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HomeMy WebLinkAbout03-06-08March 6, 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, March 6, 2008 at 7:00 PM in the St. Joseph City Hall. Members Present: Mayor AI Rassier, Councilors Renee Symanietz, Dale Eck, Rick Schultz and Steve Frank City Administrator Judy Weyrens City Representatives Present: City Engineer Randy Sabart, Public Works Directors Dick Taufen and Terry Thene, Finance Director Lori Bartlett. Others Present: Monte Eastvold Approve Agenda: Symanietz made a motion to approve the agenda with the following additions: Add Taxing non-profits such as St. Ben's (7b) Add City Council position regarding Local Traffic Tickets (7c) Add Public Works Director Report (7a) The motion was seconded by Wick and passed unanimously. Public Comments to the Agenda: No one present wished to speak. Consent Agenda: Wick made a motion to approve the consent agenda as follows: a. Minutes -Approve the minutes of February 21, 2008. b. Bills Payable -Approve check numbers 000128-000134 and 039924-040038. c. Moved to Administrator Reports. d. Gambling Report -Accept the 2007 annual gambling report and donations made (financially and in-kind) as presented. e. Acceptance of gifts -Accept the donations and their purposes as presented. Discussion: Frank asked for item (c) to be moved to Administrator Reports for further discussion. Wick and Frank made minor corrections to fhe minutes of February 21. The motion was seconded by Symanietz and passed unanimously. Bond Sale - Eauipment Certificate: Monte Eastvold, Northland Securities, approached the Council to discuss the 2008 Equipment Certificate Bond Sale. He stated that, since he last appeared before the Council in February, the interest rates have increased due to the marketing/credit crisis and the volatile stock market. Previously the Council agreed to finance the following equipment through the issuance of $ 280,000 Equipment Certificate: • Police Department Equipment -Tasers, Rifles, Sim Suits/Guns • SUV for the Police Department • Salt and Sand Storage Shed • Computer Equipment -Upgrade City wide computer hardware and software, Software includes additional components of Laser Fiche Eastvold stated that the first bond payment will be due in 2009 with the final payment due in 2013. The annual payments will be approximately $62-64,000 and they will be funded through tax levies. Eastvold stated that the impact to a homeowner whose house value is $150,000 would be $28.26/year. To issue the certificate, Eastvold stated that there are two steps required. 1. Motion to approve the issuing resolution. This document issues the bond into the marketplace. 2. Motion for Northland Securities to buy the issue from the City. Frank questioned Eastvold as to how/if Cities can change their credit ratings. Eastvold stated that a credit rating for municipalities is based on the amount of debt in relation to the financial wealth of the City and projected growth. A negative impact on the credit rating would be if the City did not pay the semi annual March 6, 2008 Page 2 of 5 debt payments. Frank questioned the possibility of Cities having lower ratings than private sectors. Eastvold replied that he doesn't see that happening as St. Joseph is in a situation where growth can happen and the City is financially stable. He added the City is one step away from an "A" credit rating. The City has requested a rating review from Moody's for the last few bond issues in anticipation of a rating increase. Wick questioned the capitalized interest to which Eastvold stated that capitalized interest is the amount financed to pay the interest from the date of issuance to December 31, 2008. Frank made a motion to approve the Resolution to issue the 2008 $ 280,000 Equipment Certificate. The motion was seconded by Symanietz and passed unanimously. Wick made a motion to authorizing the Mayor and Administrator to execute the contract selling the bonds to Northland Securities. The motion was seconded by Symanietz and passed unanimously. Previously, Eastvold approached the Council to discuss the possibility of refunding some of the City's bonds. He stated that, due to the increased interest rates, there would no longer be any savings to the City. He added that he will monitor the interest rates and bring it back if there are any changes. 2008 Park Board Budget: Weyrens stated that the Park Board is required to submit to the City Council an annual budget. Once the budget is approved the Park Board has the authority to complete the projects. Weyrens reported that the Park Board has been prioritizing the 5 Year Park Board Capital Improvement Plan. Weyrens clarified that the Park Board funding is through Development Fees, Grants/Aids and Sales Tax Revenue. Approving the budget does not obligate General Fund expenditures. The Park Board can only complete projects if they have the revenue sources needed for the project. Based on the proposed capital improvements, Frank questioned the improvement to Northland Park. Bartlett stated that the CIP includes the construction of a park shelter and parking area. Wick stated that twice the Park Board has submitted an application to the Department of Natural Resources for funding and have been denied. The Park Board will continue to work towards completion of a shelter and parking lot as soon as funds are available. Frank questioned if some of the items in the CIP will have to be delayed to the economic slow down. Weyrens reiterated that the Park Board can only complete items if they