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HomeMy WebLinkAbout[04a] MinutesC[T~' OF tiT. J[~SN:1'H Council Agenda Item 4 d MEETING DATE: May 21, 2009 AGENDA ITEM: Minutes -Requested Action: Approve the Council minutes of May 7, 2009 SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION: BUDGET/FISCAL IMPACT: ATTACHMENTS: Minutes of May 7, 2009 REQUESTED COUNCIL ACTION: Approve the minutes of May 7, 2009 May 7, 2009 Page 1 of 6 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, May 7, 2009 at 7:00 PM in the St. Joseph City Hall, opening the meeting with the Pledge of Allegiance. Members Present: Mayor AI Rassier, Councilors Renee Symanietz, Dale Wick, Bob Loso, Steve Frank, City Administrator Judy Weyrens City Representatives Present: Finance Director Lori Bartlett, City Attorney Tom Jovanovich Others Present: Douglas Host, Jim Schuman, Margy Hughes, Mike McDonald Public Comments: Mike McDonald, 213 13"' Avenue SE, approached the Council on behalf of the St. Joseph Chamber of Commerce. He stated that, the Chamber was approached to donate towards the replacement of the City holiday lights. The lights were being replaced not only to update the decorations but utilize energy efficient light bulbs. McDonald stated that the St. Joseph Chamber has pledged $ 5,000 with annual payments of $ 1,000 per year. At this time McDonald presented the Council with a check in the amount of $ 1,000 for the 2009 contribution. Loso made a motion to accept the $1,000 donation from the St. Joseph Chamber of Commerce for the Christmas lights. The motion was seconded by Symanietz. Discussion: Frank questioned whether other groups made contributions for the conversion to LED lights. Weyrens stated the City has received donations from private sources as well as other service groups. The motion passed unanimously. Agenda: Loso made a motion to approve the agenda with the following changes, additions and deletions: Delete 4(d) Regional Gang Strike Police JPA -Loso asked that this be pulled until the Police Chief is available to answer questions. Move 4(b) Bills Payable - to be discussed prior to item 6 Delete 7 City Engineer Reports Add 10(b) Joint Meeting EDA The motion was seconded by Wick and passed unanimously. Consent Agenda: Symanietz made a motion to approve the consent agenda as follows: a. Minutes -Approve the Council minutes of April 16, 2009. b. Bills Payable -Moved for discussion. c. 2008 Memberships -Authorize the Administrator to notify the Coalition of Greater MN Cities, St. Cloud Chamber of Commerce, MN Mayors Assoc and MN Women in Government of withdrawal of membership. The motion was seconded by Wick and passed unanimously. Outdoor Liouor Permit - CSB. Saint Stock: Mayor Rassier opened the public hearing and stated tha purpose of the hearing is to consider an outdoor event for the College of St. Benedict. Weyrens stated that the College of St. Benedict is requesting a liquor license for St. Stock, which is a special alumni event that will be held on June 26, 2009. This will be the 3`~ year for the event. She advised the Council that notice was sent property owners within 350' of the event. Weyrens stated that last year the City did receive a noise complaint from a resident on Hill Street. The Police Chief has met with the event coordinator to discuss the stage setup to prevent a similar event from May 7, 2009 Page 2 of 6 happening again. Frank questioned the anticipated attendance for this year to which Weyrens stated she was uncertain. Frank made a motion to close the public hearing at 7:10 PM. The motion was seconded by Wick and passed unanimously. Loso made a motion to approve the outdoor event license for the College of St. Benedict for an event known as Saint Stock, to be held on June 26, 2009. The motion was seconded by Symanietz. Discussion: Rassier stated that based on the letter received from the City Attorney, the College of St. Benedict has until May 76 submit payment for the outstanding sewer invoices. Wick questioned when the annual liquor licenses are approved. Weyrens advised him that they will be on the agenda for approval at the in the next 30 days. She added that the proposed outdoor event would be under the current license as they expire June 30. Frank questioned the information discussed by Rassier to which Wick read a portion of the Attorney letter addressing outstanding invoices and issuing of licenses. Wick also clarified that tabling the action will not create a hardship as the Council meets again on the 21 S~ shortly after the deadline for payment. Wick made a motion to table the approval of the outdoor event until May 21, 2009. The motion was seconded by Rassier. Ayes: Rassier, Wick, Symanietz, Loso Nays: Frank Motion Carried 4:1:0 Bills Pavable: