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HomeMy WebLinkAbout[04a] MinutesC['t'1i O~ HT, J[~Se~PH Council Agenda Item 4 d MEETING DATE: AGENDA ITEM: SUBMITTED BY: February 21, 2008 Minutes Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION: BUDGET/FISCAL IMPACT: ATTACHMENTS: REQUESTED COUNCIL ACTION: Approve-the minutes of January 31 and February 7, 2008 January 31, 2008 Page 1 of 2 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in special session on Thursday, January 31, 2008 at 5:00 PM in the St. Joseph City Hall. Members Present: Mayor AI Rassier. Councilors Dale Wick, Renee Symanietz, Steve Frank. Administrator Judy Weyrens. Others Present: City Engineer Randy Sabart, Public Works Director Dick Taufen, Police Chief Pete Jansky, Finance Director Lori Bartlett. Common Legislative Issues: Weyrens presented the Council with a revised resolution advocating support for common legislative issues. At the January 29, 2008 Intergovernmental Meeting the Area Cities discussed the importance of lobbying as a group for common items. Tie items include: Local Government Aid; Levy Limits; Bio Science Zones; North Star Commuter Rail; Local Option Sales Tax Authority;. Sauk Rapids Bridge; St. Cloud Civic Center Expansion; Regional Parks and Trails; St. Cloud Regional Airport Land Acquisition; Transportation; Growth Management and Annexation; and Environment. Mayor Rassier stated that the Resolution has been ,modified slightly since the January 29 meeting. All Cities agreed to consider the revised. resolution at their next regular scheduled meeting. Wick stated that based on his understanding the City is agreeing to support and advocate for the projects, it does not state whether or not the City approves the projects. Rassier concurred with Wick and stated that some of the projects do not have a direct bearing to St. Joseph. Wick made a motion authorizing the Mayor .and Administrator to execute Resolution 2008-002, a Joint Resolution of the Central MN Cities of St: Cloud, Sartell Sauk Rapids, St. Joseph, St. Augusta and Rockville Advocating Support for Certain Legislative Issues and Proposals of Common Interest or Concern to the Central Minnesota Region. The motion was seconded by Symanietz and passed .unanimously. Public Works Director Hire: 1/Veyrens reported that she contacted the applicant selected by the Council and he has requested a higher compensation that originally agreed to by the Council. Due to the experience the candidate has requested to be compensated at the top of the step system for the job classification. After considerable discussion the Council requested Weyrens contact the applicant one more time to see if he`vvould accept the position at-step 5 or 6 of the scale. 2008 Equipment Certificate The City Councii reviewed the request of Department Heads for the equipment purchase in 2008. As a means stabilizing budget affects from large equipment purchases the City over the past years has been issuing equipment certificates. As an equipment certificate expires a new certificate is issued near the same level. `Department Heads are requested to plan for five years, including staff, equipment and space.: As equipment certificates are paid through tax levies, by waiting until one expires, a stable levy is provided for capital purchases. Weyrens informed the Council ,that;Monte Eastvold of Northland Securities will be at the next Council meeting to present the Courcil with a refinancing option for two bond issues. With the Federal Reserve dropping the prime rate, bond rates have declined. After the first rate drop, the City would save approximately $ 88,000 in interest payments if the bond issues were refinanced. If the City is ready to issue the equipment certificate on February 7, the City can save the issuance expenses, refinancing the bond issues and issues the new debt at the same time. A revised equipment list will be provided to the Council at the next regularly scheduled Council Meeting for possible adoption. Capital Improvements: City Engineer Randy Sabart presented the Council with the five year capital improvement plan. The purpose of the plan is to inventory infrastructure needs and plan for replacement and maintenance. There was a question as to whether or not the CSAH 75 Relief Storm Sewer Repair is needed at this time. The impact if not repaired would be the possible water backup affecting a couple of January 31, 2008 Page 2 of 2 residents. Weyrens stated that when the City developed the Storm Water Utility and Development Fee, the revenue collected would maintain the system without additional tax burden. Therefore, the revenue stream for the Storm Water Repairs will be the fees collected. Frank questioned the sidewalk on 2"d Avenue NW and the need to continue providing sidewalks along streets. While additional lighting will help with safety on 2"d Avenue NW, sidewalk should also be considered. Saban discussed the building impediments along 2"d Avenue NW, but stated a sidewalk can be engineered, it may be costly. The Council discussed the need to prepare a