Bond Fund established under the Indenture and applied to the payment of principal of and interest on the Authority Bonds. 37 EDA Minutes Page 3 June 12, 2017 1.03. Pursuant to a resolution to be considered by the City Council of the City on the date hereof (the "City Resolution "), the City has detennined to exercise its option to prepay the Authority Bonds in order to acquire the Site and the Improvements. Section 8.2 of the Lease requires that the City give notice to the Authority of its intention to exercise its option to prepay the Lease Payments and acquire the Site and the Improvements at least forty -five (45) days in advance of the date of prepayment and purchase. The City Finance Director gave such notice at the Authority's regular meeting on February 6, 2017. In order to prepay the Lease Payments and acquire the Site and the Improvements from the Authority, the City will issue its General Obligation Refunding Bonds, Series 2017A (the "City Bonds "), in the aggregate principal amount of approximately $3,375,000. Proceeds of the City Bonds will be used to redeem and prepay the outstanding Authority Bonds in an amount sufficient to prepay the Lease Payments. 1.04. The Authority Bonds are currently outstanding in the aggregate principal amount of $3,700,000 and are callable on February 1, 2017, at a price of par plus accrued interest. Pursuant to the City Resolution, the City will request that the Authority consent to and call the Authority Bonds for redemption on August 1, 2017 (the "Redemption Date "), in accordance with Section 8.2 of the Lease. Section 2. Redemption of Authority Bonds. 2.01. It is determined that it is in the best interests of the sound financial management of the Authority and the City that the principal amount of the Authority Bonds coming due on February 1, 2018 and thereafter, comprising all of the Authority Bond subject to redemption, be prepaid and redeemed on the Redemption Date (or on the first date thereafter for which the registrar for the Authority Bonds (the "Registrar ") can provide proper notice to the holders of the Authority Bonds), and the Authority Bonds are hereby called for redemption on that date in the aggregate principal amount of $3,700,000, subject to adoption by the City of the City Resolution. 2.02. The Registrar is authorized and directed to snail notice of call for redemption of the Authority Bonds in the fonn attached hereto as EXHIBIT A to the registered owner of the Authority Bonds to be redeemed at the address shown on the registration books kept by the Registrar. 2.03. Officials of the Authority are authorized and directed to take all actions and execute any documents necessary to carry out redemption of the Authority Bonds, the satisfaction of related documents, and the conveyance of fee title to the Site and the hmprovements to the City as of the Redemption Date. Adopted by the Board of Commissioners of the Columbia Heights Economic Development Authority this 12`x' day of June, 2017. By Its Attest: By Its Executive Director President 38 EDA Minutes Page 4 June 12, 2017 EXHIBIT A NOTICE OF CALL FOR REDEMPTION $5,040,000 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY PUBLIC FACILITY LEASE REVENUE BONDS SERIES 2007B (MUNICIPAL LIQUOR STORES PROJECT) NOTICE IS HEREBY GIVEN that, by order of the Board of Commissioners of the Columbia Heights Economic Development Authority (the "Authority "), there have been called for redemption and prepayment on August 1, 2017 all outstanding bonds of the Authority designated as Public Facility Lease Revenue Bonds, Series 2007B (Municipal Liquor Stores Project), dated September 19, 2007, having stated maturity dates of February 1 in the years 2020 through 2030, both inclusive, totaling $3,700,000 in principal amount, and with the following CUSIP numbers: Year of Maturity Amount CUSIP 2020 $ 650,000 19768P ALO 2023 755,000 19768P API 2027 1,210,000 19768P AT3 2030 1,085,000 19768P AW6 The bonds are being called at a price of par plus accrued interest to August 1, 2017, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment at the main office of U.S. Bank National Association, in the City of Saint Paul, Minnesota, on or before August 1, 2017: U.S. Bank National Association Corporate Trust Services 111 Fillmore Avenue East St. Paul, MN 55107 Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2003, the paying agent is required to withhold a specified percentage of the principal amount of the redemption price payable to the holder of any bonds subject to redemption and prepayment on the redemption date, unless the paying agent is provided with the Social Security Number or Federal Employer Identification Number of the holder, properly certified. Submission of a fully executed Request for Taxpayer Identification Number and Certification, Form W -9 (Rev. December 2011), will satisfy the requirements of this paragraph. Dated: 20 39 EDA Minutes Page 5 June 12, 2017 BY ORDER OF THE BOARD OF COMMISSIONERS OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By /s/ Walter R. Fehst Executive Director Columbia Heights Economic Development Authority OTHER BUSINESS: Hogeboom also told members the next regular meeting would be July 10th at 6:30 pm. The meeting was adjourned at 5:52 pm. Respectfully submitted, Joseph Hogeboom Acting Secretary 40 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE SPECIAL MEETING OF JULY 10, 2017 The meeting was called to order at 6:30 pm by Vice President Donna Schmitt. Members Present: Williams, Murzyn, Herringer, Schmitt, Novitsky, and Buesgens Members Absent: Szurek Staff Present: Walt Fehst, Keith Dahl and Jodi Griffin (acting Assistant Secretary) Also present, James Lenhoff, representative with Ehlers & Associates and John Rockwell, Broker with Re /MAX Synergy. PLEDGE OF ALLEGIANCE - RECITED Approval to amend the Agenda to include an additional item #8, which is consideration of the 47 & Grand TIF District. Motion by Murzyn, seconded by Buesgens, to amend the Agenda to include the additional item, which is consideration of the 47 & Grand TIFDistrict. Roll call: All Ayes. MOTION PASSED. CONSENT AGENDA 1. Approve minutes of June 5, 2017 and June 12, 2017 2. Approve Financial Report and Payment of Bills for May, 2017 — Resolution 2017 -16 Questions from members: Herringer and Schinitt asked for clarification of what the item on Page 26 made to Aisling Fitness was for. Dahl stated he believed it was to refund escrow for the Planet Fitness building, but he will make note to check on it and email members with confirmation or an explanation. Motion by Buesgens, seconded by Novitsky, , to approve the Minutes of June 5, 2017 and June 12, 2017, and the Financial Report and Payment of Bills for May, 2017 as presented. All ayes. MOTION PASSED. 41 EDA Minutes Page 2 July 10, 2017 RESOLUTION NO. 2017 -16 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for Month of May 2017 and the Payment of the Bills for the Month of May 2017. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the month of May 2017 has been reviewed by the EDA Commission; and WHEREAS, the EDA has examined the financial statements and finds them to be acceptable as to both form and accuracy; and WHEREAS, the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9, including but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets, Audits and similar documentation; and WHEREAS, financials statements are held by the City's Finance Department in a method outlined by the State of Minnesota's Records Retention Schedule, NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the referenced financial statements including the check history, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the check history as presented in writing is approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution is made a part of the permanent records of the Columbia Heights Economic Development Authority. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this day of 2017 Offered by: Seconded by: Roll Call: Vice President Attest: Secretary 42 EDA Minutes Page 3 July 10, 2017 1. Single Family Home Program - Concept Application Approval of 4647 Tyler Street NE Dahl explained that on June 5, 2017, the Columbia Heights Economic Development Authority (the "EDA ") approved the concept application submitted by Tollberg Homes offering $22,500 for the purchase of the property located at 4647 Tyler Street NE (the "Subject Property'). The Subject Property is approximately 0. 17 acres, and is part of the Single Family Home Lot Sales Program, which was established by the EDA in 2015 to stabilize and increase property values in the Heritage Heights Neighborhood. The 2017 Estimated Market Land Value for this particular property is $38,600. However, in speaking with various home builders and realtors, staff received comments that the lots located in the Heritage Heights neighborhood, are generally lower in value than other properties throughout the City. Furthermore, the Public Works Department has confirmed that there was a water main break at the Subject Property, which resulted in the sewer and water lines being disconnected at the main. Thus, the offer from Tollberg Homes of $22,500 is around what the EDA can expect to sell the Subject Property for. For the EDA's consideration tonight is the final sale approval of the Subject Property. Attached for review and consideration is the Purchase and Redevelopment Agreement. Specific house plans maybe found in Exhibit B of the Purchase and Redevelopment Agreement. The proposed house plan meets the building requirements set forth by the Single Family Home Lot Sales Program Guidelines. Staff has received the earnest money in the amount of $2,000. If the EDA approves the final sale tonight, the earnest money will become non - refundable. If the EDA denies the final sale approval, staff will reimburse the earnest money to Tollberg Homes. Questions by Members: Schmitt asked to clarify that item #9 on Page 2 of the Purchase and Redevelopment Agreement referring to Sewer and Water conforms to what Dahl stated, in that the City is not warrantying the conditions. Dahl confirmed that was correct and that the lot is being sold as is. Public Hearing Opened. No one wished to speak on this matter. Public Hearin Cg losed. Motion by Murzyn , seconded by Novitsky, to waive the reading of Resolution 2017 -17, there being ample copies available to the public. Roll call: All Ayes. MOTIONPASSED. Motion by Buesgens , seconded by Murzyn , to adopt Resolution 2017 -17, Resolution Approving the Purchase and Redevelopment Agreement with Tollberg Homes, LLC for the acquisition of 4647 Tyler Street NE, Columbia Heights, MN 55421. Roll call: All Ayes MOTIONPASSED. 43 EDA Minutes Page 4 July 10, 2017 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2017-17 RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT WITH TOLLBERG HOMES, LLC. BE IT RESOLVED BY the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority (the "Authority ") as follows: Section 1. Recitals. 1.01. The Authority has previously adopted a program called the Single Family Home Lot Sales Program (the "Program ") providing for the conveyance of certain Authority -owned property in the City of Columbia Heights (the "City"), and has adopted guidelines in connection with the Program (the "Guidelines "). 1.02. The Authority has received an offer from Tollberg Homes, LLC (the "Buyer ") to purchase certain property included in the Program (the "Property"), described as attached hereto as Exhibit and located at 4647 Tyler Street in the City, and the parties have negotiated a Purchase and Redevelopment Agreement (the "Agreement ") which provides for the conveyance of the Property to the Buyer and the construction by the Buyer of a single - family home on the Property, all pursuant to the Guidelines. 1.03. On October 21, 2015, the Planning Commission of the City reviewed the proposed Program and found that the conveyance of property pursuant to the Program is consistent with the City's comprehensive plan. 1.04. On the date hereof, the Authority conducted a duly noticed public hearing regarding the conveyance of the Property to the Buyer, at which all interested parties were given an opportunity to be heard. 1.05. The Board has reviewed the Agreement in the form on file at the office of the Executive Director and fords that the execution thereof and performance of the Authority's obligations thereunder, including the conveyance of the Property to the Buyer, are consistent with the Guidelines and in the best interest of the City and its residents. Section 2. Approval and Authorization of Agreement and Conveyance 2.01. The Agreement as presented to the Board and the conveyance of the Property provided for therein are hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Agreement by such officials shall be conclusive evidence of approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Agreement, and any deeds or other documents necessary to convey the Property to the Buyer, all as described in the Agreement. Section 3. Effective Date. This resolution shall be effective upon approval. