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2001 [08] Aug 16 {Book 22}
. itg of St. Joseph 25 College Avenue NW P.O. Box 668, St. Joseph, MN 56374 St. Joseph City Council (320) 363-720 I August 16, 2001 Fax: 363-0342 7:00 PM REVISED CLERKI I. Call to Order ADMINISTRATOR Judy Weyrens 2. Approve Agenda 3. Consent Agenda MAYOR a, " " BillsPayablenRequestedAction: Approve Larry J. Hosch b. Minutes - July.16, August 2, 2001 Requested Action: Approve c. Summary of Closed Meeting, August 2, 200 I. Requested Action: Approve Summary COUNCILORS Statement as presented by the City Attorney. Bob Loso d. Tenns of the Separation Agreement and Release (Gary Will). Requested Action: Authorize Cory Ehlert the Mayor and Administrator/Clerk to execute the Separation Agreement between the City of St. Joseph and Gary Will. Kyle Schneider e. Outdoor Liquor Pennit, EI Paso. Requested Action: Approve an outdoor liquor permit for the Alan Rassier EI Pas for an event to be held on August 19, 2001. 4. Public Comments 5. 7:05 PM - public Hearing, Independence Center - Industrial Revenue Notes 6. 7: 10 PM - Cigarette License Violation, La Playette . 7. 7:25 PM - City Engineer Reports a. County Road 121 8. 7:40 PM - Bond Counsel Report a. Bond Sale - $ 810,000 General Obligation, Northland Five Improvements b. Financing Issues c. Sewer Conveyance/Capacity 9. 8:00 PM - Jean Dehler, Special Use Request, 33 Minnesota Street W: Rental Unit in a General Business District 10. 8:15 PM - Kelly McCann, 134 - 6th Avenue NW Special Use Request: Owner Occupied Rental II. 8:35 PM - Al Stellmach, Variance and Special Use Request, Ridgewood Storage: Allow storage unit in Highway Business and 100% Variance on exterior requirements. 12. 8:50 PM - Recess 13. 9:00 PM - Indian Hills Final Plat, DM Building a. Final Plat b. Developers Agreement 14. 9: 15 PM - Rezoning Recommendations 15. Mayor Reports . 16. Council Reports 17. Clerk! Administrator Reports a. Police Chief Search 18. Adjourn ", . Page 1 . Pursuant to due call and notice thereof, the S1. Joseph City Council and Planning Commission met in joint session on Monday, July 16,2001 at 7:00 PM in the S1. Joseph Community Fire Hall. - -. City Council Members Present: Mayor Larry Hosch. Councilors Bob Loso, Al Rassier, Kyle Schneider and Cory Ehlert (arriving at 8:30). City Administrator/Clerk Judy Weyrens. Planning Commission Members Present: Chair Gary Utsch. Commissioners S. Kathleen Kalinowski, Marge Lesnick, Mike Deutz. Planning Commission Secretary Chad Carlson. Others Present: Art Reber, Marie Reber, Elmer Rakotz, Bill Wasner, Steve Frank, Joyce Stock, Paul Reber, Doug Inselman, Miriam Ardolf OSB, Gladys Schneider, Donald Schneider, Sister Kara Peters OSB, Sister Paula Revier OSB,Ken Hiemenz, Brenda Hommerding, Glenn Hommerding, Judy Bruemmer, Shaun Christen, Colleen Murphy Cooney, Timothy Cooney, Bill Elfering, Janie Brownie, Larry L Brownie, Al Maleska, Linda Muske, Dan Muske, Brad Zimmer, Cara Zimmer, Kay Lemke, Dorothy Court, Nel Pfannenstein, Bruce Meyer, Marge Wagner, Kevin O'Leary, Jill O'Leary, Tom Ellenbecker, Mark Winter, Kelly Winter, Bill Lowell, Amy Lowell, Nancy McDarby, Madeline Beaumont, Keith Gruber, Cathy Opoien, Kyle Opoien, Robert Pfannenstein, Kelly McCann, Tim Borresch, Sally Pitzen, Dan Murphy, Mark Zwolinski, Jane Schulzetenberg, David A borgen, Marlin Eich, Bruce Austin, Ervin Goebel, Don Burgett, Addy Burgett, Neil Loso, Dana Steffens, Patricia Dahl, Shelly Thomas, Dave Thomas, Joyce Meyer, Nettie Pfannenstein, Andy Lahr, Terese Kruger Lahr, Dorothy Anderson, Bob Wagern, Dick Stock, Joyce Stock, Mary Hiltner, Loren Loso, Don Warner, Jan Warner, Clarence Fischer, Chuck Potter, Mark Schloesser, Doug Peterson, Jan Peterson. . Mayor Hosch opened the public hearing at 7:00 PM and stated the purpose ofthe hearing is to accept testimony regarding the proposed zoning changes recommended by the Planning Commission. Hosch stated that all persons wishing to speak may do so and will be limited to 5 minutes. Administrator/Clerk Weyrens clarified the following items: 1. Property is taxed based on valuation, not the zoning classification. Therefore, changing classification from residential to commercial does not automatically increase property taxes. 2. Property rezoned will be allowed to continue the current use and will be grandfathered. As such the property can be sold and continue to be used in the grandfather status. However, if the property is destroyed beyond 50%, the property could not be rebuilt under the grandfather status unless approved by the Planning Commission. Mayor Hosch opened the floor for comment and requested that all persons speaking state their name and address. In an effort to allow input on all proposed zoning classifications, testimony will be taken on each area separately. To follow is a summary of testimony received. Area #1 - Property located south of Minnesota Street between rd Avenue NW and 5th Avenue NW. Proposed zoning change from Rl Single Family to R2 Multiple Family. Tim Borresch of 11 - 3rd Avenue NW: Encouraged the Commission to leave the zoning classification as it currently is zoned. Borresch expressed concern for the considerable amount of traffic that is generated on County Road 2 and questioned if adding additional rental is appropriate. . Mary Niedenfuer of 202 - 5th Avenue NW: Requested the zoning remain Rl. She stated the homes along Minnesota Street are some of the older homes in S1. Joseph and they should be preserved. Other communities preserve the older housing stock and convert them to unique shops. Page 2 Utsch responded that the Planning Commission felt that changing the property to R2 would be the highest · and best use for the property. The rear of the property is the campus/monastery of St. Benedict so it seems to be logical to zone that property for rental. Elmer Rakotz of 605 East Able Street: Questioned the need to have additional rental and stated that the City should instead be encouraging single family homes. Shelly Thomas of 400 Cypress Drive: Encouraged the Commission to leave the zoning as RI. Thomas indicated that R2/R3 create additional burdens on the City and taxes are already high enough. She further stated the City should spend time trying to relieve the tax burden on single family home owners. At this time Mayor Hosch presented the Commission and Council \vith a petition from the residents of Ash Street East encouraging the Council to retain single family zoning. The residents of Ash Street East have been trying to keep their neighborhood in tact, and the number of rental properties in the area are working against these efforts. Area #2 - Property located south and abutting County Road 75. Proposed zoning change from current Rl Single Family to Highway Business. Marline Eich of 220 Birch Street East: Questioned what happens to the property in the proposed zoning area if the home is destroyed. Weyrens clarified that the property owner would need to receive Planning Commission/City Council approval before reconstruction. Ken Hiemenz of 316 Minnesota Street East: Questioned how the City plans on providing ingress/egress · to the properties in question and the purpose for the change. Hosch stated it is his opinion that the best use for property adjacent to County Road 75 is commercial. Both sides of County Road 75 have already seen considerable commercial growth. Rassier concurred with Hosch and stated it makes planning sense to zone property abutting County Road 75 as commercial, as the development is already occurring. Hiemenz stated it was his understanding the City did not want to create a St. Cloud Division Street. By promoting commercial growth along CR 75 it will do just that. Hiemenz encouraged the Council and Commission to review the St. Cloud Area District Plan before making any decisions. Utsch stated that in reviewing the zoning map, the Commission reviewed the Comprehensive Plan and Zoning Book. The proposed changes include a review of the entire City. Utsch stated it is his opinion that St. Joseph cannot remain a small town and it is better to be proactive in planning than reactive. Highway 75has the highest traffic flow, therefore and it should be developed commercially. Kay Lemke of 33 West Ash Street: Stated that 12 homes are affected by the proposed zoning modification. As property owners wish to sell their homes they may be limited or unable to sell their home because of the inability to rebuild the home if destroyed. She also questioned how long before the City would zone the next block south as Highway Business. Area #3 - Property located north of Clinton Village and south of the Millstream Monastery House. Proposed zoning change from current Rl Single Fainily to R3 Multiple Family; and property located on Old Highway 52 from current R2 to R3. · Kevin 0 'Leary of 612 Birch Street West: Read a prepared statement encouraging the City Council to encourage a strong community base, which comes from strong neighborhoods who are in turn residential . Page 3 · home owners who have a vested interest in their home. He further stated it is his opinion that the responsibility of the Council and Commission should be to the common good of the S1. Joseph community residents who have a vested interest in their home. Finally, O'Leary stated that in his opinion the City has more than enough rental units. S. Kara Peters of 1 04 Chapel Lane: Peters spoke on behalf the Monastery of S1. Benedict and stated that she has concerns with the proposed rezoning. The Monastery would like to sustain the Millstream Monastery House area and not develop the above mentioned area with high density. S. Miriam Ardolf of 1 04 Chapel Lane: Ardolf stated that the Colleges are at a level where growth is not anticipated. Both Colleges have added campus housing to help alleviate the saturation of student rental properties in the neighborhoods. Therefore, there may not be a need to plan fora significant amount of R3 Multiple Family housing. Colleen Murphy of 337 Cypress Drive: Murphy read the Minnesota Statute regarding the process for rezoning property and requested the proposed zoning modifications go back to the Planning Commission for review. Sally Pitzen of 304 Old Highway 52: Pitzen cautioned all present, both audience and CouncillBoard members, fÌ'om assuming all R3 is student housing and encouraged the Council to leave the portion on Old Highway 52 R~ Pitzen stated that she currently lives in a townhouse on Old Highway 52 and the majority of the bui ding is filled with professionals who work in and near the community. There are not many market rate apartments in S1. Joseph and increasing the density along Old Highway 52 will only · encourage student housing. Deutz stated that the property on Old Highway 52 is already being used as R3 so the zoning should reflect the use. The recent area Affordable Housing Study completed indicated that St. Joseph needs to provide additional market rate rental units. The proposed zoning modifications provide the perceived need. Graeve concurred with Deutz and stated that the five area Cities support the results of the Housing Study and there is a need for rental throughout the region. Tara Tollefson of 129 - ¡th Avenue NW: Tollefson clarified that the City cannot discriminate when it comes to housing and does not have control whether or not a unit is student rental. Tim Cooney of 337 Cypress Drive: Cooney questioned the definition of a family and also inquired about the number of market rate rental units the City has available, and where these people are employed. Larry Brownie of 615 Birch Street West: Brownie stated that he moved to St. Joseph because of the small town atmosphere. He questioned why a City cannot stop growth as many times growth carries a considerable cost. He also stated it is his opinion that the Affordable Housing discussion is not worth it. Steve Frank of 606 Birch Street West: Frank stated that he has been asked to speak on behalf of his neighborhood and the following comments are a reflection of a neighborhood meeting. · While the City met all legal requirements, Frank indicated that due to the large impact of the decision, residents should have been given a greater length of time to respond. · MN Statutes require that rezoning decisions be supported by evidence that indicates a rational decision with the burden being on those who want to make the change. · S1. Joseph does not have an HRA, and redevelopment Includes a provision which includes the necessity to have a governmental agency such as the HRA. · · The property owners in Clinton Village purchased their property knowing that the vacant field was zoned Rl. · Questioned conflict of interest on the Planning Commission. Page 4 · Questioned the validity of the Housing Study completed by Admark stating that it may be · flawed. · The St. Cloud Area Joint Planning Committee indicates that St. Joseph meets the goals of Affordable Housing. · Large multiple family units may cause a tax burden on the residents of St. Joseph. · Recent changes in the State Law may lower the amount of taxes that can be collected from multiple family units. · The main benefactors from bringing apartments into St. Joseph will be the apartment developers, some business such as convenience stores, fast food places and bars. Dan Murphy of St. Cloud: Questioned whether or not the School District was contact as additional housing may create an additional burden on the City. Glen Hommerding of 701 Birch Street West: Questioned why the City needs growth and what benefit there is to the residents of Clinton Village if the property is rezoned to R3. Deutz stated that the City does not have a need for the additional R3 but needs to plan where it should go. As far as taxes Mark Lambert, owner of the Campus Villa Apartments, pays the highest taxes in St. Joseph. Dave Borgen of 1 04 - 6th Avenue NW: Questioned how the rental unit on the comer of 6th A venue NW and Minnesota Street was approved. He routinely has to pick up garbage and beer bottles and does not wish this to be expanded in the neighborhood. Nettie Pfannenstein of 208 East Ash Street: Cautioned the Council in rezoning a neighborhood from single family to multiple family. Ash Street neighbors have been fighting to keep the neighborhood, as · there are many rentals on Ash Street. Annually they have to worry about parties and garbage. Once the neighborhood is converted to rental it is hard to convert back. St. Joseph has plenty ofrental units and they should require the colleges to provide additional housing. Dave Thomas of 407 Cypress Drive: Requested the City install a swimming pool in the area proposed to be zoned R3. Area #4 - Resurrection Lutheran Church Property, Kennedy Elementary School and St. Joseph Parish Campus. Proposed zoning change from the current Public to Educational and Ecclesiastical. Ken Hiemenz of 316 East Minnesota Street: Questioned why the zoning change is proposed, as the current E & E Ordinance applies to the College/Monastery of St. Benedict. Further, areas being changed would become non-confonning uses. Hiemenz also questioned if the Commission is recommending to change all the religious properties to E & E. Carlson responded that the City currently does not have an Ordinance that controls property zoned public. It is his understanding that the Ordinance governing Public includes a provision for schools. Rassier stated that the Planning Commission concurred that the properties in question would best be govemed by the E & E Ordinance, as some type of land controls should be in place. Area #5 - Buettner Industrial Park Lot from current Industrial to Highway Business Ken Hiemenz of 316 East Minnesota Street: Stated it was his opinion the EDA Board improved the property with the understanding that it would be industrial in nature. Hiemenz further stated that Highway Business has a more restrictive land use than Industrial and that may limit development. · . Page 5 . Area #6 - Property located at 514 East Minnesota Street. Proposed zoning change from current R1 toRl. Nancy McDarby: Questioned why the Council/Commission is requesting to change a property from Rl to R2. While the property surrounding this one parcel is R2 there is no rule that the property must be zoned to match the adjoining properties. Maybe the City should consider rezoning the surrounding properties Rl. McDarby stated it is her opinion that the neighborhood has enough rentals and Minnesota Street may not be the best place for student rental. Elmer Rakotz: Stated he too agrees that the neighborhood has enough rental and maybe the surrounding property should be rezoned to Rl. Their being no one further wishing to provide testimony, Rassier made a motion to close the public hearing at 9:00 PM: seconded by Loso and passed unanimously by those present. Mayor Hosch stated that the Planning Commission and City Council will review the testimony received and make a decision on the proposed changes. At this time it is anticipated that a decision will be made at the August 2, 2001 City Council meeting. The meeting was adjourned by consensus at 9:15 PM. . Judy Weyrens Administrator/Clerk . . . . ., , · Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, July 19, 2001 at 7:00 PM in the St. Joseph City Hall. Members Present: Mayor Larry Hosch. Councilors Bob Loso, Cory Ehlert, AI Rassier, Kyle Schneider. Administrator/Clerk Judy Weyrens. Others Present: Police Chief Gary Will, EDA Director Chad Carlson, Bill Lorentz, Norm Hanson, Mary Theisen, Jennifer Theisen, KenTwit, Lonnie Abbott, Mary Schroden, Jane Lowell, AI Gwost, Gary Schleicher, Tim Muske, Ted Schmidt, Matt Chourard, John Meyer, JoAnne Schneider, Dorian Davidson, John Meyer. Approve Aqenda: Loso made a motion to approve the agenda removing consent agenda item (b) Minutes and (d) Amendment toOrdinance No. 51. . The.moti()n was seconded by Ehlert and passed unanimously. Consent Aqenda: Loso made a motion to approve the consel1t agenda as follows; seconded by Ehlert and passed unanimously. a. Bílls Payable, Check Numbers 29951- 30062. b. Removed c. Authorize the expenditure not to exceed $ 4,500 for the purchase of four (4) picnic tables and pads and three (3) benches and pads. d. Removed e. Authorize Administrator/Clerk Weyrens to attend the GFOA Conference in Alexandria, September 18 - 22. f. Approve a Special Use Permit to Sunset Manufacturing to construct a light · manufacturing warehouse and office facility at 417"':' 1st Avenue NE. The permit. requires the property owner to landscape the building area facing Date street. g. Accept the Petition for Annexation to incorporate a portion of the Rennie Farm (14.26 Acres) adjacent to County Road 133. The annexation petition was submitted by Scenic Specialties and Dorine Rennie. h. Amend Ordinance 42 to include provisions for watering bans. i. Set bond sale date for August 16, 2001. Bond proceeds will be used for the improvements for Northland Five. Public Comments Opportunity Manor: Steve Femlin of Opportunity Manor appeared before the Council to discuss the issuance of Industrial Revenue Bonds. Femlin stated that Opportunity Manor is in the process of remodeling/constructing 11 group homes serving adults with mental illness. The homes are located in various jurisdictions including St. Joseph at 13 - 1 ih Avenue SE. The City of Sauk Rapids will be issuing the Revenue Notes as the majority of the projects are in Sauk Rapids. The Revenue Notes are not an obligation of the City, nor do they impact bonding ability. There is no risk to the City, but they cannot be issued with City endorsement. At this time Femlin requested the City Council set a public hearing for Thursday, August 16, 2001 at 7:00 PM. Loso made a motion to set a public hearing on August 16, 2001 at 7:00 PM for the proposed Revenue Notes for Opportunity Manor. The motion was seconded by Ehlert and passed unanimously. Liquor Violation, St. Joseph Parish: St. Joseph Parish Trustee Bill Lorentz appeared before the · Council to discuss the recent liquor violation. On July 3, 2001 81. Joseph Parish received a liquor violation for selling to a minor. Lorentz stated the parish is taking this violation seriously and will be looking at ways to prevent this from happening in the future. In the past the St. Joseph Police Department provided security for the beer gardens, but that did not happen this year. ~' . Hosch questioned if the festival planning has changed from the past year. Lorentz stated the planning committee is comprised of many new people. However, Steve Nelson discussed with Chief Will police security for the beer gardens and the procedure for closing the road for the parade. Hosch stated the Council needs to take action on the liquor violation and stated this is the first violation received by the parish in over 20 years. Loso questioned Lorentz as to the measures steps the Parish will be taking to prevent this from happening in the future. Lorentz stated that they will make sure the Police Chief is involved with the planning for the festival and conduct a meeting with the volunteers serving in the beer stand to make sure they area aware of the rules and regulations. Loso made a motion to send St. Joseph's Parish a written warning regarding the liquor violation that occurred on July 3, 2001. Further, the City will hold the parish to the same standards as other liquor license holders in the future. The_warning is due to the fact that the Parish has not had any liquor violations in the past 20 years and a breakdown in communication between the City and the Parish may have contributed to the lack of police presence. The motion was seconded by Ehlert. Discussion: Ehlert requested that in the future, all applications for outdoor liquor include provisions for security and fencing. The motion passed unanimously. . S1. Cloud Partnership; S1. Cloud Partnership Director Jeff Schlingman appeared before the Council to discuss the activities of the Partnership. Schlingman stated that over the past year the Partnership has revised the mission statement, produced a quarterly newsletter, completed strategic planning including a work plan, established goals and created a web site. Schlingman encouraged the City to use the Partnership as they are working with the City to market and retain businesses. City Engineer Reports Northland Five Bid Results: City Engineer Joe Bettendorf reported that at 11 :00 AM today bids were opened for the improvements to Northland Plat Five. The City received eight (8) bidsas follows: Base Bid Alternate A Final Bid Larson Excavating $ 623,715.93 $ (24,577.37) $ 599, 138.56 Randy Kramer $ 651,337.91 $ ( 8,000.00) $ 643,337.91 KuechleUnderground $ 683,654.00 $ ( 3,575.00) $ 680,079.00 Northdale $ 709,455.29 $ ( 2,350.00) $ 711,805.29 SR Weidema $ 711,171.55 $ ( 2,587.50) $ 708,584.05 RL Larson $ 753,970.50 $ C5!1~~.~~ $ 748,570.50 Landwehr $ 761,366.25 $ (3,3. $ 757,978.75 JR Ferche $ 787,779.00 $ ( 4,290.00) $ 783,489.00 Bettendorf stated that the project was bid with an alternate, allowing a polyethylene pipe for storm sewer rather than concrete. In the past the City has required concrete piping. However, Bettendorf stated that many cities have been successful using polyethylene pipe. Public Works . Director Dick Taufen has agreed to implement the new piping in Northland. , Loso made a motion to accept the low bid of Larson Excavating in the amount of $ . 623,715.93 less the deduction for alternate A ($ 24,577.37) based on the recommendation of the City Engineer. The motion was seconded by Schneider and passed unanimously. Bettendorf also reported that the proposed lift station in the Northland Addition may be relocated. If the lift station is built on the west side of Northland Drive, Excel Energy will charge the developer $ 30,000 for three phase power. If the lift station is built on the east side of Northland Drive, the power would be supplied by Stearns Cooperative Electric at a cost $ 12,000. Ehlert questioned if both utility companies are aware of the cost difference and if they would be willing to negotiate the fee for power. Ehlert further questioned if the location of the lift station is being compromised in exchange for a lower power supply cost. Bettendorf responded that although it does not make a difference where it is located his preferences would be to place the lift station on the west side of Northland Drive. If the lift station is located on the east side of Northland Drive, it would be boarding a residential property line. If the lift station is located on the west side it would abut Northland Park. County Road 121: Bettendorf presented the Council with a preliminary assessment role for the proposed improvement to County Road 121 (College Avenue South). In preparing the assessment role, Bettendorf questioned the assessment to St. Joseph's Parish, hookup fees for the apartments and the maximum assessment for front footage. Hosch stated the importance of being consistent with past practices and requested this matter be tabled until the next meeting, allowing the Council time to review the information. Weyrens requested the Council establish a date for the public improvement hearing using the preliminary assessment role as presented by the City Engineer. Loso made a motion to schedule the Public Improvement Hearing for County Road 121 (College Avenue South) for . Wednesday, August 29, 2001 at 7:00 PM. The hearing will be held at the St. Joseph Community Fire Hall. The motion was seconded by Schneider and passed unanimously. Watab Storm Sewer Outlet: Bettendorf reported that the storm sewer outlet near the creek is in dire need of repair. The pipe has changed in shape from circular to oval, and not repaired will likely collapse. Bettendorf will review this matter with Dick Taufen and report back to the Council. Roqer Tamm, Variance Request 203 Cedar Street East: Roger Tamm appeared before the Council to request a variance on the exterior finish requirement in St. Joseph Code of Ordinances 52.22 Subd 7 (c). Said Ordinance requires that 50% of the building exterior consists of brick, stone tip-up concrete panel, decorative concrete block and/or glass. Any building undergoing renovation, repair or an addition, so as to require the issuance of a building permit shall be brought into conformance with the Ordinance. On July 2, 2001 the St. Joseph Planning Commission conducted a public hearing and recommended the following: Denial of the variance to allow the construction of an addition to the existing building without meeting the exterior building material requirements as stated in St. Joseph Code of Ordinances 52.22 Subd. 7 (c). Tamm stated that he is in the process of purchasing the building for his photography business. In consideration of the recommendations of the Planning Commission, Tamm stated that he will place a brick venire for a height of five (5) feet on the north, east and south side of the structure. The existing handicap ramp will be removed and t~e main entrance to the studio will be facing east. Tamm further stated that since the west side is not visible, he will not brick that side. The siding on the addition will match the existing siding as much as possible. . ~ II . Loso made a motion to grant a 30% variance on the exterior requirements of St. Joseph Code of Ordinance 52.22 Subd. 7 (c) for the property located at 203 Cedar Street East with the following contingency: The property owner will install brick venire for a height of five (5) feet on the south, east and west side of the new addition and on the south and east side of the existing building. The motion was seconded by Ehlert. Discussion: Rassier encouraged the Council to require the properly owner to place the brick on all four sides of the building. Rassier reminded the Council that the Planning Commission unanimously recommended the variance be denied. Ken Twit encouraged the Council to protect the integrity of the Ordinance and require brick on all four sides of the building. Ayes: Hosch, Ehlert, Loso, Schneider Nays: Rassier. Motion Carried 4:1:0 Amv Sand, 510 Fir Street East: Amy Sand approached the Council in opposition of the proposed rezoning of a portion of the plat entitled Indian Hills. She stated that in her opinion the residents were not heard at the Planning Commission meeting and they are opposed to the rezoning of a portion of the Indian Hills Plat. Sand stated that they have not been informed as to the development that will occur on the rezoned parcel and she is requesting the Council deny the rezoning. . Loso clarified that at this time there are no development plans. The property owner is platting the parcel and has requested to rezone a portion for multiple family. Before anything is constructed the property owners would be notified as a development containing more than 12 apartment units would require a public hearing. Loso further clarified that R-3 zoning is not limited to apartment buildings. John Meyer clarified that the Planning Commission did allow for resident input regarding the rezoning, but many of the residents left after the plat hearing was closed. Weyrens stated that notice of the hearings were published and mailed to the affected property owners. Preliminary Plat, Indian Hills: Hosch stated that he would like the Preliminary Plat sent back to the Planning Commission for further discussion. It has been brought to his attention that some mis-information may have influenced the decision of the Planning Commission and therefore he would like them to have the opportunity to review the matter. Loso made a motion to table discussion on Indian Hills Plat and send it back to the Planning Commission for further discussion. The motion was seconded by Hosch. Discussion: Ehlerl questioned the quick motion to table the matter and encouraged the Council to have some discussion. This matter was placed on the agenda for discussion and he feels that as a Council they should discuss the matter before tabling it. Rassier stated that he is supporlive of tabling the plat as the Planning Commission may not have been given accurate information. Weyrens stated that if the matter is tabled, the Council will have to meet in special session as this is a land use decision and requires action within 60 days. The 60 days could be waived if the properly owner would agree to such. Properly owners John Meyer . and Dorian Davidson stated they would not waive any time requirements as it would cause a hardship to them. Ehlert stated that it is not appropriate to send a matter back to the Planning Commission · without some direction. The Council should at least outline the issues before sending it back. Based on discussion, Loso withdrew his motion to table as did Hosch the second to the motion. John Meyer stated the main concern of those present at the public hearing for the Preliminary Plat was the perceived need for a east/west road through the plat on the west side of Northland Drive. While Meyer stated he does not believe the road makes sense, he and Davidson are willing to donate a sixty-six foot wide easement between Lots 1 and 2 Block 1 for a future roadway with the following understanding: 1. The easement will not be indicated on the plat, rather through a separate agreement with a sunset clause. 2. The easement will only be applicable for the construction of a road with all the costs being born by the City. 3. The road must connect to 4th Avenue NE. On July 2,2001 the St. Joseph Planning Commission conducted a public hearing for the purpose of the Preliminary Plat for Indian Hills Park and recommended the following: Approval of the Preliminary Plat of Indian Hill Park as presented provided the property owner, OM Building, include a sixty-six foot road with cul-de-sac between Lots 1 and 2 Block 1 . Loso made a motion to accept the recommendation of the Planning Commission, · approving the Preliminary Plat of Indian Hills Park with the following contingencies: 1. The property owner will include a sixty six foot road with cul-de-sac between Lots 1 and 2, Block 1; and 2. The property owner will work with the City Administrator, Engineer and Attorney to draft an agreement providing an east/west corridor between above mentioned lots providing for a future roadway. 3. Approval of the City Engineer and City Attorney. The motion was seconded by Ehlert. JoAnn Schneider of 408 Gumtree Street East approached the Council and encouraged the City to begin transportation planning. She stated 2 years ago the Council referred the matter to the Planning Commission and nothing has been done. Now the City has an opportunity to plan an east/west road before any houses are constructed and without paying for additional right-of-way. Lonnie Abbott of 409 Gumtree Street East approached the Council and clarified the location of the east/west road. Ehlert clarified that the developer will be required to make a provision for a cul-de-sac between Lots 1 and 2; Block 1. In addition, an agreement will be executed giving the City an option to acquire additional right-of-way if 4th Avenue NE is extended to connect to the cul-de-sac. John Meyer stated that the property in question is being developed as commercial property and as such it is hard to determine the exact location of the roadway. Meyer stated that DM Building would agree that the road could be shifted north or south upon their approval. This requirement will be added to the agreement. Ayes: Ehlert, Loso, Rassier, Schneider · Nays: Hosch Motion Carried 4:1:0 . . .. . RezoninQ - Indian Hills Park: On July 2, 2001 the St. Joseph Planning Commission conducted a public hearing for the purpose of the Rezoning Lot 1 of Block 1 Indian Hills Plat from current Highway Business to R3, Multiple Family and recommended the following: Approval of rezoning request as presented. John Meyer and Dorian Davidson requested the Council rezone Lot 1 Block 1 Indian Hills Park from Highway Business to R3 Multiple Family. Davidson stated that the lot in question contains an area which in his opinion would be suitable for residential development. At this time they have no plans to develop the site but will be placing the property on the market. Tim Muske of 506 Gumtree Street East questioned how the Council can approve the rezoning without a development plan. Hosch clarified that if an apartment complex with greater than 12 units were proposed, the adjoining property owners wouldbe notified and have the opportunity to speak. Ehlert made a motion to accept the recommendation of the planning Commission, rezoning Lot 1 Block 1 Indian Hills Park from Highway Business to R3, Multiple Family; seconded by Loso. Ayes: Hosch, Ehlert, Loso, Rassier Nays: Schneider Motion Carried 4:1:0 MAYOR REPORTS MeetinQs Attended: Hosch reported that he attended the following meetings: Five City Planning District and Partnership Meeting. . COUNCIL REPORTS SCHNEIDER - No Report EHLERT - No Report RASSIER Affordable HousinQ - RefurbishinQ: Rassier reported that he attended a meeting in Waite Park regarding refurbishing of the existing housing stock. Waite Park is in the process of receiving a grant to assist residents with needed repairs. This typeof program would be part of the affordable housing program. LOSO - No Report ADMINISTRATOR I CLERK REPORTS Assessor Rate Increase: City Assessor Ollie Lesnick submitted a summary of area assessor rates; they are as follows: Stearns County $ 6.03 to $ 11.91 per parcel (Provide service for Waite Park, St. Joseph Township) Sartell $ 7.50 per parcel Melrose $ 10.00 per parcel Rassier made a motion to increase the assessör rate per parcel from the current $ 8.68 to $ . 