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CITY COUNCIL WORK SESSION
Public Safety Bldg —Training Room, 825 41st Ave NE
Monday, March 07, 2022
7:00 PM
MINUTES
Mayor
Amada Marquez Simula
Councilmembers
John Murzyn, Jr.
Connie Buesgens
Nick Novitsky
Kt Jacobs
City Manager
Kelli Bourgeois
The following are the minutes for the City Council Work Session held at 7:00 pm on Monday, March 7,
2022, at the Public Safety Building, Training Room, 825 41st Avenue NE, Columbia Heights, Minnesota.
Due to the COVID-19 pandemic, this hybrid meeting was held both virtually and in -person.
CALL TO ORDER/ROLL CALL
Mayor Marquez Simula called the meeting to order at 7:10 pm.
Present: Mayor Marquez Simula (via Zoom); Councilmember Buesgens; Councilmember Jacobs;
Councilmember Murzyn Jr. Councilmember Novitsky.
Also Present: Lenny Austin, Chief of Police; Kelli Bourgeois, City Manager; Aaron Chirpich, Community
Development Director, Jesse Hauf, IT Director; Minerva Hark, City Planner; Sara Ion, City Clerk/Council
Secretary; Dan O'Brien, Assistant Fire Chief; Ben Sandell, Communications Coordinator; Charlie
Thompson, Fire Chief.
WORK SESSION ITEMS
1. Fiber Connection Project.
City Manager Bourgeois introduced IT Director Jesse Hauf and the needs regarding the
fiber connection project. There are several issues to resolve regarding connectivity and the
new City Hall project. Arvig is a Telecommunications Company, based in MN. Arvig has
already contracted with Alatus to provide internet services to the apartment buildings
above City Hall. Generally, the city needs a second ISP connection. There are restrictions
with the current capabilities for growth. Bandwidth constraints are related to conferencing
and collaboration, police video, public access computers, cloud services, VPN, future cloud
services.
The city has enrolled in E-Rate: Public federally funded internet connection for Public
Schools and Libraries. Columbia Heights qualifies for 80% reduction in costs. Director Hauf
gave an overview of the Arvig E-Rate pricing. This pricing aligns with the City's mission and
strategic planning.
Fiber will be brought in July. Fiber connections: Murzyn Hall, Public Works, Library and New
City Hall. There are grants and state funds that are available and we are able to start the
project prior to the grant money being fully received.
Director Hauf recommends granting the contract for this work to Arvig.
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Councilmember Murzyn Inquired as to who will puling the cable line.
Director Hauf stated that Arvig will be completing the tasks related to this. Public Works
will do the locates.
Councilmember Buesgens stated that this plan looks great.
Councilmember Novitsky stated that this looks like a good plan, and he is happy they are
being proactive.
City Manager Bourgeois stated that this item will be on the Consent Agenda at the
upcoming Council Meeting.
Director Hauf also discussed the current Comcast connection for each of the Liquor Stores.
He bid out a proposal to connect the liquor stores and eliminate the dependency on
Comcast and create a redundant connection. There will be a fiber connection at all sides of
the city. This project is also grant eligible, and it is his recommendation that we move
forward with the project.
Councilmember Jacobs stated that it makes sense to have everything on the same system.
She was felt that it would accommodate future growth.
Councilmember Novitsky stated that this would be an improvement for consistency and
efficiency with credit card processing. This will allow a better experience for our customers.
He likes taking the reliance away from Comcast.
2. Targeted Picketing Ordinance.
Police Chief Austin lead the discussion related to a proposed addition to the City Code to
address concerns with Targeted Picketing. Chief Austin stated that compared to when he
started in 1995 things have changed, and so have the needs of the community. Previously
this would not have been something that would have been considered or needed. There
has been an increase in pressure and harassment of elected officials and leaders in the
community (school board officials, etc.). Chief Austin included in the packet the Ordinance
that was recently passed by the City of Champlin. He chose the example from Champlin
because it was drafted by Staff at Barna, Guzy and Steffen Law Office. This is a very specific
ordinance for specific situations. The language in the Ordinance has the protection of First
Amendment rights in mind and is specific to targeted picketing.