Frank stated that he was unaware of the fact that the St. Ben's invoices were not paid. Symanietz added that she was also unaware that the invoices were not paid. Frank further stated that the amount was never listed on the bills payable as unpaid. Bartlett clarified that the unpaid referred to on the bills payable listing does not refer to receivables, rather invoices that have not yet been paid. Weyrens stated that the Council has previously discussed the sewer issue and letters have been forwarded. Additionally, the largest portion of the outstanding balance is for 2008 which is billed in early 2009. Rassier concurred that the Council has discussed this matter at workshops and budget meetings. Frank stated that Council should receive the unpaid invoices. Weyrens stated that staff can certainly provide additional information, but the Council will need to determine the perimeter for the types they would like to see. For example, does it include all outstanding utility bills, or invoices for requests for service (engineering, legal) and what level of delinquency? Symanietz stated that she would like to see a quarterly report of all the outstanding invoices. Jim Schuman spoke on behalf of the College of St. Benedict and stated that, to date, they have not received a bill for the 2008 charges. Weyrens stated that the bill was presented to their attorney as part of their correspondence. The Attorney had indicated that he would be reviewing all bills. Frank stated that it is his opinion that invoices with large amounts should be presented to the Council. Loso questioned why there has been no action on this matter for such a long period of time. Rassier stated that staff has been working on this and from the information presented it can be seen that it is a complex situation. Wick made a motion to approve consent agenda item 4(b),(b) Bills Payable -Approve check numbers 041542-041604 and EFT numbers 000268-000272 and 000454. The motion was seconded by Symanietz and passed unanimously. Gang Strike Task Force: Loso made a motion to table (d) Regional Gang Strike Police JPA. The motion was seconded by Wick and passed unanimously. 2008 Audited Financial Report: Doug Host approached the Council representing Larson Allen to discuss the 2008 Audit. He stated that one of their primary responsibilities is to issue an opinion on the City's May 7, 2009 Page 3 of 6 Financial Statement. Their opinion was termed an unqualified opinion which means that the information is materially correct. They also analyzed the City's internal controls and gave some suggestions. They reviewed the City's accounting practices and policies. Host stated that they started some preliminary work after the first of the year and then came back in March to finish their work. The state reporting deadline is June 30 and they met that with a completion date of March 13. According to Host, there were a couple of audit adjustments and there were two small items addressed. This was the first year that they audited the City's financial statements and he felt it went very well. He stated that it went very smooth due to the fact that staff was prepared and ready for them when they arrived. They asked a lot of questions and staff was prepared to answer those questions. Host advised the Council of some of the material weaknesses that were found as well as some of the previously reported items that have been resolved with respect to the financial reporting. • Segregation of duties: He stated that this issue is reported as a weakness but the reason for the lack of segregation is the fact that the City does not have an unlimited amount of staff available to segregate the duties. The City has; however, implemented some compensating controls which are a step in the right direction based on the amount of staff available. • Prior Period Adjustments: This issue was resolved as there were no findings this year. • Preparation of Financial Statements: This issue was resolved this year. Although they did assist staff with some of the clerical functions, Bartlett did a thorough review of their report to make sure it was complete. • Audit Adjustments: Although this was reported as a significant deficiency, it was not raised to the level of material weakness. He stated that it is not likely to have an audit with zero adjustments, the City only had three. These were related to one accrual and one reclassification of the new water meters. Host stated that staff does a good job with classifications and coding. He then addressed some of the Legal Compliance testing that was done. In the past, there were some issues that have now been resolved. • Out of State Travel Policy: The City adopted an out of state travel policy that is in accordance