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HomeMy WebLinkAbout[04a] MinutesMY OF h7. JOSEPH City Council Agenda 4(a) MEETING DATE: April 1, 2010 AGENDA ITEM: Minutes — Requested Action: Approve the City Council minutes of April 1, 2010. SUBMITTED BY: Administration ATTACHMENTS City Council Minutes — April 1, 2010 4(a):1 -7 REQUESTED COUNCIL ACTION: Approve the City Council minutes of April 1, 2010. Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, April 1, 2010 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 and Police Chief Pete Jansky. Others Present: Richard Schwegel, Margaret Wurm, Tom Klein, Jodi Terhaar, Monte Eastvold Public Comments: No one present wished to speak. Approval of the Agenda: Symanietz made a motion to approve the agenda with the following additions /deletions: 4(a) Minutes- to be discussed after consent agenda 4(f) Equity Designations — to be discussed after consent agenda Add Ethics Policy — to be discussed after consent agenda The motion was seconded by Loso and passed unanimously. Consent Agenda: Loso made a motion to approve the consent agenda as follows: a. Minutes — Moved for discussion b. Bills Payable — Approve check numbers 042658- 042706 and EFT numbers 000391 - 000395, 000488 -000489. c. Labor Agreement — Authorize the Mayor and Administrator to execute the Labor Agreement between the City of St. Joseph and LELS. d. Final Pay Application — Authorize the Mayor to execute the final pay application for the 2005 Northland Heights Improvement, making final payment to Erin Contracting in the amount of $13,726.72. e. Transfers - Authorize the 2010 Operating Transfers. f. Equity Designations — Moved for discussion. The motion was seconded by Frank and passed unanimously. Minutes: Wick questioned the minutes of March 18, 2010 with reference to the Ethics Policy. He stated that the motion to table was not passed as a 2:2 vote it not a majority. Weyrens advised the Council that this is still an open item on the table. There were a few other minor corrections noted by both Wick and Frank. Wick made a motion to approve the minutes of March 18 and March 25, 2010. The motion was seconded by Frank and passed unanimously. Eauity Designations: Frank asked for clarification on the EDA Equity Designations. He questioned if the need for designation is a result of the EDA not expending the full 2009 budget and if that is so, why would the excess funds not be placed back into the general fund. Finance Director Lori Bartlett stated that he is correct regarding the need for the designation. Since the funds where budgeted and allocated to the EDA the equity designation places the excess in the EDA Capital Fund. The Council at any time could re- designate the equity as it is not a restricted fund. The designation is the same practice used for general fund capital items. Frank made a motion to approve the EDA Fund Equity Designation as presented. The motion was seconded by Symanietz and passed unanimously. 4(a):1 Ethics Policy: Wick made a motion to table this until April 15, 2010. The motion was seconded by Rassier and passed unanimously. Outdoor Liquor Events: Weyrens advised the Council that when the Council allowed for outdoor liquor events to go past 9:3013M, there was a provision in the Liquor Ordinance that required a public hearing before the license could be issued. The City received two applications for outdoor events and are as follows: • Sal's Bar- Senior Farewell, Saturday May 8, 2010 • St. Joseph Church, Saturday, July 3, 2010 Rassier called to order the public hearing for the outdoor liquor request of the St. Joseph Parish. Weyrens stated that the outdoor event license includes the following: temporary on -sale liquor license for July 2 — July 5, outdoor permit to conduct an event past 9:30 PM on July 3, 2010 and to close College Avenue on July 3 from 2:00 PM to midnight between Minnesota Street and East Baker Street and to close Minnesota Street on July 4th between College Avenue and 1" Avenue NW. Richard Schwegel approached the Council on behalf of the St. Joseph Parish and stated that he was present to answer any questions they may have. With no one present wishing to speaking regarding the special event license Symanietz made a motion to close the Public Hearing for the Church of St. Joseph; seconded by Wick and passed unanimously. Rassier questioned Schwegel as to why there is a need for a 4 -day liquor license to which Schwegel stated that the license covers the setup and tear down time as well. Since the 4th of July falls on a weekend, they will offer refreshments when setting up the area. Wick questioned if they will provide accommodations for those neighbors that wish not to attend the event to which Schwegel stated that they would; however, over the years that the concert has taken place the parish has never received a request