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HomeMy WebLinkAbout[04a] Minutest'['1'1' Q~? ~T. J4YSF 1'H Council Agenda Item 4a MEETING DATE: July 16, 2009 AGENDA ITEM: Minutes -Requested Action: Approve the minutes of May 27, June 15 and 18, 2009. SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION: forwarded separately by email. BUDGET/FISCAL IMPACT: None The minutes of May 27 (Joint City Council/EDA) will be None ATTACHMENTS: June 15, 2009 (Joint City Council/EDA) June 18, 2009 REQUESTED COUNCIL ACTION: Approve the minutes of May 27, June 15 and 18, 2009. June 15, 2009 Page 1 of 6 Pursuant to due call and notice thereof, the City Council and the Economic Development Authority met in special session on Monday, June 15, 2009 at 7:00 in the St. Joseph City Hall, opening the meeting with the Pledge of Allegiance. City Council Members Present: Mayor AI Rassier, Councilors Renee Symanietz, Dale Wick, Bob Loso, Steve Frank, City Administrator Judy Weyrens EDA Members Present: Chair Dale Wick. Commissioners AI Rassier, Tom Skahen, Ken Jacobson City Representatives Present: Finance Director Lori Bartlett, EDA Consultant Cynthia Smith-Strack, Tax Abatement Consultant Traci Ryan. Others Present: Brad Dullinger, Nelda Dehn, Thomasette Schuller, Jennifer Steinkamp, Anne & Jesse Johnson, Mike McDonald, Mike Wahlin, Curt Tillotson, Chas Rising, Greg Kacures, Kathy Lyon, Scott & Marlys Thompson, Traci Ryan, Chuck Fredricks, Mike Deutz, Paul Rowe, Bill Arndt Public Hearing -Coborns Tax Abatement: Mayor Rassier called the hearing to order and stated the purpose of the hearing is to consider a request for Tax Abatement to allow for the construction of a 36,000 square foot super store adjacent to CR 75. The request has been submitted by Coborns. Cynthia Smith-Strack, EDA Consultant, approached the Council and EDA to give a brief overview of the proposed project and the request for tax abatement. Strack stated that Coborn's has submitted a request for tax abatement in the amount of $ 300,000 to construct a 35,000 square foot retail superstore. The proposed development will create 22 new full-time jobs meeting or exceeding the wage requirements stated in the St. Joseph Business subsidy policy. Strack clarified that the developer is requesting Tax Abatement as they do not meet the requirements for Tax Increment Financing (TIF). TIF is used for industrial uses or redevelopment. Tax Abatement and TIF both utilize gap financing through apay-as- you-go tax mechanism. TIF requires participation from the County and School District, whereas, Tax Abatement is voluntary. Tax abatement provides a refund of the property taxes for a specified period of time or for a specific periods of time. The amount of abatement is related to the demonstrated need. The City Council and EDA have previously approved the use of Tax Abatement, concurring that the project would not move forward with the public assistance. The City's general tax abatement policy is as follows: "The City of St. Joseph and the EDA shall consider tax abatement for projects that serve to accomplish the City's goals for housing and economic development as they may change over time. " The general tax abatement policy was approved by the City Council and EDA after the EDA was formed in 2001. The policy was then modified in 2002. Strack stated that comments have been received questioning why Coborn's needs tax abatement or public assistance. Strack stated that in reviewing the project financial statement the project does not cash flow. The abatement requested is equal to 10% of the project cost. Strack stated that public financing is typically controversial as the general public has an opinion that business should pay for itself. The City and EDA are committed to increasing the tax base in St. Joseph and if the City does not offer incentives development will not occur. Once the project is completed, there will be an increased tax capacity resulting in a larger pool from which taxes are derived. This will lead to a more diversified tax base. Strack then stated that the proposed development will have a positive impact on retail within the City of St. Joseph based on the following: • Increase retail destination drawing power • Increase in retail traffic in CSAH 75 area June 15, 2009 Page 2 of 6 • Capture workers heading home that reside West, Northwest, and Southwest of St. Joseph • Keep payroll dollars in the community • Shrink retail leakage problem • National shift in economic model, away from production and manufacturing toward services, including retail. Along with the retail benefits, she also stated some of the public benefits that would be achieved if the abatement request were approved. There would be an increase in the number and diversity of quality jobs that are available locally, as Coborn's intends to create approximately 25 full-time positions and 50- 100 part-time positions, adding approximately $982,176 payroll dollars to the community annually. Based on the 2007 McComb Group study, "the retail trade area would increase by 140%",,resulting in increased retail activity. The increased tax base would result in an annual increase in City Taxes of approximately $25-$30,000 as well as increased revenues for the County and the School District. Strack stated that, previously, the Council and EDA met to review Coborn's preliminary tax abatement application. The