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HomeMy WebLinkAbout07.06.26 CITY OF ST. JOSEPH www.stjosephmn.gov 75 Callaway Street East | Saint Joseph, Minnesota 56374 Email: cityoffices@stjosephmn.gov | Phone: 320.363.7201 | Fax 320.363.0342 St. Joseph City Council July 6, 2026 AMENDED 6:00 PM Join Zoom Meeting https://us06web.zoom.us/j/83245260280?pwd=VoADHkZdzLS3Xc8Dxe44YpIoaYgvMH.1 Meeting ID: 862 2322 7259 Passcode: 069680 1. Call to order - Pledge of Allegiance 2. Public Comments Up to 3 speakers will be allowed for up to 3 minutes each to address the council with questions/concerns/comments (regarding an item NOT on the agenda). No Council response or action will be given/taken other than possible referral to Administration. 3. Approve Agenda 4. Consent Agenda a. Minutes – Requested Action: Approve the minutes of June 15, 2026 b. Bills Payable – Requested Action: Approve Check Numbers 63662-63690, Payroll & Account Payable EFT #4101-4123; ACH Accounts Payable #2401220-2401255; Regular Pay Period 13. c. Millstream Arts Festival Street Closure – Requested Action: Approve the closure of Minnesota St from College Ave to 2nd Ave NW on August 30, 2026, from 7AM to 7PM for the Millstream Arts Festival. d. Temporary On-Sale Liquor License, Bad Habit Brewing – Requested Action: Issue the temporary on-sale liquor license to Bad Habit Brewing for an event on July 23, 2026. e. Temporary On-Sale Liquor License, Iron Street Distillery – Requested Action: Issue the temporary on-sale liquor license to Iron Street Distillery for an event on July 23, 2026. f. Appointment of Election Judges for State Primary – Requested Action: Approve the list of election judges for the State Primary on August 11, 2026. g. Call for Public Hearing - Delinquent Accounts to be Assessed – Requested Action: Call for a public hearing on July 20, 2026, shortly after 6PM to consider certification of delinquent account balance. 5. Joe Boys Poker Run – Street Closure 6. Extension of Refuse Contract with Republic Services 7. Discussion on Community Center Funds 8. 2026 Street & Utility Improvement Project a. Resolution 2026-038 Declaring Costs to Be Assessed b. Resolution 2026-039 Setting Hearing on Proposed Assessments 9. Department Reports 10. Mayor and Council Reports/Updates 11. Adjourn June 15, 2026 Page 1 of 1 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in a work session on Monday, June 16th, 2026, at 5:00PM in the St. Joseph Government Center. Members Present: Mayor Adam Scepaniak, Councilmembers Adam Schnettler, Andrew Mooney, Kelly Beniek City Representatives Present: City Administrator David Murphy, Finance Director Lori Bartlett, Public Works Director Ryan Wensmann, Police Chief Dwight Pfannenstein, Community Development Director Nate Keller, City Clerk Kayla Klein Rural Residential Zoning Ordinance: Keller provided an overview of where staff is at with the Rural Residential Zoning Ordinance. After six months of discussion and review, the Planning Commission held a public hearing on June 8th and unanimously recommended approval of the draft ordinance. The ordinance would make six properties eligible for rezoning to the new district should the property owner initiate a rezone request. Rezoning would require extension of municipal water service but not sanitary sewer. Scepaniak asked why connection to water is required but not sewer. Further discussion noted that water is nearby and there are a few options for possible extensions. The item will be brough back in July for approval. Draft 2027 Budget – Memberships, Staffing, Council Initiatives: Bartlett presented the dues and membership for the council to review. Council consensus was to continue the Initiative Foundation membership and to increase the number of membership subsidies to the Whitney Senior Center to 50 memberships ($2,000/year). Council would not contribute to RSVP membership in 2027. Bartlett also provided a staff over and noted that no new staff are proposed for hire in 2027. Further discussion had on succession planning as a number of department heads are set to retire in the next 3-5 years. Additionally, filling the Lead Records Technician position was discussed and staff is still analyzing the needs of the department. Adjourn: The work session meeting was adjourned at 5:52 PM. Kayla Klein City Clerk June 15, 2026 Page 1 of 2 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Monday, June 15, 2026, at 6:00PM in the St. Joseph Government Center. Members Present: Mayor Adam Scepaniak, Councilmembers Andrew Mooney, Kelly Beniek, Adam Schnettler City Representatives Present: City Administrator David Murphy, Finance Director Lori Bartlett, Police Chief Dwight Pfannenstein, City Engineer Randy Sabart, Community Development Director Nate Keller, City Clerk Kayla Klein, Public Works Director Ryan Wensmann Public Comments: Janice Mensinger, 1307 MN St: Mensinger approached the council regarding the dog park which she believes needs to be maintained more. She added that a shelter is needed there and that a shelter has been talked about for quite some time, but no action has been taken. Corey Ehlert: Ehlert urged the city to ask Xcel Energy to have more common sense when shutting down intersections, especially with Joetown Rocks happening in just a few weeks. Approve Agenda: Beniek