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 10th day of July, 2017. 44 EDA Minutes Page 5 July 10, 2017 EXHIBIT A Property Lot Twenty -six (26) except the South 20 feet of said Lot Twenty -six (26) and all of Lot Twenty - seven (27), in Block Two (2) of Sheffield's Second Subdivision Anoka Co. Minn. according to the plat thereof on file in the Office of the Register of Deeds in and for said County and State. BUSINESS ITEMS: 1. Exclusive Right for Representation Agreement On June 5, 2017, the Columbia Heights Economic Development Authority (the "EDA") moved to engage the services of Pete T. Heryla & John M. Rockwell with RE/MAX Synergy to represent the EDA in acquisition of nonconforming properties as they may become available within the City of Columbia Heights (the "City"), and directed staff to review the Buyer Representation Contract (the "Contract ") submitted by RE /MAX Synergy. Pursuant to the Federal Relocation Act and the Minnesota Version of the Uniform Relocation Act, government agencies are responsible for relocation fees if they are proactive in acquisition of industrial, commercial or residential property. Relocation fees may be waived in certain circumstances. Owner occupants may waive their right to relocation fees if the owner is proactive by reaching out to the government agency or the owner lists their property on the open market, but tenant occupants may not waive their right to relocation fees. Thus, staff requested that RE /MAX Synergy insert the following language into the Contract, line 117, Other: Notwithstanding any provision apparently to the contrary in this Agreement, the parties agree that Broker shall not make any inquiries or other proactive contact as a representative of Buyer; to owners of properties in the City of Columbia Heights who are not actively listing their property. For purposes of this Agreement, "inquiries or other proactive contact" means unsolicited letters or other written or oral communications directed to property owners to gauge their interest in selling theirproperty or to inform such oumers that Buyer is a potential purchaser of their property. RE /MAX Synergy has agreed to insert the aforementioned language into Contract. If the EDA Commission Members agree to the Contract as presented, approval of Resolution 2017 -18 will effectively enter the EDA into a contract with RE /MAX Synergy; authorize staff to take all actions necessary to perform the obligations of the EDA in said contract; and authorize Re /MAX Synergy to respond to active listings within the City and make fair market value offers of up to $200,000 on the behalf of the EDA. Questions by Members: Buesgens asked if Dahl knew what the average value of the properties were. Dahl stated he was uncertain what the average was. Herringer inquired if it was likely under $200,000. Dahl stated he believed that was correct. 45 EDA Minutes Page 6 July 10, 2017 Herringer inquired about line 15 in the contract where it states "Buyer shall cooperate with Broker in finding a property to purchase ", and wanted to know if that could put us in a position of getting involved in relocation assistance if we are picking out properties. Dahl stated that from what the attorney tells us, because we will be working with our broker, it does not put us in a position of getting involved in relocation assistance. The broker cannot actively reach out to an individual to let them know we are interested in the property. Dahl stated we would have to be "reactionary" versus proactive in our role. Fehst stated this was a concern for him as well, and inquired as to what attorney reviewed the document. Dahl stated the document was reviewed by Attorney, Martha Ingram. Fehst emphasized that was one thing we do not want to do and inquired if there was a way to reword that somehow to make it clear that the initial contact is something that comes from the listing or somehow. Dahl inquired if Fehst was suggesting we omit that line. Herringer stated his concern is that we do not want to look like we are hustling properties and should keep an "arms length" as best we can. Schmitt stated her interpretation was that it was just referring to the fact that they can look on the MLS listing because they are going to be searching on that listing anyway. Dahl introduced John Rockwell, representative with Re /MAX Synergy. Rockwell referenced Page 4, lines 117 -123, which states the Broker cannot make any inquiries or do anything of that nature. Rockwell stated the contract that was drafted is a State approved form and they did not want to draft a form and start changing the language of the existing form, as once you do this, it starts putting up red flags. Rockwell stated when he first received the revisions back from Dahl and interpreted what the City wanted in the paragraph, it was their interpretation that this paragraph supercedes the other clause; in that they cannot send out any solicitations. All they can essentially do is monitor the marketplace and provide that information to Dahl. Rockwell stated while this can be a disadvantage to the City, at the same time, he understands their need to protect themselves. Buesgens asked if ZAMA covers properties that are For Sale by Owner. Rockwell stated this was a gray area. Buesgens inquired if Rockwell thought anyone would list their home out on Craig's list. Rockwell stated it depends on the individual. HerTinger thought , in his opinion, that might be the way they would try to sell these homes. Rockwell cautioned the fact that with the $200,000 price tag, sellers are going to look at the Central Avenue Corridor and try to put a premium on it and that will be dictated by what the Fair Market Value is. A lot of the homeowners are going to think that because it is on Central Avenue and located in a commercial district that their home is probably worth more than it really is, and that is something they will have to monitor as well. Dahl also mentioned that attorney Ingram's counter -part, a Real Estate attorney, reviewed the contract specifically for the Federal Relocation Act, and he was comfortable with the verbage with the paragraph that was added at the end. Motion by Williams, seconded by Buesgens, to waive the reading of Resolution 2017 -I8, there being ample copies available to the public. Roll call: All Ayes. MOTION PASSED. 46 EDA Minutes Page 7 July 10, 2017 Motion by Williams, seconded by Novitsky, to adopt Resolution 2017 -I8, Resolution Approving the Buyer representation contract with Re /Max Synergy. Roll call: All Ayes. MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2017-18 RESOLUTION APPROVING BUYER REPRESENTATION CONTRACT WITH RE/MAX SYNERGY Section 1. Recitals. 1.01. The Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority (the "Authority") is authorized under Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA Act ") to purchase and convey property within its area of operation for economic development purposes. 1.02. The Board has detennined that it is necessary and desirable to retain the services of a real estate broker for purposes of monitoring properties within the City of Columbia Heights (the "City") that are nonconforming under the current City zoning code and that may become available for sale from time to tune, in order to potentially make offers for such property based on then- current market values. 1.03. The Board has received proposals from real estate brokers, and has determined to enter into the Buyer's Representation Contract (the "Broker's Agreement ") proposed by Re /Max Synergy (the "Broker ") in substantially the form presented to the Board. 1.04. The Board expressly fords and determines that authorizing the Broker to respond to active listings and develop offers pursuant to the Broker's Agreement does not imply any exercise any power of eminent domain that may be available to the Authority pursuant to the EDA Act, and that the EDA will not exercise such power in pursuing the acquisition of any nonconforming property under the Broker's Agreement. Section 2. Approval of Broker's Agreement. 2.01. The Authority hereby approves the Broker's Agreement in substantially the fonn presented, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Broker's Agreement by such officials shall be conclusive evidence of approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Broker's Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Broker's Agreement. 2.03. The Board hereby authorizes the Broker to respond to active listings within the City, and to snake fair market value offers of up to $200,000 on the Authority's behalf without prior fonnal approval of such offers by the Board, subject to ratification of such offers by the Authority if accepted by the seller of the property. Adopted by the Columbia Heights Economic Development Authority this 10th of July, 2017. 47 EDA Minutes Page 8 July 10, 2017 NEW ITEMS 1. Consideration of 47th and Grand TIF District On May 22, 2017, after the request of the Columbia Heights Economic Development Authority (the "EDA "), the City of Columbia Heights (the "City ") City Council called for a public hearing in regards to the establishment of the 47th and Grand Tax Increment Financing District (collectively referred as the "TIF Plan "). Before or at the time of the public hearing and pursuant to State Statue 469.175, Subd 3, the City is required to make certain findings of fact related to the TIF Plan. Since the EDA is the authority authorized within the City to exercise TIF powers, the EDA is the authority required to make said findings of fact. Thus, the consideration of the TIF Plan by the EDA is required prior to the public hearing scheduled for tonight at the City Council meeting. Please note: the TIF Plan is merely a planning document that reflects the full length of the proposed TIF district; it in no way constitutes the term length or dollar amount of the proposed TIF district. The term length and dollar amount would be part of a separate document, the Contract for Private Redevelopment (the "Agreement "). And, if the City Council approves the TIF Plan at the public hearing, that Agreement would be considered by the EDA at the next regularly scheduled meeting on August 7, 2017. Dominium has requested TIF assistance to offset qualified costs related to the development of the proposed affordable multi - family, workforce housing project (the "Proposed Development ") on the corner of 47th and Grand Avenue located at 1069 Grandview Court NE and 4729 Grand Avenue NE, Columbia Heights (the "Subject Property7). The Proposed Development would consist of an estimated 173 units, all of which would be affordable to households with incomes at or below sixty percent (60 %) of the area median income (the "AMI "). The AMI is the midpoint of a region's income distribution; half of the households in a region earn more and half earn less. The US Department of Housing and Urban Development calculates, these different levels of AMI for regions across the country by household size. In 2017, the Twin Cities 60% AMI has been defined as follows: The Subject Property is comprised of 4.93 acres of vacant, undeveloped land zoned as Transit Oriented Mixed -Use Development. The City has identified three mixed -use districts in an effort to differentiate the three types of development: Transit Oriented Development, Community Center Development, and Transitional Development. Transit Oriented Mixed -Use Development is defined as an area within the City that promotes interaction between medium to high density housing; transit facilities; and neighborhood services, such as restaurants, retail and office space. The main focus of this district is to accommodate affordable housing for the workforce of the community, but also to ensure a pedestrian friendly enviromnent that increases non - motorized modes of transportation. On July 5, 2017, the Planning and Zoning Commission in and for the City (the P &Z) met and reviewed the proposed TIF Plan to determine if it conformed to the general plans for the development and redevelopment of the City. The P &Z unanimously determined that the proposed TIF Plan aligned with numerous goals and policies adopted by the City in the Comprehensive Plan, many of which conform to the development requirements of the Transit Oriented Mixed -Use Development District. Originally, Dominium requested