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HomeMy WebLinkAbout2009 [12] Dec 03December 3, 2009 Page 1 of 8 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, December 3, 2009 at 7:00 PM in the St. Joseph City Hall, opening the meeting with the Pledge of Allegiance. Members Present: Mayor Al Rassier, Councilors Dale Wick, Renee Symanietz, Steve Frank, Bob Loso and City Administrator Judy Weyrens City Representatives Present: City Engineer Randy Sabart, Finance Director Lori Bartlett, Police Chief Pete Jansky, Public Works Director Terry Thene Others Present: Thomasette Scheeler, Mike McDonald, Sr. Kara Hennes PUBLIC COMMENTS Mike McDonald, 213 131h Avenue SE, approached the Council to discuss agenda item 9(a) Meeting Broadcast. According to McDonald, there have been various emails sent back and forth between the Cable Commission and the City Council regarding the Commission's Charter. The background information provided by Weyrens stated that "when the City began televising meetings, there was some hesitancy with some Boards and Commissions and the Council made a conscious decision to only televise regular Council and Planning Commission meetings ". McDonald feels that there is room in the budget to televise the meetings of the other boards and commissions as well. He added that most cities televise the Planning Commission, EDA, Park Board and, most importantly, the Council's Budget Meetings. According to McDonald, the City's Budget meetings are Council meetings focused on only one topic. Approval of the Agenda: Loso made a motion to approve the agenda with the following additions /changes: Move (5) 2010 Proposed Budget and Fee Schedule Public Hearing — Hearing to be conducted at 7:30. Add (9d) Legislative Update The motion was seconded by Frank and passed unanimously. Consent Agenda: Symanietz made a motion to approve the Consent Agenda as follows: a. Minutes — Approve the minutes of November 19, 2009. b. Bills Payable — Approve check numbers 042221 - 042267 and EFT numbers 000346- 000350 and 000475. c. Application for Payment — Approve Pay Application #10 [Final] for the 2007 Jade Road Improvements and authorize payment to R.L. Larson Excavating in the amount of $78,527.00. d. Liquor License — Authorize the Mayor and Administrator to execute the 2010 Cigarette, Amusement, and Off /On Sale non - intoxicating licenses. e. Quarterly Gambling Report — Accept the 3`d Quarter Gambling Report. f. VEBA Plan — Authorize the Administrator to execute an Agreement with the Minnesota Service Cooperation for post retirement health care savings. The motion was seconded by Loso and passed unanimously. CITY ENGINEER REPORTS APO TAC Update: Sabart reported that the TAC met they continue to work on a ranking sheet to prioritize projects. He added that they have been struggling with a way in which to rank the various projects in a fair manner. Sabart added that they reviewed information regarding the APO Fiscal Year 2014 -2015 Transportation Improvement Program and discussed what types of projects could be considered a December 3, 2009 Page 2 of 8 candidate project. In order apply as a candidate project; the project must be listed in the St. Cloud Metro Area 2035 Transportation Plan as a constrained project. St. Joseph has one project which can be considered and that is the North Corridor Project. Sabart reported that this project is currently still in the environmental study state. He added that they look to that being completed in the required timeframe and that construction is feasible. APO Staff questioned whether or not St. Joseph is interested in listing that project as a candidate project, which is the next step. If the project is listed as a candidate, the City would need to commit to constructing the road if funding is available. The APO does not want any agency to volunteer their project if there isn't a commitment of local funds to move the project forward. If the City is not ready to commit for 2014 -2015, Wick questioned when the next opportunity would be. Sabart stated that there is a timeframe limitation of 10 years once the Federal Dollars are first used. Sabart reminded the Council that federal funds were used to start the Study. Symanietz questioned how long the EIS is good for to which Sabart responded that they are generally good for three years. Wick questioned what prompted this project to start. Weyrens stated that it was due to the realignment of CR2 from CR3 to CR133 and the Parkway Business Center. Sabart advised the Council that the City's portion will most likely end up being more than 20 %. Rassier stated that there are a lot of wish lists out there and a lot of bonding projects out there for projects that have not yet been completed. He also stated that it is ironic that St. Joseph's projects move to the top of the list when the other cities don't have any money. Sabart advised the Council that the deadline to volunteer the project is Jan 8. Wick questioned Sabart as to when the EIS is expected to be completed to which he replied that it is not scheduled to be done this year; however, it is expected to be done in 2010 as MnDOT has shifted their focus to the stimulus projects. Wick made a motion to hold off on volunteering the North Corridor Project as a candidate project until 2015 -2016 when the Environmental Assessment is complete. The motion was seconded by Symanietz and passed unanimously. 