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HomeMy WebLinkAbout[04a] MinutesC.M OF ST. Joni -wR MEETING DATE: AGENDA ITEM: SUBMITTED BY: Council Agenda Item 4 a May 20, 2010 Minutes — Requested Action: Approve the Council minutes of May 6, 2010 Administration BOARD /COMMISSION /COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION: BUDGET /FISCAL IMPACT: ATTACHMENTS: REQUESTED COUNCIL ACTION: Minutes of May 6, 2010 Approve the minutes of May 6, 2010 4(a):1 May 6, 2010 Page 1 of 4 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, May 6, 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, Public Works Director Terry Thene and Police Chief Pete Jansky Others Present: Steve Wischman (KDV) Approval of the Agenda: Symanietz made a motion to approve the agenda with the following add itionslchangesldeletions: Add 7b Election Grant Move 4c Lot Split Request [to be discussed after the consent agenda] The motion was seconded by Wick and passed unanimously. Consent Agenda: Loso made a motion to approve the consent agenda as follows: a. Minutes — Approve the City Council minutes of April 14 and April 15, 2010. b. Bills Payable — Approve check numbers 042763- 042854 and EFT numbers 000401 - 000406. c. Lot Split Request — Removed. d. Donations — Accept the donations and their purposes as presented. e. Quarterly Gambling Report — Accept the 1't Quarter Gambling Report. The motion was seconded by Wick and passed unanimously. Lot Split Request, Joe Leach: Frank stated that he is not questioning the actual lot split; rather the role of the City and the Building Inspector in reviewing such. He questioned the cost of having the building inspector visit these sites. Weyrens advised the Council that the fee for a lot split is $500 which covers the costs of a simple lot split. In the event the costs exceed $ 500 the applicant is billed the additional fees and they are recovered before the Council takes action. Frank made a motion to authorize the Administrator to execute the Certificate of Compliance approving the lot split request of Joe Leach as recommended by Staff and the EDA. The motion was seconded by Loso and passed unanimously. 2009 Audit: Steve Wischman approached the Council on behalf of KDV to present the 2009 Audited Financial Statements. Wischman stated that the statements include two documents, a Management Letter and the financial statements. He began by discussing the Management Letter which indicated some material weakness relating to the segregation of accounting duties and stated that those are due to limited staffing. He also advised the Council of a deficiency that was reported with respect to the police department and stated that an additional person, other than the secretary, should reconcile the daily deposit. Another item that was addressed was the collateral assignment agreement with the First State Bank, which Wischman stated has since been remedied. With respect to the General Fund, Wischman reported that the revenues exceeded expenditures by $398,462. Of the City's General Fund Balance, it was stated that $1,376,592 is designated for specific expenditures and the balance of $282,973 is undesignated and can be used for any allowable expenditure. That amount represents about six months of the 2009 expenditures, which is a healthy balance. Frank questioned the fines and forfeitures as there was a decrease in revenue from 2008- 2009. Bartlett explained that this is not always consistent and that also contains county fines. According to Loso, that is an indication that the crime rate is going down. He added that when looking at the Budget to Actual revenues, the trends are favorable. The general fund expenditures did decline from 2008 with 4(a):3 May 6, 2010 Page 2 of 4 the greatest decline in General Government. The largest decrease was salaries which is a result of an open staff position in administration. Wischman stated that the Enterprise Fund is made up of the Refuse, Water, Sewer and Storm Water Funds. Overall, these funds have shown consistent performance over the past several years. He reported that the Refuse Fund showed a slight operating loss in 2009. The revenues in the Water Fund have been consistent over the past few years. This year, the operating income covered a quarter of the depreciation in the water fund. The Sanitary Sewer Fund showed a slight operating income as well. Both the fund's operating revenues and expenditures decreased from 2008. With respect to the Storm Water Fund, Wischman stated that revenues remained consistent; however, the expenditures increased. This fund was able to cover half of its depreciation expenses and remains consistent with 2008. Frank questioned which Fund will be used to finance the 16th Avenue SE Improvements. Bartlett stated that it would be the Storm Water Fund. Staff will look at the fees to make sure that they are covering enough. She added that these costs will not be paid for up front; rather they will be a revenue source attached to the debt issued for the improvements. Therefore the payments will be spread equally the term of the debt issued. He then addressed a few items outlined in the Audited Financial Statements. He began by advising the Council that the City's Financial Statements are classified at the highest level possible which is a clean /unqualified opinion. The 2009 Statements include the new GASB requirement, impact of POST Employment Benefit. The City hired an actuary to complete the analysis and the report illustrated that the City has a minor financial impact for POST Employment Benefits. Overall he stated that the City had a stable year and ended in a similar position as to the beginning. He added that the consistency is due to sound accounting policies. In response to Wischman's presentation, Wick questioned the following sentence relating to the Sanitary Sewer Fund: "The expense decrease was attributed to additional billings paid to the City of St. Cloud, Minnesota, for design costs allocated to the City for the future renovation and expansion of the City of St. Cloud's wastewater treatment plant. " He questioned how that could result in an expense decrease. Wischman replied that the billings that were referred to were from 2008. Frank stated that, as a member of the MN Pension Plan, we know that there will be a major increase to cover some of those plans. He questioned whether or not this will impact the City of St. Joseph. Bartlett advised Frank that there are proposed changes to the contributions and the City should know what those are prior to the start of the budget process. The changes would take effect in January 2011. Frank questioned when the Council will begin looking at fees for refuse, etc. According to Weyrens, they will begin those discussions during the budget process which will begin in October. CITY ENGINEERIPUBLIC WORKS REPORTS — No Report POLICE CHIEF REPORTS — No Report ADMINISTRATOR REPORTS 2010 Lease Agreement, St. Joseph Recreation Association: Weyrens stated that the City historically has leased the ball fields at Millstream to the St. Joseph Recreation Association with the lease agreement covering a five year period. The Lease agreement identifies the responsibilities of each party and has functioned well over the years. The current lease expired at the end of 2009. Since the softball season is ready to begin, the new lease agreement needs to be executed. The lease agreement is identical to the lease that has just expired. 