TIF assistance in the amount of $2.977 million over the course of 20 years. Neither City staff nor Ehlers, the financial consultant of the City, determined that a 20 year TIF district period would be necessary for the Proposed Development to become financially feasible or in the best interest of the City. Bagsed on the EDA Minutes Page 9 July 10, 2017 analyses conducted, City staff, Ehlers and Dominium are in consensus that TIF assistance in the amount of $1,817,707 over 12 years accounting for a 4% inflation rate would be substantially sufficient for the Proposed Development to proceed. Before the EDA tonight is consideration of three (3) resolutions; Resolution 2017 -19, a resolution de- certifying parcels of land incorporated in the previous K- Mart/Central Avenue TIF District; Resolution 2017 -20, a resolution adopting the TIF Plan for the 47 and Grand TIF District; and Resolution 2017 -21, a resolution authorizing an interfund loan for the EDA to be reimbursed for qualified costs from the TIF District. Dahl introduced James Lenhoff, consultant with Ehlers, who explained that the actions before the EDA tonight are not approving any sort of obligation associated with the project itself. It is for the creation of the TIF Plan and the TIF District itself so the tool is available. It is the private redevelopment, tentatively scheduled for the EDA meeting in August, where it actually lays out what the assistance of the project will be. Lenhoff explained the proposed TIF District will have 3 parcels that are located inside a different TIF District today. There has been no activity on those parcels so they can be removed out of that district, but in order to do that, and create a new district, the EDA must pass a Resolution to decertify those parcels out of that district as a parcel(s) cannot be in two districts at once. This has been reviewed by the City Attorney and it is recommended the Resolution be approved. Lenhoff explained the second Resolution is the proposal to adopt a modification to the development program for the Downtown Central Business Redevelopment District to establish the 471 and Grand Tax Increment Finance District. It is this action that actually creates and adopts the TIF Plan and TIF District itself, but is not to be confused with the Re- development Contract with Dominium. This particular action would create a new housing TIF District for up to the statutory maximum of 26 years. At least 40 percent of the units must be affordable to households earning 60 percent of AMI or less. This means in 2017 rents for a one bedroom cannot exceed about $1017 per month, two bedroom $1220 per month and rents for a three bedroom about $1400.00 per month which is updated yearly by HUD. The TIF Plan also sets out a maximum project budget which provides the flexibility for the City in how the funds in TIF District can be used and does not correspond to the dollars that may go to the project itself. It is a planning document, not the assistance document. Related to the assistance document, that will come forward in August in the Development Agreement, a keypart to that is the proforma analysis and the key aspect there is that they are passing the "but for" test. If "but for" this assistance, the project would not be able to move forward. Dominiuin was originally requesting approximately 20 years of assistance right around $2,000,000. Based on our review and detailed analysis, we came to the conclusion that no more than 12 years of assistance and about 1.482 million would be appropriate for the project and Dominium is in agreement with that number. The Development Agreement next month will also discuss that it is a pay as you go and the money is not provided up front to the project. It is only received after the project is completed to City expectations, to the Planning documents that are approved, and they have started paying property taxes, it is done in incremental fashion over the next 12 years. That will come forward in August and all business provisions that go along with that will be reviewed at that time. The Planning and Zoning Commission reviewed the TIF Plan proposal at their July 511,, 2017 meeting and found it to be in conformance with the City's Comprehensive Plan. The City has completed all required notifications including to the School District and Anoka County and have issued the proper Public Hearing Notices for the City Council meeting tonight. The proposal and documentation has been reviewed by the City Attorney and has been found to be in conformance with State Statutes. It is ultimately subject to a Public Hearing with City Council tonight even after taken here. 49 EDA Minutes Page 10 July 10, 2017 The final Resolution authorizes an inter -fund loan for advance in some of the costs associated with the TIF District. The Developer ultimately is expected to cover all of the costs the City incurs to create this TIF District and they have deposited an amount with the City to draw from to cover those costs. It is always recommended the City pass this inter -fund loan resolution so that if there is an additional cost that hasn't been reimbursed yet or comes at a later date, it allows the city to log that cost and ultimately get reimbursed through the TIF District itself. This makes sure the City does not incur costs and allows the inter -fund resolution of up to $25,000 which is typical. Questions by Members: Herringer questioned if Dominion does not move forward with this project, is the work that has been done to create this TIF District, only for this project. Lenhoff explained if for some reason Dominium decided not to move forward, for whatever reason, the work is not totally lost. It could be used for someone else who wanted to develop the site as a "housing" project with that minimum level of affordability, or it could be modified for another potential housing project. However, if a Developer came in with a Commercial or Industrial project, this type of district would not work. Lenhoff further explained that essentially, Dominium has 4 years to get a project started. If it is not started within that timeframe then it would be decertified. Schmitt stated to members that Lenhoff would be present and available for questions at the City Council meeting following the EDA meeting. Dahl also wanted to explain that the $1,817,707 dollars over the next 12 years accounts for a 4 percent inflation rate, but since that can't be considered, the amount will be substantially smaller in the EDA Contract at $1,482,000. Lenhoff clarified the plan assumes there will be inflation, but for the Development Agreement, inflation is generally not included, as it provides more flexibility to the City not to include it. Motion by Buesgens , seconded by Murzyn, to waive the reading of Resolution 2017 -19, there being ample copies available to the public. Roll call: All Ayes. MOTIONPASSED. Motion by Buesgens , seconded by Herringer, , to adopt Resolution 2017 -19, Resolution Approving the elimination of parcels firom the K -Mart/ Central Avenue Tax Increment Financing District (County Identifier T4) within the Central Business District Redevelopment Project in the City of Columbia Heights. Roll call: All Ayes MOTIONPASSED. 50 EDA Minutes Page 11 July 10, 2017 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CITY OF COLUMBIA HEIGHTS ANOKA COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017 -19 RESOLUTION APPROVING THE ELIMINATION OF PARCELS FROM THE K- MART /CENTRAL AVENUE TAX INCREMENT FINANCING DISTRICT (COUNTY IDENTIFIER T4) WITHIN THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT IN THE CITY OF COLUMBIA HEIGHTS. WHEREAS, on September 22, 2003, the City of Columbia Heights (the "City ") created its K- Mart /Central Avenue Tax Increment Financing District (County Identifier T4) (the "TIF District ") within its Central Business District Redevelopment Project (the "Project ") by approval of a tax increment financing plan (the "TIF Plan) for the TIF District; and WHEREAS, the Columbia Heights Economic Development Authority (the "EDA ") is the administrative authority for the TIF District; and WHEREAS, the following properties, by property identification number, were included in the TIF District: 25- 30 -24 -32 -0064 25- 30 -24 -32 -0065 25- 30 -24 -32 -0072 WHEREAS, the EDA desires by this resolution to amend the TIF Plan to remove the above - described parcels from the TIF District, thereby reducing the size thereof; and WHEREAS, the total current net tax capacity of the parcels to be eliminated from the TIF District equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity and, therefore this amendment to the TIF Plan is accomplished pursuant to Minnesota Statutes, Section 469.175, Subdivision 4, clause (e)(2)(A). NOW THEREFORE, BE IT RESOLVED that the TIF Plan for the TIF District is hereby amended to remove the described parcels and the Executive Director is authorized and directed to notify the County Auditor thereof pursuant to Minnesota Statutes, Section 469.175, Subdivision 4, clause (e). ADOPTED: July 10, 2017 Vice President ( Seal) Secretary 51 EDA Minutes Page 12 July 10, 2017 Motion by Buesgens , seconded by Murzyn, to waive the reading of Resolution 2017 -20, there being ample copies available to the public. Roll call: All Ayes. MOTIONPASSED. Motion by Buesgens , seconded by Novitsky, to adopt Resolution 2017 -20, a Resolution adopting the modification to the Development Program for the Downtown Central Business Redevelopment Project, establishing the 471 and Grand Tax Increment Financing District therein, and adopting a Tax Increment Financing Plan therefore. Roll call: All Ayes MOTIONPASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CITY OF COLUMBIA HEIGHTS ANOKA COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017-20 RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR THE DOWNTOWN CENTRAL BUSINESS REDEVELOPMENT PROJECT, ESTABLISHING THE 47TH AND GRAND TAX INCREMENT FINANCING DISTRICT THEREIN, AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. WHEREAS, it has been proposed by the Board of Commissioners (the "Board ") of the Columbia Heights Economic Development Authority (the "EDA ") and the City of Columbia Heights (the "City ") that the EDA adopt a Modification to the Development Program (the "Development Program Modification ") for the Downtown Central Business Redevelopment Project (the "Project "), establish the 47th and Grand Tax Increment Financing District (the "District ") within the Project and adopt a Tax Increment Financing Plan (the "TIF Plan ") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program and Plan "), all pursuant to and in conforinity with applicable law, including Minnesota Statutes, Sections 469.090 to 469.1081, and Sections 469.174 to 469.1794, inclusive, as amended (the "Act "), all as reflected in the Program and Plan and presented for the Board's consideration; and WHEREAS, the EDA has investigated the facts relating to the Program and Plan and has caused the Program and Plan to be prepared; and WHEREAS, the EDA has performed all actions required by law to be performed prior to the adoption of the Program and Plan. The EDA has also requested the City Planning Commission to provide for review of and written comment on Program and Plan and that the Council schedule a public hearing on the Program and Plan upon published notice as required by law. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: The EDA hereby finds that the District is in the public interest and is a "housing district" under Section 469.174, Subd. 11 of the Act, and finds that the adoption of the proposed Program and Plan conforns in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State of Minnesota for affordable and high quality housing. 2. The EDA further finds that the Program and Plan will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the Project Area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible. EDA Minutes 52 Page 13 July 10, 2017 3. The boundaries of the Project are not being expanded. 4. The reasons and facts supporting the findings in this resolution are described in the Program and Plan. 5. The EDA elects to calculate fiscal disparities for the District in accordance with Section 469.177, Subd. 3, clause b of the Act, which means the fiscal disparities contribution will be taken from inside the District. It is not anticipated that the District will contain commercial /industrial property. As a result, there should be no impact on the District due to the fiscal disparities provision. 6. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Program and Plan, as presented to the EDA on this date, are hereby approved, established and adopted and shall be placed on file in the office of the Executive Director of the EDA. Upon approval of the Program and Plan by the City Council, EDA staff, advisors and legal counsel are authorized and directed to proceed with the implementation of the Program and Plan and for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Program and Plan does not constitute approval of any project or a development agreement with any developer. 8. Upon approval of the Program and Plan by the City Council, the Executive Director of the EDA is authorized and directed to forward a copy of the Program and Plan to the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Section 469.175, Subd. 4a of the Act. The Executive Director of the EDA is authorized and directed to forward a copy of the Program and Plan to the Anoka Auditor and request that the Auditor certify the original tax capacity of the District as described in the Program and Plan, all in accordance with Section 469.177 of the Act. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority on July 10, 2017. Vice President ATTEST: Secretary Motion by Buesgens, seconded by Herringer, to waive the reading of Resolution 2017 -21, there being ample copies available to the public. Roll call. All Ayes. MOTIONPASSED. Motion by Buesgens, seconded by Novitsky, to adopt Resolution 2017 -21, a Resolution authorizing an interfund loan for advance of certain costs in connection with the 47" and Grand Tax Increment Financing District. Roll call: AllAyes MOTIONPASSED. 53 EDA Minutes Page 14 July 10, 2017 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ANOKA COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017 -21 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE 4T, AND GRAND TAX INCREMENT FINANCING DISTRICT. BE IT RESOLVED by the Board of Commissioners (the "Board ") of the Columbia Heights Economic Development Authority (the "Authority "), as follows: Section 1. Background. 1.01. The City and Authority have heretofore approved the establishment of the 47 and Grand Tax Increment Financing District (the "TIF District ") within the Downtown Central Business Redevelopment Project (the "Project "), and have adopted a Tax Increment Financing Plan (the "TIF Plan ") for the purpose of financing certain improvements within the Project, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "Act "). The Authority administers the TIF District. 1.02. The Authority has determined to pay for certain costs identified in the TIF Plan consisting of land/building acquisition, site improvements /preparation, public utilities, other qualifying improvements, interest and administrative costs (collectively, the "Qualified Costs "), which costs may be financed on a temporary basis from City or Authority funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the Authority is authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. 1.04. The Authority intends to reimburse itself for the Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (which terns are referred to collectively as the "Interfund Loan "). Section 2. Terns of Interfund Loan. 2.01. The Authority hereby authorizes the advance of up to $25,000 from the Economic Development fund or so much thereof as may be paid as Qualified Costs. The Authority shall reimburse itself for such advances, together with interest at the rate stated below, from Available Tax Increment (as defined in Section 2.03). Interest accrues on the principal amount from the date of each advance. The maximum rate of interest pennitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. 2.02. Principal and interest ( "Payments ") on the Interfund Loan shall be paid semi- annually on each August 1 and February 1 (each a "Payment Date "), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the Executive Director, through the date of last receipt of tax increment from the TIF District, 2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the Executive Director, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the Authority by Anoka County all in accordance with the Act. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or 54 EDA Minutes Page 15 July 10, 2017 contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre- payable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the Authority in accordance with Section 469.178, Subd. 7 of the Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City or Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The Authority may amend the terms of this Interfund Loan at any time by resolution of the Board, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. Adopted by the Board of Commissioners of the Columbia Heights Economic Development Authority on July 10, 2017. Executive Director OTHER BUSINESS: There was no other business. The meeting was adjourned at 7:07 pm. Respectfully submitted, Jodi Griffin Acting Secretary ATTEST: Secretary 55 HOUSING & REDEVELOPMENT AUTHORITY MINUTES OF THE MEETING OF FEBRUARY 13, 2017 1. Call to order — The meeting was called to order by Chair Murzyn at 8:10 pm. 2. Roll Call — Members present: Donna Schmitt, Bobby Williams, John Murzyn Jr., and Connie Buesgens. Others Present: Executive Director Walt Fehst, Deputy Director Joe Hogeboom, and HRA Attorney Martha Ingram. 3. Approve Minutes from August 1, 2016 and January 9, 2017. Motion by Buesgens, seconded by Schmitt, to approve the minutes from August 1, 2016 and January 9, 2017 as presented. All ayes. MOTIONPASSED. BUSINESS ITEM 4. Amended and Restated Collateral Assignment of Note and Mortgage in Connection with the terms of Conveyance of Parkview Villa - Resolution 2017 -02. HRA Attorney Martha Ingram was present to discuss the memorandum included in the packet and copied below. As the memorandum explains, Aeon's legal counsel recently approached HRA staff regarding a request to correct a perceived error in the Collateral Assignment of Note related to the sale of Parkview Villa. Attorney Ingram explained the situation, and asked the HRA to consider approval of Resolution 2017 -02. Copy of the Memo and the Amended and Restated Collateral Assignment of Note and Mortgage: MEMORANDUM To: Housing and Redevelopment Authority for Columbia Heights, Minnesota From: Martha Ingram, Kennedy & Graven Re: Parkview Villa Matters Date: January 31, 2017 On September 24, 2015, the Housing and Redevelopment Authority for Columbia Heights, Minnesota (the "Authority ") sold the HUD - supported multifamily rental housing facility known as Parkview Villa (the "Facility ") to Aeon, a nonprofit housing organization ( "Aeon "). A portion of the purchase price for the Facility was deferred by means of a promissory note in the amount of $6,585,000 given, to the Authority by Aeon (the "Aeon Note "), secured by a collateral assignment (the "Assignment ") of a promissory note (the "Partnership Note ") and mortgage (the "Mortgage ") given to Aeon by its limited partner, Parkview Limited Partnership (the "Partnership "), which is the entity that actively 491940v1 MNI CL160 -82 56 manages the Facility. The Aeon Note does not bear interest. However, the Partnership Note bears interest at the rate of 2.64% per annum. The Partnership Note is structured as a cash -flow note and is subject to the terms of a Master Subordination Agreement between Aeon, the Partnership, the Minnesota Housing Finance Agency, and the Authority (the "Subordination Agreement "). Pursuant to the Subordination Agreement, interest payments are only due and payable on the Partnership Note if there is sufficient Cash Flow (defined as the excess of any income to the Partnership remaining after Partnership expenses are made) after all required payments under all senior loans are made. To date, no Net Cash Flow has been available to make interest payments on the Partnership Note. At the time Aeon executed the Aeon Note and Assignment, the stated intent of Aeon and the Partnership was that any interest payments actually made on the Partnership Note would be retained by Aeon and used to support services and operations benefiting the Facility, particularly Resident Connections, Aeon's in -house support service team. According to an Aeon representative, Resident Connections provides community engagement and eviction prevention services to residents of the Facility, as well as connections to community services. In addition to the support for Resident Connections, interest payments would also potentially be used to support the general operations of the Facility, such as maintenance and repair and additional staffing needs. Aeon discussed this use of the hypothetical interest payments with Authority staff and legal counsel at the time the Facility was conveyed. Aeon's legal counsel recently approached Authority staff and Kennedy & Graven with a request to inform the Authority that as currently drafted, paragraph 7 of the Assignment provides that if and to the extent that Aeon receives payments of interest under the Partnership Note, those payments will be held in trust for the benefit of the Authority, and will be paid over to the Authority to be applied to the principal payable under the Aeon Note. Given the stated intent of Aeon to retain any interest payments from the Partnership Note for the uses outlined above, counsel to Aeon believes that this provision was the result of an error in drafting of the Assignment. Counsel to Aeon has requested that the Authority agree to enter into an Amended and Restated Collateral Assignment of Note and Mortgage, which would modify the language of paragraph 7 so that Aeon would be allowed to collect interest payments under the Partnership Note as originally contemplated. The proposed Amended and Restated Collateral Assignment, with the proposed changes highlighted in blue, is attached as Exhibit A to this memo. The Board of Commissioners will be requested to adopt a resolution approving the Amended and Restated Collateral Assignment at its meeting on February 6, 2017. If you have any questions about this matter, please do not hesitate to contact me at the number above. 491940vl MINI CL160 -82 57 Exhibit A AMENDED AND RESTATED COLLATERAL ASSIGNMENT OF NOTE and MORTGAGE THIS AMENDED AND RESTATED COLLATERAL ASSIGNMENT OF NOTE AND MORTGAGE (the "Assignment ") is signed on this day of February 2017, but made effective as of the 24th day of September, 2015, by AEON, a Minnesota nonprofit corporation (the "Borrower "), in favor of the HOUSING AND REDEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, a public body corporate and politic and political subdivision of the State of Minnesota (the "HRA "). WHEREAS, Borrower has provided to HRA a certain Promissory Note dated as of September 24, 2015, pursuant to which Borrower promises to pay to HRA the principal sum of $6,585,000 in accordance with the terms thereof (the "Note "); and WHEREAS, to secure payment and perfonmance of the obligations of Borrower under the Note, HRA has required that Borrower execute and deliver to HRA this Assignment to collaterally assign to HRA Borrower's right, title and interest in and to (a) that certain Promissory Note dated September 24, 2015, made by Parkview Limited Partnership, a Minnesota limited partnership ( "Partnership ") to the order of Borrower in the original principal amount of $6,585,000 (as it may be amended, restated, replaced or otherwise modified from time to time, the "Partnership Note "); and (b) that certain Mortgage, dated September 24, 2015, executed and delivered by Partnership and filed for record on or about the date hereof, with Anoka County Office of Registrar of Titles and Office of the Recorder, securing the Partnership Note and covering, among other things, real estate legally described on Exhibit A attached hereto and hereby made a part hereof (as it may be amended, restated, replaced or otherwise modified from time to tune, the "Partnership Mortgage "). NOW THEREFORE, in consideration of the foregoing, for and in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower agrees as follows: 1. Collateral Assigmnent. Borrower hereby collaterally assigns and transfers to HRA, and grants a security interest in, all right, title and interest of Borrower in and to the Partnership Note and the Partnership Mortgage (collectively, the "Pledged Documents "), including all cash, proceeds, interest or other income or property, accrued and hereafter accruing, received, receivable or otherwise distributed in respect of, in exchange for or upon the sale or other disposition of the Pledged Documents, for the purpose of securing the Note. 2. Perfonnance of Obligations. Borrower agrees to promptly, faithfully and diligently observe, perform and discharge each and every tenn, condition, obligation, covenant and agreement which Borrower is now, or hereafter becomes, liable to observe, perform or discharge under this Assignment and the Pledged Documents; to give prompt written notice to HRA of any notice of default received by Borrower under the Pledged Documents on the part of any party thereunder, together with an accurate and complete copy of any such notice; and, at the sole cost and expense of Borrower, to enforce or secure the performance of each and every obligation, covenant, condition and agreement to be performed by Partnership under any of the Pledged Documents. 