feasibility report which will identify all impediments and detail costs. After the feasibility report is complete the Council can then discuss the improvement. Wick and Rassier expressed concern with the expenditure of the sidewalk as CR 2 will be relocated in 2009 and the traffic will be changed significantly. A road that noWfantlles a large amount of traffic will function more as a residential street. Wick also stated that th~P~rk Board should review the sidewalk to determine how or if it falls within the St. Joseph Trail plan..,~ra~k stated that the sidewalk is different that a trail, but he does not have an issue with sending the matterao the Park„Board. Adiourn: Wick made a motion to adjourn at 7:30.;PM~~seconded by Syma'nietz and passed unanimously. Judy Weyrens Administrator February 7, 2008 Page 1 of 5 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, February 7, 2008 at 7:00 PM in the St. Joseph City Hall. Members Present: Mayor AI Rassier, Councilors Renee Symanietz, Dale Wick, Steve Frank City Administrator Judy Weyrens City Representatives Present: City Engineer Randy Sabart, Public Works Director Dick Taufen, Finance Director Lori Bartlett Others Present: Wahlstroms, Ken Jacobson, Randy Torborg, Phyllis Plantenberg Approve Agenda: Symanietz made a motion to approve the agenda with the following changes/additions: Add 8a Planning Commission Vacancy;> Change 4e Pay Application #2 (Final] The motion was seconded by Wick and passed unanimously. Public Comments to the Agenda: No one present wished to comment. Consent Ac el nda: Symanietz made a motion to approve the consent agenda as follows: a. Minutes -Approve the minutes of January 24,;008. b. Bills Payable -Approve. check numbers 0001'14=000122 8~ 039862-039935. c. Capital Request -Authorize the purchase of a desk top computer and title system for the Cable Commission for a cost of $1,380.72. d. Contract Employees - Acceptthe recommendation of the Personnel Committee finding the reviews of the contract employees satisfactory, thereby accepting the 2008 compensation. e. Application .for Payment -Authorize the Mayor to execute Application for Payment #1 for the 2007 Storm Sewer Improvements and authorize payment to Larson Excavating Contractors, Inc in the amount of $8,736.70. f. Capital Equipment Purchase -Authorize the expenditure of $8,000 for the .purchase of a 3120 Lawn,Tractor and Mower from Mies Equipment. g. Gambling Permit -Accept the Lawful Gambling Application for Exempt Permit for the Muscular Dystrophy Association for an event to be held at the Stonehouse on June 7, 2008. h. Application for'Payment,- Authorize the Mayor to execute Application for Payment #18 for the water Treatment Plant and authorize payment to John T. Jones in the amount. of $54,680.75. The motion was seconded by Frank and passed unanimously. 2008 Bond Issue: Monte Eastvold approached the Councilors to present the 2008 Bond Issue. The first issue is for a pending equipment certificate totaling $290,000 with issuance expenses. This bond would be payable over five years with an annual tax levy of $61-63,000. He stated that the payments would be financed entirely with tax levies. Eastvold added that the sale would take place at the March 6, 2008 Council Meeting and the bond closing would be April 3, 2008. Frank questioned the increase in the tax levies. He understood that the tax hearings were already held and finalized. Weyrens stated that this levy would begin in 2009 replacing an existing equipment certificate that will be corning off. Eastvold then addressed the possibility of refunding the 2001 Sewer Revenue Bond and the 2002 Improvement Bond. Interest rates have been decreasing and by refunding those two bonds, the City could save $88,356 over time. The call date for those bonds is 12/2009. Therefore, the City would make the original bond payments until that time and then the new interest rates would take February 7, 2008 Page 2 of 5 effect. Eastvold stated that the State requires a 3% minimum savings test in order to refund bonds. At this time, the City is just above that requirement. He questioned the Council as to whether or not they are interested in pursuing the refunding of the 2001 and 2002 bonds as discussed. Wick questioned when the bonds will be due. According to Eastvold, the 2001 bond matures in 2021 and the 2002 bond matures in 2017. Eastvold discussed with the Council the recent media articles on the quality of municipal bonds that are insured. Municipalities insure bonds to increase the bond rating to an A rating which in turn yields a better interest rate. During the housing boom, some of the bond companies that provided insurance were under collateralized and as long as the housing market was good, it did not have a negative effect. However, now that the market is decreasing the bond companies that offered sub prime mortgages are suffering. These same bond companies do not have enough collateral for the municipal bonds they issued, and the bonds will: carry the same value. As a result, there are only two bond companies