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HomeMy WebLinkAbout10-10-2022 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, October 10, 2022 6:00 PM MINUTES The following are the minutes for the Meeting of the City Council held at 6:00 pm on Monday, October 10, 2022, 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 6:00 pm. Present: Mayor Márquez Simula; Councilmember Buesgens; Councilmember Jacobs; Councilmember Murzyn, Jr.; Councilmember Novitsky Also Present: Aaron Chirpich, Community Development Director (Acting City Manager); Kevin Hansen, Public Works Director; Jim Hoeft, City Attorney; Sara Ion, City Clerk; Joe Kloiber, Finance Director; Ben Sandell, Communications Coordinator; Kevin Bumgardner, City Resident; Joel Bartlett, City Resident; Nelle Bing, City Resident; Frost Simula, City Resident; Theresa Strike, City Resident; Kiki Latham, City Resident; Degha Shabbeleh, City Resident; Destiny Sparks, City Resident; Jennifer Pyper Muno, City Resident; Aza Donnelly, City Resident; Joanna Stark, City Resident; Rachel James, City Resident. 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. PLEDGE OF ALLEGIANCE APPROVAL OF AGENDA Motion by Councilmember Buesgens, seconded by Councilmember Novitsky, to approve the Agenda as presented. All Ayes, Motion Carried 5-0. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS Mayor Márquez Simula made note that October 10, 2022, was “Indigenous Peoples’ Day”. She stated that this day is to recognize and celebrate the invaluable contributions and resilience of the indigenous people in Minnesota and all around the world. CONSENT AGENDA Motion by Councilmember Buesgens, seconded by Councilmember Jacobs, to approve the Consent Agenda as presented. All Ayes, Motion Carried 5-0. 1. Approve September 26, 2022 City Council Meeting Minutes MOTION: Move to approve the September 26, 2022 City Council Meeting Minutes. City of Columbia Heights MINUTES October 10, 2022 City Council Meeting Page 2 2. Approve September 28, 2022 Special City Council Meeting Minutes MOTION: Move to approve the September 28, 2022 Special City Council Meeting Minutes. 3. Accept May 11, 2022 Youth Commission Meeting Minutes MOTION: Move to accept the May 11, 2022 Youth Commission Meeting Minutes. 4. Approve September 6, 2022 EDA Meeting Minutes MOTION: Move to approve the September 6, 2022 EDA Meeting Minutes. 5. Accept September 7, 2022 Library Board Minutes MOTION: Move to Accept the Library Board Minutes from September 7, 2022. 6. License Agenda MOTION: Move to approve the items as listed on the business license agenda for October 10, 2022 as presented. 7. Rental Occupancy Licenses for Approval MOTION: Move to approve the items listed for rental housing license applications for October 10, 2022, in that they have met the requirements of the Property Maintenance Code. 8. 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 fu nds transfer in the amount of $1,822,325.19. ITEMS FOR CONSIDERATION 9. Censure and Direction of Council Member Kt Jacobs Acting City Manager Chirpich reported that the Columbia Heights City Council met in special session on Wednesday, September 28, 2022, to formally receive the investigative report regarding allegations of racially inappropriate comments and untruthfulness against Councilmember Jacobs. Based on the findings in the report, the four Councilmembers unanimously felt a public censure and removal from all eligible Boards and Commissions was appropriate. The Council directed Staff to prepare the censure, to include removal of Councilmember Jacobs from appointed Boards and Commissions, to be presented and formally acted upon by the City Council at the October 10, 2022, regular meeting. Councilmember Buesgens asked that the Council not waive the reading of the Resolution. Motion by Councilmember Novitsky, seconded by Councilmember Murzyn Jr., to waive the reading of Resolution 2022-93, there being ample copies available to the public. 1 Aye, 3 Nays, 1 Abstention (Buesgens, Márquez Simula, and Novitsky opposed, Jacobs abstained). Motion Failed 1-3-1. Councilmember Buesgens read the Resolution. City of Columbia Heights MINUTES October 10, 2022 City Council Meeting Page 3 Motion by Councilmember Novitsky, seconded by Councilmember Buesgens, to approve Resolution 2022-93, a resolution for the censure and direction of Council member Kt Jacobs. 4 Ayes, 1 Abstention (Jacobs abstained). Motion Carried 4-1. Motion by Councilmember Buesgens, seconded by Mayor Márquez Simula, to formally request that Councilmember Jacobs resign from her position. A roll call vote was taken. 4 Ayes, 1 Abstention (Jacobs abstained). Motion Carried 4-1. Mayor Márquez Simula directed to Councilmember Jacobs that as a Council, that they would like her to resign. Councilmember Jacobs stated that she would not resign. 