3. Actions Arising out of the Pledged Documents. Borrower shall, at Borrower's sole cost and expense, appear in and defend any dispute, action or proceeding against Borrower or HRA arising under, growing out of or in any manner connected with or affecting any of the Pledged Documents, or the obligations, duties or liabilities of Borrower or Partnership thereunder, and shall pay all costs and expenses of HRA, including attorneys' fees (prior to trial, at trial and on appeal) in connection with any such dispute, action or proceeding in which HRA may appear or with respect to which it may otherwise incur costs or expenses, whether or not HRA prevails therein. 491940vl MNI CL160 -82 58 4. HRA's Right to Perform. Should Borrower fail to make any payment or to do any act as herein provided, then HRA may, but without obligation to do so, without notice or demand to or upon Borrower, and without releasing Borrower from any obligation hereof, make or do the same in such manner and to such extent as HRA may deem necessary or desirable to protect the security hereof, including specifically, without limiting its general powers, appearing in and defending any action or proceeding purporting to affect the security hereof or the rights or powers of HRA, and observing, performing and discharging all or any of the obligations, covenants and agreements of Borrower in the Pledged Documents. In exercising any such powers, HRA may pay its costs and expenses, employ counsel and incur and pay reasonable attorneys' fees (prior to trial, at trial and on appeal). Borrower hereby grants to HRA an irrevocable power of attorney, coupled with an interest, to perform all of the acts and things provided for in this section as Borrower's agent and in Borrower's name. 5. No Modification Without Consent. Each of Borrower and Partnership agrees not to modify, amend, extend, waive, subordinate or in any manner alter the terns of either of the Partnership Note or the Partnership Mortgage, or reduce the indebtedness secured thereby; not to waive, excuse or condone any default by the other party under either of the Partnership Note or the Partnership Mortgage; and not to in any manner release or discharge the other party of or from any obligation, covenant, condition or agreement by Partnership or Borrower, as applicable, to be performed under either of the Partnership Note or the Partnership Mortgage. Any attempt on the part of Borrower or Partnership to exercise any such right, power or authority without the prior written consent of HRA shall be a nullity and shall be a default hereunder. 6. Borrower's Representations, Warranties and Covenants. Borrower represents and warrants to HRA that: a. Borrower has good right and lawful authority to grant, transfer, set over and assign the Pledged Documents to HRA. b. This Assignment has been duly authorized, executed and delivered by and on behalf of Borrower so as to constitute the valid and binding obligations of Borrower, enforceable in accordance with the terms hereof. C. Borrower has not performed or committed any act or executed any instrument, and is not bound by any law, statute, regulation, order, pledge agreement, indenture, contract or agreement, which might prevent HRA from operating under any of the terms and conditions hereof, or which would limit HRA in such operation. d. Borrower has not executed or agreed to, shall not execute or agree to, and shall not permit to occur by operation of law any other assignment, alienation, pledge, encumbrance or transfer of any its of right, title or interest in, to or under any of the Pledged Documents. e. The Pledged Documents are in full force and effect; neither of the Pledged Documents has been amended or modified; and there is no default by Borrower nor by Partnership now existing under any of the Pledged Documents, nor has any event occurred which, with the passage of time and /or the giving of notice, would constitute a default thereunder. f. Borrower has delivered or will deliver to HRA fully executed originals of the Pledged Documents, and such documents have not been modified, amended or canceled. g. The Pledged Documents each constitute a valid, genuine and legally enforceable obligation, subject to no defense, set off or counterclaim of Partnership. 491940vl MNI CL160 -82 59 h. The Partnership Mortgage has been duly executed and delivered, and will be recorded or otherwise properly perfected in Anoka County, Minnesota. i. The outstanding principal balance on the Partnership Note as of the date hereof of is $6,585,000. 7. Present Assignment. Subject to the terns and conditions set forth herein, this is a perfected, absolute and present assignment by Borrower to HRA of the Pledged Documents. During the pendency and effectiveness of this Assignment: (a) Borrower is pennitted to collect and receive, as and when due and payable or otherwise, all payments of interest due under the Partnership Note; and (b) Borrower shall have no authority to collect or receive, as and when due and payable or otherwise, any payments of principal,, inter-est or other sums due under the Partnership Note other than payments of interest, and any and all such payments of principal or other suns (other than interest) ar other- sui if and to the extent so received by Borrower shall be held in trust by Borrower for the benefit of HRA, and shall be promptly paid over and delivered by Borrower to HRA to be applied to the secured obligations. At any time after the occurrence and during the continuance of an Event of Default (as defined below), Borrower hereby authorizes and directs Partnership to pay amounts secured by the Partnership Mortgage directly to HRA in an amount up to the amount of the secured obligations. Failure of HRA to collect, or discontinuance by HRA from collecting, at any time, and from time to time, any amounts secured by the Partnership Mortgage shall not in any manner affect the rights of HRA to thereafter collect the same. Borrower hereby authorizes HRA to file UCC financing statements and amendments to financing statements with respect to the Pledged Documents consistent with the terms of this Agreement in such form and substance as HRA, in its sole discretion, may detennine. 8. Events of Default. The occurrence of one or more of the following shall constitute an "Event of Default" within the meaning of this Assignment, provided, however, that such event shall not be an Event of Default unless and until written notice of such failure shall have been given to Borrower and such failure shall not have been cured before expiration of (i) the period of thirty (30) days next following the giving of such notice or (ii) if cure cannot reasonably be effected within such thirty (30) day period, then such longer period as shall be reasonably needed to cure such event if Borrower timely commences cure and diligently prosecutes cure to completion: a. Borrower shall fail to abide or observe any term or condition of this Assignment, or any representation made by Borrower was materially false when made; b.. an event of default shall occur under the Note, or any of the other related documents (together with the Note, the "HRA Loan Documents "), or Borrower shall otherwise fail to abide by the terns and conditions of any of the HRA Loan Documents; C. a petition commencing a proceeding under the United States Bankruptcy Code or any similar state law is filed by or against Borrower; or a receiver, custodian, assignee, or trustee is appointed for Borrower or any of their respective assets; or d. any third party seizes or pursues repossession, foreclosure, replevin or liquidation of any property of Borrower. 9. HRA Rights Upon Default. a. Upon or at any time after the occurrence of any Event of Default under this Assignment, HRA may, at its option, but without obligation to do so, and without notice to or consent of Borrower, sell, assign or transfer to itself or any third party purchaser all of Borrower's right, title and interest in, to 491940vl MNI CL160 -82 60 and under the Pledged Documents subject to the terns and conditions hereof; make, execute, enforce, modify, alter, cancel, release or satisfy the Partnership Mortgage, in its own naive or in the name of Borrower; and /or pursue all other remedies available at law or in equity, including all remedies available under the Uniform Commercial Code. Borrower shall in every way facilitate the transfer of its interests in, to and under the Partnership Mortgage and the proceeds of the Partnership Note, including without limitation executing and recording any and all additional instruments necessary to evidence the transfer of the Pledged Documents. Borrower hereby grants to HRA an irrevocable power of attorney, coupled with an interest, to perform all of the acts and things provided in this section as Borrower's agent and in Borrower's naive. b. If any Event of Default shall occur, then HRA may, at its option, declare the secured obligations due and payable as set forth in the Note and other HRA Loan Documents, and, in addition to making available to HRA any remedies for default herein set forth, such Event of Default shall, at HRH's option, constitute and be deemed to be an event of default under the Note and other HRA Loan Documents, entitling HRA to every and all rights and remedies therein contained, in addition to those rights and remedies herein set forth, without regard to the adequacy of security for the indebtedness secured hereby, the commission of waste or the insolvency of Borrower. 10. Release Upon Payment in Full. Upon the payment in full of the Note, this Assignment shall become and be void and of no further effect and, upon request of Borrower, HRA shall execute a release hereof or an assigmnent to Borrower of the Pledged Documents. 11. Construction According to Applicable Law. All rights, powers and remedies provided herein may be exercised only to the extent that the exercise thereof does not violate any applicable law, and they are intended to be limited to the extent necessary so that they will not render this Assignment invalid, unenforceable or not entitled to be recorded, registered or filed under any applicable law. If any tern of this Assignment shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the other terms hereof shall be in no way affected thereby. HRA shall be entitled to all rights and remedies available under this Assignment, under the Note, under the other HRA Loan Documents, at law, in equity or under any statute in existence now and/or at the time of exercise thereof, even though such rights and remedies were not available on the date first above written, and all such rights and remedies may be exercised at any time and from time to time concurrently, separately, successively and in any order of preference, at HRA's sole discretion. 12. Successors and Assigns. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Borrower, Partnership and HRA. 13. Additional Security. HRA shall not be required to resort first to the security of this Assignment or of any of the other HRA Loan Documents before resorting to the security of the other, and HRA may exercise its rights hereunder, under this Assignment and any of the other HRA Loan Documents concurrently or independently and in any order of preference; all rights and remedies of HRA set forth herein, in the Note, any of the other HRA Loan Documents, at law, in equity, under statute and by contract being cumulative. No failure by HRA to avail itself of any of the ternis, covenants or conditions of this Assignment for any period of time shall be deemed to constitute a waiver thereof. 