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HomeMy WebLinkAbout2012 [08] Aug 02 I August 2, 2012 , Page 1 of 5 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, August 2, 2012 at 7:00 PM, opening with the pledge of allegiance. Members Present: Mayor Rick Schultz. Councilors Dale Wick, Bob Loso, Steve Frank, Renee Symanietz. Administrator Judy Weyrens. Citv Representatives Present: Finance Director Lori Bartlett, Police Chief Pete Jansky, Public Works Director Terry Thene, City Engineer Randy Sabart. Others Present: Preston Eurele, Gary Grossinger, Telizia Callaway. Public Comments—No one present wished to speak. Approval of Aaenda: Frank made a motion ta approve the agenda; seconded by Symanietz and passed unanimously. Consent Aqenda: Loso made a motion to approve the consent agenda as follows;seconded by Frank and passed unanimously. a. Minutes—Approve the minutes of July 19,2012. b. Bills Payable—Approve check numbers 045571-045608,payroll EFT#000698-000702. c. Gambling Report—Accept the 2"d 4aarter 2012 Gambling Report Stearns Countv Assessor: Stearns County Assessor Gary Grossinger approached the Council to present the annual report of tax values, as the Council has appointed Stearns County as the Assessor. Grossinger presented the following 2012 Assessment Changes by property types: Residential ( 3.70%) Commercial/Industrial ( 2.56%) Apartment 2.90% Agricu Itural (17.89%) Grossinger discussed the process for evaluating and classifying projects as the Statute requires that the assessor actually view each property listed for taxation at a minimum interval of five years. The assessor's office will review property more frequently if there are changes that would have an impact. Grossinger stated that the property values co�tinue to decline as the economy changes or as improvements are added. The MN Department of Revenue requires that property assessments correlate to the market value and must be within 90 to 100%of the market value. Grossinger stated that he is frequently questioned on foreclosure rates and impacts and in 2011 St. Joseph only had 24 foreclosures with the majority of those vacant lots. In looking at New Construction history, the City hit the high-water mark in 2010 with $7 million and last year the total new home construction was$1.3 million which is reflective of the economic times. Grossinger stated that he is aware of concerns relating to tax exempt properties and public ventures such as Gorecki and leasing of dorms facilities; however they are regulated by Statute and are operating under the existing guidelines. The Assessors have discussed needed changes but it would require legislative action and that has yet to occur. Finally, Grossinger introduced Sheryl Foster who will be the Stearns County Staff contact for residential assessments. Loso questioned if the individual tax statements will be simplified so that the average resident can understand the statement. Grossinger responded that the format of the tax statement is dictated by MN Statute with oversight by the Department of Revenue. He too receives numerous calls on the format, but again this is regulated by Statute requiring legislative action to change. Frank questioned if had seen much change in the tax value and assessment rates. Grossinger responded the total tax capacity for St.Joseph has decreased approximately 1%which is better than � - - - August 2, 2012 Page 2 of 5 some of the surrounding communities. Loso stated that he has noticed that a number of communities west of St. Joseph have a significantly higher tax rate than St. Joseph. Grossinger responded that part of the increase is a result of changes to the homestead credit law and the balance is budgetary. Wick questioned when the City will receive the final market value for the 2013 tax year, to which Grossinger responded late October. Budget Discussion Weyrens stated that the City Engineer and Public Works Director have completed preparing the Capital Improvement Plan as it relates to infrastructure, ranking the top eight projects. Weyrens stated on of the difficulties in programing the repairs to the Park Terrace area is the inability to assess at least 20%. The City has the ability to issue GO Bonds provided at least 20%of the project is assessed, short of that the City could issue CIP Bonds,which have a trigger mechanism for residents to request the matter be placed on the ballot. Randy Sabart, City Engineer, and Terry Thene Public Works Director presented the following capital projects: Proiect 1 Sanitarv Sewer Replacement under CSAH 75 2013—The project includes replacing the sanitary sewer pipe west of Kay's Kitchen, under County Rd 75 where the existing 20" pipe is reduced down to 12". As St.Joseph continues to grow this becomes a bottleneck, and is a concern. As the County Rd 2 construction becomes a reality, this would be upgraded and plans are for a 42" pipe under County Rd 75. The next step would be a feasibility study considering future growth and investment. . Proiect 2 Street Overlavs 2013—Sabart stated that in the past the City has not considered street overlays as part of the budget as they have been special