HomeMy WebLinkAbout09-28-2020 City Council Meeting MinutesOFFICIAL PROCEEDINGS
CITY OF COLUMBIA HEIGHTS
CITY COUNCIL MEETING
SEPTEMBER 28, 2020
The following are the minutes for the regular meeting of the City Council held at 7:00 pm on Monday,
September 28, 2020, in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights,
Minnesota.
1. CALL TO ORDER/ROLL CALL
Mayor Schmitt called the meeting to order at 7:00 pm.
Present: Mayor Schmitt; Councilmember Buesgens; Councilmember Murzyn, Jr.; Councilmember
Novitsky; Councilmember Williams
Also Present: Kelli Bourgeois, City Manager; Aaron Chirpich, Community Development Director;
Mitchell Forney, Community Development Coordinator; Amanda Fulk; Kevin Hansen, Public Works
Director; Jim Hoeft, City Attorney; Joe Kloiber, Finance Director; Nicole Tingley, City Clerk
2. PLEDGE OF ALLEGIANCE
3. MISSION STATEMENT, Read by Mayor Schmitt
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 manner.
4. APPROVAL OF AGENDA
Mayor Schmitt reported an amendment to the Agenda, being the removal of Item 7B, “Resolution
No. 2020-74, Consideration of Revocation of the License to Operate a Rental Unit within the City of
Columbia Heights is Requested Against the Property at 950 39th Avenue NE for Failure to Meet the
Requirements of the Residential Maintenance Codes,” as the violations had been corrected.
Motion by Councilmember Buesgens, seconded by Councilmember Murzyn, Jr., to approve the agenda
as amended. All Ayes, Motion Carried 5-0.
5. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS
A. Domestic Violence Awareness Month Proclamation
Mayor Schmitt read the proclamation designating October 2020 as “Domestic Violence Awareness
Month” in the City of Columbia Heights, which is requested annually by Alexandra House to inform
area residents about domestic violence, its prevalence, consequences and what can be done to
eliminate its existence. She then thanked Alexandra House for bringing it to the attention of the City
and said domestic violence is one of the highest calls to the Police Department, is prevalent and
asked residents to be watchful on behalf of neighbors.
Amanda Fulk, Community Engagement Coordinator for Alexandra House, thanked the City for the
proclamation and its leadership and support and reported that her organization in 2019 provided
services to 2,522 individuals, including Anoka County and of which 10% were from Columbia Heights.
City Council Minutes
September 28, 2020 Page 2
Upcoming Alexandra House events include the Yard Sign Campaign, Purple Lights Campaign and
“Purple Thursday” on October 22 to help spread awareness of domestic violence.
6. 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 September 14, 2020.
B. Accept Board and Commission Meeting Minutes
MOTION: Move to accept the minutes of the EDA Meeting of September 8, 2020.
MOTION: Move to accept the minutes of the EDA Meeting of September 14, 2020.
C. Adopt Resolution No. 2020-72, being a Resolution Establishing Amount of City Share and
Amount of Special Assessments on Projects to be Levied
MOTION: Move to waive the reading of Resolution No. 2020-72, there being ample copies available
to the public.
MOTION: Move to adopt Resolution No. 2020-72, being a resolution establishing amount of City
share and amount of special assessments on projects to be levied.
D. Capital Equipment Replacement of Unit #456: Recreation Department Passenger Van
MOTION: Move to authorize the replacement of Unit #456 and purchase one (1) new 2020 Ford
Transport T-350 XLT from Ford of Hibbing in the amount of $46,179.60, which includes tax, freight
and license of the State of Minnesota purchasing contract.
E. Consideration of Approval of Attached List of Rental Housing Applications
MOTION: Move to approve the items listed for rental housing license applications for September 28,
2020, in that they have met the requirements of the Property Maintenance Codes.
F. Approve Business License Applications
MOTION: Move to approve the items as listed on the Business License Agenda for September 28,
2020, as presented.
G. Review of Bills
MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8, the City Council has
reviewed the enclosed list of claims paid by check and by electronic funds transfer in the amount of
$1,835,764.54.
Motion by Councilmember Buesgens, seconded by Councilmember Murzyn, Jr., to approve the Consent
Agenda items as presented. All Ayes, Motion Carried 5-0.
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September 28, 2020 Page 3
7. PUBLIC HEARINGS
A. Adopt Resolution No. 2020-73, Declaration of a Nuisance for Property Located at 3821 Reservoir
Boulevard NE and Approve Abatement of Violations
Director Hansen reported that he had spoken with the property owner of 3821 Reservoir Boulevard
NE regarding its safety and erosion issues, and the owner requested that Director Hansen contact an
engineer and building official regarding a retaining wall plan. City staff would like to continue to work
with the owner to remediate the issue, and the owner’s plan is expected within a week.
