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HomeMy WebLinkAbout2011 [02] Feb 17February 17, 2011 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, February 17, 2011 at TOOPM in the St. Joseph City Hall, opening the meeting with the Pledge of Allegiance. Members Present: Mayor Rick Schultz, 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: S. Thomasette Schuller, Brian Tadych, Karen Tadych, Matthew Tadych, Tom Klein, Erik Tomlinson, Karen Voz, Mike Hayman Public Comments: No one present wished to speak. Approval of the Agenda: Symanietz made a motion to approve the agenda with the following addition: Add 8e Laundromat MOU The motion was seconded by Loso and passed unanimously. Consent Agenda: Loso made a motion to approve the consent agenda as follows: a. Minutes —Approve the City Council minutes of February 3, 2011. b. Bills Payable — Approve check numbers 043757 -043802 and EFT numbers 000502 -000527. c. Treasurer's Report — Accept the January 2011 Treasurer's Report. d. Gambling Report —Accept the 4t' quarter 2010 Gambling Report. The motion was seconded by Wick and passed unanimously. Wellhead Protection Plan: Sabart reported that the City has completed the requirements for Part 1 of the Wellhead Protection Plan (WHPP) as required by the Minnesota Department of Health (MDH). The City was notified on December 29, 2010 that Part 1 was accepted and the next step in the process is to conduct a public information meeting notifying local units of government with the drinking water supply management area of the meeting. Erik Tomlinson (SEH) and Karen Voz (MDH) were present at the meeting to answer any questions. Tomlinson provided those present with a brief overview of the process and activity that was completed to meet the MDH requirements for Part 1. The process started with computer modeling identifying the type of aquifer. The City wells are drawn from sand and gravel aquifer which is considered unconfined requiring conjunctive delineation. Tomlinson stated that the purpose of Part 1 is to delineate the area and Part 2 is to manage the area. Currently, the Management Area is very large, but during the Part 2 process the area will be reviewed and redefined. He advised the Council that he will be working with Ms. Voz to develop a plan for Part 2. Voz approached the Council on behalf of the Minnesota Department of Health. She stated that the Wellhead Protection Area indicates a 10 year time of travel. The emergency response area would indicate a 1 year time of travel. She, too, indicated that the Management Area may be reduced if it is determined that the surface water is not influencing the recharge. Voz stated that Part 2 will identify the contaminants and come up with reasonable strategies to deal with those. It will also deal with underground storage tanks, feedlots, etc. The purpose is to find a way to inventory and prevent a contamination to the City water supply. She advised the Council that this is a preventive measure, not a response to a contamination. Due to the City's proximity to the Sauk River, Schultz questioned whether or not the Sauk River Watershed plays a role in this process as a governing body. Voz responded that they, as well as other governmental entities, have already been notified of this. February 17, 2011 Page 2 of 8 Frank questioned sand point wells. Voz explained that, at one time, the City did not have the authority to manage new wells; however, now, the League of Minnesota Cities has said that the City does have some control over new wells. Voz advised Frank that residents must register their sand point wells with the State. Frank then questioned whether there are any potential pipelines that could affect this. Sabart and Tomlinson stated that they are not aware of any. Wick questioned whether the reports for the various wells were normal. Voz replied that they were normal and added that all of the wells use the same aquifer. Sabart added that most of the wells are 100 -150' deep. According to Tomlinson, the wells have more to do with the geology of the area. Schultz opened the meeting to the public and closed it as there was no one present wishing to speak. EDA MATTERS Preliminary TIF Application, St. Joseph Meat Market: Cynthia Smith - Strack approached the Council on behalf of the St. Joseph EDA. She stated that the EDA received a reviewed a preliminary TIF Application for the St. Joseph Meat Market for an expansion to the existing retail facility. Smith - Strack stated that the owners of the St. Joseph Meat Market, Harvey and Carol Pfannenstein along with their accountant Steve Meyer and City TIF Consultant Traci Ryan were also present at the meeting to answer questions. The purpose of the expansion is operational efficiency. Harvey Pfannenstein spoke on his own behalf. He stated that the St. Joseph Meat Market has been in operation for over 50 years of which his has been owner for the past 14 years. Pfannenstein stated that he plans to construct an addition to the existing retail facility which would allow for processing at the same location. Currently they have to transport the product between the two facilities and the addition would increase efficiencies. Loso questioned Pfannenstein whether or not they will be able to accommodate the required parking. Pfannenstein replied that they can accommodate 100 vehicles and are only required to provide 23 spaces. Symanietz questioned whether they will be hiring any additional employees. According to Pfannenstein, they may require additional employees. Smith - Strack stated that the expansion fits with the downtown revitalization and the zoning regulations will be reviewed and met. Smith - Strack stated that the project identifies a small gap, beyond what TIF would capture and the amount could be recovered through use of excess TIF funds from another district. St. Joseph TIF District 1-4 shows an excess revenue of approximately $ 41,000. Legislation that was passed in 2010 allowed Cities to reallocate excess revenue to redevelopment projects but it had to be completed by July of 2011. If excess revenues are not reallocated they are returned to the County for disbursement to the School District, County and State. Loso made a motion to accept the preliminary TIF application for the St. Joseph Meat Market and set the public hearing. The motion was seconded by Symanietz and passed unanimously. Wick made a motion to authorize execution of Resolution 2011 -006 Calling for the Public Hearing on the Adoption of a Spending Plan for Tax Increment Financing District No. 1-4. The motion was seconded by Symanietz. Discussion: Frank asked Strack to explain the public financing options that are available. Strack explained the possibility of using both TIF and Tax Abatement. In this case, she presented the possibility of using excess revenues from TIF District 1-4 which have been saved for administrative purposes. She stated that if these funds are not spent locally, they would be split between the City, County and School District. The motion passed unanimously. 2010 EDA Annual Report: Strack presented the Council with the 2010 Annual Report and 2011 Goals. She stated that, annually, the EDA is required to provide a report to the Council. The 2010 Annual Report February 17, 2011 Page 3 of 8 includes an Executive Summary of the 2010 projects. She stated that the mission of the EDA is to "provide a professional municipal economic development program that assists industrial and commercial development activities which minimize impacts to the environment, transportation system, municipal water /sewer use, and financial resources for the City of St. Joseph ". According to Strack, there are four core functions: • Organizational Development [19% staff time in 2010]: Strack stated that the Organizational Development Function includes the following activities: monthly EDA meetings, special EDA meetings, preparation of packets, preparation of minutes, updating of official minute book, attendance at City Council workshops, preparation and presentation of annual report to the Council, presentations to other entities, goal setting and work planning as well as review of the EDA structure. Infrastructure Development [10% staff time in 2010]: According to Strack, the purpose of this core function is to "set the table" for development. In 2010, this function included work on the I- 94/CSAH2 Gateway Program, Wobegon- Downtown Streetscape /Landscape Plan, Rental Housing Conversion Working Group, creating "shovel- ready" sites, Parkway Business Center Platting, Concept Planning — Gateway & Walz property, create vacant lots in the Central Business District, Finalizing of the "Professional Plat ", Infrastructure Extension to Gateway Property. Business Development [64% staff time in 2010]: Strack advised the Council that this function centers on three general programs: business recruitment, entrepreneurial development and retention /expansion. In 2010, they were successful with the following: followed up with 25 existing business contacts, cultivation of 11 new business contacts, meetings, research and distribute information to 35 businesses, technical assistance to 24 business contacts, business cluster strategy: farm to school, 5 inquiries regarding tax abatement, 10 inquiries regarding tax increment financing, 12 inquiries and 6 awards for the BFA Grant, 15 projects used revolving loan fund program, 1 inquiry regarding JOBZ, 5 inquiries for business planning, finance and management assistance, 3 inquiries for small business association, Minnesota Investment Fund promoted to 3 projects, Mn Jobs Bill opportunity promoted to 10 prospects, Mn Public Infrastructure Grant promoted to 5 prospects. Market Development [7% staff time in 2010]: Strack stated that there are two ways to bring in new dollars: "attract new individuals and /or attract new organizations ". In 2010, the following items were use for Market Development: website maintenance to include "One Stop Business Information" and "Business Toolbox ", Business Builder Breakfast, New flyers for BFA Grant and RLF, presentation of streettlandscape plan to the Chamber, EDA Chair on Partnership Board, Participation in SCAEDP creation of regional economic development strategy, shopping and stopping in to visit with local businesses to conduct outreach and check business status as well as articles in the City Newsletter. Strack concluded by presenting the Council with the goals for 2011. Along with each goal, she indicated which development function that relates to. 1. Extension of sanitary sewer and drinking water to new CSAH 2. [Infrastructure Development] 2. Manage response to economic impact of the implementation of four -year residency requirement at CSB /SJU. [Business Development and Market Development] 3. Market St. Joseph opportunities within greater Minnesota and market available commercial and industrial lots, land, lease space, buildings, etc. [Market Development] 4. Investigate and pursue proactive measures to secure and provide for shovel ready industrial sites and encourage