have the funding available. Wick and Rassier concurred stated that tax funds are not used for park development and budget cuts would not impact the CIP for the Park Baord. Wick made a motion to approve the 2008 Park Board Budget as presented. The motion was seconded by Symanietz. Discussion: Schultz questioned the following: 1. He questioned what is going to happen to the Cloverdale Tot Lot. Weyrens stated that the park land was dedicated for Park and any change in the land use would have to be approved by the developer who dedicated the park land. 2. Schultz questioned the costs of park maintenance and if they are tracked. Weyrens responded that all expenditures are tracked and as the Park Board completes development additional maintenance costs are incurred by the City. These cost are budgeted annually by the Public Works Director. 3. Schultz also questioned how the half-cent sales tax will affect the park board budget. The sale tax collection is recorded through a special revenue fund which can only be used for the purposes approved by the voters. One of the uses approved was park development, so these funds have the potential of increase the amount of development. Weyrens clarified that Sales Tax funds cannot be used for maintenance. The motion passed unanimously. March 6, 2008 Page 3 of 5 CITY ENGINEER REPORTS Stn Avenue Water Leak: City Engineer Randy Sabart advised the Council that the City responded to a watermain leak on 8 Avenue NEon February 26. The City improved this area in 2006 and did not place the final wear course until 2007. Since the project is still under warranty, general contractor, C & L Excavating, was notified of the water leak. The contractor responded the same day and it was determined the leak was attributed to a cracked brass corporation stop (water main tap) where the copper service pipe connects to the water main. He added that the bituminous pavement and the boulevard were disturbed during the repair process. The area has been temporarily patched with gravel until weather permits. Sabart stated that the leak was most likely due to a backfill compaction issue. New Public Works Director: Public Works Director Dick Taufen approached the Council to introduce Terry Thene who will be replacing him after he retires on April 1. Taxing non-profits such as St. Ben's: Frank stated that at the last Council Meeting, there was some discussion regarding the taxing of a portion of St. Ben's Dining facility. He questioned where the request is coming from. Rassier stated that the Council has previously discussed the use of the dining facility and requested Administration to contact the Assessor to determine if the facility is eligible for tax exemption. Some members of the Council have been receiving calls from business owners in St. Joseph questioning why St. Ben's can compete in the private sector for weddings and conferences and not pay taxes. In the eyes of the business owner it is an unfair advantage as their overhead costs are reduced and they can offer more competitive services. Rassier stated that the intent is not to tax the entire facility, but the portion that is used to compete with private business. The Council is only asking the County Assessor to look into this issue. Frank stated that the Minnesota Supreme Court prohibits the taxing of Colleges and he stated that he would be surprised if the City would be successful in this effort. He added that it would be an administrative nightmare to keep track of this. Rassier added that every other business in the City is required to make a commitment to the City and there has to be a line drawn. Frank also stated that St. Cloud State has restaurants on campus, a book store and they house people as well which competes with the local businesses and they are not taxed. Rather than taxing the College, he stated that it may be more productive to do some cooperative sharing such as asking for their participation to join with the Metropolitan Transit Authority. Rassier concluded by stating that no decisions are being made at this time regarding the taxing of St. Benedict's. Schultz stated that the City is headed in the right direction and they should keep pursuing this issue. City Council position regarding Local Traffic Tickets: Frank addressed the issue of the local Police being given the power to issue local traffic tickets. He stated that many police are against this. Frank stated that the City has not yet taken a position on this matter and questioned the Police Chief testifying at the legislature. Rassier stated that the City did review this issue when it was first discussed by Legislature and supported the efforts. When tickets are issued through the Court system the City receives approximately one-third of the revenue and the rest is paid to the State and County. The purpose is not to increase tickets thereby raising revenue, rather to reimburse the party that is actually doing the work. Wick stated that approximately three years ago the City was ready to implement the administrative ticket process but had to stop due the interpretation of the State Auditor. Schultz questioned whether or not Chief Jansky will be bringing this issue back for discussion. Weyrens stated that he will as it requires an Ordinance change. MAYOR REPORTS - No report SYMAN I ETZ COUNCIL REPORTS Playground Committee: Symanietz reported that the District 742 Playground Committee is workin~ to finalize the playground equipment for the new school. There will be a park for grades 1$` through 8 n and a small tot lot in the