14. Notices. Any notice or other communication to any party in connection herewith shall be deemed to have been given on the date the same is deposited in the United States snail, registered or certified, return receipt requested, postage prepaid, or deposited with Federal Express, Airborne or another reputable overnight carrier, addressed to the party to which the notice is to be given at the address 491940vl MNI CL160 -82 61 specified below, or at such other address as such party shall have specified to the other party hereto in writing and not less than ten (10) days prior to the effective date of the address change: To Borrower: Aeon Attn: Eric Schnell, Chief Operating Officer 901 North Third Street, Suite 150 Minneapolis, MN 55401 With a copy to USBCDC: U.S. Bancorp Coimmunity Development Corporation Attn: Director of LIHTC Asset Management 1307 Washington Avenue, Suite 300 St. Louis, Missouri 63103 To HRA: Columbia Heights HRA Attn: Executive Director 590 40'b Avenue Northeast Columbia Heights, Minnesota 55421 15. Governing Law, Waiver of Jury. This Assignment, the rights of the parties hereunder and the interpretation hereof shall be governed by, and construed in accordance with, the laws of the State of Minnesota, in all respects. Any disputes related to this Assignment or any of the other Loan Documents shall be resolved in either Hennepin County, Minnesota or the United States District Court, District of Minnesota. THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY AND ANY RIGHT EACH MAY HAVE TO OBJECT TO PERSONAL JURISDICTION, ASSERT THE DOCTRINE OF FORUM NON CONVENIENS, OR OBJECT TO VENUE ON ANY BASIS WHATSOEVER IN ANY ACTION ARISING FROM OR RELATING TO THIS ASSIGNMENT. 16. Further Assurances. Borrower shall, at the request of HRA, at any time and from time to time following the execution of this Assignment promptly execute and deliver, or cause to be executed and delivered, to HRA all such further documents and instruments and take all such further action as may be reasonably necessary or appropriate to confirm or carry out the provisions and intent of this Assignment. 17. Headings. The headings or captions of the sections set forth herein are for convenience only, are not a part of this Assignment and are not to be considered in interpreting this Assignment. 18. Recitals Incorporated. The recitals to this Assignment are incorporated into and constitute an integral part of this Assignment. 491940v1 NMI CL160 -82 62 IN WITNESS WHEREOF, Borrower and HRA have caused this Amended and Restated Assignment to be duly executed as of the day and year first above written. AEON LIM STATE OF MINNESOTA ) SS. COUNTY OF ) Caroline Horton, Chief Financial Officer The foregoing instrument was acknowledged before me this day of February, 2017, by Caroline Horton, the Chief Financial Officer of Aeon, a Minnesota nonprofit corporation, on behalf of the corporation. Notary Public HOUSING AND REDEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA Its Chair Its Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF ANOKA ) On this day of February, 2017, before me, a notary public within and for Anoka County, personally appeared John Murzyn Jr and Walter Fehst to me personally known who by me duly sworn did say that they are the Chair and Executive Director of the Housing and Redevelopment Authority of Columbia Heights Minnesota, a public body corporate and politic under the laws of the State of Minnesota (the "Authority ") named in the foregoing instrument; that said instrument was signed on behalf of said Authority; and said John Murzyn, Jr. and Walter Fehst acknowledged said instrument to be the free act and deed of said Authority. 491940vl MNI CL160 -82 63 ACKNOWLEDGMENT OF PARKVIEW LIMITED PARTNERSHIP Partnership hereby acknowledges, agrees with and consents to the foregoing Assignment and agrees to comply with the covenants of the Partnership set forth in Section 5 of the Assignment. Partnership represents and warrants to the Borrower and HRA that (a) this Assignment has been duly authorized, executed and delivered by and on behalf of Partnership so as to constitute the valid and binding agreement of the Partnership, enforceable in accordance with the terms hereof; (b) the Pledged Documents each constitute a valid, genuine and legally enforceable obligation of the Partnership, enforceable in accordance with its applicable terms; none of the Pledged Documents has been amended or modified; and, to its knowledge, there is no default by Borrower or by Partnership now existing under either of the Pledged Documents; and (c) the outstanding principal balance on the Partnership Note as of the date hereof of is $6,585,000. Partnership hereby acknowledges that HRA is relying upon the foregoing in connection with HRA entering into certain HRA Loan Documents with Borrower. Signed on February , 2017 but made effective as of September 24, 2015. PARTNERSHIP: PARKVIEW LIMITED PARTNERSHIP, a Minnesota limited partnership By: Aeon, a Minnesota nonprofit corporation Its: General Partner IC Caroline Horton, Chief Financial Officer EXHIBIT A Legal Description Tract A: That part of the South 1/2 of Lot 13, lying Northwesterly of the following line: Beginning at the Northeast corner of the South 1/2 of Lot 13; thence Southwesterly to a point on the South line of said Lot 13, said point being 2 feet Easterly of the Southwest Coiner of Lot 13; the South 241 feet of Lot 14; then south 1/2 of Lot 15; Lot 39 except the West 30 feet thereof; Lots 40, 41, 42 and 43 and the West 1/2 of Lot 44, all in Block 5 Reservoir Hills, Columbia Heights, Anoka County, Minnesota (Abstract) Tract B: The East 40 feet of the South lit of Lot 16, Block 5, Reservoir Hills, Columbia Heights, Anoka County, Minnesota. (Torrens) 64 HRA Minutes Page 10 February 13, 2017 Questions from members: Commissioner Williams questioned whether or not the HRA will still receive payment following the term of the loan. Attorney Ingram stated that HRA will receive payment from the loan, following the thirty -year term. Ingram indicated that Aeon would likely refinance at that time, which would allow repayment. Commissioner Buesgens questioned whether or not the loan bears interest. Attorney Ingram clarified that it does not. Commissioner Williams questioned whether or not the City /HRA has received any funds to date for the sale of the property. Executive Director Fehst stated the HRA did retain fund balances from the "South" building, which total approximately $900,000. Deputy Director Hogeboom noted that when the note matures in 30 years, HUD will have to also be repaid for the portion that is allocated to the "North" building. Motion by Williams, seconded by Schmitt, to waive the reading of Resolution 2017 -02, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Williams, seconded by Schmitt, to adopt Resolution 2017 -02, amending and restating the collateral assignment of note and mortgage in connection with the terms of the conveyance of Park-view Villa. All ayes. MOTION PASSED. HRA RESOLUTION NO. 2017-02 RESOLUTION APPROVING AN AMENDED AND RESTATED COLLATERAL ASSIGNMENT OF NOTE AND MORTGAGE IN CONNECTION WITH THE TERMS OF CONVEYANCE OF PARKVIEW VILLA BE IT RESOLVED BY the Board of Cominissioners ('Board ") of the Housing and Redevelopment Authority of Columbia Heights, Minnesota (the "Authority ") as follows: HRA Minutes Page 11 February 13, 2017 Section 1. Recitals. 65 1.01. The Authority previously owned and operated a public housing facility known as Parkview Villa (the "Facility ") within the City of Columbia Heights (the "City "). 1.02. The Authority and Aeon (the "Purchaser ") executed a certain Amended and Restated Purchase and Development Contract, dated as of July 28, 2015 (the "Agreement "), pursuant to which the Authority conveyed the Facility to the Purchaser and received a Promissory Note for the payment of the purchase price (the "Note "), secured by the Collateral Assignment of Note and Mortgage dated as of September 24, 2015 (the "Assignment "), which pledges the Inclusive Promissory Note (the "Partnership Note ") from Parkview Limited Partnership (the "Partnership ") to the Purchaser, as well as a mortgage from the Partnership to the Purchaser. 1.03. Although the intent of the parties was to allow any interest payments under the Partnership Note to be retained by the Purchaser and used to pay operating and other costs of the Facility, the terms of the Assignment incorrectly provide that any interest due and payable under the Partnership Note shall be held in trust by the Purchaser for the benefit of the Authority. 1.04. The Purchaser has requested that the Authority agree to an Amended and Restated Collateral Assignment of Note and Mortgage (the "Amended Assignment "), which clarifies that interest payments under the Partnership Note may be retained by the Purchaser and applied to operating costs of the Facility. The HRA's legal counsel has reviewed the Amended Assignment in the form presented to the HRA and on file with the HRA's Executive Director. Section 2. Amended Assignment Approved. 2.01. The Amended Assignment is hereby approved. 2.02. The Chair and Executive Director are hereby authorized to execute on behalf of the Authority the Amended Assignment in substantially the form presented to the Board, subject to changes that do not materially alter the substance of the transaction and that are approved by the Chair and Executive Director, provided that execution of the Amended Assignment by such officials shall be conclusive evidence of approval. Approved by the Board of Commissioners of the Housing and Redevelopment Authority for Columbia Heights, Minnesota this 13th day of February, 2017. Chair ATTEST: Secretary HRA Minutes Page 12 February 13, 2017 66 The meeting was adjourned at 8:30 pm. Respectfully submitted, Joseph Hogeboom Acting Secretary 67 CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7C MEETING DATE AUGUST 14, 2017 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: CITY HALL MASTER PLAN DEPARTMENT: Public Works CITY MANAGER'S APPROVAL: BY /DATE: Kevin Hansen / August 3, 2017 BY /DATE: CITY STRATEGY: #7: Strong Infastructure /Public Services Additional Strategy? N/A SHORT TERM GOAL (IF APPLICABLE): #5 Develop a Master Plan for New City Hall Additional Goal? N/A BACKGROUND: In 2014 staff contracted with Braun Intertec to perform a building envelope analysis of City Hall, considering the exterior masonry and windows. This originated from leakage and water intrusion in the older part of City Hall in both the Community Development and Finance Departments. The recommendations of that report were included in a 2015 five -year building needs identification listing presented to the Council in the form of a CIP. It identified over $640,000 (in 2015 costs) of recommended repairs or mechanical replacements to the building. Staff has delayed any major investment in the building considering the age, condition and deficiencies of the current structure, and instead has focused only on keeping the building mechanical systems running. During the 2017 Council goal setting process, the replacement of the existing City Hall was discussed and a short -term objective was established to create a City Hall Master Plan. The creation of a Master Plan would be similar to the scoping study process used for the new library and would involve: • Site Evaluation and Selection — provide an analysis of three or more sites in the City that may locate a new City Hall. • Site Assessment and Site Development — includes building layout, site access, parking, integration of stormwater needs on the site, and review foundation needs based on soil borings. • Concept Layout Development - develop preliminary building layout drawings including building square footage, exterior materials, building height, primary interior spaces, and quality of construction. • Develop preliminary building systems: This will include the building structural systems, HVAC systems, electrical systems and roofing systems. • Develop a detailed cost estimate based on the preferred site. • Develop funding scenarios based on the detailed cost estimate. This report, along with preliminary drawings (conceptual), will be prepared and presented to the Council. This level of work will provide a more accurate assessment of the construction cost of a new City Hall and how it might be funded. STAFF RECOMMENDATION: Authorize the preparation of a City Hall Master Plan, as identified in the 2017 Council goals. RECOMMENDED MOTION(S): Move to authorize staff to prepare a City Hall Master Plan. 68 CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7D MEETING DATE AUGUST 14, 2017 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: ESTABLISH DATE FOR 2017 PUBLIC SPECIAL ASSESSMENT LEVY HEARING FOR: SEAL COAT, STREET REHABILITATION, MSAS MILL & OVERLAY, PETITION AND WAIVER, AND DELINQUENT ACCOUNTS DEPARTMENT: Public Works CITY MANAGER'S APPROVAL: BY /DATE: Kevin Hansen / July 26, 2017 BY /DATE: CITY STRATEGY: #7: Strong Infastructure /Public Services Additional Strategy? N/A SHORT TERM GOAL (IF APPLICABLE): N/A Additional Goal? N/A BACKGROUND: Special assessments are certified to Anoka County for inclusion on the property tax statements. To be included with the 2018 tax statement, the assessment hearing needs to be held on or before October 15, 2017. STAFF RECOMMENDATION: Staff is recommending Monday, October 2, 2017 for the Assessment Hearings on the following projects: 1. Zone 1 Seal Coat 2. M.S.A.S. Mill & Overlay 3. 