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HomeMy WebLinkAbout2011 [04] Apr 21April 21, 2011 Page 1 of 9 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, April 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, EDA Director Cynthia Smith Strack Others Present: S.T. Scheeler, Mary & Steve Niedenfuer, Traci Ryan, Jeff Engholm, Harvey & Carol Pfannenstein, Steve Meyer Public Comments: No one present wished to speak. Approval of the Agenda: Loso made a motion to approve the agenda with the following additions /deletions: Delete 8a Temporary Help, Street Sign Reflectivity [No action will take place for this item, but the Council asked staff for a brief update.] Add 9c Rivers Bend — Request for Building Permit Add 9d Laundromat — WAC /SAC Payment The motion was seconded by Symanietz. Discussion: Frank added that he has some minor questions relating to the bills payable as well as the minutes. The motion passed unanimously. Consent Agenda: Wick made a motion to approve the agenda as follows contingent upon Councilor Frank's questions being answered: a. Minutes —Approve the City Council minutes of April 7 and 11, 2011. b. Bills Payable — Approve check numbers 044003- 044055 and EFT numbers 000527- 000532 and 001533 - 001537. The motion was seconded by Loso. Discussion: Frank advised Weyrens of a minor correction to the minutes of April 7, 2011. With respect to the Bills Payable, Frank questioned Weyrens as to when the refuse contract will be up for renewal. She replied that the contract is up at the end of this year and the City will look at bids in October. Frank questioned why there are refuse charges for some of the City's facilities. Weyrens explained that the dumpster at City Hall is included in the Contract at no charge; however, we do pay for a dumpster at other locations such as the Fire Hall, Water Treatment Facilities, and the Public Works Facility. He also stated that the City is currently paying for some analog lines and questioned whether or not those could be dumped and replaced by cell phones. Weyrens explained that there are some lines that cannot be replaced, such as the lift stations. The motion passed unanimously. JOINT CITY COUNCIUEDA MEETING Wick called the Joint City Council/EDA meeting to order. Strack approached the Council/EDA members and stated that they have three items that require action from both the EDA and the City Council. Revolving Loan Fund — St. Joseph Cooperative (d.b.a. Minnesota Street Market): Strack reported that the EDA has received an application for the Revolving Loan Fund (RLF) Program from the St. Joseph April 21, 2011 Page 2 of 9 Cooperative and Prego Properties. She stated that the Cooperative will be leasing space from Prego Properties at the former Loso's Grocery Store. According to Strack, they are planning to open in early June; however, there are some improvements that need to be taken care of before opening to the public. Prego Properties is requesting a loan in the amount of $26,000 to assist with the purchase of freezers /coolers, POS software, resurface the wood floors to usable condition as well as purchase inventory. Strack added that the Loan Review Committee met to review the request and have recommended approval of a seven year loan with an interest rate of 3 %. They have identified that the equipment and inventory purchased as well as accounts receivable will be used as security. She also stated that a promissory note will be provided by Jeff & Stacie Engholm ( Prego Properties). EDA ACTION: Skahen made a motion recommending Council execution of the loan agreement for the St. Joseph Cooperative in the amount of $26,OOO.The motion was seconded by Heinen. Discussion: Frank stated that he has had an extended email conversation with a person with financial /family ties to the former Loso Grocery Store and he is very upset about the loss. He stated that he is pleased to hear that the City is aiding in the co -op, but worried that we are destroying the downtown. Davey questioned whether or not they need to clarify any points made by Strack related to the loan conditions. Wick stated that they are part of the full loan documents. The motion passed unanimously. COUNCIL ACTION: Loso made a motion to accept the recommendation of the EDA, authorizing execution of the loan agreement for the St. Joseph Cooperative in the amount of $26,000 for a term of 7 years with an interest rate of 3 %. The motion was seconded by Symanietz. Discussion: Schultz questioned Strack as to what the business subsidy policy is and how he can get a copy. Strack replied that she can get him a copy. The motion passed unanimously. Public Hearing: TIF District 2 -2, St. Joseph Meat Market: Weyrens stated that the purpose of the hearing is to consider the proposed creation of TIF District 2 -2 and the proposed adoption of the TIF Plan relating thereto. At this time Mayor Schultz opened the Public Hearing. Frank advised the Council that he received an email from Mike McDonald relating to the proposed TIF District. Strack advised the EDA and Council members that the proposed TIF District is for the downtown area and will be for a period of nine years. She stated that the purpose of the proposed TIF is to