moved to approve the agenda; seconded by Schnettler and passed unanimously. Consent Agenda: Mooney moved to approve the consent agenda; seconded by Schnettler and passed unanimously. a. Minutes – Requested Action: Approve the minutes of May 4, 2026. b. Bills Payable – Requested Action: Approve Check Numbers 63649-63661, Payroll & Account Payable EFT #4088-4100; ACH Accounts Payable #2401182 - #2401219; Regular Pay Period 12. c. Donations – Requested Action: Approve Resolution 2026-033 accepting donations. d. Financial Reports – Requested Action: Approve the May 2026 Financial Reports as presented. e. Cherrico Pottery Home Occupation License Amendment – Requested action: Approve Resolution 2026-034 Adopting Findings of Fact and Approving an Amendment to a Special Home Occupation License for an Art Studio. f. Bayou Alley Flats CIC Plat, and Declaration – Requested Action: Approve Resolution 2026-032 Approving a Common Interest Community Plat for Bayou Alley Flats and Declaration. g. Bayou Alley Flats TIF Amendment – Requested Action: Approve the First Amendment to Amended and Restated Development Agreement for Bayou Alley Flats, LLC. h. Revolving Loan Fund – The Good Food Good People Group – Requested Action: Approve the Agreement for Loan of the St. Joseph Revolving Loan Fund with The Good Food Good People Group. i. Appointment of Joint Planning Board Member – Requested Action: Approve the appointment of Craig Hern to the Joint Planning Board. j. Joint Powers Agreement for Legal Services – Requested Action: Approve the Joint Powers Agreement for Legal Services with the City of St. Cloud, effective January 1, 2027. k. 2025 TIF Reports – Requested Action: Approve the 2025 TIF Reports as presented. l. 1st Quarter 2026 Gambling Reports – Requested Action: Accept the 1st quarter 2026 gambling reports. m. Permit Appeal and Parking Waiver, La Playette – Requested Action: Approve the permit appeal and parking waiver as presented. PUD Amendment and Variance Request – Country Manor: Keller presented the request from Country Manor for their phase of their development. The PUD Amendment would decrease the number of units that were approved with the original PUD by 44 units going from 168 to 124 (100 independent units and 24-memory care). The second part of the request is a variance to the street side yard setback. A portion of the proposed building encroaches into the setback. The proposed setback is 20’7”, ordinance requires a minimum of a 30’ setback. Anthony Fenstad, Country Manor CEO: Fenstad explained why they are moving into the next phase of expansion stating that the area is popular for many seniors in the area especially those where one may require more care than the other. St. Joseph is an area many people are attracted to for its sense of community. Scepaniak moved to approve Resolution 2026-036 Adopting Findings of Fact and Approving Amendment to the Country Manor Living Campus Development Agreement and Variance to Street Yard Setback; seconded by Beniek and passed unanimously. June 15, 2026 Page 2 of 2 Public Hearing – Data Center Moratorium: Keller presented a data center moratorium as requested by the council at their last work session meeting. Adopting a moratorium on data center development would temporarily pause all data center land use applications for up to one year, through June 17, 2027. During this time, staff, the Planning Commission, and the City Council would have the opportunity to study data center development and develop an appropriate regulatory framework, including zoning district eligibility and development standards. Mayor Scepaniak opened the public hearing. Joe Walz, 33003 County Road 3: Walz asked what a data center is and how the council will define it. Walz added that a data center would generate a large tax revenue for the city. Scepaniak moved to adopt Ordinance 2026-004 An Interim Ordinance Authorizing a Study and Declaring a Moratorium on Data Center Development within the City of St. Joseph, Minnesota; seconded by Mooney and passed unanimously. Scepaniak moved to approve Resolution 2026-035 Authorizing Summary Publication of Ordinance 2026-004; seconded by Mooney and passed unanimously. Public Hearing – Multi-Family Moratorium: Keller presented two possible moratorium ordinances for the council to consider because of discussion at the May 18th work session. The first option applies to properties currently zoned R-3 and to properties seeking a rezone to R-3. Keller noted that any rezoning request, regardless of a moratorium, would require Planning Commission review, public hearings, and City Council approval. This option exempts senior living facilities. Option 2 would apply to any multi-family project in the city regardless of zoning designation. This includes mixed use apartments in the downtown district. Both options 1 and 2 would be in place for up to 12 months or whenever council would choose to repeal the moratorium. Beniek moved to adopt Ordinance 2025-005A An Interim Ordinance Authorizing a Study and Declaring a Moratorium on Apartment Development within Certain Zoning Districts in the City of St. Joseph, Minnesota; seconded by Schnettler. Ayes: Beniek, Schnettler, Scepaniak Motion Carried: 3-1 Nays: Mooney Scepaniak moved to approve Resolution 2026-037A Authorizing Summary Publication of