purpose of the preliminary app-ication is to determine whether or not the project would qualify for abatement under the City's policy. By authorizing the final application and accepting the application fee in the amount of $7,500, as well as calling for the public hearing, the EDA recommended and the Council accepted the project as being conceptually eligible for abatement. She re-stated that the application requested tax abatement in the amount of $300,000 for a term of 10 years. After an analysis by an abatement specialist, Traci Ryan, it was determined the 10 year term is not sufficient to assist with the financial gap. Strack provided the Council and EDA members with four optional terms: 11 year, 9 year, 7 year and 6 year terms. Strack added that the shorter term increases the Net Present Value for the developer. Traci Ryan, David Drown Associates, approached Council and EDA to discuss the request. She stated that based on the projected property taxes, the property would not generate enough revenue in 10 years to provide $300,000 of assistance. Rather, eleven (11) years would be needed. If both the value of the improved land and building are combined, the property may generate enough revenue in 9 years. Ryan stated that St. Joseph is unique in that this piece of property is part of a PUD consisting of three businesses. She suggested utilizing the additional building revenue from all three parcels to shorten the term for the tax abatement. The City would still be able to retain all of the taxes for the land. The land values for these three properties would amount to approximately $23,000 in property taxes annually. The estimated amount of property taxes generated by the buildings is approximately $56,000 annually. After the $50,000 abatement payment, there is still $6,000 remaining. Ryan added that if the property taxes received are less than the payment amount, they would not be liable for that payment. The proposed plan would be a 6 year term not to exceed 10 years or $300,000. Ryan advised the Councilors and the EDA members that, by law, a public hearing is required for tax abatement. A resolution must be passed specifying the length of the terms, the amount and the parcels included. The developer will be required to execute a Tax Abatement Agreement which will identify the terms of the assistance. While it is not uncommon for the Abatement Agreements to be transferable, Ryan recommends the City reserve the right to approve the transfer. By approving the transfer, if such occurs, the can assure that assistance is needed by requiring the new owner to provide evidence that assistance is needed. With respect to job creation, Ryan stated that they are planning to add 25 full-time positions, but they are only required to create 22 positions. The Abatement Agreement will require the maintenance of the 22 positions and the developer will be required to submit an annual report verifying compliance with the agreement. In addition to the 22 full time positions, it is anticipated that 50 part time jobs will be added. Frank commented that the new Superstore will also collect the additional'/z percent sales tax on eligible items which will also be a benefit to the City. Based on the 2004 ballot question, those funds will be used for transportation, parks and a community center. Frank questioned that anticipated additional sales tax revenue to which Weyrens stated it is hard to determine that actual increase as it is part of the regional sales tax that is pooled. St. Joseph actually receives more than $ 1.00 for each $ 1.00 collected. June 15, 2009 Page 3 of 6 Mike Wahlin approached the Councilors and Commissioners on behalf of Coborns. He stated that he is the Director of Construction and Maintenance. He was accompanied by Curt Tillotson (CFO), Mark Zellman (accounting staff) as well as the architect/builder, Rice Building Systems. Coborn's is requesting tax abatement in the amount of $300,000. He added that tax abatement is a fairly common tool and it is used by many other cities to help spur growth. The recent study done by the McComb Group stated that a grocery store would help expand the trade area by 140%. Based on that, he added that other businesses will benefit from the construction of a grocery store as well. Wahlin stated that Coborn's is looking at making a $ 6,000,000 investment in the community by constructing a 36,000 square foot superstore. The Coborn's board approved the development provided tax abatement is received over a six (6) year period. If the City decides to change those terms, they would need to review it again. Mike McDonald, 213 13f"Avenue SE, approached the members of the Council and EDA to state his opposition to the abatement as it currently stands. The applicant originally asked fora 10 year period. He questioned why it dropped to 6 years when the abatement specialist suggested 11 years. The cover letter provided stated that the funds would come from taxes paid by the company. In his opinion, the Credit Union, Clinic and Centra Care have nothing to do with each other. The original application asked for 10 years as well as the delay of WAC/SAC fess until 2 years after completion. McDonald questioned whether the completed superstore will be a grocery store or will it have the car wash, etc. With respect to the WAC/SAC fees, he suggested that they either pay the 2007 rate