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HomeMy WebLinkAbout[04a] Minutes - June 4 2009CiT~' QF RT. JUSti.PEI MEETING DATE: May 21, 2009 Council Agenda Item 4 a AGENDA ITEM: Minutes -Requested Action: Approve the Council minutes of June 4, 2009 SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION: BUDGET/FISCAL IMPACT: ATTACHMENTS: Minutes of June 4, 2009 REQUESTED COUNCIL ACTION: Approve the minutes of June 4, 2009 June 4, 2009 Page 1 of 7 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, June 4, 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 Citv Representatives Present: Finance Director Lori Bartlett, Police Chief Pete Jansky, Public Works Director Terry Thene, City Engineer Randy Sabart Others Present: S. Kara Hennes, T. Schuler, M. Woida, Jon Petter, Ann Overman Public Comments: Ann Overman approached the Council and stated that she is the controller for the College of St. Benedict. She read a letter regarding the current sewer billing issues that was prepared by the College and the Monastery. Rassier then stated that this issue is currently being disputed and added that the letter will be put in the file. Agenda: Loso made a motion to approve the agenda as presented; seconded by Wick and passed unanimously. Consent Agenda: Wick made a motion to approve the con agenda as follows with minor corrections to the minutes: a. Minutes -Approve the Council minutes of 27 009. b. Bills Payable -Approve check numbers 04 7682 and EFT numbers 000279-000283. c. Quarterly Gambling Report -Accept the 1s~ Q er Reports. The motion was seconded by Loso and passe n sly. Public Hearin - 2009 GO Ca ital Im ro a Bon Monte Eastvold, Bond Counsel approached the Council to discuss a refinancing opport ty. that when the City financed the Maintenance Facility in 2003, the project was funded t the DA by issuance of a Public Project Revenue Bond. These bonds do not require voter I rry a slightly higher interest rate. Statutory changes in bond regulations now allow Citi o issu O apital Improvement Bonds, which carry a slightly lower interest rate. Eastvold stated th ocess issue such bonds include a public hearing to consider the Capital Improvement Plan, which i e is the Public Works Facility. After the public hearing is closed and the City approves a resolu funding the maintenance facility, the City must wait 30 days before issuing the bonds. During the 30 days residents would have the opportunity to present the City with a petition requiring the project to be placed on the ballot for voter approval. The petition must include 5% of the eligible voters. Rassier opened the Public Hearing and with no one present wishing to comment, the hearing was closed. Frank stated that the current report says that the facility is in good condition and he assumes that it is. He questioned whether the City has had its buildings inspected. He has been made aware that the League of MN Cities offers safety checks of facilities and questioned if the City has utilized their services. Weyrens stated that the City has used this service for park facilities. The City contracts with a company called Safety Train who provides safety training and OSHA compliance. Part of the OSHA compliance is checking the facilities for safety. Weyrens assured Frank that the purpose of the statement is to state that the building is still in good shape. Frank continued to question whether there are any known flaws that may result in some hidden costs. Eastvold stated that with regard to bond rates, they have been decreasing since January. Based on current rates, the bond savings would be approximately $11,000. However, since the City cannot issue new debt on the facility until after the 30 day waiting period, the actual savings cannot be determined at this time. Since the debt could not be issued until August or September, Eastvold stated that he would June 4, 2009 Page 2 of 7 continue to monitor the rates and when the rates have an advantage to the City he would present a proposed refinancing. Wick suggested that the cover page indicate that the Capital Improvement Plan is strictly for the Maintenance Facility. He questioned Eastvold as to the balance of the current issue. Eastvold advised the Council that the balance, including principal and interest, is $648,000 between now and 2018. The reason for the refinancing would be to save on interest expenses and future tax levies. Eastvold advised the Council that the savings are net savings after issuance expenses. Frank made a motion to adopt resolution 2009-013 giving preliminary approval of the issuance of the GO CIP bonds and adopting the five-year CIP plan. The motion was seconded by Symanietz and passed unanimously. Debt Management Study: Eastvold provided the Council with the 2009 Debt Management Study which is an analysis of all City issued debt. The following is a summary of the