10.00 effective January 1, 2002. The motion was seconded by Schneider and passed unanimously. . , Scheduled Meetinq: Weyrens reminded the Council of the following meetings: · July 25, 2001 - Monte Eastvold, Financing proposed projects July 26, 2001 - Office Staffing Adjourn: Loso made a motion to adjourn at 9:40 PM; seconded by Ehlert and passed unanimously. Judy Weyrens Administrator/Clerk · · OCT-02-2001 TUE 11:50 AM RAJKOWSKI HANSMEIER 3202515896 P, 02 . EMPLOYMENT AGREEMENT (Chief of Police) 'I'Þirement is entered this _ day of September, 2001, by aod between the City of St. Joseph, a . esota political subdivision (the "City") and Peter Jansky (tho UEmployee"). 1. / Em;ploynlent. The City hereby employs the Employee, and the Enlploycc accepts ernploym~nt under the tenns and conditions oft1ùs Agreement. j . 2. ~. The Employee has been hired as a Chief of Police for the City of Sf. Joseph and shall carry ou.t the duties and responsibilities of the Chief oíPolice as set forth in the Police Policy Manual, the City Ordinance, City Council directives and those other duties and responsibilities typically carried out by a CJùef of Police. 3. Tel Ill. The term of this Agreement will begin on December I, 2001, or earlier pursuant to a mutual agreement of the parties. The Agreement will continue indefinitely pursuant to the tenus and conditions expressed herein. 4. Probatioruuy Period For the first year of employment, Employee shall be considered an "at-will" employee. During the first year of employment. Employee may be tennínated with or witbout cause. IfEmptoyee's employment is terminated by the City at any . time during the first year of employment, the Employee shaH be entitled to a severance payment equal to 60 days pay. Upon completion of the probation period, Employee's employment shaU be terminated only for cause, misconduct, or incompetency. 5. Compensation. The City will pay the Employee for services rendered an initial' annual salary of $53,000, payable pursuant to the regular schedule implemented for the City's employee payroll. Employee shall be considered an. exempt employee due to IDS status as a departtnent head. As such, he will not be eligible for overtime or compensatory pay. 6. Salary- Re'Vi~ws. The City shall perform an interim review of Employee' s job performance approximately six (6) months after commencement of employment. Upon favorable review, the City may consider a salary increase. OthelWise, upon successful completion of the probationary period, the annual saJaxy may be subject to a five percent (5%) increase for the second year ofEmployee's employment. Thereafter, the salary increases shaH be negotiated annually, giving ronsideratìon to increases in the cost of living, Employee's perfOImanoo, additional duties or responsibilities assumed by the Employee, and other factors deemed relevant by the City and/or Employee. 7. Vacation. Upon conunencement of employment) Employee shall be credited with ten (10) da.ys vacation. During the first year of employment, Employee will earn an additional 1.53 hours of vacation per pay period. During the second through sixth year of employment, Employee will earn an additiona14.61 hours per pay period. Pay periods witt be semi-monthly. Thereafter, Employee shall accrue vacation in accordance with the City ofSt.loseph 's . Employee Policy Manual. OCT-02-2001 rUE 11:51 AM RAJKOWSKl HANSMEIER 3202515896 P, 03 . 8. Sick Leave. Upon commencement of employment, Employee shalt be credited 160 hours of sick leave. Employee shall earn. sick leave at the rate of 8 hours per month, with a nwximum accrual of 720 hours of sick leave. Employee will not accrue any additional sick loave until such time as the 160 hours of sick leaye ~redited to the Employee upon commencement of employment is earned.. Once 160 hours of síck\~eavc is earned, Employee shall accrue additíona] sick leave at the rate herein indicated. Iftbe E;nployee leaves the employment of the City bofore the 160 hours of sick leave credited to Employee are earned. he shall not be compensated for that portion of the credited sick leave which has not been earned. 9. Hea.lth and Dental In81ltMce. Employee shall be entitled to participate in the City's health and dental insu.rance plans; as maybe in effect from time to time. The City cUITently has health and dental insurance available to employees with Principal Mutual Insurance. With regard to heaJth insurance, the City pays 80010 of the premium for family or Employee; the Employee pays the other 20% of the premium. With regard to dental insurance, the City pays 80% of the premium for Employee or Employee's family. Employee pays the other 20% of the dental insurance premium. The maxim urn benefit payable per year for dental is $2,000. There is a dental deductible of $50.00 per office visit, excluding preventive care which is paid 100% in full. Both health and dental insurance is a subject to a 30-day waiting period. In the event the City's health or dental insurances, or any tenns thereo~ are changed or modified, the benefits afforded to Employee hereunder shall automatically be changed in accordance therewith. 10. Life Insurance. Employee shall be entitled to life insurance as generally made . available to employees by the City. Currently, the City offers $25,000.00 life insurance policy with the entire premìW11 paid by the City. This benefit is subject to change or modiñcatîon by the City at any time if the City implements a change in coverage or the insurer. 11. DisabiHty Insurance. Employee shall be entitled to disability insurance as generally made available to employees of the City. Currently the City pays 100% of the premium on a policy through UNUM. The policy is subject to a six month waiting period. Tenns of the policy shall govern. This benefit is subject to change or modification by the City at any time if the City implements a change in COVðr'.lge or the insurer. 12. Holidays. Employee shall be entitled to the holidays established by the City's Employee Policy Manual. as may be adjusted or modified from time to time by the City Council. J 3. R,etirement. Employee shall participate in PERA and receive thß benefits provided therein. Contributions shall be made in accordance 'With the provisions of the City's Employee Policy Manua.l, as may be adjusted or modified from time to time by the City Council. 14. Uniform/Equipment Allowances. Employee shall be entitled the same uniform and equipment allowances applicable to fun-time patrol officers of the City in accordance with the written contract negotiated on behalf of the non-exempt police officers by the St. Joseph 2 . uvl-U2-2001 TUE 11:51 AM RAJKOWSKJ HANSMEIER 3202515896 P. 04 . Police Union (LELS) as ourrendy exists, and subject to modification as new contracts are approved by the City. In the event the City's non-exempt patrol officers are no longer represented by a union, the uniform/equipment allowance of the Employee will be the same as approved by the City CO\U1cil for non-exempt patrol officers. Any UDÌfOIm or personal ) equipment expenditures in excess of the allowance shall be an expense of the Employee. 15. ConferencesIDues. The City shall pay Employee's membership dues and expenses for attending conferences of the Minnesota Chiefs ofFolice Association and ,I I International Police Chiefs Association subject to the following limitations: i " j (a) The expense must be reasonable. (b) The expense must be within the budget constraints oftha City. (c) The City Council must determine that the incurrence of the expense is justified by the benefit to the City. The City Council shaH approve all such expenses before incurred, either by approving a department budget containing the expendíture. or by approving an individual expenditl):re upon request of the Employee. 16. Notice of Termination. Employee agrees to provide the City with thirty (30) days . notice of termination of employment. 17. Arbitration. Any controversy or claim arising out of. or relating to, this Agreement. or its breach) shall be settled by arbitration. Within teu (10) days of demand for arbitration. the parties shall each select an arbitrator, and within twenty (20) days thereafter, the parties' arbitrators shall select a neutral arbitrator and consider the matter as a panel. In the event the parties' arbitrators are unable to agree, the Stearns County District Court shall select the neutral arbitrator. Judgment upon the award rendered by the arbitration panel may be entered and enforced in any court of competent jurisdiction. ]8. Notices. Any notice required or desired to be given under this Agreement shaJl be deemed given ifin writing and sent by certified mail. return receipt requested. to the Employee's residence or to the City's principal office, as the case maybe. 19. W aiver ofBr~h- The City's waiver of a breach of any provision of this Agreement by the Employee shall not operate or be construed as a waiver of any subsequent breach by the Employee. No waiver shaII be valid unless in writing and signed by an authorized officer of the City. 3 . OCT-02-2001 rUE 11:52 AM RAJKOWSKI HANSMEIER 3202515896 P, 05 20. AssigIWleI1t. The Employee acknowledges that his services are uniqu.e and . personal. Accordingly, the Employee may not assign his rights or delegate his duties or obligations under t¥s Agreement. 21. El1tire Agreement. This Agreement contains the entire understanding of the parties. It may not be c~anged orally but onJy by an agreement in \Vriting signed by the party against whom enforcert;lent of any waiver, change, modification, extension, or discharge is sought. 22. Headings. Headings in this Agreement are for convenience only and shall not be used to inteIpret or construe its provisions. 23. Counter¡! arts. This Agreement may be executed in two or more cc"Unterparts, each of which shall be deemed an original but all of which together shall CDnstitute one and the same mstrument IN WITNESS WHEREOF, the parties have executed this Agreement on , 200 1. THE CITY: EMPLOYEE City of St. Joseph By Peter Jansky . Lany Hosch. Mayor By Judy Wøyrens, Clerk! Administrator N :\ci ty\âtjœ \200 1 4 . . . Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, August 2, 2001 at 7:00 PM in the St. Joseph City Hall. Members Present: Mayor Larry Hosch. Councilors Bob Loso, Cory Ehlert, AI Rassier, Kyle Schneider. Administrator/Clerk Judy Weyrens. Others Present: William Tallman, Tim Borresch, Blake Elliot, Lori Pfannenstein, Netti Pfannenstein, Joe Bettendof, Dick Taufen. Approve AQenda: Loso made a motion to approve the agenda, seconded by Ehlert and passed unanimously. Consent AQenda: Rassier made a motion to approve the conseníagenda as follows; seconded by Schneider and passed unanimously. a. Bills Payable, Check Numbers 30063- 30130 b. Minutes - June 7 and June 28, 2001 c. Authorize the expenditure not to exceed $ 7,900.00 for the purchase of a skateboard ramp. d. Authorize the attendance of Officer Janssen to intoxilyzer school. e. Accept the application for an Exemption from Lawful Gambling for the Church of St. Joseph for an event to be held on January 6, 2002. Discussion: Loso questioned the cost of the skateboard ramp and if it is necessary to spend that much money on a ramp. The skate park has been a victim of vandalism and Loso has reservations about rewarding that type of behavior with expensive equipment. Schneider . responded that the Park Board met with the kids using the skate park and the equipment proposed for purchase is what the kids want. Further, Schneider stated that the City's insurance carrier has required that all handmade equipment be removed and rules for the park be posted. The equipment proposed by the Park Board has been approved by the insurance carrier and carries a ten (10) year warranty. Hosch stated that if the park is to continue signs need to be posted and the vandalism needs to stop. Park Board Chair Lonnie Abbott stated that the Park Board is in the process of posting the rules. Ehlert stated that he strongly encourages the Park Board to help find ways to reduce the vandalism. Loso requested the Park Board purchase the vandal proof lights for the skating rink as they are constantly a target for vandalism. The motion passed unanimously. Public Comments to the Agenda Dan Muske, 333 Cypress Drive: Dan Muske questioned the process for the recent rezoning and at what time the final decision will be made. Hosch stated that the City is required to publish and mail notices to all affected property owners. At the public hearing testimony is received regarding the proposed changes. Due to the large amount of testimony at the recent public hearing, the City Council referred the matter back to the Planning Commission for discussion on August 6, 2001. The City Council will act on the recommendations of the Planning Commission on August 16, 2001. ADMINISTRATOR I CLERK REPORTS Fire Truck FinancinQ: Weyrens presented the Council with a proposal to purchase the ladder truck using Equipment Certificates. Municipalities are limited in the manner in which equipment can be purchased. If - the City does not pay for equipment in full, they have two options: 1) lease from the vendor; or 2) - Equipment Certificates. Equipment Certificates can be issued for no longer than five (5) years and the debt cannot exceed ten percent of the market value of the city. The city has not used Equipment . Certificates in the past, but if the city is considering purchasing street equipment, this option should be . considered. The Council agreed to discuss this matter further at the upcoming budget meeting. Noise Violation Hearinq - Bill Tallman, 121 Ash Street East: Hosch stated that the property owner has not requested an evidentiary hearing, which is then considered an admission of guilt. The noise violation occurred on July 14, 2001 at 12:28 PM. The police issued citations for 12 underage consumption tickets and 1 noise violation ticket. The police report indicates the tenants were uncooperative and mutual aid from Waite Park was requested. Bill Tallman spoke on his behalf. He stated that he has fined the residents leasing the house for the noise violation. His lease includes a penalty of $ 350.00 for violation of the noise ordinance and $ 750.00 for having a party. On the night in question, the tenants had a softball party which become out of control. Tallman stated that he has decided to no longer sub lease the apartments during the summer months as that is when the tenants seem to get in trouble. Further, in an effort to monitor the property he has hired local resident Tom Borresch. At this time he told the Council he was open to any suggestions the City may have to help control the problem. Tim Borresch stated that he drives by the property daily to monitor the activities. Unfortunately, the night of the noise violation is the one night he did not drive by the property. He further questioned why he did not receive a copy of the noise violation and tonight is the first opportunity he has had to view the report. Weyrens stated it is the policy of the city to notify the property owner. Borresch stated that as manager of the property he should be informed as well. Council members discussed the history of the property and the fact that the same property received a noise violation one year ago. In the past seven years the property has received four noise violations in addition to complaints regarding lawn maintenance and garbage. Ehlert stated that it is his opinion that . the noise violation on July 14, 2001 was the foremost complaint the City has seen. The police had to threaten to call the Fire Department if partiers did not get off the roof. Further, they would not let the officers enter the house. Therefore, the pattern of noise needs to be addressed. Loso concurred with Ehlert and stated that the residents along Ash Street East have been fighting student rental issues for many years. The property at 121 Ash Street East appears to be a large part of the problem as is evidenced by the property history. Rassier stated that before Borresch was hired to maintain the property, it was extremely difficult to have the necessary repairs made to the house and lawn maintenance was a big problem. Loso made a motion to revoke the license for the property located at 121 Ash Street East, owned by William Tallman for a period of one year. The revocation is based on the noise violation history of the property and severity of the most current violation. The motion was seconded by Rassier. Discussion Ehlert stated that he did receive a call from a resident to revoke the license, as fining the property owner has not had an affect in the past. Hosch stated that he would prefer the license be suspended and not revoked. If the license is revoked the property owner loses his grandfather status and the house would have to be owner occupied if it were to continue to be rented after the revocation period. Borresch stated he has been manager for the past two years and the property is getting better. The Council needs to consider there are two other rental units in the general vicinity and some of the complaints become intertwined. Blake Elliot stated that he was present the night in question. He stated that he was having a BBQ that ended up out of control. He stated that he did not know the students that were at the party as they were walking by and stopped. It is his opinion that the residents are prejudiced against students and do not want to work with the students. Elliot suggested that the community and student relationships be worked - on to help in situations such as this. Further, he suggested that the Council consider assigning community service rather than revoking the rental license. - - . Ehlert questioned why, if Elliot did not know the students did he allow them to hide in the attic and basement after the police arrived at the scene. Loso stated that the Council needs to take a stand and history of this property makes this situation extremely serious. Lori Pfannenstein of 221 Ash Street East stated that the residents of Ash Street have had to put up with noise and garbage long enough. This summer a full dumpster sat in the yard of 121 Ash Street East and the residents had to look at it. The residents have had to call the City Office to request garbage and mattresses be removed. It is time the Council take action to help the neighborhoods and send a strong message to the Colleges. Netti Pfannenstein of 208 Ash Street East stated that the neighbors are tired of dealing with rental issues. It is time for the Council to show the students that unacceptable behavior will Got be tolerated. She applauded the Council for their actions, but cautioned that follow through is important. The history of the property in question warrant the penalty consideredby the Council. Netti further stated that if the Council does not intend to enforce the Ordinances they should throw them out. She also questioned if this decision is difficult because there are too many landlords on the Council. Hosch stated that a suspension of the license would send the same message to the students as a revocation. Loso encouraged the Council to revoke the license and follow through with the recommendations of the Rental Housing Committee. He further stated that the Council has a responsibility to the neighborhood and should make the hard decision. Ehlert stated the Council is following the Ordinance as it contains parameters for decision making. Each violation is considered individually and the Council acts within the guidelines of the Ordinance. Schneider . questioned if the City has a matrix penalty system for noise violations. Ehlert responded no, that each case is reviewed independently. Ayes: Loso, Rassier Nays: Hosch, Ehlert, Schneider Motion Fails 2:3:0 Hosch made a motion to suspend the rental license for the property located at 121 Ash Street East, owned by William Tallman for a period of one year. The motion was seconded by Ehlert. Discussion: Ehlert questioned if the Council could remove the grandfather status with the suspension reducing the maximum renters from five to three. Hosch stated that would be considered a revocation. Ayes: Hosch, Ehlert Nays: Loso, Schneider,' Rassier Motion Fails 2:3:0 Rassier made a motion to suspend the rental license for the property located at 121 Ash Street East, owned by William Tallman for a period of one year. Further, the property owner will be fined $ 1,000.00. The motion was seconded by Loso and passed unanimously. Hosch made a motion that the property must be vacated in 45 days, (September 16, 2001); seconded by Rassier and passed unanimously. CITY ENGINEER REPORTS County Road 121 (ColleQe Avenue South): City Engineer Joe Bettendorf appeared before the Council to discuss the proposed assessment role for the reconstr~ction of County Road 121 (College Avenue South). Loso questioned if the City should be contacting the residents on 295th and 103(0 Street to see if - they have an interest in utility services. Bettendorf stated that he would coordinate correspondence with Weyrens. At this time the Council needs to resolve the following issues: - 1. Large frontage lots: Bettendorf questioned if the City wishes to cap the maximum frontage that would be charged. Any amount in excèss of the cap would be absorbed by . the city. Loso questioned why the city would cap the amount. Bettendorf responded that . some of the assessments are large and benefit to the property must be shown. The Council was in general agreement to follow past practice, assessing the actual amount of front footage. 2. College Park Apartments - Watermain may need to be replaced. The existing main has served a useful life, so the question is the replacement cost assessable. The Council agreed to assess it as in the past. Bettendorf also questioned the number of units being assessed for water and sewer. If the past formula is used, the units being assessed is less than one half the total number of units. The Council agreed to use the formula currently in place. 3. Church Property - Bettendorf questioned the assessment for the church. The properties are corner lots and as such the long side is assessed at 50%. When Minnesota Street was reconstructed the property owner was only assessed for curb and gutter. Ehlert questioned why one property owner should only be assessed for 50%. Bettendorf responded that each project is financed individually depending on revenue sources. The City in the past has not changed the assessment policy based on a past project. Bettendorf agreed to review this matter and report back to the Council. Ehlert questioned if the City has any input in the final design of County Road 121 (College Avenue South). Bettendorf stated that the City must approve the plans and he will make arrangements with Stearns County to present the plans to the City Council. It is his understanding the road has been designed with three lanes (a middle turn lane). The road bed will be 44' wide with 10' shoulders. Project Updates: Pond View Six: The roads are moving forward and should be completed shortly. Northland Five: The pre-construction meeting was scheduled and dirt work has begun. The . City is still working on the Developer's Agreement and recording the Final Plat. Street Project: Representatives from SEH are working on the feasibility report for the first phase of the capital improvement project. The report should be ready late August or early September. Final Grading, Pond View Six: The wrong grading plan was submitted for Pond View Six. Bettendorf stated he had reviewed each lot before the final was approved and when the first building permit was issued it was discovered the grading had changed. Therefore, he must review the entire grading plan again. Public Works Report Bus Stop Relocation Request: Public Works Director Dick Taufen reported that the College of St. Benedict has requested authorization to move the bus stop on 2nd Avenue NW from near Centennial Park. South one half block to the monument area. The current bus stop is presenting a safety issue as students are walking in front of and behind the bus. By moving the bus stop one half block south the students would walk away form the bus. The bus stop would be for drop off only and would end daily by 5 PM. The College is asking that the curb be painted yellow. In addition, they have agreed to help with the snow removal as it is a direct benefit to the students. Taufen recommended the Council move the bus stop as requested. Ehlert made a motion to move the bus stop on 2nd Avenue NW as requested by the College of St. Benedict and painting the curb yellow. It is further understood that St. Ben's will provide the snow removal for the bus stop area. The bus stop is for drop off only and will end daily by 5 PM. The motion was seconded by Loso and passed unanimously. Street Siqn Request: Taufen reported that Stearns County has installed new street signs on County Roads. The County has converted the signs from a six inch plate to a nine inch plate with six inch lettering. The new sign is easier to read. Taufen stated that many of the existing street signs are in need - of replacement and requested the Council consider converting the signs to nine inch plates. The original - signs were purchased by the Lions and include their emblem. If the signs are replaced Taufen recommends the emblem be included. Loso made a motion to change the street signs to a nine inch .. . plate as requested by Taufen and to establish a program for replacement. The motion was seconded by Rassier and passed unanimously. Water Hydrant: Taufen reported that a hydrant may need to be replaced. During construction a gasket become lodged in the hydrant and has caused it to malfunction. If the gasket cannot be removed the hydrant will need to be repaired. Repair cost could exceed $ 5,000 including removing a portion of the sidewalk and replacing the paving stones. The Council was in general agreement that it needs to be repaired and requested Taufen keep the Council informed. Mayor Reports Meetinqs: Hosch reported that he attended the West Metro Corridor meeting and will be meeting with representatives from St. Cloud regarding the sewer conveyance/capacity. Council Reports LOSO St. Wendel Sewer: Loso questioned the status of the sewer issue regarding St. Wendel Township. Weyrens reported that she contacted the Township Clerk and they will be discussing the matter on August 7,2001. Loso and Hosch agreed to attend the meeting at St. Wendel. RASSIER Affordable Housinq: Rassier stated he attended another meeting in Waite Park regarding the refurbishing of older homes. They are also looking for representation from area cities to work on a joint Rental . Ordinance. Rassier stated that St. Joseph appears to be more progressive than some area cities regarding rental regulations. EHLERT - No Report SCHNEIDER Park Board: Schneider reported the Council recently met to prepare the 2002 budget. They have also welcomed a new member, Chuck Muske. The repairs to the campground at Millstream Park have been completed and the signs should be installed shortly. The Council recessed at 9:30 and reconvened at 9:45 at which time City Attorney Tom Jovonavich stated that the Council would be going into closed session. The meeting was closed pursuant to MS § 13D05 Subd. 3 for an interim evaluation on the performance of the Police Chief. At 11 :29 PM the meeting was opened and Loso made a motion to adjourn; seconded by Rassier and passed unanimously. Judy Weyrens Administrator/Clerk - . Conclusion of Closed Meeting August 2,2001 On Thursday, August 2,2001, the Council closed a portion of its regularly scheduled meeting to evaluate the performance of Chief Gary D. Will Jr. The meeting was closed pursuant to M.S. § 13D05, Subd. 3. The Council reviewed issues regarding Police Department planning for the 4th of July. It was concluded that the job performance of Gary D. Will Jr. did not meet the expectations of the City. The Mayor and City Attorney were instructed to meet with Gary Will and negotiate a severance agreement. . Post-it'" Fax Note 7671 Date h# of . pages To '>if:¡ /â '-'1 From . Co:¡[f~pt. Co. Phone # Phone # Fax # Fax # - - .. . .. . APPLICATION FOR TEMPORARY OUTSIDE LIOUOR PERMIT Fee: $ Date Paid: 1. Name of applicant: [L I!aMJ .dpp;; ¡Jélh 2. Address of licensed .premises: .·~O... :} nJ . ~ 1? ·W 3. Date of outside activity: From ~ /9 "" ()tJo ¡V ~ t1'3 () Oln -¿J1 S ðP>IÞI ) onth/ day /time ~ month/ day/time 4. The activity to occur will consist of: Æ!1/ILdo- 5. The area designated for outside liquor will not exceedd.s'"ð t) square feet. 6. Ingress and egress will be controlled by: 7. A tent _ will/.~ will not cover the area. . 8. The estimated number of people attending will bet2¿JÓ (j¡u~ /ó?W ¡Jð1-A.(I() , /J--1Yl 9. The number of employees working at the time of the event will be 12~ f c5( ¿) . v 10. e activities which !llay create noise, other than generaL conversations, are the following - lI. The following steps will be taken to reduce noise:. ð1 Lf¡ /J /~bjAjw/ 12. This type of event A has / _ has not occurred in the past{ ttJ..âð..Llt/ ~ 13. Additional security will be retained by the licensee in the form of !lAf.--f /lL.l dM - 14. The licensee will take these additional measures for the protection. of the public health, safety and repose: ~:~ #;;4~r;1f¡!f!!![;£f!:!!!Ø1!i~4Æ~ (~ . > - ]¡~~ d~/10 tåf¡ t·OI Dat Si ture of Applicant . ..'" . <. . , . This application was reviewed by an offer of the St. Joseph Police Department on . The Department recommends that the Council: - Disapprove the application because: ~ Approve the application with the followings terms and conditions in addition to tho set forth in the ap)lication: " "-\. I { 0 tW. d \ c (. ..s....c. (. .... ,. " + ~~ ¢v- Signature of Offi ...... ----...... ---.. -..- -- -- - -.... ----- -...... ----..-.. -- --- -......-.. --- ....-.. ....-............................. --- --........-.... --..................- --........ --.......... --...... ---...... --.......................... This application came before the St. Joseph City Council on . Based upon the information and evidence presented, the Council hereby resolves: . - The application is granted subject to the terms and conditions set forth in the application and recommended by the Police Department as hereafter modified: _ - The application is denied based upon the following findings: Mayor Clerk/ Administrator s: \ "lCY\" Joe \ a/Q71::9<>.152 - - .. . . ~-: ;-- . . LAW OFFICES . FRYBERGER, BUCHANAN, SMITH & FREDERICK, P.A. HAROLD A. FREDERICK 700 LONSDALE BUILDING ST. PAUL OFFICE DEXTER LARSEN' 302 WEST SUPERIOR STREET 386 NORTH WABASHA STREET JAMES H. STEWART"O SUITE 1190 ROBERT E. TOFTEY' DULUTH. MINNESOTA 55802-1863 ST. PAUL. MINNESOTA 55102 (651)221-1044 MICHAELK.DONOVAN TELEPHONE (218)722-0861 FAX (651)221 =1 035 NEAL J. HESSEN' JOSEPH J. MIHALEK' FAX[218]725=6800 KEVIN T. WALLI SHAWN M. DUNLEVY' www.fryberger.com MICHAEL J. MAHONEY DAVID R. OBERSTAR'o MICHAEL COWLES' SUPERIOR OFFICE MARTHA M. MARKUS EN' - 1419 TOWER AVENUE STEPHANIE A. BALL' R.BRUCEBUCHANAN,COUNSEL SUITE 102 SUPERIOR, WISCONSIN 54880 PAUL B. KILGORE" NICK SMITH. COUNSEL (715)392-7405 MARY FRANCES SKALA' FAX [715]392=7407 TERESA M. O'TOOLE H.B. FRYBERGER. JR. (1908-1997) DANIEL D. MADDY; LOREN W. SANFORD (1931-1978) IRON MOUNTAIN OFFICE PAUL A. LORAAS' CAMERON R. SEYBOLT AMASA E. WHEELER (1889-1970) 500 SOUTH STEPHENSON AVENUE H.B. FRYBERGER. SR. (1865-1937) SUITE 301 BRIAN P. LUNDGREN IRON MOU NT A IN, M ICH IGAN 49801 (906)778-4000 FAX [218)725=6800 -ALSO liCENSED IN WISCONSIN tALSO LICENSED IN ARIZONA OALSO LICENSED IN MICHIGAN August 10, 2001 Writer's Direct Dial Number: (218)725-6807 E-Mail Address: mfskala@fryberger.com Ms. Judy Weyrens Deputy Clerk . City of St. Joseph 25 College Avenue North St. Joseph, Minnesota 56374 RE: CITY OF SAUK RAPIDS, MINNESOTA HEALTH CARE FACILITIES REVENUE NOTE (OPPORTUNITY MANOR PROJECT) Dear Ms. Weyrens: In connection with the above-referenced project, enclosed are the following: · Resolution Giving Approval to a Project by Opportunity Manor, Inc., Under Minnesota Statutes, Section 469. 152 Through 469.165; Referring the Proposal to the Minnesota Department of Trade and Economic Development for Approval; and Approving a Joint Powers Agreement, to be considered by the City Council after the public hearing on August 16 - please send me a signed copy after it has been adopted · Joint Powers Agreement - please have the tagged pages signed · Certificate of Officials - please complete the table on the first page, attach a signed copy of the resolution adopted on July 19, and have the tagged pages signed Please return all of the signed documents to me. I will provide you with a fully-executed copy of the Joint Powers Agreement following the closing on this issue. Please feel free to contact me if you have any questions. Very truly yours, Ö!S~ cmw Enclosures G,IAPPSI WP5 J ICMW\cwsaulrrapidssljae-lt J. v.pd . Member introduced the following Resolution and moved its adoption: RESOLUTION GIVING APPROV AL TO A PROJECT BY OPPORTUNITY MANOR, INC., UNDER MINNESOTA STATUTES, SECTION 469.152 THROUGH 469.165; REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT FOR APPROVAL; AND APPROVING A JOINT POWERS AGREEMENT BE IT RESOLVED, by the City Council of the City of St. Joseph, Stearns County, Minnesota (the "City"), as follows: 1. General Recitals. a. The purpose of Minnesota Statutes, Sections 469.152 through 469.165 as amended, relating to municipal industrial development (the "Act"), as found and determined by the legislature, is to promote the welfare of the State of Minnesota (the "State") by the active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental action to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic unemployment. . b. Factors necessitatírig. the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas and the rapidly rising increase in the amount and. cost of governmental services required to meet the needs of the increased population and the need for development of land uses which will provide access to employment opportunities for such population. 