and pay it with their building permit or wait 2 years and pay it at the new rate. Based on the numbers, he is unsure why the City doesn't approve the 11 years rather than the 6. In his opinion, 1 additional year will not be a big deal to Coborns. He stated that the City should look at what it can save over an 11 year term. He also questioned why we want to give them money any sooner than what they requested. The City is currently worried about how to pay for various street improvement projects and LGA is not going to get better in the next few years. He stated that it would be better for the City to pay off some of its existing debt rather than giving Coborns money sooner as they do not owe interest to Coborns. He concluded by stating that he is against the terms, not the tax abatement itself. Brad Dullinger, 1224 Cary Ct, spoke in opposition to the proposed tax abatement. He stated that to have a superstore 6 blocks away, would be convenient. He grew up in St. Stephen and knows this community very well. He questioned where the additional 125 jobs will come from and then stated that they will come from existing businesses in the area cities. He stated that he assumes that the superstore will have a floral, gas and liquor area and there are 9 local businesses that would be affected by that. He questioned whether it is fair for them to eliminate competition as well as get a tax break. He stated that he is looking at this from the perspective of a citizen that purchases items from those local businesses. He added that some of the affected businesses are located in downtown St. Joseph and questioned how the downtown will grow if the businesses are negatively affected. He asked the City to be careful as these local businesses already made the investment in our community. According to Dullinger, if they are unable to build it and make financial sense out of it, then now is not the time. They already have stores 3.5 miles away. If the closest grocery store was 35 miles away, he feels it would be a different circumstance. In conclusion, he asked the City representatives to be considerate of those who have served the community. Chuck Fredricks spoke on behalf of the Central Minnesota Federal Credit Union. He stated that they are putting up a nice, new building because of the new clinic and the future Coborns superstore. They are supportive of the Coborns development. He stated that the Credit Union also owns 4.9 acres of land across the road that they plan to sell. They have a potential developer who may want to purchase that land. In his opinion, the future Coborns store will bring more business to St. Joseph which will help the entire community. Others say that this new store will hurt local businesses and he is not sure that it will. Scott Thompson, 317 12~"Avenue SE, spoke in favor of the abatement request and the proposed development. He began by stating that this is a "no brainer" and if Coborns wants $500,000 over 5 years, the City should give it to them. He questioned how many other small cities get this type of opportunity? According to Thompson, why would people drive 6 miles by car when they can go 6 blocks by bike to do their shopping? Currently, residents coming through St. Joseph from Albany, Rockville, Cold Spring and June 15, 2009 Page 4 of 6 other area cities are not going to stop to shop for groceries or have pizza. In his opinion, the City should give them what they want. Mike Deutz spoke in opposition to the proposed abatement request. As a local business owner, he stated that he is disappointed in the lack of common judgment and lack of intelligence. He has been a member of the St. Joseph Community longer than many have been on the City boards. According to Deutz, there is no reason to approve an abatement request for a company that gives away millions of dollars each year. In the past, he has served on the EDA and they fought to grow this town and bring more business to St. Joseph. Their main focus was; however, not on the Hwy 75 business district. He is opposed to the abatement request and stated that in his opinion this company does not need the help. There are other businesses such as floral shops, liquor stores, the Meat Market and the local grocery store that will be affected by the proposed development. He added that when Casey's moved to St. Joseph, they did not request any TIF or Tax Abatement. He concluded by stating that they should pay their way like everyone else and he feels that this is wrong. Paul Rowe, St. Joseph Liquor Shoppe, stated that he agrees with Mr. Deutz and that a company that makes $545 million annually or $1.3 million daily, does not need help. He feels that they should pay taxes like every other business owner in town as this is going to have an effect on the local businesses. Many other business owners are struggling to pay their taxes and mortgages. He stated that he has been a business owner in St. Joseph for 20 months and his taxes have increased 57%. His expenses keep rising. Although a Coborns Superstore will create jobs in the community, it will also create job loss for the local businesses. Bill Arndt spoke on behalf of the Northland Plaza. He stated that this is not all roses. Having a Coborns is a good thing, as it shows that we are making progress; however, he feels that they should pay for it on their own. If the abatement is approved, he stated