10. Approve Early Access Agreement and Related Agreements for City Hall Condo Buildout Director Chirpich reported that on September 28, 2020, the Council approved the sale of the redevelopment site located at 40th and Central Avenue to BPOZ, LLC, which is Alatus, the City’s developer partner for the project. As part of the purchase and redevelopment contract, BPOZ agreed to construct a 21,000 square foot office condominium that will be conveyed to the City for the buildout of a new City Hall. The City Hall space will be delivered to the City in a condition referred to as “gray-shell.” The term gray-shell finish is used to describe a unit where the interior is mostly unfinished with just the basic utility connections stubbed into the space. To ensure the future delivery of the City Hall condo unit, and specific standards for the condition of the unit at the time of conveyance, the City has executed a transfer agreement with BPOZ, LLC. The transfer agreement functions much like a purchase agreement but is labeled as a transfer rather than purchase because the City has paid for the condo unit on the front end of the transaction by reducing the sale price of the development site. To complete the City Hall buildout, the City will act as general contractor. To this end, the City has approved and executed contracts with its subcontractors that will be completing the buildout. Chirpich stated that the construction of the City Hall condo unit is now substantially complete, and the physical space is ready to be conveyed to the City. However, due to unforeseen delays in registering the title, recording the final plat, and recording of the declarations for the condominium association, the City and BPOZ are unable to complete the conveyance of the City Hall condo unit. Rather than wait for all of the aforementioned background title work to conclude, the City desires to secure early access to the City Hall condo unit to commence the buildout of the space. To this end, Staff has worked with the City’s general counsel, First American Title, and counsel for BPOZ to craft an Early Access Agreement and compile related ancillary documents. In summary, the agreement and the required secondary agreements, work to establish access rights, insurance requirements, and seek to insulate each party from mechanics liens generated by the opposite party. Chirpich said that the ancillary agreements include an escrow and disbursing agreement, and separate indemnity agreement. The escrow and disbursing agreement will be made between the City and First American Title, and it will provide for oversight of all payments made to City subcontractors. The indemnity agreement is also between the City and First City of Columbia Heights MINUTES October 10, 2022 City Council Meeting Page 4 American Title, and it serves to provide a layer of protection to First American Title from the responsibility of removing/paying for mechanics liens created by City contracted work. He further stated that this is being done because as of now there are not two legal descriptions, therefore, there aren’t two properties. A copy of all agreements was included in the packet for review by the Council. Motion by Councilmember Novitsky, seconded by Councilmember Murzyn Jr., to waive the reading of Resolution 2022-94, there being ample copies available to the public. All Ayes, Motion Carried 5-0. Motion by Councilmember Novitsky, seconded by Councilmember Murzyn Jr., to approve Resolution 2022-94, a resolution approving Early Access Agreement with BPOZ, Columbia Heights, LLC for the buildout of the City Hall condo unit at the 40th and Central redevelopment site. All Ayes, Motion Carried 5-0. Motion by Councilmember Novitsky, seconded by Councilmember Murzyn Jr., to approve the Construction Disbursing and Indemnity Agreements as presented subject to modifications that do not alter the substance of the transaction and that are approved by the City Manager. All Ayes, Motion Carried 5-0. 11. Clarify for the Record, the Budget Appropriation for City Hall Construction Project 1911 Director Kloiber reported that Council action is not required for this item. Staff only recommends the motion below to improve transparency about the process by which the funding and construction of the new City Hall was authorized, especially for members of the public that are not familiar with the City’s financial processes and procedures. Kloiber said that the City Charter stipulates that all expenditures must have sufficient resources budgeted. This is accomplished by the Council adopting a resolution that appropriates the necessary resources to a fund used to track the use of the resources. Once a budget resolution is adopted, there are certain restrictions on increasing the fund or transferring the resources to other funds. Changes to the specifics of how the budgeted activity is carried out generally do not require additional Council action, however, provided the activity does not exceed the amount of the budget and the activity is consistent with the purpose of the fund. Kloiber stated that to apply these Charter requirements, the City has a policy of distinguishing between appropriations for annual operating budgets which expire at the end of the fiscal year, and appropriations for capital project budgets which remain in force until the project is completed or abandoned. He continued that by Resolution 2018-95, the Council appropriated both an annual operating budget for 2019 and a capital project budget of $10,000,000 for construction of a new city hall – numbered as project 1911 within the Governmental Buildings Fund 411. Between the adoption of that project budget using 2018 data and the project’s ultimate form as contracted for in 2022, several significant changes occurred from the initial vision City of Columbia Heights MINUTES October 10, 2022 City Council Meeting Page 5 of the project. These changes include among other things: being on a different site, no external borrowing, a condominium unit attached to an apartment complex, rather than a