Ordinance 2026-005A; seconded by Beniek. Ayes: Beniek, Schnettler, Scepaniak, Mooney Motion Carried: 4-0 Nays: None Department Reports: None. Mayor and Council Reports/Updates: Beniek thanked staff for their work. Adjourn: Mooney made a motion to adjourn the meeting at 6:35 PM; seconded by Beniek and passed unanimously. Kayla Klein City Clerk STAFF MEMO Prepared by: Debbie Kulzer, Finance Tech Meeting Date: 7/6/26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4b Reviewed by: Item: Bills Payable Council Priority: ☐ Community Center Funds ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility ☐ Boutique Hotel ☒ N/A ACTION REQUESTED Approve the bills payable as presented. BOARD/COMMISSION/COMMITTEE RECOMMENDATION None PREVIOUS COUNCIL ACTION See below REFERENCE AND BACKGROUND The council approved staff to make the following payments through the payroll contracts, regular monthly invoices with due dates prior to the next scheduled council meeting, or actions taken at previous council meetings. The information here is to provide you with all checks and electronic payments made for verification of the disbursement completeness. BUDGET IMPACT Bills Payable – Checks Mailed Prior to Council Approval Regular Payroll 13 $79,802.53 Payroll & Accounts Payable EFT #4101 - #4123 $175,839.93 ACH Accounts Payable #2401220 - #2401255 $124,388.60 Check Numbers #63662 - #63690 $213,118.71 Total $593,149.77 Bills Payable – Checks Awaiting Council Approval Check Numbers - #63689 -# 63690 $11,197.06 Total $11,197.06 Total Budget/Fiscal Impact: $604,346.83 Various Funds STAFF RECOMMENDED ACTION Approve the bills payable as presented. SUPPORTING DATA/ATTACHMENTS Bill listing by EFT, ACH and checks paid prior to council approval and awaiting to be paid upon council approval. STAFF MEMO Prepared by: City Clerk Meeting Date: 7/6/26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4c Reviewed by: Item: Millstream Arts Festival Street Closure Council Priority: ☐ Community Center Funds ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility ☐ Boutique Hotel ☒ N/A ACTION REQUESTED Motion approving the consent agenda will automatically approve this item. If pulled, the following motion is requested. Approve the closure of Minnesota St from College Ave to 2nd Ave NW on August 30, 2026, from 7AM to 7PM for the Millstream Arts Festival. BOARD/COMMISSION/COMMITTEE RECOMMENDATION N/A PREVIOUS COUNCIL ACTION N/A REFERENCE AND BACKGROUND The Millstream Arts Festival has been in existence since 1982, being held on the last Sunday in August. Initially, the proposal was to have an expanded closure that would close the intersection of College Ave & MN Street. After staff review it was determined it would be best for traffic flow to leave that intersection open and to just have the closure be from College Ave to 2nd Ave NW to which the applicants were supportive of. No other changes from previous years were noted. BUDGET IMPACT N/A STAFF RECOMMENDED ACTION Approve the closure of Minnesota St from College Ave to 2nd Ave NW on August 30, 2026, from 7AM to 7PM for the Millstream Arts Festival. SUPPORTING DATA/ATTACHMENTS Special Event Application Map of Street Closure 2026 Millstream Arts Festival Sunday, August 30th = Event Location = Barricades STAFF MEMO Prepared by: City Clerk Meeting Date: 7/6/26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4d Reviewed by: Item: Temporary On-Sale Liquor License, Bad Habit Brewing Council Priority: ☐ Community Center Funds ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility ☐ Boutique Hotel ☒ N/A ACTION REQUESTED Motion approving the consent agenda will automatically approve this item. If pulled, the following motion is requested. Issue the temporary on-sale liquor license to Bad Habit Brewing for a 1-day event on July 23, 2026, at Hanson & Company Woodworking. BOARD/COMMISSION/COMMITTEE RECOMMENDATION N/A PREVIOUS COUNCIL ACTION N/A REFERENCE AND BACKGROUND Bad Habit Brewing will be serving liquor at Hanson & Company Woodworking’s grand opening on July 23, 2026. BUDGET IMPACT STAFF RECOMMENDED ACTION Issue the temporary on-sale liquor license to Bad Habit Brewing for a 1-day event on July 23, 2026, at Hanson & Company Woodworking. SUPPORTING DATA/ATTACHMENTS Application STAFF MEMO Prepared by: City Clerk Meeting Date: 7/6/26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4e Reviewed by: Item: Temporary On-Sale Liquor License, Iron Street Distillery Council Priority: ☐ Community Center Funds ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility ☐ Boutique Hotel ☒ N/A ACTION REQUESTED Motion approving the consent agenda will automatically approve this item. If pulled, the following motion is requested. Issue the temporary on-sale liquor license to Iron Street Distillery for a 1-day event on July 23, 2026, at Hanson & Company Woodworking. BOARD/COMMISSION/COMMITTEE RECOMMENDATION N/A PREVIOUS COUNCIL ACTION N/A REFERENCE AND BACKGROUND Iron Street Distillery will be serving liquor at Hanson & Company Woodworking’s grand opening on July 23, 2026. BUDGET IMPACT STAFF RECOMMENDED ACTION Issue the temporary on-sale liquor license to Iron Street Distillery for a 1-day event on July 23, 2026, at Hanson & Company Woodworking. SUPPORTING DATA/ATTACHMENTS Application STAFF MEMO Prepared by: City Clerk Meeting