that, for 11 years, they will use City services such as police, fire, etc. Arndt concluded by stating that they can make it work without Tax Abatement. Greg Kacures, Floral Arts, also addressed the Councilors and Commissioners as a local business owner opposed to the request. He stated that their business was the first business on that side of town and they have been in business for 41 years. He suggested that the City give the smaller businesses a break. Kacures stated that his business will be greatly affected and, at this time, they are not sure what they will do. Loso made a motion to close the Public Hearing at 8:00 PM. The motion was seconded by Symanietz and passed unanimously. Rassier opened the meeting for discussion by the Council and EDA. Loso suggested that they take a 10- minute break to which Rassier said was not needed. Skahen stated that all of the comments made by the public have merit. He added that change is hard, but he believes that the construction of a Coborns in St. Joseph will improve the City. Jacobson added that if a company were to come to the City and state that they were going to create 100 new jobs in a year, "$300,000 wouldn't scratch the surface". Rassier stated the he and Council member Wick will be discussing the request from both a Council level and an EDA level. According to Rassier, Coborns will create jobs within the City. By using Tax Abatement, the City is taking money that is not currently there to pay for it. He supports the six (6) year term for the abatement as the sooner the City receives the full benefit of the property; the better it is for all the tax payers. Loso stated that he is in favor of the development as he would like to see a Coborns here; however, he is not in favor of the 6 year payback. He would rather see the term be over 11 years instead as there are other revenue shortfalls that the City has to deal with. He added that the Council will begin looking at the 2010 budget and there will be less revenues coming in meaning less money for other things. He then stated that the Council is already struggling with financial issues such as fixing the bridge at Millstream June 15, 2009 Page 5 of 6 and taking care of City Streets. In short, he stated that the 11 year term should be used rather than the 6 year term. Frank posed some questions to the EDA members regarding the request. Assume that this is approved; he questioned the impact of the terms and the WAC/SAC. Jacobson stated that he spoke with some of the local business owners and there is some opposition, but not too much. He added that Losos have one full-time employee and 10 part-time employees. If the Coborns is not built in St. Joseph, it will be built in one of the neighboring communities. Dick Loso stated that he will be the last Loso to run the store. Jacobson stated that there is a mixed impact from the local people, but he concluded by stating that some changes will occur no matter what. Wick stated that based on the McComb Study there will be a 140% increase in traffic through St. Joseph. This increased traffic can only help the existing businesses. Stated that will reviewing statistics on the League of Minnesota Cities website, he noted that St. Joseph is ranked 32 out of 49 for utilization of TIF. This statistic takes into account Cities with populations between 5 and 10,000 and their capability to use TIF. He stated that business is drawn in by higher populations and the Coborn's development is an opportunity for St. Joseph with a minimal investment. Frank questioned why TIF is not being used instead. Wick replied that it does not meet the criteria for TIF. Skahen questioned the terms and whether or not Coborns approved the 6 years. He added that there are some drawbacks to having a Coborns in St. Joseph such as keeping the small town atmosphere, but we need to continue to grow. This is a tremendous opportunity for the City and he added that the City will still make money and the bottom line will get better every year. If this is approved, Frank questioned when they will be in to apply for a building permit. He was advised that it is anticipated to be issued in July. Wick questioned the WAC/SAC fees. Weyrens advised the Council that they have already been calculated and the schedule will be attached to the Tax Abatement Agreement before them. The Agreement before them includes the provision that the collection of the fees will be delayed for two years. Skahen made a motion to recommend Council approval of the tax abatement request for $300,000 over a 6 year term. The motion was seconded by Jacobson and passed unanimously by those present. Symanietz spoke regarding the proposed Coborns development and stated that the increased number of jobs will mean more people living in the area, working here and more children attending our schools. In her opinion, people will continue to go to the local businesses. She stated that this is a positive move for St. Joseph to have a business come in and create jobs. Wick made a motion to accept the recommendation of the EDA to approve the tax abatement request for $300,000 over a 6 year term and approve the following: • Approve Resolution 2009-015 Authorizing Tax Abatement on property within the City of St. Joseph for the purpose of reimbursing some costs associated with the property. o Correction 2(b): "commencing in 2011 and continuing through 