2. Description of the Proiect. a. Opportunity Manor, Inc. (the "Borrower") located at 1139 Franklin Avenue in Sauk Rapids, Minnesota, a Minnesota nonprofit corporation and organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code") has proposed issuance of revenue obligations, in one or more series, in an amount not to exceed $1,835,700 (the "Obligations"), to undertake and fmance a project described in Exhibit A attached hereto (the "Project"), a portion of which is located in the City, as described in Exhibit A hereto. b. The Project will be owned and operated by the Borrower. c. As more fully described in Exhibit A, portions of the Project are located in the City, the City of Sauk Rapids (the "Issuer"), the City of St. Cloud and Town of Minden, Minnesota (collectively, and along with the Issuer, the " Host Municipalities") , 3. Recitals Relating to the Joint Exercise of Powers. . a. Under the Act, the City and the Host Municipalities are each authorized and empowered to issue revenue bonds or a revenue note to undertake and fmance or refmance all or any part of the costs of a project consisting of the refmancing of debt incurred with respect to, or acquisition and betterment of health care facilities or revenue-producing facilities of organizations described in Section SOl(c)(3) of the Code and to refund bonds previously issued under the Act. b. The Borrower has requested that the City and the Host Municipalities cooperate (as permitted by Minnesota Statutes, Section 471.59) through a joint powers agreement in authorizing the fmancing of the Project through the issuance of the Obligations pursuant to the Act. c. A draft copy of the Joint Powers Agreement among the City and the Host Municipalities (the "Joint Powers Agreement") has been submitted to the Council and is on file in the offices of the Clerk. 4. Recital of Representations Made by the Borrower. a. The City has been advised by representatives of the Borrower that: (i) conventional fmancing is available only on a limited basis and at such high costs of borrowing . that the economic feasibility of operating the Project would be significantly reduced; (ii) on the basis of information submitted to the Borrower and their discussions with representatives of area fmancial institutions and potential buyers of tax-exempt bonds, the Obligations could be issued and sold upon favorable rates and terms to finance the Project; (iii) the Borrower will experience a significant debt service cost savings as a result of the Project; and (iv) the Project would not be undertaken in its present form but for the availability of financing under the Act. b. The Borrower has agreed to pay any and all costs incurred by the City in connection with the issuance of the Obligations, whether or not such issuance is carried to completion. c. The Borrower has represented to the City that no public official of the City has either a direct or indirect fmancial interest in the Project nor will any public official either directly or indirectly benefit flllancially from the Project. 5. Public Hearing. a. As required by the Act and Section 147(f) of the Code, an initial resolution was adopted by the Council on July 19, 2001, scheduling a public hearing on the issuance of the Obligations and the proposal to undertake and finance the Project. 2 . . b. As required by the Act and Section 147(f) of the Code a Notice of Public Hearing was published in the City's official newspaper which is a newspaper of general circulation in the City, calling a public hearing on the proposed issuance of the . Obligations and the proposal to undertake and finance the Project. c. As required by the Act and Section 147(f) of the Code: 1. the Issuer has held a public hearing on August 13, 2001, on the issuance of the Obligations and the proposal to undertake and fmance the Project; 11. . each of the other Host Municipalities have held or will hold a public hearing on the issuance of the Obligations and the proposal to undertake and fmance the portion of the Project located within the jurisdictional limits of the respective Host MuniCipality; and iii. the City Council has, on August 16, 2001, held a public hearing on the issuance of the Obligations and the proposal to undertake and fmance the portion of the Project located within the jurisdictional limits of the City , at which all those appearing who desired to speak were heard and written comments were accepted. . 6. Findings. It is hereby found, determined, anddec1ared as follows: a. The welfare of the State and the City requires the provision of necessary residential care facilities for mentally and physically handicapped adults so. such services· are available to residents of the State and the City at reasonable cost. . b. The City desires to facilitate the selective development of the community and help to provide the range of services and employment opportunities required by the population. The Project will assist the City in achieving those objectives; help to stabilize market valuation ofthe City; help maintain a positive relationship between assessed valuation and debt; and enhance the image and reputation of the community . c. On the basis of information made available to this Council by the Borrower it appears, and this Council hereby finds, that: (1) the Project constitutes properties, real and personal, used or useful in connection with a revenue producing enterprise within the meaning of Subdivision 2 of Section 469.153 of the Act; (2) the Project furthers the purposes stated in Section 469.152 of the Act; (3) the Project would not be undertaken but for the availability of financing under the Act and the willingness of the Issuer to furnish such financing; and (4) the effect of the Project, if undertaken, will be to: (i) encourage the development of economically sound industry and commerce, (ii) assist in the prevention of the emergence of blighted and marginal land, (iii) help prevent chronic unemployment, (iv) provide the range 3 of service and employment opportunities required by the population, (v) help . prevent the movement of talented and educated persons out of the State and to areas within the State where their services may not be as effectively used, and (vi) promote more intensive development and appropriate use of land within the City , eventually to increase the tax base of the community. d. The City acknowledges, fInds, determines and declares that the provision of necessary residential care facilities for mentally and physically handicapped adults so that such services are available to residents of the State at a reasonable cost is a public purpose. 7. State Approval a Precondition. a. The proposal to undertake and fmance that portion of the Project located in the City but outside of the jurisdictional limits of the Host Municipalities, and the issuance of the Obligations are hereby given approval by the City subject to the approval of the Project by the Department of Trade and Economic Development of the State ("DTED"). b. In accordance with Subdivision 3 of Section 469.154 of the Act, the offIcers of the City or their designees, are authorized and directed to cooperate with the Issuer in submitting the proposal for the Project to the DTED requesting approval, and other . officers, employees and agents of the City are hereby authorized to provide DTED with such information as it may require; 8. Limited Obligation. The Obligations, when and if issued for the Project, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City or the Host Municipalities. (There will, however, be a charge, lien or encumbrance on the Project, which is not an asset of the City or the Host Municipalities.) The Obligations, when and if issued, shall recite in substance that the Obligations and the interest thereon, are payable solely from revenues received from the Project and property pledged for payment thereof, and shall not constitute a debt of the City or the Host Municipalities. 9. Approval and Execution of Joint Powers Agreement. a. The Joint Powers Agreement is hereby made a part of this Resolution as though fully set forth herein and is hereby approved in substantially the form presented to the City Council. The Mayor and the Clerk, or the authorized designee of any of the foregoing, are authorized and directed to execute, acknowledge, and/or deliver the Joint Powers Agreement on behalf of the City with such changes, insertions, and omissions therein as the City attorney may hereafter deem appropriate, such execution to be conclusive evidence of approval of such document in accordance with the terms hereof. 4 . . b. The Mayor, the Clerk, or the authorized designee of any of the foregoing, are authorized and directed to execute and deliver such other documents or certificates needed from the City for the sale of the Obligations. c. The approvals in this Section are specifically subject to execution of the Joint Powers Agreement by each of the Host Municipalities and approval of the Project by DTED. Adopted: August 16, 2001. Mayor Attest: Clerk The motion for the adoption of the foregoing Resolution was duly seconded by Member . ' and upon vote being taken, the following voted in favor thereof: and the following voted againstthe same: and the following were absent: whereupon, said Resolution was declared duly passed and adopted and approved and signed by the Mayor and attested by the Clerk. G.-IAPPSI WP511BondlsaJJluapidsstjoNol. wpd 5 . EXHIBIT A . 1185 Flamewood Drive NE 4-bedroom tri-level home with refinancing and Town of Minden, MN a 2-stall garage renovation 1708 - ~ Street SE 5-bedroom patio home with a refinancing and St. Cloud,MN 2-stall garage renovation 902 Gloria Drive 4-bedroom bi-level home with refmancing and St. Cloud, MN a 2-stall garage renovation 926 Cory Lane 4-bedroom patio home with a refinancing and St. Cloud, MN 2-stall garage renovation 930 Cory Lane 4-bedroom patio home with a refinancing and St. Cloud, MN 2-stall garage renovation 861 - 1r Avenue North 12-bedroom home refmancing and St. Cloud, MN renovation . 1311 - 13th A venue SE 12-bedroom home refinancing and St. Cloud, MN renovation 825 Linda Lane 4-bedroom patio home land acquisition and Sauk Rapids, MN construction 1119 - 11 th Street North 4-bedroom patio home land acquisition and Sauk Rapids, MN construction 13 - 12th A venue SE 4-bedroom patio home land acquisition and St. Jose h, MN construction G, lAP PSI WP 51 \Bond\saukrapidss /joe-ro 1. »pd ~ ~ . JOINT POWERS AGREEMENT Opportunity Manor, Inc. Project This JOINT POWERS AGREEMENT dated as of , 2001 (this "Agreement"), is being entered into among: I. the City of Sauk Rapids, Benton County, a municipal corporation and political subdivision organized and existing under the laws of the State of Minnesota (the "Issuer"); 11. the City of S1. Cloud, Steams, Benton and Sherburne Counties, a municipal corporation and political subdivision organized and existing under the laws of the State of Minnesota ("S1. Cloud"); 111. the City of S1. Joseph, Steams County, a municipal corporation and political subdivision organized and existing under the laws ofthe State of Minnesota ("St. Joseph"); and IV. the Town of Minden, Benton County, a municipal corporation and political subdivision organized and existing under the laws ofthe State of Minnesota . ("Minden"). (The Issuer, S1. Cloud, S1. Joseph and Minden are collectively referred to herein as the "Parties".) 1. Recitals. a. This Agreement is being entered into pursuant to Minnesota Statutes, Section 471.59 (the "Act"). b. Opportunity Manor, Irtc., it Minnesota nonprofit corporation and organization described in Section 501 (c )(3) of the Irtternal Revenue Code of 1986, as amended (the "Borrower"), wishes to finance the costs of a project (the "Project") described in Exhibit A attached hereto, all on behalf of and owned and operated by the Borrower. c. The Borrower proposes to finance the Project through an issuance of revenue obligations pursuant to Minnesota Statutes, Sections 469.152 through 469.165 (the "Municipallrtdustrial Development Act"). d. Portions of the Project are located within the jurisdictional limits of each of the Parties. e. Each of the Parties is a governmental unit under the Act and each is authorized to issue revenue obligations pursuant to the Municipallrtdustrial Development Act. - f. The Borrower has requested that the Parties cooperate, through this Agreement, to . finance the Project through the issuance of health care facilities revenue obligations in an amount not to exceed $2,200,000 pursuant to the Municipal Industrial Development Act (the "Obligations"). g. The Borrower has requested that the Issuer issue the Obligations for the Project. h. The Borrower has requested that the Issuer issue the Obligations for the Project and has further proposed that the Parties enter into this Agreement pursuant to the Act and Section 265(b) of the Code, pursuant to which the Issuer will issue the Obligations in an amount not to exceed $2,200,000 in order to finance or refinance the Project. 2. Findings. a. It is in the best interests ofthe Parties to cooperate with and facilitate the issuance of the Obligations by the Issuer as requested by the Borrower. b. The Issuer will receive substantial benefit from the Project which will provide residential care facilities for mentally and physically handicapped adults, accessible and available on an equal basis to residents of each ofthe Parties. 3. Statement of Purpose and Authority. This Agreement is entered into for the purpose of . facilitating the issuance of the Obligations by the Issuer pursuant to the Municipal Industrial Development Act to finance the Project. 4. Authorizations. a. St. Cloud authorizes the Issuer to issue the portion Qfthe Obligations allocable to that part of the Project located in St. Cloud on its behalf in conformance with the terms and conditions set forth herein. b. St. Joseph authorizes the Issuer to issue the portion of the Obligations allocable to that part of the Project located in St. Joseph on its behalf in conformance with the terms and conditions set forth herein. c. Minden authorizes the Issuer to issue the portion of the Obligations allocable to that part ofthe Project located in Minden on its behalfin conformance with the terms and conditions set forth herein. d. The Issuer is authorized: 2 . . 1. to exercise the powers under the Act and the Municipal fudustrial Development Act by adopting, approving and executing such resolutions, documents and agreements as are necessary or convenient to authorize, issue and sell the Obligations and such other resolutions, documents and agreements are necessary or required in connection with the issuance of the Obligations and to give effect to or carry out the provisions ofthis Agreement and the documents under which the Obligations are issued and/or secured and 11. to exercise the powers under the Act, the Municipal fudustrial Development Act and Section 265(b) of the Code by adopting, approving and executing such resolutions; documents and agreements as are necessary or convenient to authorize, issue and sell the Obligations and such other resolutions, documents and agreements are necessary or required in connection with the issuance of the Obligations and to give effect to or carry out the provisions ofthis Agreement and the documents under which the Obligations are issued and/or secured and 111. to take all actions necessary or convenient in connection therewith and pennitted by the Act, the Municipal fudustrial Development Act and Section 265(b) of the Code. - 5. Limited Obligations, The Obligations shall be special, limited obligations ofthe Issuer and - shall not be payable from nor charged against any funds of any of the Parties, nor shall any of the Parties be subject to any liability thereon, nor shall any holder ofthe Obligations ever have the right to compel any exercise of the taxing power of any of the Parties to pay the Obligations or the interest thereon, nor to enforce payment against any property of any ofthe Parties, nor shall the Obligations constitute a charge, lien or encumbrance, legal or equitable, upon any property of any of the Parties, nor shall the Obligations constitute a debt of any of the Parties within the meaning of any constitutional or statutory limitation. 6. Bank Oualification. The entire amount of the Obligations will be designated by the Issuer as "qualified tax-exempt obligations" under Section 265(b )(3) ofthe Internal Revenue Code of 1986, as amended. 7. Tenn. This Agreement shall tenninateupon the earlier of: a. defeasance of the Obligations; b. final maturity and payment of the Obligations; or c. payment in full of the Obligations prior to their final maturity. 3 . 8. Distribution of Assets. Upon tennination of this Agreement, any property acquired pursuant . to this Agreement and any surplus moneys sha11 be distributed: first, according to the documents entered into by the Issuer in connection with its issuance of the Obligations, second according to the Municipal Industrial Development Act and third, to the Issuer. 9. Amendments. This Agreement may not be amended while any portion of the Obligations remains outstanding. 10. Counterparts. This Agreement may be executed in counterparts, each of which wi11 be an original, but which together wi11 constitute one and the same instrument. IN WITNESS WHEREOF, the Parties have caused their names to be signed by their respective officers thereunto duly authorized, as of the day and year first above written. CITY OF SAUK RAPIDS, MINNESOTA By Mayor By - Clerk- Administrator - G:IA P PSI WP 5 J IBollá\sQ "krQpid.sj¡>-Qg. "pd 4 - . itg of St. Joseph 25 College Avenue NW P.O. Box 668, St. Joseph, MN 56374 (320) 363-720 I Fax: 363-0342 July 27,2001 CLERK! ADMINISTRATOR Pat & Laura Bednarz Judy Weyrens PO Box 496 St. Joseph, MN 56374 MAYOR Larry J. Hosch COUNCILORS RE: Violation of Ordinance # 65 Bob Loso Cory Ehlert Dear Pat & Laura: Kyle Schneider Alan Rassier This letter has been prepared to provide you with notice and information regarding an alleged violation of Ordinance No. 65 of the St. Joseph Code of Ordinances. This violation is alleged to have arisen out of an incident on July 16,2001. (copy enclosed). ~ The St. Joseph City Council will review these allegations and consider appropriate action including a monetary fine as detailed in Ordinance 65. The -- meeting will be conducted on Thursday, August 16, 2001 at 7:45 p.m. in the St. Joseph City Hall, 25 College Avenue North. At that time you are entitled to a hearing to be conducted in accordance with Minnesota Statutes 14.57 to 14.70. This hearing will be for the purpose of determining whether or not the alleged violation did in fact occur. At that hearing, you have the right to cross examine witnesses and present evidence on your behalf. The proceedings will be video recorded. Based upon the evidence presented, the Council will then make a determination as to whether or not the alleged violation did in fact occur. If you wish to have an evidentiary hearing of this type, you must contact the City Clerk/Administrator in writing at least seven days prior to the scheduled Council meeting. If a request for hearing is not received by the City Clerk/Administrator at least seven days before the hearing, you will then be considered to have waived your right to have an evidentiary hearing and no evidentiary hearing will be scheduled. A waiver of this right to hearing will be equivalent to an admission of the basic allegation (s) alleged herein and reported by the complaining party. If you waive your right to hearing, or if an evidentiary hearing is conducted and the Council determines that a violation did occur, then and in those events, the Council will proceed immediately to consider a disposition. - Pat & Laura Bednarz . July 27, 2001 Page 2 You have the right to be represented at the time of this meeting during either the evidentiary hearing, if requested, or the dispositional hearing. If you wish to have legal representation, you must hire your own attorney. If you have any questions regarding the law or your rights, I suggest that you contact an attorney to discuss this matter. Your failure to appear at this meeting will be considered an admission of the allegation and a waiver of your right to address the Council before the determination of a disposition. If you fail to appear, the Council will take whatever action which is deemed appropriate and you will be notified of this action at a later time. Sincerely, Judy Weyrens ~ Administrator/Clerk ~ cc: John Scherer Mayor and Members of the City Council Police Chief Gary Will, Jr. 3T. JOSEPH Page 1 Case No. 01001970 )OLICE DEPARTMENT Beat RptDist Type: Seq: CITY 1 rime / Incident Attempt Occurred Date Time Day 685s1a Sale of Tobacco to Children 0 On or From 0711612001 17:25 Man 0 of Incident To 0711612001 17:30 Man ~APLA YETTE, ST, JOSEPH, MN Reported 0711612001 17:25 Man Jispo "V' = Victim 'RP' = Reporting Party "IN" = Witness ·s· = Suspect '0' = Other Last, First, Middle (Firm if Business) Race Sex Age HT WT Hair Eyes Home Phone S FRA TZKE, LUKE ALAN W M 23 0 0 (320) jdress DOB DL Number State Work Phone 02/18/1978 MN (320) ity, State, Zip Code SSN Local 10 # State# FBI# ST. JOSEPH MN 56374- Last, First, Middle (Firm if Business) Race Sex Age HT WT Hair Eyes Home Phone 0 MARTIN, NICOLE LYNN W F 16 0 0 BRO GRN (320) Jdress DOB DL Number State Work Phone 2600 S 13TH ST 02/22/1985 MN (320) !y, State, Zip Code SSN Local 10 # State# FBI# ST. CLOUD MN 56301- Last. First, Middle (Firm if Business) Race Sex Age HT WT Hair Eyes Home Phone dress DOB DL Number State Work Phone y, State, Zip Code SSN Local 10 # State# FBI# .Last, First, Middle (Firm if Business) Race Sex Age HT WT Hair Eyes Home Phone jress DOB DL Number State Work Phone j, State, Zip Code SSN Local 10 # State# FBI# lOpS is : Conducting tobacco complience checks, Nicole Lynn Martin 02-22-85 went into the LaP/ayette Bar and asked Luke Alan Frantzke 02-18-78 for a pack of Mar/bora cigarettes. Frantzek directed her to the vending machine in another area of the bar. After attempting to insert dollar bills into the machine and the machine rejecting them, Martin went to Frantzke and asked for different bills. Martin returned to the vending machine and purchased one package of Mar/bora Red cigarettes. Was there a witness to the crime? N Continuation D PropertyList ·00 Property Damage $ : $0.00 Attached : Attached Was a suspect arrested? N UCR: 26 Press 0 Domestic Violence Case: D Is a suspect named? N Release: Can suspect be located? N Gang Related: N Hate Crime: 0 Victim Senior Citizen: 0 Can suspect be described? N Can suspect be Identified? N Pursuit: D Force Used: 0 Child Abuse: 0 Is stolen property identifiable? N Is there an unusual M.O. ? N Disposition: Is significant physical evidence present N Solvability Point Total: 0 Connecting Case # Is there a majorinjury/sex crime involve N Is this a high profile incident? N Is there a good possibility of solution? N Assigned To: Date: II :er 10: Officer Dave Winde/s 7710 Reviewed By : I ~a7: ed to; ST. JOSEPH MN POLICE DEPARTMENT *01001970* ST. JOSEPH Page 2 l,,,se I'<U. 010019',0 . POLICE DEPARTMENT Type: I Seq: 1 Crime /Incident I Attempt Property Report 609.685s1a Sale of Tobacco to Children 0 Item# Tag # Article Brand Model Serial No. (or Drug Type) OAN UCR 1 TOBACC MARLBOR K Description o Stolen Value 0 [X] Evidence Value 5 1 PACKAGE OF MARLBORO RED CIGARETTES o Recovered Value 0 o Safekeeping Value 0 Location I 0 Damaged Value 0 Seized Owner Owner Address , ST. JOSEPH MN 56374- Item # Tag # Article Brand Model Serial No. (or Drug Type) OAN UCR Description o Stolen Value o Evidence Value o Recovered Value o Safekeeping Value Location J 0 Damaged Value Seized Owner Owner Address Item # Tag # Article Brand Model Serial No. (or Drug Type) OAN UCR Description o Stolen Value o Evidence Value o Recovered Value o Safekeeping Value Location I 0 Damaged Value Seized Owner Owner Address Item# Tag # Article Brand Model Serial No. (or Drug Type) OAN UCR Description o Stolen Value o Evidence Value n Recovered Value o Safekeeping Value Location I 0 Damaged Value Seized Owner Owner Address Item# Tag # Article Brand Model Serial No. (or Drug Type) OAN UCR I Description o Stolen Value o Evidence Value o Recovered Value o Safekeeping Value Location I 0 Damaged Value Seized Owner Owner Address Item# Tag # Article Brand Model Serial No. (or Drug Type) OAN UCR Description o Stolen Value o Evidence Value o Recovered Value o Safekeeping Value Location I 0 Damaged Value Seized Owner Owner Address Officer 10 : Officer Dave Windels 7710 I Reviewed By : I D;t¡: Licensed 10: ST. JOSEPH MN POLICE DEPARTMENT 01001970 . . . TOBACCO BUYER REPORT eSt. Joseph Police Department ICR# (]:/c2c/~cl Date of Attempt: 07-16-0 I Time in: ;71J Time out: /727 Name of Business: t/t IP/fiYtTT"é Address: , N ~C¿ßé Are; St. Joseph, MN 56374. My name is -bJ.iGQ\-t . I am.lln- years of age. My date of birth is: Z! 22 }c:¿ 5 I was born in -Wo VY\ "5 county, State of ~ . PURCHASE I purchased, ~\ tbVb ~d~ ' a tobacco product and paid $ 5 J D1) to (describe tobacco product purchase~) the seller described below. REFUSAL TO SELL g.ehS I attempted to purchase ~ AflL ßD(LO l, J (; ,r r if, a tobacco product, but the seller: . (des ribe tobacco product taken to counter) ( ) refused to sell to me. e ) asked for an ill and when I gave my excuse for not having an ill refused to sell to me, {'/ e ) asked my age and when I said my true age refused to sell to me. SELLER DESCRIPTION , The clerk/cashier is: (describe) Male X' Female Hair Color l'>M Height .l9/ Z. Weight \ 1 D ~ - Age· . eop Color tlrflL T Trousers/dress~ colo~ ~C~ S;rL~7S VV\r) \ Other (ID/name badge, etc.) -ÞJ!Þt At the time of the purchase Idid not possess nor did I display any fonn of written identification. I have read the above statement and an facts are true and correct. Print Name: _~\ \ (l) \tJv\ CvV-t\ n SignaturllµiJt 14 {ulJJr¡ Date 1/JJo.þl Witnessing Officer: - Print Name: Signature Date - · TERMS OF THE SEPARATION AGREEMENT AND RELEASE (GARY WILL) The following is a recital of the basic terms of the Separation Agreement negotiated by the City of St. Joseph and Chief Gary D. Will, Jr. 1. Chief Gary will shall tender his resignation as Chief of Police 2. The City shall pay Chief Will severance of$ 8,000, less appropriate deductions and withholdings. Payment is to be made upon the expiration of any rescission period mandated by law. 3. Chief Will releases any potential claims against the City, or any City officials,agents, employees, resulting from his employment. NeitheÍ' Chief wiIi nor the City shall disparage or defame the other, or any of the City's officials, agents, or emplòyees, regarding matters concerning the employment relationship. 4. All information released regarding Chief Will's employment shall be through the City Clerk/Administrator. 5. The City shall not oppose Chief Will's application for unemployment compensation, if such a claim is filed. 6. Chief Will shall not disclose confidential information of the City gained during his tenure as Chief of Police. - 7. Chief Will shall return all City property in his possession to the City. 8. Chief Will shall be afforded all rights to extended medical coverage under COBRA. 9. The settlement shall not constitute an admission of any wrongdoing by the City. ; ~5EH MEMORANDUM . 1200 25th Avenue South, P.O. Box 1717, St. Cloud, MN 56302-1717 320.229.4300 800.572.0617 320.229.4301 FAX TO: Honorable Mayor and City Council City of St. Joseph FROM: Joe Bettendorf DATE: August 14, 2001 RE: County Road 121 Improvement St. Joseph, MN SEH No. ASTJOE 0004.00 25 A summary of recent assessment rates is as follows: 09/01/99 90th and 9lst Sanitary Sewer and Water Main A-STJOE 9902.00 Sanitary Sewer $3,613.80 (100% ) - Water Main $5,291.38 (100%) ~ 10/06/98 1998 Street Improvements A-STJOE 9802.00 Curb and Gutter $8.50IFoot (100%) Street Reconstruction $26.l21F00t (60%) Street Overlay $7.66IFoot (60%) Alley Overlay $7.66IFoot (60% ) Alley Reconstruction $21.l61F00t (60%) Street Reclaim $17.55IFoot (60%) 11/27/96 East Minnesota Street Improvement A-STJOE 9604.00 New Replacement Curb & Gutter $7.50IFt $4.50IFt (60%) Street $37.50IFt $22.50IFt (60% Driveway Apron $28.00/SY N/A Sanitary Sewer $5,340IUnit N/A Sewer Service Only $500.00 N/A Trunk Sewer Charge $350.00 N/A Water Service Only $500.00 N/A Short Elliott Hendrickson Inc. . Your Trusted Resource . Equal Opportunity Employer .. Couñty Road 121 Improvement August 14, 2001 Page 2 . 10/05/94 East Minnesota Street Sewer & Water A-STJOE 2439.00 Sanitary Sewer $5,340/Lot (100% ) Water Main $3,560/Lot (100%) Trunk Sewer $350/Lot 10/05/92 7th A venue Southeast Improvement Curb and Gutter $6.75/Foot (100%) Street Reconstruction $17.59/FF (100% of Widening Only) 09/29/93 West Minnesota Street Improvement A-STJOE 2447.00 Curb and Gutter $6.70/FF (100%) Driveway Apron $25.50/FF (100% ) Street $0 (No Assessment) - - djg W:\stjoelOOO4lcorrI08140 I-city-M.doc ·, AUG-14-01 TUE 04: 15 PM CITY OF ST CLOUD ENG FAX NO. 3202557250 P. 04 First Addendum to Sewer Use Agreement - cont. . IN WITNESS WHEREOF, ST. CLOUD and ST. JOSEPH execute this FIRST ADDENDUM in their corporate names, this day of , 2001. THE CITY OF ST. CLOUD: THE CITY OF ST. JOSEPH: I By: By: Mayor Mayor By: By: City Clerk City Clerk - - . . DEHLER SPECIAL USE REQUEST Resolution of finding The request of Jean Dehler for a special use permit came before the Planning Commission at a public hearing held on August 6, 2001. The purpose of the hearing was to consider a Special Use Permit to allow a rental unit in a General Business District. Theproperty,islegallydescribed as follows: Lot 007 Block 009 Townsite of 8t. Joseph; Lot 8 Less E 2' and the E'ly 6' of Lot 007 Block 009 Townsite of St. Joseph. The request for Special Use has been submitted by Jean Dehler, 31 West Minnesota Street, St. Joseph MN 56374. Notice of this matter was duly served and published. In consideration of the information presented to the Planning Commission and its' application to the Comprehensive Plan and Ordinances of the City of S1. Joseph, the Planning Commission makes the following findings: The proposed use is consistent with the standards for a Special use Permit as stated in St. Joseph Code of Ordinances 52.8 subd 4 (a-k). . Therefore, based on the above findings, the Planning Commission makes the following recommendation: Approve the Special Use Request with the following contingencies: 1. The Rental License shall be contingent upon the property being inspected by the Fire Marshall (Fire Chief), Building Official and Rental Housing Inspection. 2. All Fire and Safety Codes found to be deficient will be corrected before a rental license is issued and the property occupied. 3. The property owner will immediately designate and mark the required fire lane as agreed to in '1994. The motion was seconded by Utsch and passed unanimously. l l itg of St. Joseph. l 25 College Avenue NW P.O. Box 668, St. Joseph. MN 56374 (320) 363-7201 City of St. Joseph l Fax: 363-0342 Public Hearing I CLERK! '1 ADMINISTRATOR The Planning Commission for the City of St. Joseph will conduct a public hearing on Judy Weyrens Monday, August 6, 2001 at 7:00 PM in the St. Joseph City Hall. The purpose of the MAYOR hearing is to consider a Special Use Permit request to allow a rental unit in a General -, Business District. The property is located at 31 West Minnesota Street, legally described Larry J. Hosch as Lot 007 Block 009 Townsite of St. Joseph; Lot 8 less E 2' and the E'ly 6' of Lot 007 COUNCILORS Block 009 Townsite of St. Joseph. ~ Bob Loso Cory Ehlert St. Joseph Code of Ordinances 52.21 subd. 3 (f) provides for the following under Special Kyle Schneider Uses: Mixed use of a Permitted Use and a multiple residential dwelling units; but only if at A]an Rassier least 50% of the interior square footage (exclusive of the basement or cellar) is used full time for a Permitted Use. The area consisting of multiple residential dwelling units must meet the standards of Section 52.19, Subd. 5 and 6. Parking requirements shall be separately determined for the commercial and residential uses in accordance with Section 52.14, Subd. 4. 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JOSEPH. .MINNESOTA 56J7~ Office of the Chief MEMO DATE: April 15, 1994 TO: Ci ty Council Members FROM: Dick Taufen Fire Chief RE: Linnemann Inn Parking Lot After reviewing the parking lot plan for the L.innemann Inn, I will approve it with the following recommendations: - 1. A signed agreement between the property owner, Mr. ~) Dehler, and the adjoining property owner, Mr. Del.¡tz. -- 2. Ample signing to distinguish the fire lane from the parking area. I f you have any questi~ns, or need additional information please do not hesitate to contact me. C--; -. f'·---- ./? iil / ~~ '. "4 .' . ~ ,j,;:...?i. Il.-- . ..4f< - '. d_ . -, . .' . ¿.~/ . / ~Ro"Et> ~y ~al/flÞ Of - . fr:roS'~k IvVltìðf<.. / PitrE. CJlfl/f? - PLlr,v1t?7 CoM~í5")io¡vlt . I ' _bD . J 7° t .Ç.o-¡--.o'-rJO' ~ ~I'I.E""¥ ÞRI~6"'A7 . . ~). l' " \F:;. ~ .( ."'- ...;,. :~~:~~.l . _.~ . ... , -.....~ -~ ~.,' p:r¡l : } . I..... . - - -i. r. I . _ ~ 'J" :~~- í (RE f..JI:?J.... --':t i /5 5hIrÞS.D ¡tV ;:, :; :. ; ;2?:? pftR~W? 5fð1 . . 7 . ¡J7 r- _ . . -c- ".~~.: ~ r\Ù _."~':.:, .;. fj .Ifl -i~:} l-~; .'~' ~.- - 7.'5.·~·;· " : ; -~. - .~ f~~t::'::7~-',,;~JJè: ~ ~ ~ LoT"3 7 t..~ ß~ 9 . .. .. ()RI'j/loI;,-L TòvJ¡Jfl C)-.. n· ~ - L ~ .~,.t /\ IP#~~~ ;¡; ¡J ,.J ." ~ Ifol f7<~tcJ.. f3y );~e... DeJ.LeJ( IrffRoveÞ ~ r . ß-.- ~ if,. 5T :rof"p~ FIRE., d~f I Þ . ~ - - U STATE ARE MARSHAL DIVISION ~ . . .as BIGELOW BUILDING . . 4sa NORTH SYNDICATE STREET ST. PAUL, MINNESOTA 55104-4127 TELEPHONE: (612) 643-3080 STATE OF MINNESOTA DEPARTMENT_ OF PUBLIC SAFETY AprilS. 1994 Brad Lindgren Linnemann Inn. Inc. 31 Minnesota StreetWest Sr. Joseph, Minnesota 56374 RE: Linnemann Inn, St. Joseph, MN Dear Mr. Lindgren: This is a follow-up to our meeting on Friday, April 1. 1994. to discuss the status of correction of building and !Ïre code violations atthe Linnemann Inn.. Also in attendance at this meeting were Mr. Steve Dehler and St. Joseph Building Official Ron Euteneuer. This constitutes inyunderstanding. of the issues we . discussed that day and the decisions reached. If you have any additions or corrections, please let me : know. Based on the cominitment given by Mr. Dehler and yourself that all high school students. will be removed from the Linnema,nnlnn by no later than June 15. 