Councilmembers expressed concern about the work needing to be completed before the winter
season begins, and there was Council consensus to table further action to the October 26 City Council
Meeting.
Motion by Councilmember Buesgens, seconded by Councilmember x, to table Resolution No. 2020-73
for abatement to the City Council Meeting on Monday, October 26, at 7:00 pm. All Ayes, Motion
Carried 5-0.
B. Resolution No. 2020-74, Consideration of Revocation of the License to Operate a Rental Unit
within the City of Columbia Heights is Requested Against the Property at 950 39th Avenue NE for
Failure to Meet the Requirements of the Residential Maintenance Codes
Removed
8. ITEMS FOR CONSIDERATION
A. Other Ordinances and Resolutions
a. Resolution No. 2020-75, Approving a Purchase and Redevelopment Contract between the
EDA, City and BPOZ, LLC for the 40th and Central Avenue Redevelopment Site
Director Chirpich reported that the 40th and Central Avenue redevelopment site contains six
parcels with ownership split between the City and the Economic Development Authority (EDA). In
November 2019, the City conveyed three parcels within the redevelopment site to the EDA but
the transfer deeds have not yet been recorded by the County, and the plan now is to finalize the
conveyance by recording new deeds simultaneously with the closing on the land sale to BPOZ,
LLC, including 950 40th Avenue NE (former municipal parking ramp site – PID# 36-30-24-32-0262),
961 Gould Avenue NE (former single-family home site – PID# 36-30-24-32-0078) and skyway
parcel (address not assigned – PID# 36-30-24-32-0259). The sale of all EDA-owned parcels located
within the 40th and Central Avenue redevelopment site was approved by the EDA at its hearing on
September 21, and the City needs to separately approve the same terms outlined in the Purchase
and Redevelopment Agreement that was approved by the EDA.
Motion by Councilmember Buesgens, seconded by Councilmember Novitsky, to waive the reading
of Resolution No. 2020-75, there being ample copies available to the public. All Ayes, Motion
Carried 5-0.
Motion by Councilmember Buesgens, seconded by Councilmember Novitsky, to approve Resolution
No 2020-75, a resolution approving the purchase and redevelopment contract between the
Columbia Heights Economic Development Authority, the City of Columbia Heights and BPOZ
Columbia Heights, LLC. All Ayes, Motion Carried 5-0.
City Council Minutes
September 28, 2020 Page 4
b. Resolution No. 2020-76, Approving Lender Subordinations for Redevelopment Contract with
BOPZ, LLC
Director Chirpich provided background information regarding the approved sale of the
redevelopment site at 40th and Central Avenue to BPOZ, LLC, under which the parties agreed to
subordinate rights to the holder of any mortgage that secures construction or permanent
financing for the project. BPOZ, LLC has assigned all of its rights to Old National Bank as a
condition of securing their loan for construction financing, and the EDA and City have agreed to
acknowledge the assignment of rights and take a subordinate position to the lender. In addition
to the first mortgage, BPOZ, LLC has also secured financing from Colliers Funding LLC in the form
of a tax increment financing loan (TIF), which would secure construction financing for the project
by assigning the future TIF payments to the lender.
The City is being asked to approve the actual final agreements in preparation of the upcoming
closing, and City staff recommend approval of Resolution 2020-76, which would approve both the
subordination request made by Old National and the Assignment and Consent agreements
proposed by Colliers.
Motion by Councilmember Novitsky, seconded by Councilmember Murzyn , Jr., to waive the
reading of Resolution No. 2020-76, there being ample copies available to the public. All Ayes,
Motion Carried 5-0.
Motion by Councilmember Novitsky, seconded by Councilmember Murzyn, Jr., to adopt Resolution
No. 2020-76, a resolution approving the redevelopment contract subordinations on behalf of
BOPZ, LLC’s primary lenders. All Ayes, Motion Carried 5-0.
c. Resolution No 2020-77, Adopting a Proposed Budget for the Year 2021, Setting the
Proposed City Levy, Approving the HRA Levy, Approving a Tax Rate Increase and Establishing
a Budget Hearing Date for Property Taxes Payable in 2021
Director Kloiber provided background information regarding the proposed 2021 budget and tax
levy, citing a change that would increase the tax levy by $100,000.00 and approximately equal the
tax revenue generated by certain additional taxable property within the City beginning in 2021.
The additional taxable property is a result of two TIF districts that become subject to the general
property tax levy, and their revenue would be committed for use in the City’s Parks Capital
Improvement Fund, which Director Hansen explained in further detail. He said the two primary
funding sources for park improvements are park dedications and City revenue allocations and
future needs to complete all projects total approximately $6.9 million (2019 dollars). He said City
staff continue to seek grant sources to offset financial needs.