2016". o Include an exhibit of the parcels • Authorize the Mayor and Administrator to execute the Abatement Agreement, as presented, between the City of St. Joseph and Coborns with minor changes as noted. The motion was seconded by Symanietz. Discussion: Frank questioned the following: • City Services: He questioned the cost for services such as sewer, water, police and fire as there will be some increases. Weyrens advised Frank that utilities are already stubbed into the property. They do not anticipate a large amount of water and sewer usage. She added that generally a grocery store does not have a high demand for services. • Pharmacy: Frank stated that the local pharmacy is currently located in the Centra Care facility, but will eventually become Coborns Pharmacy. • Monopoly: He stated that they may want to build their store in and identity in St. Joseph prior to the building of the Super Wal-Mart/Sam's Club in Sartell. June 15, 2009 Page 6 of 6 Before joining St. Cloud State as a professor, he was on the Board for St. Cloud. They looked at using TIF for the McDonald's on Division. When looking at the realities of today, it is important to increase the tax base to take the pressure away from property taxes. Weyrens added that the City has used TIF in the past for Borgert, Vic West and the Millstream Shops and Lofts. Frank stated that if anyone else were to come in with a similar request, the City would be willing to work with them. Currently, the City is not sure of the cuts to LGA. With respect to the building, he would like to see them use some LED lighting in the parking lot. Ayes: Rassier, Wick, Symanietz, Frank Nays: Loso The motion passed 4:1:0. Adiourn: Symanietz made a motion to adjourn at 8:25; seconded by Wick and passed unanimously. Judy Weyrens Administrator June 18, 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, June 18, 2009 at 7:00 PM in the City 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, Police Chief Pete Jansky, Public Works Director Terry Thene, City Engineer Randy Sabart Others Present: Sr. Kara Hennes, Bob & Ellen Wahlstrom, Sue Palmer Public Comments: No one present wished to speak. A ends: Symanietz made a motion to approve the agenda with the following addition: Add 8b Seal Coat/Crack Seal The motion was seconded by Wick. Discussion: Frank questioned the bills payable with respect to bills for weed spraying as the City spent thousands of dollars on weed spraying to an outside company. Thene stated that the City used an outside company to do this work as it requires certain certifications to handle and spray the chemicals. Frank also questioned whether or not the City could consider not spraying as much to which Thene stated that staff must obey the same ordinances for noxious weeds as residents. Frank agreed that the City cannot ask property owners to control their weeds if the City does not do the same. The motion passed unanimously. Consent Agenda: Frank made a motion to approve the consent agenda as follows: a. Minutes -Approve the minutes of June 4, 2009. b. Bills Payable -Approve check numbers 041684-041737 and EFT numbers 000284- 000288, 000457-000459. c. Gambling Permit -Accept the Gambling Application of the St. Joseph Lions for an event to be held on September 12, 2009 at the St. Joseph Meat Market. d. Acceptance of Gifts -Accept the donations and their purposes as presented. The motion was seconded by Wick and passed unanimously. Public Hearing, MS4 Storm Water Permit: Weyrens stated that the purpose of the hearing is to review its Storm Water Pollution Prevention Program (SWPPP) for 2008. The Public Meeting will comply with the City's Phase II Storm Water Permit and be held at the City Hall in conjunction with the regular City Council Meeting. City Staff will make a short presentation on the past year's accomplishments. Public Works Director Terry Thene reported that one of the most important items is education. He added that the City is involved with the Central Minnesota Water Education Alliance. This group is very active and by use of billboards, City Packets, Websites, etc, the City has educated approximately 152,400 people over the past year alone. The City sweeps the City Streets to sweep up the sand prior to it entering the storm sewers. Thene added that the City is also very active in pond burning as well as removing garbage and brush from those areas. The City has been working with SEH to refine our scheduled Storm Water Pond Maintenance Schedule. Thene also stated that the City sprays for noxious weeds in those areas as well. Rassier opened the Public Hearing and there was no one present wishing to speak. June 18, 2009 Page 2 of 6 Symanietz made a motion to close the Public Hearing; seconded by Loso and passed unanimously. Frank questioned Thene as to what else the City would do if there were more funds available. Thene advised the Council that this is an unfunded mandate and the City has no choice as to whether or not they want to follow the plan. The City is required to document everything. Sabart stated that the permit requires a certain frequency for activities. He added that the City could perform those activities more frequently or do more public outreach if there were additional funds available. Loso made a motion to authorize submission of the 2008 MS4 Storm Water Report, meeting the reporting criteria. The motion was seconded by