Date: 7/6/26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4f Reviewed by: Item: Appointment of Election Judges for State Primary Council Priority: ☐ Community Center Funds ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility ☐ Boutique Hotel ☒ N/A ACTION REQUESTED Motion approving the consent agenda will automatically approve this item. If pulled, the following motion is requested. Motion appointing the election judges for the State Primary on August 11, 2026 and authorize staff the ability to appoint additional judges to be trained and assigned, if necessary. BOARD/COMMISSION/COMMITTEE RECOMMENDATION N/A PREVIOUS COUNCIL ACTION N/A REFERENCE AND BACKGROUND Included is the proposed list of election judges for the 2026 primary election taking place on August 11, 2026. Each judge that works an election is required to complete at least 2 hours of training as required by state statute. BUDGET IMPACT STAFF RECOMMENDED ACTION Appoint the election judges for the State Primary on August 11, 2026 and authorize staff the ability to appoint additional judges to be trained and assigned, if necessary. SUPPORTING DATA/ATTACHMENTS List of Election Judges Kayla Klein Ann Hadash Joal Peitz Carleen Beckermann Laurie Erickson Amanda Hegreberg Mitchell Hogan Gary Kraft Kathy Lyon Sally Niemi Mary Schaffer Karen Storkamp Mary Stommes Ann Scherer Dakotah Dorholt Shirley Adams Carol Anderson Bernie Heurung Mark Hoeschen Kay Lemke Isabella Margl Janice Mensinger Aryliss Moulzolf Charles Muske Brenda Oehrlein Nita Schneider Brooke Fetterer Grant Hellermann STAFF MEMO Prepared by: Lor Bartlett, Finance Director Meeting Date: 7-6-26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4g Reviewed by: Item: Call for Public Hearing – Delinquent Accounts to be Assessed Council Priority: ☐ Community Center Funds ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility ☐ Boutique Hotel ☒ N/A ACTION REQUESTED Call for public hearing on July 20, 2026, shortly after 6:00pm to consider certification of delinquent account balance. BOARD/COMMISSION/COMMITTEE RECOMMENDATION None PREVIOUS COUNCIL ACTION None REFERENCE AND BACKGROUND One–two times per year city staff reviews delinquent account balances for consideration to assess to property taxes. There is a 14-day public hearing notification requirement. The hearing should be held before November 15th so collections can be added for the following year by Stearns County. There is an account that is delinquent. The property owner is requesting to certify the delinquent balance to their 2027 property taxes. The account is past due and eligible for assessing the balance. The past due balance plus a $100.00 assessment certification fee will be considered to assess. The action for the meeting is to call for the public hearing on July 20, 2026, where the proposed assessments may be adopted. BUDGET IMPACT Up to $1,602.79 STAFF RECOMMENDED ACTION Consider setting the Public Hearing date for July 20, 2026. SUPPORTING DATA/ATTACHMENTS None STAFF MEMO Prepared by: City Clerk Meeting Date: 7/6/26 ☐ Consent Agenda Item ☒ Regular Agenda Item Agenda Item # 5 Reviewed by: Item: Joe Boys Poker Run – Street Closure Council Priority: ☐ Community Center Funds ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility ☐ Boutique Hotel ☒ N/A ACTION REQUESTED Approve the closure of College Ave. from MN Street to Ash St from 3PM-5PM on August 15, 2026. BOARD/COMMISSION/COMMITTEE RECOMMENDATION N/A PREVIOUS COUNCIL ACTION N/A REFERENCE AND BACKGROUND The Joe Boys Poker Run will be completing their 15th run this year. The event takes place at the La Playette and the only part that needs to be approved by council is the street closure. The request is to close a portion of College Ave from Ash St to MN Street from 3PM – 5PM. The barricades will be set up to allow for motorcycle entry only during this timeframe. BUDGET IMPACT STAFF RECOMMENDED ACTION Consider approval of the street closure as requested. SUPPORTING DATA/ATTACHMENTS Application STAFF MEMO Prepared by: Lor Bartlett, Finance Director Meeting Date: 7-6-26 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 6 Reviewed by: Item: Refuse/Recycling Contract Extension – 2027-2031 Republic Services Council Priority: ☐ Community Center Funds ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility ☐ Boutique Hotel ☒ N/A ACTION REQUESTED Approved the residential refuse and recycling contract extension with Allied Waste Services of North America, LLC dba Republic Services of Sauk Rapids through December 31, 2031. BOARD/COMMISSION/COMMITTEE RECOMMENDATION None PREVIOUS COUNCIL ACTION Council extended the 2021 Republic Services contract through Dec. 31, 2026. REFERENCE AND BACKGROUND The City of St. Joseph has provided organized residential refuse and recycling collection services since the early 1990s. Based on available city records, the contract has historically been awarded to Republic Services (formerly Allied Waste and BFI). The service contract was competitively bid on three-year cycles through 2023, after which the City Council approved a contract extension covering 2024 through 2026. Over the course of the partnership, the city has negotiated several additional benefits at no cost to residents or the city, including refuse and recycling collection for city facilities, spring