to stay in a motel. Regardless they continue to make the offer. Jansky advised the Council that the Police Department will conduct business as usual and liquor training will be held for those selling liquor at the event. Rassier stated that he attended the CERT graduation and was advised that their training program would like to assist, if needed. Frank clarified that the additional police and maintenance costs are reimbursed to the City. In addition to the outdoor liquor permit, Weyrens stated that they are also looking for permission to close a portion of College Avenue on the 3`' and Minnesota Street on the 4th Wick made a motion to authorize the Mayor and Administrator to execute the Temporary Outside Liquor License for St. Joseph Parish for an event to be held on July 3, 2010 between 6:00 PM and Midnight and to approve the temporary road closures for July 3 and July 4, 2010. The motion was seconded by Symanietz and passed unanimously. Rassier called to order the public hearing for the outdoor liquor request of Sal's Bar. Weyrens advised the Council that outdoor liquor license is for the event known as Senior Farewell. Senior Farewell is coordinated with the College of St. Benedict, St. John's University, the City of St. Joseph and Sal's Bar. The event includes an outdoor beer garden that is open until midnight and then the area is turned into a gathering space for students. After the bars close seniors have a safe place to gather and say goodbye. Students are provided pizza and pop between 1:00 AM and 2AM. She added that the Police Chief has reviewed the request and recommended approval. Jody Terhaar approached the Council on behalf of the College of St. Benedict and stated that she was present to answer any questions they may have. 4(a):2 As there was no one present wishing to speak regarding the event, Symanietz made a motion to close the Public Hearing for Sal's Bar at 7:12PM; seconded by Wick and passed unanimously. Loso made a motion to authorize the Mayor and Administrator to execute the temporary outside liquor license for Sal's Bar for an event to be held on May 7, 2010 between the hours of 9:OOPM and Midnight. The motion was seconded by Frank and passed unanimously. Financial Advisor Reports - Issuance and Sale of $150,000 GO Certificates: Monte Eastvold approached the Council on behalf of Northland Securities to discuss the issuance of an equipment certificate in the amount of $ 150,000. He stated that this is a relatively small issuance and typically it is more cost effective to contact local banks requesting interest quotes. Both Central Minnesota Federal Credit Union and the First State Bank were notified and the First State Bank responded with a bid of 2.75 %. Weyrens advised the Council that this certificate will replace one that is already in place. According to Loso, the current certificate was for a larger amount and thus the impact to residents will be less. Loso questioned whether or not the funds need to be spent on the items listed. Eastvold responded by stating that, theoretically, the funds should be spent as designated. He added that the equipment purchased should meet or exceed the lifetime of the bond issue. Frank questioned whether the bid received from First State Bank is competitive. Eastvold replied that 2.75% is an attractive rate. Frank also questioned the fact that First State Bank is no longer a local bank and whether or not that had an impact on the rate. Eastvold stated that some local banks will not bid on a bond portfolio. The rate received is very competitive and lower than an issue he facilitated less than one week ago. He stated that he would recommend accepting the rate. Wick made a motion to authorize the Mayor and Administrator to execute Resolution 2010 -008 Providing for the issuance and sale of the $150,000 General Obligation Certificates of Indebtedness, Series 2010A and Levying a Tax for the Payment Thereof as well as execute the sale documents awarding the bond sale to the First State Bank. The motion was seconded by Symanietz and passed unanimously. Financial Advisor Reports — Debt Management Study: Eastvold presented the Council with an annual review of the City's Debt Management Study. In his opinion, all of the debts are in good shape and if the City continues to receive tax levies and special assessments as projected, the City should see no problems in the future. He added that Bartlett prepared a comparison of the debt levied in 2010 vs. those to be possibly adopted in 2011. Her comparison shows a potential reduction in tax levy for 2011. Eastvold advised the Council that when Moody's or Standard & Poor rate bond issues, they generally look at how fast the City pays off its debt. The current issues extend out to 2028; however, 79% of the bond issues are scheduled to be paid off within ten years. He added that when