free-standing building, and no Murzyn Hall updates within this project. Kloiber said that despite these and other significant changes, for the Charter and policy reasons described, a new or additional budget resolution for project 1911 has not been required, as the project still nonetheless remains a city hall of the original planned square footage within the original dollar amount budgeted. Kloiber reminded that of course, as a practical matter, the Council and public were apprised of the various plan changes as they occurred from 2018 -2022, even though a new or additional budget resolution was not required during that time. In the fact, numerous contractual agreements and informational updates for this project were reviewed in detail and approved by the Council at its public meetings, including the final design for the project at 3989 Central Ave NE. He added that lastly, we refer those interested to the excerpt from the 2019 City Manager’s Budget Message, published August 2018 in support of Resolution 2018-95. This clarifies that the initial adoption of the $10,000,000 project budget was understood to only authorize the funding of the project and not to limit the project to the specific si te or building plan favored at the time the budget was adopted. It states those project specifics were to instead be set by subsequent Council actions. Ultimately, those subsequent actions were in the form contracts awarded for the project in 2020 -2022. Motion by Councilmember Buesgens, seconded by Councilmember Novitsky, to clarify for the record, that the budget appropriation originally established by City Council Resolution 2018-95 for the city hall construction project 1911 still applies to the project in its current form as a condominium located at 3989 Central Avenue NE. All Ayes, Motion Carried 5-0. Ordinances and Resolutions 12. Consideration of a Rental License Exemption for 4832 West Upland Crest. Coordinator Forney reported that on September 29, 2022, the owner of 4832 West Upland Crest, contacted Community Development requesting an exemption from the single-family rental moratorium and submitted a letter. The owner was in attendance via Zoom. Section 2 of Ordinance 1678, which established the single-family rental moratorium, states that “The City may make exception for any application in individual cases in the event that extreme financial hardship as determined by the City in its sole discretion.” As it is the homeowners right to appeal to the Council. Staff have brought forth the appeal along with supporting documents for discussion and review. Forney summarized the owner’s letter, stating that the owner is claiming financial hardship due to military service. The owner’s partner has been stationed in San Diego, California, with the Navy, forcing them to temporarily relocate for approximately four years. Staff is required to note that the property owner also owns a single-family home in Andover and a duplex in Fridley. The owner has given Staff the explanation that the house in Andover is City of Columbia Heights MINUTES October 10, 2022 City Council Meeting Page 6 their “cabin”, while the duplex is an investment property. If the Council approves a rental density cap like the one presented earlier this year, the home in question will be able to receive a rental license at the end of the moratorium. The block that the residence is located on, and the residential blocks around this area have very few single -family rental properties. Forney said that if approved, Resolution 2022-95 would grant a temporary rental license exemption to the homeowner with a few additional requirements. The homeowner is required to complete the license application process within three months from the passage of the resolution. This puts a limit on how long they can take to bring the house into rental compliance if needed. The temporary rental license will be valid for one year from the date that the license is approved. This provides the homeowner and tenant the ability to rent the home for a full one-year lease. After the term of the temporary license the license will be revoked without the ability to renew. The homeowner will then have to apply for a traditional rental license. At this time the moratorium and all of its changes shall be in effect and the traditional license application will be subject to any limitations and requirements adopted to the code. The resolution clearly states that by giving the homeowner a temporary license, in no way is the City ensuring that a traditional license shall be given or available after the revocation of the temporary license. Councilmember Jacobs asked how the property would be managed in the owner’s absence. Kevin Bumgardner, City resident and owner, stated that he has other real estate agents that are willing to help with his properties in his absence. Bumgardner clarified that Joel Bartlett is not his business partner, they own the house together; it is a family relationship. He further stated that when Joel joined the Navy they were counting on the ability to rent out the home as the cost of living in San Diego, California, is costly. He said that they would have applied sooner if they knew the moratorium was coming, but they took some time to get the property ready for renting. Motion by Councilmember Jacobs, seconded by Councilmember Murzyn Jr., to waive the reading of Resolution No. 2022-95, there being ample copies available to