front of the school. March 6, 2008 Page 4 of 5 Park Board: Symanietz reported that the Park Board has been working to finalize their 2008 Budget. APO: Symanietz stated that she attended the APO Meeting at which they were advised that the Wobegon Trail will not be federally funded. They were also presented with a growth report for Stearns County and the surrounding areas. The information is available on their website as well. WICK Plannina Commission: Wick reported that the Planning Commission held their first meeting regarding the update to the Comprehensive Plan. The public was invited and approximately 25-30 people attended. A survey was made available for residents to fill out. He added that there will be more room for public input at future meetings. The Planning Commission will meet on the last Wednesday of each month through November at 6:OOPM at City Hall. SCHULTZ Planning & Zoning Question: Schultz questioned a recent discussion regarding stockpiles as they relate to the Coborn's Realty Plat. He stated that at the corner of 7th Avenue and Graceview, there has been a stockpile there for a long time. He clarified that there are no ordinances prohibiting that. Weyrens stated that the City requires removal by the developer. She stated that she will look into an Ordinance Amendment regarding stockpiles. Shops and Lofts Open House: Schultz reported that he attended the recent open house of the Millstream Shops and Lofts. He stated that they are very nice; however, when you walk out on the patios, you can touch the power poles. He questioned whether or not that is a building code issue. Schultz then questioned the possibility of having those lines buried. Weyrens stated that she spoke with a representative from Xcel and it would cost millions to move the lines and they cannot be buried. Frank questioned how they were able to build a 2-story building without an elevator. Schultz stated that it is because it is not senior housing. Newly Elected Officials Conference: Schultz advised the Council that he attended the Newly Elected Officials Conference at which they discussed different finance and legal issues. He added that, in June, there will be a panel discussion on similar issues. Symanietz stated that the annual conference will take place in Rochester June 11-13. Frank added that there will be workshops held in St. Cloud in June as well. Police Reporting: Schultz stated that he will be meeting with Chief Jansky to discuss the monthly police reports. He would like to see some of their reports available on the website for the public to view. FRANK CentraCare: Frank questioned Weyrens as to whether or not CentraCare will be responsible for paying property and sales taxes, to which Weyrens states she was uncertain. APO Meeting: Frank stated that he also attended the APO Meeting at which they addressed the following: • Growth Reports -Frank stated that he asked for a copy of the area growth report to be sent to the City as it may be helpful for the Comprehensive Plan Update. • Legislative Earmarking -Frank stated that they discussed legislative earmarking and took a vote which ended in a 30:1 outcome. Legislative earmarking is when items are added on after it has gone through the committee. Bachman is against this and the APO is trying to get her to attend one of their meetings at which they hope to get her to change her position on this. Rassier stated that the APO is a good organization, but he stated that he has issues with how area projects are prioritized. He stated that the area cities need to work together. March 6, 2008 Page 5 of 5 • Metropolitan Transit Commission: According to Frank, they were hoping to get a defeated Council Member from Waite Park on the Commission to which he felt was not right. ADMINISTRATOR REPORTS Master Park Plan -Request for Proposals: Weyrens stated that the Park Board has been discussing the need to develop a park development plan for current and future parks. One way to accomplish this is to prepare a Master Park Plan. A master Park Plan is similar to a Comprehensive Plan and provides detail to not only identify the parks, but provide type of equipment, budget requirements and maintenance requirements. At the request of staff, the Park Board has requested proposals for the development fo a master park plan. Three firms have responded to the RFP and Weyrens requested that both the City Council and Park Board interview all three firms. Financing of the Park Plan will have to be the half cent sales tax as the project will cost between $ 30,000 and $ 50,000. Weyrens will establish a joint meeting date for the interviews. Premise Permit Gambling License - La Playette/EI Paso, St. Joseph Lions: Frank questioned whether or not those groups applying for a premise permit are required to provide the City with an annual gambling report to which Weyrens stated that they are. Frank then questioned whether it is a good idea to issue a premise permit for an establishment with multiple violations. Weyrens advised Frank that Alcohol and Gambling are separate issues and it would not be appropriate to reject a gambling license for an alcohol issue. Wick made a motion to accept the Premise Permit application for the St. Joseph Lions Club to operate lawful gambling at the following two sites: 7) EL Paso Bar 8~ Grill, 200 2"d Avenue NW; 2) La Playette Bar, 20 College Avenue N. The motion was seconded by Symanietz and passed unanimously. Ad~iourn: Frank made a motion to adjourn at 8:20 PM; seconded by Wick and passed unanimously. ~~ ' Ju yren~ A mini rator