16th Avenue Update: Sabart advised the Council that they will proceed with the soil borings. He added that they requested two proposals, Braun and ITT. They have made a few changes to bring the costs down. ITT is the low contractor. Sabart stated that they plan on being out in the field either next Thursday or Friday. They may use hand augers to add some additional holes. He added that Gopher One will be contacted to locate the utilities in the area as well. County Road 2 Bypass Update: Loso asked Sabart for an update on the County Road 2 Bypass. Sabart replied that Stearns County continues to work on the design for this project and he will talk to them and bring back an update at the next meeting. 2010 Proposed Budget and Fee Schedule Public Hearing: Mayor Rassier opened the public hearing and stated the purpose of the hearing is to accept input on the proposed 2010 General Fund Budget, Enterprise Budget and Fee schedule. Weyrens added that the Council was presented with a resolution based on the budget which is a balanced general fund budget, an illustration of the tax impact of the final budget, a summary of the general fund categories, summary of the CIP, summary of the enterprise funds as well as a proposed fee schedule. Weyrens stated that the General Fund Levy is made up of the following: General Fund Tax Levies $1,232,779.00 Special General Fund Levies $ 44,856.00 Bond Levy Requirements $ 536.020.00 Total General Fund Levy $1,813,655.00 Mike McDonald, 213 IYr Avenue SE, approached the Council with respect to the proposed 2010 budget. According to McDonald, the City got by in 2009 by holding off on replacing some jobs, no cost of living adjustments for employees and a large one -time transfer. The large one -time transfer was a result of December 3, 2009 Page 3 of 8 some bond funds that were mistakenly taken out of the general fund rather than the Northland Heights fund. In his opinion, the City has quite a bit of bonding expenses and it appears that the City pays bonding expenses to run the day to day operations. In both 2008 and 2009, the Council said several times that items were cut from the CIP; however, there are bonds for the CIP. If those funds were not used for equipment, he questioned what it was used for. Bartlett replied that, in 2008, the City issued a Certificate of Indebtedness which is very typical for purchasing general fund capital items. In 2008, the City built the Sand Salt Shed. Once that certificate rolls off, then the City can look to see if they can issue another debt to purchase a larger item. Some items were removed, but none were removed that were already earmarked for those debts. In 2009, the City issued a CIP Refunding Bond for the Public Works Facility to take advantage of interest savings. McDonald stated that, year after year, the City proposes a budget that reaches the levy limit. Weyrens advised McDonald that the City could have levied additional funds, but they chose not to do so. McDonald also stated that, compared to other cities, St. Joseph has the highest property taxes for the same valued home. He questioned why that is. He questioned whether or not the level of service provided justifies the highest tax rate in the area. He has heard several times over the past years that the Council is happy that they are able to keep the levy close to the prior year. They have never; however, questioned if that tax level is the right level for the City. Rassier stated that St. Joseph does not have the same commercial base as the area cities. If there was a larger commercial /industrial base, the residential taxes would be lower. McDonald suggested "beefing up" the EDA to bring in more business. He also suggested the possibility of using annexation to bring in more industrial areas. According to McDonald, the Gorecki Center at the College should be taxed as a profit organization as they compete with local businesses and they advertise outside the College. In his opinion, the City is not aggressive enough. Some of the paperwork that he has seen for the 2010 CIP has been reduced as the anticipated amount of equipment will be purchased through equipment certificates. Although the certificate is issued in 2010, there will be no payments until 2011. This does not create any current consequences; however, there will be future consequences. Rassier stated that the only way for the City to purchase equipment is to borrow the money. McDonald suggested that the City cut back on expenses by cutting back on benefits. Currently, benefits are 40% of the salary budget. He understands that the City cannot take away everything at once; however, many private companies are cutting back on benefits like health insurance. Rassier stated that the City deals with union contracts and benefits cannot be discussed in public until the contracts are final. Recently, the City initiated the use of administrative fines. McDonald questioned whether or not the amount budgeted is too low. According to Rassier, this was just implemented and we have no idea how this will go. McDonald stated that he reviewed the MN State Auditor Report from 2007. He questioned whether or not the City measures reserves differently as the City states they only have 2.5 months in reserve. According to the State of Minnesota, there are $1.8 million in unreserved undesignated funds and $2.4 million in expenses, which results in a 74% reserve balance. The average for all