build -out of Parkway Business Center. [Infrastructure Development] 5. Work with property owner to proceed with "St. Joseph Professional Plat". [Infrastructure Development] 6. Continue to work with property owners seeking development of land adjacent to proposed CSAH2. [Infrastructure Development and Business Development] 7. Host at least two events for business owners. [Business Development] February 17, 2011 Page 4 of 8 8. Implement capital improvement projects. [Organizational Development, Infrastructure Development and Business Development] 9. Respond to inquiries and continue proactive follow up of viable leads /prospects. [Business Development] 10. Continue to pursue revitalization within the Downtown. [Infrastructure Development and Business Development] Wick thanked Strack for preparing the report. The report is a road map of where the EDA has been and where they are going. In response to the goals mentioned by Strack, Frank questioned what would happen if the Council were to have different goals. If that is the case, she replied that those need to be discussed. For example, Frank stated that it may be the responsibility of the Council to determine which direction they want growth to go, whether it be along CR133 or 194. Strack stated that, when looking at future development, they first look at the future land use plan included in the Comprehensive Plan. They try to develop industrial land adjacent to current industrial land and develop commercial land near lighted intersections. She stated that there are limited resources available. When there was little movement with the realignment of CSAH2, it did not make sense to talk about development near 194. Strack stated that resources determine development and added that demand will dictate that 194 will develop first. According to Strack, CR133 is a busy road, the price tag is much lower than land near the Interstate and infrastructure is much closer. The problem is that there are only a limited number of shovel ready sites. Strack also advised the Council that, if they are looking for a quicker rate of return, 194 is the best way to go. Frank suggested that this be discussed a future workshop. Based on the annual report, Frank stated that it appears that most growth within the City comes from businesses already there. He questioned how much time is spent working with current businesses versus new businesses. Strack replied that 70% of her time is spent working with those already conducting business in St. Joseph and 30% is spent working with businesses outside of St. Joseph. Frank commented that he is not sure that he is a fan of the rental housing task force; however, he stated that he spent some time with the State Demographer and found that, in the future, it may not be cost effective for people to buy their own homes. It has been said that most young people change jobs every 6 -7 years. Strack advised Frank that the goal of the working group is to determine whether or not there is a way to capitalize by either converting some of the rental homes to vacant commercial space or public parking spaces, etc. There have been some concerns about what to do with large rental spaces that would require a large sum of money to convert to a new use or to continue its use. The big question that they are looking at is, if properties are no longer able to cash flow, what will happen to those buildings. She concluded by stating that the overall goal of the rental housing task force is revitalization. Schultz stated that he would like to see a report from that rental housing task force to the City Council. Schultz asked Strack whether or not she keeps tracks of the City's wins and losses. He would like her to try and pin point why the City is missing some and getting others. Strack replied that the EDA discussed this in January. There are some things such as taxes being too high, utility rates being too high, etc. She suggested putting together some anecdotal information. Frank made a motion to accept the annual report for 2010. The motion was seconded by Symanietz and passed unanimously. 2011 MDG Contract for Services: Wick stated that the EDA reviewed the 2011 Contract for Services with MDG and unanimously recommended the Council accept the 2011 contract for services as presented. Wick stated that MDG has not raised the hourly rate in over three years and are not proposing to do so in 2011. Loso made a motion to extend the MDG contract for 2011, but suggested that the City solicit quotes for 2012 EDA services. The motion was seconded by Frank. February 17, 2011 Page 5 of 8 Discussion: Frank clarified that the City can opt out at any time. Frank questioned Strack to her response to the following: "If the City had more money available, say $70,000 and offered that to MDG, what would they do different ". Strack responded that they would say "Thank you ", but she would suggest that the City hire an assistant to handle the day to day activities of the EDA. She would also suggest that the City spend the extra money on infrastructure to get lots ready for development. The motion passed unanimously. CITY ENGINEER /PUBLIC WORKS REPORTS DNR Trails: Sabart advised the Council that there may potentially be some trail funding opportunities available to the City that could be leveraged for a trail along the realigned CR 2. He stated that, in 2008, the City discussed the possibility of developing a trail in conjunction with the realignment of CSAH2. Since then, staff has identified a possible grant opportunity through