the City issues new debt, the shorter the time period, the better. Loso questioned Eastvold as to how the City's debt ratio compares to other comparable cities. Eastvold responded that, in a growing community such as St. Joseph, this is very typical. Frank questioned if the ratio of St. Joseph is typical or healthy. Eastvold added that when the City had its last bond rating, the rating was upgraded which means that the City is in good shape financially. Therefore the debt ratio of the City would be considered typical and healthy. In conclusion, Eastvold stated that the City is looking at a possible street project and they will discuss those rates at a later date. Bartlett presented the Council with a brief update on the PFA loan for the St. Cloud Wastewater Expansion. She received notice from the City of St. Cloud that the rates came in lower than expected at an interest rate of 1.771 % rather than the estimate rate of 2.3 %. This will result in savings of approximately $315,000 for the City of St. Joseph. CITY ENGINEER REPORTS 4(a):3 16th Avenue SE: Sabart presented the Council with a follow -up regarding the proposed 16th Avenue SE Improvements. He stated that there are five new assessment scenarios, all of which have a final project cost of $989,200. Previously, the Council discussed the scope of the total project to include a 32' wide Urban Section Roadway along with Storm Sewer improvements. Options 1A, 1B and 1C represent assessing only a portion of the 32' wide Urban Section Roadway and the City paying 100% of the costs for storm sewer improvements. Options 2A and 2B represent assessing only the amount of the 22' wide Reclaim & Pave costs and the City paying the balance of the total project cost. Weyrens advised the Council that if the City were to pay approximately 50% of the project costs, the annual cost would be approximately $22- $28,000 over 15 years. That; however, does not include pulling the storm water costs out of that. Weyrens added that a notice was sent to the residents notifying them of the Public Hearing which has been set for April 14. Staff needs direction as to how the Council will fund the project as at the public hearing there needs to be a reasonable estimate of the assessments. After reviewing all five options, Loso stated that he is in favor of option 1 B as he would like to see a 50/50 split. He believes that is a reasonable cost for the addition of curb and gutter. Sabart stated that they have not tried to modify the construction costs, but added that they are still seeing very aggressive pricing on grading, pipe work, etc. Bituminous prices; however, may go on the rise. Wick questioned whether the funds to pay for the storm water improvements will come from the storm sewer fund to which Weyrens stated they would. He then questioned whether the City has enough funds to keep this type of funding going for future projects. Weyrens stated that the City created a storm water utility which was intended to finance maintenance and infrastructure. The financing of the improvement would identify one of the revenue streams as storm water fees. The required revenue would be transferred annually. Wick asked staff to look at future projects over the next ten years to determine if there will be enough storm sewer funds available to pay for those improvements. Frank stated that he too would like to see the impact to future projects. Loso advised Frank that that is what the money is for. 4(a):4 Option 1 A Option 16 Option 1C Option 2A O` tit 28 32' Wide Urban Section Roadway w/ $989,200 $989,200 $989,200 $989,200 $989,200 Storm Sewer Total Project 22' Wide Reclaim & _ _ - $404,200 $404,200 Pave w /out Drainage 100% (Urban 60% (Urban 50% (Urban 100% 60% Section w /out Section w /out Section w /out (Reclaim) (Reclaim) Storm Sewer Storm Sewer Storm Sewer -p- ecial $24,508 $14,705 $12,254 $12,319 $7,391 Assessment [Avg Lot] [Avg Lot] [Avg Lot] [Avg Lot] [Avg Lot] % of Total 81.3% 48.8% 40.6% 40.9% 24.5% Project Cost City Cost $185,050 $506,710 $587,125 $585,000 746,680 % of Total 18.70/6 51.2% 59.4% 59.1% 75.5% Project Cost Weyrens advised the Council that if the City were to pay approximately 50% of the project costs, the annual cost would be approximately $22- $28,000 over 15 years. That; however, does not include pulling the storm water costs out of that. Weyrens added that a notice was sent to the residents notifying them of the Public Hearing which has been set for April 14. Staff needs direction as to how the Council will fund the project as at the public hearing there needs to be a reasonable estimate of the assessments. After reviewing all five options, Loso stated that he is in favor of option 1 B as he would like to see a 50/50 split. He believes that is a reasonable cost for the addition of curb and gutter. Sabart stated that they have not tried to modify