cities is 51 %. He questioned staff as to how we measure the reserve funds. Bartlett stated that the City is trying to fund 3 -6 months. Weyrens stated that the State Auditor's reserve balance includes the Fire Fund as it is a general fund type activity. This fund alone has a balance of approximately $ 600,000. This amount is included in the reserves for the State Audit purpose, but not for the City financial statements. In addition Weyrens stated that changes in accounting standards over the past few years has also changed what is considered reserves. With respect to the Enterprise Funds, it has been said that there is not much of an increase. He believes that a 14% increase in the waterline charge, 5% increase for water use, 15% increase for sewer line charge, 6% increase for sewer use and 36% increase for storm water is a big percentage. Rassier re- stated that if the City had more businesses, the percentage increase would not be so high. McDonald advised the Council and Staff that they need to be more aggressive with annexation and the EDA. Loso December 3, 2009 Page 4 of 8 questioned whether he is aware of the annexation agreement to which McDonald stated he is; however, the City is not aggressively annexing eligible properties. Frank stated that a big part of the sewer increases are due to the St. Cloud Projects. All of the area cities are looking to raise their sewer rates. Bartlett added that all of the Cities were greatly affected by the interceptor repairs. There is talk that St. Cloud will ask for a tax exemption for the new wastewater structure in an effort to save interest costs. Jane DeAustin, approached the Council on behalf of the CMBA. She stated that she is urging the Council to reconsider the proposed increased building and development fees. According to DeAustin, the number of building permits has decreased over the past couple of years. From 2004 -2005, she stated the number of permits was approximately 800 -900 per year. This year, there were 120 permits pulled in all of the area cities. St. Joseph issued 9 new home permits this year. DeAustin added that the housing market is stabilizing and they predict that the 2010 numbers will be the same as last year or have a slight increase. Currently, existing homes are selling for less than the cost to build a new home and now is a good time to buy a home as the interest rates are low and there is ample inventory of affordable homes in the area. Local cities are being encouraged to promote growth and stimulate the local economy. The City of St. Joseph could do that by reconsidering some of the fees associated with building permits. For example, the City could consider a $0 increase for SAC and WAC charges or possibly the postponement of collecting the fees until either the time of service or the Certificate of Occupancy. Currently, those fees are being collected with the building permit. This could help builders by reducing their holding costs. She is asking that the City "sharpen their pencils a little bit more and hold back the fee increases ". Frank questioned DeAustin as to what other cities are doing. In response, she stated that St. Joseph's sewer access charges are higher than other cities. According to Weyrens, St. Joseph is in the ballpark with development fees. DeAustin added that Sartell is considering the postponement of payment for development fees and St. Cloud did not increase any of their access charges. Symanietz made a motion to close the Public Hearing at 8:15PM; seconded by Wick and passed unanimously. Symanietz stated that she believes they did the best they could with what they have to work with. She added that the City's hands are tied based on the amount that must be given to St. Cloud. Wick questioned several items as presented to the Council in which there seemed to be some discrepancies. With respect to the Enterprise Expense Budget [Sanitary Sewer Maintenance — Professional Services], Wick stated that, in November, this amount was $1,000 and now it is $21,000. He questioned why there was a change. Bartlett stated that the sewer televising is part of the professional services and thus the amount was simply moved from one fund to another. He also questioned the Interceptor Repairs for the Main Lift Station. Bartlett added that that is the amount that will be paid to St. Cloud. He questioned why the Rate Class One fee for Storm water increased. He was advised that it changed based on the new numbers for storm water. There was a question on the fee for Refuse Hauler Permits. He was advised that this fee would pertain to other haulers that do business within the City for Commercial properties or apartments. Loso added that it is hard to say what is going to happen due to the State deficit. Rassier agreed with Loso and stated that any expenditure is ill- advised at this time. He stated that the City may see some more unallotments this year. Frank stated that the City may lose up to an additional $300,000 to which Wick disagrees. Frank also agreed with Loso that we do not know what is going to happen and he is not sure that the City is able to make any changes as everything has been pretty well laid out. Frank added that they must be careful what is said as they are still negotiating with the unions; however, it is recommended that there be no pay increases for employees. According to Frank, he would rather see the City replace the police officer