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HomeMy WebLinkAbout2014 [09] Sep 04 September 4, 2014 Page 1 of 6 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, September 4, 2014 at 6:00 PM in the St. Joseph City Hall, opening the meeting with the Pledge of Allegiance. Members Present: Mayor Rick Schultz, Councilors Renee Symanietz, Dale Wick, Steve Frank, Bob Loso, City Administrator Judy Weyrens City Representatives: City Engineer Randy Sabart, Public Works Director Terry Thene, Police Chief Joel Klein, Finance Director Lori Bartlett Others Present: Tom Klein, Michelle Hansmann Public Comments Approval of the Agenda: Loso made a motion to approve the agenda with the removal of item 4(a) Minutes. The motion was seconded by Wick and passed unanimously. Consent Agenda: Wick made a motion to approve the remaining items on the consent agenda.The motion was seconded by Symanietz and passed unanimously. b. Bills Payable—Approved check numbers 048271-048302 and accounts payable EFT #001664 c. Application for Payment—Authorized execution of application#1 for the 2014 Main Pump Station Collection System Improvements and payment to Geislinger& Sons, Inc. in the amount of$272,852.35. d. Application for Payment—Authorized execution of application#3 for the 500,000 Gallon Water Tower Reconditioning and payment to Classic Protective Coatings, Inc. in the amount of$30,737.50. e. Application for Payment—Authorized execution of application#2 for the 2014 Park Terrace Improvements to Kuechle Underground in the amount of$383,804.74. Rivers Bend-Final Plat, Cory Ehlert: Cory Ehlert approached the Council to present the final plat for Rivers Bend Plat 3. He stated that he and Kevin Cox have purchased another track of land from Arcon Development to continue the single family home development known as Rivers Bend. The new plat includes 17 lots. Ehlert stated that the development came from lack of building and lack of having competitively priced lots in the City. As the housing recovery starting hitting central MN, area communities had their lots priced at$25-$30K and it was determined that St. Joseph did not have an inventory of affordable lots with prices around $ 39,000. With housing starting to increase and the City offering an incentive on the water/sewer access fees, adding inventory is feasible. Frank questioned how many building permits have been issued with the reduced fee as the Council limited the reduction of fees to 10 homes. Weyrens stated that two have been used so far and there are 4 more that will more than likely be pulled. Weyrens reiterated that the City had a budget of$50,000. This allowed for discounts on WAC/SAC fees for 10 new homes within the city. Wick questioned if the road will be paved the entire way down to the end lots. Ehlert stated that there will be a cul-de-sac at the end of the lots with enough room so that snow plows and other larger equipment are able to get through. Frank questioned at what point in the development process will land be set aside for park development. Weyrens stated that when the property was preliminary platted in 2005 the parkland dedication requirement was established. The plat includes setting aside land for two park areas known as the east and west park. The east park is the large tract of land that is parallel to the river. The City has an executed agreement that sets aside the land for park purposes and the City can access ownership when the Park Board is ready to develop the park. The City Attorney has reviewed the agreements and at this time the City does not need to modify any agreements; therefore the Park land has been accounted requirement is fulfilled. September 4, 2014 Page 2 of 6 Frank questioned when LED lighting options will be considered for future developments. Sabart stated that the standard for LED lighting is already in place and is included in the developer's agreement. Frank asked if there are any environmental concerns with the development of the property. Sabart stated that there are water table concerns. There is run-off from the west side that will affect the land. Ehlert stated that as a developer they have extended drain tile from inside the lot to tie into the storm water. From there the home builder can connect to that and run it to the storm water system. Loso asked what the anticipation for breaking ground looks like. Ehlert hopes to begin in the next 30-40 days. Discussions are being had with two different builders who have expressed interest in the development. The goal is to sell 4-5 lots a year. Schultz questioned how the names of the streets were selected. Weyrens stated that the names were part of the developer's agreement from 2005 and the owner selected the names. Wick made a motion to authorize the Mayor and Administrator to execute the Final Plat and Development Agreement for Rivers Bend Plat 3 provided all the requirements are fulfilled.The motion was seconded by Symanietz and carried unanimously. 