Study: • 810M G.O. Water Revenue Refunding Bonds of 2002: Eastvold stated that this bond was issued to refund the Water Revenue Bonds of 1992 and 1996. He added that this bond is paid by water revenues. In his opinion, this bond is in good shape as it appears to have a positive cash flow each year. This bond is callable on 12/01/09, at which t' the City can prepay a part or refinance the bond to save on interest expenses. He stated that this may be a good refunding candidate as rates are declining. • 700M Public Project Revenue Bonds of 2003: T as a bo 'ssued through the EDA to finance the Public Works Facility. This bond is callabl /01 .East old stated that this may be a possible candidate to convert to a GO Bond. • 750M G.O. Improvement Refunding Bond of 20 his bond has a couple of years to pay off and is payable through special assessm to ies. • 815M G.O. Fire Hall Refunding Bonds of 3• and issue refunded the original issue. Eastvold stated that this bond is p th gh tax levies and fire service contract payments from the Townships. He sugge th the watch this fund balance as we may need to adjust the tax levy or township tr' • 590M G.O. Improvement B o 04: This bond was issued to finance the Northland Phase 8, 16~" Avenue and Park I t is is the final year and there will be a negative fund balance; however, the y has a ugh funds in the debt service fund to cover that. • 645M Public Project Re a Cr over Refunding Bonds, Series 2005-A: Eastvold advised the Council that last year there negative fund balance; however, moving forward there will be a positive cash balance. He a ed that this bond is not callable. • 1,655M G.O. Improvement Bonds of 2005, Series 8: This bond was issued to finance the Hill Street and Cloverdale projects. The bond is payable through special assessments and tax levies. It appears to have a nice fund balance and good cash flow. He is not anticipating any problems with this issue. • 3,100M G.O. Improvement Bonds of 2005, Series C: Eastvold stated that this bond issue financed the Northland Heights Improvements as well as the Transportation Corridor studies that are underway, but not yet completed. There are only two payments remaining and they are payable through special assessments and tax levies. In his opinion, this issue is proceeding well. • 4,595M G.O. Water Revenue Bonds of 2005, Series D: The proceeds from this issue financed the first portion of the Water Treatment Plant. It is payable through WAC revenues. It appears to be in good shape, but stated that will watch it as we go forward. Loso questioned why the payments are $0 until 2016. Eastvold advised Loso that the WTP was split into two bond issues and the principal payments for 2009-2016 are made on the 2nd bond issue. • 3,575M G.O. Water Revenue Bonds of 2006, Series A: The proceeds from this bond issue are for the 2nd phase of the Water Treatment Plant. This is payable through WAC revenues and trunk charges. This bond seems to be proceeding just fine. June 4, 2009 Page 3 of 7 • 250M G.O. Certificates of Indebtedness of 2006, Series B: Eastvold stated that this equipment certificate was used to finance equipment for the Police Department, technology and a front end loader. He stated that there are two payments remaining and it is payable though tax levies. • 2,375M G.O. Improvement Bonds of 2006, Series C: Eastvold advised the Council that the proceeds from this bond issue financed some street and utility improvements. It is payable through utility revenues, special assessments and tax levies. • 2,875M G.O. Improvement Bonds of 2007: This bond financed the Jade Road, 8"' Avenue and East Side Improvements. It is payable through stormwater revenues, special assessments and tax levies. According to Eastvold, there will be a positive cash balance over time. The anticipated savings would be put into the debt service fund. He added that there may be a possibility of reducing some of the tax levies related to this bond issue. • 980M G.O. Improvement Refunding Bonds of 2007: This bond financed the refunding of the 1998 and 1999 Improvement Bonds. It is payable through sewer trunk charges, special assessments and tax levies. He added that remaining funds from the Stearns Coop Electric Loan will be transferred to this fund. Frank questioned that relationship. Weyrens stated that the City was the first to participate in the 1999 Rural Loan Grant Program. • 290M G.O. Certificates of Indebtedness of 2008, Series A: This certificate was used to purchase technology equipment, SUV and equipment for the Police Department as well as a Salt & Sand Shed. • 455M G.O. Sewer Revenue Crossover Refunding Bon f 2009-A/2,555M G.O. Improvement Crossover Refunding Bonds of 2009-A: Eastvold sta t these two bonds are part of one bond issue. With the crossover refunding, the City ma a final payment on the old issue and then the new issue