rather than purchase new equipment. Frank added that he believes that Cities may continue to lose LGA over the next year or two and thus Cities may have to look at other ways of delivering services. Frank questioned what happened to the December 3, 2009 Page 5 of 8 possibility of a regional animal control. Weyrens responded that the Administrators reviewed the costs of participating wit St. Cloud; however it was not cost effective and would have actually cost the area Cities more than the existing method. There were some questions as to why the costs for electric, utilities, telephone, etc show an increase. Bartlett stated that it is based on the anticipation for the future based on historical trends. The telephone costs are based on a 5 year allocation plan that was approved when the new phone system was installed. Frank questioned the possibility of delaying payment of WAC /SAC fees. Weyrens suggested that the City wait until January to discuss that possibility. Rassier stated that these fees are paid to ensure that they hook up to water and sewer and to ensure that there are no new septic tanks within the City. Rassier added that they have room to work with this and Frank agreed, but stated that they need to be consistent. According to Rassier, they have more options when working with a developer rather than a single home builder. Based on the economic times, Rassier stated that replacing an employee would not be a wise decision. He added that it is public knowledge that St. Joseph needs to stay at a 0% increase this year. Wick made a motion to authorize the Mayor and Administrator to execute Resolution 2009 -027 adopting the Final Budget for 2010, establishing the tax levy and fee schedule for 2010. The motion was seconded by Symanietz. Discussion: Loso questioned the final date for the budget. Weyrens stated that tonight would be the final night and this is the highest possible tax rate that can be charged. She advised the Council that while the budget is approved, capital purchases are not approved. The motion passed unanimously. MAYOR REPORTS CERT Training: Rassier stated that there will be a graduation ceremony for those attending CERT training through Stearns County Emergency Services. The ceremony includes residents from St. Joseph. CERT is a program that trains volunteers to help in emergency situations. Legislative Updates: Weyrens will discuss this later in the meeting. COUNCIL REPORTS FRANK — No Report LOSO Snow Report: Loso stated that a month has passed and there has been no snow plowable days. He added that he will provide a monthly report thru April. WICK Regional Economic Development SEDS Plan: Wick reported that the St. Cloud Partnership is continuing to work on establishing the regional EDA structure to apply for federal funding through a program entitled SEDS. The Partnership anticipates asking Cities to bring a list of projects for funding in Spring 2010. He added that groups will continue to gather data and provide an analysis. There are four counties involved in the program: Wright, Sherburne, Stearns and Benton. SYMANIETZ LMC Planning Committee: Symanietz advised the Council that the League Conference will be focused mainly on Finance and a struggling economy and it will be held in St. Cloud. Park Board: No Report — Thene will discuss under his reports December 3, 2009 Page 6 of 8 PUBLIC WORKS DIRECTOR REPORTS Centennial Park: Thene reported that staff has removed all of the old equipment in preparation of the new equipment being installed next spring. The Park Board will go out for bids for the equipment in the spring as well. Cold Weather Approaching: Thene stated that, with the cold weather approaching, he encouraged everyone to drive safe as the snow will be coming. POLICE CHIEF REPORTS Civil Defense Siren: Jansky updated the Council on the status of the Civil Defense Siren. The siren on East Baker has been sounding but not rotating. He has been working with the vendor to repair the siren. There were some question as to whether or not the City's sirens are up to date and whether there are enough sirens within the City. Jansky stated that when ARCON develops, another siren will be added. Currently, the sirens can be heard as far out as the Bechtold farm and Jansky stated that the new school is at the peak of the arc. The sirens are set off via VHF radio by dispatch and they will be changing the frequency band. As a result, there will be a need to update the sirens. Jansky advised the Council that there are funds in the CIP for that change as well as the repair of the south siren. He stated that staff will discuss this and bring information back to the Council. ADMINISTRATOR REPORTS Meeting Broadcast: Weyrens stated that this is a follow -up to the last Council Meeting at which there was some concern about which meetings were being televised. She reported that she spoke with some of the area cities about their practices. Sartell broadcasts only their City Council meetings. Waite Park broadcasts their Regular Council, Regular Planning Commission and Regular Park Board Meetings. St. Cloud, on the other hand, broadcasts all of their meetings. She added that St. Cloud has a full time staff devoted to media. Weyrens also stated that she spoke to Noreen Loso of the Cable Commission and she stated that they do not have enough staff to broadcast all of the City's meetings. Weyrens is asking for direction from