2015 Preliminary Budget: Weyrens stated that the material for the meeting included a summary of the proposed capital improvement projects for 2015 and the operational budget. The impact of the proposed budget is approximately 6%with the majority of the increase from the CIP. The proposed projects for 2015 include: a) Clinton Village (Mill and overlay); b) Northland Area (Mill and Overlay); c) Commercial district alley improvement; d) MN Street Beautification. In addition, the budget for 2015 includes a proposed equipment certificate. Weyrens reminded the Council that the City has used the issuance of two equipment certificates for the purchase of needed equipment. This method provides for stability in equipment replace, preventing spikes in the budget. Weyrens presented the Council with the summary of quotes for the HVAC and roofing. The City bonded for the improvements in 2011 and then the Council starting discussing modifications to the building or re- building. The project was held off until it was determined if a project would be approved. The City has set aside the funds from this bond issue in a separate investment to verify that the City is making less interest that received on the bond. The City received two quotes for the improvements with McDowell presenting the lowest quote: $83,000 for the HVAC and $43,000 for the roofing. Loso asked if the new system could handle the expansion if the City Hall were to be renovated and possibly expanded. Thene stated that the new boiler system would be able to handle the expansion. Loso suggested waiting until spring to install, in case any new plans come up for renovation or expansion. Wick asked about the space heater issue. Weyrens stated that staff has been as safe as they can with them in turning them off. Even with the new system duct work will not be completed and heaters may still be an issue. Loso made a motion to table the replacement of HVAC and roof of the City Hall until spring 2015. The motion was seconded by Schultz. Aye: Schultz, Loso, Symanietz Nay: Wick, Frank Motion Carried: 3:2 Weyrens stated that at the previous Council meeting the Council interviewed two firms, RA Morton and WSB for facilitation services. Symanietz stated that she would prefer to hire RA Morton as they already have the background information and the proposal from WSB indicates additional fees would apply for gathering and presenting additional data. Symanietz made a motion to except the proposal for facilitation services submitted by RA Morton in the amount of$5,500. The motion was seconded by Schultz. September 4, 2014 Page 3 of 6 Discussion: Wick stated that he is leaning more towards WSB as they would be coming in with a clean slate. The fact that they would be starting fresh might make the community more receptive. Aye: Schultz, Symanietz Nay: Loso, Frank,Wick Motion Failed: 2:3 Loso made a motion to award WSB the proposal for facilitation services in the amount of$5,530. The motion was seconded by Frank. Discussion: Frank asked who owns the architectural documents from the previously facility plan. Weyrens stated that neither the City nor RA Morton would have that. That would be the property of the architect. Sabart added that when working with architects, only the hard copy of the plans are purchased while the electronic versions remain with the architect. Loso and Frank agreed with having WSB perform the facilitation services. Frank added that at the LMC conference he was very impressed with WSB and had heard nothing but good things. Aye: Wick, Frank, Loso Nay: Schultz, Symanietz Motion Carried: 3:2 Weyrens requested the Council clarify the cap for the facilitation services with WSB to which the Council stated $ 5,530. Reverting back to the budget, Schultz questioned how the amount of$125,000 put towards the street beautification of MN Street came about. Weyrens stated that the public works director solicited pricing to replace the trees and landscaping. The project could be broken into sections, staring with the areas where the cement is heaving. Schultz questioned if the proposed alley improvements for 2015 include paving the alley between Ash and Birch Street and if gravel does it need to be improved. Sabart stated that alley would be paved. Thene added that there is an issue with the storm sewer. There are two catch basins located in that area. When it rains, gravel runs into the storm sewer which could eventually freeze up in the winter. Schultz stated that the assessment amounts of the alley improvements concerns him. Loso suggested doing the projects in increments, doing one per year. Sabart responded that the reason same project types are typically lumped together is the City would receive more favorable unit pricing. The Council questioned the engineering costs for the east/west corridor. Weyrens stated that during the discussion of Graceview Estates 4 the Council discussed the development of the east/west corridor. The engineering budget would start the design process for construction a portion of the road whether it goes to 7th or 12m is still to be determined. Funding for the improvements would include state aid funds. Frank stated he would like to develop the corridor using