assessed with a small tax levy. While the city has prepared a Street CIP identifying street overlay or reconstruction, street projects have not been programed due to budgetary constraints. Staff is concerned that if the City does not start improving some of the streets the expected life span may be reduced to less than the expected 30 years. Proiect 3 Interior/Exterior Water Tower Maintenance 2013-Sabart stated the Council has previously been presented with a repo�t illustrating needed maintenance on the water tower, detaying repairs so that financing can be considered. Originally the City had contemplated constructing a second water storage facility, but due to the economy that plan has been shelved, therefore the downing of the water tower must be coordinated with the College of St. Benedict so that the City can convert to their water supply. Loso stated that it was his understanding that the water tower antenna lease payment were set aside to cover future maintenance. Weyrens stated that the Council allocated a portion to the general fund as well as the water fund. The funds were placed in the water fund used to cover operation expenses inctuded debt payments. Wick questioned if the refuse fund could be used to offset the water repair costs. Weyrens stated that the refuse fund has not been generating revenue for the past five years and the balance in the fund is from past years and if the funds are used for the water tower the City would not have funds for expanding or relocating the compost area. Finance Lori Bartlett stated that water rates are project for a five year time period and with the large debt payments for the treatment facility, it becomes difficult to program large expenditures in the water fund. If the rates were increased to cover the water tower repairs, the increase would be significant. Schultz questioned Sabart as to the risk to the water tower if the project is delay. Sabart responded that waiting an additional year would have low risk based on the findings in the 2006 report indicating minor corrosion. Since the City would have to rely on the College to provide water storage and distribution, the project would be designed during the winter months with construction in spring. Proiect 4 Park Terrace Imqrovements 2014—Project to upgrade the infrastructure, Sabart commented on the financing challenges and this affects the ability to levy special assessments. Schultz August 2, 2012 Page 3 of 5 asked if the process starts all over again from the previous feasibility study. Weyrens confirmed the feasibility study wouldn't change but questioned the Council as to whether or not they fee� market conditions have changed enough to re-evaluate the projected assessments and benefit ratio. Proiect 5 Clinton Villaae Improvements 2015-The streets in Clinton Village nearing 30 years of life and should be scheduled for an overlay. Frank commented since he lives there would only ask basic concerns and when discussion gets to specifics, he would withdraw from discussion and comments. He asked when people are notified and Weyrens explained officially starts with a Public Improvement Hearing and not until something is formalized with the Council starting a feasibility study. Proiect 6 Northland Drive Imnrovements 2014—This is another improvement that has been on the CIP for a number of years. The project includes constructing a sidewalk along Northland Drive, overlying the street and repairing some storm water issues. Schultz confirmed this has been a priority for a sidewalk from the neighborhood to Wobegon Trail. Proiect 7 Monument Siqn 2013—Item discussed with the County Rd 2 bypass implementing or moving the monument at the same time of construction. The council generally agreed this should be a low priority item and may be completed with assistance from the area service clubs. Proiect 8 CBD Allev Improvements 2014—This project includes improving the alleys in the downtown area and could be expanded to incl�xie parking or landscaping. Sabart suggested that if the City is considering expanding or remodeling the existing City facility, the alley projecUimprovements could be tied together for one project. Wick question projects not discussed such as the improvements/repairs to the St. Cloud Regional Wastewater facility/infrastructure. Sabart stated that he is still waiting for information from the City of St. Cloud including timeline and funding commitment. Wick stated that the project projects exceed 1.5 M and questioned how the projects will be financed. Weyrens stated that the financing part becomes difficult as the City is already aware that the total market value of the City has reduced approximately 1%, resulting in a net decrease in revenue of$ 36,000. Projects such as Northland Drive could be funded through MSA funds and other projects will have to rely on tax levies. The Council will have to balance the cost of projects versus the impact on the tax capacity rate. Frank commented on delay on second water tower, as well as questioning if items such as permanent place for the Historical Center or police garage have been included in the budget process. Weyrens and Bartlett