1994 and that the uppertwo lévels will be returned to their previous use as Mr. Dehler's private residence, the following requirements will no longer be applicable after that date: 1. Automatic sprinkler protection throughout the entire building. 2. Protection of the underside of the stairway to third floor. I would recommend;·howev~r, that if there is to be any combustible storage under that stairway, the protection be provided anyway. It represents minimal cost and will afford an increased level of protection against failure of the stairway in case of fire. 3. Enclosure of the furnace on second floor. UBC(88), Sec. 1213 specifies that such protection is not required for heating equipment serving only oneaþartment... . . . 4. Enclosure of the attic space on second floor.MUFC(91), Sec. 11303(b)4exempts attics within a private residence from the enclosure requirement 5. Replacement of the hollow core wood door into the attic/storage area on the north end of the second floor. As I understand it, Mr. Dehler will be moving back into the Linnemann Inn sometime between June 15 and June 30, 1994. As I explained at our meeting. please be aware that any usage of the upper two levels for other than Mr. Dehler's private residence could result in all or some of these five requirements again being applied to the Linnemann Inn. AN eQUAL OPPORTUNITY EMPLOYER ~ " " . þndgren . -"-,". ,'1994 (wo of Three It was agreed that the remaining violations would be corrected within the following timeframes: 1. By no later than June 30, 1994: a. The furnace room on first noor will be completely enclosed with at least one-hour construction (including a one-hour rated firedoor assembly set in a rated steel frame) - or - this room will be protected with automatic sprinklers. b. The hollow core wood door into the understair storage area located at the north end of the first floor will be replaced with at least a 20-minute rated door/frame assembly - or - all storage will be removedfrom this space, the door removed and the space cQnverted to an alcove. Please be aware that no combustible storage would be allowed in the alcove. c. The 23 ft dead-end corridor at the south end of the first floor will be eliminated. d. Fire department access will be provided to the rear of the building as specified by the St. Joseph Fire Department. I'd like to point out that the fire code allows the access requirements to be modified when buildings are protected with complete automatic sprinkler systems. I discussed this matter with Chief Taufen and he is willing to modify· the access requirements as allowed if the . building were to be completely sprinklered. .. .. 2. By no later than September 1, 1994 or the time at which the main noor is fully rented out to colle2:e students. whichever comes first: . ~ a. Additional detector(s), interconnected with the building fire alarm system, will be installed in the basement - or - all storage will be removed from the basement and this area kept free of all storage in the future. b. The basement, ceiling will be protected with one-hour construction - or - the basement will be protected with automatic sprinklers - or - all storage will be removed from the basement and this area kept free of all storage in the future. I wouldview the removal of the storage as only a short- term fix as it's quite likely that over the long term storage will again reappear in the basement ..., By no later than September 1, 1994, an approved second exit extending directly to ground level will ,). be provided from the third floor. As I understand it, you plan to rent several rooms on the main level to college students during the summer months. The housemother is also to remain. Future plans are to either continue to rent this space to college students or rent it out for adult foster care use. If you choose the latter option. I'll need to know how the facility will be licensed by the Minnesota Department of Human Services before [ can give you specitïcs regarding the code requirements applicable to this type of use. It would be appreciated if you would keep Mr. Euteneuer and myself appraised of any changes in your plans or any other developments as. they occur. I would anticipate that a follow-up inspection of the Linnemann Inn will be scheduled on or soon after June 30, 1994. . . . nree .J closing, I want to thank you for the excellent cooperation my office continues to receive from Mr. Dehler and yourself. If you have any questions or need additional information, please feel free to contact me at my home office in Cold Spring at 612-685-8559; Sincerelv, J - ,~....... _ 'l' , ~ - .r'r- .... J..: ~,-,-;-J... '-". \¿'Yh..'k~-t.<..:..;,/ Robert L. Imholte, Sup.ervisor Deputy State Fire Marshal - -; -~~ cc: Steve Dehler, Box. 129, St. Joseph. MN .56374 Richard Taufen, Chief, St. Joseph Fire Department ..,/ Ron A. Euteneuer. Building Official,OmniBuilding Inspection. 110 Second St. S.. #230. Waite . Park. MN 56387 Tom Joachim, Director, State Building Codes and Standards Division Thomas R. Brace. State Fire Marshal'" Allen J. Rupp, Chief Deputy State Fire Marshal Roger J. Jemming, Supervisor - South Robert R. Berg, Deputy State Fire Marshal- Inspector RLl:di SFM File #232592 , / .' . , . MACANN SPECIAL USE REQEST Resolution of finding The request of Kelly McCann for a special use permit came before the Planning Commission at a public hearing held on August 6, 2001. The purpose of the hearing was to consider a special use permit to allow an owner occupied rental unit in a R1, Single Family Zoning District. The property is legally described as follows: Lot 009 Block 003 Clinton Village. The request for Special Use has been submitted by Kelly McCann, 134 - 6th Avenue NW, St. Joseph MN 56374. Notice of this matter was duly served and published. In consideration of the information presented to the Planning Commission and its application to the Comprehensive Plan and Ordinances of the City of St. Joseph, the Planning Commission makes the following findings: The proposed use is not consistent with the standards for a Special use Permit as stated in St. Joseph Code of Ordinances 52.8 subd 4 (a-k). The following standards have not been satisfied: St. Joseph Code of Ordinances 52.9 Subd. 4(a): Will not be detrimental to or endanger the public health, safety, morals, comfort, convenience or general welfare of the neighborhood or the City. Finding: Parking tenant vehicles on the street may cause a safety issue for residents, including children as they may be required to navigate around the vehicles. . Sf. Joseph Code of Ordinances 52.9 Subd. 4(c): Will be designed, constructed, operated and maintained so as to be harmonious and appropriate in appearance with the existing or intended character of the general vicinity and will not change the essential character of that area. Finding: The proposed special use will be non conforming to the majority of the neighborhood changing the character of the neighborhood. Sf. Joseph Code of Ordinances 52.9 Subd. 4(d): Will not be hazardous or disturbing to existing or future neighboring uses. Finding: At the present time there are no rental licenses issued in Clinton Village and the infusion of rental units may change the use of the existing homes and discourage families from moving into the neighborhoods in the future. Therefore, based on the above findings, the Planning Commission makes the following recommendation: Deny the Special Use Request of Kelly McCann to operate a owner occupied rental unit in an R1 Zoning District. The motion was seconded by Deutz and passed unanimously. . . CITY OF ST. JOSEPH 21 First Avenue Northwest POBox 668 St. Joseph, MN 56374 320-363-7201 - . .. DEVELOPMENT REY¡EW APPUCATION· .. . - - A licant: .Owner..· Address: Address: . . 1<;0 Ç!? - fl ..It Vacation of ROW/Easements ....:0...- ___ ",' Variance Non-conforming Use Permit Planned Unit Development Rezoning " Sign ". , . - - . . Subdivision ·TOTALFEES. Date fee received -'~_"'.i Date application received' .. PETITIONER MUST PROVIDE THE- FOLLOWING' - . A list of all property owners within 350 feet of the boundaries of the property. /. " ( This list must b.e obtained fro~ the Steams County Auditors Office) N ~ Seventeen full,slze folded copies of the plans. . . .. Payment of all associated fees must-be made in full whe~. appli~tioIÏ is!f1~~e: This application must be completed in full and be typewritten or clearly printed and must be accompanied by all information and plans required by applicable City Ordinance provisions. Before filing this application, you should confer with the Planning Department to determine the specific ordinance and · procedural requirements applicable to your application. "'¡"" · A determination of completeness of the application shall be made within ten business days of the application submittal. A written notice of application d~ficien.~i.es shall ge mailed. to the applicant within · ten business days of application. . . . ï:1is is to certify that I am making application for the described action by the City and that I am · responsible with all City requirements with regard to this request. This application should be processed in my name and I am the party whom the City should contact regarding any matter pertaining to this application. I have attached a copy of proof of ownership (either copy of Owner's Duplicate Certificate of ïitle, Abstract of Title or purchase agreement), or I am~the authorized person to make this application .- - - .. "'. . and the fee owner has also signed this appliCation. I q ~ ~¿~--.-- ]/1(,16~ ¡ ./ Oa{e I Signatur of Applicant . . X~ ~ /fth,~- 7 i, 16/ : Signature f FeeO...mer Oáte . I" . " . .. . . PROJECT NAME: LOCATION: LEGAL DESCRIPTION: LOT SIZE: PRESENT ZONING: REQUESTED ZONING:' PRESENT LAND USE DESIGNATION: . . . REQUESTED LAND USE . . . DESIGNATION: SETBAGK - REQUEST:' REASONS FOR REQUEST: < /'~/) ð-¿' ¿/..fß ,?'~~r ~o-z ~ J /;.. oJ '-'1 £/Z- Ari:.L J /J/d . ~~ rrt-c.. II U/l-.l r;r- , . I~ ,-:r¡"L- /2,---/ ///fr41¿~ AREA REQUIRED BY REQUESTED BY V ARfANCE . ORDINANCE ORDINANCE REQUESTED Front Yard Side Yard Rear Yard Open Yard ParkinQ' Accessory Bldq Size Lot Coveraae FINDINGS OF FACT: ¡!&Þ-t'/¡-¿ ¿f,t'ißN¿- kc.Ø'~ /p- ~ ,¿~/ ~r/Z/~\ ,-. .-- SPECIAL CONDITIONS: - . '-~ ~. i ~ -' -- ; ." >. ...\.0_: . . . . . itg of St. Joseph 25 College Avenue NW P.O: Box 668, St Joseph,'MN 56374 (320) 363-7201 -City of St. Joseph Fax: 363-0342 Public Hearing CLERK! ADMINISTRATOR Judy Weyrens The Planning Commission for the City of St. Joseph will conduct a public hearing on MAYOR Monday, August 6, 2001 at 7:20 PM in the St. Joseph City Hall. The purpose of the Larry l Hosch hearingistocorisider å Special Use Permit to allow an owner occupied rental unit in an R- 1, Single Family zoning district. The property is located at 134 - 6th Avenue NW. COUNCILORS Bob Loso St. Joseph Code of Ordinances 52.17 subd 3 (1) allows a special use permit as follows: Cory Ehlert Residential rental if owner occupied. For purposes of establishing if the property is owner Kyle Schneider occupied, the owner must be a natural person and the owner occupying the property as his Alan Rassier or her principal residence must owner a fifty percent (50%) or greater interest in the property . The request for special use has been submitted by Kelly David McCann, 134 - 6th Avenue NW St. Joseph MN 56374. . Judy Weyrens Administrator/Clerk Publish: July 27, 2001 J -- J .~. \~ (1)-"" ...... : :~¡ ~ i ..J- 73 · jQ - () · - · ',' - 7, 17 · 00 - , · ." v. z , k ~.1 :;L9' ~ I I -' ." · ... /' 5ùB' · 5~ - · "\ '1' /o.C{ ~u '0 - .. t/ - .. - ~ · - .' '¥" ~.~-~.. '. r"~'- .. - . ... .:... .-....- -¡:é~~~ ~~-Q#~'.l """:~. r'an .-.;.':. - .-1 / . -..':. .... " . . .. I . 1 g-o I T..; I , I b.... .- ,-- ¡rc. I ./( .:" ifð~2 . , ' I Jf~ '. ' I . "'~?3 Ai I, \ \ \ J;~- . '1'_lð.ð~ ~ 1- : .' /0. \. I' :@". '00. -' '- Iiì ; - 0- -. I '. . August 10,2001 City of S1. Joseph Attn: City Council Members 25 College Avenue NW P.O. Box 668 S1. Joseph, MN 56374 Dear City Council Members: This letter is to request approval of the special use pennit owner-occupied rental unit at 134 6th Ave NW and to demonstrate my willingness to work with the City of St Joseph to obtain this penni1. The reason for why I'm interested in renting is to assist with my monthly operating expenses (e.g. monthly loan payments and other expenses); especially, with being a single income individual. In addition, it is my intent to be the owner occupying the property as my principal residence and that I do have a greater than 50% interest in the property, as required in the City Code Ordinance 52.17 subd. 3 (I). In addition, there may be additional concerns (or issues), on your part of which the following will try to address three of these: I) The violation of the Ordinance No. 55.11. This Ordinance states, "no person shall operate rental property in the City of St. Joseph without fIrst having property made and filed a registration statement with the Compliance OffIcial, and without fIrst securing a valid rental license trom the City of 81. Joseph." With being a new resident to the City of S1. Joseph and living at the above, I . honestly didn't realize that I needed to perfonn these procedures. However, upon the receipt of the compliance order letter that stated this infonnation, I promptly presented my situation to the members of City Hall to detennine what needed to take place to comply. They were very helpful with assisting me in taking the necessary steps, which is why I'm requesting the above special use penni1. 2) There would be a violation of the special use pennit by having more than two non-related individual(s) and myself living at the above residence. At one point in time, there were three non-related individual(s) living with myself at the above residence, but this has been resolved and there are currently only two individual(s) leaving with myself. 3) In that it would not confonn to item c), ofthe Standards in Section 52.9 Subd. 4. Item c), states, "Will be designed, constructed, operated, and maintained so as to be hannonious and appropriated in appearance with the existing or intended character of the general vicinity and will not change the essential character of that area." At the above stated residence there is a house constructed that is hannonious in appearance with the general vicinity (e.g. rambler style house that is similarly constructed with other houses in the neighborhood). In addition, by following the requirements of special use pennit of having at a maximum two non-related person(s) and owner living at the residence; it would be similar to other neighbor(s) that have a couple of individuals living within their residence. However, if the issuance of the above special use pennit is denied, would it at least be possible for the individual(s) living with myself at this residence to stay until September 1,2001. With this request these individuals will have the time to organize their belongings and fmd other suitable living arrangements. Sincerely, U~¿) 7ftt~ Kelly D. McCann 134 6th Ave NW S1. Joseph, MN 56374 , ~ . STELLMACH VARIANCE AND SPECIAL USE REQUEST Resolution of Finding The request of Allan Stellmach for a special use permit and variance came before the Planning Commission at a public hearing held on August 6, 2001. The purpose of the hearing was to consider a Special Use Permit to allow the construction of two additional mini storage units and a variance granting relief from exterior finish requirements of Ordinance 52.22 Subd. 7 (c). The property is legally described as follows: Lot 003 Block 001 Neu Addition. Notice of this matter was duly served and published. In consideration of the information presented to the Planning Commission and its application to the Comprehensive Plan and Ordinances of the City of St. Joseph, the Planning Commission makes the following findings: The proposed use is consistent with the standards for a Special use Permit as stated in St. Joseph Code of Ordinances 52.8 subd 4 (a-k). St. Joseph Code of Ordinances 52.7 Subd. 2(a): That there are exceptional or extraordinary circumstances or conditions applying to the properly in question as to the intended use of the properly that do not apply generally to other properlies in the same zoning district. The exceptional or extraordinary circumstances must not be the result of actions taken by the petitioner. . Finding: The City initiated a change in zoning which resulted in additional requirements. The development of the property has taken over seven years. When the development was initiated the City approved the development plan and denying the request at this time could create a hardship for the property owner. Therefore, based on the above findings, the Planning Commission makes the following recommendation: Approve the Special Use Permit allowing the construction of two additional mini storage units and grant a variance providing relief from the exterior requirements. Approval is recommended with the foHowing contingency: The property owner will comply with the exterior requirements for the last building as it will be adjacent to the road. The motion was seconded by Utsch and passed unanimously. . - I J . ._- 1 \ ,\ 1 I ~ $ ~ I I i\ \\ \ \i ;\ 1 I \ I f: I f je /. ~ ò i t"', . ~ I \ ¡, 1 < :%_~ I I I , \ ~ ~ "i' ~ j' : I ;. ~ ì \ ,\', \'; C ' . , '0 1 'it . I' l ", . , ,: It:} ~: i - "';~ ~.; ,,~ I I ; ~ ~~ l<'I; <r1 " , \--". - .. (¡J W.N. a..s 0 ~ .~~ .r \"'-, \ "0 I ! ~ '1 ; q ~ I . è¡ I 1 ~, ~ ~, I [' 1 ò I t; A " ~ " .j I: - .. \ ~ \ ~.., ;--- - ·.e itg of St. Joseph ·.ege Avenue NW '.0. Box 668. NOTICE 3t. Joseph. MN 56374 Public Hearing :320) 363-720 I City of St Joseph =ax; 363-0342 :LERKI <\DM1NISTRATOR The Planning Commission for the City of St· Joseph shall conduct a public hearing on Monday, udy Weyrens August 6, 2001 at 7:45 p.m. in City Hall ofSt Joseph. The purpose of the hearing is to consider a variance and conditional use requests to allow:the construction of additional storage facility in the IfAYOR Highway 75 Business District and withoutmëeting.the exterior buildirÍg material reqUirements as ..3ST'J J;Hosch" stated in Section 52.22 B-2 Hiclnva.v75 Busiriess-District Subdivision 7(c)BuildingEXterÍars of theSt JosePh Code of Ofdinariëes. The requ~ are being submitted by Ridgewood Self ::OUNCILORS Storage~- ~ob Loso -. :ory Ehlert . Sèction 52.22. Subdivision 7 (c) states·that acceptable exterior building materials shall include ~yle Schneider brick, stone, tip-up concrete panel, decorative concrete block or glass; Wood siÇíng. plastic and other combustible material not listed as acCeptable shall not be used for building exteriors. Jan Rassier Architecturally.approved steel is acceptable provided that at least 50% of the building (excluding windows and doors) consist:ofbrick, stone, tip-up concret~ panel and/Oi" decorative conc¡ete block. Any building undergoing renovation, repair or an addition, so as to require the issuanCe of a building permit. shàll be brought into conformance with this subsection at the tinie of repairs, renoyatÌonor addition are completed. The property is legally described as: -- Lot Three (3), Block One (l} of the Neu Addition, St Joseph, Minnesota ,-- The request for Variance and Conditional Use have been submitted by Allan Stellmach, Ridgewood Self Storage, Sauk View Drive, SLCloud, MN 56303. Oral comments may be heard from the public and written comments can be subniitted prior to the heæing. .. Judy Weyrens Clerk! Administrator Publish: July 27,2001 . .. .. - -~ . . .' - _ "_-..___" ·...·.....a.._ -'_~_,¡':_--;_..:.:...;_....~·_~...,._"-~1"'-..)tw.;...~.-$t.~.:-.:~~;O'~4~4.:...r~.; !.".,;~......":I.4:"-.....-=--"-:~~~:.--'-.s'*-..~t:."~~~ --.- .- . . ~ ~ ...... I ...... ~ ...... t::DªW ...... ...... ...... ~... ...... :x: ...... ~ ...... ...... ...... ::3 ...... :i! ~ III Ï'1 - r - - r -- - 1ni .;¡ y lHt's -:-- -- - --~ -- 1 -- J ce "'" 0;; ... ~ ~ :x: ~ !'1 :z: t't -------- ~. i(:·;'~\ ':'~.;f"t~_ .. -:." . . " . CITY OF ST. JOSEPH 21 First Avenue Northwest PO Box 668 St. Joseph, ~ 56374 320-363-7201 '.' . DEVELOPl\1E~TREVIEW APPUCATION --.... // A lieant: -.--. .-. .. --.. Address: ddress: ?.-~ 7 t/ Conditional' Use - Permit Vacation of ROW/Easements / Variance . Non-conforming Use Permit Planned Unit Development Rezoning . Sign. -'''. It?o~ Subdivision - . "', TOTAL FEE: $ 71/(, Date fee received " 77/6 Date application received .. .- PETITIONER MUST PROVIDE. THE FOLLOWING ~. A list of all pråpertyowners-within 35Ç)feetof the boundaries of the property. ~: (This list must be obtàined from the Steams County Auditors Office) Seventeen full size: folded copies of the plans. . Payment"ofall associated fees must be mªde in full when application is. made. This application must be completed in full and be typewritten or clearly printed and must be accompanied by all information and plans required by applicable City Ordinance provisions. Before filing this application, you. should confer with the Planning Department to determine the specific ordinance and procedural requirements applicable to your application. . _. ... - . ~ .....,. . :_~"-:.: A determination of completeness ()f the application shall be made within tèn business days of the- . appliçation sùbmittaL .. A 'written notice of application deficiencies shall be rnailedto the applicant within ten business days of application. ï:lis is to certify that I am making application for the described action by the City and. that I am responsible with all City requirements with· regard to this request; This application should. be processed in my name and I am the-party whom the City should GQntact regarding any matter pertaining to this application. I have attached a copy of proof of ownership (either copy of Owner's Duplicate Certificate of Title, Abstract ofTrtJe or purchase agreement), or I amJ~e authorized person to make this application and the fee owner has also signed this application. - ._ .._'. _ . _ _.... ..... _ ~ :::~~-~-:. ..,. .. ~ . - -.. . /!2øø~ P~M~ ~¡?~<þ / Signature of Appli -nl/ --__.-. #;<'1··· £Ç~~2 ~~ffi ,/ at . . . Ignature of Fee' er. "'. . . .. ~ ...... - ~ .... . - . . /". . PROJECT NAME: LOCATION: //'t.VY 75" 4J,;<$/~...s ¿)/>r~/c'- LEGAL DESCRIPTION: ¿,,/ 3 / 6¿oc/¿: / ,. /YGC/ /kLd,.:4~ LOT SIZE: .-- PRESENT ZONING: ..v(1./~ 7S ,,(;3v5- å?J f,r;te REQUESTED ZONING:' PRESENT LAND USE DESIGNATION: .. REQUESTED-lANDUSE : .:n. . - .-.- .. - ....... DESIGNATION: SETBACK REQUEST: . REASONS FOR REQUEST: :;£Pee. (R~ 0Æ: h-~/r h ·~$;r~~.r 5~ Þ~/¿'/1-'1" /A...-- H?UY 75 ~~.sa~,e¡er A-rJD 7 . /JcYV~ ../-0 S'eC-r- cz- Z-z. >~. 7 Cc) AREA REQUIRED BY REQUESTED BY VARIANCE ~- ORDINANCE ORDINANCE REQÙESTEb ¡. Front Yard Side Yard Rear Yard Open Yard Parkinq Accessory BldgSize Lot Coverage . , FINDINGS OF FACT:_. ~e~ L L)SG- pe~-v7 ;.. V~"c' .-€ , SP:CIAL CONDITIONS: ,. ...", - .-. ...._-,,,. . ;:.-:'"'!,~'i.·~.,:;..:;-· -;.' -...:~. ::':.: " ·...;a . :: .,----- -!'--. .. . ,'-<'~'.-.:~-f' :~:.;:!- :t;· --- . . INDIAN HILLS FINAL PLAT APPROVAL Indian Hills Final Plat, OM BuildinÇJ: Dorian Davidson and John Meyer appeared before the Commission to request approval of the Final Plat for Indian Hills Park. Meyer stated they have agreed to provided the City with an easUwest egress through Lots 1 and 2, Block 1 provided the road connect with 4th Avenue NE. The property will be dedicated provided that the property owner does not have to pay any assessments. Further, the agreement to donate the right-of-way will expire after one year, unless the road is constructed. Weyrens reported that the City Engineer and Attorney are working on compiling the final documents for the final plat. . Schneider stated that he is opposed to rezoning a parcel of property without a development plan. Davidson responded that In~an Hills is being developed commercially and at this time there are no definite plans for development. However, platting the property allows the property to be developed as the need arises. 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' I . · ZoninQ Recommendations, July 16. 2001 Public HearinQ: Utsch stated the Planning Commission will be discussing the proposed zoning changes based on the testimony received at the July 16, 2001 public hearing. As the public hearing was closed, the Planning Commission will not accept additional testimony. Each area will be considered separately with the Commission making a recommendation for each proposed change. Area #1 - The property located at the NW intersection of County Road 133 and Highway 75. Proposed change: Industrial to Highway Business. Rassier stated it is his opinion the property will be developed commercially and should be zoned as such. Further, Highway Business Zoning is more restrictive than Industrial and includes exterior requirements. Highway Business is more restrictive than Industrial. Graeve stated that Industrial property allows for adult entertainment businesses, andthe property in question would not be a good site for a use such as that. Therefore, Graeve made a motion to recommend the City Council rezone the property located in the northwest intersection of County Road 133 and County Road 75 to Highway Business. The motion was seconded by Rassier and passed unanimously. Area #2 - The property located at 514 East Minnesota Street. Proposed change: R1 Single Family to R2 Mulitple Family. Deutz questioned if the property owner has been contacted regarding the proposed change. Weyrens stated that the property owner was mailed a notice and he did not respond at the public hearing. The property on both sides is surroÙnded by R2 Zoning. Graeve stated that at the public hearing residents - questioned why the surrounding property could not be rezoned to R1. Lesnick stated it is her opinion that the property should remain R1. - Rassier made a motion to recommend the Council rezone the property located at 514 East Minnesota Street R2; seconded by Kalinowski. Ayes: Rassier Nays: Kalinowski, Graeve, Schneider, Utsch, Lesnick, Deutz Motion fails 1 :6:0 Area #3 - Kennedy School. Proposed change: Public to Educational and Ecclesiastical (E & E) Utsch stated that the Planning Commission originally viewed all the educational and religious property and recommended the zoning be consistent, using E & E. However, upon reviewing the Ordinance regulating E & E he finds no provision for elementary schools. Kalinowski discussed the intent of E & E when is was adopted and stated it was to regulate the college/monastery property. The Commission agreed to research developing a Public land use ordinance. Kalinowski made a motion to recommend the Council leave the Kennedy School property zoned Public; seconded by Lesnick and passed unanimously. Area #4 - The property located adjacent to Highway 75 between College North and Third A venue NE. Proposed change: R1 to Highway Business. Utsch stated he has received calls from residents requesting the property to remain RI. Even though the property can continue to be used for single family, residents may have difficulty selling the property with this intended use. Currently a property sale has been jeopardized due to the rezoning. The mortgage company would not finance the home because the homë could not be rebuilt if destroyed more than 50%. Graeve stated it is his opinion that the property should remain Rl to avoid developing a second St. Cloud Division Street. Residential development provides a softer image when visitors are driving through St. ..",,-;' p---- Joseph. Further, he does not want to cause a hardship to any property owner who wishes to sell their . property . Weyrens stated that the Commission could review different types of transitional zoning and there may a way to convert the zoning without creating a hardship. Graeve made a motion to recommend the Council keep the zoning as Rl, Single Family for the property adjacent to Highway 75 between College Avenue North and Third Avenue I\'E. Ayes: Rassier, Graeve, Schneider Nays: Lesnick, Kalinowski, Utsch, Deutz Motion Failed 3:4:0 Deutz made a motion to table further discussion on the rezoning for the above mentioned property until additional information on transitional zoning is provided to the Planning Commission. The motion was seconded by Lesnick and passed unanimously. Area #5 - Resurrection Lutheran Church. Proposed change: Agricultural and E & E. Lesnick made a motion to leave Resurrection Lutheran Church zoned Agricultural until the City develops Public Zoning regulations. The motion was seconded by Deutz and passed unanimously. Area #6 - The area located between College Avenue South and 4th Avenue Sw. Proposed change: College Avenue South to Chapel Lane - R1 to E & E; Chapel Lane to 4th Avenue SW- R1 to R2. Rassier made a motion to recommend the Council zone the property between College Avenue - South and Chapel Lane as E & E; seconded by Graeve and passed unanimously. - Utsch stated that he has received comments regarding changing the zoning to R2 from Chapel Lane to 4th Avenue NW. Schneider stated that the proposed change looks better on paper and the Planning Commission should reconsider this area. Kalinowski stated that the Planning Commission should review the zoning regularly and this may be an area for future consideration. Rassier stated he feels the property should be rezoned to R2. Rassier made a motion to recommend the City Council zone the property between Chapel Lane and 4th Avenue NW to R2 Multiple Family. The motion was seconded by Deutz. Ayes: Kalinowski, Deutz, Utsch, Rassier Nays: Graeve, Schneider, Lesnick Motion Carried 4:3:0 Area #7 - Property north of Old Highway 52. Proposed Change: R2 to R3 Weyrens stated that a portion of the property is already zoned R3 and the change would only affect the rental units on the western edge. Therefore. Lesnick made a motion to recommend the Council leave the property as currently zoned, a mix of R2 and R3; seconded by Graeve. Ayes: Utsch, Kalinowski, Lesnick, Schneider, Graeve, Rassier Nays: None. Abstain: Deutz Motion Carried 6:0:1 Area #8 - Property located between Clinton Village and the Millstream Monestary house. Proposed Change: R1 to R3. Based on the testimony received at the public hearing on July 16, 2001, Lesnick made a motion to recommend the Council leave the above mentioned property zoned R1 Single Family. The motion was seconded by Deutz. Ayes: Utsch, Kalinowski, Lesnick, Schneider, Graeve, Deutz Nays: Rassier Motion Carried 6:1:0 ~ . - - - - 0 /" ,A .¡¿. I I I I þ 0 I - ~ - :1 þ '" ~,........... > ~ 0 G c-, 0 __I ~(:y ~ -l · [3!3 EJEJ§f!]000 ~ nqiP~~~ > : ~ i i ~ ¡ ! ~ ;:: 'tJ ". ¡ III¡ ;u ..... n :c , '" N ~ 0 0 :? Z . ..... z G) ST. JOSEPH PARK BOARD St. Joseph, Minnesota 56374 . Minutes of meeting held 23 July 2001 Meeting called to order by Lonnie Abbott at 7:08 pm. Members present: Lonnie Abbott, Kyle Schneider, Bruce Berghorst, Marge Lesnick, John Walz, Jennifer Wirz Approval of Agenda: Motion by Berghorst, seconded by Lesnick *Approved with correction: Chuck Muske will join us for the next meeting Approval of Minutes from 18 June 2001: (Lesnick, Abbott) *Approved with correction: under Chair report "...fence will continue south on property line to lot 10." Chair Report: The Millstream wiring project is done. Signs need to be made so we can re-open the park Discussion of Millstream signs: 1. Maximum stay 3 nights; for additional nights, register at City Hall, 25 College Avenue NW, 320-363-7201 2. Respect park patrons and property 3. Disorderly conduct prohibited - - 4. Donations appreciated 5. Quiet Time 10:30 pm - 7:00 am 6. Violators will be asked to leave 7. ENJOY YOUR STAY Motion to approve these policies and table discussion of charging for electricity use at the campsites (Abbott, Lesnick). Motion approved with one abstention. Motion to approve purchase of sign with the above policies for Millstream Campsite (Walz, Abbott). Motion approved. Old Business: light for the sledding hill will cost us $14/month in electricity and can be put up as planned. Work on the timer for lights will be overseen by Mike Sworski. The City Council approved the expense request for the benches, picnic tables, and trees. We discussed ordering an 8-foot bench for the skating rink (est. $450). New Business: The volleyball court will be set up soon in Northland. Motion to recommend to City Council the purchase of the "Fun Box" (estimated: $7000 + shipping) and an 8-foot bench (estimated $400 + shipping) for the skate park at the hockey rink from the Earle F. Anderson company. (Lesnick,. Walz). Motion approved. Liaison Report: The bridge on the south side of Millstream is out. We are uncertain of who will take responsibility for fixing it, but Marge will talk to Mike and . Judy about it. Fencing at the baseball field is loose and becoming problematic. The board will need to discuss this in more depth at the August meeting. Frisbee golf disc pads will be budgeted for next year. Kyle will approach the Lions about co-sponsoring this project. There are at least 2 options. The Park Board will hold a budget meeting on Monday, July 30, 2001 at 7 pm in City Hall. (Jennifer will not be able to attend.) Kyle has a contact who may have some "volunteers" available to do community service projects for the board. We will consider contacting them for future projects. Berghorst made the motion to adjourn (seconded by Lesnick) at 9:26 pm. Note: Next meeting: 20 August 2001 at 7:00 pm at City Hall Submitted by: Jennifer Win - - ST. JOSEPH POLICE DEPARTMENT p.o. Box 268 . St. Joseph, Minnesota 56374-0268 (320) 363-8250 EDUCATIONAl CENTER OF CENTRAl MINNE$OTA g.·mail: stjosephpd@cji.net July 2001 Police Activity Report Criminal Calls for Service Animal Ordinance 1 911 Hang·up 2 Assault 2nd degree 1 Animal Bites 1 Assault 5th degree 5 Animals Lost 1 ATV Ordinance 2 Assist Other Agencies 21 Burglary 4th degree 3 Background Checks 2 Criminal Damage 1st degree 1 Check the Area 2 Criminal Damage 4th degree 12 Civil Matters 2 Criminal Trespass 2 Disturbance - No Crimes 1 Curfew 2 Driving Complaints 8 Drugs - Possession Cocaine 1 False Alarms 5 Drugs - Possession Lab 1 Family Disputes - No Crimes 5 Drugs - Possession Marijuana 1 Fingerprinting 1 Drugs - Possession Paraphernalia 3 Fire Alarms 2 Harassment 2 Fire Assists 1 Illegal Fireworks 4 Funeral Escorts 2 ~ Noise - Barking Dogs 4 Gas Leaks 1 - Noise - Construction 2 Gun Permit Applications 2 Noise - Equipment 1 Juvenile Problems 8 Noise - Music 8 Man with gun 1 Noise - People 2 Medical Assists 7 Obstructing Legal Process 1 Mental Holds 1 Public Defecation . 