The amount of tax subsidy the City receives for 2021 from the Metro Area Fiscal Disparities Levy
will be reduced by $138,000.00, or 4.1%, which will result in more of a gross tax levy being paid by
local taxpayers in the City. The City Council needs to adopt a proposed budget and tax levy
resolution by September 30 and also adopt a final version at a budget hearing in December. The
final tax levy can be less than, but not greater than, the proposed levy adopted in September.
Staff recommends approval of the proposed budget and levy for 2021.
City Council Minutes
September 28, 2020 Page 5
Councilmembers Novitsky, Buesgens and Murzyn, Jr. expressed support for the City’s Parks
Capital Improvement Fund. Mayor Schmitt agreed and then explained that City Council action
will be for pre-approval of the tax levy, not the final levy, and then limiting how high it can be.
Motion by Councilmember Buesgens, seconded by Councilmember Novitsky, to waive the reading
of Resolution No. 2020-77, there being ample copies available to the public. All Ayes, Motion
Carried 5-0.
Motion by Councilmember Buesgens, seconded by Councilmember Novitsky, to adopt Resolution
No 2020-77, being a resolution adopting a proposed budget for the year 2021, setting the
proposed City levy, approving the HRA levy, approving a tax rate increase and establishing a
budget hearing date for property taxes payable in 2021 of December 14, 2020, at approximately
7:00 pm in the City Council chambers. All Ayes, Motion Carried 5-0.
d. Resolution No. 2020-78, Authorizing the 4025 Van Buren Municipal Ramp
Maintenance/Snow and Ice Removal Contract
Coordinator Forney provided background information regarding the proposed agreement with
High Profile Grounds for maintenance of the City ramp located at 4025 Van Buren Street. After
maintaining the ramp for a year on a case-by-case basis, it was determined by Community
Development staff that a ground maintenance contractor is needed to maintain a high level of
service. A Request for Proposal was distributed, and one bid was received by High Profile
Grounds Maintenance, Inc. City staff recommend that the Council authorizes an execution of a
2020-2022 Grounds Maintenance/Snow Removal and Ice Management Contract with them.
Mayor Schmitt asked for clarification as to who would oversee as to when a contract is extended
or terminated in the future, and Coordinator Forney stated it would be the City’s Community
Development’s responsibility.
Motion by Councilmember Novitsky, seconded by Councilmember Murzyn, Jr., to waive the
reading of Resolution No. 2020-78, there being ample copies available to the public. All Ayes,
Motion Carried 5-0.
Motion by Councilmember Novitsky, seconded by Councilmember Murzyn, Jr., to adopt Resolution
No. 2020-78, a resolution authorizing the execution of the 2020-2022 Grounds Maintenance/Snow
Removal and Ice Management Contract between High Profile Grounds Maintenance, Inc. and the
City of Columbia Heights. All Ayes, Motion Carried 5-0.
9. CITY COUNCIL AND ADMINISTRATIVE REPORTS
Councilmember Novitsky thanked everyone who extended support following his mother’s death.
Councilmember Williams reported that former City Mayor Gary Peterson suffered a stroke but is
recovering well.
City Council Minutes
September 28, 2020 Page 6
Councilmember Buesgens said she continues to volunteer at Blooming Sunshine Garden in Lomianki
Park. She attended online the Metropolitan Housing and Economic Development meeting, during
which Roseville announced they are rezoning an area that includes the Rosedale Mall and Edina
reported it has completed 31 redevelopment projects over the last ten years and also plans to change
its architecture perspective from a car orientation to a human scale. She attended online the
Minnesota Climate Adaptation Seminar, where farmers were reported to be transitioning to
sustainable practices; delivered leftover produce from SACA Food Shelf and Thrift Store to resident
chicken keepers; and attended the HeightsNEXT plant exchange. She recommended that anyone
with ash trees on their properties watch the new video uploaded on the City website regarding how
to identify the disease.
Mayor Schmitt attended via Zoom the combined League of Minnesota Cities, the Minnesota School
Board Association, Minnesota Association of Townships and the Minnesota Association of Counties
meeting. She expressed support, for the future, of residents also being able to come together to
discuss topics that are relevant and/or important to all political parties.
Manager Bourgeois reported that Lenny Austin, Chief of Police, had just reported a nationwide 911
outage and asked residents to call the non-emergency number at 763-427-1212 for emergencies until
the issue is resolved. She reported City staff participated in very detailed emergency medical training
over three days last week and thanked the City Police and Fire Departments for planning.
The Candidate Forum is Wednesday, September 30, beginning at 7:00 pm, and will be live on the
City’s Facebook page and then played on cable channels; and all City evening meetings scheduled for
Monday, October 5, will be held at the Library.
10. ADJOURNMENT
Motion by Councilmember Buesgens, seconded by Councilmember Murzyn, Jr., to adjourn. All Ayes,
Motion Carried 5-0.
Meeting adjourned at 7:51 pm.
Respectfully Submitted,
___________________________________
Nicole Tingley, City Clerk/Council Secretary