with state statutes. • Collateral Assignment Agreement: Host stated that this year, everything was available. • Delegation of Authority for Paying Claims: This issue was resolved as a resolution was passed delegating authority to the Administrator and Finance Director. • Policy for Electronic Payment: The City adopted an electronic payment policy in accordance with state statutes. Frank stated that he is concerned about the recent loss of the Finance Technician. He questioned whether there is a way to resolve the issue with the segregation of duties without filling that position. Host stated that because that person was responsible for a lot of the duties, the vacancy will definitely have an impact on the audit as decreased segregation leads to increased risk. Host presented some graphs to help the Council analyze the current data with the past years. • General Fund: He stated that based on the past four years of activity, revenues have been very close to expenditures and have remained consistent. • General Fund -Fund and Cash Balance: The fund balance and cash balances have remained very close and that is typical. This did not create any red flags. • General Fund -Days of expenditures in fund balance: Host stated that over the past four years, the number of days of expenditures has remained very stable. The State Auditor recommends about six months. The City has approximately five to six months available, which is in the healthy range. • Governmental Fund -Revenue: Property taxes and special assessments account for the largest amount of governmental revenue. LGA is the third highest. Special assessments passed LGA due to the amount of activity in the City over the past few years. May 7, 2009 Page 4 of 6 • Governmental Fund -Expenditures: Debt service is about half of the total expenditures. These types of expenditures are functions of government. • Water Fund: Host stated that the operating income (loss) took a dip in 2008 and that is due to the reporting of expenses for reporting and supplies due to the water meters. In the past, there were some discussions as to whether or not those should be capitalized. He added that this is an example where one unique item can change everything. Sanitary Sewer Fund: According to Host, this fund has remained relatively consistent over the past few years. The operating income (loss) in 2008 in the amount of $400,000 is due to contract services. Bartlett stated that those include the design phase for the Wastewater Treatment Plant expansion and the rehabilitation of the interceptor line at the Sauk River. • Refuse Fund: In this fund, the revenues and expenditures remain very close. This fund is very stable. • Stormwater Fund: He advised the Council that there was a large jump in 2007 and that was due to the new school. Other than that, this fund has remained stable and consistent. Enterprise Fund Debt: They did a test of the City's debt payments and all payments have been made according to schedule. • Governmental Fund Debt: He added that all payments have been made for bond issues as well. Wick commented on the signature throughout the document. He questioned if it could be signed by an individual rather than a stamp. Host stated that that is the standard for their firm as the firm audited the financial statements. He suggested that they send an email prior to the audit being performed letting them know who will be working on the audit. Frank questioned whether questions should be directed to their firm or to staff. Weyrens advised the Council that any questions should be directed towards staff. Wick made a motion to accept the 2008 Audited Financial Report. The motion was seconded by Frank and passed unanimously. MAYOR REPORT - No Report SYMANIETZ COUNCIL REPORTS Park Board: Symanietz reported, on behalf of the Park Board, that they have voted to donate $500 to the St. Joseph Lions for tables. Weyrens clarified that the City will be purchasing the tables directly working with the Lions. She also added that they will be fixing around the bridge at Millstream Park where there was some recent water damage. WICK Planning Commission: Wick reported that the Planning Commission recently recommended approval of an amendment to the Sign Ordinance. That will be on the agenda for the next meeting. LOSO Fire Board: Loso stated that he attended the latest Fire Board meeting at which they discussed a possible grant to help fund the opticon lights along CR75. He advised the Council that two of the newest members of the Fire Department will be going through their initial training. He added that the City has received the donation from the College of St. Benedict for fire services. They have also received a training grant in the amount of $800 from the