Councilmember Buesgens stated that she feels that this is a great idea and that we have
not had this issue previously in this community. She has concerns about keeping neighbors
and community safe. People protesting can be in public spaces and public building but in
front of a home is a concern.
Councilmember Murzyn stated that he went thru the ordinance, and it looks good to him.
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Councilmember Jacobs stated that she supports the ordinance and feels that it is
necessary.
Councilmember Novitsky supports the ordinance as well.
Mayor Marquez Simula stated that she and Chief Austin had discussed concerns related to
First Amendment rights. Currently if this were to happen the Police Department would be
limited in how to address the issue. Currently their hands are tied in how to disperse
people. She wanted to know how this would assist the department in addressing the issue.
Chief Austin stated that currently we are limited in our actions to address a gathering
directed at a residence. There would need to be a heightened level of activity, and this
ordinance would give us more options with dealing with these concerns. In talking with
other Chiefs this is something that we want to get out in front of so that we have the ability
to take action.
Mayor Marquez Simula stated that there would need to be targeted residential picketing
for this ordinance to be applicable.
Chief Austin read the language in Champlin Ordinance. It is very specific, because there can
not be a broad definition because we do not want to infringe on individual rights.
Councilmember Jacobs clarified that the ordinance does not require the targeted property
to file the complaint. Neighboring properties can report the concern. She has previously
reached out to her neighbors and asked for harassing behavior to be reported if it was ever
a concern.
Chief Austin stated that the picketing has to be occurring without that person's consent.
City Manager Bourgeois stated that neighbors can call the complaint in to the police
department, but the Police Department would need to confirm who is being impacted.
Chief Austin stated that he will work with the City Attorney to draft the language for the
ordinance. The first reading of the Ordinance will likely be at the March 28, 2022, City
Council Meeting.
3. Public Safety Fencing Update.
Chief Austin presented a brief update on what Captain Johnston has been working on
related to upgrading the fencing at Public Safety. The authorization to seek bids will be
brought to Council at the March 14, 2022, City Council meeting.
City Manager Bourgeois stated that after the approval to seek bids we should have more
information by April on moving forward with the project.
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4. Time of Sale
City Manager Bourgeois stated that Building Official Ryan Smith is on vacation so
Community Development Director Aaron Chirpich will give some information on Time of
Sale (TOS) concerns related to single family homes.
Director Chirpich stated that municipalities in Minnesota are authorized to create
inspections programs for single family homes before the home is sold. These programs can
be referred to as Time of Sale, Point of Sale, or Truth in Housing. Inspection criteria can be
determined by the city, and inspections are an overview of the property and does not call
out minor issues. The TOS (Time of Sale) program would be directly related to concerns
that are eminent hazards. Director Chirpich reviewed some photos of what are considered
eminent hazards and actual concerns that the Building Official have found here in Columbia
Heights.
Councilmember Buesgens inquired as to what the steps would be with the inspections and
the items that need to be corrected.
Director Chirpich stated that the sale could be completed, but there would be concerns
between the buyer and the seller. The degree of hazard would dictate how the issue is
corrected. If there was an escrow component, then it would be handled with the mortgage
company. There could be a contract or legal obligation to complete the improvements.
Director Chirpich stated that an all -encompassing route for inspections could be a better
option for implement this program. This would catch the unlicensed contractors and
flippers. It provides for and increases the level of security for people purchasing properties.
Currently there are a lot of people being forced to forgo inspections because of the
pressure in the housing market.
Director Chirpich also addressed the staffing component of a Time of Sale Program. These
inspections would be carried out by a city employed inspector or a contractor. Director
Chirpich would recommend that inspections are completed by a member of city staff, and
we would need to hire an additional staff member. This staff member would hold a limited
building official license and would be an assistant to the Building Official and partner with
the City Planner. This additional staff member would potentially allow the city to maintain
additional information as far as business property inspections and increase the capacity of
the program. The Time of Sale program could generate $50,000 in fees and would need
general fund support to fund the program.
