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HomeMy WebLinkAbout2014 [02] Feb 26 February 26, 2014 Page 1 of 3 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in special session on Wednesday, February 26, 2014 at 6:00 PM in the St. Joseph City Hall. Members Present: Mayor Rick Schultz. Councilors Dale Wick, Bob Loso, Renee Symanietz. Administrator Judy Weyrens. City Representatives Present: City Engineer Randy Sabart, City Attorney Tom Jovanovich, Police Chief Joel Klein, Finance Director Lori Bartlett. Others Present: Bill Lorentz, Sally Lorentz, 011ie Lesnick, Ron Eiynck, Robert Fries, Carol Fries, Jack Schuh, Dennis Pfannenstein, Mike McDonald. Purpose of the Meeting: The purpose of the meeting is to review the 2014 proposed improvements projects, consider action on hiring an appraiser to complete a benefit analysis for the Park Terrace Improvement, consider action on a housing incentive program, consider action on the Area Legislative Priorities, and the discussion on the intersection of Minnesota St. W and County Road 2. 2014 Project Overview: Weyrens presented the Council with the following overview of the proposed 2014 Improvement Projects: Project Type Amount Revenue Sources Park Terrace Street/Utility $2,200,000 Spec Assmts/Levy/Utility Revenue Water Tower Maintenance $ 545,000 Utility Revenue Main Lift Station Modifications $ 1,800,000 Utility Revenue Government Center Facility $4,500,000 Levy/Sales Tax Weyrens presented the Council with an overview of the financial impact to the tax levy if all the projects in 2014 and 2015 were completed. As can be seen from the chart below, assuming no growth and increased LGA, over a seven year period the tax rate would increase a total of 4.470%, with the largest increase in 2016. 2013 2014 2015 2016 2017 2018 2019 2020 Final Proposed Estimated Estimated Estimated Estimated Estimated Estimated 493,530 506,530 549,330 616,230 670,500 660,500 611,500 637,500 599,830 666,230 745,500 735,500 711,500 737,500 Levy change 13,000 43,300 66,400 54,270 (10,000) (49,000) 26,000 143,970 Tax rate impact change 0.404% 1..344% 2.062% 1.685% -0.311% -1.521% 0.807% 4.470% Park Terrace Improvement: City Engineer Randy Sabart stated that the design for the proposed Park Terrace improvements has been completed and the next step in the process is authorization to bid the project. Weyrens stated that the Council will also need to address the benefit versus assessment. City Attorney Tom Jovanovich stated that he has reviewed the assessment policy, and while there are some inconsistencies, the policy does not require a benefit analysis for each project; rather leaves the decision to the City Council. The policy does reference the MN Statute regarding the need for the assessment to equate to the benefit received. The policy refers to assessing up to 60%, if the benefit is apparent. For example, the City assessed 60% of the 2013 Street Improvement as when the assessment was calculated at 60% the cost seemed reasonable and an assessment analysis was not needed. That is not the case in Park Terrace, calculating the assessments at 60% results in high assessments that may not increase the value of the property to that same degree. Therefore in this case a benefit analysis would be needed, as without, the City would most likely have a high number of challenges. Jovanovich stated that he contacted various appraisers and methodologies and all indicated that there is value to replacing underground utilities. He reminded the Council the analysis completed in 2011 indicated she could not add value for improvements that could not be seen, which is a contradiction to all February 26, 2014 Page 2 of 3 the appraisers he talked to. Jovanovich stated that it is important for the City to complete some type of benefit analysis due to the size of the project. When the City takes the proactive step in completing the analysis and assesses the property based on the report, the burden in court if challenged becomes that of the property owner. The property owner must show fault in the methodology used to determine the benefit. Loso stated that it is his opinion the City should move forward with hiring a consultant to determine the benefit of the proposed 2014 Park Terrace Improvement. Jovanovich stated that he would recommend hiring Bill Waytas, Nagell Appraisal and Consulting. Mr. Waytas has experience and has testified in court successfully. He submitted a proposal to complete the report no later than March 20, 2014 at a cost of$ 1,000 to $ 2,000. Loso made a motion to execute an agreement with Bill Waytas of Nagell Appraisal and Consulting to complete a benefit analysis for the 2014 Park Terrace Improvement at a cost not to exceed $ 2,000.00. The motion was seconded by Wick and passed unanimously by those present. Loso questioned Sabart if the design for the Park Terrace project could include the widening of Birch Street and possibly add parking for Centennial Park. Schultz stated that he thought the master park plan included parking within the Park. In addition, Schultz questioned if the Transportation Plan had different plans for Old 52 and creating additional parking in that area may create conflict. Sabart stated that the widening of Birch Street could be added as an alternate during the bid process and he could research the matter further and bring that information back to the Council prior to awarding the bid. Sabart stated that the Council has not fully discussed the reimbursement or timeline that might be allowed residents to reconnect to the sewer line from the back of their home to the front. It is anticipated the project will last the entire summer with connection available later in the project. Loso questioned if the property owner will have to go into the street to make the connection or if the line will be