the public. All Ayes, Motion Carried 5-0. Motion by Councilmember Jacobs, seconded by Councilmember Novitsky, to approve Resolution No. 2022-95, a resolution approving the single-family rental exemption request for the rental application at 4832 West Upland Crest, Columbia Heights, MN 55421. All Ayes, Motion Carried 5-0. CITY COUNCIL AND ADMINISTRATIVE REPORTS Report of the City Council Councilmember Buesgens stated she attended a Mississippi Watershed Management Organization luncheon for the board and staff to connect; she continues to volunteer at the Blooming Sunshine Gardens, where last Sunday, the Daughters of the American Revolution came out and helped plant City of Columbia Heights MINUTES October 10, 2022 City Council Meeting Page 7 several vegetables; she attended the Park and Recreation meeting where a skateboard park was considered, directed by petitioners; attended the Ice Cream Social for commissioners and board members; attended the Movie in the Park, “Encanto”; attended the assessment hearings with the Council; and volunteered at the Pride Festival. She mentioned that Westgate Senior Living is going to hold an open house on October 21, 2022, from 1:00 -3:30 pm. Councilmember Novitsky said he was able to check out the new gym floor at the high school and the official grand opening will be that Friday at the high school’s homecoming at 5:30 pm; it was donated by the boosters. He reminded residents that there will be fireworks after the football game. Novitsky stated that on Saturday, from 9:00 am -12:00 pm the Lions will be doing the fall “Adopt-a-Highway” on University Avenue with the free community shredding truck and community dumpster. He said they also will be collecting donations of classroom snacks and hygiene products which will benefit the high school. Councilmember Murzyn Jr. said he attended the Ice Cream Social; and it was a good turnout and a lot of fun. Councilmember Jacobs stated that she continues to serve on the Salvation Army Advisory Board; attended the Ice Cream Social; and facilitated four resident reach outs. Mayor Márquez Simula said she attended the Movie in the Park, where they had Spanish subtitles; attended the Ice Cream Social; attended the League Carlson Center’s Fundraiser Gala, where Maria Davis, City resident, was presenting and honored at the event. She stated the Pride Festival was a good event, with approximately 450 people attending, 65 vendors, and two food trucks. She attended the Park Board meeting, where youth discussed how much they wanted soccer fields and skateboard parks; she joined the project of MWMO’s “Art to Change the World”, where trash is pulled out of the Mississippi River and artists use it to make an art piece. She also went to the Heights Theater to s ee “See How They Run”. Report of the Public Works Director / Acting City Manager Director Hansen reported that beginning October 17, 2022, College Hunks out of Shoreview will be in the City to provide residents with bulky pick up, which was previously provided by Waste Management. Items that are accepted at listed on the City website at www.columbiaheights.gov/refusesupport. He stated that the Police Department is holding a Citizen’s Justice Academy in partnership with the County; interested parties can contact Bill Monberg at 763- 706-8142 or by calling the Police Department. He added that it will be held on Thursdays for fi ve consecutive evenings, starting on November 3, 2022, and ending on December 8, 2022, excluding Thanksgiving week. Director Hansen provided an update on the approval of the purchase and acquisition of two fire trucks, and stated that this was approved out side of the capital equipment because prices were anticipated in November; the next action will be on the agenda on October 24, 2022. He said that Staff may suggest acquiring the two trucks in separate years in order to lock in the prices now but lessen the impact on the capital equipment fund. Director Chirpich stated that the Fire Department wanted to announce that their open house on October 15, 2022, from 11:00 am -2:00 pm. City of Columbia Heights MINUTES October 10, 2022 City Council Meeting Page 8 Mayor Márquez Simula asked when the “Trunk or Treat” event will be held. Cou ncilmember Novitsky stated it will be held on October 29, 2022, from 1:00 pm- 4:00 pm. COMMUNITY FORUM Mayor Márquez Simula opened the community forum. Nelle Bing, City resident, stated that after following the information regarding the investigation into Councilmember Jacobs, her and other residents are baffled, disgusted, and appalled by the actions of Councilmember Jacobs and her unwillingness to resign despite being asked unanimously by the Council and many citizens. She spoke about the duties of an elected official and the desires of the community, as she has run previously. Bing said that this behavior is not going unnoticed, and it cannot be “swept under the rug”; residents will petition and advocate to remove Councilmember Jacobs from office. Frost Simula, City resident, thanked the Council for the investigation that was completed and the action that was taken that evening. He stated that Councilmember Jacobs choosing not to resign is baffling and that it is now the citizens’ duty to find a way to recall her and take action to remove her from office. Simula said that “she has disgraced this community, disgraced this Council; she’s lied”. Theresa Strike, City resident, thanked the Mayor