Frank and passed unanimously. Treasurer's Report: Bartlett stated that the May Report is similar to those that they have seen in the past. She advised the Council that the City will. be receiving 70% of the Tax Settlement. According to Bartlett, we are on target for hitting the projected revenues for this time of year. The LGA cuts did come out recently. In 2009, the City will lose approximately $88,000 and $204,000 in 2010. Loso asked if there was a way to get a report showing what portion of the GO Debt is linked to WAC/SAC. The following is a list of the cuts so far: • Removed the 2008/2009 CIP Budget $190,000 for 2009 • Not replacing administrative staff $40,000 for the rest of 2009 • Not hiring seasonal workers $15,000 for 2009 • Reduction of membership fees $10,000 for 2009 Those cuts resulted in a total of $255,000 for 2009. This is well under the $88,000 that has been un- allotted for 2009. Bartlett stated that we will monitor the budget over the rest of the year to see where we are at. It was stated that the City may need to look at removing some of the CIP items in the future. Frank stated that the entire staff took a pay freeze for 2009 which Bartlett stated was approximately $80,000. Loso questioned Bartlett about the City's reserve balance. Bartlett stated that typically the City works with a three month reserve and we will be at that again once we receive the tax settlement. Weyrens advised the Council that the City uses its budget reserve for cash flow. That reserve will not change unless something dramatic was to happen. According to Frank, the City Council needs to begin discussing the use of the Sales Tax Funds. He stated that there are some park needs and, in his opinion, he does not see a community center in the near future. He suggested that the Council and staff look into fixing the bridge at Millstream. Wick made a motion to accept the May 2009 Treasurer's Report as presented. The motion was seconded by Symanietz and passed unanimously. PLANNING MATTERS Benedict Plat: Weyrens stated that the Planning Commission recently considered a plat entitled Benedict. The purpose of the plat was to plat the property and clear up legal descriptions for the St. Benedict Monastery, College of St. Benedict and Church of St. Joseph. The lots containing no buildings were labeled as outlots and all those with a building are identified by a lot and block. Loso made a motion to approve the Preliminary Plat and authorize the Mayor and Administrator to execute the Final Plat entitled Benedict. Discussion: Weyrens advised the Council that this plat will be approved by both the City and Township as some of the property is outside the City limits. The motion passed unanimously. June 18, 2009 Page 3 of 6 During the platting process, an error was found relating to the assessments for a small portion of land which is part of the Benedict Plat and a piece of property in Foxmore Hollow. In order to fix the error, the City needs to transfer the assessment to the correct parcel. In order to transfer the assessment, it must first be paid or abated. Although the City will not receive the delinquent interest; they will receive the full assessments within the original terms. Frank made a motion to abate the assessments as they are currently recorded and re-assess the amount payable to the correct parcel. The motion was seconded by Symanietz and passed unanimously. St. Joseph Professional Plat: Weyrens stated that this plat is located across from the new Centra Care Clinic and was to be developed for a Dental Clinic. They submitted all of the required paperwork as well as completed all of the engineering and then decided to withdraw their application. Loso made a motion to accept the Planning Commission's denial of the plat entitled St. Joseph Professional Plat based on the withdrawal. The motion was seconded by Wick and passed unanimously. CITY ENGINEER/PUBLIC WORKS DIRECTOR REPORTS Storm Water Software: Thene stated that he and Weyrens viewed a software program for tracking the MS4 Permit requirements. SEH has developed software that matches the reporting requirements for the MPCA. The Software is uploaded with the information contained in the MS4 Permit. Throughout the year staff would update the software with the permitted activities so that when the year ends, the permit can be printed. Without the software, City staff manually keeps track of the data and compiles the information for the permit once a year. Currently, there are enough funds available to pay for this software. Weyrens advised the Council that the software is accessed online through a portal rather than on our server. Frank questioned whether there are any other programs out there. Weyrens stated that they have looked at others and this is the best. Sabart that the software program will allow staff to input the data throughout the year and, at the end of the year, they will be able to print out the annual MS4 Permit for submission. There is no more need to store the data or keep hard copies as it will all be online. The City currently uses Data View which is another web interlaced that the City uses through SEH. Frank questioned whether or not the City could save money by committing to more years which Sabart replied that pricing is based on population. Wick questioned how long they have had this software available. Sabart replied that they have