will kick in. He stated th a sewer k fee could remain at $47,200 over the life of the bond and still have a oositi cast low. Eastvold reminded the Council that any excess fi purpose. He also provided the Council with a sur that tax levies will decline over time which allows the City's bond rating was upgraded to an " the next 10 years. Weyrens provided th oun rates and the scheduled 2010 tax capa r relate to the City's overall budget. ~,~ ~m and issue can be used for any general fund he outstanding bond issues. It appears to add tax levies, if necessary. Recently, of the City's outstanding debt will be paid off in comparison of the actual 2009 debt tax capacity ~ovided that as a way to show how the bonds REPORTS Operating/Residual Transfers: Fina ctor Lori Bartlett presented the Council with a request to transfer operating/residual between th IF Funds and the General Fund. Upon researching the TIF funds it was determined that the General Fund incurred some of the costs to establish the TIF Funds. While it is not uncommon for this to occur and transfer back to the General Fund should have occurred, which did not. Based on review of the expenditures, the General Fund paid for the financial advisor fee for TIF 1-3 and also paid for some engineering and legal fees for TIF 2-1. The requested transfer to the General Fund is $ 35,718.21. Loso questioned why the auditor never caught that the allocation errors. Bartlett stated that the auditor looks at transactions and, at that time, they would have been coded to the general fund. Loso then questioned the difference between a state audit and a general audit. Bartlett replied that it is the same process. Wick stated that, at the EDA meeting, the TIF report showed a $6,000 balance with all administrative costs deducted. Bartlett stated that that brings the balance to $0. Frank made a motion to approve the 2009 operating/residual transfers as presented. The motion was seconded by Loso and passed unanimously. GASB 45 Reguirements -Actuarial Analysis: Bartlett reported that GASB now requires Cities to account for OPEB (other post employment benefits). This will help determine what they provide retirees for benefits. Retirees can elect to stay on the City's health and dental insurance until they reach 65. If the retirees are grouped with the current employees, then the implicit rate factor exists as a retiree could June 4, 2009 Page 4 of 7 increase or decrease our rates. To help determine the liability of the retirees, the League of MN Cities has partnered with Van Iwaarden Associates to complete such a study at a discounted rate. Bartlett requested authorization to hire Van Iwaarden Associates to prepare the OPEB actuarial study at a cost of $ 1,500.00. Frank made a motion to accept the quote of $1,500 from Van Iwaarden Associates to complete a GASB 45 OPEB actuarial study as presented. The motion was seconded by Symanietz and passed unanimously. TIF 1-3 Decertification: Bartlett advised the Council that the EDA is recommending that the Council approve the decertification of TIF 1-3 since the tax increments are finished. TIF 1-3 was established in 1998 fora 20,000 square foot expansion to Borgert Products (SKN). The Tax Increments began in May 2000 and ended in December 2008 with the actual assistance provided $ 174,599.47. Wick made a motion to adopt resolution 2009-014 approving the decertification of TIF 1-3 - Borgert Products, effective June 4, 2009. The motion was seconded by Symanietz and passed unanimously. CITY ENGINEER REPORTS APO TAC Uodate: Sabart stated that the APO Staff solicited up s from the member agencies regarding projects in process. St. Joseph has two projects tha currently in process, the North Corridor and Field Street. He stated that he has solicited updates fro 0 onsultants. With respect to the North Corridor Project, Sabart advised the Council that b the Sco Document and the EAW have been submitted to MnDOT and FHWA. They have not a review d as there is pressure to push through projects that are part of the stimulus bill. He a t St. Joseph's projects are on a holding pattern and they are unsure when the comments will be r 'ved. Sabart added that the EAW for the Field Street Study has been sent to the State His se 'on Office and Cultural Resource Unit. They are asking the City to enter into a Programm 'c ent to preserve discussions from today. That agreement has not yet been prepared ord o Sabart, WSB cannot complete the EAW until the 4(f) process is complete. One of the ec in S rns County is to extend Opportunity Drive from St. August to St. Cloud. Metropolitan Transit: Frank stated th st APO meeting, there was some discussion about delaying metropolitan transit to . Josep rin ng people into St. Cloud to connect with Northstar. Frank stated that he has agreed to be of a d ussion with CSB and SJU to determine if there is an interest