the DNR Local Trail Connections Program or the DNR Park and Trails Legacy Grant Program. Previously, it was envisioned that a trail would connect to the Wobegon Trail near Millstream Park at the north end, to the sidewalk on Minnesota Street at 4th Avenue NW and the east end and to the CSAH2 shoulder at 194, or to the intersection of CR51 at the south end. He stated that applications are due to the DNR by March 31, 2011 and, if approved, the project must be completed by June 30, 2013. The question is whether or not the construction timeline would coincide with the County's plan for the reconstruction of CSAH2. Staff has sent a letter to Stearns County to check the status and has not yet received a response. Sabart stated that there are costs associated with submitting the application as preliminary trail exhibits and cost estimates must be included. Loso questioned Sabart as to the estimated cost of the trail to which Sabart replied that the County estimated $250,000. Sabart, on the other hand, believes that the cost may be as much as $500,000. Weyrens added that, if this is a regional trail, sales tax funds could possibly be used. There was some hesitation about spending the money on the application as there is no guarantee that they will receive the funds. Weyrens questioned what the City would have once the application is completed. Sabart replied that they would have exhibits and cost estimates. Symanietz questioned whether or not this was already done by the County to which Sabart explained that they looked a possible line where the trail could go. He stated that this is more involved than a "normal" trail. Wick made a motion to table action on the application for the DNR Local Trail Grant Program. The motion was seconded by Loso and passed unanimously. Schultz advised the Council that he spoke with Mark Bromenschenkel and he stated that he would like to help the City with the CSAH2 project. He asked for the City to get him some information. 2011 Street Improvement: Sabart stated that the City may qualify for the Small Cities Development Program which is an assessment abatement program. He added that this is a program which could be considered for potential assistance to the residents of Park Terrace. This program is targeted to low to moderate income families and not all families will qualify. Sabart also stated that the City may qualify for the State Revolving Loan Fund as well. Water Tower Repairs: It was questioned how long it will take to complete the Water Tower repairs. According to Sabart, the level of repairs that are necessary will determine the duration of the maintenance. The City may need to implement a partial watering ban to ensure that there is adequate supply for domestic use and fire supply. ADMINISTRATOR REPORTS Sales Tax Committee Report: Weyrens reported that the Sales Tax Committee met twice in the last three weeks. Originally, the Committee presented a formula for disbursement based on the ballot questions. That, however, is only one suggestion as to how the funds can be distributed. She stated that the Committee would like to know what the expectation is for the Committee. Weyrens presented the Council February 17, 2011 Page 6 of 8 with a summary of the Sales Tax revenues and expenditures thus far. Schultz stated that he thought the purpose of the Committee was to be an overseer of the funds. Weyrens presented the Council with a Form for Allocation of Sales Tax Funds. Wick stated that the form works well. It was stated that the Sales Tax Committee needs Council approval prior to spending any money. One question raised was why the meeting funds were being paid thru this fund rather than the General Fund. Bartlett stated that these meetings fees were not budgeted in the General Fund and added that the stipends were paid thru the interest earnings. Weyrens suggested that $2,000 be transferred from the interest earnings into the General Fund. Wick advised the Councilors that he doesn't agree with the current formula which states: Transportation 65% Community Facility 22% Parks and Trails 13% Loso and Symanietz stated that the funds should be split in thirds. Schultz replied that he met with the Committee and they based the percentages on the ballot questions and the total value of each category, they were looking for some objective methodology. Frank agreed with Loso and Symanietz and stated that each type of project should receive 1/3 of the funds. After meeting with the Sales Tax Committee, Schultz also questioned the role and responsibility of the advisory committee and who handles the requests. Loso stated that he does not believe that there is a need for the committee anymore. Wick questioned what their purpose is. Loso made a motion to change the formula for distribution so that each type of project (Transportation, Community Facility, Parks and Trails) would receive 1/3 of the Sales Tax Funds, based on total fund received. The motion was seconded by Symanietz. Discussion: Schultz recapped that the City will thank the Sales Tax Committee for their work, the percentages for use of proceeds will be redefined and the Council will be the final determination for all distributions. There was considerable discussion about whether or not the 33% can be used at one time or whether it will be based on the funds available. Wick stated that he agrees with the form requesting use of funds but disagrees with establishing set percentage for each category. He clarified that in his opinion it is earmarking and he does not support