close to 200 clients and have had the software up and running for over three years. In the contract, it states that it will be automatically renewed after 12 months. Wick stated that he would like the Council to have a discussion after the 12 months prior to renewal. Frank made a motion to authorize the purchase of the Permit Track Software for $995 and approve the contract for annual support at a cost of $600. The motion was seconded by Symanietz and passed unanimously. Seal Coat/Crack Seal: Thene reported that the City has adopted a street maintenance plan which includes an inventory of streets with anticipated repair needs. The plan includes an annual schedule of repairs and maintenance. Due to budget shortfalls, the City did not complete the scheduled maintenance in 2008. Thene stated that he is requesting authorization to complete the schedule for both 2008 and 2009. The engineer's estimate is approximately $70,000 to cover 2008 and 2009. By sealing the cracks, it will help eliminate water getting into the cracks. Thene added that there is $44,000 currently in the budget for this type of project and staff has been asked to look for additional funding. Sabart stated that they are not proposing any seal coating or overlay projects, just crack filling. When questioned if 16tH Avenue SE would be included in the project, Sabart responded that 16t'' Avenue is beyond seal coating. In those neighborhoods, they will be filling the pot holes until the City is able to fund a reconstruction project. June 18, 2009 Page 4 of 6 Weyrens stated that the City is now aware of the LGA cuts. She added that the City has about $170,000 in reserve that the City will hold on to, but she stated that they would like to use $70,000 to complete the crack sealing. Loso suggested funding the project using the funds that were recently found due to an error in TIF reporting. According to Wick, if the roads are not fixed, they will need replacement. Sabart explained that there are several cracks, but they do not have an exact number of cracks or their exact measurements. They have assumed that they will need approximately 35,000 pounds of material to fill the cracks; however, they may fall short or be able to do a little more. The Council agreed that the funds will come from the General Fund. Wick made a motion to approve the expenditure of $70,000 for crack sealing. The motion was seconded by Frank and passed unanimously. POLICE CHIEF REPORTS Surplus Property: Chief Jansky approached the Council and stated that they have four vehicles that they would like to sell as surplus property. These vehicles were forfeited due to traffic arrests anywhere from felonies to DWIs. Once the Council declares these vehicles as surplus equipment, they can finish putting them up for sale. The Police Department will accept sealed bids for up to 30 days and will then be awarded to the highest bidder. They have looked at the vehicles and marked down what they believe is wrong with the vehicles and they will be sold as is. Loso made a motion to declare the 1995 Cadillac Eldorado, 1997 Dodge Intrepid, 1995 Eagle Talon and 1994 Grand Prix as surplus property, authorizing the public sale of the same. The motion was seconded by Wick. Discussion: Symanietz questioned what the City does with the money that is received from the sale of these vehicles. Jansky replied that it is used for alcohol and drug enforcement and education. The motion passed unanimously. Safe & Sober: Jansky advised the Council that the City of St. Joseph has been a part of the Safe & Sober Program since it began in 1999. In recent years, they have worked with Stearns County, Sauk Rapids and Sartell. This year; however, all of entities in and around St. Cloud as well as Stearns and Benton Counties and the MN State Patrol will be participating. The new name for the program is C.R.A.S.H. and the City of St. Cloud will be the fiscal agent. They will be responsible for keeping track of funds and expenses as well as taking care of any necessary paperwork. The money received is based on the number of officers participating. The money is received from a Federal program that will be sent to the State and then passed on to the local departments. They will be enforcing DWI, Seatbelt use and Speed and will be working different areas of the County. Jansky stated that he recommends that the Council pass the Resolution and become a member of project C.R.A.S.H. Wick made a motion authorizing the execution of Resolution 2009-016 approving participation in project C.R.A.S.H. during the period of October 1, 2009 through September 30, 2010. The motion was seconded by Loso and passed unanimously. New Seatbelt Law: Symanietz asked Jansky to clarify the new regulations for seatbelts. In short, Jansky stated that all passengers must be buckled up and if not, a passenger can be cited as well as the driver. There are also some new requirements for toddlers as to how long they need to be in a booster seat based on age, weight and height. The fine is $25, but can quickly add up to $100. With the new law, it is now a primary offense which a person can be pulled over for. Jansky stated that they have done surveys within the City along County Road 2 and County Road 75 and approximately 80% are wearing their seatbelts. Additional information regarding the new seatbelt regulations will be included in the next