left that have the capacity to insure bonds, leaving a ht; -^~! demand market. Eastvold stated that when insuring bond~:;yot~~must now look at the premium charged for the insurance and the net interest rate with ~` T ance. In the bond before the Council, the savings in interest warrants the insurance~iemiui~h~.at will be charged. Wick questioned whether the savings presen premiums. Eastvold stated that those costs h With respect to the possible refunding, Rassier q the Council that they can begin the p ervvork and when the interest rates may be mor ~ .able. He d is done at the same time as the equi - ificate expenses. Rassier clarified that if inter . r ~ ntii more. Frank advised Weyre . City should choose - insur happens if the City we~etito defau default on a bond becaus~th~e Ci by defaulting~]('~ri a bond, it may; b . 43.. .. be higher~ddd that he is.nc the 19~0~~ astvold al oatated 1 to be aE~l~#o utilize the fa~pg_au1 Council includj suance costs and i included and th' r..are net savings. ~ned wha~ happens n' ' Eastvold advised it - ~t a later mee ~' March or ver, state that if the ° pond refunding the ~- may be able to save on issuance ue to ie~.ease, they may be able to save like c~omm ~~n m Sta"ff as to whether or not the on the ~ `: n e. Hestioned Eastvold as to what ~a bond. E,as old replied that the City does not want to ill always nieed,to issue bonds to maintain infrastructure and i:~~ff•cult to~get.new bond issues and the interest rates will are o aftymurJ~c~ality that has defaulted on a bond since :he reason-.municipalities issues General Obligation Bonds is Weyrens sti~ -'l =that she regU -` _d Eas := - to present the information to the Council as the proposed save sere significa ~~One of a bond funds being refunding is the sewer capacity issue which is pr drily funded t f~ugh sewer access fees. Reducing the interest cost will maximize the access: ees colle = ~~ by the City. The City will be required to finance a portion of ~. ~y the St. Cloud Treatme ~ ~ Ian -~`. _ "that project will also be funded with sewer access fees. The second reason for refina - this time is to save issuance costs on the 2008 Equipment Certificates. Eastvold advis the Council that in December 2006, interest rates hit a 40 year low and it appears that they are getting close to that low point again. It appears that the long term bond rates are increasing and the short term rates are decreasing. With respect to the City's credit rating, Rassier questioned whether or not refunding bonds would affect the City's rating. The City's current rating is BAA1. When the City's debt is reduced, bond companies look at it as a positive for the City. Therefore refinancing bond issues has a positive affect on the bond rating. The Council approved both bond issues by consensus. Holiday Decoration Donation Request: Ken Jacobson, 1315 Eagle Ridge Drive, approached the Councilors to discuss the City's Holiday decorations. He stated that the Fire Department has February 7, 2008 Page 3 of 5 been handing and maintaining the holiday decorations. This year the department noticed that the decorations are falling apart and the lights are not working as well. Therefore, the Fire Department is requesting the Council establish a five year improvement plan and fund up to $ 2,000 per year for replacement. Weyrens stated that funds could be reallocated to make this work. Wick questioned whether a separate fund would be created to which Weyrens stated it would. Wick also clarified that people would be able to make donations as well. Frank questioned whether or not the City would receive any incentives from Xcel Energy if they were to use LED lights. Jacobson stated that most of the new lights are LED. Weyrens advised the Council that she would work have those discussions with Xcel. Frank made a motion to approve the expenditure of $2,000/year for the next five years to help with the replacement of the holiday decorations. The motion was seconded by Symanietz and passed unanimously. CITY ENGINEER REPORTS - No Report MAYOR REPORTS Planning Commission Vacancy: Rassier notified the Council that Bob Loso resigned from the Planning Commission, creating a vacancy. Staff placed an ad in the St. Joseph Newsleader and three applications were received. The Planning Commission Chair and Council Liaison met with Rassier and they have selected Mike McDonald to fill the vacancy until the end of Loso's term. Wick made a motion to approve the appointment of Mike McDonald to the Planning Commission. The motion was seconded by Symanietz and passed unanimously. Councilor Training: Rassier stated that he received an email from Councilor Schultz questioning New Councilor Training. According to Weyrens, Schultz is all set up to attend the training. COUNCILOR REPORTS SYMANIETZ St. Cloud Area Joint Planning District Board: Symanietz reported that she attended the SCAJPD Board at which they formed a committee for affordable housing. That Committee will hold informational meetings throughout the year in April, July and October. Those meetings would be open to the public. Weyrens added that the 5 area cities met and the first meeting will be about foreclosures-and will be in the' format of a panel discussion. APO: Symanietz stated that she' attended the APO meeting at which they discussed the Northern Rail System. They hope to have ifi up and running by November 2009. The new Rail System will run from Big Lake to Minneapolis.