extended into the property. Sabart responded that the line would be extended to the right-of-way line on the property so that the street would not need to be disturbed. The Council generally agreed that the residents would have until November 1, 2015 to make the connection. The Council questioned if the City would provide a list of contracts that residents could contact for the relocation of their sewer line. Sabart responded that the City will not endorse a contractor but will prepare a list of contractors who have worked in the City and encourage the residents to consider using one contractor to get better pricing. Loso made a motion to authorize the Mayor and Administrator to execute Resolution 2014-008 Authorizing Bidding the 2014 Park Terrace Improvement. The motion was seconded by Wick and passed unanimously by those present. West MN Street and CR 2 Intersection: Weyrens and Sabart discussed the intersection controls at West MN Street and CR 2. The City has received considerable correspondence from residents who are concerned with the safety of the intersection. Sabart stated that he has relayed the concerns of the City to the Stearns County Engineer and she stated that if the City was looking for specific improvements, a written request should be forwarded to the County Board. Schultz stated that he is frustrated that the City has provided many suggestions in the past and he was of the understanding they would be considered. Sabart stated that the County has applied for funding for lighted advanced intersection warning lights but they have yet been notified if they have received funding. One of the suggestions that has been provided to the City is the installation of signal lights; however the County has completed the traffic counts and the volume of traffic does not meet the federal warrants. Weyrens stated that if the City wanted to participate in the cost of the signal lights the City could offer to pay for the portion of the intersection that is in the City using sales tax money as it is road related. Loso questioned Sabart as to the cost of the signalization to which he responded approximately$ 300,000. Sabart stated that he has talked to the Stearns County Engineer and she is opposed to signal lights as the intersection does not meet warrants and it would set precedence. However, the City could request such in writing to the Stearns County Board. February 26, 2014 Page 3 of 3 Loso made a motion to discuss the potential of adding signalization to the intersection at CR 2 and Minnesota Street West, with the City paying one-third of the cost. The motion was seconded by Wick. Ayes: Wick, Loso, Symanietz. Nays: Schultz. Motion carried 3:1:0 Legislative Priorities: Weyrens stated that the annual list of legislative priorities has been discussed at both City Council meetings and the area Intergovernmental Meetings. The items have not changed and each City is asked to approve the final list. Symanietz made a motion authorizing the Mayor and Administrator to execute Resolution 2014-007, approving the 2014 Area Legislative Priorities. The motion was seconded by Symanietz and passed unanimously by those present. Housing Incentives: Weyrens stated that the Council and EDA have previously discussed implementation of a housing incentive program to encourage single family housing. The EDA conducted a round table discussion with realtor and developers and the end result of the meeting was that it is more expensive to build in St. Joseph. They clarified that it is more expensive as St. Joseph does not have a large number of foreclosed lots available. Developers are able to secure lots at greatly reduced prices so adding the water/sewer access fee still makes the lot prices cheaper. Weyrens stated that the City has a bond issue that used to finance a housing development that will have a residual balance that can be designated for any use. It is not uncommon to have a residual balance and typically the balance is transferred to the debt service relief fund. Looking at the balance, a budget for housing incentive could be established at$ 50,000 providing $ 5,000 relief per single family house. Using $50,000 would still leave the larger residual balance to be transferred to the debt service relief fund. The incentive would reduce the water and sewer access charge $ 5,000 for each new detached single family home. At the time of building permit, the application must illustrate that the home is sold to a specific buyer as spec homes are not eligible. The incentive would apply to the first 10 building permits that qualify and the program expires automatically on November 1, 2014. Loso made a motion to approve the housing incentive program for R1 Single, Family detached homes as stated above with a program end date of November 1, 2014. The motion as seconded by Symanietz and passed unanimously by those present. Sales Tax: Schultz discussed the need for the area Cities to come to agreement on the regional project for the extension of the half cent sales tax. The three regional projects being considered are the airport, aquatics center and regional trails. Schultz stated that he supports designating a portion of the regional sales tax to the aquatics center as residents of St. Joseph would benefit from the aquatics portion of the new proposed center. Wick concurred with Schultz and they both indicated that they would like to see the additional features that would be added by using regional sales tax funds. Loso also concurred and stated that of the three projects he would rank the aquatics center as number one. Symanietz stated that her top priority is regional trails. Schultz stated that the area Cities will continue to have discussion on this topic. Adjourn: The meeting was adjourned by consensus at 7:45 PM. Cry. /L,2,. / Judy eyrens � Adm• istrator