Councilmember Buesgens stated that she remembers a previous Fire Chief talking about
rental properties being in better shape than owner occupied properties. She also stated
that she just found out today, there were many realtors that protested the previous efforts
to move this program forward. Overall Council needs to know who is coming forward with
concerns. She would encourage Aaron to bring the photos he used this evening to show as
part of the presentation if this moves forward.
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Councilmember Jacobs recalls information from the late 90's and there were residents that
were against Time of Sale programs. She stated that she is absolutely against this program.
When you buy a home, you have a responsibility to yourself. She is more open to first time
home buyer classes. Many of these things are redundant and a potential buyer is entering
into a contract. She feels that there is a liability if the City gets involved in this process. She
cannot fathom a buyer not getting an inspection. She feels that as a city we are already
pressed with the rental licensing component and would rather see additional staff geared
toward the rental licensing situation. She might be ok with mandating that a buyer
completes an inspection. She does not feel that this is the City's responsibility. There needs
to be personal accountability for the things people are buying and owning.
Councilmember Novitsky is against mandating this by the city and that buyers should not
waive rights to an inspection. He does not want this to be mandated.
Councilmember Murzyn has mixed feelings. He wants to know the liability involved if there
is something missed on the inspection, and to fully understand how we pay for this
position. He would also want to know what happens to catch the cash sales. There are a lot
of homes in Columbia Heights that are sold for cash.
Director Chirpich stated that he wants to follow up with the City Attorney and City
Manager regarding the liability for the City after an inspection.
City Manager Bourgeois stated that we have protection civilly. There is more liability for fall
out against the city for not finding a concern during the inspection. The city is protected
from liability if we are acting on good faith.
Councilmember Buesgens reiterated that she supports the program. This is a way to
support the safety of the homeowner occupied homes. This improves our housing stock
and exposes issues that can be caught prior to purchase.
Mayor Marquez Simula inquired as to whose responsibility it is to report the property
would need to have an inspection? She does not feel like this is an over regulation, and the
added level of government is not a burden but a positive thing for our residents. She sees
how this program would be beneficial to City and County tax base. Landlords having the
ability to buy properties, waive inspections or illegally rent it (and are waiting to get
caught). She would like there to be an equal playing field for homebuyers.
Director Chirpich stated that the current market does not always allow for an inspection.
There is an argument that this is not a personal responsibility because to be competitive
often an inspection needs to be waived. This piece could flatten, and we do not know
if/when it will.
Councilmember Jacobs stated that she knows the Mayor has had a direct experience with
this concerns and that Frost has brought up this issue in the past.
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Council Murzyn would also want to know what happens to catch the cash sales. There are a
lot of homes in Columbia Heights that are sold for cash.
City Manager Bourgeois stated cash sales do need to be registered at the County. It would
be caught after the fact, and we can go back to a buyer and begin the process of an
inspection. If the mandate for inspection comes from the ordinance level, then it creates
an added layer of government. One way to handle this, is that there is a city ordinance that
an inspection must happen. The other end of the spectrum is that the inspection needs to
be completed by the city.
Mayor Marquez Simula inquired if there is an impetus as to why this topic was brought up.
She knows that Councilmember Jacobs is a landlord and that shades her experience in the
situation as well. Even though she has a personal experience, she does not have a conflict
of interest.
Director Chirpich felt that this was an important topic at this time, and the matter was
amplified by the corporate landlord issue
Councilmember Novitsky feels that cities have discontinued these programs. He does not
believe that there are other cities looking to implement programs like this.
City Planner Hark stated that if we had this back when other cities were reviewing this or
implementing this, we likely would not be having the issue that we are having now. Some
other communities are not seeing a need for this.