the complete street concept. Master Park Plan —Update the Master Park Plan to include more details. This will help with potentially use of sales tax money on the development of potential parks. Schultz asked if the Comprehensive Plan should be included in this portion. Weyrens stated that it can be included and some of the debt levy from the equipment certificate can be relieved and earmarked for the Comprehensive Plan update. Schultz asked how old the street sweeper is and how often it is used. Thene stated it is a 1997 and it is used heavily in the spring and fall. The value of the actual sweeper is $12,500. The sweeper can be reconditioned for$28,000. Schultz asked if it would be a piece of equipment that could be shared with area cities. Thene stated that the timeline would not workout as other cities would be using their sweepers in those peak times in the spring and fall. Loso asked to get a 5-year maintenance update on the sweeper. Thene added that the sweeper is at the age where work is needed. The hoses are starting to go, and the automatic greaser no longer works. Wick added that the sweeper increases the equipment certificate amount by 60%. Thene stated the $135,000 is the price of a used sweeper. Brand new sweepers are going for around $180,000. Thene also looked into leasing, and he will get the cost to the Council. Schultz stated that as he was looking at revenue streams, and is very interested in a municipal liquor store. He would like to have KDV complete an analysis or feasibility of the City taking over the off sale September 4, 2014 Page 4 of 6 liquor establishments. The cost of the KDV study would be $5,000. Loso feels that the City should not get involved in selling liquor. Symanietz suggested looking at Sauk Rapids as an example and see the profitability of their store. Frank stated he is not opposed to exploring new things; however, he is opposed to buying out the other off-sale liquor stores in the City. Frank added that if a study is done, the area of study will need to be larger to include other area cities. He does not like the idea of putting businesses out of business. Wick asked why the funds allocated to park dedication have increased. Bartlett stated that they are trying to allocate more funds to the park board so that they are able to further develop the parks. Frank asked where the repairs to the 2nd Ave sidewalk fit in. Weyrens stated that the funding can come from the street beautification fund. Frank feels the project is more of a safety hazard than a beautification project. Loso mentioned that the issue had been brought up years ago and they had received negative feedback from affected residents. Loso stated overall the budget increased by about 6% resulting in a little over 2% increase in taxes which would be about a $36.00 increase on a home value of$150,000. He would be more comfortable with an overall budget increase between 3 and 4 percent. Loso added he would be willing to look at cutting some CIP projects to make that happen. Schultz stated the Council needs a work session to go over priorities and visioning. The council agreed to meet on Monday, September 22nd at 3:00 the place of the meeting is to be determined. Each council member will come with their top priorities. Weyrens stated that previously the Council has stated that they would discuss the use of the sales tax funds for the design of the government center that was tabled. The City spent approximately $ 345,000 out of a total $427,000 in sales tax funds with anticipation of bonding for the improvement and using those funds for the community room portion. Since the project did not occur the Council has discussed what if any portion of the funds should be replaced in the sales tax fund. Weyrens stated that it was a proper use of sales tax funds and if the City opts to reimburse the sales tax funds from the general fund, the reserve balance will be minimal dropping below the 4 months. This would have a negative impact on current and future bond issues as one of the first questions asked by bond raters is the amount of reserve and the policy of required reserves. Schultz stated a portion of the cost was spent trying to fit the community center into the facilities, which should not have to be paid back. He is unsure how to calculate that amount. Loso stated that the City used the funds appropriately and he would support not refunding the general fund at this time. Frank stated that he wants to move forward and the past is the past and the Council needs to be more aware in the future when sales tax funds are used. The Council was in general agreement to not refund the general fund at this time. City Engineer Reports—Project Updates CSAH 2 trail project: The work has been done and the trail is open. Park Terrace: The project is going well. The pipework phase of the project is complete and the restoration phase is beginning. There have been questions surround when residents can complete their hookups. Sabart stated that due to the time of year, they are motivated to complete the restoration. There have been a few