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HomeMy WebLinkAbout07-12-2021 City Council Meeting Minutes CITY COUNCIL MEETING Mayor Amáda Márquez Simula Councilmembers John Murzyn, Jr. Connie Buesgens Nick Novitsky Kt Jacobs City Manager Kelli Bourgeois City Hall—Council Chambers, 590 40th Ave NE Monday, July 12, 2021 7:00 PM MINUTES The following are the minutes for the Meeting of the City Council held at 7:00 pm on Monday, July 12, 2021 in the City Council Chambers, City Hall, 590 40th Avenue NE, Columbia Heights, Minnesota. CALL TO ORDER/ROLL CALL Mayor Márquez Simula called the meeting to order at 7:00 pm. Present: Mayor Márquez Simula; Councilmember Buesgens; Councilmember Jacobs; Councilmember Murzyn, Jr.; Councilmember Novitsky Also Present: Kelli Bourgeois, City Manager; Keith Dahl; Randy Engel; Minerva Hark, Community Development Planner; Jim Hoeft, City Attorney; Joe Kloiber, Finance Director; David Mol; Will Rottler, Community and Events Specialist; Ben Sandell, Communications Coordinator; Nicole Tingley, City Clerk; Jackie Zillmer, Assistant Finance Director CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE 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 addresses changing citizen and community needs in a fiscally- responsible and customer-friendly manner. APPROVAL OF AGENDA Councilmember Jacobs requested that Item 4 of the Consent Agenda, “Approve Change Order #1 and Final Payment to CM Construction for the Top Valu Store 3 Project,” be pulled for furthe r discussion. Motion by Councilmember Murzyn, Jr., seconded by Councilmember Buesgens, to approve the Agenda as amended. All Ayes, Motion Carried 5-0. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS A. Minnesota Association of Government Communicators 2021 Awards Recognition Mayor Márquez Simula reported that the City was awarded top honors in two categories at the 2021 Minnesota Association of Government Communicators Northern Lights Awards Ceremony last month. The Columbia Heights 2020 Centennial Calendar “Yesterday and Today” won first place in the multi-page category and the inaugural event “Snowblast” City of Columbia Heights MINUTES July 12, 2021 City Council Meeting Page 2 won first place in the special events category. Additionally, the “Snowblast” event was one of five award entries independently nominated for Best in Show. The City also received an MAGC Award of Merit in Photography for the “Snowblast” event. Last year the City won the Silver Award in Photography for a firefighter training series. She thanked everyone who was involved in the projects and congratulated the City’s Communications and Events staff, with Coordinator Sandell and Specialist Rottler in attendance. Coordinator Sandell explained the voting processes, acknowledged and thanked the organizations and individuals who assisted in the projects includ ing graphic designer Lindsey Fuhrman and Specialist Rottler, and reported that 400 Centennial calendars had been sold to date. He said it was a good way to bring the community together, that proceeds raised were used to help fund the City’s 100 th Centennial events, and that events are used “to boost City pride, community spirit and civic trust, raise the overall morale of the City, provide inexpensive entertainment and snacks to families and reinforce bonds between residents, City staff and representatives from local nonprofit and volunteer organizations.” Specialist Rottler said the projects were a lot of fun to work on and he hoped the City would be able to continue bringing “Snowblast” ice skating back to Huset Park. The Council thanked the staff for their great work. B. Columbia Heights Centennial Proclamation Mayor Márquez Simula read the City proclamation announcing July 21, 2021 as “Columbia Heights Centennial Day,” recognizing and celebrating the history, culture and contributions of current and former Columbia Heights residents. C. 2020 Summary Financial Information Presented by Independent Auditor, David Mol, Redpath and Company Auditor Mol reported that the completed five audit reports included: Opinion on the Fair Presentation of the Financial Statement: Performed the audit to obtain reasonable assurance about whether financial statements were free of material misstatement and presented in accordance with Accounting Standards. The result was an unmodified or “clean” opinion issued on the 2020 financial statements. Report on Internal Controls: Performed the audit to gain an understanding of internal