Councilmember Jacobs stated that she is concerned with the additional level of
government. She would be open to having an ordinance for buyers to complete an
inspection that is not completed by the City.
Director Chirpich stated that there would still be staff time to confirm compliance with the
ordinance.
Councilmember Buesgens confirmed with Director Chirpich that the Relator would be who
confirms that the inspection occurs, and there would be outreach to convey information.
Councilmember Novitsky does not understand if this is important why is it not being taken
up at a state level. He feels that we do not want to increase taxes to pay for this initiative,
and that we are making many small steps to get our properties to a better standard.
Councilmember Jacobs inquired as to how many homes have had violations after the fact,
and feels that we are acting on blind faith if this is even an issue.
Director Chirpich stated that in the absence of a Time of Sale Program we have no way to
know what is going on with the owner -occupied properties.
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Mayor Marquez Simula liked Councilmember Murzyn's idea and would like to see that
further explored related to the city not completing the inspection. She does feel that a
staffed position would also be money well spent.
Director Chirpich gave a full breakdown of what would be needed to fulfill a staffed
position to accomplish this Time of Sale Program, and what other responsibilities they
would be able to assist with.
Councilmember Jacobs was not in support of funding this position.
Councilmember Novitsky was concerns about what happens for funding to the position if
there is a decrease in home sales.
5. Rental Licensing.
City Planner Hark began the presentation related to the regulation of rental density for
single family homes. There is a concern related to non -owner -occupied single-family homes
and how this impacts the housing stock. Overall, we want to understand our true housing
stock. There will need to be counts on lots, rental density maps reviewed, and a focus on
maintaining the maps to make them more transparent and easier to use. If we were to
move forward with regulating rental density, there would need to be a notification of
current license holder related to non -conformity issues when transfer or sale of the
property occurs. We would also need to create a city website related to the new ordinance
with transparency of what is occurring and how it is occurring.
Councilmember Murzyn would like to make sure there are exceptions built in for rental
licenses related to military service, and deployments being extended.
Councilmember Jacobs was curious about how double lots impact the regulation.
City Planner Hark felt that this would not be a huge impact.
City Planner addressed Councilmember Novitsky concerns related to sober homes. Some of
the sober living homes have rental licenses if the owner of the property is not running the
home. Overall duplex's are not something that we can regulate the number of rental
licenses, as they are purely rental in nature.
Councilmember Jacobs stated that she is very excited about this and has been trying to
work towards this as a goal for a couple of years. She is excited but has concerns.
Most important, this discussion is about licensed rentals. There are a substantial number of
unlicensed rentals, and we need to be very aware of this. She would like to see Duplex's
grandfathered into the program. She wants these factored in vs. an apartment building.
She would like to see when a property is sold, that the license is not automatically
renewed. She would like to see no exemption for properties transferred to another family
member. She would also like to see the license fee increased. She wants to make sure we
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capture unlicensed rentals. She would like to see updates regarding property owners
renting a room at their property. She wants to make sure there are ample parking spots at
all rental properties. She would like to see a tiered process for licensing fees and would
rather see a point system that is less complicated.
City Planner Hark indicated that the purpose of this ordinance would not be to regulate
anything other than single family rental property. The concern is that it takes the equity
from the ordinance when we are counting duplex's and fourplex's instead of just single-
family homes.
City Manager Bourgeois stated that we cannot change the legislative property rights that
duplex owners have. What West St. Paul and Anoka have done has established that this is
the correct process regarding property rights.
Assistant Fire Chief O'Brien stated that as soon as we are treating one block of all duplex's
different from single family homes it will create disparate opportunities for access
regarding rental licenses.
Councilmember Murzyn likes what has been brought up by Planner Hark. He would not like
to see properties grandfathered in once the property has a change of ownership. He would
like to see sober houses considered under the same thing as a rental property.
Councilmember Buesgens likes the program and would like us to look like West St. Paul.