2017 Petition and Waiver 4. 2017 Delinquent Accounts RECOMMENDED MOTION(S): Move to establish Monday, October 2, 2017 at 6:00 p.m. as the Public Special Assessment Levy Hearing for City Project #1601 Zone 1 Seal Coat, to be held in the City Council Chambers. Move to establish Monday, October 2, 2017 at 6:15 p.m. as the Public Special Assessment Levy Hearing for City Project #1705 M.S.A.S. Mill & Overlay, to be held in the City Council Chambers. Move to establish Monday, October 2, 2017 at 6:30 p.m. as the Public Special Assessment Levy Hearing for Delinquent Accounts, to be held in the City Council Chambers. 29 CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7E MEETING DATE AUGUST 14, 2017 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: KEYES PARK FINAL PLANS DEPARTMENT: Public Works CITY MANAGER'S APPROVAL: 1 4PIVA" BY /DATE: Kevin Hansen / August 4, 2017 BY /DATE: CITY STRATEGY: #7: Strong Infastructure /Public Services Additional Strategy? N/A SHORT TERM GOAL (IF APPLICABLE): #4 Develop a Master Park Plan Additional Goal? N/A BACKGROUND: In 2016, the Park and Recreation Commission developed a Master Plan for Keyes Park. The Park Planning consulting firm of ISG prepared the Master Plan including the following elements: 1. Realigned athletic fields (2) 2. New playground 3. Reconfigured parking lots 4. Rain gardens /infiltration basins for water quality 5. Walking path from parking lot to facilities 6. Addition of a paved walking trail around entire park 7. Sidewalk along the east side of McLeod from 44th to 45th Avenues 8. Remodeling of the existing warming house 9. Adding a medium -sized picnic shelter to the warming house 10. An outdoor adult fitness area 11. Site landscaping 12. Preserve sliding hill 13. Introduction of a soccer field (partial) The City Council accepted the Master Plan at their August 22, 2016 meeting and authorized the preparation of plans. $350,000 is budgeted in the 2017 Parks Capital Improvement Fund for Keyes Park, and $75,000 from the Storm Water Fund. At their July regular meeting, the Park and Recreation Commission reviewed the plans and made a motion recommending plan approval and bidding to the City Council. STAFF RECOMMENDATION: The base bid includes items 1 -5, 11, 12 and 13 above, and 6 and 7 as an add alternate in the bidding documents. RECOMMENDED MOTION(S): Move to approve the final Plans and Specifications and order Advertisement for Bids for Keyes Park Improvements, City Project 1610. ATTACHMENT(S): Site Plan Bidding Documents 70 Eo� U. LLI OR Z") 3 lip -- - - - - -- -- I -------------------------------------- ----------------- i I I I IF UJ 6 LU 2 vw Lu (D 9 a a W. Lu 1. CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7F MEETING DATE AUGUST 14, 2017 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: REFUSE CART PURCHASE DEPARTMENT: Public Works CITY MANAGER'S APPROVAL: BY /DATE: Kevin Hansen / August 4, 2017 BY /DATE: CITY STRATEGY: #3: Affordability Additional Strategy? #7: Strong Infastructure /Public Services SHORT TERM GOAL (IF APPLICABLE): #2 Conduct an Evaluation of City Services and Staffing Levels Additional Goal? N/A BACKGROUND: Staff is currently preparing an RFP for refuse services as our current contract term will conclude at the end of 2017. One item that staff has reviewed is the carts and ownership of the carts. Currently Advanced Disposal owns all of the carts for all services, with a count as follows: CH RESIDENT CART COUNT SIZE TYPE QTY 35 GAL TRASH 465 65 GAL TRASH 1217 95 GAL TRASH 4650 35 GAL RECYCLE 25 65 GAL RECYCLE 5661 95 GAL RECYCLE 517 ALL YARD WASTE 301 TOTAL: 12,836 In the last contract, approximately eight years ago, all new carts were purchased and provided by the vendor. The price of carts depends on: 1. The price of plastic resin at the time the carts are bid. 2. The size of the carts. 3. Special cart add -ons (e.g.: micro - chips, four -color City logo, recycling instructions permanently imbedded in the lid, etc.). 4. The size of the cart order (volume discount). 5. Services accompanying cart purchase (assembly of carts, placement of carts at homes, construction of a database with the address, cart ID, micro -chip ID, education of customers, etc.). We have seen 90- gallon carts sell new for $60 - $80 each. The typical useful life of a garbage cart is 13 -20 years, depending on the quality of the cart and the care that is taken by the owner. There are over 50,000 carts in Minneapolis that are still in use that were put into service in 1987. Factors that decrease the life of a cart include putting hot ashes or combustible chemicals in the cart, running over a cart with a truck or car, or freezing the cart into snow banks causing the wheels to come off the axels when the cart is pulled out. Carts are very repairable. Common repairs include replacement of axels, wheels, hinges and lids. Less common 72 City of Columbia Heights - Council Letter Page 2 repairs include plastic "welding" of cuts in the cart body. Staff has reviewed the condition of our carts and would opinion that over 98% of them have at least another 7 -10 years of life — or at least through the next contract round. Staff then researched the value of 7 -8 year old carts along with our Environmental Consultant, Foth. Their opinion is as follows: "Foth has performed cost - benefit analyses on cart ownership for several cities who specified RFP alternates with and without city cart ownership. In each case, without fail, cart ownership by the City was the best long- term alternate, assuming that the city had sufficient capital or bonding capacity for the capital expense. When a company supplies the carts, they amortize the cost of the cart over the contract life... typically 5 -7 years. They charge the city the full price of the cart over that time. If the company is not successful in retaining the contract, they collect the fully paid for carts and provide them to other customers. Often the carts still have their factory warranty attached. These carts still have in excess of 10 years of "life," and have been paid for by the first (city) customer. If another company is selected by the city for the subsequent contract, the city "pays for" new carts again, and at the end of the contract the "new" carts are again fully amortized and paid for. If the some company is retained by the city, I have not seen the houler's price decrease to take into account the fully-paid-for carts. Breaking this cycle by purchasing the carts allows the city to receive the full benefit of their purchase of the carts. The city can maintain the carts using city personnel, or the city can require the hauling company to maintain the carts and the cart inventory. If the hauling company is responsible for cart maintenance and inventory control, strict language in the contract and follow -up are required to make sure that the company adheres to the performance standards in the contract for cart maintenance, carefully tracks warranty issues and inventory, and reports to the city on a monthly basis the disposition of all carts. A good model is the cart tracking report that is used by the City of Minneapolis, which lists by serial number all burned carts, all carts broken beyond repair, stolen carts, new carts placed, and the number of carts repaired each month." Therefore, staff recommends that the City purchase carts that are now in service, and specify that all carts purchased should: 1. New carts be recorded by serial number. The new contract will state any additional carts that are delivered to the City will be owned by the City at the end of the contract. If more carts are removed than delivered those cart counts will be considered City -owned carts stored offsite .... we'll figure out the disposition of them at the end of the contract. For example, one month 10 carts were removed and 5 delivered. The company knows they owe us 5 carts ... if it were the end of the contract. But the next month 10 carts might be delivered and only 5 removed. Month Delivered Removed Offsite January 5 10 5 February 10 5 0 2. Be in good working order, without splits in the cart bodies or lids and with functioning axels, wheels and lids. 3. Have applicable warranties transferred to the City. 73 City of Columbia Heights - Council Letter Page 3 4. Have a sufficient number of lids, hinges, axels, and wheels available to repair those particular carts. (Recommend 5 — 10% per part of the number of carts purchased.) Not too concerned about this, the new contractor will have to repair /replace carts per contract. 5. The cost of the carts at $10.00 each. City ownership of the carts will be reflected in the next proposals received in the next contract round. STAFF RECOMMENDATION: Authorize staff to execute a purchase contract with Advanced Disposal Services for the purchase of 12,836 carts at $10.00 each. Funding will be provided by the Refuse Fund. RECOMMENDED MOTION(S): 1) Move to approve the purchase of 12,836 carts from Advanced Disposal Services at a price of $10.00 each with funding from the Refuse Fund 603, and, furthermore, to authorize the Mayor and City Manager to enter into a contract for the same. 2) Move to amend the 2017 Refuse Fund 603 Budget for the $128,360 expenditure to purchase the carts. 74 CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7G MEETING DATE AUGUST 14, 2017 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: AUTHORIZATION TO SEEK BIDS FOR 2017 SANITARY SEWER PIPE LINING PROJECT DEPARTMENT: Public Works CITY MANAGER'S APPROVAL: y BY /DATE: Kevin Hansen / August 10, 2017 BY /DATE: CITY STRATEGY: #7: Strong Infastructure /Public Services Additional Strategy? N/A SHORT TERM GOAL (IF APPLICABLE): N/A Additional Goal? N/A BACKGROUND: Public Works annually budgets approximately $165,000 for sewer pipe lining to address pipe deficiencies. Through the sewer lining televising program, utility crews televise and inspect 16,000 — 20,000 feet each year. From these reports a determination is made regarding pipe conditions. Along with a history of plugged sewers and /or backups, a determination is made for which pipe segments would benefit from pipe lining. In 2017, the lining will concentrate in Collection District 1 with a small area on Arthur Street in District 3. The sanitary sewer flow in this district experiences peaks after rainfall events and is subject to annual financial penalties from the MCES. STAFF RECOMMENDATION: Inspection reports have identified significant joint infiltration. Lining will restore pipe integrity and eliminate infiltration at the joints. Staff recommends the following locations in District 1: Tyler Street, 49th Avenue to 50th Avenue 600 feet Tyler Street, 47th Avenue to 1St Manhole south 110 feet Taylor Street, 45th Avenue to 1St Manhole north 330 feet Royce Street, 44th Avenue to McLeod Street 910 feet 46th Avenue, Jefferson Street to Washington Street 650 feet Washington Street, 45th Avenue to 46th Avenue 600 feet Staff recommends the following locations in District 3: Arthur Street — 3 segments between 39th Avenue 600 feet and 42nd Avenue RECOMMENDED MOTION(S): Move to authorize staff to seek bids for the 2017 Sanitary Sewer Pipe Lining Project to continue lining pipe in Districts 1 and 3. ATTACHMENT(S): Sanitary Sewer District Map 75 4PI 8 Cf) LU u 0 D —J A, A-llUIlRdO,k-Ll--) ul .� Vii. -1 0000 -"-L Lu ul .� Vii. -1 CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT AGENDA ITEM NO. 7H MEETING DATE AUGUST 14, 2017 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: LICENSE AGENDA DEPARTMENT: COMMUNITY DEVELOPMENT CITY MANAGER'S APPROVAL: BY /DATE: AUGUST 9, 2017 BY /DATE: CITY STRATEGY: #1; Safe Community Additional Strategy? chccse an item. SHORT TERM GOAL (IF APPLICABLE): chco,�e --n item. Additional Goal? chcose an itttn. BACKGROUND /ANALYSIS Attached is the business license agenda for the August 14, 2017 Council meeting. This agenda consists of applications for 2017 Contractor Licenses and Temporary Liquor License for Immaculate Conception's October event. At the top of the license agenda you will notice a phrase stating *Signed Waiver Form 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 August 14, 2017 as presented. ATTACHMENTS: 77 City of Columbia Heights - Council Letter TO CITY COUNCIL August 14, 2017 *Signed Waiver Form Accompanied Application CONTRACTOR'S LICENSES -2017 BLDG Inter City W & S *Rock Solid Plumbing *Craig's Htg & Air Furnace Pro LLC *SC Service LLC *Dependable Htg & Cool *Kamish Excavating 11384 Crow River Dr. Hanover $60 544 218 "' Ave NE, E Bethel $60 2196 285 "' Ave N, Isanti $60 2690 109"' Ln NW, Coon Rapids $60 15174 96 ' St NE, Otsego $60 2619 Coon Rapids Blvd, Coon Rapids$60 1301 So. Concord St, So. 