controls in place and their effectiveness in order to design audit procedures, data mining and deficiencies in internal control that are identified and discussed with management and reported to the City Council. The result was that no items were noted for 2020. Report on Minnesota Legal Compliance: Performed the audit to determine the City’s compliance with Minnesota Statutes and Laws that pertain to financial transactions, follow the Office of the State Auditor’s audit guide that includes conflicts of interest, contracting bid laws, miscellaneous provisions, depositories of public funds and investment, public City of Columbia Heights MINUTES July 12, 2021 City Council Meeting Page 3 indebtedness, claims and disbursements and tax increment. The result was that no items of noncompliance were noted for 2020. Federal Compliance Audit: Performed the audit to determine the City’s compliance with various Federal program requirements ($1,580,000 Coronavirus Relief Fund), which include activities allowed, allowable costs, period of availability, reporting, special tests and provisions. The result was that no findings of noncompliance were noted for 2020. Communication to Those Charged with Governance: Performed to audit accounting policies used and/or changed by the City. The result was that there were no disagreements with management and no difficulties encountered in performing the audit; it was noted that more changes in accounting standards are forthcoming in the next few years. 2020 financial results showed totals: $23,410,000 revenue, $23,378,000 expenditures (50% are for public safety), $376,000 net interfund transfers, $408,000 fund increase balance ($861,000 Capital Project Funds) and $303,511,000 fund balance ($8,377,000 General Fund balance that included $6,467,103 unassigned working capital) as of December 31, 2020. Director Kloiber provided more context to the financials beyond the audit’s December 31, 2020 cutoff. He said the City’s award for the annual Government Finance Officers Association 2020 Financial Statement was a group effort but acknowledged and thanked in particular Assistant Director Zillmer. He also noted that the General Fund balance exceeds the Council’s target for the necessary savings ($1.6 million) and a special Council work session will be scheduled in September to discuss capital needs and projects. The current utility projection goes out to 2024 and is in line with staff expectations, perhaps even slightly ahead by $100,000 per utility fund in terms of additional cash. Councilmember Buesgens asked if the capital project funds of $861,000 are separate from the monies used for the new City Hall. Director Kloiber said it is included, that the $600,000 transfer authorized by the Council went from the General Fund to the Building Fund with the intent to the buildout of the new City Hall and some additional work for the Public Works building and Murzyn Hall renovation. Mayor Márquez Simula thanked Mr. Mol and Director Kloiber for their reports and congratulated the Finance staff for the award. CONSENT AGENDA Councilmember Jacobs requested that Item 4 of the Consent Agenda, “Approve Change Order #1 and Final Payment to CM Construction for the Top Valu Store 3 Project,” be pulled for further discussion. Motion by Councilmember Buesgens, seconded by Councilmember Murzyn, Jr., to approve the Consent Agenda as presented. All Ayes, Motion Carried 5-0. City of Columbia Heights MINUTES July 12, 2021 City Council Meeting Page 4 1. Approve June 28, 2021 City Council Meeting Minutes MOTION: Move to approve the City Council meeting minutes of June 28, 2021 2. Resolution 2021-57, A Resolution Repealing Resolution 2020 -39 and Ending the Local Emergency Declaration Extended by the City Council on March 23, 2020 MOTION: Move to waive the reading of Resolution 2021-57, there being ample copies available to the public. MOTION: Move to adopt Resolution 2021-57, a resolution repealing Resolution 2020-39 and ending the Local Emergency Declaration extended by the City Council on March 23, 2020. 3. Approve Invoice Cloud as Credit Card Processor MOTION: Move to approve Invoice Cloud as credit card processor and to authorize the city manager to enter into the related agreement 4. Pulled from the Consent Agenda for further discussion: “Approve Change Order #1 and Final Payment to CM Construction for the Top Valu Store 3 Project” 5. Approve Additional of Dedicated Bicycle Lanes on Reservoir Boulevard from 37th Avenue to 40th Avenue MOTION: Move to authorize staff to add pavement markings and symbols for dedicated bicycle lanes on Reservoir Boulevard from 37th Avenue to 40th Avenue. 