and fall curbside cleanup events, Christmas tree collection, and electronic and appliance pickup programs. Republic Services has consistently provided quality customer service to both residents and city staff. Given the city's longstanding positive relationship with Republic Services, the competitive rates received under the current agreement, and the additional services provided, staff recommends extending the existing contract rather than conducting a new competitive bid process. Staff requested pricing for a five-year contract extension to provide long-term stability. Republic Services proposed a 5.0% rate increase for 2027, followed by annual increases of 4.5% for each of the remaining four years. Even with the proposed increases, the rates remain significantly lower than the cost residents would incur through individual refuse and recycling contracts. In addition, the proposed extension provides cost certainty for both residents and the city while maintaining the current level of service. The proposed contract extension has been reviewed by the city attorney. BUDGET IMPACT The fees will impact on the fee schedule for rates charged to residents. The fee schedule will be presented in the fall. STAFF RECOMMENDED ACTION Approve the 5-year contract extension with Republic Services SUPPORTING DATA/ATTACHMENTS Amendment to refuse and recycle collection agreement Classified as Confidential-External AMENDMENT TO REFUSE AND RECYCLE COLLECTION AGREEMENT THIS AMENDMENT TO THE REFUSE AND RECYCLE COLLECTION AGREEMENT (the “Amendment”) is entered into effective as of 1st day of January,2027 (“Effective Date”) by and between Allied Waste Services of North America, LLC dba Republic Services of Sauk Rapids, (“Company”) and City of St. Joseph, Minnesota (“City"). A. The parties entered into that certain REFUSE AND RECYCLE COLLECTION AGREEMENT effective 1st January 2024 (the “Agreement”), pursuant to which Company provides waste services to the City. B. The parties desire to amend the Agreement as set forth herein. NOW, THEREFORE, in consideration of the mutual covenants contained in the Agreement, and for good and valuable consideration, the receipt and sufficiency of which the parties acknowledge, the parties agree that the Agreement is amended as follows: 1. Section 6, Term. The parties agree that the term of the Agreement has been extended from its original end date of 1st January 2027 to December 31, 2031. Thereafter, the Agreement may be extended for additional period upon mutual consent of the parties. 2. Exhibit C – The parties agree that effective January 1, 2027, Exhibit C shall be replaced in its entirety with the following: EXHIBIT C SOLID WASTE PRICING Refuse Collection Fees – weekly service Units: $ per household per month Service Level 1/1/2027 – 12/31/2027 1/1/2028 – 12/31/2028 1/1/2029 - 12/31/2029 1/1/2030 – 12/31/2030 1/1/2031 – 12/31/2031 30 Gallon $18.34 $19.17 $20.03 $20.93 $21.87 60 Gallon $18.91 $19.76 $20.65 $21.58 $22.55 90 Gallon $20.07 $20.97 $21.91 $22.90 $23.93 Refuse Collection Fees for Additional Carts- weekly service Units: $ per household per month Service Level 1/1/2027 – 12/31/2027 1/1/2028 – 12/31/2028 1/1/2029 - 12/31/2029 1/1/2030 – 12/31/2030 1/1/2031 – 12/31/2031 30 Gallon $9.18 $9.59 $10.02 $10.47 $10.94 60 Gallon $9.18 $9.59 $10.02 $10.47 $10.94 90 Gallon $9.18 $9.59 $10.02 $10.47 $10.94 Classified as Confidential-External Overflow Bag of Refuse Fee Units: $ per each overflow bag Service Level 1/1/2027 – 12/31/2027 1/1/2028 – 12/31/2028 1/1/2029 - 12/31/2029 1/1/2030 – 12/31/2030 1/1/2031 – 12/31/2031 Bag $11.47 $11.99 $12.53 $13.09 $13.68 Recycling Collection Fees- Every other week service Units: $ per household per month Service Level 1/1/2027 – 12/31/2027 1/1/2028 – 12/31/2028 1/1/2029 - 12/31/2029 1/1/2030 – 12/31/2030 1/1/2031 – 12/31/2031 60 Gallon $5.92 $6.19 $6.47 $6.76 $7.06 90 Gallon $5.92 $6.19 $6.47 $6.76 $7.06 Cart exchange/Replacement Delivery Fee Residents may elect to change container sizes at no additional charge once per calendar year. After the first exchange, any additional exchange may be subject to a service charge as follows. Units: $ per delivery occurrence. Service Level 1/1/2027 – 12/31/2027 1/1/2028 – 12/31/2028 1/1/2029 - 12/31/2029 1/1/2030 – 12/31/2030 1/1/2031 – 12/31/2031 Per delivery $30.00 $30.00 $30.00 $30.00 $30.00 Walk-Up (Valet) Fee Units: $ per each month Service Level 1/1/2027 – 12/31/2027 1/1/2028 – 12/31/2028 1/1/2029 - 12/31/2029 1/1/2030 – 12/31/2030 1/1/2031 – 12/31/2031 Walk up -Valet $25.00 $25.00 $25.00 $25.00 $25.00 Not Out Fee Units: $ per each occurrence. Service Level 1/1/2027 – 12/31/2027 1/1/2028 – 12/31/2028 1/1/2029 - 12/31/2029 1/1/2030 – 12/31/2030 1/1/2031 – 12/31/2031 Per occurrence $25.00 $25.00 $25.00 $25.00 $25.00 Pricing. The pricing set forth in the Exhibit is exclusive of taxes, host fees, FRF, ERF and administrative fees which will be invoiced as separate line items. List of City Buildings and Parks to Be Served by the Company: Name & Location Type Estimated Service Level St. Joseph Government Center 75 Callaway St E Refuse Recycling TBD yd lx/week TBD yd lx EOW Classified as Confidential-External Fire. Station 323 4th Ave NE Refuse Recycling TBD yd lx/week TBD yd lx EOW Public Works Facility 1855 Elm St E Refuse Recycling TBD yd lx/week TBD yd lx EOW Main Wastewater Pump Station 413 2nd Ave. NW Refuse Recycling TBD yd lx/week TBD yd lx EOW Klinefelter Park 1000 Dale St E Refuse Recycling TBD yd lx/week TBD yd lx EOW Millstream Park 725 County Road 75 W Refuse Recycling TBD yd lx/week TBD yd lx EOW Memorial Park 28 3rd Ave NW Refuse Recycling TBD yd lx/week TBD yd lx EOW Water Treatment Plant 2 29771 Frontage Rd Refuse Recycling TBD yd 1 x/week TBD yd lx EOW St. Joseph Community Center 121 1st Ave SE Refuse Recycling TBD yd lx/week TBD yd lx EOW Water Treatment Plant 1 25 1st Ave NW Refuse Recycling TBD yd lx/week TBD yd lx EOW Any other similar future city owned facilities, and parks, will be offered at no cost to the city as designated by the City Administrator. 