HomeMy WebLinkAbout11-28-2022 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, November 28, 2022
6:00 PM
MINUTES
The following are the minutes for the Meeting of the City Council held at 6:00 pm on Monday,
November 28, 2022, in the City Council Chambers, City Hall, 590 40th Avenue NE, Columbia Heights,
Minnesota.
WELCOME/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: Lenny Austin, Police Chief; Kelli Bourgeois, City Manager; Aaron Chirpich, Community
Development Director; Jim Hoeft, City Attorney; Sara Ion, City Clerk; Charlie Thompson, Fire Chief;
Scott Fizek, Property Manager; Steve Forseth, City Resident; Rex Meier, 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 Jacobs, seconded by Councilmember Buesgens, to approve the Agenda as
presented. All Ayes, Motion Carried 5-0.
CONSENT AGENDA
Mayor Márquez Simula requested that Item 4 of the Consent Agenda, “Resolution 2022-113, being a
Resolution in Support of Anoka County Joint Law Enforcement Council’s Renewal of Legislation for
Future Public Safety Projects”, be pulled for further discussion.
Motion by Councilmember Novitsky, seconded by Councilmember Murzyn Jr., to approve the Consent
Agenda as presented, with Item 4 removed for further discussion. All Ayes, Motion Carried 5-0.
1. Approve November 14, 2022 City Council Meeting Minutes
MOTION: Move to approve the November 14, 2022 City Council meeting minutes.
2. Approve November 16, 2022 Special City Council Meeting Minutes
MOTION: Move to approve the November 16, 2022 Special City Council meeting minutes.
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3. Resolution 2022-109, Approving Classification of Tax Forfeit Property
MOTION: Move to waive the reading of Resolution No. 2022 -109, there being ample copies
available to the public.
MOTION: Move to adopt resolution No. 2022-109, approving the classification and sale of
tax forfeit property in the City of Columbia Heights, MN.
4. Pulled from the Consent Agenda for further discussion “Resolution 2022-113, being a
Resolution in Support of Anoka County Joint Law Enforcement Council’s Renewal of
Legislation for Future Public Safety Projects”.
5. Final Compensating Change Order and Payment for 37th Avenue Water Main
Rehabilitation, City Project 2203
MOTION: Move to approve the final compensating change order and accept the work for
37th Avenue Water Main Rehabilitation, City Project 2203, and authorize final payment of
$146,227.94 to Fer-Pal Construction USA LLC.
6. Refuse Cart Purchase
MOTION: Move to approve the purchase of 3,000 carts through the Sourcewell
Cooperative Purchasing Contract at a price of $200,000 with funding from the Refuse Fund
603, and amending the 2023 Refuse Budget in the amount of $200,000 and, furthermore,
to authorize the Mayor and City Manager to enter into a contract for the same.
7. Renew Annual Audit Contract with Redpath and Company for 2022 at $52,500 and for
2023 at $56,000
MOTION: Move to renew the annual audit contract with Redpath and Company for 2022 a t
$52,500 and for 2023 at $56,000.
8. Rental Occupancy Licenses for Approval
MOTION: Move to approve the items listed for rental housing license applications for
November 28, 2022, in that they have met the requirements of the Property Maintenance
Code.
9. License Agenda
MOTION: Move to approve the items as listed on the business license agenda for
November 28, 2022 as presented.
10. 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 $1,153,243.25.
ITEM PULLED FROM THE CONSENT AGENDA
4. Resolution 2022-113, being a Resolution in Support of Anoka County Joint Law
Enforcement Council’s Renewal of Legislation for Future Public Safety Projects
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Police Chief Austin stated that the Anoka County Joint Law Enforcement Council (JLEC) is a
group comprised of 26 members of Elected Officials and Chief Law Enforcement Officers
from across Anoka County. Mayor Márquez Simula and Chief Austin represent Columbia
Heights in this group.
Chief Austin said that this group was formed in 1970 in order to help municipalities within
Anoka County. The JLEC works on countywide projects that impact public safety and does
so in the spirit of cooperation in an effort to provide cohesion in a cost -effective manner
that benefits all municipalities with economy of scale. One important piece of the Anoka
County JLEC that was passed years ago was a state statute that authorizes a Pu blic Safety
Levy that can be used by the Anoka County Board for public safety projects that the JLEC
first approves; this amount cannot exceed eight million dollars. That Public Safety Levy is
drawn out separately on tax statements but is part of the County’s overall Certified Levy.
