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HomeMy WebLinkAbout2012 [10] Oct 04 October 4, 2012 Page 1 of 7 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, October 4, 2012 at 7:00 PM in the St. Joseph City Hall, opening the meeting with the Pledge of Allegiance. Members Present: Mayor Rick Schultz, Councilors Dale Wick, Renee Symanietz, Bob Loso, Steve Frank and City Administrator Judy Weyrens Citv Reuresentatives Present: Finance Director Lori Bartlett, Police Chief Peter Jansky, Public Works Director Terry Thene, City Engineer Randy Sabart and City Attorney Tom Jovanovich. Others Present: David Salzer, Mike Deutz, Tom Peck and Preston Eurele Aaproval of Apenda:Wick made a motion to approve agenda removing item 10b,election judge appointment. The motion was seconded by Symanietz and passed unanimously. Consent AQenda: Loso made a motion to remove the item Donations (4d)and would like to discuss (4d)during agenda item 6(The Fire Relief Association --amendment to By-laws).The motion was seconded by Wick and passed unanimously. a. Minute—Requested Action: Approve the minutes of August 2012. b. Bills Payable—Requested Action: Approve check numbers 045722-045817, payroll EFT# 000713-000722 and accounts payable 001 586—001 587. c. Treasurer Report- Requested Action: Accept the August 2012 Treasurer's Report d. Removed. Public Hearinp/Delinauent Invoices: Mayor Schultz opened the public hearing to which Weyrens explained the process for public hearings for d�linquent notices. Public hearings are held twice a year. Weyrens reported there are a small amount of outstanding invoices and all customers have been notified of the public hearing. All unpaid invoices will be certified to the County Auditor for collection with the real estate taxes and shall be payable in one year. There being no one present wishing to speak,the hearing was closed at 7:05. Wick made a motion authorize the Mayor and Administrator to execute Resolution 2012-016 adopting the�nal assessment roll and providing for certification of all unpaid invoices payable in one payment with 0% interest. The motion was seconded by Symanietz and passed unanimously. The Fire Relief Association: David Salzer, St.Joseph Fire Relief Association Treasurer, approached the Council to request amendment of the Association bylaws. The MN State Auditors OfFice has recently released on opinion that requires Associations to establish the interest rate that will apply to interest credit for deferred members. The current by-laws indiCate that deferred members will receive up to 5% interest and the rate is determined by investment earnings. The new opinion requires the City Council establish the actual interest rate and it can be reviewed and modified each year and cannot exceed 5%. The Fire Relief Board has reviewed the opinion and is requesting the City Council amend the by-laws to add the revised language and set the interest rate for 2013 at 0%. Salzer stated that each year, during the third quarter, The Fire Relief Association Board Trustees will determine the rate for the next year and may set the interest up to 5%. Change to the By-laws will be set at 0%and this would only affect only those retiring in the year 2013. This does not affect those previously retired. Newly retired individuals could take out their money and invest it privately. Loso inquired if this was new and what members received last year. Salzer explained last year they received about 5%. Salzer confirmed that the Firefighters have been notified and there was positive feedback. Frank made a motion to authorize to accept the recommendation if the Fire Relief Board and amend the by-laws to stated that the association will annually establish what if any interest will be added to the deferred members account. The Board shall review the annual interest earnings and stability of the account and forward a recommendation to the City Council for interest the coming - October 4, 2012 Page 2 of 7 year. At no time shall the interest rate exceed 5%. Additional the interest rate established for 2013 shall be 0%. The motion was seconded by Symanietz and passed unanimously Fire Relief Donation: Schultz inquired about the deck gun equipment donation from the St. Joseph Fire Relief Association. Salzer confirmed the monies are donations from general fundraising which is a completely separate fund. Symanietz made a motion to accept the donation of a deck gun from the St.Joseph Relief Association. The motion was seconded by Wick and passed unanimously. Committee Report Park Board: Loso reported the Park Board is planning for a Winter Fest in a City Park, with about$5,000 in funds donated from the St. Joseph Hockey Association. Projected date for the event is February 16, 2013, the same weekend as the Rod and Gun Club fish tournament. Collegeville Communities approached the Park Board to utilize the contributed Park Dedication Fees for College Addition 34d for enhancements to the development. They proposed landscaping equal to the fees paid to the City. Loso stated the City Attorney submitted a letter which indicated that the use of public funds on private property was not a public purpose expenditure disqualifying the use of Park Dedication Funds. The Park Board has set a budget for 2013 and will be forwarded to the City Administrator for some additional feedback. EDA Update: Wick reported the EDA met recently and discussed the following: 1) Business Retention Expansion Survey—the EDA