allow for the $354,000 expansion to the St. Joseph Meat Market processing and retail facility located at 26 1st Avenue NW. The project includes a 1,898 square foot addition to the retail space and an additional 1,104 square feet of new cooler space. The proposed expansion will allow the facility to process meat products at the retail shop rather than at the location on Minnesota Street, resulting in productivity gains. She stated that the goal of the expansion is to ensure long -term viability of the establishment and to retain jobs within the community. According to Strack, the applicant is reporting a $70- 80,000 gap in funding. Preliminary projections estimate available TIF in the amount of $40,500 based on an increase in the estimated market value of $238,200. The City has a policy to issue pay -as- you -go TIF, rebating 95% of available increment for the allowable nine year period. Strack read the email that was presented in the form of public testimony. In the email, McDonald stated that there appear to be some errors within the TIF document. In response to McDonald's email, Strack stated that she shared his concerns with TIF Consultant Tracy Ryan prior to the meeting. Ryan approached the members to speak in response to McDonald's email. She stated that it was not an oversight. There are two different projection schedules, the first one only relates to the Meat Market Expansion. She added that Exhibit 3(a) includes the Meat Market as well as any potential projects in that TIF District. By providing a second TIF, it allows the City to capture the increase for the entire project. Ryan added that the budget will only allow you to spend the lower amount if projects are not included. The total of $85,894 includes the project as well as future development. In conclusion, Ryan advised the April 21, 2011 Page 3 of 9 members that the TIF Plan gives authority to approve assistance; the Development Agreement lays out the specifics. Schultz closed the public hearing at 7:20PM EDA ACTION: Skahen made a motion recommending that the City Council approve the final TIF application and execute the Resolution adopting the TIF District 2 -2 as well as its financing plan. The motion was seconded by Davey and passed unanimously. COUNCIL ACTION: Loso made a motion to accept the EDA recommendation to authorize execution of Resolution 2011 -009 Approving the Creation of TIF District 2 -2, and the adoption of the TIF Plan relating thereto. The motion was seconded by Wick and passed unanimously. Public Hearing: TIF District 1-4 Spending Plan: Weyrens stated that the purpose of the hearing is to consider the proposed adoption of a spending plan for TIF District 1-4 at which time Schultz opened the Public Hearing (7:21 PM). Strack provided the members with some background relating to the request for the proposed spending plan. She stated that, in 2010, the MN Jobs Bill was signed in to law. That bill authorized the transfer of excess revenue from existing TIF districts to other areas within cities for the promotion of economic development activities. According to Strack, TIF 1-4 has excess revenue which is available for redistribution within the City. There is approximately $46,000 available. She stated that a spending plan for the excess revenue has been developed and there are two projects that may benefit from the proposed spending plan: • St. Joseph Meat Market: Approximately $27,000 could be used to assist the Meat Market with their expansion project. • Millstream Shops & Lofts: Approximately $20,000 could be used to assist the Millstream Shops & Lofts with bringing a new restaurant (Whitehorse) to the end cap of the development. Strack stated that the construction must begin prior to July 1, 2011 and expires on December 31, 2011. She added that both of these projects are ready to go and both will enhance the revitalization of the downtown. The public hearing was closed at 7:26PM. Frank stated that he was under the impression that the addition of the Whitehorse Restaurant to the Millstream Shops & Lofts was only tentative at this time. Strack replied that there is a signed letter of intent, but added that there are some details that still need to be worked out. Loso expressed his concerns related to parking as a result of the proposed Restaurant in the downtown area. Strack advised the Council and EDA that she would love to work with them in the future to prevent parking shortages on a long term basis. She explained that Millstream Shops & Lofts was developed as a PUD with a mixed use of both commercial and residential. Of the potential commercial space, 20% was to be used for a potential restaurant and the remaining space to be used for other general retail and office space. Parking was discussed when the original project was approved back in 2004/2005. Parking is located in the back of the building and they also discussed the possibility of renting other parking stalls. EDA ACTION: Frank made a motion to recommend that the City Council approve the Spending Plan for TIF District 1-4 and execute the Resolution adopting such Plan. The motion was seconded by Skahen and passed unanimously. COUNCIL ACTION: Symanietz made a motion to accept the recommendation of