newsletter. MAYOR REPORTS - No Report June 18, 2009 Page 5 of 6 FRANK COUNCIL REPORTS Coborns: Frank questioned why Coborns is being charged the 2007 WAC/SAC rates rather than the current rates. Weyrens stated that the property was platted in 2007 and when the developer agreement was drafted, they agreed to pay the 2007 rates if it is developed prior to June 2010. This was used as a tool to get Coborns to build sooner. Frank stated that in their proposal, they stated that this would be a "green development'. He asked how the City can have this spelled out to make sure that they follow that plan. Sabart advised Frank that they are proposing to put 6 rain gardens in the parking lot in addition to the ponds. Frank then suggested that they use some venting for lighting. He added that he is seeing more and more commercial projects using LED lighting which lasts longer and uses a fraction of the electricity as normal lighting. Frank suggested asking them for a summary of their green initiatives. They will be trying a new natural lighting technology for the heating of the building. Sales Tax: With respect to the Sales Tax funds that the City has been collecting, Frank stated that the Council needs to have some discussion on how to use those funds. Loso questioned the balance of those funds to which Bartlett stated is approximately a quarter million. Weyrens clarified that the City has approximately $ 750,000 in the sales tax fund. The funds will be collected for an additional eleven Byars and it was anticipated that the City would receive 3 million at the end of the taxing period. Frank stated that many states tax food and clothing, although Minnesota does not. Coborns will bring in sales tax on some items and the City will see some increase from that. Weyrens stated that she will be meeting with the Sales Tax Committee to begin looking at the use(s) of those funds. According to Rassier, it would not be unreasonable to use some of those funds to repair the bridge at Millstream. Weyrens advised the Council that these funds must be used for capital and cannot be used for maintenance. LOSO Allevs: Loso stated that he recently received a call from a senior resident who is asking that the alleys be checked for dust and possibly sprayed with some Calcium Chloride. Thene will take a look at the alleys and check for dust. WICK - No Report SYMANIETZ - No Report ADMINISTRATOR REPORTS Liquor licenses: Weyrens reported that the MN Alcohol Enforcement and Gambling (AEG) conducted training for municipalities regarding the regulation of liquor licenses. The AEG identified the responsibilities of the issuing agency, the City. The City is now responsible for those with the Sunday License to have the appropriate License, checking trade names as well as corporation names. She added that there are some issues with the Sunday Licenses at Loso's and the LaPlayette as they must have a full food license in order to serve liquor on Sundays. In the past, having a pizza oven qualified; however, that has changed. All of the Liquor License holders have submitted their paperwork and paid the appropriate fees. Rassier stated that the license for the College should be for the Gorecki center rather than the Haehn and the rest would be covered under their caterer's license. Weyrens stated that the Local Blend would like permission to sell strong beer; which can be allowed based on City approval. Wick made a motion to authorize the Mayor and Administrator to execute the On/Off Sale Intoxicating Licenses, Wine Licenses and Club Licenses as requested by the License holders. The motion was seconded by Loso. Discussion: Frank questioned the status of checking for fire codes and the reader machines. Weyrens stated that the bar owners have agreed to use the reader machines and a proposal will be brought back to the Council for review at the 2"d meeting in July. They have also agreed to June 18, 2009 Page 6 of 6 add an amendment with regards to garbage clean-up. That will be discussed at the next meeting as well. The motion passed unanimously. Intergovernmental Meeting: Weyrens stated that the Intergovernmental meeting will be held at Wilson Park in St. Cloud on Tuesday, June 30. The will address the following items: Cooperative Ventures -Weyrens reported that the area Administrators met to continue discussions regarding various cooperative ventures. They have created a formal structure in a document form showing what has been done in past. • SCAWAC -Weyrens stated that the SCAWAC met and the sewer treatment expansion seems to be moving forward. There will be a presentation regarding the new developments. She added that, due to bid pricing, they believe there will be some huge reductions. Recycle Bank: Frank stated that in some cities, there are multiple haulers for refuse; however, both Waite Park and Sartell have switched to the recycle bank program for recycling. They have asked Allied Waste to come and give a brief report on the program. Rassier stated that there have been some problems with residents receiving their activation cards. He added that he and Weyrens are working on this. Frank advised residents that they will need to input their address during the activation processor they will need to call Recycle Bank for assistance. Adjourn: Frank made a motion to adjourn at 8:10 PM; seconded by Wick and passed unanimously. Judy Weyrens Administrator