She would like to see two years and then Landlord is timed out / not grandfathered in as a
legally non -conforming property. She would like to see if the owner sells the house, they
lose the right to rent. She would also like to narrow down the language related to having a
license revoked.
City Planner Hark called attention to the heat map that was included in the packet to
address concerns related to mixed incomes and how many rental properties are in an area.
If they allow a license to lapse that would lead to revocation.
Councilmember Jacobs inquired about a grace period for landlords.
City Planner Hark stated that once the ordinance is passed it would go into effect
immediately as our rental licensing occurs on a rolling basis.
Assistant Fire Chief Dan O'Brien reviewed information on an Incentive -Based Licensing Fee
structure. This is a system by which the city uses criteria gathered from several sources to
evaluate the condition and management of the property. Using a calculation, the
properties are placed into tiers, which then determine the frequency of their inspections
and their licensing fee. The system is based on the concept of rewarding well -managed and
maintained properties with less frequent inspections and cheaper license fees because,
overall, they consume fewer city services. In this system, a "tier 1" property generally
requires little city intervention and is well maintained while a "tier 3" rental property is
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considered to consume excessive city services and is often poorly maintained. The city of
Minneapolis uses a system like this. While complex, their system appears to be a fair and
reasonably designed system. Using two calculated elements, the Property Conditions and
the Property Management score, the incentive- based tier system generates a fee for each
score, which is then added together to determine the licensing fee. The scores are dynamic
so a rental license fee can differ from year to year based on the conditions/scores at the
time of licensing. This can incentivize a property owner to improve their property's tier to
obtain a less expensive license and have fewer inspections.
Councilmember Buesgens clarified with Fire Chief O'Brien that the management score
would be a universal score, but the property score would be per home / building. She also
stated that she has concerns related to the point structure. She would like to see this
tightened up. She wants to raise our expectations with landlords who want to do business
in our city. They are a business, and their job is to take care of properties.
Councilmember Murzyn is glad that we have a new regime working to improve this issue.
We need to move forward and let them do the work.
Councilmember Jacobs believes the point system needs better clarification, and to be less
complicated. Rental properties are a business, and they need to comply. She feels that
overall, what has been presented is a huge improvement over the past several years. We
may need more help to get more done. We do not allow other businesses to operate with
these loose standards. We need to be done playing nice guy. We want to reward proactive
landlords and target the inactive landlords and increase fees for them.
Councilmember Buesgens stated that because we value homeownership in the city, we
want to slow down the transition from single family rental to corporate landlords by
increasing the fees. She would like to see an increase in the fees for a conversion of a home
to a rental property. Overall, she wants to make sure that the landlord has the finances to
fix a roof or purchase a furnace.
Assistant Fire Chief O'Brien would like to implement this program after the department
reviews violations / revocations. There are two sides to the coin. What has been presented
tonight is just a proposal. The good landlords will not see a change in their fees.
Mayor Marquez Simula asked if we have enough information to move ahead.
Councilmember Murzyn would like to give Dan the go ahead to move ahead for the next
session.
Councilmember Buesgens confirmed at the next meeting Assistant Fire Chief O'Brien would
bring additional data.
Councilmember Novitsky confirmed that he would like to see the tiers of fees stay where
they are for good landlords and increases for the other tiers.
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City Manager Bourgeois confirmed how Council would like to move forward related to
Time of Sale and Fee Structures.
Mayor Marquez Simula confirmed that three members of Council were open to
conversations related to an ordinance regulating Time of Sale.
Assistant Fire Chief Obrien would like to review standards related to Property Maintenance
Code. This information was last reviewed in 2011. He would also like to address concerns
related to tenant support information, at this time the information included in the packet is
just for discussion of council.
Mayor Marquez Simula would like one specific meeting related to the subject of Tenants
Rights as it is a deep subject. We need to give Dan more time to investigate and capture
the information we discussed.
Assistant Fire Chief O'Brien gave a brief update regarding the Havenbrook Properties. They
have not submitted the needed paperwork to have the item on the next City Council
Agenda. Inspections have been completed, and building official has submitted information.