to extend the transit. Weyrens sta h he has had a discussion with Sue Palmer at CSB and she would be forwarding names of repres tives from each institution to be part of the discussion. MAYOR REPORTS APO Executive Board - Rassier reported the Executive Board is at the same place as the TAC. St. Joseph's projects are still on the list, but the ones that are most beneficial to the area at the top of the list. They are doing their best to get St. Joseph's projects to move forward. SYMANIETZ - No Report WICK - No Report LOSO COUNCIL REPORTS North Country Trailer Sales: Loso stated that he has received several calls regarding North County Trailer Sales and the lack of compliance for the term of the Special Use Permit issued in March. Weyrens stated that the Building Inspector did meet with the property owner and the property will be in compliance by June 5, 2009. Before the fence could be constructed the property owner needed to hire a surveyor to verify the property line. June 4, 2009 Page 5 of 7 Loso added that there is some concern about the loud noises from the motorcycles. Rassier assured the Council that staff is working on this. Frank also added that they are repairing not just selling vehicles, etc. It was stated that they will need to do some repairs to make sure that the vehicles they sell are appropriate for sale. Frank stated that the ordinance mentioned motorized vehicles, which has a broad definition, as it could be much more. Jansky assured the Council that he will go and speak with the property owners to remind them of the noise ordinance. They will also address the parking issue as they should be parking on the bituminous surface. Weyrens stated that she will have the building inspector verify that the security system is operational. FRANK Ordinance Changes: Frank stated that he had been working with Weyrens regarding possible changes to the rental ordinances. In the event that there is court costs involved, they should be required to reimburse the City. ADMINISTRATOR REPORTS Signal Equipment: At the last meeting, staff was asked to provide financing information regarding the installation of opticoms at the intersections of CR 75 and 4th Ave and CR 75 and 20th Avenue. Weyrens stated that Stearns County Engineer Jodi Teich, esti d the City portion of the project to be $ 6,000. The Fire Fund will fund $ 3,000 and the City can fun a itional $ 3,000 with the residual transfers approved earlier in this meeting. With regard to equip in the vehicles, the Fire Fighters will fund their equipment with fundraising proceeds an P e Dep rtment can use forfeited funds to equip their vehicles. She stated that the forfeited fund glance of $7,000 and can only be used for police equipment. Frank made a motion to authorize the Adminis to tify the Stearns County Engineer that the City will contribute up to $6,000 to equip se ores listed above with opticom equipment and authorize the Police Chief to equi a hic using forfeited vehicle funds. The motion was seconded by Loso and passed unan' ou Update on CSB Billin4: Weyrens r t ere is still $108,000 outstanding from the College of St. Benedict. The Council should h recei a py of a draft letter in response to their 12 point proposal for future billings. At this times 's seek input before forwarding the City response. Rassier stated that it should be sent. Frank suggested that Weyrens speak with the area Administrators to see how they would handle this situation. Weyrens advised the Council that she spoke with the area Cities and none of them have any contract users. She also spoke with representatives from St. Peter and Northfield who have similar users. They bill the same way that St. Cloud State is billed, on actual usage. They do not give the College the benefit of the winter quarter reading. Wick suggested that those findings be added to the letter. It was also recommended that she add that each building is to be metered to determine usage. As CSB has an outstanding invoice with the City, Wick questioned the process to conduct a public hearing to consider withholding their liquor license. Weyrens clarified that the Liquor Licenses are in the renewal process and the Council wilt be considering such at their June 18 meeting. CSB holds a liquor license for the special events held on campus. The current Liquor Ordinance includes a provision whereby the City can deny a license if there are outstanding fees due the City. In this case the sewer bill is an outstanding fee. The public hearing would give the property owner and other members of the community the opportunity to comment on whether or not the license should be issued. Loso questioned Weyrens as to whether or not the current numbers are accurate. Weyrens replied that the numbers for 2005 and 2006 were computed incorrectly, but the current numbers are accurate. According to Frank, this is petty to