the EDA and authorize execution of Resolution 2011 -008 Adopting a Spending Plan for TIF District 1-4. The motion was seconded by Wick. Ayes: Symanietz, Wick, Schultz, Frank April 21, 2011 Page 4 of 9 Nays: Loso Motion Carried 4:1:0 Wick stated that the Joint EDA/City Council portion of the meeting was adjourned. Financial Report: Bartlett provided the Council with the 1s' Quarter and March 2011 Financial Reports. She advised the Council that the 2010 year end accruals have been reversed and are reflected in the reports, resulting in some negative balances. She stated that once we get more activity, the negatives will go away. She added that since these reports were compiled, St. Ben's has paid their invoice for 2010 sewer usage. Bartlett advised the Council that the 2010 Audit is coming close to completion and will be presented in May along with the annual Debt Management Study. Bartlett stated that the City's cash position is down approximately $330,000 from the beginning of the year. That is due to spending down the working capital, utilities only reflecting one month of receipts and other expected revenues not to be received until summer. She added that the 2nd quarter numbers will be up again. The cash position represents 15.5 months of the year's expenditures and the general fun_ d represents 6.4 months of expenditures. Bartlett added that the General Fund spent down approximately 18% of the 2011 budget and received only 1 % of the revenue budget. She explained that staff is well aware of the fact that the City is close to budget with snow and ice removal; however, there is some money left for when December comes again. She also stated that the Enterprise Funds only show one month of activity; however three months of expenses have been incurred. That is due to the fact that the City bills utilities on a bi- monthly basis. Frank questioned whether or not the St. Cloud charges have been reflected in the reports. Bartlett responded and stated that we are paying for sewer lining, treatment plant expansion, etc. The reports recognize a note payable to St. Cloud for the sewer lining over 10 years and the PFA loan for the treatment facility expansion over a period of 20 years. Previously, the Council asked for an update on the water fund. She stated that, so far, there have only been operational costs; however, the first debt payments are due on June 1. The City, YTD, has not collected any WAC /SAC fees. Bartlett added that Coborns was recently billed for their WAC /SAC fees and that bill of $69,000 is due on Jun 1. Loso questioned the $86,000 in interest revenue that was moved into this fund. Bartlett replied that that was done in 2010 and will appear on the Audit. With respect to the CIP, she stated that there were a few projects completed this year that were approved by the Council in 2010 and were not able to be completed prior to 2011. One example is the Millstream Pond Dredging that was completed in March. Wick questioned the comment which states that "the cash position represents 15.5 months of the year's expenditures ". Weyrens explained that the total cash position includes all funds — fire, bond funds, etc. Frank questioned the market value of the commercial properties as many residential properties have seen a decline. Bartlett replied that the commercial side has held steady. The audit chart will show the market value trend. She added that the tax rate has remained at the same level as well. Frank made a motion to accept the 1St Quarter and March 2011 financial reports as presented. The motion was seconded by Symanietz and passed unanimously. CITY ENGINEER REPORTS 16'h Avenue Storm Drain: Sabart stated that, at the end of the construction season last year, the City Council decided to solicit quotes to correct a drainage issue along 16th Avenue behind the Vogel and Peuringer properties. They have been experiencing drainage in their back yards due to the Liberty Pointe Subdivision. Sabart stated that staff solicited quotes from JR Ferche as well as C & L Excavating to construct a small section of storm drain. The lowest quote came from C & L Excavating. Staff is now April 21, 2011 Page 5 of 9 looking for direction from the Council as to whether or not they want to proceed. He stated that staff has not yet discussed any cost sharing. Loso stated that all of the issues are taking place on private property. According to Sabart, the plan is to construct this along the public drainage and utility easement. He added that the Outlot was previously dedicated to Vogel and Peuringer to allow them access to their garages. Loso then questioned the public benefit of the project to which Sabart replied that the project would help mitigate drainage from the adjoining subdivision. He added that, when Liberty Pointe was constructed, they did not do the typical grading. Loso then posed the question as to whether or not there were drainage issues prior to development. Sabart explained that "yes" there was drainage issue prior to development; however, it did get worse after the development occurred. Frank questioned whether or not more could be assessed to the Liberty Pointe Homeowners Association. Sabart replied "no ", the lots are owner occupied