City Manager Bourgeois stated that if the paperwork is not completed, we need to post the
properties as illegal to occupy.
Councilmember Buesgens would like different notice related to license to revoke vs.
eviction notice. Confirmed that this could be posted in the next few days.
City Manager Bourgeois stated that she would follow up with the City Attorney regarding
that question. She confirmed Councilmembers comment that Council is not allowed to
comment related to Havenbrook. She stated that this is not what anyone wants but it is the
current position that we are in.
Fire Chief O'Brien stated that he has spoken with Shelly Jensen with Adjudicare and they
are moving forward with their tenant remedies action.
Fire Chief O'Brien stated that he is working with the County on a warrant related to the
4959 5t" Street property. The landlord is also working to evict the tenants.
Councilmember Jacobs inquired what the process would be related to Havenbrook
evictions if the landlord moved forward with that process.
Fire Chief O'Brien stated that we would need to follow up with the City Attorney regarding
this topic.
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S. Community Survey Status Update.
Communications Coordinator Ben Sandell discussed with Council that the Survey is
completed. The data needs to be further analyzed and a presentation will be given at the
March 28, 2022, City Council meeting by Morris Leatherman. The separate city website
survey has collected approximately 200 responses and will be available until March 11 for
residents to complete.
Councilmember Buesgens stated that she was disappointed that there is not a lot of
participation in the online survey. She was hoping that there would be at least 1,000.
6. Legislative Redistricting Information: Updates to Precinct 2 and 7.
City Clerk Ion presented information related to the new legislative district boundaries. The
City of Columbia Heights will now be split into two different House Districts: 39A and 39B. The
city must pass a resolution to update Precinct 7 so it is no longer split by the legislative
boundary for ballot consistency. Per the Redistricting Panel Precincts 1 through 6 will be in
House District 39B, and Precincts 7 through 8 will be in House District 39A.
A six -block portion that was once in Precinct 7 (the area below the City of Hilltop, between 45th
Avenue NE / 44th Avenue NE from Washington Street to Central Avenue) will need to be
reassigned to Precinct 2 to maintain ballot consistency for House District 39A and 39B. This
adjustment will impact approximately 360 voters.
Council confirmed that they were in favor of these changes and that the resolution to update
the precincts will be included on the March 14, 2022, City Council Consent Agenda and GIS
maps will be sent to Anoka County and MN Secretary of State.
Mayor Marquez Simula confirmed that this resolution will be on the consent agenda at the
upcoming meeting.
6. Confirmed Date for 2022 Local Board of Appeal & Equalization Meeting: April 11, 2022.
City Clerk Ion confirmed that the Local Board of Appeal and Equalization (LBAE) Meeting
will be held prior to the April 11, 2022, City Council Meeting at 6:00 pm. Mayor Marquez
Simula, Councilmember Buesgens and Councilmember Jacobs all confirmed that they will
be in attendance.
Councilmember Novitsky thanked the trained members of Council.
7. Confirm Dates for Board and Commission Interviews.
City Clerks Ion confirmed with the Council that Board and Commission Interviews could be
held on March 22nd and March 23,d starting at 4:30 pm. There are 16 total applications, 15
interviews needed, with 20-minute time slots for candidates.
Council received redacted packets containing the applications and confirmed that two
dates for interviews was preferable. There was consensus to hold the interviews in Council
Chambers.
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8. Noncompliance Notice
City Manager Kelli Bourgeois notified the Council that based on the Judge's Order for
Summary Judgement there will be a notice of noncompliance sent to Jeff's Bobby and
Steve's in the near future restricting their actions on the impound lot. She anticipates that
there will be contact from Bobby and Steve's related to the issue. She anticipates that they
will file a temporary restraining order.
ADJOURNMENT
Mayor Marquez Simula adjourned the meeting at 10:30 pm.
Respectfully Submitted,
— ;�JL
Sara Ion, City Clerk