1 Motorist Assist - Locked Out 10 Runaway 1 Motorist Assist - Problems 1 Sale of Tobacco to Minors 2 Neighbor Disputes 4 Terroristic Threats 1 Open Door 3 Theft 6 Paper Service 3 Theft Attempted 1 Property - Found 7 Underage Consumption 16 Property - Lost 2 Water Ban Violation 17 Prowler 2 TOTAL 104 Public Assists 16 Signs Down 2 Value of Property Stolen $ 981.35 Street Lights Out 5 Value of Property Damaged $3,000.00 Suspicious Person/V ehicle 9 Traffic Hazard 4 Vacation House Checks 2 Welfare Checks 3 TOTAL 149 Criminal Charges Traffic Citations . Assault 2nd degree 1 Driving After Revocation 3 Assault 5th degree 1 Driving After Suspension 2 Criminal Damage 4th degree 1 DWI 1st degree 1 Curfew Violation 2 DWI 2nd degree 1 Drugs - Possession Marijuana 1 DWI 3rd degree 2 Drugs - Possession Paraphernalia 2 Expired Vehicle Registration 4 Mental Evaluation 1 Fail to Change Address on DIL 1 Noise - Music 1 Fail to Signal Turn 3 Noise - Party 2 Fail to Wear Seat Belt 15 Runaway Juvenile 1 Fail to Yield Right of Way 1 Theft 1 Fleeing a Police Officer 1 Underage Consumption 16 No Insurance 2 Warrants 2 No Proof of Insurance 6 TOTAL 32 Parking - Fire Hydrant 1 Parking - Prohibited Area 23 Traffic Crashes Parking - Summons Mailed 1 Revoked License Plates 2 Inj ury 2 Semaphore (Stop Light) 6 Non-Injury 3 Speed 52 Non-Injury Hit and Run 1 Stop Sign 7 TOTAL 6 Unreasonable Acceleration 2 ~ Window Tint 2 - Crash Locations TOTAL 138 College Ave SÆast Apartments 1 Crash Causes College Ave N/Date St 1 Ridgewood Rd/Co. Rd. 75 1 Fail to Yield Right of Way 2 Alley Bircb/75 and 1st Ave NE 1 Unsafe Backing 1 Alley behind City Hall 1 Improper Turn 1 Parking Lot 120 2nd Ave NW 1 Follow Too Close 1 Unknown (Hit and Run) 1 12 vehicles and 1 pole involved. Average DWI Breath Alcohol Content .156% BrAC. Average Underage Breath Alcohol Content .112% BrAC. Average window tint 7.55% light transmittal Average Speed over posted limit 18.03 miles per hour over Saint John's University Simons Hall . Collegeville, Minnesota 56321 The William E. & Virginia Clemens Chair Phone: 320/363-3048 Fax: 320/363-3298 in Economics and the Liberal Arts E-mail: dfinn@csbsju.edu August 2, 2001 Judy Weyrens, City Administrator Post. Office Box 669 St. Joseph, MN 56374 Dear Judy: I write concerning the Drafting Committee's work since the time it received the very helpful written report ftom the City of St. Joseph. . As you may know, the Drafting Committee has been meeting with representatives of the Central Minnesota Builders Association and is making progress on sorting through a number of their concerns. At the same time we have been reacting to the suggestions - made by the City of St. Joseph and others and have, for example, simplified the administrative structure of the ordinance. - I would like, however, to clarify an issue that came up during the joint meeting of the city council and the planning commission in St. Joseph that I attended several weeks ago. I heard then the sentiment that St. Joseph might not need this kind of an ordinance because it is already producing a considerable amouIìt of affordable housing. I know, in particular, that Ted Schmid's plans for affordable units are part of that analysis. I would ask, however, whether this is the right way to think about a 5-city agreement. Why would a city ever enter into an agreement with neighboring cities? The point of entering an agreement is not to constrain oneself to do something, because obviously any one city could (by its own voluntary decision) do what the agreement requires. The main purpose of a multi-city agreement is to ensure that the other cities do their part. This I think is truly in the long-term best interest of the citizens of St. Joseph. In this regard it is helpful to recall the differences among the cities, for example the difference between St. Joseph and its neighbor to the northeast, Sartell. Taking Sartell as an example, it is widely known that the median income in Sartell ($47,788 in 2000) is above that of the other four cities (in St. Joseph, $42,207). Projections call for the gap in median income between the two cities to grow to about. $8,000 by 2005. ~L T -."' "-'-.,,--;.- -,-' At the same time, we know that housing pat.terns tend to replicate what has already been . happening in the past. That is, we could expect that if the cities don't achieve any kind of agreement to alter patterns, Sartell will continue to attract somewhat wealthier families and St. Joseph somewhat less wealthy. Of course, one possible response of St. Joseph (though not the one the city is proposing,) would be to make it hard for builders to construct affordable housing in the hopes that by admitting only more expensive new developments, St. Joseph would increase the median income of its citizens. The problem with this strategy, of course, is that every city is tempted to do this based on property tax advantages alone. St. Joseph needs to ask whether it is likely to be better off or worse off if the other cities agree to build affordable. The point of the 5-city agreement is that all cities would be committed to constructing affordable housing. As you know, for the past several years Sartell has averaged sev~n to ten times more new homes per year than St. Joseph has. Thus, any agreement based on a percentage of construction that S1. Joseph enters into with Sartell and the other cities will ensure that Sartell will build seven to ten times as much affordable housing as S1. Joseph is required to do. There is no way for St. Joseph to arrange for this to happen except to be part of the 5-city agreement. This, I think, is the central reason for St. Joseph to stay with and ultimately approve a 5- city ordinance: It is in the interest of St. Joseph and the other cities to agree to an ordinance requiring all the cities to build affordable. - Once again, I thank you for your careful attention to the question of affordable housing, - and your commitment to constructing it for the citizens of St. Joseph. I look forward to working together in the coming months. Sincerely, .~~ Dan Finn .~ . Pursuant to due call and notice thereof, the Planning Commission for the City of St. Joseph met in regular session on Monday, August 6, 2001 at 7:00 PM in the St. Joseph City Hall. Members Present: Chair Gary Utsch. Commissioners Marge Lesnick, Kurt Schneider, Michael Duetz, S. Kathleen Kalinowski, Jim Graeve. Council Liaison AI Rassier. Administrator/Clerk Judy Weyrens. Others Present: Fire Chief Dave Theisen, Clarence Fischer, Jean Dehler, Steve Dehler, Goeff Partridge, Randy Torborg, Bill Elfering, Bill Lowell, Mark Winter, Keith Gruber, Doris Johnson, Dorothy Court, Kay Lemke, Tim Borresch, Tillie Wasner, Ellen Wahlstrom, Loren Loso, Doug Inselman, Donald Schneider, Gladys Schneider, Elmer Rakotz. Approve Aqenda: Kalinowski made a motion to approve the agenda as presented; seconded by Lesnick and passed unanimously. Jean Dehler, Special Use Request, Rental in a General Business District: Utsch opened the public hearing at 7:00 PM and stated the purpose of the hearing is to consider a special use permit to allow a rental unit in a General Business District. The property is located at 31 West Minnesota Street, legally described as Lot 007, Block 009 Townsite of St. Joseph; Lot 8 Less E 2' and the E'ly 6' of Lot 007 Block 009 Townsite of St. Joseph. The request has been submitted by Jean Dehler. St. Joseph Code of Ordinances 52.21 Subd. 3 (f) provides for the following under special uses: Mixed use of a permitted use and a multiple residential dwelling units; but only if at least 50% of the interior square footage (exclusive of the basement or cellar) is used full time for a permitted use. The area consisting if multiple residential dwelling units must meet the standards of Section 52.19, Subd. 5 and 6. Parking requirements shall be separately determinéd for the commercial and residential uses in accordance with Section 52.14, Subd. 4. . Jean Dehler spoke on her own behalf. She stated that she is requesting to secure a rental license for one unit on the second and third floor. The proposed plan includes the bedrooms being on the third floor with kitchen and bathroom on the second floor. Dehler stated that there is currently a fire wall that separates the units. Lesnick questioned if the parking area will be marked and if the required fire lane is designated and marked. Dehler stated the submitted parking plan illustrates that sufficient parking is available. As for the fire lane, the sign has been vandalized. Fire Chief Dave Theisen presented the Commission with a letter from the Fire Marshall dated 1994. The letter indicates that if a portion of the second and third level of the building will be used for rental, fire codes must be satisfied. The major code that needs to be completed is the installation of a sprinkler system. Theisen is requesting that if the Special Use is granted, the Fire Marshall be contacted to inspect the building and the property owners would be required to adhere to the fire codes. Rassier stated that when the city reviewed the Rental Ordinances, language was included to adopt the State Fire Code. Tl1erefore, any code violations discovered by the Fire Marshall would need to be corrected. There being no further testimony the public hearing was closed at 7:15 PM. Deutz questioned if a special use permit is issued, would Dehler be required to pave the parking lot. Weyrens stated that the Ordinance only requires the lot to be paved if a building permit is needed to complete remodeling. Installing a sprinkler system would not qualify as remodeling, therefore the parking lot would not be required to be paved. Rassier made a motion to recommend the adoption the following Resolution of Finding, granting a - Special Use Permit to Jean Dehler, 31 West Minnesota Street. " Resolution of finding . The request of Jean Dehler for a special use permit came before the Planning Commission at a public hearing held on August 6, 2001. The purpose of the hearing was to consider a Special Use Permit to allow a rental unit in a General Business District. The property is legally described as follows: Lot 007 Block 009 Townsite of St. Joseph; Lot 8 Less E 2' and the E'ly 6' of Lot 007 Block 009 Townsite of St. Joseph. The request for Special Use has been submitted by Jean Dehler, 31 West Minnesota Street, St. Joseph MN 56374. Notice of this matter was duly served and published. In consideration of the information presented to the Planning Commission and its' application to the Comprehensive Plan and Ordinances of the City of St. Joseph, the Planning Commission makes the following findings: The proposed use is consistent with the standards for a Special use Permit as stated in St. Joseph Code of Ordinances 52.8 subd 4 (a-k). Therefore, based on the above findings, the Planning Commission makes the following recommendation: Approve the Special Use Request with the following contingencies: 1. The Rental License shall be contingent upon the property being inspected by the Fire Marshall (Fire Chief), Building Official and Rental Housing Inspection. 2. All Fire and Safety Codes found to be deficient will be corrected before a rental license is issued . and the property occupied. 3. The property owner will immediately designate and mark the required fire lane as agreed to in 1994. The motion was seconded by Utsch and passed unanimously. Kellv McCann, Special Use Request, Owner Occupied Rental Unit in an R1 Zoninq District: Utsch opened the hearing at 7:23 and stated the purpose of the hearing is to consider a special use permit to allow an owner occupied rental unit in an R1 Single Family Zoning District. The property is located at 134 - 6th Avenue NW and is legally described as follows: Lot 9 Block 3 Clinton Village. The request for Special Use has been submitted by Kelly McCann. St. Joseph Code of Ordinances 52.17 Subd 3 (I) allows a special use permit as follows: Residential rental if owner occupied. For purposes of establishing if the property is owner occupied, the owner must be a natural person and the owner occupying the property as his or her principal residence and must have a fifty percent or greater interest in the property. Kelly McCann spoke on his own behalf. He stated that he was unaware of the rental regulations in St. Joseph and upon receiving notification from the City followed the process as outlined in the above mentioned Ordinance. McCann stated that he does own and reside at the property in question and rents living quarters to three (3) other persons. McCann further stated that he has been renting since November of 2000. Utsch clarified that if a special use permit is allowed, only two tenants in addition to Mr. McCann would be permitted. Goeft Partridge of 601 West Ash Street requested the Planning Commission deny the request of McCann. He stated that the neighborhood in Clinton Village only has one rental property and that is located at the entrance to the housing development. When that rental unit was constructed the residents were told by the builder that he was building the home for his children to live in while attending college. Since the rental unit has been constructed the neighborhood has been plagued with problems including excess cars parked on the front lawn, parties and the lack of lawn maintenance If this rental unit isan . . example of what the neighborhood can expect, then the Planning Commission and Council should deny the request. Partridge stated that it is his opinion that the Council has a responsibility to protect the character of the neighborhood. If the special use permit is granted it is his fear that a precedence will be established and rental units will dilute the neighborhood. Therefore, Partridge encouraged the Commission to deny the request. Bill Elfering of 329 Cypress Drive requested the Planning Commission deny the request permitting a rental unit in Clinton Village. Elfering stated it is his opinion that too many homes are being converted to rental units and the Council and Planning Commission need to protect the single family homes. Keith Gruber of 114 - th Avenue NW requested that the Planning Commission deny the request of McCann. Gruber stated that he too has concerns that if another rental property is allowed in Clinton Village it will become as unsightly as the rental property located at the entrance to the development. It is his opinion that the City does not have control over the number of students living in a rental unit as the number of cars consistently parked in front of the rental unit at the entrance would indicate in excess of 7 tenants. Weyrens clarified that proving residency is extremely difficult. Even if the Housing Inspector could conduct random inspections, there is no way to prove by counting cars or beds how many tenants occupy the rental unit. Schneider stated the City investigated eliminating the grandfather provision allowing 5 unrelated persons to occupy a rental unit, but found it would be illegal to do so. Steve Frank of 606 Birch Street West stated he was asked to speak to the Planning Commission on behalf of some residents in Clinton Village. He stated that while he has not noticed any problems with the property owned by McCann, he is concerned with a precedence that will be established by granting the first Special Use Permit for an owner occupied rental unit. The Ordinance was just adopted in 2000 and Frank questions how many requests will be submitted to the Planning Commission if the McCann request is approved. . Clarence Fischer of 126 - 6th Avenue NW requested the Planning Commission deny the request of McCann and questioned the amount of bus traffic to and from the group home also located in Clinton Village. Weyrens stated the buses provide transportation for the residents of the group home and operation of such is a permitted use in an R1 Single Family Zoning District. Utsch closed the public hearing at 7:46 pm. Kalinowski stated it is her opinion that the request before the Commission is within the guidelines of the Ordinance. However, at the present time the property owner has one too many tenants and would need ~- to resolve that matter. Schneider stated that before a special use permit can be issued, the Planning Commission must find the request to be within the standards outlined in the Ordinance. Schneider stated it is his opinion that the following Special Use Standards as stated in the St. Joseph Code of Ordinances 52.9 Subd 4 are compromised: a. Will not be detrimental to or endangerthe public health, safety, morals, comfort, convenience or general welfare of the neighborhood. d. Will not be hazardous or disturbing to existing or future neighboring uses i. Will have adequate facilities to provide sufficient off-street parking and loading space to serve the proposed use. Kalinowski questioned Schneider as to what he considers endangerment. Further, she stated that the property owner does have sufficient off-street parking as he can park a maximum of three cars on his property. Schneider responded that currently the cars are parked on the street. As such, residents and children must navigate around the cars creating a potential safety hazard. Utsch stated that in his opinion allowing an owner occupied rental in Clinton Village would change the character of the neighborhood, which is contradictory to the standards for granting a variance. Utsch . expressed concern that the property owner is currently in violation of the Ordinance, exceeding the . maximum number of tenants allowed. Based on the testimony presented to the Planning Commission, Kalinowski made a motion to recommend the City Council adopt the following resolution, denying the Special Use Permit request of Kelly McCann. Resolution of finding The request of Kelly McCann for a special use permit came before the Planning Commission at a public hearing held on August 6, 2001. The purpose of the hearing was to consider a special use permit to allow an owner occupied rental unit in a R1, Single Family Zoning District. The property is legally described as follows: Lot 009 Block 003 Clinton Village. The request for Special Use has been submitted by Kelly McCann, 134 - 6th Avenue NW, St. Joseph MN 56374. Notice of this matter was duly served and published. In consideration of the information presented to the Planning Commission and its application to the Comprehensive Plan and Ordinances of the City of St. Joseph, the Planning Commission makes the following findings: The proposed use is not consistent with the standards for a Special use Permit as stated in St. Joseph Code of Ordinances 52.8 subd 4 (a-k). The following standards have not been satisfied: St. Joseph Code of Ordinances 52.9 Subd. 4(a): Will not be detrimental to or endanger the public . health, safety, morals, comfort, convenience or general welfare of the neighborhood or the City. Finding: Parking tenant vehicles on the street may cause a safety issue for residents, including children as they may be required to navigate around the vehicles. St. Joseph Code of Ordinances 52.9 Subd. 4(c): Will be designed, constructed, operated and maintained so as to be harmonious and appropriate in appearance with the existing or intended character of the genera/vicinity and will not change the essential character of that area. Finding: The proposed special use will be non conforming to the majority of the neighborhood changing the character of the neighborhood. Sf. Joseph Code of Ordinances 52.9 Subd. 4(d): Will not be hazardous or disturbing to existing or future neighboring uses. Finding: At the present time there are no rental licenses issued in Clinton Village and the infusion of rental units may change the use of the existing homes and discourage families from moving into the neighborhoods in the future. Therefore, based on the above findings, the Planning Commission makes the following recommendation: Deny the Special Use Request of Kelly McCann to operate a owner occupied rental unit in an R1 Zoning District. The motion was seconded by Deutz and passed unanimously. AI Stellmach, Special Use Request - Mini StoraQe Units in HB ZoninQ District and Variance on Exterior Requirements: Utsch called the public hearing to order at 8:06 pm and stated the purpose of the hearing is to consider a variance and special use permit to allow the construction of an additional storage facility in a Highway Business Zoning District; and a variance to relieve the property owner of the exterior building material requirements. The property is located on Ridgwood Road and is legally described as Lot 003 Block 001 Neu Addition. The request has been submitted by Allan Stellmach, Ridgewood Self Storage. . . St. Joseph Code of Ordinances 52.22 Subd. 7 (c) states that acceptable exterior building materials shall include brick, stone, tip-up concrete panel, decorative concrete block or glass. Wood siding, plastic and other combustible material not listed as acceptable shall not be used for building exteriors. Architecturally approved steel is acceptable provided that at least 50% of the building (excluding windows and doors) consist of brick, stone, tip-up concrete panel and/or decorative concrete block. Any building undergoing . renovation, repair or an addition, so as to require the issuance of a building permit shall be brought into conformance with this subsection at the time repairs, renovation or additions are completed. Allan Stellmach spoke on his own behalf. Stellmach stated that he started this project seven (7) years ago. When the project began the property was zoned light indistrial and all uses were considered by special use permit. At that time he presented a plan that included five (5) buildings. The first phase consisted of one building, and as time progressed additional buildings were constructed. Since the original buildings \.Vere constructed, the zoning classification for the property has been modified to Highway Business. As such, the Planning Commission would need to issue a special use permit. Further, the Ordinance regulating Highway Business includes a provision for exterior finish requirements. Stellmach stated that he is seeking relief from the exterior requirements as his project has been in progress for the past seven (7) years, prior to the enactment of the new zoning district. Utsch closed the public hearing at 8:10 pm. Commission member concurred with Stellmach that his project has been in progress and the change in zoning district has caused the need for the variance. Further, the unique shape of the property in question limits the type of development. Utsch clarified that when the last building is constructed, (facing Ridgewood·Road), the exterior requirements would not be waived. .- Deutz made a motion to recommend the Council adopt the following findings and approve the -- Special Use and Variance request of Allan Stellmach to construct two mini storage units. Resolution of Finding The request of Allan Stellmach for a special use permit and variance came before the Planning COmmission at a public hearing held on August 6,2001. The purpose of the hearing was to consider a Special Use Permit to allow the construction of two additional mini storage units and a variance granting relief from exterior finish requirements of Ordinance 52.22 Subd. 7 (c). The property is legally described as follows: Lot 003 Block 001 Neu Addition. Notice of this matter was duly served and published. In consideration of the information presented to the Planning Commission and its application to the Comprehensive Plan and Ordinances of the City of S1. Joseph, the Planning Còmmission makes the following findings: The proposed use is consistent with the standards for a Special use Permit as stated in Sf. Joseph Code of Ordinances 52.8 subd 4 (a-k). St. Joseph Code of Ordinances 52.7 Subd. 2(a): That there are exceptional or extraordinary circumstances or conditions applying to the properly in question as to the intended use of the properly that do not apply generally to other properlies in the same zoning district. The exceptional or extraordinary circumstances must not be the result of é!ctions taken by the petitioner. Finding: The City initiated a change in zoning which resulted in additional requirements. The development of the property has taken over seven years. When the development was initiated the City approved the development plan and denying the request at this time could create a hardship for the property owner. Therefore, based on the above findings, the Planning Commission makes the following recommençt~tl9n,: , Approve the Special Use Permit allowing the construction of two additional mini storage units and . grant a variance providing relief from the exterior requirements. Approval is recommended with the following contingency: The property owner will comply with the exterior requirements for the last building as it will be adjacent to the road. The motion was seconded by Utsch and passed unanimously. Indian Hills Final Plat. OM BuildinQ: Dorian Davidson and John Meyer appeared before the Commission to request approval of the Final Plat for Indian Hills Park. Meyer stated they have agreed to provided the City with an east/west egress through Lots 1 and 2, Block 1 provided the road connect with 4th Avenue NE. The property will be dedicated provided that the property owner does not have to pay any assessments. Further, the agreement to donate the right-of-way will expire after one year, unless the road is constructed. Weyrens reported that the City Engineer and Attorney are working on compiling the final documents for the final plat. Schneider stated that he is opposed to rezoning a parcel of property without a development plan. Davidson responded that Indian Hills is being developed commercially and at this time there are no definite plans for development. However, platting the property allows the property to be developed as the need arises. Deutz made a motion to recommend the City Council approve the final plat for Indian Hills Park contingent upon the execution of a Developers Agreement and approval from the City Engineer and City Attorney. The motion was seconded by Schneider and passed unanimously. - Tim Borresch, Accessory BuildinQ Request, 12 - 3rd Avenue NW: Tim Borresch appeared before the -- Commission to request authorization to secure a building permit to construct a garage 24' x 84' on the property located at 12 - 3rd Avenue NW. The property in question is zoned R3 and the request is being made to allow for the construction of storage space for tenants at 11 & 12 - 3rd Avenue NW. Utsch questioned Borresch if he discussed the building plans with the neighbors, to which he responded no. Utsch stated the Ordinance requires that an accessory building in an R3 area compliment the principal structure. The property contains a single family home with a single car garage and is licensed for three tenants. Therefore, the property located at 12 - 3rd Avenue NW only requires a three stall garage. Borresch stated that he is requesting the larger accessory building to keep both his properties orderly. Commission members concurred that the proposed building would not fit in the neighborhood. Therefore, Rassier made a motion authorizing Borresch to make application for a building permit to construct an accessory building not to exceed 24' x 48'. The motion was seconded by Graeve and passed unanimously. Tom Borrresch, Accessory BuildinQ. 9 - 1 yth Avenue SE: Rassier made a motion to table discussion on the request to construct an accesory building at 9 -1 ¡th Avenue SE as the property owner failed to appear before the Planning Commission. The motion was seconded by Kalinowski and passed unanimously. ZoninQ Recommendations. July 16, 2001 Public HearinQ: Utsch stated the Planning Commission will be discussing the proposed zoning changes based on the testimony received at the July 16, 2001 public hearing. As the public hearing was closed, the Planning Commission will not accept additional testimony. Each area will be considered separately with the Commission making a recommendation for each proposed change. . Area #1- The property located at the NW intersection of County Road 133 and Highway 75. Proposed change: Industrial to Highway Business. Rassier stated it is his opinion the property will be developed commercially and should be zoned as such. Further, Highway Business Zoning is more restrictive than Industrial and includes exterior requirements. . Highway Business is more restrictive than Industrial. Graeve stated that Industrial property allows for adult entertainment businesses, and the property in question would not be a good site for a use such as that. Therefore, Graeve made a motion to recommend the City Council rezone the property located in the northwest intersection of County Road 133 and County Road 75 to Highway Business. The motion was seconded by Rassier and passed unanimously. . Area #2 -The property located at 514 EastMinnesota Street. Proposed change: R1 Single Family to R2 MuJitple Family. Deutz questioned if the property owner has been contacted regarding the proposed change. Weyrens stated that the property owner was mailed a notice and he did not respond at the public hearing. The property on both sides is surrounded by R2 Zoning. Graeve stated that at the public hearing residents questioned why the surrounding property could not be rezoned to R1. Lesnick stated it is her opinion that the property should remain R1. Rassier made a motion to recommend the Council rezone the property located at 514 East Minnesota Street R2; seconded by Kalinowski. Ayes: Rassier Nays: Kalinowski, Graeve, Schneider, Utsch, Lesnick, Deutz Motion fails 1 :6:0 - - Area #3 - Kennedy School. Proposed change: Public to Educational and Ecclesiastical (E & E) Utsch stated that the Planning Commission originally viewed all the educational and religious property and recommended the zoning be consistent, using E & E. However, upon reviewing the Ordinance regulating E & E he finds no provision for elementary schools. Kalinowski discussed the intent of E & E when is was adopted and stated it was to regulate the college/monastery property. The Commission agreed to research developing a Public land use ordinance. Kalinowski made a motion to recommend the Council leave the Kennedy School property zoned Public; seconded by Lesnick and passed unanimously. Area #4 - The property located adjacent to Highway 75 between College North and Third Avenue NE. Proposed change: R1 to Highway Business. Utsch stated he has received calls from residents requesting the property to remain Rl. Even though the property can continue to be used for single family, residents may have difficulty selling the property with this intended use. Currently a property sale has been jeopardized due to the rezoning. The mortgage company would not finance the home because the home could not be rebuilt if destroyed more than 50%. Graeve stated it is his opinion that the property should remain Rl to avoid developing a second St. Cloud Division Street. Residential development provides a softer image when visitors are driving through St. Joseph. Further, he does not want to cause a hardship to any property owner who wishes to sell their property . Weyrens stated that the Commission could review different types of transitional zoning and there may a way to convert the zoning without creating a hardship. Graeve made a motion to recommend the Council keep the zoning as Rl, Single Family for the . property adjacent to Highway 75 between College Avenue North and Third Avenue ~~. Ayes: Rassier, Graeve, Schneider Nays: Lesnick, Kalinowski, Utsch, Deutz Motion Failed 3:4:0 Deutz made a motion to table further discussion on the rezoning for the above mentioned property until additional information on transitional zoning is provided to the Planning Commission. The motion was seconded by Lesnick and passed unanimously. Area #5 - Resurrection Lutheran Church. Proposed change: Agricultural and E & E. Lesnick made a motion to leave Resurrection Lutheran Church zoned Agricultural until the City develops Public Zoning regulations. The motion was seconded by Deutz and passed unanimously. th Area #6 - The area located between Col/ege A venue South and 4 A venue Sw. Proposed change: Col/ege Avenue South to Chapel Lane - R1 to E & E; Chapel Lane to 4th Avenue SW- R1 to R2. Rassier made a motion to recommend the Council zone the property between College Avenue South and Chapel Lane as E & E; seconded by Graeve and passed unanimously. Utsch stated that he has received comments regarding changing the zoning to R2 from Chapel Lane to 4th Avenue NW. Schneider stated that the proposed change looks better on paper and the Planning Commission should reconsider this area. Kalinowski stated that the Planning Commission should review the zoning regularly and this may be an area for future consideration. Rassier stated he feels the - property should be rezoned to R2. - Rassier made a motion to recommend the City Council zone the property between Chapel Lane and 4th Avenue NW to R2 Multiple Family. The motion was seconded by Deutz. Ayes: Kalinowski, Deutz, Utsch, Rassier Nays: Graeve, Schneider, Lesnick Motion Carried 4:3:0 Area #7 - Property north of Old Highway 52. Proposed Change: R2 to R3 Weyrens stated that a portion of the property is already zoned R3 and the change would only affect the rental units on the western edge. Therefore, Lesnick made a motion to recommend the Council leave the property as currently zoned, a mix of R2 and R3; seconded by Graeve. Ayes: Utsch, Kalinowski, Lesnick, Schneider, Graeve, Rassier Nays: None. Abstain: Deutz Motion Carried 6:0:1 Area #8 - Property located between Clinton Village and the Millstream Monestary house. Proposed Change: R1 to R3. Based on the testimony received at the public hearing on July 16, 2001, Lesnick made a motion to recommend the Council leave the above mentioned property zoned R1 Single Family. The motion was seconded by Deutz. Ayes: Utsch, Kalinowski, Lesnick, Schneider, Graeve, Deutz Nays: Rassier Motion Carried 6:1:0 Minutes: Kalinowski made a motion to table approval of the minutes until the next meeting; seconded by Lesnick and passed unanimously. Other Matters: Utsch stated that the Planning Commission should consider meeting twice a month until the current projects are completed. Weyrens reported that a joint meeting between the City Council, . . Planning Commission and Park Board has been scheduled for August 13, 2001 at 7:00 PM. The purpose of the meeting is to review the proposed subdivision south of Kennedy School. Adjourn: Lesnick made a motion to adjourn at 10:05 PM; seconded by Deutz and passed uanimously. Judy Weyrens Administrator Clerk . a research memo for city officials , ,-f-'" 140a.3 . August 1996 ,) Official ConDict of Interest ~ . Revised by: '. Theresia Perry, Research Specialist League of Minnesota Cities ~ ) . League of Minnesota Cities ../ ~ ~ · " The League of Minnesota Cities provides this publication as a general informational memo. It is not intended to provide legal advice ~\ and should not be used as a substitute for competent legal guidance. Readers should consult with an attorney for advice concerning specific situations. © 1997 League of Minnesota Cities Research Foundation - All rights reserved -- Printed in the United States of America LMC Lea:JIW 0/ }.finneGola Ci/ieG Cities promoting =Uenæ League of Minnesota Cities 145 University Avenue West St. Paul, MN 55103-2044 (612) 281~1200 (800) 925~1122 Fax (612) 281-1299 . . . Table of Contents - Conflict of Interest Highlights i I. Introduction 1 II. Prohibited gifts, economic disclosure and political activities 1 A. Prohibited gifts . 