exceptions: one resident had an emergency with the sanitary sewer, and another had their connection at the end of their driveway. Loso stated that it would make more sense to hook-up prior to the street, curb and gutter being installed. He added that residents in the neighborhoods are under the impression that they would be able to complete the hook-up sooner than next summer. Sabart stated previous discussions have been had with the City's contractor and they would be uncomfortable with extending the time of restoration to allow for September 4, 2014 Page 5of6 hook-ups. If there were to be a window to do the hook-ups, that would be in October into November. The concerns are not getting the work done, or in the right condition. Schultz would like to see a middle- ground met. Sabart stated that concrete is given 28 days to cure. Residents are advised to stay off their driveways for 14 days to allow it to cure. If other contractors are allowed to go over the streets and damage is done, it will be an added expense. The Council agreed that the City project should not be compromised and the residents will have to wait until after the City is done before they can connect. Main Pump Station: The main pump station project is proceeding. Discussions were had with the contractor to reiterate the completion of the project on time. CR 2 Turnback: Staff had a discussion with the Stearns County Engineer regarding the turn back of West MN Street. The County is willing to turn back the road in its current condition to the City while the City is looking for a prorated fee to make the necessary improvements. The Council did agree to look at the cost of rehabilitation and will present a revised offer. The main disagreement is the condition of the road at the time it is turn backed to the City. Schultz updated the Council on the early warning system for out on County Road 2. Bidding will go out for the project in early October. Committee Update EDA:Wick reported the EDA discussed the budget and the alley and parking north of MN St. They are trying to get feedback from local businesses to see which direction would be best for the City. Additionally, they discussed the marketing materials for the City. They authorized the publication of new maps and will hope to work with CSB to incorporate a campus map. Wick added that a real estate round table will be held at the Fire Hall on September 17th at 8:30. A study was conducted on the hotel/motel in town and the person that paid for part of the study has backed out due to lack of available land. Park Board: Loso reported that the Park Board met and discussed the budget. Additionally members form the Lions presented the splash pad. The Park Board accepted the concept of the splash pad. Another item discussed with a property located out by Hill Street. Residents from that area came to the meeting and requested the City purchase the property, turning it into a park. If that can't be done they would like it to be rezoned to R1. Weyrens stated that the holding pond on the property is a private holding pond and in the PUD it was planned to construct a multi-residential property. Administrator Reports Assessor Contract: In 2008, the City designated Stearns County as the Assessor. One of the benefits of that was to eliminate the local board of review which was advisory to Stearns County. In addition, if the City served as the Board of Review, two members of the Council would have to attend training. Weyrens stated that the City pays a per parcel rate for assessing services and it has worked well in the past. The City did receive a proposal from an employee currently working in the Assessor's Office. If the City would opt to hire that individual the City would once again function as the Board of Review with members of the Council needing training. Frank made a motion to appoint the Stearns County as the Assessor as the Assessor for the City of St.Joseph authorizing the Mayor and Administrator to execute the agreement for services. The motion was seconded by Loso and passed unanimously. Mayor Reports APO: APO is being audited by MNDOT on planning funds and they are being required to allocate $200,000 additional funding for transportation planning funds. Schultz stated that the ability to take aerial City photos can be funded with that money. If the money is not used, then MNDOT will take back around $165,000 of it. September 4, 2014 Page 6 of 6 New Business Symanietz stated that the U-Turn sign was knocked over by McDonalds. Thene stated that the County had been out there to fix it. Thene stated that Water fest is coming up on the 16-18th of September. The actual event is the 17th and 18th and there will be approximately 1,000 people at the event. Frank asked if the every other day water plan is still in effect. Weyrens stated that the State requires cities to have a water conservation plan. One of the city's plans is to have a year round odd-even water ban. Adjourn: Motion made by Loso to adjourn at 7:50 PM; seconded by Schultz and passed unanimously by those present. dy Weyr ns Adm. istrator