the Council if they want to either reaffirm the current practice or modify the current practice. Loso made a motion to continue the current practice of broadcasting meetings, televising the regular City Council and Planning Commission meetings and hearings requested by the Council. The motion was seconded by Rassier. Discussion: Wick suggested that the Council's budget working sessions be included. As a past member of the Park Board, he feels that those are more of a working session rather than a regular meeting. He also stated, as a member of the EDA, that when working with businesses, some do not want to come in with the cameras on. Frank stated that the Cable Commission's budget has had an excess over the last couple of years. By changing the Commission's practice and broadcasting every meeting, there would be an increase in employee time and expenses. As some of the budget is overrun, he suggested the possibility of allocating those funds to a different department. Rassier stated that with respect to the EDA, he stated that the City is looking at changing the structure and believes it would be a mistake to add more meetings at this time. Amendment #1: Frank amended the motion to include televising the budget workshops. The motion was seconded by Wick. Loso stated that it is his opinion that if the budget workshops are televised than all meetings should be televised, thereby amending the amended motion as follows: Loso amended the motion to televising all City related meetings, including the Park Board and EDA. The motion was seconded by Rassier. Ayes: Loso Nays: Rassier, Wick, Symanietz, Frank Amendment #1: Ayes: Wick, Frank Nays: Rassier, Symanietz, Loso Original Motion: Ayes: Rassier, Symanietz, Loso Nays: Wick, Frank December 3, 2009 Page 7 of 8 Motion Fails 1 *0 Motion Fails 3:2:0 Motion Carried 3 :2:0 Rassier clarified that the Cable Commission will continue to broadcast meetings as is the current practice televising the regular City Council and Planning Commission meetings and hearings as requested. Revolving Loan Fund, Prego Inc: Weyrens stated that the EDA recently considered and recommended approval of a Revolving Loan Fund for Prego Inc (dba The Local Blend). Previously, the City received grant money from the Minnesota Investment Fund which was used for the construction of the former VicWest facility. That money was received from the State and once that money was paid back, it is to be turned over to the Community. In 2008, there was an audited fund balance of $52,648. Prego Inc is requesting a $24,000 loan from the Revolving Loan Fund to complete some fagade improvements. The funds in the Revolving Loan Fund can only be used for economic development and do not include any St. Joseph taxpayer funds Frank made a motion to approve the loan from the Revolving Loan Fund for Prego Properties LLC dba The Local Blend in the amount of $24,000 for a term of 7 years at an interest rate at 3% and authorize the Mayor and Administrator to execute the loan documents. The motion was seconded by Wick. Discussion: Loso questioned if they are an eligible applicant. Rassier stated that they are a commercial business. Frank added that they are licensed through the County and Weyrens added that the property is zoned central business, therefore they are an eligible applicant. The motion passed unanimously. Ethics Policy Update: Weyrens reported that she will have some draft policies for the Council to review in January. Frank questioned whether the City should seek legal opinion regarding this issue to which Weyrens stated that the City Attorney has been involved. He also questioned whether we should get input from the League. Weyrens stated that the League has some examples available for Cities. Recently, a letter was received regarding this issue and it has been reviewed by the City Attorney and it his opinion that the City has an obligation to investigate the matter Legislative Concerns: Weyrens stated that since the last City Council meeting the Area Mayors and Administrators met to review the previous list of legislative priorities. All the area City Council's have had an opportunity to review the list and two items were removed: Photo Cop and reference to re- establishing the Board of Innovation. In addition to deleting two items, one items was added — Sales Tax Exemption, and one items was modified — Tax Rate Drive Levies. The Sales Tax Exemption would seek relief from sales tax on the Wastewater Rehabilitation and Expansion, saving the Cities an estimate of 1.7 million. Wick made a motion supporting the Joint Resolution of the Central MN Cities of St. Cloud, Sartell, Sauk Rapids, Waite Park, St. Joseph, St. Augusta and Rockville Advocating Support for Certain Legislative Issues and Proposals of Common Interest or Concern to Central Minnesota Region. The motion was seconded by Loso. Ayes: Rassier, Wick, Symanietz, Loso Nays: Frank Motion Carried 4:1:0 December 3, 2009 Page 8 of 8 December Meeting: Weyrens stated that, in the past, the Council has not held their second meeting in December and she currently has nothing that needs to be taken care of. In the event that something of major importance does come up, they could meet prior to the Intergovernmental Meeting which is scheduled for December 22 in St. Joseph. Ad*iourn: Wick made a motion to adjourn at 9:05PM; seconded by Symanietz and passed unanimously. Judy Weyrens Administrator