When that statute was passed by the State of Minnesota (with some discussion), it was set
to expire at the end of 2023. At the time of the creation of the statute, all of the Cities and
Townships in Anoka County passed resolutions of support for the statute to the State of
Minnesota.
Chief Austin explained as that statute is set to expire at the end of 2023, JLEC and at the
Anoka County Chiefs Association, they have discussed keeping that statute in place. The
statute doesn’t dictate how much we levy, rather just authorizes the levy to occur for
approved projects. The Public Safety Levy has been used for various large projects in the
past with Countywide implications, including 800 -megahertz two-way radio
implementation and the Anoka County Public Safety Data System (which is our CAD
dispatch system, records system, etc.). He added that the Public Safety Data System
project started about nine years ago as it was over 15 years since it had been updated and
the project came in under budget. He also said that the radio implementation made a huge
impact on the department.
Chief Austin stated approval of the item would be in support of the two proposed changes:
1) the amount for the Public Safety Levy would not be included with the lev y from the
County in the future and 2) the statute would continue to be in place until 2033.
Motion by Councilmember Novitsky, and seconded by Councilmember Murzyn Jr., to waive
the reading of Resolution 2022-113, there being ample copies available to the public. All
Ayes, Motion Carried 5-0.
Motion by Councilmember Novitsky, and seconded by Councilmember Murzyn Jr., to adopt
Resolution 2022-113, being a Resolution in Support of Anoka County Joint Law Enforcement
Council’s Renewal of Legislation for Future Public Safety Projects. All Ayes, Motion Carried
5-0.
PUBLIC HEARINGS
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11. Consideration of Resolution 2022-111, Revocation of the License to Operate Rental Units
Within the city of Columbia Heights against the rental property at 1204/1206 Cheery
Lane NE for failure to meet the requirements of the Residential Maintenance Codes
Fire Chief Thompson reported that this item is for revocation of the license to operate
rental units within the city of Columbia Heights against the rental property at 1204/1206
Cheery Lane NE.
He stated that on July 8, 2022, inspectors for the City, inspected the property described
and noted violations. A compliance letter listing the violations was mailed by regular mail
to the owner at the address listed on the rental housing license application. On August 15,
2022, September 12, 2022, October 11, 2022, and October 24, 2022, inspectors for the City
performed re-inspections and noted that violations remained uncorrected. A Statement of
Cause was mailed via regular mail to the owner at the address listed on the rental housing
license application. On November 16, 2022, inspectors for the City checked records for this
property and noted that the violations remained uncorrected.
Based upon said records of the enforcement office, the following conditions and violations
of the City’s Property Maintenance Code were found to exist, to-wit:
a. Shall repair/replace displaced storm windows next to 1204 entry door and southwest
window. Repairs shall be performed in a workmanlike manner and conform to surrounding
areas. b. Shall repair/replace rotted deck boards. c. Shall repair/replace deteriorated
(rotted) windowsill in 1204 lower-level southwest corner. d. Shall supply for every
openable window and other outside openings required for venti lation, approved tightly
fitting screens.
Mayor Márquez Simula opened the public hearing.
No one wished to speak.
Motion by Councilmember Jacobs, seconded by Councilmember Buesgens, to close the
public hearing and waive the reading of Resolution 2022-111, there being ample copies
available to the public. All Ayes, Motion Carried 5-0.
Motion by Councilmember Jacobs, seconded by Councilmember Novitsky, to adopt
Resolution 2022-111, being a Resolution of the City Council of the city of Columbia Heights
approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(A) of the
rental license listed. All Ayes, Motion Carried 5-0.
12. Consideration of Resolution 2022-112, Revocation of the License to Operate Rental Units
Within the city of Columbia Heights against the rental property at 4636/4638 Washington
Street NE for failure to meet the requirements of the Residential Maintenance Cod es
Fire Chief Thompson reported that this item is for the revocation of the license to operate
rental units within the city of Columbia Heights against the rental property at 4636/4638
Washington Street NE.