1 B. Conflict of interest and economic disclosure in metropolitan cities with populations over 50,000 3 C. Statements of economic interest for trustees of public pension plans 5 D. Lobbyist regulations 6 E. Leave during political candidacy 6 III. Conflict of Ìnterest in contracts 7 A. All cities 7 B. Statutory cities 13 . C. Home rule charter cities 14 n. Specific kinds of contracts 14 E. Contracts made in violation of the statutes 18 ~-_.. IV. Conflict of interest in non-contract situations 20 A. In general 20 B. Disqualifying interest factors 21 C. Specific situations 21 D. Effect of disqualifying interest on action 28 E. Conflict of interest checklist 28 V. Incompatibility of offices 28 A. . In general 28 B. Elements ôf incompatible offices . . 29 C. Violation of the incompatibility law 30 D. Office~ that have been found incompatible 30 VI. Model forms 32 Form 1 - Model resolution to contract with a councilmember 32 Form 2 - Model resolution ratifying contract in emergency 33 Form 3 - Model affidavit of official interest in claim 34 - . I. Introduction - State law sets many s!andards for public officers. Some of the most important and most often misunderstood are the laws addressing conflicts of interest and ethical behavior. There are several different laws public officials should be aware of. Generally, these laws do the following: · Prohibit giving gifts to public officials; · Require disclosure of conflicts of interest and economic reporting; . · Require certain reporting by lobbyists; · Prohibit conflicts of interest; · Prohibit officials from holding incompatible offices. As broad as these laws are, situations can arise that may not be clearly covered by them. While this document discusses the general principles behind these various laws, it is important to remember that the appearance. of improRriety or of conflict of interest can also be damaging to a councilmember's image and to the city's reputation, even if the act is not specifically prohibited by law. , II. Prohibited gifts, economic disclosure and political activities A. Prohibited gifts 1. All Minnesota cities, in general Minn. Stat. § Elected and appointed city officials may not receive a gift from any 471.895 "interested person." An "interested person" is a person, or representative of a person or an association, who has a direct financial interest in a decision that a local official is authorized to make. This law applies to all cities in Minnesota. The law clearly applies to councilmembers. However, since there is no definitìonofthè terrti"appointed official," it is not known if the law covers all city employees, or just certain high level employees such as city managers or administrators. Until further clarification of the law, the safest course of action is to assume that the law applies to all employees, no matter what their duties are. - -, Official Conflict of Interest 1 j . 2. Exceptions for all Minnesota cities Minn. Stat § The following types of gifts are permitted under exceptions to the law: 471.895, subd. 3 · Lawful campaign contributions; · Services to assist an official in the performance of official duties; These types of services include such things as providing advice, consultation, information, and communication in connection with legislation and services to constituents; · Services of insignificant monetary value; · A plaque or similar item; These items are permitted if given to recognize individual services in . a field of specialty or a charitable cause; · A trinket or item of insignificant monetary value; · Informational material of unexceptional value; · Food or beverage given at a reception, meal, or meeting by an organization before whom the recipient makes a speech or . answers questions as part of a program; This exception is only available if the location of the reception, meal, or meeting is away from the recipient's place of work; .. Gifts given because of the recipient's membership in a group; However, the majority of the members of the group must not be local officials. In addition, the gift is only acceptable if an equivalent gift is given to the other members of the group; · Gifts between family members; However, the gift may not be given on the behalf of someone who is not a member of the family. 3. Metropolitan cities with populations over 50,000 Minn. Stat. § Metropolitan cities with a population of over 50,000 are also subject to 471.895; Minn. Stat. § an additional law. Local officials in these cities are prohibited from lOA.071 receiving gifts from "lobbyists." A "lobbyist" is defined as: · Someone engaged in lobbying in the private or public sector; or, · A city employee or non-elected city official who spends more than 50 hours in any month attempting to influence governmental action. - - 2 League of Minnesota Cities . A "local official" is an elected or appointed city official or a city employee with authority to make major decisions on the expenditure or investment of public funds. A "local official" is also someone who has the final power to recommend such a decision. B. Conflict of interest and economic disclosure in metropolitan area cities with populations over 50,000 1. . Conflict of interest disclosure Minn, Stat. § Elected and appointed officials of metropolitan cities with populations 10A.07 over 50,000 must disclose certain infonnation if they will be involved in a decision that will affect their financial interests. The law affects elected or appointed city officials, or city employees with authority to make major decisions regarding public funds. It also affects people who have final power to recommend. such decisions. The law applies if the official or employee must make a decisiop or take an action that substantially affects his or her financial interests or those of a business with which he or she is associated. However, there is an .¡ exception if the effect is no greater for the interested business than for others in that business, occupation, or position. The interested official or employee must do the following: . Prepare a written statement describing the matter requiring action or decision and the nature of the potential conflict of interest; . Deliver a copy of the notice to his or her superiors; 1. If the official is an employee, he or she must deliver a copy of the statement to his or her immediate superior; 11. If the official is directly responsible only to the city council, it should be given to the city council; iii. If the city official is appointed, written notice should go to the chair of the unit. If the potential conflict involves the chair, the written notice should go to the appointing authority (in most cases, the city council); iv. If the official is an elected official, the written statement should go to the presiding officer (the mayor, in most instances); v. If the potential conflict involves the mayor, the written notice should go to the acting, presiding officer. - - Official Conflict ofInterest 3 . · If a potential conflict of interest arises and there isn't time to comply with the above requirements, the city official must orally inform his or her superior, or the city council; · The employee's superior must assign the matter to another employee who does not have a potential conflict of interest; Minn.R. · If there is no immediate superior, the city official must abstain from 4515.0500 influence over the action or decision, if possible, in a manner prescribed by the Ethical Practices Board; · If the city official is not permitted to abstain or cannot abstain t"1e or she must file a statement describing the potential conflict and the action taken. The city official must file this statement with the city council within a week of the action. 2. Statements of economic interest a. Information required Minn. Stat. § . City officials in cities within the seven county metro area with 10A.oI, subd. 29; populations over 50,000 (as determined by the most recent federal Minn. Stat. § 10A.09, subds. 6a, census, a special U.S. census, an estimate by the Met Council, or the . 1 state demographer), must file a statement of economic interest. The statement must be filed with the local official's governing body and the Ethical Practices Board and must report the following inforn1ation: · Their name, address, occupation, and principal place of business; · The name of each associated business (and the nature of that association); · Option-based, direct, or indirect interests in all real property within the state (except homestead property); and, Minn. Stat. § · Interests in horse race track property, or race horses in or out of the lOA.09, subd. 5 state. Minn. Stat. § City officials can get a form for the disclosure of economic interests from 10A.09, subd. 6; Minn.R. the Ethical Practices Board. Officials must then file annual 4505.0900, subpt. 4 supplementary statements by April 15 of each year ,and a final statement upon leaving office. Minn. Stat. § There are similar additional requirements for elected officials of cities in 383B.053; Hennepin County with populations greater than 75,000. - - 4 League of Minnesota Cities . b. Time for filing An individual must file a statement of economic interest with the Ethical Practices Board by the following dates: + Within 60 days of accepting employment as a local official; or, + Within 14 days after filing an affidavit of candidacy or petition to . appear on the ballot for an elective office. c. Notification Minn. Stat. § Upon receiving an affidavit of candidacy or a petition to appear on the lOA.09, subd. 2 ballot from someone who is required to file a statement of economic interest, the county auditor must notify the Ethical Practices Board. Likewise, an official who nominates or employs a city official must also notify the Ethical Practices Board. The county auditor, or nominating/ employing official, must provide the Ethical Practices Board with the following information: + The name of the person required to file the statement of economic interest; and, . + The date of the affidavit of candidacy, petition, or nomination. The city official must also filethe statement with the city council. The city council must maintain these statements as public data. For more information cOntact the Ethical Practices Board at (612) 296-1720. C. Statements of economic interest for trustees of public pension plans 1. Informationrequired Minn. Stat. § Each member of the governing board of a public pension plan must file a 356A.06, subd. 4 statement of economic interest with the plan. This includes the trustees of local relief association pension plans (both regular trustees and ex- . officio members, such as the mayor and clerk.) The statement must include the following: + The person's principal occupation and place of business; + Whether or not the person has an interest of 10 percent or more in an investment security brokerage business, a real estate sales business, an insurance agency, a bank, a savings and loan, or another financial - institution; and, - -,.., Official Conflict of Interest 5 '- .-- . Any relationship or financial arrangement that could give rise to a . conflict of interest. 2. Time for filing The statement must be filed annually with the plan's chief administrative officer. It must be available for public inspection during regular office hours at the pension plan's office. D. Lobbyist regulations Minn. Stat. § State law contains broad lobbyist reporting requirements. Lobbyist~ who 10A.04 attempt to influence the actions of metropolitan governmental un~is must repqrt expenditures for these activities in addition to state legislative and admÍI1Ístrative lobbying activities. City employees and non-elected city officials who spend more than 50 hours in any month on lobbying activities must register and submit reports of lobbying expenses to the Ethical Practices Board by January 15, April 15, and July 15 of each year. Minn. Stat. § Thesereports must include honoraria, gifts, and loans valued at $5 or lOA.04, subd. 4(c) more that lobbyists give to local officials, state lawmakers, or other . public office holders. A lobbyist need only report the aggregate amount and nature of food or beverages given or made available to all members of the Legislature, or a house of the Legislature, or to all members of a local legislative body, along with the name of the legislative body and the date it was given or made available. Minn. Stat. § Associations that spend more than $500 for lobbying, or $50,000 or more 10A.Ol, subd. 28; Minn. Stat. § to influence public policy decisions at the metropolitan or state level, 10A.04, subd. 28 must also file spending reports. These reports must indicate the levels of total spending for both local and state lobbying activities. Any lobbyist who raises more than $5,000 for legislative and statewide candidates or legislative caucuses during an election year must file an additional report. This report must be filed 10 days before the primary or general election. E. Leave during political candidacy v.s.c. §§ 1502·3; The extent to which a city can control the political activities of its Minn. Stat. § 211B.09 employees is unclear. Public employees are generally prohibited from using their official authority or influence to take part in a political activity, A political subdivision may not impose or enforce additional limitations on the political activities of employees. - - 6 League of Minnesota Cities . ! Martin v.ltasca County, 448 However, a recent court decision found that a local government could N.W.2d 368 (Minn. adopt a policy to require employees to take an unpaid leave during a 1989) political candidacy. The Minnesota Supreme court held that a county employee who was a candidate for a county office had no process right to a hearing before being placed on unpaid leave. Also see Minn. The reasoning behind"this decision was that the Court found that a local Stat. § 43A.32; 5 V.S.C. §§ 1501-2; 5 government has an interest in prohibiting government employees from V.S.C. § 7324 certain political activity. As a result, a legislative body could prohibit a government employee from becoming a candidate for elective office to prevent potential conflict in the workplace between the employee and the supervisor-incumbent during the campaign, and also to prevent any coercion of fellow employees and subordinates to assist in the political campaign. For these reasons, the Court stated that:a local government can suspend, or even discharge, a government employee who seeks elective office. Minn. Stats. §§ It is important to note that the Court did not discuss whether such a 10A.20,sIibd.ll; . " . 211B.09-.10; 18 policy must also be applied to the incumbent who was running for re- v.s.c. §§ 600-601; election. The Court also did not consider several statutes that appear to 5 V.s.C. § 1503 . limit the restrictions employers may impose on their employees' political activities. Cities should exercise caution when adopting a policy to "\ -j regulate the political activities of employees. -,,--.-' III. Conflict of interest in contracts A. All cities 1. Ingeneral Minn. Stat. § Generally, public officials may not have a personal financial interest in a 471.87 sale, lease, or contract that they are authorized to make in their official capacity. A "public officer". certainly includes a mayor, a council- member, or an elected official. In some circumstances, the designation may also include non-elected officers and employees who are able to influence the decision or make recommendations. A.G. Op. 9O-E-5, The attorney general said that the conflict of interest law applies to any Nov. 13, 1969; A.G. op. 9Oe-6, councilmember "who is authorized to take part in any manner" in the June 15, 1988 making of the contract. Simply abstaining from voting on the contract will not allow the contract to be made. In other words, if the Legislature had only wanted to prohibit a contract with an interested officer who votes on the contract, it would not have used the word "authorized." - - ) ..#r"- Official Conflict of Interest 7 . A.G. Op. 9Oe-6, A literal reading of the statute suggests that it would not apply to city June 15, 1988 officers who are unable to make a contract on behalf of the city. However, in a recent opinion, the attorney general has given the statute a broader interpretation. Accord1ng to this opinion, the word "making" is to be given broad meaning. This definition could mean that the statute affects more officials than just those who açtually make the decision to enter into the contract. Taking a conservative approach regarding contraçts with any city official may be a wise choice in light of this Op11l10n. A.G. op, 470, June The clerk in a standard plan statutory city, or in a home rule charter city 9, 1967 having a similar plan of government, is a member of the council1Jut occupies a peculiar position. He or she is subject to the conflict of interest statutes and Iì.1ay not be interested in a contract with the council. However, the council is allowed to impose duties on the clerk in addition to those assigned by statute, and the council may fix the clerk's compensation for those duties. 2.. Exceptions and the procedures to use them Minn. Stat. § There are several important exceptions to the conflict of interest law on 471.881 c;on¡racts. These exceptions apply to all cities, despite any other statutes . or charter provisions. Minn. Stat. § Generally, an exception may only be used when approved by unanimous 471.88, subd. 1; In re I989 Street vote of the council. In the past, it has been unclear whether this meant Improverrumt v. that an interested officer should vote or abstain. While some of the Denmark TOlI'nsmp, 483 recently added exceptions require that an interested officer MUST N.W.2d 508, 509 abstain from voting on or participating in the matter, the Legislature did (Minn. App. 1992) not clarify the unanimous vote requirement in the other exceptions when the new provisions were added. This suggests that an interested member would not be required to abstain, except in a circumstance where the statute specifically required it. However, a recent court decision suggests that an interested officer SHOULD abstain from voting, even when not expressly required to abstain under the law. - - 8 League of Minnesota Cities ., \ In Fe 1989 Street I The case dealt with a local improvement that was to be paid for with Improvement v. DentnlU'k special assessments. Two members of the town board owned properties Township, 483' that wo~d be specially assessed. The two interested board members N.W.2d 508, 509 (Minn. App. 1992) abstained from voting on whether the improvement should occur. The . remaining three board members approved of the project. The township was challenged because the project had not received the required four- fifths majority vote of the board. However, the court said that the two interested board members were correct not to have voted on the project since their interests disqualified them from voting. As a result, the remaining three board members' votes were sufficient to unanimously approve the project. See section entitled An interested officetshould disclose his or her interest at the earliest Conflict ofinJeFest stage and abstain from voting on or deliberating any contract in which he checklist or she has an interest. The remainder of the council must unanimously approve the contract in order to make the contract. If even one member of the council votes against the contract, it cannot be made. In addition to the above requirements, there are also additional requirements for' some of the exceptions. . The following exceptions are allowed if the proper procedure is ) followed: _.~~- :.J Minn. Stat. § . The desi~ation of a bank or savines association as an 471.88, subd. 2 authorized depository for public funds and as a source of See Minn. Stat. Ch. 118 borrowine. No restriction applies to the designation of a depository or the deposit of public funds in the depository as long as the funds are protected in accordance with state law. Procedure. The following must occur to use this exception: 1. The council must approve of the designation by unanimous vote. 11. The official who has an interest in the bank or savings association must disclose this fact, and it must be entered in the council meeting minutes. The official must make this disclosure when the bànk or savings association is first designated, or when the official is first elected (if that occurs later.) The disclosure serves as notice of the interest and is only necessary once. 111. The interested officer should abstain from voting on the matter. - - Official Conflict ofInterest 9 . Minn. Stat. § · The designation of an official newspaper or the publication of 471.88, subd. 3; Minn. Stat. § 'Òfficial matters in the newspaper. This applies only when the 331A.04 interested 'official's newspaper is the ONLY publication qualified to be the official newspaper: If the official's newspaper is the only qualified newspaper published in the city, it must be designated as the city's official newspaper. Procedure. The following must occur to use this exception: 1. The council must approve of the designation by unanimous vote. 11. The interested officer should abstain from voting on the matter. Minn. Stat. § · A contract with a cooperative association of which the official is 471.88, subd. 4 a shareholder or stockholder, but not an officer or manager. Procedure. The following must occur to use this exception: 1. The council must approve of the contract by unanimous vote. 11. The interested officer should abstain from voting on the matter. Minn. Stat. § · A contract for which competitive bids are not required by law. 471.88, subd. 5 . Minn. Stat. § Generally, a city must use competitive bidding if the amount of a 471.345 contract is more than $25,000. A city may not avoid the bidding A.G. Op. 9Oa.l, Apr. 22, 1971 requirements by splitting a single contract into several contracts. See discussion It remains unclear as to whether the Legislature meant this exception under lncompàl· ibiliJy of off¡.ces and to apply only to contracts less than $25,000, or if larger contracts Employment of which are not required to be competitively bid (such as professional eluredoff¡.cialby city sections. service or employment) are also included. A city may want to seek a legal opinion if it is unsure whether or not this exception applies to a particular situation. Since a contract to buy or sell real property is not required to be competitively bid, this exception would seem to allow a city to purchase land from one of its councilmembers. However, the city may want to have an independent appraiser determine the market value of the land before the price is set. Of course, the council could also choose to use eminent domain proceedings if there is a concern over the public's perception of the sale. Under eminent domain, the value of the property is established by commissioners appointed by a court. - - 10 League of Minnesota Cities .; Minn. Stat. §§ Procedure. The following must occur to use this exception: 471.88, subd. 5 and 471.89 1. The council must approve the contract by unanimous vote. 11. The interested officer should abstain from voting on the matter. See Forms 1 and 2 iii. The council must pass a resolution setting out the essential for sample resolutions. facts, such as the nature of the interested officer's interest, and the item or service to be provided, and stating that the See Form 3 for . contract price is as low or lower than elsewhere. sample ~davit. IV. Before a claim is paid, the interested officer must file an affidavit with the clerk that contains the following: · The name and office of the interested officer; · An itemization of the commodity or services furnished; · The contract price; · The reasonable value; · The interest of the officer in the contract; and, · Thatto the best of the officer's knowledge and belief the contract price is as low or lower than the price that could MinD. Stat. be obtained from other sources. §471.89, subd. 2 V. . In the case of an emergency when the contract cannot be See Forms 2 and 3 authorized in advance, payment of the claims must be . authorized by a resolution (see above) in which the facts of .~~. the emergency are also stated. Minn. Stat. § . A contract with a volunteer fire department for the payment of 471.88, subd. 6 A.G. op. 358-e-4, compensation to its members, or for the payment of retirement Jan. 19, 1965; A.G. benefits to its members. There is still some question as to whether Op. 358-e-9, Apr, this exception applies to both municipal and independently operated 5, 1971; A.G. Op. 90-e, Apr. 17, 1978 fire departments. A literal reading of the statute suggests that this Also see discussion exception applies only to an actual contract. Since cities do not in section entitled usually contract with a municipal fire department, there is a lncompatability of possibility that this exception may only apply to contracts with an offices. independent fire department. However, the attorney general has issued mixed opinions, some of which imply that the exception can apply to both kinds of fire departments. A councilmembershould also consider whether serving the city in two functions would result in incompatible offices. ¡. Procedure. The following must occur to use this exception: 1. The council must approve the contract by unanimous vote. 11. The interested officer should abstain from voting on the matteL - - Official Conflict of Interest 11 . Minn. Stat. § · A contract with a municipal band for the payment of 471.88, subd. 7 compensation to its members. Procedure. The following must occur to use this exception: 1. The council must approve of the contract by unanimous vote. n. The interested officer should abstain from voting on the matter. Minn. Stat. § · Contracts between an import/export firm and an economic 471.88, subds. 9, 10 development authority ŒDA), port authority. or seaway port authority when a commissioner is employed by the firm. Procedure. The following must occur to use this exception: 1. The authority must approve the contract by unanimous vote. n. The interested officer MUST abstain from voting on the matter. Minn. Stat. § · Bank loans or trust services between a bank and a public 471.88, subd. 11 housing authority, port authority, or EDA when the bank employs one of the commissioners. Procedure. The following must occur to use this exception: . 1. The authority must approve the contract by unanimous vote. n. The commissioner must disclose the nature of those loans or trust services of which he or she has personal knowledge. iii. The disclosure must be entered into the meeting minutes. iv. The interested officer should abstain from voting on the matter. Minn. Stat. § . A contract for construction materials or services, or both, by 471.88, subd. 12 sealed bid process if the unit has a population of 1,000 or less and the sealed bid process is used. Procedure. The following must occur to use this exception: 1. The council must approve the contract by unanimous vote. n. The interested officer may NOT vote on the question of the contract when it comes before the governing body for consideration. Minn. Stat. § . A contract to rent space in a public facility at a rate equal to that 471.88, subd. 13 paid by other members of the public. Procedure. The following must occur to use this exception: 1. The council must approve of the contract by unanimous vote. 11. The interested officer MUST abstain from voting on the - matter. - 12 League of Minnesota Cities .. } Minn. Stat. § · An application for a grant offered by a county or multi-county 471.88, subd. 14 housing and redevelopment authority (BRA). Procedure. The following must occur to use this exception: 1. The authority must approve of the application by unanimous vote. H. The interested officer MUST abstain from voting on the matter. iii. The interested officer must disclose that he or she has applied for a grar~.t. iv. The interest must be entered into the official minutes. Minn. Stat. § · A councilmember who is employed by a utility that has a 471.88, subd. 15 franchise agreement with the city may continue to serve on the council. Procedure. The following must occur to use this exception: 1. The council must approve the contract by unanimous vote. H. The interested officer MUST abstain from voting on any franchise matters. iii. The reason for the interested councilmember's abstention . must be recorded in the meeting minutes. Minn. Stat. § · A school board member may be an employee of the school 471.88, subd. 16 district if his or her earnings do not exceed $5,000. Procedure. The following must occur to use this exception: 1. The schoolboard must approve of the employment by unanimous vote. H. The interested officer MUST abstain from voting on the matter. B. Statutory cities Minn. Stat. § Statutory cities must consider an additional law . The law provides that 412.311 no member of a statutory city council may be directly or indirectly interested in any contract the council makes, except for the limited exceptions discussed previously. This law may apply to some situations where the general law does not. For example, even though the actual contract is not made with a councilmember, the fact that he or she has an indirect interest could prohibit making the contract. - - Official Conflict of Interest 13 . C. Home-rule charter cities Minn. Stat. § Many home rule charters contain provisions on conflict of interest in 471.881 contracts. Some of these go beyond the statute to include any city official, even though the official has no part in making the contract. These charter provisions may apply to situations where the statute does not. However, the exceptions discussed previously apply to all cities, despite any other statute or city charter. (Because charter provisions vary from city to city, they are not covered in this document.) Some home rule charters contain provisions preventing all officers and employees from being interested in a contract with the city. Such ~. provision evidently applies to every city officer or employee whether or not he or she has a part in making contracts. D. Specific kinds of contracts A.G. Op. 908-2, The unlawful interest statutes apply to all kinds of contracts, formal or Apr. 14, 1960; A.G. Op. 9OE.5, informal, for goods and services. The statute applies not only when the Aug. 30, 1949 city is the buyer, but also when the city is the seller. 1. Prohjbited interest . A.G. Op. 9OE-l, The law would appear to prohibit a contract with a public official who May 12, 1976 has had the opportunity to influence the terms of the contract or the decision of the governing body. Minn. Stat. § Even when a contract is allowed under one of the exceptions, such as for 471.88, subd. 5 See section entitled "a contract for which bids are not required by law" (which might include I ncompaJibilily of an employment contract), councilmembers should be cautious. offICes Employing a councilmember as a city employee may still be prohibited under the "incompatibility of offices" doctrine. A.G. Op. 90A·1 Holding stock in a corporation that enters into a contract with the city May 16, 1952; A.G. Op. 90b, Aug. involves an unlawful interest. A councilmember who is a subcontractor 8, 1969 has an unlawful interest. A member of a governing body has a financial interest in a contract with a court reporting firm when the member receives a percentage of the money received by the firm for reporting jobs done under the agreement. A.G. Op. 90-E-5, On the other hand, the attorney general has said that if a councilmember Nov. 13, 1%9 is an employee of the contracting finn and his or her salary is not affected by the contract, the council may determine that no personal financial interest exists, Thus, such a contract may be made and enforced in a home rule charter city with no charter provisions prohibiting direct - or indirect interest. - 14 League of Minnesota Cities e) Singewald v. The Supreme Court has held that employment by a company which the Minneapolis Gas Co., 274 Minn. 556, city contracts with may give a councilmember an indirect interest in the 142 N.W.2d 739 contract. However, a_ more recent attorney general opinion concluded that (1966); A.G. Op. 908-1, Oct. 7, 1976 it is unclear whether mere employment always gives rise to a conflict of interest. A.G. op. 908-1, The attorney general has said that factors other than employment may Oct. 7, 1976 have to be considered to determine whether a prohibited interest is present. The attorney general concluded that a council may contract with a councilmember' semployer if the following criteria are met: · The councilmember has no ownership interest in the firm; .. · The councilmember is neither an officer nor a director; · The councilmember is compensated on a salary or hourly wage basis and receives no commissions, bonus or other remuneration; and, · The councilmember is not involved in supervising the performance of the contract for the employer, and has no other interest in the contract. More difficult questions sometimes occur when a councilmember takes office after a city has entered into a contract. If no conflict of interest can . develop between the councilmember's public duty and his or her private interest in the contract during the contract, the councilmember can .