and Council for making the findings of the investigation public. She stated that if she lied about her identity, then she needs to resign; if the investigator is incorrect and her explanation is true, Strike still believes she needs to resign. She spoke in regard to the expectations of Councilmembers confidentiality and that Councilmember Jacobs explained that someone else had access to her notes and City business phone. She further stated that this means she leaves City business out and her phone is not secure, even with a pass lock, which she sees as negligent. She asked that since Councilmember Jacobs will not resign, that the City revoke her access to private information so that residents can know their information is secure. Kiki Latham, City resident, serves on the Heights Pride Board and HeighsNext Board as a volunteer. Latham stated she felt silenced for many years and now feels like she has a voice serving on these boards. Latham stated she is proud to serve, serve with integrity and honesty and proud to be black. She said that Councilmember Jacobs called a “bi-racial citizen and made them feel the lowest of the low” and demeaned his character. She further stated that “if you mess up, you may need to remove yourself”; she said that Justice Spriggs is probably going to be elected and that Councilmember Jacobs has issue with people of color, so why would she be comfortable staying on Council and residents may not be comfortable. Degha Shabbeleh, City resident, stated that one thing she loves about the City is the diversity and when she moved there she felt so loved and welcome, but that trust has been broken. She said last time when she spoke about that the investigation needs to be completed and not to ask for the resignation of Councilmember Jacobs at the time, but then began to ask question the notes that were used and what Councilmember Jacobs had written down. Shabbeleh stated that Councilmember Jacobs doesn’t represent her, her children, or her community an d the majority of residents don’t believe she rightfully owns her seat. She further stated that she did not vote for Councilmember Jacobs City of Columbia Heights MINUTES October 10, 2022 City Council Meeting Page 9 but she congratulated and supported her but now she sees her as a liar, that has brought shame to the community. She asked from her community for her to resign. Destiny Sparks, City resident, said that the original phone call Councilmember Jacobs made was terrible, but she lied again and again, which does not inspire trust in an elected official. She said that as a public educator she is “anti-racist”, and Councilmember Jacobs is unapologetic and a proven liar; she does not represent her values, the values of her students, or those of her family. Jennifer Pyper Muno, City resident, said she attended the special work session and was proud of the Council for “speaking their truth”. She stated that as adults, we have accountability, when we mess up, we own it. Pyper Muno said that when this information came out, she asked the Council to conduct an investigation and asked if the Council had taken any diversity training. She spoke regarding the cost of the investigation and that Councilmember Jacobs knew the City did not need to spend the money on the investigation, but she is still sticking to the same story. She said due to the findings of the investigation, one now wonders what Councilmember Jacobs stands for and what this means for them. She added that the City will need to hold a special election which costs the City money and why she wants to stay on the Council. She stated that she has lost the trust of many citizens and that she step down to work on herself. Aza Donnelly, City resident, thanked the Council for the quick investigation into this matter. She said that Councilmember Jacobs has lost the trust of the City and Council; she’s shown to be racist and not having the best interest of the majority of the community. Donnelly said that if it’s true that the family member made the call and has a mental health disability, that Councilmember Jacobs is wil ling to throw a vulnerable person “under the bus” that she did not want to take the blame for. She said that Councilmember Jacobs has worked with people with mental health issues as an addiction counselor. She stated that she needs to resign. Joanna Stark, City resident, asked about addressing individual members of the Council per the Community Forum guidelines. She said that many residents were addressing comments directly to one Councilmember that evening. Rachel James, City resident, said that it is a mixed emotions night, and she is sad for the community. She is thankful for those that have spoken that night. James said Councilmember put in a lot of time and they don’t get paid a lot; but this isn’t about an individual, it’s about a s eat on the Council. She said that many residents have stated they are embarrassed that they voted for Councilmember Jacobs, and James asked for her to resign. Motion by Buesgens, seconded by Councilmember Novitsky, to close the community forum. All Ayes, Motion Carried 5-0. ADJOURNMENT Motion by Murzyn Jr., seconded by Councilmember Novitsky, to adjourn. All Ayes, Motion Carried 5-0. Meeting adjourned at 7:12 pm. City of Columbia Heights MINUTES October 10, 2022 City Council Meeting Page 10 Respectfully Submitted, ______________________________________ Sara Ion, City Clerk/Council Secretary