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CH COLUMBIA HEIGHTS AGENDA SECTION PUBLIC HEARING ITEM NO. gA MEETING DATE AUGUST 14, 2017 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Public Hearing: Repeat Nuisance Call Service Fee Appeal DEPARTMENT: Police CITY MANAGER'S APPROVAL: BY /DATE: Lenny Austin /August 9, 2017 BY /DATE: CITY STRATEGY: Choose an item„ Additional Strategy? Choose an iLem, SHORT TERM GOAL (IF APPLICABLE): Choose an item. Additional Goal? Choose an item. BACKGROUND: Ken Hertz, the owner of 940 39th Avenue NE, has requested a hearing to dispute the Nuisance Call for Service fee that was imposed on him regarding activities at that address. See the attached memo for detailed information on the issues there. STAFF RECOMMENDATION: After three violations that met the requirements of the Nuisance Call Service Fee ordinance, a fee of $250 was imposed on the owner of 940 39th Avenue, Ken Hertz. He is contesting this fee. RECOMMENDED MOTION(S): MOTION: Motion to uphold the $250 Nuisance Call for Service Fee imposed on Ken Hertz, owner of 940 39th Avenue NE. ATTACHMENTS: Memo 91 COLUMBIA HEIGHTS POLICE DEPARTMENT o MEMORANDUM To: Donna Schmitt, Mayor Members of the Columbia Heights City Council Walt Fehst, City Manager From: Lenny Austin, Interim Chief of Police Subject: Request to Appeal CFS Fee Date: August 9, 2017 On May 23, 2017, the City of Columbia Heights received a notification from Ken Hertz, the owner of 940 39`h Avenue, advising the city that he is requesting to appeal the $250.00 nuisance call for service fee to his property that occurred on May 2, 2017 (Case #17093086). I have enclosed a copy of the Repeat Nuisance call Service Fee Ordinance for your review. The ordinance states that the city may impose a repeat nuisance service call fee upon the owner and /or occupant of a private property if the city has rendered services or responded to the property on three or more occasions within a period of 365 days in response to or for the abatement of nuisance misconduct. Nuisance misconduct is defined as any activity, conduct, or condition occurring upon private property within the city that unreasonably annoys, injures, or endangers the safety, health, morals, comfort or repose of any member of the public; or will, or tend to, alarm, anger or disturb others or provoke breach of the peace to which the city is required to respond, including, but not limited to the following: • An activity, conduct, or condition deemed as a public nuisance under any provision of the City Code. • Any activity, conduct, or condition in violation of Minnesota Statute 609.33. • Any conduct, activity, or condition constituting a violation of any Minnesota state law prohibiting or regulating prostitution, gambling, controlled substances, use of firearms; and /or • Any conduct, activity, or condition constituting disorderly conduct under Chapter 609 of Minnesota statutes. Below is information regarding the incident resulting in this Repeat Nuisance Call for Service Violation: On May 2, 2017 at 8:17 a.m., officers were dispatched to a loud domestic situation that was called in by a neighbor. A neighbor who lives in the building had called police to report a loud domestic from an apartment inside the building where people could be heard screaming, and children were heard running and possibly trying to get help. Officers could hear females yelling from outside apartment 10. 92 Officers contacted the occupants in the apartment. The occupant stated she had been arguing with her girlfriend. Officers advised the tenant of the noise ordinance and left the residence. This appeal was scheduled for the Council Meeting on June 12, 2017. At that time the matter was tabled which gave me an opportunity to meet with representatives of 940 39th Avenue. On June 19, 2017, COP Coordinator Josh Huebner and I met with Mary Durkop, the Property Manager of 940 391h Avenue and discussed the number of calls that had been occurring at the property. During the meeting, Ms. Durkop stated that she would be taking action steps to address this recent activity. Since June 12, 2017, there have been no calls to the property in violation of the Nuisance Calls for Service Ordinance. Attachment 93 I� 1 I .HERTZ LAW OFR ES, P.A. 3853 CENTRAL AVE, N.E. f COLUMBIA HEIGHTS, MN' 55421 OFFICE (612) 325 -1161 FAX (763) 413 -5174 email; kenbp t;Zldur@] rent May 23, 2017 Katie Brano City Clerk, City ofColumbia Heights Re: appeal of notification of fine assessment for 940 39th Ave. N.E., Columbia. Heights, A4;, CHPD *17093086 Dear Ms, Bruno. Please be advised that LT_LR, LLC has retained this firm in the above referenced matter. Please consider this letter the formal notice of appeal of the above referencedi fine assessed to ULLR, LLC as required by Ordinance No. 1568, Article VIII §8,806 Please notify me as to the date and time of the hearing. If possible, could you schedule the hearing as far out as possible based on conflicts in current scheduling. If there is additional information you neon, please let me kno-lk Thank you for your assistance in this matter. S' ely, r Kennetfi ertz 94 ORDINANCE NO. 1568 BEING AN ORDINANCE AMENDING ORDINANCE NO. 1490, CITY CODE OF 2005 RELATING TO REPEAT NUISANCE CALL SERVICE FEE Chapter 8 of the Columbia Heights City Code will be amended to include the following: ARTICLE 'VIII: REPEAT NUISANCE CALL SERVICE FEE Section 8.801 Purpose 8.802 Scope and application 8.803 Definitions 8.804 Repeat nuisance service call fee 8.805 Notice 8.806 Right to appeal 8.807 Legal remedies nonexclusive 8.808 Applicability of repeat nuisance service call fee 8.809 Recovery of fee § 8.801 PURPOSE. The purpose of this section is to protect the public safety, health and welfare and to prevent and abate repeat service response calls by the City to the same property or location for nuisance service calls, as defined herein, which prevent police or public safety services to other residents of the City. It is the intent of the City by the adoption of this Section to impose and collect service call fees from the owner or occupant, or both, of property to which City officials must repeatedly respond for any repeat nuisance event or activity that generates extraordinary costs to the City. The repeat nuisance service call fee is intended to cover that cost over and above the cost of providing normal law or code enforcement services and police protection city- wide. § 8.802 SCOPE AND APPLICATION. This Section applies to all owners and occupants of private property which is the subject or location of the repeat nuisance service call by the City. This Section applies to any repeat nuisance service calls made by a City of Columbia Heights peace officer, part-time peace officer, community service officer, animal control and/or code enforcement officers. 95 § 8.803 DEFINMONS. For purposes of this Section, the term "nuisance misconduct" means any activity, conduct, or condition occurring upon private property within the City that unreasonably annoys, injures; or endangers the safety, health, morals, comfort or repose of any member of the public, or will, or tend to, alarm, anger or disturb others or provoke breach of the peace, to which the City is required to respond, including, but not limited to the following: (A) Any activity, conduct, or condition deemed as a public nuisance under any provision of the City Code; (B) Any activity, conduct, or condition in violation of Minnesota State Statute 609.33; (C) Any conduct, activity or condition constituting a violation of any Minnesota state law prohibiting or regulating prostitution, gambling, controlled substances, use of firearms; and/or (D) Any conduct, activity, or condition constituting disorderly conduct under Chapter 609 of Minnesota Statutes. § 8.804 REPEAT NUISANCE SERVICE CALL FEE. (A) The City may impose a repeat nuisance service call fee upon the owner and/or occupant of a private property if the City has rendered services or responded to the property on three or more occasions within a period of 365 days in response to or for the abatement of nuisance conduct. (B) The repeat nuisance service call fee will be set forth in a resolution approved by the City Council. An additional amount may be imposed to reflect the salaries of police officers, community service officers, animal control and/or code enforcement officers while responding to or remaining at the nuisance event, the pro rata cost of equipment, the cost of repairing city equipment and property damaged as a result of the nuisance call, and the cost of any medical treatment of injured officers. (C) A repeat nuisance service call fee imposed under this Section will be deemed delinquent if it is not paid within 30 days after the City mails the billing statement for the fee. The City will add a ten percent late penalty to a delinquent payment. § 8.805 NOTICE. (A) No repeat nuisance service call fee may be imposed against an owner or occupant of property without first providing the owner or occupant with written notice of the two previous nuisance service calls which are the basis for the fee. The written notice must: (1) Identify the nuisance conduct that previously occurred on the property, and the dates of the previous nuisance conduct; and W 96 (2) State that the owner or occupant may be subject to a nuisance call service fee if a third nuisance service call is rendered to the property for any further nuisance conduct; and (3) State that the City has the right to seek other legal remedies or actions for abatement of the nuisance or compliance with the law; and (4) Be served personally; by U.S. Mail upon the owner or occupant at the last known address; or by posting the subject property. § 8.806 RIGHT TO APPEAL. (A) When the City mails the billing statement for the repeat nuisance service call fee, the City will inform the owner or occupant of their right to request a hearing. (B) The owner or occupant upon whom the fee is imposed must request a hearing within ten (10) business days of the mailing of the billing statement, excluding the day the statement is mailed. The request for a hearing must be in writing and delivered to the City Clerk. The hearing will occur within thirty (30) days of the date of the request. If the owner or occupant fails to request a hearing within the time and in the manner required under this Section, the right to a hearing is waived. (C) The hearing will be conducted by the City Council in an informal .manner. The Minnesota Rules of Civil Procedure and Rules of Evidence will not be strictly applied. After considering all evidence submitted, the City Council will make written Findings of Fact and Conclusions regarding the nuisance conduct and the imposition of the repeat nuisance service fee. The City Council will serve the Findings of Fact and Conclusions upon the owner or occupant by U.S. Mail within ten (10) days of the hearing. (D) If the owner or occupant fails to appear at the scheduled hearing date, the right to a hearing is waived. (E) Upon waiver of the right to a hearing under subdivision (2) or (4) or upon service of the City Council's Findings of Fact and Conclusions that the repeat nuisance call service fee is warranted, the owner or occupant must pay the fee imposed within ten (10) days. § 8.8+07 LEGAL REMEDIES NONEXCLUSIVE. Nothing in this Section will be construed to limit the City's other available legal remedies, including criminal, civil, injunctive or others, for any violation of the law. § 8.808 APPLICABIILTY OF REPEAT NUISANCE SERVICE CALL FEE. The City may not impose a repeat nuisance service call fee against an owner or occupant for a police response relating to emergency assistance, including, but not limited to, domestic spousal and child abuse. 97 § 8.809 RECOVERY OF FEE, (A) if a repeat nuisance service call fee remains unpaid thirty (30) days after the billing statement is sent by the City, it shall constitute: (1) a lien on the real property where the violation occurred; or (2) a personal obligation of the owner or occupant in all other situations. (B) A lien may be assessed against the property and collected in the same manner as taxes. (C) A personal obligation may be collected by appropriate legal means. This ordinance shall be in full force and effect from and after 30 days after its passage. First Reading: August 10, 2009 Second Reading: August 24, 2009 Date of Passage: August 24, 2009 Offered by: Kelzenberg Seconded by. Williams Roll Call: Ayes: Peterson, Williams, Nawrocki, Diehm, Kelzenberg Attest- (Patricia Muscovitz, CMC City Clerk 4 Mayor Gary V Peterson 98