the construction costs, but added that they are still seeing very aggressive pricing on grading, pipe work, etc. Bituminous prices; however, may go on the rise. Wick questioned whether the funds to pay for the storm water improvements will come from the storm sewer fund to which Weyrens stated they would. He then questioned whether the City has enough funds to keep this type of funding going for future projects. Weyrens stated that the City created a storm water utility which was intended to finance maintenance and infrastructure. The financing of the improvement would identify one of the revenue streams as storm water fees. The required revenue would be transferred annually. Wick asked staff to look at future projects over the next ten years to determine if there will be enough storm sewer funds available to pay for those improvements. Frank stated that he too would like to see the impact to future projects. Loso advised Frank that that is what the money is for. 4(a):4 Rassier concurred with Loso and stated that the Council reviews the rates annually and a Council in the future may need to increase the rate or determine which projects are funded. He further stated that he too liked option 1 B as the residents are still paying 60% of the street improvement cost; however, with deducting the storm water fee, the residents are paying 50 %. Based on the current economic times and past polices of the City option 1 B makes sense. Frank stated that some cities are changing the way in which they assess the residents as some use a formula for front footage and other use a square footage formula. Sabart concurred that there are different ways in which cities choose to do their assessments and many cities are not working to change their policies and put a policy in writing as to how they will assess the residents. Rassier stated that he believes that using the front footage is the most fair and equitable way to assess residents. The Council came to consensus that they would like staff to present option 1 B. Sabart then presented the Council with a proposed schedule for the improvement project and stated that phase one would begin in August 2010 with the final phase completed by June 2011. Symanietz questioned whether staff has had a chance to talk to the Township and ask for help. Weyrens stated that she had not yet done that. Wick stated his concern about access during construction. He questioned whether there is a plan for residents to access their property during construction, as there are several elderly residents in that area. Sabart advised the Council that they would deal with that during the design process. Rassier suggested that the City ask the contractor to try to keep it open every evening. Energy Conservation Block Grant: Sabart stated that he received an update regarding the Energy Conservation Block Grant and he was pleased to inform the Council that the project has been selected for the short list and will continue in the grant process, which means that they plan to fund a portion or possibly the entire project. Weyrens added that she spoke to the gentleman in charge of the program, and they only had one question and that was the wall pack lighting. It sounded as though everything else would be funded. ADMINISTRATOR REPORTS Human Rights: Weyrens advised the Council that she received a revised Joint Powers Agreement. She was advised that the budget section was left as is so that cities know how much their portion is when it comes time to start their budget process. She explained that the Joint Powers Agreement is executed by the cities involved and the Memorandum of Understanding is executed by the Joint Powers Board and that cannot be negotiated until the Joint Powers Agreement is executed. It is recommended that two St. Joseph members be appointed to the Joint Powers Board at this time as well. Weyrens also advised the Council that there is still some inconsistency with the termination clause and Jovanovich is still working on that. Frank questioned the numerous memos that have been received from the City Attorney. Weyrens advised Frank that the last memo is final and that the Memorandum of Understanding should mirror the Joint Powers Agreement. The agreement states that each member's contribution must be paid by January of the following year. Wick questioned whether or not the City has enough funds to do so. Weyrens replied that they do. Frank questioned the appointment of two members to the board. Symanietz stated she would like to be on the Joint Powers Board. Loso made a motion to authorize the Mayor and Administrator to execute the Joint Powers Agreement between the City of St. Joseph and the City of St. Cloud. The motion was seconded by Frank. Discussion: Wick verified that Jovanovich's three contingencies are included in the authorization. 