- - - --., I probably serve. However, if a conflict of interest can develop, the interested member may be prohibited from serving on the council.The attorney general has issued mixed opinions concerning the legality of these types of situations. A.G. Op., Apr, 1, In an informal letter, the attorney general said that the director of a 1975 malting company could assume office as a councilmember even though the city had entered into a 20-year contract with the company to allow the company to use the city's sewage disposal plant. The contract also fixed rates for service subject to negotiation of new rates under certain circumstances. The attorney general said that the councilmember could continue to serve as long as no new negotiations were required. However, no new agreement could be entered as long as the interested councilmember held office. A.G. Op. 90E-l, The law apparently prohibits making a contract with any public official May 12, 1.976 who has had the opportunity to influence the tenns of the contract. The attorney general held that a former councilmember could not be a subcontractor on a municipal hospital contract if he was a councilmember when the prime contract was awarded. - - Official Conflict of Interest 15 . A.G. Op. 9O-a-1, However, in a different opinion, the attorney general ruled that a Mar. 30, 1961 councilmember was eligible for city office even though entitled to commissions on insurance premiums payable by the city. In this instance, the contract was entered bef6re the person became a councilmember. The assumption of office by someone with a personal financial interest ~n an already existing contract raises concerns about possible conflicts of interest during the performance of the contract. In doubtful cases of this kind, the person faced with a possible conflict of interest situation should ~eek a legal opinion before assuming city office. .2. Employment of elected official by city The League is often asked if an elected city official can also be employed by the city. There are several issues that must be considered to determine whether this is permissible. See sedion entitled First, it must be determined if thè two positions are incompatible. If the I ncom¡xllibilily of ofJkes for further two positions are incompatible, the individual may NOT serve in both discussion. positions. See section entitled If the two positions are not incompatible, it must then be determined if Exceptions arid . procedureS to use there is an exception to the conflict of interest laws that allows the them -. contractfor employment contract to be made. Even if an employment situation does which competitive bids not required. not result in a formal written contract, the employment arrangement is an informal agreement that would probably be seen as a contract. Minn. Stat. § There is an exception to the conflict of interest law that allows a contract 471.88, subd, 5 Also see section to be made with an interested official if the contract is not required to be entitled lncompat- competitively bid. This exception may permit a city to hire an elected ibilily of offICes for further discussion. official as an employee, since employment situations are not generally required to be competitively bid. However, it is unclear if the Legislature meant this exception to include employment contracts in excess of the $25,000 limit for competitive bidding. It is also not clear whether this provision provides an exception to the common law incompatibility rules. A city may want to request an attorney general opinion if dealing with situations like these. - - 16 League of Minnesota Cities . 3. Validity of contracts with relatives of city officials See discussion of The conflict of interest laws do not address family relationships as Non-contract situations in Part constituting possible conflicts. The courts of other states generally have IV of this memo held that family relationship alone has no disqualifying effect on the making of a contract. There must be proof that a councilmember has a financial interest. Cases dealing with non-contract situations are similar. In none of the cases dealing with non-contract situations has the mere fact of family relationship, other than that of husband and wife, resulted in disqualifying interest. Minn. Stat. § While it is easier to find that a councilmember has a personal financial 519.02 interest in a contract with the councilmember's spouse, a marital relationship alone may not make the contract invalid~ In other states, courts have held that a public body is not prohibited from appointing the spouse of one of its members as long as under the state law the spouse's earnings are his or her own property. A.G..Op., Jnne 28, If the interest of the councilmember is direct or indirect, a contract with 1928; A. G. Op., the councilmember's spouse may involve a violation of the law. The July 14, 1939; A.G. op. 90-C-5, July attorney general has construed the law broadly to hold such contracts . 30,1940 invalid. If the money earned under the contract is used to support the ! family, the councilmember derives some benefit. In this type of situation, H_. the.attorney general has held that there is an indirect interest in the contract on the part of the councilmember, therefore, the contract is void. A.G. Op. 90-B, The law gives the husband or wife various interests in their spouse's Apr. 5, 1955 estate. The attorney general once held that these interests alone would prohibit contracting with the spouse of a city official. However, in more recent opinions, the attorney general has taken the position that each case turns on its individual facts. In short, the mere fact of the relationship does not affect the validity of the contract. Minn. Stat. § Under existing law, spouses are liable for each other's support for 519.05; A.G. op. 90a-l, necessities. If a spouse who contracts with the city uses the earnings from Dec. 9, 1976 the contract individually and not to support the family, the contract probably would not be invalid simply because the spouse is a councilmember. However, if the facts tend to show otherwise, the legality of the contract will be doubtful. The attorney general has advised local governing bodies to avoid the suspicion and criticism that may result from such contracts. Although a prohibited interest in contracts does not necessarily arise when the spouse of a city employee is elected councilmember, the opinion carefully avoids any statement about future - action of the counCil on the existing employment relationship. -.. Official Conflict of Interest 17 . Minn. Stat. ~ . It should be noted that the Minnesota Human Rights Act prohibits 363.03, subd. 1(2) discrimination in employment based upon marital status. As such, cities Also see sectioo should exercise caution when making inquiries into the marital status of entiUedFamily connections. employees or applicants for positions with the city. 4. Sale of government-owned property a. In general Minn. Stat. ~ Officers and employees of the state or its subdivisions are prohibited 15.054 f!om selling government-owned property to another officer or employee of the state or its subdivisions. "Property" includes personal property (such as equipment or automobiles) and real property (land.) This law appears to prohibit the sale of any city-owned property to any officer or employee. b. Exceptions Minn. Stat. § There are two exceptions to this prohibition. Personal property owned by 15.054 the state or its subdivisions and no longer needed for public purposes can be sold to an employee (but not to an officer) under certain conditions. These conditions are: · There has been reasonable public notice and the property is sold at a . public auction; · The employee is the highest responsible bidder; · The employee who buys the property must not be directly involved in the auction or sealed bid process. The law does not apply to the sale of items acquired or produced for sale to the general public in the ordinary course of business. It also allows an employee or officer of a state or subdivision to sell public property if the sale is in the normal course of the employee's duties. E. Contracts made in violation of the statutes Minn. Stat. § A public officer who violates the conflict of interest law is guilty of a 471.87 ; Minn. Stat. § gross misdemeanor and can be fined up to $3,000 and imprisoned up to 609.0341, subd. 1; one year. Any contract made in violation of the conflict of interest law is A.G. Op. 9Q.a·l, void. Public officers who knowingly authorize a contract even though Apr. 22, 1971 they do not receive personal benefit from it may also be subject to criminal provisions of state law. - - 18 League of Minnesota Cities . ) City ofChaska v. When a city enters into a contract that has subject matter beyond the Hedman, 53 MinD. 525,55 N.W. 737 city's corporate powers, there will be no city liability for the contract. (1893); Even when the contract is within the city's corporate powers, any Currie v. School District No. 26, 35 contract made in violation of the unlawful interest statutes is void. As a Minn. 163, 27 result, such a contract cannot be the basis of a lawsuit. However, a city N.W. 933 (1886); BjeUand v. City of may be enjoined from performing an illegal contract. Manka/o, 112 Minn. 24, 127 N.W. 397 (1910) Stone v. Bevans, 88 If a contract is invalid, it does not matter that the councilmember did not Minn. 127,92 participate in the vote or discussion. Likewise, it does not matter that the N.W. 520 (1902); City of Minne- . councilmember's vote was not essential to the council's approval of the apolis v. Camur- contract. It is the existence of the interest that is important. Even if the bury, 122 Minn. 301,142 N.W.812 councilmember acted in good faith and the contract was fair and (1913); Currie v. reasonable, the contract is void if it is prohibited because of a conflict of School District No. 26, 26, 35 Minn. . interest. 163,27 N.W. 933 (1886); Singewald v. Minneapolis Gas. Co., 274 Minn. 556, 142 N.W.2d 739 . (1966) . Stone v. Bevens, 88 When a prohibited contract is made with an interested councilmember, -::1 ~ _.~ . Minn. 127,92 the councilmember may notrecover on the contract. Nor may a N.W. 520 (1902) councilmember recover value on the basis of an implied contract. If a councilmember has à1ready received payment, restitution to the city can be compelled. For example, if the mayor is paid for services to the city under an illegal contract, a taxpayer could sue to recover the money for the city. It does not matter that the mayor was not present at the meeting at which the agreement for compensation was adopted. Frisch v. City of St. If a councilmember has made an unlawful sale of goods to the city and Chorles, 167 Minn. 171,208 N;W. 650 . the goods can be returned, a court will probably order it and prohibit any (1926); Mares v. payment for the goods. This might be ordered when a lot has been Janutka, 196 MinD, 87, 264 N.W. 222 purchased from a councilmember and no building has been erected on it, (1936); or if supplies, such as lumber, have been bought and not yet used. However, if the goods cannot be returned and if the contract was not beyond the powers of the city and there was no fraud or collusion in the transaction, the court will determine the reasonable value of the property and permit payment on the basis of value received. - .- Official Conflict of Interest 19 . In case of doubt, it is wise to assume that a city cannot contract with one of its officers. If the contract is necessary, a legal opinion or court ruling should be secured before proceeding. The safest course of action is to assume that a contract prohibited under the conflict of interest statutes is void, whether or not the interested councilmember has participated in the transaction. IV. Conflict of interest in non-contract situations A. In general While thelaws discussed previously relate only to contracts with interested officials, courts throughout the country, including the Minnesota Supreme Court, have followed similar principles in non- contract situations even in the absence of specific laws. 56 Am.·Jur. 2d, Any official who has personal financial interest in an official non- Municipal Corpora/iJJns, Sec. contract action is generally disqualified from participating in the action. 142 This is especially true when the matter concerns the member's own character, conduct, or right to hold office. Another situation may be . when the official's own personal interest is so distinct from the public interest that the member cannot be expected to represent the public interest fairly in deciding the matter. In applying the disqualification rules in non-contract situations, the courts have sometimes made a distinction between judicial and quasi- judicial acts on the one hand, and legislative and administrative acts on the other. However, this distinction has not been consistently applied in particular cases. In general, when an act of a council is judicial, no member who has a personal interest may take part. Some would argue that the member's participation makes the decision voidable, even if his or her vote was not necessary to make the decision. Some of the cases discussed in the next section indicate how this distinction has been applied. When there is a disqualifying personal interest, the action is not necessarily void, however. In contrast to the rules regarding conflict of interest in contract situations, the official action may be valid if the disqualified official does not participate and the required number of non- interested councilmembers approve the action. - 20 League of Minnesota Cities .) B. Disqualifying interest factors Lenz v. Coon Creek The Minnesota Supreme Court has listed several factors to consider in WaJershed District, 278 Minn. 1, 153 detennining if a disqualifying. interest exists: N.W.2d 209 (1967) · The nature of the decision being made; · The nature of the financial interest; · The number of interested officials; GonZilles v. Dairy · The need for the interested officials to make the decision; VaUey, 71 Cal. Rptr. 255 (Cal. Ct. For example, in one case, it was held that when an administrative App. 1968) body had a duty to act on a matter and was the only entity capable of acting on the matter, the fact that members may have had a personal interest in the result did not disqualify them from perfonning their duty. In that case, councilmembers owned stock in a corporation seeking a special use pennit. Lenz v. Cook Creek · Other means available; Watershed District, Another relevant factor is whether or not other means are available, . 278 Minn. 1, 153 such as an opportunity for review. In one case, the court took into N.W.2d 209 (1967.) account the fact that a decision by a board of managers could be --...:~~ Township Board of appealed to the state water resources board. The court referred to the Lake Valley v. Lewis, 305 Minn. same factor in another decision regarding a town board decision to 488,234 N.W.2d establish a road. In upholding the town board's decision, the court 815 (1975) said that the availability of appeal to the district court would adequately protect owners of the affected land from any possible prejudice. C. Specific situations There is far from complete agreement among the various courts on the kinds of interest and the situations that prevent an interested official from taking part in non-contract official actions. A summary of some of these situations follows: - ,,' Official Conflict of Interest 21 . 1. Determination of an official's right to office Minnesota Code of On the theory that no person should be the judge of his or her own case, Judicial Conduct, Canon 3D (19%) COurts have generally held that an officer may not participate in proceedings involving his or her status. Thus, city council members are probably prohibited from judging themselves on an offense in which the majority of the council participated. Likewise, determination of a councilmember's residency may be one such issue from which an interested officer should abstain. 2. Self-appointment Minn. Stat. § Generally, city officials may not appoint a councilmember to an elected 471.46 Minn. Stat. § position, even if he or she resigns before the appointment is made. 415.15 However, a councilmember may be appointed to the mayor's or clerk's position, but the councilmember may not vote on the appointment. Likewise, resigning councilmembers may not vote on their successors. See section entitled In the situation of appointment to a non-elective position, the general ]ncompaÙlbüity of rule is that the official has a self-interest, and he or she is disqualified offICes from participating in the decision. Whether the council member serving Jhe city in a second function creates an incompatibility must also be . considered. 3. Fixing official's own compensation Minn. Stat. § State law authorizes a council of any second, third, or fourth class city in 415.11 Minnesota to set its own salary and that of the mayor. However, the change in salary cannot begin until after the next regular city election. Since every councilmember has a personal interest in determining the compensation, the need for interested officials to make the decision (in this case, by passing an ordinance), is determinative in this situation. A special situation is involved in setting the clerk's salary in a standard plan statutory city. In these cities, the clerk is elected and is thus a voting member of the council. The other four councilmembers may vote on the clerk's compensation without any disqualifying self-interests. However, it is probably best for the clerk not to vote on his or her own salary. - - 22 League of Minnesota Cities .) 4. Family connections A.G. Op. Apr. 14, In an infonnalletter, the attorney general said that a councilmember was 1975 not disqualified from -voting on a rezoning because his father owned legal title to the tract in question. The councilmember's father had sold part of the property to the rezoning applicant on a contract for deed. The councilmember did not have an interest sufficient to prohibit him from voting on the matter. A.G. Op. 908.1, The attorney general has also held that a prohibited interest does not Dee. 9, 1976 necessarily arise when the spouse of a city employee is elected mayor. The opinion carefully avoids any statement about future action of the council on the existing employment relationship. Minn. Stat. § It should be noted that the Minnesota Human Rights Act prohibits 363.03, subd. 1(2) discrimination in employment based upon marital status. As such, cities Also see section should exercise caution when making inquiries into the marital status of entitled Contracts wilh relatives. employees or applicants for positions with the city. 5. Business connections A.G. Op. 430, Apr. Other types of business interests may also be prohibited indirect interests ., 28,1967 even though there is not a personal financìal interest under the general _. law. The attorney general said that where a housing authority commissioner was a foreman who would aid a contractor in making a bid to the housing authority, the commission member was covered by the statutory language. 6. Land issues Since a city council must deal with land matters, it is almost inevitable. that one of these decisions may affect property that is owned or used by one onts members. a. Local improvements and special assessments In re Petition of A councilmember owning land to be benefitted by a local improvement Jacobson, 234 Minn. 2%,48 is probably not prohibited from petitioning for the improvement, voting N.W.2d 441 (1951); to undertake it, or voting to adopt the resulting special assessment. Lenz v. Coon Creek Watershed District, Although one Minnesota decision took a different view on county ditch 278 Minn. 1, 153 proceedings, it seems to have been sharply limited as a precedent by a N.W.2d 209 (1967) later case. The two cases can also be distinguished on their facts. _r Official Conflict of Interest 23 . In re Petition of The fIrst case concerned a proposed county ditch that bypassed a county J~obson, 234 Minn. 296, 48 board member's property although an existing ditch cut through a N.W.2d 441 (1951) substantial area of his property. Although the board member participated in preliminary proceedings before the board regarding the feasibility of the improvement, he did not attend the fInal hearing. The court vacated the county board's order since the preliminary proceedings may have had a substantial effect on later actions taken at the fInal hearing. The court also said that the board member should not have participated in any of the proceedings regarding the project. Lenz v. Coon Creek 'The second case found that there was no disqualifying conflict of iiiterest Watershed District, 278 Mimi. 1, 153 when four of the five managers of a watershed district owned laIla that N.W.2d 209 (1967) would be benefItted by a proposed district. This court recognized that the situation was similar to those where members of a city council assess lands owned by them for local improvements. As a result, the court fóund that this potential conflict of interest did not disqualify the district board members from participating in the improvement proceedings. It is possible that a councilmember's property ownership might result in a more favorable treatment of that property in the assessment. If that happened, the assessment might be challenged for arbitrariness and set . aside, whether or not the councilmember participated in the assessment proceedings. b. Zoning A.G. Op. 59a-32, The attorney general has held that a council is not prevented from Sept. 11, 1978 rezoning property owned by a councilmember or by his or her client. However. the councilmember may not participate in the council proceedings involving the zoning. Apparently, the law does not prohibit passing a zoning ordinance that will affect a councilmember's property. However, substantial self-interest may disqualify the member from participating in council action on the matter. A.G. Op. 471-r, In a prior opinion, the attorney general said that it was a question of fact Sept. 13, 1963 Whether a town board member had a disqualifying interest for having sold land that was the subject of rezoning. However, the attorney general appeared to assume that if the board member had a sufficient interest in the land, the member would be disqualifIed from voting on the rezoning. - - 24 League of Minnesota Cities .') i. Property ownership Whether or not prop~rty ownership disqualifies a council or board member from participating in council action will depend, to some extent, on the amount of that interest compared to all land affected by the . decision. At one extreme is adoption of a new zoning or a comprehensive revision of an existing ordinance which may have an impact on all property in the city. In this situation, the interest is not personal and the councilmember should be able to participate. If this weren't allowed, no such ordinance could ever be adopted since all councilmembers may be property owners. At the other extreme is the application for a zoning variance or special use pennit applying only to a councilmember's property. In this instance, there is such a specific interest that it will probably disqualify the member from participating in the proceedings. However, the councilmember should still be able to submit the required application to the city. Between these two extremes are those proceedings affecting some lots or parcels, only one of which a councilmember owns. In such cases it is a . question of fact whether the councilmember is disqualified from voting. If the councilmember chooses to vote, the council must decide whether the member should be disqualified -- a decision which is subject to review in the courts if challenged. There will be many situations where the right to vote is doubtful enough that an interested councilmember should refrain from participating. ii. Condemnation Webster v. Board of There is little doubt that a councilmember's ownership of land is so County Commissioners, 26 direct and significant as to preclude his or her participation in a Minn. 220, 2 N.W. resolution to condemn the land. The Minnesota Supreme Court has not 697 (1897) ruled directly on this question. However, it did not disqualify a county board member from participating in condemnation proceedings to establish the highway when the board member owned land adjoining the proposed highway. The court suggested that the decision might have been different if the owner had been entitled to damages if the highway had gone through his property. - Official Conflict of Interest 25 . iii. Church affiliation RoweU v. Board of The court held that a zoning board member who was also a member of a Adjustment of the City of Moorhead, church was not disqualified from voting on a zoning variance requested 446 N.W.2d 917 by that church. The court found that the nature of the financial interest (Minn. App. 1989) could not have influenced the voting board member. The person's membership in the church, without evidence of a closer connection, was not a sufficiently direct interest in the outcome of the matter to justify setting aside the board's zoning action. c. Streets i. Establishing streets and highways Webster v. Board of It would appear that a councilmember who owns land near an area where County Commissioners, U a street may be opened would not be prohibited from voting on the Minn. 220, 2 N.W. matter. The Minnesota Supreme Court has held that a county board 697 (1897) member who owned land adjoining a proposed county highway did not have a disqualifying interest that prevented him from voting on the establishment of the highway. The board member's interest was similar to that of the rest of the public and differed only in degree. A different decision may have been reached had the highway gone though any of the . commissioner's land. Lake VaUey The court refused to disqualify a town board supervisor for asking a Township v. Lewis, 305 Minn. 488 234 landowner to circulate a petition for a road. By its very nature, the N.W.2d 815 (1975) decision to establish a town road is of interest to all local citizens, including town board members, who often may be in the best position to be aware of the need for a road. The court said that the ability of affected property owners to appeal to the district court would adequately protect them from any possible prejudice. ii. Street vacation A.G. Op. 396g·16, It is arguable that a street vacation is not essentially different from Oct. 15, 1957 establishing the street, where abutting owners have been held not to have Also see a disqualifying interest. However, the attorney general ruled that a Petiticn of Jcu;obson,234 councilmember who had an interest in property abutting a proposed Minn. 296, 48 street vacation could not participate in the street vacation proceedings. N.W.2d 441 (1951) In light of this ruling it is advisable that a councilmember who owns property abutting a street proposed to be vacated refrain from participating in vacation proceedings before the council. 26 League of Minnesota Cities ·) 7. Urban renewal An interest in property subject to an urban renewal decision may be grounds for disqualification. However, when the property is within the area of a larger urban renewal program but not in the project area subject to the decision, it is arguable that the councilmember would not be disqualified from voting. Since there have been no Minnesota cases addressing this issue councilmembers with these types of interests may wish to abstain from voting on these matters, or seek an attorney general opinion regarding the legality of their participation. 8. Licenses --AlthQugh there have been no Minnesota cases directly on the subject, it seems obvious that when a councilmember is an applicant for a license to be granted by the council, there is enough of a personal financial interest that the member should not take part in the decision on the application. A.G. Op. 21S-R, If a general licensing ordinance is the subject of the action, even a Apr. 29, 1952 councilmember who does not hold a license may have a possible conflict of interest that could disqualify him or her from voting. The attorney . general said that a councilmember who was a part-time employee of a liquor licensee could not vote on the question of reducing the liquor ".- I license fee if could be shown that the councilmember was personally -.....,' - interested. For example, if the fee reduction will affect the councilmember's compensation or continued employment, he or she would obviously have a personal financial interest in the decision. However, whether an individual's personal interest is sufficient to disqualify him or her from voting on the decision is a fact question that must be determined on a case-by-case basis. E.T.O., Inc. v. In a similar case, the Minnesota Supreme Court held that since a town Town of _..' Marion,375 board member owned property across from a bar that was subject to a N. W.2d 815 (MinD, liquor license renewal decision, he was disqualified from voting on the 1985) license renewal. The town board member stated his property had been devalued by $100,000 since the bar opened, and he was elected to the board based largely on his opposition to the bar. The court stated, "a more direct, admitted, financial interest is hard to imagine." - Official Conflict of Interest 27 . D. Effect of disqualifying interest on action Nodes v. City of A contract that is prohibited due to a conflict of interest is void. Hastings, 284 Minn. 552, 170 However, a non-contract situation, where a councilmember has a N.W.2d 92 (1%9) disqualifying interest, may be valid if the result would have been the same without the interested official's vote. The court held that it would have been a "better practice" for the interested member of a three- member civil service commission to disqualify himself and abstain from voting. However, his participation in a unanimous decision did not invalidate the commission's decision to terminate an employee. In re I989 Street Councilmembers who have a disqualifying interest in a matter are Improvement ~'. DenTTUlrk generally excluded when counting the number of councilmembers Township, 483 necessary for a quorum, or for the necessary number needed to approve N.W.2d 508, 509 (Minn. App. 1992) an action by a four-fifths vote, such as approving a special assessment. E. Conflict of interest checklist · Consult with the city attorney. · Disclose the interest. i. Make disclosure at the earliest stage preceding the discussion; . . Make oral disclosure to the governing body or board; . Make written disclosure; ii. Don't participate in discussions leading up to the decision. · Don't vote or take any official action unless the city attorney decides there is no prohibited conflict of interest. · Don't influence others. i. Don't participate in the discussion, either at the time of the vote or earlier; ii. Leave the room when the governing body is discussing the matter. v. Incompatibility of offices A. In general The question of whether a city official can also serve the city in some other capacity is quite complicated. One must look at both the statutory law, and the common law that has been developed through Minnesota court decisions. - 28 League of Minnesota Cities . All persons in elected office are prohibited from holding incompatible offices. In addition, many appointed officials may need to consider this law if taking a position that may conflict with their city responsibilities. The common law doctrine of incompatibility applies to the functions of two inconsistent offices. However, there is no clear definition of what constitutes an "office" for the purpose of this law. Certainly it would include all elected offices. It may also include appointed offices such as city administrators, managers, and police chiefs. Generally, an office has greater responsibility, importance, and independence than mere city employment. State ex reL Hilton State laws generally do not prevent a person from holding two or more v. Sword, 157 Minn. 263, 196 governmental positions. However, without specific statutory authority, N.W. 615 (1908); government officials cannot hold more than one position if the functions Kenney v. Goergen, 36 Minn. 190, 91 are incompatible, or if the jobs create a conflict between two different N.W. 210 (1886) public interests. Minn. Stat. § 43.28 Federal civil service rules generally require that a person covered by the rules must resign before seeking local elected office. State civil service employees can hold any local elected office as long as the position does . not conflict with their regular state employment. The Minnesota Department of Employee Relations will determine whether a conflict exists. A waiver of salary or serving without pay does not change the incompatibility of any two positions because it does not affect their basic character. B. Elements of incompatible offices Positions are incompatible when one or more of the following conditions exist: . If the holder of one position (or the group or board of which the person is a member): 1. Hires or appoints the other; u. Sets the salary for the other; iii. Performs functions that are inconsistent with the other; iv. Makes contracts with the other; or, v. Approves the official or fidelity bond of the other. Official Conflict of IntereSI 29 . . If a specific statute or charter provision: 1. States that one person may not hold two or more specific positions; ii. Requires that the officer may not take another position; or, iii. Requires that the officer devote full time to the position. . If one of the positions: . 