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HomeMy WebLinkAbout[04a] MinutesMy of ST. JOSEPH Council Agenda Item 4(a) MEETING DATE: August 1, 2011 AGENDA ITEM: Minutes — Requested Action: Approve the City Council minutes of July 21, 2011. SUBMITTED BY: Administration ATTACHMENTS: Request for Council Action ......................................................... 4(a):1 -2 DRAFT CC Minutes — July 212011 ........................ ......................4(a):3 -10 REQUESTED COUNCIL ACTION: Approve the City Council minutes of July 212011. 4(a):1 THIS PAGE INTENTIONALLY LEFT BLANK 4(a):2 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, July 21, 2011 at 7:OOPM 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 City Attorney Tom Jovanovich Others Present: Dean & Karen Schenk, Phil & Rebecca Mulvaney, Roger Neils, Mike Gisler, Diane Weick, Jennifer Steinkamp, Steve Johnson, Tom Klein, S. Thomasette Schuller, S. Kara Hennes, Norm Hanson, Jeff Taufen, Justin Honer, Bruce Hemmesch, Ellen Wahlstrom, Janet Nadeau, Patricia Czech, Julie Schwartz PUBLIC COMMENTS TO THE AGENDA Ellen Wahlstrom, 409 a Avenue NE, approached the Council to speak regarding the Assessment Policy which was passed at the last meeting. She feels that it is an improvement over having nothing in written form. She also feels that doing a market value study prior to the project is a good move. She suggested that the Council entertain the idea of putting together a task force to put together a road assessment policy which brings the City into the 21st century. According to Wahlstrom, there is still a lot of room for changes. She suggested that the task force consist of a representative from the City Council, Staff, City Resource People /Consultants, business owners and residents. Wahlstrom added that this would give residents some ownership in the policy. Approval of the Agenda: Frank made a motion to approve the agenda as presented; seconded by Symanietz and passed unanimously. Consent Agenda: Loso made a motion to approve the consent agenda as follows with minor corrections to the minutes of July 7, 2011. a. Minutes — Approve the minutes of July 7, 2011. b. Bills Payable — Approve check numbers 044202- 044243 and EFT numbers 000548 - 000552(Payroll) and 001540- 001541(Accounts Payable). c. TIF Reports — Accept the 2010 Reports for the TIF District 1-4 and 2 -1 authorizing the same to be published. d. Interim Use Permit — Authorize the Mayor and Administrator to execute the findings of fact issuing an Interim Use Permit to Mike Deutz/Deutz Properties for property located at 119 1st Avenue NE. e. Interim Use Permit Renewal — Accept the Recommendation of the Planning Commission and renew the Interim Use Permits as presented. The motion was seconded by Wick and passed unanimously. Graceview Estates —Agreement to Accept Improvements: Weyrens reported that in 2010 the Council appointed a sub - committee to review the concerns of the Graceview Homeowners Associations as it relates to private infrastructure and the distribution of the 2005 Cloverdale Assessment. The Council presented the draft agreement to the Council in July and the agreement presented at this time is the final draft with the corrections as requested by the City Council. The Graceview Homeowners Association has provided the City with an executed agreement, agreeing to the terms of the City. The agreement requires the Association to pay for the seal coating of the streets in two payments, with the first in 2011 and the second in 2012. In addition, parking will only be allowed on one side of the streets, winter parking regulations will be enforced, mail boxes will all be on one side the street, the Association will continue to pay for street lighting and the City will be provided with easements for the roadways and easement. 4(a):3 Loso made a motion to authorize the Mayor and Administrator to execute the Agreement between the City of St. Joseph and the Graceview Homeowners Association identifying responsibilities. The motion was seconded by Wick. Discussion: Loso stated that the City has incurred a lot of costs relating to this and this issue was brought up for discussion by the Association. The agreement does not include any language for the City to recapture those costs. He questioned whether the City has any legal right to recapture those costs. Jovanovich replied that in order to recoup those costs, it would have had to be a part of the agreement. He added that the City would have the option to accept the agreement only if they were willing to pay for those costs. Symanietz stated that the Association is in financial trouble, thus, they do not have a lot of money. She stated that several of the lots are empty and some of the homes are not finished. According to Loso, they came to the City and requested that the City consider taking over the streets and utilities and the taxpayers have incurred a lot of costs for that. Wick, being part of the subcommittee, stated that there were two different sides to this discussion and the group was able to come to an agreement. He stated that this was headed towards a lawsuit and this was cheaper for the City than the alternative. Frank agreed with Loso; however, he stated that it should have been addressed earlier in the discussions. This has been a learning lesson for the City. The motion passed unanimously. Public Hearing, Special Assessment Reallocation: Schultz called the hearing to