-.and will have a one way fare of $6.00. It is set up more for the commuters rather than travelers. Frank added that the emphasis is more of a commuter rail and will run from approximately Gam to 6:30pm. He also stated that they will have monthly passes available and they have discussed the possibility of shuttle buses running from 3 different locations. The St. Joseph Park and Ride is a possible location for a bus stop. Park Board: Symanietz reported that the Park Board met and they are in the process of prioritizing the projects for 2008. Joint Cities Meeting: Symanietz, along with fellow Councilors, attended the Joint Cities meeting in Rockville at which they discussed a resolution for lobbying at the Capital. Winter Warm-Uo: Symanietz stated that she attended the annual Winter Warm-Up sponsored by the St. Joseph Chamber. February 7, 2008 Page 4 of 5 Mayor's Reception: Symanietz reported that she attended the Mayor's Reception for the St. Paul Winter Carnival. WICK Planning Commission Update: Wick reported that the Planning Commission met and discussed amendments to Ordinances 52.27, 52.28 and 55. The Council will receive amendments to 52.27 and 52.28 at their next meeting. The Planning Commission will be discussing Ordinance 55 again at their next meeting with a public hearing to be held in April. Rassier questioned if it would be possible to get the Ordinance changes earlier for review purposes. FRANK APO Meeting: Frank advised the Council that he attended thgAPO Meeting at which they discussed funding for transportation projects. He stated thattle funding for Field Street has been >~~ ., pushed back from 2030 to 2035. Overall, he stated that.i~w~s a-good meeting. ADMINISTRA Comprehensive Plan: Weyrens stated that th~~ the Planning Commission will be the lead ageri Wednesday of each month at 6:00 PM with the the first Public input meeting is scheduled for F Frank questioned whether they will b~ scratch. Weyrens replied that they will -~lo did not. She added that some areas oft `' "Col also questioned whether,powe~ sources s " replied that they will b igcus - d _ Frank th "- an annual report. We ens state ,~ at they wi Commission. Weyrens;ad„wised the_.Counc~l th< Plan Amendment will be-available ohlne. With questioned if surrounding areas will b~e i volye County and' St' Joseph .Township~willybe very. i little invement. ~r~., JU CCl IIUI'M11-1~ ~ L l1YCIIUC<INV about adding - o additional stc the alley intertipn. In order 1 additional lamps t~_the existing Symanietr made a seconded by Wick. on as . ~:: t?REPORTS`~~° -' ~,. ` ~ _ vilf be updating the~Qomprehensive Plan and r the update. They wi~:jmeet on the 4:n :agenda item the Plan Update. Additionally, ;27. ~~ ~'~~,. nen iirt the current plan ors#arting from the curr~ritplan to see what worked and what e,~nsive Plat will need to be re-done. Frank i ndsolar will'be discussed. Weyrens .~~~ ... r ether or' not the Council will receive n annual-.report from the Planning information relating to the Comprehensive pct to involvement of other entities, Frank e process. Weyrens stated that Stearns ;c7`jn the process and St. Wendel will have ated that recently there has been some discussion Z"d Avenue NW, one at MN Street and 2"d and one at this, the City would need to request that Xcel add the rize the additional street lamps. The motion was Discussion: Frank addressed the Council with respect to the need for a sidewalk along 2nd Avenue NW. He stated that this was an issue that was discussed in the past; however, if appears that fhe issue was never followed up on. He stated that he, along with others in the community, feels that this is a need. Frank was advised that the City Engineer is working on the figures of adding the sidewalk. The motion passed unanimously. Public Works Director Hiring Uodate; Weyrens stated that the background check has been successfully completed and the City has offered Terry Thene the job of Public Works Director. He is able to start on March 4. February 7, 2008 Page 5 of 5 Frank made a motion to approve the hiring of Terry Thene for the Public Works Director. The motion was seconded by Wick and passed unanimously. Stearns County. Assessor Update: Weyrens advised the Council that the Stearns County Assessor will be present at the next Council meeting to answer any questions that the Council may have. They will be ready to answer questions relating to St. Ben's as well as residential and commercial properties. Sian Ordinance: Weyrens stated that the Council will be reviewing the amendment to the Sign Ordinance at their next meeting as well Adjourn: Wick made a motion to adjourn; seconded by Symanietz and passed unanimously. Judy Weyrens Administrator