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He stated that on July 14, 2020, inspectors for the City, inspected the property described
and noted violations. A compliance letter listing the violations was mailed by regular mail
to the owner at the address listed on the Rental Housing License Application. On August 22,
2022, September 9, 2022, and October 17, 2022, inspectors for the City performed re-
inspections and noted that violations remained uncorrected. He stated that there was a
delay in the inspections because the property owner was working with the Assistant Fire
Chief on a repair plan. Since it was not repaired, a Statement of Cause was mailed via
regular mail to the owner at the address listed on the rental housing license application. On
November 14, 2022, inspectors for the City checked records for this property and noted
that the violations remained uncorrected.
Based upon said records of the Enforcement Office, the following conditions and violations
of the city’s Property Maintenance Code were found to exist, to -wit:
a. Shall repair/replace deteriorated rear driveway concrete
Councilmember Jacobs asked about if the property owner had two years to make repairs.
Chief Thompson stated that is correct and due to the coming cold weather, the property
owner would typically enter into some sort of agreement with the City about the repair,
but that has not taken place.
Councilmember Jacobs asked if the tenants were informed about the public hearing. Chief
Thompson stated that is correct.
Mayor Márquez Simula opened the public hearing.
Property Manager Fizek stated that he has managed the property for the last year or two.
He stated that on September 9, 2022, the property was inspected and there were several
items that were repaired by that inspection. Fizek said that the owner had previously made
repairs to the driveway in 2020, and then asked for an extension in 2022 which was not
granted, so he then had repairs made in October 2022 . However, the workmanship was not
done to the City’s standard because when the product was put down when it was too cold.
He said that it would be a shame to put two tenants out due an issue with the concrete
driveway when all the interior repairs were made.
Councilmember Buesgens asked who did the work for the concrete pad for the parking in
the back. Fizek said that it was owner’s team, not a professional contractor.
Councilmember Buesgens further stated that they have had two years to make the repairs
and if they don’t have the funds to take care of the property that they should get out of the
business.
Fizek stated again that it is a shame to put tenants out due to an exterior issue.
Councilmember Novitsky stated that the City gave plenty of time for the repairs to be
made.
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Motion by Councilmember Buesgens, seconded by Councilmember Murzyn Jr., to close the
public hearing and waive the reading of Resolution 2022-112, there being ample copies
available to the public. All Ayes, Motion Carried 5-0.
Motion by Councilmember Buesgens, seconded by Councilmember Jacobs, to adopt
Resolution 2022-112, being a Resolution of the City Council of the city of Columbia Heights
approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(A) of the
rental license listed. All Ayes, Motion Carried 5-0.
ITEMS FOR CONSIDERATION
13. Approval Consideration for the Issuance of Series B Multifamily Housing Revenue Bonds
(Reuter Walton Project)
Director Chirpich reported that the City has received a request from Reuter Walton
Development to issue additional tax-exempt bonds on their behalf to support the
construction of their 62-unit affordable housing development that is currently under
construction on the vacant City owned development site just north of the Public Safety
building.
Chirpich stated that on June 22, 2021, the City Council approved Resolution 2021 -53, a
resolution which authorized the preparation and submission of a Housing Program to the
Metropolitan Council and granted the preliminary issuance of multi-family housing revenue
bonds (tax-exempt bonds) to finance the Reuter Walton affordable housing project in an
amount not to exceed $11,000,000. Thus, the City submitted the Housing Program to the
Metropolitan Council and submitted an allocation application to the Minnesota
Department of Management and Budget (MMB) requesting the tax-exempt bonds.
Chirpich further stated that on January 11, 2022, the MMB notified the City that the Reuter
Walton project was allocated tax-exempt bonds in the amount of $9,886,000, and the City
closed on the sale and completed the issuance of the initial series 2022A bonds on June 28,
2022. Subsequent to this allocation, Rueter Walton requested that the City submit a
second application for an additional allocation to MMB in the amount of $560,000. The
second allocation request was approved by MMB on July 5, 2022, bringing the total
allocation for the project to $10,426,000. Because the original authorizing resolution, and
Housing Program approved by the City in 2021 had a limit of $11,000,000, the second bond
allocation can be authorized under the authority of the initial approval. This means that
rather than repeat the entire bond authorization process, the City can amend the original
bond closing and sales agreements to include the second allocation. To this end, t he City’s
public finance counsel at Kennedy and Graven have prepared the amended and restated
loan agreement, indenture, regulatory agreement, and purchase agreement to reflect the
proposed second allocation.