order at which time Weyrens stated the purpose of the hearing is to consider, and possibly adopt, the re- allocated Cloverdale Assessment. Previously, the Graceview Estates Homeowners Association common area was assessed for the improvements to 7th Avenue SE (2005 Cloverdale Estates Project). Weyrens stated that the proposed reassessment would reallocate the exact cost that remains on the books today. She stated that staff has followed the 429 process for assessments and the residents were asked to sign a waiver which states that they would not contest the benefit or the amount. Jennifer Steinkamp, 544 Graceview Loop, approached the Council in favor of the proposed reassessment. She stated that she returned her signed waiver. Steinkamp feels that this is more fair and equitable for the residents. She urged the Council to vote in favor of the reassessment. Patricia Czech, 515 Graceview Loop, spoke to the Council and stated that she is in favor of the reassessment. She stated that this will now be an item for negotiation when a house is sold. Roger Neils addressed the Council as the Attorney for the Graceview Estates Homeowners Association. He stated that this issue was brought to the City for discussion in August of last year. Neils stated that there are several reasons for the reassessment, but the main reason is to bring the assessment where it should have been in accordance with the tax policy of the state. This is also in accordance with the City's new Assessment Policy. He added that if the Association was unable to make the payments, it would eventually become a City cost and be absorbed by the City. The Association is only able to collect from those that are willing to pay. By reassessing the costs, each individual lot would be assessed, including those that are in default. He concluded by stating that this is the best and most equitable method for everyone. Diane Weick, 607 Graceview Loop, spoke to the Council as a homeowner as well as the president of the Association and stated that she is in favor of the reallocation. Due to the number of undeveloped lots, the association is operating at 75% capacity for dues revenues. Weick concluded that this is the most cost effective and equitable way of doing this. Bruce Hemmesch, 12th Avenue SE, approached the Council and shared his concerns with the holding ponds in Graceview Estates. He stated that he has seen kids rolling in the water and he is afraid that someone is going to get hurt. He suggested having a fence around that area. The public hearing was closed at 7:20PM. 4(a):4 Loso made a motion to authorize the Mayor and Administrator to execute Resolution 2011 -015 reallocating the 2005 Cloverdale Assessment. The motion was seconded by Symanietz and passed unanimously. Liberty Pointe — Public Hearing, Special Assessment reallocation: Schultz opened the public hearing and stated the purpose of the hearing is to consider, and possibly adopt, the revised assessment o the cost of improvement no. SEH No. STJOE 11062, improving 16th Avenue SE between a point 100 -feet south of Dale Street East and Minnesota Street East by constructing grading, storm sewer, bituminous street with concrete curb and gutter and turf improvements. Weyrens stated that, similar to Graceview, Liberty Pointe also has some common area that was previously assessed. She advised the Council that waivers were sent out to those residents as well and most of them were returned. They also have some bank owned properties as part of the association. Janet Nadeau, 1707 Dale Street E, approached the Council and asked for some clarification on the letter that was sent out. Weyrens explained that a final assessment notice will go out to the residents and they will have thirty days to pay the assessment without interest. The public hearing was closed at 7:30PM Wick made a motion to authorize the Mayor and Administrator to execute Resolution 2011 -016 reallocating the 2010 16th Avenue Assessment. The motion was seconded by Symanietz and passed unanimously. Public Hearing, MS4 Storm Water Plan for the Year 2010: The purpose of the hearing is to review the City's Storm Water Pollution Prevention Program (SWPPP) for 2010. Weyrens stated that a large part of the program is education and outreach. Thene reported that the City participates in a group known as "Central Minnesota Water Education Alliance ". They hold monthly meetings as well as provide outreach through newspapers, high school TV ad contests, radio ads and their website. The public hearing was opened and closed at 7:30 as there was no one present wishing to speak. Symanietz made a motion to authorize submission of the 2010 report. The motion was seconded by Wick. Discussion: Frank addressed the concept of rain gardens. He questioned when we go beyond education and include some of these items into our zoning, building codes, etc. Sabart replied that, up until this point, it has been voluntary for developers. He added that not all soil types or topography will be suitable for a rain garden. Frank concluded by stating that he would like St. Joseph to be more proactive, similar to our neighboring cities. The motion passed unanimously. American Legion: Previously, the Legion applied for a Club Liquor License and the Council asked them to verify that they were indeed operating as a "club ". In June, the Council issued an on -sale liquor license to the American Legion with the exception of holding the charges for thirty days to allow staff time to research alternative fees. Staff has surveyed other Minnesota Cities and was unable to find a similar example. It was also suggested that a separate rate be set for the Legion to which staff was advised that they cannot offer a special rate, but they can allow the license to be paid in quarterly installments. Norm Hanson approached the Council on behalf of the American Legion. Since the last meeting, Hanson stated that they have reviewed their books and 65 -75% of its sales are to members, 20% to bonafide guests and the remaining 10 -12% are neither members nor or guests. He stated that they are struggling financially and requested that the Council issue them a full liquor license at a rate of $800. 