stated the next meeting the Council will be reviewing and discussing the CIP for all departments as well as the operational budget. Weyrens reminded the Council that the preliminary budget must be submitted to the Stearns County Auditor no later than September 16, 2012. Once certified the budget can only be reduced. Administrator Reports Construction Manaaement Services—Weyrens reported that the Facility Committee interviewed three firms to provide construction management services for the proposed Government Center. The three firms interviewed included: RA Morton, Winkleman Building and Strack Construction. All three�rms were capable of managing the project with different strengths and weaknesses. While the fee was a consideration, the committee also revised and discussed the Job Superintendent, the estimating track record and process and interview impression. After considerable discussion the Committee recommended the Council extend a contract to RA Morton for Construction Management Services. Symanietz stated that after interviewing and discussing the candidates, she rated the top firm as RA Morton, this based on the recent similar project$ including the City of Sauk Rapids Government Center and St. Cloud Police Headquarters. Wick concwrred stating he also appreciated their program approach and interaction with subcontractors. He further stated RA Morton has considerable government project ' experience. � August 2, 2012 Page 4 of 5 Loso questioned the fee difference between the companies. Weyrens stated that the fee component was divided into two phases, the design and construction. The design fee was a flat fee while the construction fee is based on the total project cost. While RA Morton was not the lowest contractor, they appeared to have the broadest range of experience in similar type projects as the proposed St. Joseph project. Preston Eurele„ RA Morton, approached the Council to discuss the services they provide. Eurele stated that RA Morton as the experience to deliver the project in a timely and cost effective manner. Loso questioned Eurele if the higher fee charged by his company would be recognized by the City in savings. Euerle stated he is confident that his company can generate savings with their experience and add value to the process. Frank made a motion to authorize the Mayor to execute the service agreement between RA Morton and the City of St. Joseph for construction management services. The motion was seconded by Schultr and passed unanimously. Mayor Reports CR 2 Surplus Riaht-of-wav: Schultz reported that he attended the County Board of Commissioners Meeting at which time they considered the request of the City Engineer to sell the excess ROW property formerly occupied by Kings Express adjacent to CR 75. Schultz stated that the EDA may have interest in the considering the property. APO: Schultz reported that he attended the recent Bicycle and Pedestrian Advisory Committee meeting— Wobegon Trail update and reported that the APO has recently filled an open staff position. Council Reports SYMANIETZ Inter4overnmental Meetinq: Symanietz reported that she recently attended the area Cities Intergovernmental Meeting at which Secretary of State Mark Ritsche presented information on the Voter ID amendment. The meeting also'rncluded a presentation from the YMCA and City of St. Cloud regarding the proposed partnership to construct and aquatic center and the Mayor of Sartell briefly discussed the fire and events that occurred at the Verso paper mill. WICK EDA: Wick presented the Council with an overview of the recent activities of the EDA, of which included the option of applying for funding for housing rehab as in 2011. The EDA Director has indicated that she could prepare the application along with assistance from the Central MN Housing Coalition. In 2011 the EDA had received interest from approximately 50 homeowners including rental properties. Loso made a motion authoring the EDA to submit a grant on behalf of the City of St.Joseph to the Central Minnesota Housing Fund for housing rehabilitation. The motion was seconded by Symanietr and passed unanimously. Wick reported that the EDA in conjunction with the St. Joseph Chamber(Travis Moore and Mike McDonald), are in the process of completing a Business Retention Study. LOSO Park Board: The Park Board met and discussed the following: 1) Installing no golfing signs in the City parks; 2)The Wobegon Facility is undergoing maintenance repairs and the parking lot will be closed for 2 days; 3)Scenic Specialties will be planning the Cloverdale tot lot concept and work on this winter; 4)A committee has been formed to plan a winter social event; 5) Archery Range is proposed to be located near the Water Treatment; and 6)Sharon Young reported that the summer ball program included 136 participants. August 2, 2012 , Page 5 of 5 FRANK Meetinqs: Frank reported that he too attended the Area Intergovernmental Meeting and the St. Joseph EDA Meeting as reported by Wick. Adiourn: Wick made a motion to adjourn at$:30 PM; seconded by Loso and passed unanimously. `�f E�/ Jud W ens A inistrator I I I This page intentionally left blank ,i