received only 19 out of 163 responses. The EDA will be sending out another postcard reminder; 2)Ken Jacobson Demolition Grant Request—the EDA approved a demotion grant to Ken Jacobson to demolish the rental house adjacent to his business on Cedar Street; 3) McDonalds anticipates breaking ground on October 8 with a January 2013 opening. Grant Application—Jason Kresbach and Lori Ziebell from Central Minnesota Housing Partnership (CMHP)discussed the proposed housing rehab grant application and if a commercial component should be added. The pre-application for the small cities grant is due on November 15th. Weyrens confirmed that the City has already approved the submittal of the grant with the CMHP serving as the grant administrator. Schultz asked about the grant through Stearns County and inquired if this was still available.Weyrens confirmed Stearns County cannot apply on the Cities behalf. Although this is the same financing tool, it is a different agency who is submitting the grant.Wick confirmed this is the same grant application but not through Stearns County.Wick explained the EDA needs to pick a location of the city to declare(per their terminology)slum or blight, an area that needs to be updated and repaired. This does not necessarily include just outdoors but interiors too, such as furnace updates, asbestos in roofs, etc. The EDA is requesting City Council to declare St Joseph Manufacturing Week for the week of October 22-27. This is to recognize local manufacturing businesses. Loso made a motion to approve the week of Oct 22-27 as local St Joseph Manufacturing Week.The motion was seconded by Symanietz and passed unanimously. Administrator Report Initiative Foundation Report: Weyrens reported that each year the City is requested to fund a contribution to the Initiative Foundation and the 2012 budget included $ 1,500. The Initiative Foundation is requesting release of the funds. This year the Minnesota Street Market has received a$5,000 grant from the Initiative Foundation and the City will receive$5,000 in January for the Downtown Master Plan.Wick confirmed$10,000 in funds from the Foundation;Weyrens verified this is money that goes back into the City to benefit the community.Wick made a motion authorizing the funding of$ 1,500 to the Initiative Foundation as requested. The motion was seconded by Loso and passed unanimously. Mayor Reports Centennial Commons: Mayor Schultz attended the Centennial Commons dedication ceremony last Friday, Sept 28, 2012.There was a tour of the apartments and Council Members were invited to schedule a tour. Frank questioned the LED lights that were installed and stated that from his research more Cities I October 4, 2012 Page 3 of 7 are moving to this type of lighting. The upfront cost is more, but in the long run the payoff is good. Sabart explained that initiatives have been usually provided by private parties and not the power companies, Technology has gotten better and pricing is lower with new improvements. Frank would like to look at this for in the future during upgrades and Sabart confirmed the engineering group has lighting designers that stays on top of the technology and there was a quality issue in the past. Technology is improving and he will continue to monitor to determine when it is cost effective. Upcominq Events: Schultz reported the Planning Committee did not meet in October due to lack of business and on October 28th a candidate forum will be held in the Council Chambers from 2:00 p.m.— 4:00 p.m. for the upcoming election. Schultz reported that he also had the opportunity to ride with the Police Chief the evening of homecoming. Michael Deutz.Amendment to the Soecial Use Permit:Weyrens stated that in September the Planning Commission conducted a public hearing to consider an amendment to the Special Use Permit for the property at 31 Minnesota St W, requesting relief from the parking requirements.After considerable testimony and discussion at the public hearing, the Planning Commission recommended delaying the requirement to pave the parking lot for a period of three years or until the property is fully developed, whichever comes first. In addition, if after three years the property is not fuAy developed the property owner can request a two year extension. Weyrens clarified that the meeting at this time is not a public hearing, but property representatives are present for discussion. The action of the Planning Commission simply extended the current special use permit for three years. Loso stated that he supports the extension of three years and questioned what criteria will be used to determine when and if the area needs to be improved. Weyrens and Schultz confirmed the Planning Commission did not define the criteria, but discussed the amount of office space that is vacant and the desire to keep the downtown active. Frank agrees that it is good to have a couple years to determine what changes will be made in the downtown area and a parking plan with a community facility still in planning stages. Schultz commented that it was discussed at length during the Planning Commission meeting. Loso made a motion to accept the recommendation of the Planning Commission adopting the Findings of Fact p�oviding exterior pavement relief until 2015; seconded by Frank. Wick requested the Findings of Fact include language that any further landscaping on the property would require Council approval. He stated that the property owner is requesting