4(a):5 Loso stated that they had the option to operate as a "club" or with a full liquor license. At this time, the full liquor license has been forwarded to the State for approval. The Council has established that they operate as a full liquor license and he stated that if we reduce the fee for them, it would need to be reduced for the other license holders as well. Loso made a motion to establish the liquor license fee for the American Legion at $2,300, offering quarterly payment options, contingent upon legal review of the payment options. The motion was seconded by Wick. Discussion: After considerable discussion on this issue, Wick stated that they have the option of either applying for a "club" license for a full license. At this point, they are being issued a full liquor license. If they can find a way to meet the "club" qualifications, they can re -apply for the club license. The motion passed unanimously. Market Analysis, Park Terrace: Julie Schwartz approached the Council to present the Market Analysis for the proposed Park Terrace Improvement project. To complete the analysis, she used market data such as paired sales to determine the market value in its current condition compared to a property after such improvements. She used data from projects in St. Joseph as well as St. Cloud as there were similar projects done recently. Based on her research, she found that, for the St. Joseph data set, the average benefit was $7,632 and the median benefit was $6,358. She stated that the St. Cloud data indicated something lower. She looked at projects completed between 2005 - current and concluded that a minimum benefit would be $4,500 up to a maximum of $5,500. Schwartz added that of the 46 properties, 42 would receive the full benefit whereas 4 would receive only sewer main improvements. Those four lots would receive a benefit of approximately $500 as there is no market data to support that. Frank stated that, based on the Assessment Policy, this will be the process going forward. He questioned why it took longer than expected. Schwartz responded that she had a hard time getting information from area cities and is unsure why there was a delay. Jovanovich added that Sue Kadlec from their office was helpful in getting the requested information. Schwartz stated that the City is being proactive by doing an assessment analysis. Many cities are losing in assessment challenges. Jovanovich added that, by statute, if the Council does a pre- improvement appraisal and findings of fact based on that appraisal, the Court will defer to those findings. Sabart questioned the appendix related to the data set He questioned if there is a standard list of items to look at which Schwartz stated that they are generally standard by the industry. Sabart questioned whether there is an adjustment for old streets /utilities vs. new. Schwartz responded that streets are visible whereas, buyers assume that if there are utilities that they work. Loso stated that based on our practices, we assess on a footage basis rather than per unit. Schwartz replied that each City assesses differently and added that a market analysis doesn't go to that extent. Loso then questioned how to tie the results of the analysis to the feasibility report costs. According to Schwartz, her costs do not show the same cost share as an engineering report, the market looks at assessments different that an engineer. Symanietz questioned whether or not this type of analysis would make it harder for people to qualify for a hardship. Schwartz replied that assessment hardships follow a different process and the City Ordinance would govern the procedure and qualifying factors. Weyrens clarified that if street improvements are not done, a benefit could not be shown. Schwartz stated that that is correct; buyers assume that if there are utilities, they are working. Loso questioned the benefit of a property in an outlying area receiving utilities. Schwartz responded that, in that case, an individual can measurably see an increase for City services. 