and the yards were already established. Currently, there are no unbuilt homes or unfinished grading. As a result, there is nothing that indicates that the Homeowners Association would be responsible for the drainage issues. Frank questioned the past desire to preserve the trees, he questioned who wanted that. Sabart replied that it was a combined interest of the developer as well as the abutting property owners. Frank then questioned whether or not it would be reasonable to shared the project costs between the City and the affected property owners. Sabart replied that this could be a common approach if there is a localized benefit associated with the project. He stated that he is unsure as to whether or not there is a willingness to pay. In fact, he doesn't anticipate a big willingness to pay due to the fact that this was enhanced by development. Wick stated that there are similar issues in other developments. Wick questioned the possibility of using the contingency funds from the 16th Avenue project. Loso feels that, by doing so, the City is setting precedence. By looking at the issue, Sabart believes that this is the best solution to provide relief to the property owners. He added that another option may be to clear some trees and create a swale; however, the idea of extending a small storm drain from the boulevard on Baker Street E and running it south along the common plat line between the properties seemed to be more feasible. In conclusion, Sabart questioned the Council as to whether this is a cost share or whether the Council wants to accept this project as a City cost. Wick questioned whether or not this project could be paid for using excess funds from the 16th Avenue project. Schultz stated that the issue at hand existed prior to the Liberty Pointe Development. It seems as though the drainage issues are seasonal. Sabart questioned what the Council would like him to do next. Based on some discussion, Frank stated that it seems as though there is a sense of majority saying that it would be fair to have some cost sharing. Frank suggested that Sabart introduce the project to the homeowners. Loso stated that, in his opinion, there needs to be some cost sharing based on the benefit rule to avoid setting precedence. Thene and Weyrens advised the Council that there are other drainage issues throughout the City and staff receives calls on a weekly basis. Thene added that there are lots of drainage complaints on Hill Street to which Loso stated that the property owners chose not to pursue storm sewers when that project was completed. Sabart stated that the City is involved in the design of new subdivisions, but not the grading of the individual lots as they are built. Decisions on individual lots may not get the same oversight with respect to grading. As a safeguard, Thene suggested that the City get before and after lot surveys to look for these types of issue. Loso re- stated that he would like staff to talk to the property owners about a possible cost share. Sabart explained that all three property owners have issues; however, to a varying degree. Loso added that the Council will be discussing the assessment policy and stated that most cities have a way to address this issue. According to Sabart, he anticipates a low acceptance to cost sharing. _Park Terrace — Assessment Appraisal: Previously, the Council authorized staff to solicit quotes for appraisal services for the proposed Park Terrace project. Since then, staff has identified two appraisal services. Both of them were contacted and given a project description and staff has solicited a proposal from both. Staff requested a sample product of their work. Sabart stated that staff is impressed with the credentials of Julie Schwartz from Lakes State Realty (LSR), thus they are recommending that the April 21, 2011 Page 6 of 9 Council hire LSR to complete an assessment analysis for the proposed improvements. Loso agreed and stated that he was impressed by LSR. The estimated cost of the LSR analysis is $16- 17,000. Staff also received a quote from Nagell Appraisal at $4,900. Weyrens stated that the there is a huge cost difference, but she believes that LSR would be money well spent. It was stated that Schwartz (LSR) has also done extensive work with the LMC and has shown no bias one way or another. Weyrens stated that staff is trying involve the residents in the beginning of the project to help provide an understanding and need for proposed projects. The Council will also be discussing a long term assessment policy to make the process clear for the residents. There was some concern about whether or not the City is looking to hire an assessor to show that the residents will get value. Sabart stated that, ethically, that cannot be done. Schultz made a motion to authorize the hiring of Lakes State Realty to complete an assessment analysis for the proposed Park Terrace Improvements at a cost not to exceed $ 17,000. Frank seconded the motion contingent upon this being a fixed with an hourly cost after a certain point and her presenting her findings at a public meeting. The motion passed unanimously. PUBLIC WORKS DIRECTOR REPORTS Street Sign Reflectivity: Thene reported that the State of MN has