State and $500 from Stearns Electric for an infant thermometer. According to Loso, Fire Department will be applying fora $10,000 matching grant as well to purchase 20 new pagers. The Jaycees donated a new difibulator to the department as well. He also reported that they approved the purchase of 30 new safety vests as required by Federal Law. May 7, 2009 Page 5 of 6 FRANK Grant Opportunities: Frank stated that there are some seniors at SCSU that have been working on grants for small community programs. He advised the Council that there is money out there and there may be some opportunities far St. Joseph to take advantage of some of those funds. ADMINISTRATOR REPORTS Initiative Foundation: Weyrens stated that the City recently received a request from the Initiative Foundation for funding in the amount of $1,500. She stated that generally that request is received in November. Rassier stated that the Initiative Foundation has helped fund the Farmer's Market and Healthy Community Program in the past the City has to make choices as to where to best utilize budget funds. Therefore, Rassier made a motion to drop the funding to the Initiative Foundation for 2008/2009 with possible re-negotiation at a later time. The motion was seconded by Frank. Discussion: Wick expressed concern with suspending membership as they can help with Economic Development. The City is looking at different options for staffing and cutting organizations that can help promote or offer incentives may not be prudent. Rassier stated that there were some programs that were cut that he was not in support of cutting. Frank advised the Council that the City may need to re-hire someone to fill the finance technician position. Wick stated that by cutting all programs, the City is not leading. Currently the City is unsure of the proposed LGA for next year. Frank stated that they should be hearing about the LGA in the next few weeks. Weyrens suggested sending a letter letting them know that at this time the City cannot commit to a funding amount as the impact of LGA reduction will have an impact on the ability of the City to do so. Rassier amended the motion stating that the City will not be opting out at this time, but will need to wait to re-evaluate the request once Legislature determines the fate of Local Government Aid. Ayes: Rassier, Frank, Symanietr, Loso Nays: Wick Motion Carried 4:1:0 Joint Meeting EDA/City Council: Weyrens stated that the EDA would like to meet with the Council to discuss some financing for a potential commercial user. They would also like the Council to be present for the presentation on the results of the rental housing study and its impacts. The next EDA meeting is scheduled for May 27. The Council concurred to meet at 5:30 on May 27, 2009 pending availability of the EDA Members. Central MN Federal Credit Union: Weyrens advised the Council that the City has received the building plans and they will be moving forward with the project. S & H Litigation: Jovanovich approached the Council to discuss the S & H Litigation. Frank made a motion at 8:15PM to adopt resolution 2009-010, closing the meeting to discuss the status of negotiation and mediation with S 8 H Partnership/Pond View Ridge LLP. The motion was seconded by Symanietr and passed unanimously. The meeting was called back to order at 9:OOPM. Jovanovich stated that, on Monday, April 30, he, along with Wick, Rassier, Weyrens and Jim Thompson (League of MN Cities), negotiated a settlement with S & H Partnership and Pond View Ridge regarding the construction of apartment facilities in Graceview Estates 2. They were able to come to an agreement with S & H, contingent upon Council acceptance of the agreement. Jovanovich read the Mediated Settlement Agreement between the City of St. Joseph and S & H Partnership. May 7, 2009 Page 6 of 6 Loso made a motion to approve the Mediated Settlement Agreement between the City of St. Joseph and S 8 H Partnership. The motion was seconded by Wick. Discussion: Frank questioned whether the agreement will be posted on the website for the public to view. Weyrens advised Frank that it would be available after the meeting. Frank stated that the mediated agreement seems fair to both the City and S & H. Wick stated that the agreed upon orientation is better for the neighbors as the height is lower. Frank added that it will be a much smaller apartment building than what was originally proposed. Once this is approved, they will bring their plans back to both the Planning Commission and the Council for lighting, stormwater, etc. Ayes: Rassier, Wick, Frank, Loso Nays: Symanietz Motion Carried 4:1:0 Adiourn: Wick made a motion to adjourn at 9:10PM; seconded by Symanietz and passed unanimously. Judy Weyrens Administrator