Chirpich noted that bonds of this type are not an obligation of the City or its taxpayers,
rather an obligation of the developer. Only project revenues of the developer, in this case,
rent collected after completion of the project would be pledged for repayment of the
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bonds. While the City must approve issuance of the bonds and all bond documents, the
transaction is largely handled by the private borrower and the underwriter that serves as
the initial purchaser of the bonds.
Chirpich said that City has previously issued tax-exempt bonds for other various
developments, such as the Sullivan Shores townhomes, Crestview senior care facilities, the
Legends of Columbia Heights, and Grand Central Flats. With the issuance of tax -exempt
bonds, the City has required that the developer reimburse the City for all costs associated
with the issuance of the bonds, as well as pay an issuance fee in the amount of 1% of the
principal amount issued for the tax-exempt bonds. In the case of the second request by
Reuter Walton, the City would realize an issuance fee in the amount of $5,600.
Staff recommended approval of Resolution 2022-110, a resolution which formally approves
the issuance and delivery of the series 2022B housing revenue bonds.
Motion by Councilmember Buesgens, seconded by Councilmember Novitsky, to waive the
reading of Resolution 2022-110, 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 2022-110, a resolution authorizing the issuance, sale, and delivery of multifamily
housing revenue bonds (42nd and Central Apartments Project), series 2022B to provide
additional financing for the costs of a multifamily housing development; approving the
forms of and authorizing the execution and delivery of the series 2022B bonds and related
documents; providing for the security, rights, and remedies with respect to the series 2022B
bonds; and taking certain other actions. All Ayes, Motion Carried 5-0.
CITY COUNCIL AND ADMINISTRATIVE REPORTS
Report of the City Council
Councilmember Jacobs stated that she continues to attend the Citizen Justice Academy; attended the
special session for the canvassing of the 2022 election; attended the last Council meeting virtually ; and
previously attended the “Trunk-or-Treat” event, and the appreciation lunch at the Public Safety
Building. She thanked Director Hansen and Staff for the additional “wrong way” signs on Monroe and
said she hoped that the neighborhood and drivers are safer. Jacobs congratulated the Mayor and the
newly elected Councilmembers and stated she looks forward to 2023 with the new Council; she had
nine residents reach outs.
Councilmember Buesgens said that she attended the Ratio open house; attended the Metro F Line
Draft Corridor Plan Virtual Open House, where they are looking for input for bus stop locations; she
added that the Bus Rapid Transit Route (BRT) for Central Avenue will start in 2025 and finish in 2026.
She attended the Metro Council annual meeting and attended the Citizen Justice Academy.
Mayor Márquez Simula stated she had a nice holiday break; attended the Ratio open house and made
a TikTok video which has had hundreds of views; met the new restaurant owner for the café going in
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next to City Hall; attended the Citizen Justice Academy; attended the Youth Commission meeting; and
she spoke at a LatinX event at the University of Minnesota with CLUES.
Report of the City Manager
Manager Bourgeois said that at the last community forum, there was a gentleman that mentioned the
sidewalk at the Ratio Apartments. She followed up on the item and noted that sidewalk is on private
property, it is a code compliant sidewalk, and there is no enforcement action for the City to take. She
stated that the Holiday Train is back, scheduled for December 13, 2022, at 8:00 pm at Lions Park. She
said that the 2023 City calendars will be finished soon; they can be preordered at
www.columbiaheightsmn.gov/photos and are ten dollars.
COMMUNITY FORUM
Mayor Márquez Simula opened the community forum.
Steve Forseth, City resident, thanked the Council for their reports and stated that their attendance at
events is an honor as a Councilmember and that they are representing the City at these events. He
made comments in regard to Councilmember Jacobs still representing the City at events when the
results of the investigation indicated that she did not act ethically. He commented further on how she
has not resigned and asked what actions she is taking to show she is not racist. Forseth asked for
Councilmember Jacobs’ resignation.
Rex Meier, City resident, spoke regarding Forseth’s comments and stated that if people took the time
to analyze the facts of what took place, that no one really knows the details, and the comments that
were made tonight were borderline McCarthyism. He said that he doesn’t think that racism doesn’t
exist but using racial injustice for personal gain is just as wrong as the injustice itself; everyone
deserves the benefit of a doubt.
ADJOURNMENT
Motion by Murzyn Jr., seconded by Councilmember Jacobs, to adjourn. All Ayes, Motion Carried 5-0.
Meeting adjourned at 6:45 pm.
Respectfully Submitted,
______________________________________
Sara Ion, City Clerk/Council Secretary