adopted new FHWA standard requiring agencies to maintain traffic signs to a minimum level of retroflectivity along all roads. He stated that The City needs to identify the all the signs by the end of the calendar year and implement the required changes no later than December 2013. He added that the area Public Works Directors will be meeting next week to discuss this and possibly find cheaper ways to get this done. They discussed the possibility of having students come in to do the work and then they would be able to put this on their resume. Frank stated that this would be a good example of how the area cities could share the costs. Symanietz questioned the recent signs that have been donated by the Lions. Thene reported that the Lions donated $1,500 last year. All of the signs along Minnesota Street have been completed, but there are some along College that need to be done yet. He added that the City will be putting street signs on top of the stop signs, using only the one post. Weyrens added that, in the past, the Lions have paid for all of the street signs. Schultz stated that he will take this request back to the Lions to see if they would be interested in assisting the City with this project. He also stated that the APO has a fund for the MTC and this may be an appropriate use of those funds. He directed Weyrens to contact the APO to check availability of those funds. Frank questioned whether or not staff will look at what signs need to be there and those that do not. Thene stated that they would be doing that. He stated that some signs are old and some, such as speed limit signs, do not necessarily need to be posted. ADMINISTRATOR REPORTS Greater St. Cloud Development Corporation: Weyrens reported that more information will be coming to the Council in May with respect to the new Greater St. Cloud Development Corporation. Wick added that the new organization is up and running now and stated that the Chair and Board members have been chosen. Symanietz again stated that she would like to find out what the old organization has done for the City, in the past. Loso agreed and stated that, he too, would like specifics on how St. Joseph has benefited. Weyrens advised the Council that this will be brought back at the May 5 meeting. Compost: Weyrens stated that, recently, she has reached out to St. Wendel Township to look at the bigger picture as well as ask them about funds from prior years. She asked for the Council to confirm that this is what they have directed staff to do. She stated that the St. Wendel residents are upset about the fact that they are unable to use the compost this year. Weyrens advised the Council that she talked to Carl Stitch and has not yet heard back from him. The residents are now threatening to protest against the St. Joseph businesses. Frank questioned what Sartell does. It was stated that both Sartell and Sauk Rapids allow those townships that they have Orderly Annexation Agreements with to use the compost. Weyrens stated that it is not about the money, rather the lack of space. Loso stated that St. Wendel is accountable to their residents and this change is a result of their unwillingness to act. Symanietz questioned whether or not the City continues to send out bills to them to which Weyrens stated we have stopped as the interest is greater than the amount of the invoices. Schultz questioned whether or not we April 21, 2011 Page 7 of 9 will run out of space if we allow them to use the site this year. Thene responded to Schultz and stated that we should be okay for this year; however, he advised the Council that there is an encroachment issue onto an adjoining piece of property. Schultz stated that the Township was given plenty of warning. He suggested giving them a pass for one more year with the stipulation that we ask them to come on board to find a regional solution. If they choose not to come on board with the City and Township to find a solution, they will have nine more months to find a different alternative. Wick questioned whether or not we need to amend the fee schedule since that was removed from the schedule. Weyrens responded that we can amend the fee schedule. It was stated that they may have the space that could be used as a regional site and thus we need to work with them. Weyrens stated that Sartell charges the Townships $55. That seems to be a comparable rate. Frank made a motion to allow St. Wendel residents to use the compost site for one more year at a rate of $55, contingent upon them working with staff to find a regional solution. The motion was seconded by Wick. Discussion: Loso suggested that a letter be sent to the St. Wendel Township Clerk and Board Members notifying them of the City's position. He added that a letter should also be given to each of the residents as they pick up their permit. Schultz clarified that this is their last year to use the compost unless they work with staff. Ayes: Schultz, Wick, Frank, Loso Nays: Symanietz Motion Carried 4:1:0 Rivers Bend — Building Permit Request: Weyrens reported that the Rivers Bend Developer has had an opportunity to sell another lot providing the home can be constructed and completed for occupancy by August. Currently, the developer