3. Exhibit D – The parties agree that this Exhibit is hereby replaced in its entirety as mentioned in the following page after signatures. EXHIBIT D SPECIAL COLLECITON OF BULKY ITEMS Cost for the City’s Spring/Fall bulky item and electronic collection days: Service Description Cost One day curbside bulky item collection in the spring Included in Proposal One day drop off electronic & appliance in the spring Included in Proposal One day drop off bulky item, electronic & appliance collection in the spring Included in Proposal One day curbside bulky item collection in the fall Included in Proposal One day drop off electronic & appliance in the fall included in Proposal One day drop off bulky item, electronic & appliance collection in the fall Included in Proposal Cost for bulky waste collection/on-call special collection: Small - $15, Medium $30, and Large $45 and as itemized as follows: Cost/Item Kitchen/Office Chair $ 20 Tire $15 Toilet $15 without tank $25 with tank Bathtub (Steel or Fiberglass) $30 Bed — Headboard/Footboard/Frame $30 Bookcase/Dresser/ End Table $30 Classified as Confidential-External 4. Capitalized Terms. Capitalized terms used but not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement. In the case of a conflict in meaning between the Agreement and this Amendment, this Amendment shall prevail. 5. Continuing Effect. Except as expressly modified or amended by this Amendment, all terms and provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment as of the second date set forth below. CITY COMPANY City of St. Joseph, Minnesota Allied Waste Services of North America, LLC dba Republic Services of Sauk Rapids By: _______________________________________ By: ______________________________________ Name: Name: Title: Title: Date: Date: Recliner/ EZ chair $30 Tire with Rim $30 Other items (specify) $30 Surcharge: TVs Larger than 26-inch screen, console TVs, mid rear-projectors Appliance/Electronics $50 (TV under 27") Couch with or without hide-a-bed $50 (mattress is separate item) Desk/Hutch $40 Dining Room/Kitchen Table $40 Grill Charcoal or Gas (no propane tanks) $40 Lawnmower/ Snowblower $40 (liquids must be drained) Mattress/ Box Spring $55 Roll of Carpet $50 (per room) (average room size 12 feet xI2 feet) 5 feet max length; cut and rolled STAFF MEMO Prepared by: Lor Bartlett, Finance Director Meeting Date: 7-6-26 ☐ Consent Agenda Item ☒ Regular Agenda Item Agenda Item # 7 Reviewed by: Item: 2022A Community Center Bonds Reallocation Discussion Council Priority: ☒ Community Center Funds ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility ☐ Boutique Hotel ☐ N/A ACTION REQUESTED Discuss the use of the remaining $5.5 million community center bonds and direct staff to move forward with the plans. BOARD/COMMISSION/COMMITTEE RECOMMENDATION None PREVIOUS COUNCIL ACTION Council established a priority to determine the use of the 2022A community center bond proceeds. The community center project was terminated in January 2026. Council set the top five priorities at their June 17, 2026, visioning session with department heads. The use of the community center bonds was ranked 3rd in the top priorities. REFERENCE AND BACKGROUND The City Council issued $6.125 million in 2022A General Obligation Tax Abatement Bonds to assist in funding the construction of a community center. In addition, the city received a $4 million State of Minnesota capital bonding appropriation that must be expended by December 31, 2026. The remaining project costs were planned to be funded through private fundraising efforts. Interest earnings on the bond proceeds were also designated as a funding source for the project. The chart below shows the budgeted funding for the base building of the community center. Based on the 2025 construction estimates, the community center was projected to cost approximately $17.4 million for the base building and up to $22.4 million for a full buildout. Fundraising efforts generated $2.7 million, leaving the project approximately $3.8 million short of the amount needed to construct the base building. Due to the fundraising shortfall, the City Council voted in January 2026 to terminate the project. All donations received for the project were subsequently returned to donors. Community Center Budgeted Funding Allocation -Base Building State Bonding 2022A Bonds (Sales Tax) Capital Campaign Interest Earnings The 2022A bond proceeds were deposited into Capital Project Fund 402. To date, the City has expended $803,094 on project-related costs, including predesign services, construction