relief from the requirement imposed as part of the special use permit citing financial reasons; therefore; it would follow that the property could not support landscaping. If the property owner is considering landscaping then the parking lot should be paved. Wick suggested adding a third provision stating"no landscaping,fencing or other improvements will be constructed on the property or be completed unless approved by the Planning Commission". Schultz stated that discussion at the Planning Commission included the perception that the parking lot owned by Deutz is used as a community parking lot and he should not be required to provide parking for others. In addition, adjoining property owners stepped forward supporting the extension of time for paving the parking lot. Wick stated that there will be a lot of questions as to why this lot was not required to be paved. Frank talked about this being for financial reasons, and questioned why this should be an exemption.Wick confirmed he would like to have wording other than financial concerns for future developers. City Attorney Tom Jovanovich confirmed that financial concerns should not be a determining factor in granting a variance and the matter before the Commission at this time is a Special Use Permit which utilizes different standards. As part of the conditions the property owner is trying to obtain relief from landscaping. The Council may want to put a condition that no landscaping could be added unless approved by the Council. Loso questioned the number of parking spaces required to which Weyrens responded the rental component requires 10 and the commercial component requires 13. Mike Deutz spoke on his own behalf stated that he does not want his parking lot to be considered a public lot because he does not want the liability. His understanding the Specia/Use Permit is for the rental part October 4, 2012 Page 4 of 7 of the property. He stated that he only has six tenants and questioned the required parking. Weyrens stated the required parking is based on the Ordinance which takes into account the number and size of bedrooms. The parking ordinance includes parking for guest and is not one per tenant. Loso stated it was his understanding the number of required parking spaces were determined by the Planning Commission. Deutz questioned the parking requirements and in his opinion the City has not enforced the parking regulations consistently. He requested the Council determine the exact number of parking spaces he is required to pave at this time. Schultz stated that the Planning Commission must be part of the decision making process for determining required parking and that is not the matter before the Council at this meeting. Deutz objected to the suggestion of Wick restricting the ability to landscape the property without approval from the Planning Commission and questioned what he can do without approval. Wick stated the City has been presented a request to amend an agreement that was executed to secure a special use permit to allow a mixed use facility. The special use permit process allows the City to add conditions or restrictions. Deutz stated that he did not execute the original agreement and does not feel he should be subject to the terms and conditions. Jovanovich stated that the development agreement was recorded with the property and the buyer/successors assume the responsibilities of the terms and condition. Jovanovich further stated that until a new plan is submitted and approved by the Planning Commission and City Council, the plan included in the 2006 development agreement is applicable. With regard to the amount of parking required for the development, the property is located in the 61, Central Business District. The current ordinance states the amount of required off street parking in the central business district for existing or new uses to existing buildings which do not increase the area used for commercial or residential use shall be determined by the Planning Commission with approval by the City Council prior to the issuance of the building permit. The amount of parking spaces shall be based on the anticipated demand for parking and loading space, length of visits generated for the particular business, and availability of other spaces in the central business district. It is up to the Planning Commission and City Council to determine the amount of parking needed. The parking regulations have not changed since 2006 so the required spaces in the recorded development agreement are applicable today. Loso understands that the recent Planning Commission meeting discussed and required 10 spaces. Weyrens confirmed the Planning Commission findings when asked how many spaces needed to be paved is minimally the living component and came up with 10 spaces, but then they discussed waiving the requirement for three years. The motion ended up being for the relief of improving the parking lot. Deutz questioned if he decides to pave the parking lot does it need to come before the Council.Wick and Jovanovich determined it does because of the change in the use of the property. Deutz was granted a Special Use Permit and that is still part of the property. Jovanovich confirmed that Wick is proposing that you do not develop until a new developers plan is approved by the Planning Commission. Loso stated that he remembered when Deutz took over the building there was not a plan for the building and there was a two-year window in place for