is unable to secure a second building permit until the permanent road is completed. Therefore, they are requesting permission to secure two building permits. Wick made a motion to authorize the developer to secure two building permits for Rivers Bend Plat 2 before the permanent road is constructed to allow for the construction of a model home and a custom built home. The motion was seconded by Symanietz and passed unanimously. Laundromat: Weyrens explained that the Building Inspector has been working with the developer of the proposed Laundromat. Previously, the City has delayed WAC /SAC fees for one year. The total amount is $17,225. Through discussions, the developer has requested to pay for those fees over a period of 12 months. Weyrens stated that the developer is not disputing the amount of the fees, rather asking to pay it off overtime. Loso made a motion to allow the developer to pay for the WAC /SAC fees over a period of 12 months, with payment arrangements being determined by staff. The motion was seconded by Frank. Discussion: Schultz questioned whether or not other cities allow for this. Weyrens responded that some make some provisions for residential, but not commercial. Weyrens questioned whether or not the Council would like to set some benchmarks for this. She suggested possibly requiring developers to prove credit worthiness if the balance is over $10,000. She suggested using this as a basis to bring a policy back to the Council.. The motion passed unanimously. MAYOR REPORTS Area Legislators — Town Hall Meeting: Schultz reported that he attended the Town Hall meeting with the six area legislators. Each Legislator spoke on a variety of issues. There seemed to be a lot of complaining with few solutions. April 21, 2011 Page 8 of 9 Fire Relief Fund Meeting: Schultz advised the Council that he, along with Weyrens, attended the Fire Relief meeting at which it was reported that the Fireman's General and Retirement Funds are solid. APO Executive Meeting: Schultz stated that he attended the APO Executive Meeting. They spent most of the time discussing the Transportation Bills. They approved sending Scott Mareck to the MN Transportation Alliance event in Washington to talk about the safe, affordable, flexible transportation act. This will take place in early June. They also discussed the possible approach to other regions about some possible formula changes as our money pool is shrinking. He also mentioned that Kirby Becker has moved on and is now working for MN Dot. Schultz stated that there will be no regular APO Meeting and requested that the APO Executive packet be distributed to the other Council members. Mayor's Bike Ride: Schultz advised the Council that he will be participating in the Mayor's Bike Ride to be, held on June 4 in St. Cloud. 2010 Audit: Schultz reported that he, along with staff, met with KDV and the final audit report will be presented on May 19. COUNCIL REPORTS FRANK Council Workshop: Frank questioned whether or not the date has been set for the Council Workshop. He stated that he likes the "Farm to Market" idea and would like to share that at the Stearns County meeting on Thursday. Transportation: Frank reported that he would like to see some publicity on the transportation opportunities that are available in St. Joseph to build some ridership. Park Terrace: Frank questioned whether or not the Park Terrace utilities, etc were built wrong in the 60's when they were originally constructed or whether those were the standards at that time. Loso stated that St. Ben's was responsible for that project and the City, at that time, was a village. Frank questioned the possibility of doing this project in stages rather than all at once. He questioned the possibility of saving the curb and gutter if it appears to be in good shape. He also questioned whether there are any other grant options available. Sabart explained that they, SEH, have staff that works to strictly identify loans or grant opportunities available to the City. Weyrens clarified that the public hearing was closed, but action was tabled. 59�11w. Park Board: Loso reported that John Anderson, Park Board Chair, reviewed another Park Board application to which Weyrens stated staff has not yet received a recommendation. Symanietz reported that Steinkamp recently advised her that she would be interested in coming back to the Park Board if there were openings. Sharon Young recently contacted the City to see whether or not her application was approved to which she was advised that, when approved, it would be on the consent agenda. WICK EDA: Wick stated that the EDA recently met and they have had some busy meetings recently. The Rental Housing Work Group met yesterday and there was a good turnout of landlords. They will provide a presentation to the Council on May 5. SCEDP: Wick reported that the St. Cloud Economic Development Partnership held their last Board Meeting and seized operations on May 29 and it was then turned over to the new organization. He stated that more information will be presented to the Council on May 5. April 21, 2011 Page 9 of 9 Adjourn: Symanietz made a motion to adjourn at 9:05PM; seconded by Wick and passed unanimously. udy eyrens nistrator