4(a):4 May 6, 2010 Page 3 of 4 Wick made a motion to authorize the Mayor and Administrator to execute the lease agreement between the City of St. Joseph and the St. Joseph Recreation Association for the term January 1, 2010 through December 31, 2014. The motion was seconded by Symanietz. Discussion: Frank stated that five years seems like a long period of time for a lease agreement. Frank questioned whether or not the public has access to this field as well. Weyrens responded that they do have access. Thene added that there were kids out playing ball there today. The motion passed unanimously. Election Grant: Weyrens reported that the City received an award notice for the Federal Election Assistance for Individuals with Disabilities Grant in the amount of $4,289. The funds are to be used for the installation of handicap push buttons at the St. Joseph Fire Hall. She stated that the request was fully funded. Loso made a motion to accept the grant funds in the amount of $4,289 to install automatic door control switches. The motion was seconded by Symanietz. Discussion: Loso questioned whether or not this would need to now go through a bid process. Weyrens stated that it would not as Thene originally got quote from both Cold Spring Electric and East Side Glass. He will contact those companies to perform the work. The dollar value of the work does not meet the threshold for competitive bidding. The motion passed unanimously. 2009 Audit: Frank made a motion to accept the 2009 Audited Financial Statements as presented. The motion was seconded by Wick and passed unanimously. MAYOR REPORTS — No Report Rassier stated that it had been a tough year so far and he added that he appreciates the work that staff has done as well as the rest of the Council. The Audit shows that these people have done their due diligence. COUNCIL REPORTS aZlFff l Ethics Implementation: Frank questioned the implementation of the ethics policies that have been approved. Rassier stated that, over the next month, he plans to attend a meeting of each of the various boards /commissions to explain where this all came from. He will have packets available for each of the members. Rassier explained that nothing needs to be signed. The purpose of the new ethics policies is to ensure that the City has the best representation on each of its boards. Weyrens stated that, as people are appointed, they would be given a packet as a handbook for them to use as a guide. Frank clarified that during the Council's discussion, these were inspirational goals and they were not going to be used to remove or criticize a board member. He re- stated that nothing needs to be signed. St. Cloud Joint Planning District Board: Frank advised the Council that he had every intent on attending the last meeting, but was unable to make it due to a conflicting commitment. He has the packet, if anyone is interested. 11001$WE St. Ben's Sewer Agreement: Loso provided the Council with a brief update on the St. Benedict Sewer Negotiations. He stated that they received a letter from their attorney and they have a tentative MOU that they plan to move forward with. The Committee plans to meet again next week to review the proposal. This has been going back and forth, but not going anywhere. Rassier clarified that the fees are paid up to date. Frank questioned if the City's position is to bill them the same as any other commercial user. Loso 4(a):5 May 6, 2010 Page 4 of 4 stated that yes, that is the City's position, but there are some other factors that have come into play as well. WICK Wastewater Treatment Facility — Ground Breaking: Wick advised the Council that he attended the Ground Breaking Ceremony at the new wastewater treatment facility on May 4. He stated that Sabart, Thene and Marthaler were also present. He stated that it was nice to see that things are progressing. He added that the General Contractor stated that they are trying to hire approximately 50% of the sub - contractors from the local area. St. Cloud Partnership: Wick reported that on May 13, as part of the American Recovery & Reinvestment Act, there will be a seminar for lenders as well as small businesses. This seminar will address various programs for financing and start-up costs. He added that there are 19 other organizations in the region that deal with economic development and the Partnership is trying to figure out more regional cooperation amongst them. They have set up a task force to try to get those organizations to work better together. He added that the Partnership will be hosting a "road trip" to Dubuque, IA on May 26 -27. He stated that anyone is invited to attend and if there are questions, they can be fed through him. EDA: Wick reported that the EDA recently reviewed and approved two BFA Applications: St. Joseph Meat Market and Kay's Kitchen. Planning Commission: Wick reported that the Planning Commission will begin review of the Downtown Parking Regulations. He also advised the Council that Mike McDonald resigned from the Commission. SYMANIETZ — No Report Planning Commission Vacancy: Due to the recent resignation of Commissioner McDonald, there is an opening on the Planning Commission. Rassier questioned the Council whether they would like him to look over the applications on file or whether the City should accept new applicants. Loso suggested that he review those already on file. Frank, Symanietz and Wick; however, all agreed that the City should advertise that we are accepting new applications. Rassier agreed and stated that applications would be due by June 4, 2010. Loso questioned the possibility of the Council seeing the applications to see what is out there. Admiourn: Loso made a motion to adjourn; seconded by Wick and passed unanimously. Judy Weyrens Administrator 4(a):6