the parking lot paving relief, but this did not require Deutz to take over the developers agreement. Jovanovich does not disagree, but when you go back to the 2009 Planning Commission the developer is required to have a landscaping and paving plan approved by the Planning Commission and plans must be submitted by Sept 12, 2012. Loso commented the Planning Commission should have approved a new landscaping plan at the last meeting and Jovanovich confirmed they provided relief from the plan for another three years. Deutz asked again if he decided to pave how many stalls he would need. Schultz explained the restriction is to not do anything until a plan is made and approved by the Planning Commission and then he can be directed as how many stalls would need to be paved.Wick confirmed and Jovanovich agreed with the wording; No Landscaping,fencing or other improvements will be constructetl on the property unless approved by the City Council.The property is to remain in its current condition, unless a plan is made and approved by the Planning Commission and City Council. October 4, 2012 Page 5 of 7 There was a discussion by Wick and Deutz about not making the relief be about financial reasons only, and a plan was needed before any landscaping is done. Deutz is concerned about the liability and feels he should be able to add a fence or pave the property when wants.Wick confirmed that the relief has been granted and no improvements will be done until a plan is approved by the Planning Commission and City Council. The City Council is not ready to answer the question tonight with regard to the number of parking spaces required. Schultz said the City Council is determining the relief and has instructed Deutz to come back with a plan so they may determine how many spaces will be needed. Wick made a motion to amend the Findings of Fact delaying the requirement for the parking lot pavement for two years, adding a condition that no Landscaping,fencing or other improvements will be constructed on the property unless approved by the City Council.The property is to remain in its current condition, unless a plan is made and approved by the Planning Commission and City Council.The amendment was seconded by Frank. Ayes: Wick, Frank Symanietr Nays: Schultz, Loso Amendment Carries 3:2:0 Vote on amended motion: Ayes: Wick, Frank Symanietz Nays: Schultz, Loso Motion Carries 3:2:0 Communitv Facilitv: Symanietz reported that an open house meeting was held for information and input from the residents regarding a proposed Community Center. The following is a summary of comments from the open house: • Utilization of Kennedy • Consider a separate facility for the City Hall and Communiry Center • The focal point of the project appears to be City Hall not Community Center . Requests for a facility to include a pool, basketball, active recreation activities and a full kitchen • Some suggested a facility similar in nature to the Whitney Center Weyrens stated that in reaction to comments received at the open house staff has been requested to research operation costs once a community center is constructed. Finance Director Lori Bartett contacted the City of Becker who has operated a community center for over 20 years. The total operating cost for the facility is$ 850,000 annually with over 50°/a of the operation paid through a tax levy. The only facet of the facility cash flowing is the school daycare program. User fees account for approximately one-third of the operational cost. Wick stated that Becker also houses a library in the community center. Frank stated that while a library would be a good addition, the Great River Regional Library is not branching into smaller locations. Loso stated that when looking at the demographics for Becker, the area of potential users is much larger than St.Joseph. Loso noted that Becker has a bigger demographic area to draw from than St.Joseph. Loso has gone through the process before in 1998-2000 regarding a community center with a pool, gyms and everything else combining city buildings and if he remembers correctly it was about three to four million dollars.Taking the tax capacity rate into consideration it is not a money making situation, Loso doesn't think the entire city wants the community center and the City can't afford it. This was a small group of people that were at the meeting. Wick and Symanietz didn't disagree with the comments of Loso, but stated they are reporting the results of the open house and they feel that attendance at the meeting was diverse. Frank responded that we don't want to dismiss the input from the survey that the group is looking for more options for young people not just seniors.They are looking down the road 20 years from now. Wick added we are looking at this tonight because of the input from the community meeting and Wick feels we do not have anything to give the architects yet for direction.The task for the facility group is to determine what is needed and what can be afforded. We have been focusing on the survey that was taken, like meeting rooms, kitchen facilities. The plan was to update the City Council but this has been put on hold until we know what direction we are taking. - - October 4, 2012 Page 6 of 7 Loso asked about the numbers and Wick confirmed that is not determined yet. The Kennedy School option just came up and the City Council needs to figure out what we want to go ahead with for the � community. Loso said we purchased the lot next