4(a):5 The motion passed unanimously. Wick made a motion to appoint Mayor Rassier and Councilor Symanietz to the Joint Powers Board. The motion was seconded by Frank and passed unanimously. Frank questioned the term for the appointment. Rassier stated that the Mayor would not be longer than two years as the Mayor has a two year term in office. Wick suggested that this be part of the Mayor's annual appointments. Fire Ordinance: Weyrens advised the Council that the current Fire Ordinance does not allow for burning of natural resources, prairie grasses or brush piles. To allow for the City to continue doing such burns, the DNR has requested that the City amend the ordinance. Loso made a motion to authorize the Mayor and Administrator to execute the Amendment to the Fire Ordinance causing the same to be published. The motion was seconded by Wick. Discussion: The current Ordinance states no burning within the City limits. Frank questioned outdoor burners. Weyrens stated that recreational fires are allowed. Rassier advised Frank that outdoor burners are not allowed within the City. The motion passed unanimously. Graceview Apartment Update: Weyrens advised the Council that the Graceview Apartments are nearing the opening of Phase 1. They are looking at opening the first phase on June 1. Compost Update: Weyrens reported that the Compost will be open on Saturdays April 10 and April 17, with the regular season beginning on Wednesday April 21. Frank commented that Sartell is allowing other communities to use their compost area. Weyrens added that St. Joseph allows both St. Joseph Township and St. Wendel Township to use our compost site. Spring Clean -up: Weyrens advised the Council and residents that the annual spring clean -up will be held on Thursday May 27 and Saturday June 3. EDA Services: Weyrens reported that Cynthia, EDA Director, spoke with two different people that are willing to come in to talk to both the City Council and the EDA about delivering EDA services. MAYOR REPORTS — No Report Mayor Rassier asked Council members to contact Weyrens prior to the meeting if there are simple questions on some of the agenda items, such as an incorrect wording in the minutes. COUNCIL REPORTS Joint Cities Meeting: Symanietz reported that she attended the Joint Cities Meeting at which a representative from the Yellow Ribbon Community was there to thank them for how the program is working and for all of the support from the area cities. Central Minnesota is one of their largest supporters. They also discussed collaboration of various city services such as police, utilities, etc from City to City. LMC Conference: Symanietz stated that she was on the Planning Committee for the League of Minnesota Cities Conference which will be held on June 23 -25 in St. Cloud. Each Council member should have received something about a week ago regarding the event. Wick questioned whether or not it is in the City's budget for the Council to attend the LMC Conference. Weyrens stated that the budget does include the training and interested members should contact the City Offices who will in turn take care of the registration. WICK — No Report 4(a):6 X01� Parking Ordinance: Previously, Loso questioned the most recent action taken by the Planning Commission regarding the parking issues. Weyrens advised him that the last action taken was in December 2006. Loso stated that there was some additional discussion that was to have action in November 2009. FRANK Meter Taming: Frank stated that he recently heard about people capping the meters in cities where they have City owned power companies and questioned if we have similar concerns. Weyrens responded that the City staff is not aware of any manipulation of meters. Snow Plowing in Private Developments: Frank reported that there is some new legislation that will allow cities to plow streets in private developments that are experiencing some financial concerns. He questioned whether staff is following this. Weyrens stated that she will look into that. Website: Frank questioned whether or not the area cities have an email notification system to notify people when there are changes made to their webpage. Weyrens advised him that the City's website does allow for that; however, it is not used as the City does not have the staff for that. Wick added that it may not be as labor intensive as one would think. Transportation: Frank stated that several people have met to discuss transportation. This will be put on the next agenda for an update to see what direction they are headed. Parks: Symanietz advised the Council that the Boy Scouts have contacted the Park Board to do some volunteer work for the parks. If anyone else is interested, they can contact the Public Works Director. Ad'ourn: Wick made a motion to adjourn at 8:30PM; seconded by Loso and passed unanimously. Judy Weyrens Administrator 4(a):7