that philosophy Ayes: Loso, Symanietz, Frank Nays: Schultz, Wick Motion Carried 3:2:0 Ordinance 84, Summary Publication: Weyrens advised the Council that, previously, the Planning Commission reviewed Ordinances 52.12 and 84 relating to Parking. Ordinance 52 was never approved and needed further review. Ordinance 84 was approved; however, the summary publication was inadvertently missed. She stated that, in order to publish the amendment, the Council must first approve the Summary Publication and the Resolution Authorizing the Summary Publication. Symanietz made a motion to approve the Summary Publication and authorize the Mayor and Administrator to execute Resolution 2011 -004 Authorizing the Summary Publication. The motion was seconded by Frank. Ayes: Schultz, Wick, Symanietz, Frank Nays: Loso Motion Carried 4:1:0 Sewer Use Agreement Update: Previously, the Council reviewed a draft Sewer Use Agreement to which Weyrens stated that there are some changes yet to be made. She stated that the Sewer Rate Ordinance sets the methodology used for billing. For example, if a new charge were to be added, the City could not amend the Ordinance without the approval of St. Benedict. The Ordinance does not prohibit the City from increasing the rates and St. Benedict is like any other user in the City, they have the right to express their opinion at the public hearing setting the rate. Wick questioned the tying of an entire ordinance to one contract user. Weyrens stated that they will work on this further. February 17, 2011 Page 7 of 8 Laundromat, MOU: Weyrens stated that the Building Official has been working with the property owner of 31 Minnesota Street West on the development of a Laundromat. During review of the project the Water /Sewer Access (WAC /SAC) fees came to question. The property owner disagrees with the calculation for the increased use as he does not believe it will generate the water indicated in the ordinance. The City staff proposed execution of a Memorandum of Understanding whereby the property currently has a credit of 2.35 WAC /SAC. Of the credit 2 units are consumed by the existing rental units leaving a credit of .35. The City would charge one unit at the issuance of a building permit, less the .35 remaining credit and the property owner would agree to monitor the water usage for one year and after that twelve months of operation, the average consumption will be calculated. The average consumption will then be applied to Ordinance 44 for calculation of the number of WAC and SAC Units. The developer will have 30 days to pay the additional charges. Wick stated that the City has done this before and feels that this is fair. Wick made a motion to authorize the execution of the Memorandum of Understanding between the City of St. Joseph and Deutz Housing relative to the charging of water and sewer access fees for the Laundromat project located at 31 Minnesota Street E. The motion was seconded by Symanietz and passed unanimously. Cable Upgrade: Weyrens stated that Veenstra spoke to other Cities that have upgraded with Marco and all have had pleasant experiences. She advised the Council that to add the webcast option would be an additional $10,000. She questioned what the Council wants to do. Schultz questioned whether she received a quote broken down by each item to which Weyrens stated that she received a quote broken down by server, annual fees, maintenance, video on demand, sound system, etc. The total cost would be $57,736. Wick advised Weyrens that he would like to see where the funds will come from. Schultz stated that he would like to see the basic infrastructure. Loso believes that the current system works fine and does not think it is fiscally responsible to upgrade the cable equipment. According to Frank, the upgrades would allow staff to integrate with the webpage as well as change how things are posted on the community access channel. This would allow people, without cable, to have access to City Council meetings. Wick questioned the extension of fiber optics to which Weyrens stated that they are also looking at that. According to Wick, the Council must understand that if they proceed with the cable upgrade, they are giving up the extension of the fiber optics. MAYOR REPORTS APO Executive Committee: Schultz reported that he attended the APO Executive Committee meeting at which they discussed the government dollars and state dollars that are available. There are approximately $153 million yet to be allocated from the State and he requested staff work with the APO to determine if the City has any eligible projects for which funding could be requested. COUNCIL REPORTS SYMANIETZ APO: Symanietz announced that the APO meeting for next week has been cancelled. WICK Troop 84: Wick advised the Council that he recently spoke to members of Troop 84 and did a question and answer session. He stated that they may see several of them in attendance at upcoming Council meetings as they work towards their badge. February 17, 2011 Page 8 of 8 Partnership: Wick reported that the Partnership has started the transition to the new format. The transition has created some concern from Cities and what role they will play and what benefit they will receive. In order to facilitate discussion, the Partnership Transition Team is willing to attend Council meetings to clarify the benefits of the Partnership. LOSO — No Report FRANK — No Report Adiourn: Wick made a motion to adjourn at 9:20PM; seconded by Symanietz and passed unanimously. f� Ju We rens / A finis ator