door and then hired an architect and also hired the consultant, how much have we spent so far? It is about$200,000 including the property next to the current building and assuming we are moving forward. Symanietz said there have been suggestions the lot could be made into additional parking for the downtown area. Frank requested that the City Council think about some more uses for the building plus adding a basement for storage for history, or clubs. Other ideas came up like another floor could be added to the existing building. i Schultz stated that the Council needs to determine if the former Kennedy School is a viable option for a future government center including community center. The last cost estimate was based on numbers for 2008 and there have been changes in the market values and building. Schultz states that there is a real possibility of becoming landlocked at our current location and if we need to expand the building and parking in 10 years we will have no place to do it. Therefore, the Kennedy site once again becomes a question as well as options for the existing site including demolishing and starting over or remodeling. Loso stated it is his opinion that the Council decided a number of years ago that the City Offices needed to stay downtown. With that understanding he supported purchasing the former Credit Union building to add to the existing site. The Council concurred that the biggest issue regarding a downtown site is parking and how to accommodate. Schultz stated that wherever the community facility is built it needs to gives the City capacity and parking with the best opportunity for the community in the long run. Symanietz confirmed we are moving forward and should look into all options. Loso commented that he doesn't believe the Kennedy site is available for purchase and there are existing businesses operating in the facility with leases. In addition, he stated it is his understanding that District 742 is considering occupying a portion of the facility again. Wick asked if the city engineer would be able to walk through and look at the building.Weyrens stated if the Council is serious about considering the Kennedy site it is not prudent to move forward without exploring the option. Schultz stated he is supportive of reviewing if the community facility would fit into the space. Tom Peck, Hagemeister Mack Architects, stated that they could review the Kennedy site and prepare a conceptual concept and cost estimate. The additional scope of work would not exceed $ 5,000. The review would include reviewing existing floor plans and documents and physically walking through the site and reviewing existing mechanical infrastructure. After the review process conceptual layouts would be presented to the Council. Peck estimated the assessment would take approximately three weeks. � Frank asked if a commercial real estate/appraisal company should be added on at this time. Preston Eurele, with RA Morton responded that while RA Morton is not a real estate agency, they could provide an estimate of approximate value. To do an actual appraisal or to market the building a real estate agent and appraiser would be an appropriate choice. Frank stated he is interest in reviewing the total costs on for utilizing the Kennedy location. Schultz made a motion to authorizing Hagemeister Mack and RA Motion to investigate the viability � of purchasing and remodeling the former Kennedy School for a government center. The estimated cost for review is$ 5,000. The motion was seconded by Frank. Discussion: Wick stated that if we are holding off with the project management part of the process,which Peck confirmed,we should then continue the discussions after the Kennedy property has been explored.We need to figure out what direction we will be taking and then we can put our energies i towards that. Eurele stated it is his understanding the City is looking at the four following options: 1) remodel existing facility and add a community component; 2)raze the existing facility and construct a new government center and community center; 3) building a facility on a different site, marketing the existing facility; 4)former Kennedy School site. Ayes; Schultz,Wick, Symanietz, Frank. Nays: Loso Motion Carried 4:1 October 4, 2012 Page 7 of 7 Council Reports SYMANEITZ-No report W ICK Millstream Arts Festival: Wick reported that the Millstream Arts Festival was a success last Sunday and the committee expressed their gratitude to the Police Department and Public Works departments for their assistance. LOSO Minnesota Historical Societv Grant: Loso questioned the status of the grant application for the monument restoration to which Weyrens reported the City was recently notified that the request was not funded. FRANK EDA: Frank and Wick updated the Council on a recent informal meeting with a biomedical company considering locating in St. Joseph. The EDA has been working through the financial and environmental issues. The prospective business would be a great opportunity for the City. Closed Meetin4: Loso made a motion to go to into closed session pursuant to MN Statute 13d.05 subd. 3(b)to discuss attorney client privilege for pending litigation regarding the case of the City of St.Joseph v. Michael Deutz The motion was seconded by Wick and passed unanimously. Adiourn: The Council came out of closed session and the meeting was adjourned at 9:35 PM. �� Judy eyrens ' Administrator This page intentionally left blank