6. Resolution 2021-59 Designating "No Parking" on the North Side of 37th Avenue from 190' West of Madison Street to Madison Street and from 370' East of Madison Street to Quincy Street MOTION: Move to waive the reading of Resolution 2021-59, there being ample copies available to the public. MOTION: Move to adopt Resolution 2021-59 designating “No Parking” on the north side of 37th Avenue from 190’ west of Madison Street to Madison Street and from 370’ east of Madison Street to Quincy Street. 7. Resolution 2021-60 Approving Letter of Concurrence for Rice Creek Watershed District Boundary Change MOTION: Move to waive the reading of Resolution 2021-60, there being ample copies available to the public. MOTION: Move to adopt Resolution 2021-60 authorizing the Letter of Concurrence for inclusion with the RCWD petition to the Board of Water and Soil Resourc es for a boundary change. 8. Final Payment for Pump Station #3 Upgrades MOTION: Move accept the work for Pump Station #3 upgrades, City Project 2010, and authorize final payment of $142,922.67 to NAC Mechanical & Electrical Services of Vadnais Heights, Minnesota. City of Columbia Heights MINUTES July 12, 2021 City Council Meeting Page 5 9. Professional Services Agreement for Water Main Replacement Design on 37th Avenue MOTION: Move to approve a Professional Services Agreement with SEH Inc. for engineering consultant services for the design of the water main replacement on 37th Avenue in an amount not-to-exceed $18,600 appropriated from Fund 651-52203-3050. 10. License Agenda MOTION: Move to approve the items as listed on the business license agenda for July 12, 2021. 11. Review of Bills MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8 the City Council has reviewed the enclosed list to claims paid by check and by electronic funds transfer in the amount of $1,210,592.47. ITEM PULLED FROM THE CONSENT AGENDA 4. Approve Change Order #1 and Final Payment to CM Construction for the Top Valu Store 3 Project Director Kloiber reported that earlier this year the City entered into a contract with CM Construction for a major remodel to Top Valu Store #3 at 5225 University Ave NE. Because of the uncertainty of what would happen with the pandemic with regards to bidding and the contract, the project manager (Buetow 2 Architects) came up with an estimate of a potential $120,000 for the contract before it was bid. Given what the overall project budget was, the architects and Director Kloiber agreed that it would be prudent to hold desirable options out of the base contract until it would be known where the bids would be coming in. Fortunately, the low bid came in at $79,000; and so, with that, more of the favorable items were able to be put back into the contract under the change order, as well as remodeling the 60-year-old building. Councilmember Jacobs thanked Director Kloiber for the explanation, as well as Mr. Engel for being online, and said her reason to pull the item from the Consent Agenda was transparency for City residents. Motion by Councilmember Jacobs, seconded by Councilmember Murzyn, Jr., to approve Change Order #1 and final payment to CM Construction for the Top Valu 3 Project. All Ayes, Motion Carried 5-0. PUBLIC HEARINGS 12. Conditional Use Permit to Convert a Single-Family Home into a Duplex with a Detached Garage at 3927 Hayes Street NE Planner Hark reported that property owner Manuel Jesus Romero Quizhpi applied for a conditional use permit to allow for the conversion of a single -family home to a duplex at 3927 Hayes Street NE. The existing home is proposed to remain in its current location, with an addition in the rear and a second unit to be constructed above. The existing detached single-car garage is proposed to be demolished and replaced with a detached two -car City of Columbia Heights MINUTES July 12, 2021 City Council Meeting Page 6 garage in the southeast portion of the property. She described the need for a Conditional Use Permit and said both the lot and proposed development meet the R2A zoning standards. Staff finds the request to be reasonable and will not negatively impact the health, safety or welfare of the City, its residents and property owners. On July 6, 2021, the Planning Commission unanimously voted to recommend approval to the City Council on this matter. Staff recommends that