management fees, capital campaign management, and legal services. As of June 29, 2026, the remaining cash balance in Fund 402 is $5,511,139. Debt service payments for the 2022A bonds are made from Debt Service Fund 302. The bonds are not callable until December 15, 2030. Annual principal and interest payments, funded through local option sales tax revenues, range from approximately $452,600 to $457,600 per year. As of June 29, 2026, the cash balance in Debt Service Fund 302 is $1,515,827. If the City elects to defease the bonds prior to the call date, an escrow account would be established and funded with sufficient assets to make all required payments through December 15, 2030. Based on current estimates, the city would need to deposit approximately $6,445,100 into the escrow account. Principal Interest if call on 12/15/2030 Balance Due if call on 12/31/2030 Interest if not called early Balance Due if not called early $5,545,000 $900,100 $6,445,100 $2,090,900 $7,635,900 Staff have consulted with bond attorney Mary Ippel, municipal advisor Tammy Omdal, tax attorney Will Vietti, and arbitrage consultant Gail Robertson regarding options for the remaining bond proceeds following termination of the community center project. Based on these discussions, the consultants advised that the 2022A General Obligation Tax Abatement Bonds may be used for any governmental purpose that has a nexus to the properties identified in the original tax abatement agreement. An exception within the applicable statutes prohibits the use of the bond proceeds for public safety facilities. The consultants also confirmed that the bonds may be defeased prior to the call date if directed by the Council. While not legally required, the consultants recommended that any alternative use of the bond proceeds align with one or more of the project categories approved by voters through the local option sales tax referendum. The local options sales taxes are paying the bond principal and interest payments. The approved categories included: Sales tax expense to date on these projects include the following amounts:  Regional Transportation Improvements - $135,000  Regional Community Facilities - $1,863,690  Regional Parks, Trails, Open Space - $2,566,249 For discussion on July 6, 2026, staff are seeking direction regarding the future use of the remaining bond proceeds and authorization to proceed with planning efforts. The tax attorney advised that the remaining bond proceeds should ideally be expended within the next six to twelve months. If the Council intends to both utilize a portion of the proceeds for another qualifying project and defease the remaining bonds, the tax attorney recommended delaying any defeasance action until project costs are finalized. This approach would allow the city to defease only the remaining unused bond proceeds. Once the Council determines the intended use of the remaining 2022A bond proceeds, staff will prepare and present a revised Tax Abatement Resolution identifying the new authorized uses of the bond funds. BUDGET IMPACT Allocate $5.5 million 2022A bond funds (balance after paid expenses and interest earnings) STAFF RECOMMENDED ACTION Direct the 2022A community center bonds to new projects and/or defease the bonds early. SUPPORTING DATA/ATTACHMENTS None STAFF MEMO Prepared by: Admin/Engineer Meeting Date: 07/06/2026 ☐ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 8a Reviewed by: Item: 2026 Street & Utility Improvements-Declaring Costs to be Assessed and Ordering Preparation of Proposed Assessment Council Priority: ☐ Community Center Funds ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility ☐ Boutique Hotel ☐ N/A ACTION REQUESTED Approve resolution 2026-038 Declaring Costs to be Assessed and Ordering Preparation of Proposed Assessment for the 2026 Street & Utility Improvements. BOARD/COMMISSION/COMMITTEE RECOMMENDATION PREVIOUS COUNCIL ACTION Public hearing on the proposed improvements Ordering Plans and Specifications Opening bids for the 2026 Street and Utility Improvements REFERENCE AND BACKGROUND The City’s 2019 Pavement Maintenance Plan identifies scheduled bituminous surfacing improvements for 2026. The report provides information on the following: Existing conditions, what the proposed improvements are, probable costs, and project funding and special assessments information. The next step in the MN Statute 429 process is to declare the costs to be assessed and order preparation of a Final Assessment Roll. BUDGET IMPACT $00.00 STAFF RECOMMENDED ACTION Approve Resolution 2026-038. SUPPORTING DATA/ATTACHMENTS Resolution 2026-038 RESOLUTION 2026-038 DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT 2026 Street & Utility Improvements WHEREAS, costs have been determined for the 2026 Street & Utility Improvement project which includes street resurfacing in parts of the College Subdivision 2nd Addition (Callaway Street E), Rivers Bend Subdivision (Jade Road), Liberty Pointe Subdivision (Dale Street), Buettner Business Park Subdivision (Elm Street E, 15th Avenue NE), Borgert Industrial Park Plat 2 Subdivision (Elm Street E, 19th Avenue NE), Rennie Subdivision (19th Avenue NE), Northland Heights Subdivision (Iris Lane, 13th Avenue NE, 14th Avenue NE, Jasmine Lane E), Cloverdale Estates 2nd Addition Subdivision (Baker Street), parking lot improvements at Klinefelter Park, and street and utility improvements in parts of the Foxmore Hollow Subdivision (1st Avenue SW, Foxmore Way, 2nd Avenue SW), Reischls Hillside Estates subdivision (Hill Street W, 2rd Avenue SW), Morningside Acres Second Addition Subdivision (Iverson Street W, Morningside Loop), hereinafter called “The Project; and to assess the benefitted property for a portion of the cost of the improvement, pursuant to Minnesota Statutes, Chapter 429. The estimated cost for such improvement is $4,275,699.16, and the expenses incurred or to be incurred in the making of such improvement amount to $ 1,075,170.97, so that the total cost of the improvement will be $5,350,870.13. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH, MINNESOTA: 1. The portion of the cost of such improvement to be paid by the city is hereby declared to be $3,476,150.87 and the portion of the cost to be assessed against benefitted property owners is declared to be $1,874,719.26. 2. Assessments shall be payable in equal installments extending over a period of 10 years, the first of the installments to be payable on or before the first Monday in January 2027, and shall bear interest at a rate of 5.75 percent per annum from the date of the adoption of the assessment resolution. 3. The City Clerk, with the assistance of the City Engineer, shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and the Clerk shall file a copy of such proposed assessment their office for public inspection. 4. The City Clerk shall upon the completion of such proposed assessment, notify the council thereof. Adopted by the Council this 6th day of July, 2026. ________________ _______ Adam Scepaniak, Mayor ATTEST David Murphy, City Administrator STAFF MEMO Prepared by: Admin/Engineer Meeting Date: 07/06/2026 ☐ Consent Agenda Item ☒ Regular Agenda Item Agenda Item # 8b Reviewed by: Item: 2026 Street & Utility Improvements-Calling for Hearing on Proposed Assessment Council Priority: ☐ Community Center Funds ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility ☐ Boutique Hotel ☒ N/A ACTION REQUESTED Approve resolution 2026-039 Setting Hearing on Proposed Assessments BOARD/COMMISSION/COMMITTEE RECOMMENDATION PREVIOUS COUNCIL ACTION Holding a public hearing on the proposed improvements Ordering Plans and Specifications Opening bids for the 2026 Street and Utility Improvements REFERENCE AND BACKGROUND The City’s 2019 Pavement Maintenance Plan identifies scheduled bituminous surfacing improvements for 2026. The report provides information on the following: Existing conditions, what the proposed improvements are, probable costs, and project funding and special assessments information. The next step in the MN Statute 429 process is to schedule a special assessment hearing for August 3, 2026. BUDGET IMPACT $00.00 STAFF RECOMMENDED ACTION Approve Resolution 2026-039. SUPPORTING DATA/ATTACHMENTS Resolution 2026-039 RESOLUTION 2026-039 FOR HEARING ON PROPOSED ASSESSMENT 2026 Street & Utility Improvements WHEREAS, a resolution passed by the City Council on July 6, 2026, the City Clerk and City Engineer were directed to prepare a proposed assessment of the cost of the 2026 Street & Utility Improvement Project which affects the following areas: street resurfacing in parts of the College Subdivision 2nd Addition (Callaway Street E), Rivers Bend Subdivision (Jade Road), Liberty Pointe Subdivision (Dale Street), Buettner Business Park Subdivision (Elm Street E, 15th Avenue NE), Borgert Industrial Park Plat 2 Subdivision (Elm Street E, 19th Avenue NE), Rennie Subdivision (19th Avenue NE), Northland Heights Subdivision (Iris Lane, 13th Avenue NE, 14th Avenue NE, Jasmine Lane E), Cloverdale Estates 2nd Addition Subdivision (Baker Street), parking lot improvements at Klinefelter Park, and street and utility improvements in parts of the Foxmore Hollow Subdivision (1st Avenue SW, Foxmore Way, 2nd Avenue SW), Reischls Hillside Estates subdivision (Hill Street W, 2rd Avenue SW), Morningside Acres Second Addition Subdivision (Iverson Street W, Morningside Loop), hereinafter called “The Project”. AND WHEREAS, the City Clerk has notified the council that such proposed assessment has been completed and filed in his/her office for public inspection. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH, MINNESOTA: 1. A hearing shall be held on the 3rd day of August, 2026, in the St. Joseph Government Center located at 75 Callaway St E, St. Joseph, MN at 6:00 PM, or shortly thereafter, to pass upon such proposed assessment. All persons owning property affected by such improvement will be given an opportunity to be heard with reference to such assessment. 2. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing, and the notice shall state the total cost of the improvement. Notices shall be mailed to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the county auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City of St. Joseph, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of the assessment. An owner may at any time thereafter, pay to the City of St. Joseph the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. Adopted by the council this 6th day of July, 2026. ________________ _______ Adam Scepaniak, Mayor ATTEST David Murphy, City Administrator