hold up the liquor license for this as they are two separate issues. Wick advised Frank that this is for next year's license and the Ordinance states that the City cannot legally June 4, 2009 Page 6 of 7 grant a license if there are outstanding fees. Weyrens added that this same process has been done in the past to other liquor license holders. Loso made a motion to conduct a public hearing on June 18, 2009 to consider issuance of the 200912010 Liquor License for the College of St. Benedict. The motion was seconded by Symanietz and passed unanimously. Ordinance Amendment -Refuse: Weyrens stated that the Council has discussed in the past the problems associated with refuse containers sitting at the curb for extended periods of time. This has become a particular problem at some rental properties which leads to debris flying through the neighborhoods. To help address this concern an amendment to the Refuse Ordinance has been prepared requiring all refuse containers to be removed from the curb within twenty four hours after refuse removal. The amendment further prohibits placement of refuse longer than twenty for hours prior to pickup. Loso made a motion to authorize the Mayor and Administrator to execute the Amendment to Ordinance 107, causing the same to be published and effective upon publication. The motion was seconded by Wick. Discussion: Frank stated that he recently went to Seattl d before he left he arranged for his neighbor to bring the can up from the curb; however, tit out before he left. He questioned the fees for this type of violation. Weyrens stated th a finance Matrix would be updated and the find would be $50 for the first day, $100 fort econd, a maximum of $300. According to Loso, there are specific properties where thi a p blem. cording to Rassier, this Ordinance is an Ordinance to babysit people. stated that if an issue arises at a rental property, the landlord will be notified. There have n numerous complaints and this is the first step to try and alleviate the problem. We to tit will be in the newsletter as well as the local paper to notify residents of the amen e Ayes: Wick, Symanietz, Frank, so Nays: Rassier otion passed 4:1:0 Maintenance Issues: Weyrens re bridge has been washed out at Millstream Park due to high water that eroded the ban ublic ks hector Terry Thene added that they are working with Sabart and the DNR to acquire rmit to pair the bridge. The estimated repair cost is $6,000. Loso questioned which bridge was affec o ich Thene stated it is the one that the groomer crosses. He also advised the Council that he has acted the snojoes regarding the repair. Weyrens stated that it is possible that the League may allow the City to schedule the bridge and pay back premiums. The worst case scenario is that it will cost $6,000 for the repair. Loso questioned whether the pond at Millstream needs to be dredged as in the past. Thene stated it does and the estimated cost is $12,000. Due to the current financial situation, this project is on a hold. Weyrens also stated that there is some crack sealing that needs to be done. Thene advised the Council that he is working with Sabart on the 2008/2009 pavement management plan. They will continue their discussion as there is approximately $69,000 worth of sealing to be completed; however, there is only $44,000 budgeted. They identified streets in 2008 and 2009 and they are working to keep up with that plan. In a normal year, the City would do both crack sealing and seal coating; however, he stated that they have decided to scale back to only crack sealing. Thene stated that they will continue to work with staff on financing these projects. Sabart clarified that the $69,000 does not include seal coating. IntergOVernmental Meetin4: Weyrens advised the Council that the Intergovernmental meeting will be held in St. Cloud on the 5 Tuesday in June. Coborn's Tax Abatement Project: Weyrens stated that their seems to be considerable confusion on the proposed Coborn's Tax Abatement request. First, the City is not waiving WAC/SAC fees, rather they are June 4, 2009 Page 7 of 7 being delayed for two years. She stated that this was done for the Stonehouse as well as the President's Residence. She also clarified that residents will not be charged more taxes to make up for the $300,000 tax abatement. In 20011, the City will begin receiving full taxes for both the Credit Union and the Centra Care Site in the same year that Coborn's will receive the first abatement. The abatement is in the form of a refund of property taxes only after they pay the taxes. This is not uncommon for Cities to offer this assistance. This is a good opportunity for St. Joseph as it will extend the trade area bringing more commerce to St. Joseph. Ad~iourn: Wick made a motion to adjourn at 8:25 PM; seconded by Symanietr and passed unanimously. Judy Weyrens Administrator ~c~ 0