4(a):6 Weyrens stated that it is up to the Council to look at different financial alternatives. Schultz suggested holding a special work session to talk about what this means from a budget perspective. Frank stated that, based on this report, the City's contribution would be much more. Weyrens stated that we need to talk about other options, bonding, etc. The Council will meet in a workshop session on Tuesday, July 26 at 6:30PM to continue discussion of the Park Terrace Improvements. Cable Franchise Transfer: Steve Johnson approached the Council on behalf of US Cable. He stated that he is excited to announce the acquisition of US Cable by Midcontinent Communications. They have been in business for over 50 years, 40 of those in the cable industry. They have built a network that encompasses North and South Dakota. It is their desire to make this 3 -state area more robust. Johnson stated that the current network has 27,000 customers and they have approximately 250,000 customers across their network. Symanietz asked for clarification as to whether or not they bought US Cable. Johnson explained that they purchased the MN and WI systems and the MO system has been sold to Charter. Wick questioned if the concerns outlined by the City Attorney have been addressed to which Weyrens affirmed. There was some concern about the fees increasing after the transfer to which Johnson replied that he has not seen any drastic price increases. Frank stated that the City uses their Fiber Link and questioned whether that would be affected. Weyrens explained that we have fiber connectivity with US Cable. Johnson replied that this is a contract and they are assuming that contract. Wick made a motion authorizing the Mayor and Administrator to execute the resolution 2011 -018 authorizing the Cable transfer from US Cable to Midcontinent. The motion was seconded by Loso and passed unanimously. Wick made a motion authorizing the transfer of the Master Service Agreement (fiber connectivity) from US Cable to Midcontinent. The motion was seconded by Symanietz and passed unanimously. CITY ENGINEER REPORTS CR 2. Trail Extension: Previously, the Park Board was asked to forward a recommendation as to whether or not the City should construct the trail adjacent to CR 2 at the same time that the County constructs the road. The Park Board then reviewed the possible extension and felt it would be a benefit to the City. During their review, they questioned if there were other things that could be done to phase in the improvement as well as ways to make the project more affordable. Sabart presented the Council with an opinion of probable costs showing 2011 construction costs. Phase I Phase II Minnesota St./ CSAH 2 N. Minnesota St. Total Total $679,800 $176,400 $856,200 Total without lighting] $612,800 $123,400 $736,200 Sabart added that he recently visited with Stearns County Staff to check on the right -of -way process. Now that the State Government is back up and running, he stated that it is their intent to begin the eminent domain process. In most areas, the trail can be constructed within their right -of -way; however, some areas may require additional easement to grade a separated trail. Weyrens and Sabart advised the Council that they need direction as to whether or not they should begin the design process to define the right -of -way. Loso made a motion to authorize the design of the trail for the CR 2 and acquisition costs to come from the % cent sales tax. The motion was seconded by Wick and passed unanimously. 4(a):7 EDA REPORTS BFA Grant Program Policy Update: Wick advised the Council that the EDA recently approved some revisions to the BFA Grant Guidelines. The changes are practices that are already in place, but will now be on paper. Loso made a motion to accept the changes to the BFA Grant Guidelines. The motion was seconded by Symanietz and passed unanimously. Demolition Grant Program: Previously, the EDA received a suggestion for implementing a demolition grant program. Wick stated that they will run into this and the purpose of the program is to help with the demolition costs. Symanietz made a motion to adopt the Demolition Grant Policy as presented. The motion was seconded by Wick and passed unanimously. Park Board Allocation: Weyrens stated that, at the previous Park Board meeting, the Park Board requested that the Council allocate 10% of the available funding annually to park activities. Loso stated that he is not sure about this as it is to be used for regional projects. He questioned whether they want 10% of the available funds or 10% of the total. Weyrens explained that any expenditures of more than $3,000 must be approved by the Council. Loso stated that the Park Board budget has changed over the years and they are not receiving the projected funds. Wick agreed with Loso and stated that the sales tax funds need to be used for regional projects. Schultz stated that the Park Board needs some funds of some sort. He questioned what they plan to do with those funds and stated that they need to define regional and get a list of projects for those funds. Loso added that he would like the legislature to define regional. Symanietz advised the Council that those fund can only be used for capital purchases. The Council did not take action on the request. Fire Truck Purchase: Weyrens stated that the Fire Board has been discussing the replacement of the pumper truck that will be 20 years old in two years. Since the Fire Board is a cooperative venture with St. Joseph Township, Weyrens presented the Council with the contract illustrating the responsibilities and obligations of the Fire Board as they relate to spending. The operation of the Fire Department is through a Joint Powers Agreement with St. Joseph Township and St. Wendel Township. The City and St. Joseph Township are equal owners. At this time, the Fire Department is requesting to replace the pumper truck. Recently, the vehicle failed the DOT test. City's receive an ISO rating which is used for determining residential and commercial rates. Part of the rating includes the