the City Council approve the conditional use permit as presented, subject to certain conditions as outlined in the resolution. Mayor Márquez Simula asked whether the current family is planning to stay in the house. Planner Hark said it was her understanding the family does plan to do so and perhaps renting out the other half. Councilmember Buesgens asked whether noted grading issues had been addressed. Planner Hark said she believed so but could be vested through the building permit process, with mitigation of any drainage issues. Councilmember Buesgens asked about the noted driveway material and retaining wall concerns. Planner Hark the material issue had been addressed and the retaining wall issue could also be addressed through the building permit process. Councilmember Buesgens said neighbors had cited a potential issue of available parking for the new duplex residents, as five cars are already on the property and there would only be enough space for one additional. Planner Hark explained that there is a large driveway and the garage is on the most southeast portion of the lot, and immediately behind the duplex are delineated parking spaces, so there would be sufficient parking availability. Mayor Márquez Simula opened the public hearing. No one was onsite or online to address the Council. Motion by Councilmember Buesgens, seconded by Councilmember Novitsky, to close the public hearing and waive the reading of draft resolution 2021-58, there being ample copies available to the public. All Ayes, Motion Carried 5-0. Motion by Councilmember Buesgens, seconded by Councilmember Jacobs, to approve Resolution 2021-58, granting a Conditional Use Permit for a proposed two-family development to be located at 3927 Hayes Street NE subject to conditions outlined within the resolution. All Ayes, Motion Carried 5-0. ITEMS FOR CONSIDERATION Ordinances and Resolutions City of Columbia Heights MINUTES July 12, 2021 City Council Meeting Page 7 13. Resolution 2021-61 Sale of Taxable General Obligation Temporary Tax Increment Bonds, Series 2021A Dahl, Municipal Advisor with Ehlers explained that the proposed resolution before the Council is a resolution awarding the sale of taxable general obligation temporary TIF bonds in the amount of $5,935,000. The number reflects a reduction of about $65,000 from the original amount, which is due to the lower-than-anticipated underwriter discount and the lower interest rate. With the presale, a true 1% interest rate was anticipated but it ended being closer to 0.5%. The bonds would be sold to provide temporary financing for the acquisition and demolition of the shopping center that is located on the former Hy-Vee site and would be issued for a three-year term, with principal on the bonds due on February 1, 2024 and interest payable every six months beginning August 1, 2022 and paid from the Capital Interest Fund; so, the City will not be spending any of its General Fund dollars, as the interest has been built into the bond deal. Once the developer is ready to close on the property, all proceeds will be given to the City to close out the bond d eal. He added that on June 10, 2021 Ehlers had a rating call with S&P and City staff, and at that time the City’s AA rating was affirmed. Lastly, he said the sale was held July 12, 2021, where five bids were received, and staff recommends that Council award the sale of the bonds to Piper Sandler Companies, of Chicago, Illinois, as they were the lowest bidder at true interest costs of 0.5461%. Director Kloiber said that, at the upcoming work session in September, Council and staff will begin to prioritize capital projects and their financing. He added that when the Alatus project at the former Hy-Vee site was first being considered by the EDA and Council last March, there was an alternative to bond financing to use the City’s own funds and tie those up between now and the time that the developer could potentially get their permanent financing and the City could get its money back. He believes this has turned out very well for the choice to use the bond financing at 0.5%, which allows more flexibility for City needs. Motion by Councilmember Jacobs, seconded by Councilmember Novitsky, to waive the reading of Resolution 2021-61, 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 2021-61, a resolution awarding the sale of taxable general obligation temporary tax increment bonds, series 2021A, in the original aggregate principal amount of $5,935,000, fixing