classification of trucks which is based on ratings. The current pumper truck has an "A" rating and once it is 20 years old the truck drops to a class B. In talking to an insurance agent, he doubted that resident would see an increase in their insurance premium, but a commercial business may. Weyrens advised the Council that bond rates are low right now. The City will be bonding for sewer repairs as well as refinancing the Fire Hall and this could be included in that bond issue. Fire Hall 6 years Pumper Truck 10 years Sewer Repairs 10 years 4(a):8 Weyrens stated that the purchase could be financed with a 10 year equipment certificate and the truck will serve for at least 20 years. The Fire Board is scheduled to discuss this at their first meeting in August. It was stated that the rescue van is scheduled to be replace in a couple of years; however, there are enough funds able to fund that purchase. Wick made a motion to support the purchase of the new pumper truck. The motion was seconded by Frank. Discussion: Loso questioned Chief Taufen as to the year of the truck. Taufen stated that it is a 1995 model. Frank questioned whether it gets a lot of use to which Taufen replied that it is the 2 "d most used truck. He then questioned why the pumper is brought out for rescue calls. Taufen explained that the pumper truck is used for car accidents, CO alarms, etc. Schultz questioned what would happen if the truck is not replaced. Taufen advised the Council that it failed its DOT check last year and it has recently been out of service for maintenance which seems to be increasing. Taufen explained that the process to build a truck takes about 2 years. According to Taufen, there is another department that would be interested in purchasing out truck and they have agreed to give the City a written agreementlintent to purchase. Weyrens stated that the Fire Board must first approve the purchase. Frank questioned what the new truck will have compared to the old truck. Taufen replied that they will not wonder whether or not the truck will operate correctly and it will have additional safety features. Schultz questioned if there are other items that will need to be purchased. Taufen stated that they plan to purchase a rescue van next year, which is fully funded. The ladder truck is not scheduled for replacement until 2021. The motion passed unanimously. Transportation Plan: Weyrens stated that with the conclusion of Field Street and the near end of the North Corridor Study, the transportation plan should be reviewed and updated. The Council has agreed that the plan needs to be updated, but staff is not sure what level the Council would like to go to. The APO recently assisted Sauk Rapids with updating their Transportation Plan and they can provide assistance to the City of St. Joseph as well. Frank stated that he would like to see a very minimalist approach with very few outside consultants to keep the expenditures down. Wick stated that he voted against this plan originally since he had some concerns about the street classifications. Schultz agreed with Frank that he would like to the plan evolve, but the changes should be minimal. He added that he believes St. Joseph is lacking a north /south corridor. Schultz suggested creating a subcommittee consisting of 2 Council members, 1 Planning Commission members, 2 residents at large, APO and staff to work on this. Schultz and Loso were appointed to the subcommittee. Weyrens questioned the Council to the scope of the document. Wick stated that he would like to see the cost estimate for both the plan itself as well as the mapping. It was suggested that a preliminary meeting be scheduled with the subcommittee to discuss the scope. Sabart advised the Council that, due to fiscal constraints, the EIS process for the North Corridor was never completed. The same relates to the Southwest Beltway. MAYOR REPORTS APO Executive Meeting: Schultz reported that he attended the APO Executive Meeting at which they were advised that St. Cloud conceded and gave the University Drive money to Benton County. He also added that the 2012 Fee Structure based on the 2010 Census was presented. Wobegon Trail Expansion: Schultz stated that he recently met again with Michelle Bachman's staff to discuss regional connections with the Wobegon Trail. 4(a):9 COUNCIL REPORTS SYMAN I ETZ Human Rights Commission: Symanietz reported that the Human Rights Commission will not meet on Monday due to the State shutdown. WICK EDA: Wick reported that the EDA meeting scheduled for July 27 has been moved to August 3. The Housing Taskforce Group will meet that same day. LOSO Maintenance Request: Loso stated that he has received calls from residents regarding brush hanging over power lines, etc. Thene stated that he has been working to try and get that cleaned up. Loso added that he would like to see the Ordinance be amended to include a requirement to clean up brush near power lines, etc. Weyrens will bring back information at a future meeting on possible options. FRANK Human Rights Commission: Frank stated that the Human Rights Director was to come out and visit with the Council and suggested that Symanietz contact the director to make arrangements. Wick advised the Council that he will not be at the August 4 Council meeting due to a conflict with work. Ad0ourn: Schultz made a motion to adjourn at 9:40PM; seconded by Wick and passed unanimously. Judy Weyrens Administrator 4(a):10