their form and specifications, directing their execution and delivery, providing for their payment, and authorizing the execution of documents in connection therewith. All Ayes, Motion Carried 5-0. CITY COUNCIL AND ADMINISTRATIVE REPORTS Report of the City Council Mayor Márquez Simula met with Billy Richards, who had lived in Columbia Heights and put together City of Columbia Heights MINUTES July 12, 2021 City Council Meeting Page 8 the sled library that was donated to Keyes Park and said he would be happy to build another one for next year and/or in other parks. She said she looks forward to the Centennial event on Saturday, July 17, 11:00 am to 2:00 pm at Huset Park and said everyone is welcome to attend. There will be a Zoom event regarding the Mayor’s Monarch Pledge, “Ask a Landscape Architect a Question,” on Wednesday, July 14, and information is on the City’s Facebook page and Columbia Heights Mayor’s Monarch Pledge page. The Columbia Heights-Fridley Rotary Golf Outing charity event will be held on Monday, July 19, at the Refuge Golf Course, and information is available at fchgolfclassic.com. Councilmember Buesgens assisted with the deliveries of the produce to chicken keepers in town last week, continued to volunteer at Blooming Sunshine Garden, attended the “Music in the Park” and saw some of the Fire Department’s house-burning training event. Councilmember Jacobs attended “Music in the Park,” attended two out -of-state Pride Fests at the end of June, attended the second of four seminars on advancing awareness in the LGBTQ community, spent some time with a couple of members from Glitz and discussing some of the struggles they face, and participated in the video for the Centennial proposed by Representative Feist and continues to volunteer with SACA and pickup at storm drains. She spent most of day on Saturday at the Fire Department’s house-burning training event, got a tour of the inside of the dwelling with Chief O’Brien before the drills began and was able to visit with the house’s family who shared quite a bit of history about their multigenerational home; she thanked Chief Tho mpson for investing the time and energy in order to accomplish this level of training episodes and the entire department for their commitment to safety. She looks forward to the City’s celebration this weekend at Huset Park and will be in the dunk tank 1:45-2:00 pm. Lastly, she reported that donations of small appliances, household goods and clothing items in good condition can be made to SACA, and their contact number is 763 -789-2444; and the Lions is hosting a “Heights Speakeasy” on September 18, with ticket sales now open, and a limited number of pre-sale dinner tickets ($50 per person) and/or dance tickets ($15 per person) can be purchased from any Lions member or through Councilmember Jacobs at 612-810-0512. Councilmember Murzyn, Jr. attended “Music in the Park.” Councilmember Novitsky has not been able to attend all of the City events but said there will be an upcoming Booster golf tournament at Majestic Oaks and a Kiwanis peach online sale , with delivery on August 20. Report of the City Manager Manager Bourgeois said the band “Wander North” played at “Music in the Park” and over 100 people attended the event, with two food trucks in attendance, the Lions sold beer and First Lutheran Church handed out water and lemonade. As noted earlier, Saturday, July 17 is the City’s Centennial event at Huset Park East 11:00 am to 2:00 pm, with 20 community groups providing activities, snacks, live music, bingo and yard games. Wednesday, July 21, is the City’s actual birthday, and there will be a community dinner 5:00-7:30 pm Huset Park East, and all are welcome to attend. As noted earlier, she said the fire training went very well and Chief Thompson really helped the family go through the property and explained what they would be doing and how beneficial the training would be; she said Chief Thompson reported there were 18 different types of scenarios through the 100 -year-old home. City of Columbia Heights MINUTES July 12, 2021 City Council Meeting Page 9 Report of the City Attorney Attorney Hoeft had no update. COMMUNITY FORUM There was no one onsite or online to address the Council. ADJOURNMENT Motion by Councilmember Jacobs, seconded by Councilmember Buesgens, to adjourn. All Ayes, Motion Carried 5-0. Meeting adjourned at 7:57 pm. Respectfully Submitted, ______________________________________ Nicole Tingley, City Clerk/Council Secretary