1. Is in the federal service (except for postal employees); ii. Exists because of a contract made by the group or board of which the officer is a member; iii. Is in a government unit which has interest and purposes tha' conflict with those of the group to which the other positicil belongs; or, iv. Has duties that conflict with those of the other. C. Violation of the incompatibility law A.G. Op. 471-M, When an official qualifies for a second and incompatible position (by Dee. 11, 1957 taking an oath and filing a bond, if necessary), he or she automatically resigns from the first position, which then becomes vacant. However, an individual can run for election to a position that is incompatible with the position the person already holds without resigning from the first. . D. Offices that have been found incompatible It is important to remember that incompatibility depends on the nature of the offices and their relationship to one another. A city official who is considering seeking an additional office should obtain a legal opinion on the compatibility of the two offices. The attorney general has found the following offices to be incompatible: A.G. Op. 358e·7, · Councilmember and city treasurer J\Iar. 5, 1965 A.G. Op. 358e·9, · Mayor and school board member Dee. 13, 1969 A.G. Op. 358e·3, · Councilmember and city attorney Mar. 6, 1946 A.G. Op. 358·e·9, · Councilmember and fire chief Apr. 5, 1971 30 League of Minnesota Cities ." A.G. Op. 35S-e-5, While the attorney general once ruled that the exception under the Jan. 19, 1965; A.G. Op. 35S-e-9, conflict of interest law allowed a councilmember to be a member of a . Apr. 5, 1971; city fire department, the situation was complicated by a later opinion. Kenny v. Goergen, 36 Minn. 190, 31 This later opinion found that the fire chief of a municipal fire department . N.W. 210 (1886) automatically vacated the office of fire chief when he accepted a seat on , the city council. The opinion did not mention the exception listed in the conflict of interest statute, nor the earlier opinion. A.G. Op. 9O-e, The attorney general said two things in a 1978 opinion. First, the Apr. 17, 1978 exception in the law allows a councilmember to be a member of an independent volunteer fire department when the contract is negotiated, as long as the proper procedures listed in the conflict of interest law are followed. Second, the situations presented in the earlier opinions were further explained. The reason one was allowed and the other was not was because in one situation the fire chief had additional responsibilities and duties to the council that mere members of the fire department did not. Because each city may have a different relationship with its fire department, a city may want to get a legal opinion from its attorney or the attorney general before allowing a councilmember to serve as a . volunteer firefighter with any sort of supervisory powers. In conclusion, whether or not two offices are incompatible will depend .- upon the responsibilities of each of the offices and their relationship. A city with questions may wish to contact the League for further information, (612) 281-1200 or (800) 925-1122, or secure a legal opinion from its city attorney or the attorney general. ~ Official Conflict of Interest 31 VI. Model forms . Form,} Model resolution to contract with a councilmember (under Minn. Stat. §§ 471.88, subd. 5 and 471.89, subd. 2) Whereas, the city, of . . desires to purchase the following (goods / merchandise / equivment / services): (describe in detaiD; And Whereas, (name of interested ofjiciaD is the (office held by interested ofjicial) of the city and will be financially interested in the contract; And Whereas, it is determined that the contract price of $ is as low as, or lower than, the price at which the goods can be obtained elsewhere at this time; And Whereas, the contract is not one that is required to be competitively bid; Now be it resolved by the city of , Minnesota that the city clerk is directed to make . the above-mentioned purchase on behalf of the city from (name of interested ofjicer) for a price of$ . It is also resolved that the mayor and city clerk are directed to issue an order-check to pay the claim on the filing of an affidavit of official interest by the interested official as required under Minn. Stat. § 471.89, This resolution is passed to comply with the provisions of Minn. Stat. §§ 471.87-.89. Passed by unanimous vote of the city council on ,19_. Mayor Clerk 32 League of Minnesota Cities ., Form 2 Model resolution ratifying contract in emergency (under Minn. Stat. §§ 471.88, subd. 5 and 471.89, subd. 2) . . Whereas, on ,19_, the city of purchased the following (goods / merchandise / equipment / service) from (name oj company or person with whom the contract was made): (specify the type Qf goods. merchandise. equivment. or services that were bought); . - And Whereas, (name of interested officiaD was the (office held bv interested officiaD on this date and was personally interested financially in the contract; And Whereas, the purchase could not be authorized in advance because of the following emergency: (specify emergency); And Whereas, the contract price of $ paid for such goods is as low, or lower than the price at which they could be obtained elsewhere at the time the purchase was made; ! And Whereas, the contract is not one that is required to be competitively bid; Now be it resolved by the city of , Minnesota that the above-mentioned purchase by the city and the claim of the vendor based on it are confmned and the mayor and clerk are directed to issue an order-check to pay the claim on the filing of an affidavit of official interest by the interested officer as required under Minn. Stat. § 471.89. This resolution is passed to comply with the provisions of Minn. Stat. §§ 471.87-.89. Passed by unanimous vote of the council on ,19_. Mayor Clerk - - : '-- .' , . Official Conflict of Interest 33 -- . Form 3 . Model affidavit of official interest in claim (under Minn. Stat. ~§ 471.88, slibd',5 and 471.89, subd. 3) .. ", STATE OF MINNESOTA ) COUNTY OF ) I, (Name of interested officer), being duly sworn state the following: 1) I am (office held by interested officiaD of the city of , Minnesota. 2) On , 19_, the following (goods / merchandise / equiDment / services) were furnished by (name of business or individual with whom the contract was made) to the city of : (sDeciry the type of goods. merchandise. equipment. or services that were Durchaseçf). 3) The contract price for such (goods / merchandise / equiDment / services) was $_ and their reasonable value was $ 4) At the time such (goods / merchandise / equipment / services) were furnished to the city, I . had the following personal fmancial interest in this contract: ( sDecify the nature of the Dersonal financial interest) To the best of my knowledge and belief the contract price is as low as, or lower than the price at which the (goods / merchandise / equipment / services) could be obtained from other sources. I further state that this affidavit constitutes a claim against the city for the contract price, that the claim is just and correct, and that no part of the claim has been paid. (signature of interested official) Subscribed and sworn to before me this day of _,19_. (signature of notary ) - - 34 League of Minnesota Cities [ -- - ~< ~,_t 8f!?~ ... ~"JIIi~-~Y - --~ TABLE OF CONTENTS -. Page Summary of Offering................................,.............,...............................................,.................... 2 Principal City Officials..,........................................,......................................................,......,...... 3 Issuer's Certificate... .........................,.......................,................................................,................. 4 Official Terms of Bond Sale .......... .... ........... ......... ............ ................... ................. ................. ..... 5-8 Authority and Security for the Bonds ..................................... ......... ....... .......... ......... ..... ....,........ 9 Purpose...... ...... .....,........................................,....................................................................."...... 9 Statutory Debt Limit...........................,.;...................................................................................... 10 No Continuing Disclosure .........................................................,................................................. 11 Estimated Source and Application of Funds .................................. ....... ................ ....... ............... 11 Future Financing............ .................. .......................................,...... .....,....,....,.............................. 12 Bond Rating........................................................................................................,........................ 12 Litigation................................................,.................,................... .... ,................................. .......... 12 . Certification.. .......................................... ..................................................................................... 12 Legality..... .... .... .......................... .............................' ..................... ...........................,........,.,....... 12 Book -Entry Only System............................................................................................................. 13 Tax Exemption............................................................................................................................. 14 Other Federal Tax Considerations ....... ............... ..........................................................,.............. 14 - 15 City of 81. Joseph (General Information).................................................................... .......... ....... 16 - 21 Minnesota Valuations; Property Tax Classifications .................................................................. 22 - 24 City of S1. Joseph (Economic and Financial Information) ........................................................... 25 - 32 Summary of Debt and Debt Statistics....... ..... .............. ................................................................ 33 Worksheet .................................................................................................;.................................. 34 Proposal Form............. ............ ......... ...... ........................... .............. ............ ................................. 36 Appendix A - Proposed Form of Legal Opinion - Appendix B- City's Financial Report ........ SUMMARY OF OFFERING $810,000 . GENERAL OBLfGA TION IMPROVEMENT BONDS OF 2001 (Book-Entry Only) AMOUNT - $810,000. ISSUER - City of St. Joseph, Minnesota (the" City"). SALE DATE - Thursday, August 16, 2001. OPENING - 11:00 AM. Central Time, atJuran & Moody, a division of Miller Johnson Steichen Kinnard, Inc., 1100 Minnesota World Trade Center, 30 East Seventh Street, St Paul, Minnesota 55101-4901, telephone: (651) 224-1500 or (800) 950-4666. AWARD - 7:00 p.m., Central Time, at the St. Joseph City Hall, 21 - 1 st A venue Northwest, St. Joseph, Minnesota 56374. TYPE OF ISSUE - General Obligation Improvement Bonds of 2001 (the "Bonds"). See Authority and Security for the Bomb; and Estima~ed Source and Application of Funds herein for additional information. SECURITY & PURPOSE - The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475 and are payable primarily from special assessments against all benefitted property. The full faith and credit of the City is pledged to their payment and the City has validly obligated itself to levy additional ad valorem taxes in the event of any deficiency in the Debt Service Account established for this issue. Taxes will be levied upon all of the taxable property within the City and without limitation of amount. Interest is not includable in the gross in- come of the recipient for purposes of United States income tax or the State of Minnesota income tax (other than Minnesota corporate excise taxes measured by income) according to present Federal and Minnesota laws, regulations, rulings and decisions. Proceeds of the Bonds will be used to provide moneys for the fie nancing of assessable improvements within the City including but not limited to streets, sanitary sewer, wa- ter line & main extensions, storm sewer, sidewalks and curb & gutter. See Estimated Source and Application of Funds herein for additional information. DATE OF ISSUE - September 1,2001. INTEREST PAYABLE DATES - June 1,2002, and semiannually thereafter on December 1 and June 1 and to registered owners of the Bonds appearing of record in the bond register as of the close of business on the fifteenth (15th) day (whether or not a business day) of the immediately preceding month. . DENOMINATIONS - $5,000. MATURITIES· 12/01/02 $160,000 12/01/03 $160,000 12/01/04 $160,000 12/01/05 $165,000 12/01/06 $165,000 AVERAGE MATURITY -3.26852 years. REDEMPTION FEATURE -All Bonds are without the option of prepayment. BOOK-ENTRY SYSTEM - The Bonds will be issued as fully registered Bonds and, when issued, will be registered in the name of Cede & Co., as nominee of the Depository Trust Company, New York, New York, to which principal and interest payments on the Bonds will be made. Individual purchases will be made in book-entry form only, in the principal amount of $5,000 or any whole multiple thereof. Purchasers of Bonds will not receive physical delivery of bonds. PAYING AGENTIREGlSTRAR . U.S. Bank Trust National Association, Sl Paul, Minnesota. METHOD OF SALE - Sealed bids only, accompanied by a good faith deposit in the amount of $16,200 at a price of not less than $797,040 plus accrued interest. See Official Terms of Bond Sale herein for additional information. TAX DESIGNATIONS - NOT Private Activity Bonds· These Bonds are not" private activity bonds" as defined in §141 of the Internal Revenue Code of 1986, as amended (the Code). Qualified Tax-Exempt Obligations· The City will designate these Bonds "qualified tax-exempt obligations" for purposes of §265(b)(3) of the Code. LEGAL OPINION· Briggs and Morgan, Professional Association, Sl Paul and Minneapolis, Minnesota (the" Bond Counsel"). RATING - St. Joseph currently has a general obligation bond rating of" Baa2" assigned by Moody's Investors Service. The City will not apply to Moody's for a rating on this issue. ESTIMATED CLOSING DATE - September 13,2001. - PRIMARY CONTACT - Judy Weyrens, City Administrator/Clerk-Treasurer, (320) 363-7201. ,.... Monte Eastvold, Vice President, Juran & Moody, (651) 224-1500 or (800) 950-4666. -2- CITY OF ST. JOSEPH II PRINCIPAL CITY OFFICIALS Elected City Officials City Council Name Position Term Expires \, Larry Hosch Mayor 12/31/01 Cory Ehlert Council Member 12/31/01 1 > Bob Loso Council Member 12/31/01 Alan Rassier Council Member 12/31/03 J Kyle Schneider Council Member 12/31/03 Appointed . Officials . Judy Weyrens City Administrator/Clerk-Treasurer VACANT Finance Director VACANT Economic Development Director Rajkowski Hansmeier Ltd. - John H. Scherer City Attorney Short Elliot Hendrickson & Associates - Joe Bettendorf City Engineer Bond Counsel Briggs and Morgan, Professional Association St. Paul and Minneapolis, Minnesota j - Underwriter ~- Juran & Moody A division of Miller Johnson Steichen Kinnard. Inc. St. Paul, Minnesota -3- ISSUER'S CERTIFICATE The City of St. Joseph has retained the £inn of Juran & Moody, St. Paul, Minnesota, to serve as fman- " cial advisor with respect to the securities being offered in this Official Statement. All statements con- tained herein, while not guaranteed, have been compiled from sources believed to be reliable in all material respects. Financial statements of the City are audited annually by an independent finn of certified public ac- countants. Excerpts from the financial report for the year ended December 31,2000, along with com- parative totals for the year ended December 31,1999, are included in this Official Statement and com- plete financial statements are available for inspection at the St. Joseph City Hall as well as at the St. Paul office of Juran & Moody. I The City of St. Joseph has always promptly met all payments of principal and interest on its indebted- ness when due. I . NO FINAL OFFICIAL STATEMENT WILL BE PREPARED. THE ISSUER WILL PROVIDE THE SUCCESSFUL UNDERWRITER WITH AN ADDENDUM THA T TOGETHER WITH THIS PRELIMINARY OFFICIAL STA TEMENT WILL BE DEEMED THE FINAL OFFICIAL STA TEMENT BY THE ISSUER. - - THE DATE OF THIS OFFICIAL STATEMENT IS AUGUST 1,2001. -4- 1 J - ..... OFFICIAL TERMS OF BOND SALE 1 $810,000 GENERAL OBLIGATION Th1PROVEMENT BONDS OF 2001 J CITY OF ST. JOSEPH STEARNS COUNTY MINNESOTA (Book Entry Only) I NOTICE IS HEREBY GIVEN that these bonds will be offered for sale according to the following terms: TTh1E AND PLACE: Sealed proposals will be opened by the City Administrator- Clerk, or designee, on Thursday, August 16,2001, at 11:00 AM., Central Time, at the offices of Juran & Moody, 1100 Minnesota World Trade Center, 30 East Seventh Street, in . St. Paul, Minnesota 55101-2091. Consideration ofthe -- --._- proposals for award of the sale will be by the Çity Coun.~l at its' meeting -in the St. Joseph City Hall beginning at 7:00 P .M, on the same day. 1 BOOK ENTRY SYSTEM: The bonds will be issued by means of a book entry system with no physical distribution of bond certificates made to the public. The bonds will be issued iIi fully registered form and one bond certificate, representing the aggregate principal amount of the bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the bonds. Individual purchases of the bonds may be made inthe ¡ principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records ofDTC and its participants. Principal and interest are payable by the Issuer through U.S. Bank Trust National Association, inStPaul, Minnesota (the "Registrar") to DTC or its nominee as registered owner of ~ the bonds. Transfer of principal and interest payments to participantsofDTC will be the responsibility ofDTC; - transfer of principal and interest payments to· beneficial owners by participants will be the responsibility of such - 1308285vl -5- ,~ participants and other nominees of beneficial owners. The . successful proposal maker, as a condition of delivery of the bonds, will be required to deposit the bond certificates with DTC. The Issuer will pay reasonable and customary charges for the services of the Registrar. DATE OF ORIGINAL ISSUE OF BONDS: September 1, 2001. PURPOSE: F or the purpose of providing money to finance various ( / , improvements within the City. INTEREST PAYMENTS: June 1, 2002, and semiannually thereafter on June 1 and December 1 to registered owners of the bonds appearing of record in the bond register as of the close of business on the fifteenth (15th) day (whether or not a business day) of the immediately preceding month. MATURITIES: December 1 in each of the years and amounts as follows: Year Amount 2002-2004 $160,000 -. 2005-2006 . __165,000 . All dates are inclusive. Proposals for the bonds may contain a maturity schedule providing for any combination of serial bonds and tenn bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemption in each year confonns to the maturity schedule set forth above. NO REDEMPTION: All Bonds are without the option of prepayment. CUSIP NUMBERS: If the bonds qualify for assignment ofCUSIP numbers such numbers will be printed on the bonds, but neither the \ failure to print such numbers on any bond nor any error with respect thereto shall constitute cause for a failure or refusal by the Purchaser thereof to accept delivery of and pay for the bonds in accordance with terms of the purchase contract. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid , by the Purchaser. - 130828Svl - -6- \ J . DELIVERY: Forty days after award subject to approving legal opinion ~ of Briggs and Morgan, Professional Association, of St. Paul and Minneapolis, Minnesota. Legal opinion will be paid by the Issuer and delivery wiU be anywhere in the continental United States without cost to the Purchaser at DTC. . TYPE OF PROPOSAL: Sealed proposals of not less than $797,040 and accrued interest on the principal sum of$810,000 :ITom date of original issue of the bond.s to date of delivery must be filed with the undersigned prior to the time of sale. Proposals must be unconditional except as to legality. A certified or cashier's check (the "Depositll) in the amount of$16,200, payable to the order of the Administrator-Clerk of the Issuer, or a Financial Surety Bond complying with the provisions below, must accompany each proposal, to be forfeited as liquidated damages if proposal maker fails to comply with accepted proposal. Proposals for the bonds / should be delivered to Juran & Moody, and addressed to: Judy Weyrens Administrator-Clerk St. Joseph City Hall . 21 1st A venue Northwest St. Joseph, Minnesota 56374-0668 If a Financial Surety Bond is used, it must be :ITom an ) insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the Issuer. Such bond must be submitted to Juran & Moody, prior to the , opening of the proposals. The Financial Surety Bond must identify each proposal maker whose Deposit is guaranteed by such Financial Surety Bond. If the bonds are awarded to a proposal maker using a Financial Surety Bond, then that í purchaser is required to submit its Deposit to Juran & Moody in the form of a certified or cashier's check or wire transfer as instructed by Juran & Moody not later than 3 :30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the Issuer to satisfy the Deposit requirement. The Issuer will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the } purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount win be retained by the - Issuer. . No proposal can be withdrawn· after the time set· for - receiving proposals unless the meeting of the Issuer 1308285vl -7- scheduled for award of the bonds is adjourned, recessed, or . continued to another date without award of the bonds having been made. RATES: All rates must be in integral multiples of 1I20th or 1/8th of 1 %. No limitation is placed upon the number of rates which may be used. All bonds of the same maturity must bear a single uniform rate from date of issue to maturity. INFORMATION FROM The successful purchaser will be required to provide, PURCHASER: in a timely manner, certain infonnation relating to the initial offering price of the bonds necessary to compute the yield on the bonds pursuant to the provisions of the Internal Revenue Code of 1986, as amended. QUALIFIED TAX The Issuer will designate the bonds as qualified tax EXENIPT OBLIGATIONS: exempt obligations for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. The Issuer reserves the right to reject any and all proposals, to waive informalities and to adjourn the sale. Dated: July 19, 2001. -_. - . - BY ORDER OF THE CITY COUNCIL . Is! Judy Weyrens City Administrator-Clerk Additional infonnation ! may be obtained from: JURAN & MOODY 1100 Minnesota Wodd Trade Center 30 East Seventh Street St PaUl, Minnesota 55101-2091 Telephone No,: (651) 224-1500 \ - 130828Svl - -8- AUTHORITY AND SECURITY FOR THE BONDS . The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. At closing, Bond ....,. Counsel will render an opinion that the Bonds are valid and binding general obligations of the City and are payable primarily from special assessments against all benefitted property. The full faith and credit of the City is pledged to their payment and the City has validly obligated itself to levy additional ad valorem taxes in the event of any deficiency in the Debt Service Account established for this issue. Taxes will be levied upon all of the taxable property within the City and without limitation of amount. Interest is excluded from gross income for United States income tax purposes and is excluded, to the same extent, from both gross and taxable net income for State of Minnesota income tax purposes (other than Minnesota franchise taxes measured by income and imposed on corporations and financial insti- tutions.) Interest is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations or the Minnesota alternative minimum tax applicable to indi- viduals, estates or trusts. However, for the purposes of computing the federal alternative minimum tax imposed on corporations, such interest is taken into account for the purpose of determining adjusted current earnings. No opinion will be expressed by Bond Counsel regarding other state or federal conse- ; quences caused by the receipt or accrual of interest on the Bonds or arising with respect to ownership of the Bonds. See Appendix A - Proposed Form of Legal Opinion. PURPOSE The purpose of the Bonds is to provide moneys for the financing of assessable improvements within the City including but not limited to streets, sanitary sewer, water line & main extensions, storm sewer, sidewalks and curb & gutter. . ) \ ì , 1.- - j -9- STATUTORY DEBT LlMITI Minnesota Statutes, Section 475.53, states that a city may not incur or be subject to a net debt in excess . of two percent (2%) of its estimated market value. Net debt is, with limited exceptions, debt paid solely from ad valorem taxes. Computation of Legal Debt Margin as of July 17,2001, plus this issue: 2000/2001 Estimated Market Value $ 98,697,300 Times 2% of Estimated Market Value x .02 Statutory Debt Limit $ 1.973.946 Amount of debt applicable to debt limit: Total Bonded Debt (includes this issue) $ 6,100,000 Less: General Obligation Improvement Bonds (includes this issue) ( 4,045,000) General Obligation Water Revenue Bonds ( 930.000) Total debt applicable to debt limit $ 1.125.000 Legal debt margin $ 848.946 . ~ ( ¡ -" - 1 Effective June 2, 1997, and pursuant to Laws of Minnesota for 1997, Chapter 231, Section 33, any lease revenue or public project revenue bond issues/agreements over $999,999 are subject to the statutory debt limit. Lease revenue or public project revenue bond issues/agreements under $999,999 are not subject to the statutory debt limit. -10- NO CONTINUING DISCLOSURE . The Securities and Exchange Commission (the" SEC")has promulgated certain amendments to Rule 15c2-12 under the Securities Exchange Act of 1934 (17 C.F.R. §240.15c2-12) (the "Rule") that make it unlawful for an underwriter to participate in the primary offering of municipal securities in a princi- pal amount of $1,000,000 or more unless, before submitting a bid or entering into a purchase contract for the Bonds, it has reasonably determined that the issuer or an obligated person has undertaken in writing for the benefit of the bondholders to provide certain disclosure information to prescribed in- formation repositories on a continuing basis.or unless and to the extent the offering is exempt from the requirements of the Rule. The principal amount of the Bonds is less than $1,000,000. The City hereby '¡ represents that it has not issued before the date of issuance of the Bonds, and that it reasonably expects that it will not issue after the date of issuance of the Bonds, other Bonds of the City of substantially the same security and providing financing for the same general purpose or purposes as the Bonds. Conse- quently, this Board hereby fmds that the Rule is inapplicable to the Bonds, because the aggregate prin- cipal amount of the Bonds and any other bond issue to be integrated with the Bonds thereunder is less than $1,000,000. Therefore, the City will not enter into any undertaking to provide continuing disclo- sure of any kind with respect to the Bonds. ESTIMATED SOURCE AND APPLICATION OF FUNDS 1. Source of Funds J General Obligation Improvement Bonds of2001 $810.000 II. Application of Funds Estimated Costs to be Financed: . Improvement Projects $599,139 Lift Station Power 30,000 Engineering & Legal 95,862 Contingency Allowance 29.957 Total Estimated Cost of Projects $754,958 Add Estimated Issuance Costs: [Bond counsel, fmancial advisory fee, and $ 14,625 paying agent! registration (one time fee)] Capitalized Interest{lO months) 28,363 , Discount Factor (1.600% of par) 12.960 Total Estimated Issuance Costs 55.948 Subtotal $810,906 Less Estimated Contribution from City ( 906) Par Amount of Bond Issue $810.000 - - -11- FUTURE FINANCING The City does not anticipate the need to finance any capital improvements with the issuance of general obligation bonds within the next two months. . BOND RATING The City of St. Joseph currently has a general obligation bond rating of" Baa2" assigned by Moody's Investors Service. The City will not apply to Moody's for a rating on this issue. LlTIGA TION On May 4, 2001, the City Attorney, Rajkowski Hansmeier Ltd., John H. Scherer, indicated that no liti- gation is pending or threatened that would jeopardize the creditworthiness of the City or Authority. Claims or other actions in which the City is a defendant are covered by insurance or are of insignificant amounts. . CERTIFICATION The City will furnish, upon request, a statement to the effect that this Official Statement to the best of their knowledge and belief, as of the date of sale and the date of delivery, is true and correct in all ma- terial respects, and does not contain any untrue statements of a material fact or omit to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. LEGALITY Legal matters incident to the authorization and issuance of the Bonds are subject to the approving opinion of Bond Counsel, as to validity and tax exemption. A copy of such opinion will be available at the time of the delivery of the Bonds. See Appendix A - Proposed Form of Legal Opinion. - Bond Counsel has not participated in the preparation of this Official Statement and is not passing upon its accuracy, completeness or sufficiency. Bond Counsel has not examined, nor attempted to examine, - or verify, any of the fmancial or statistical statements or data contained in this Official Statement and will express no opinion with respect thereto. -12- BOOK-ENTRY ONL Y SYSTEM .. The Depository Trust Company (the "DTC"), New York, New York, will act as securities depository for the Obligations. Upon issuance of the Obligations, one fully registered Obligation will be registered -~ in the name of Cede & Co., as nominee for DTC, for each maturity of the Obligations as set forth on the cover page hereof, each in the aggregate principal amount of such maturity. So long as Cede & Co. is the registered owner of the Obligations, references herein to the holders of the Obligations or regis- tered owners of the Obligations shall mean Cede & Co. and shall not mean the Beneficial Owners of the Obligations. DTC is a limited purpose trust company organized under the laws of the State of New York, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code and a "clearing agency" registered pursuant to the provisions of § 17 A of the Secu- rities Exchange Act of 1934, as amended. DTC was created to hold securities of its participants (the "DTC Participants") and to facilitate the clearance and settlement of securities transactions among DTC Participants in such securities through electronic book-entry changes in accounts of the DTC Participants, thereby eliminating the need for physical movement of securities certificates. DTC Par- ticipants include securities brokers and dealers, banks, trust companies, clearing corporations, and cer- tain other organizations, some of whom (and/or their representatives) own DTC. Access to the DTC system is also available to others such as banks, brokers, dealers, and trust companies that clear through or maintain a custodial relationship with DTC Participants, either directly or indirectly (the "Indirect Participants"). The Interest of each of the Beneficial Owners of the Obligations will be recorded through the records of a DTC Participant or Indirect Participant. Each DTC Participant will receive a credit balance on the records ofDTC. Individual purchases will be made in the denomination of $5,000 or any whole multi- ple thereof. Beneficial owners of Obligations will receive a written confirmation of their purchases . providing details of the Obligations acquired. Beneficial owners of Obligations will not receive certifi- cates representing their ownership interest in the Obligations, except as specifically provided below. Transfers of beneficial ownership interest in the Obligations will be accomplished by book entries made by DTC and, in turn, by the DTC Participants who act on behalf of the Indirect Participants and the Beneficial Owners of Obligations. For every transfer and exchange of beneficial ownership of Ob- ligations, the beneficial owner may be charged a sum sufficient to cover any tax, fee or other govern- mental charge that may be imposed in'relation thereto. Payments of principal and interest on the Bonds will be made to DTC or its nominee, Cede & Co., as registered owner of the Bonds. Upon receipt of moneys, DTC's current practice is to immediately credit the accounts of the DTC Participants in accordance with their respective holdings shown on the records of DTC. Payments by DTC Participants and Indirect Participants to Beneficial Owners will be governed by standing instructions 'and customary practices such as those which are now the case for municipal, securities held' in bearer form or registered in "street name" for the accounts of customers and will be the responsibility of such DTC Participants or Indirect Participants and not the responsibil- ity ofDTC or the Issuer, subject to any statutory and regulatory requirements as may be in effect from . time to time. - - -13- TAX EXEMPTION At closing Briggs and Morgan, Professional Association, Bond Counsel, will render an opinion that, at .. the time of their issuance and delivery to the original purchaser, under present federal and State of ..... Minnesota laws, regulations, rulings and decisions (which excludes any pending legislation which may have a retroactive effect), the interest on each Bond is excluded from gross income for purposes of United States income tax and is excluded, to the same extent, in computing both gross income and tax- able net income for purposes of State of Minnesota income tax (other than Minnesota franchise taxes measured by income and imposed on corporations and financial institutions), and that interest on the Bonds is not an item of tax preference for purposes of computing the federal alternative minimum tax imposed on individuals and corporations or the Minnesota alternative minimum tax applicable to indi- viduals, estates or trusts; provided that interest on the Bonds is subject to federal income taxation to the extent it is included as part of adjusted current earnings for purposes of computing the alternative minimum tax imposed on certain corporations. No opinion will be expressed by Bond Counsel re- garding other federal or state tax consequences caused by the receipt or accrual of interest on the Bonds or arising with respect to ownership of the Bonds. Preservation of the exclusion of interest on the Bonds from federal gross income and state gross and taxable net income, however, depends upon com- pliance by the City with all requirements of the Internal Revenue Code of 1986, as amended, (The " Code") that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be (or continue to be) excluded from federal gross income and state gross and taxable net income. The City will covenant to comply with requirements necessary under the Code to establish and main- tain the Bonds as tax-exempt under Section 1 03 thereof, including without limitation, requirements re- lating to temporary periods for investments and limitations on amounts invested at a yield greater than the yield on the Bonds. OTHER FEDERAL TAX CONSIDERATIONS Property and Casualty Insurance Companies . Property and casualty insurance companies are required to reduce the amount of their loss reserve de- duction by 15% of the amount of tax-exempt interest received or accrued during the taxable year on certain obligations acquired after August 7, 1986, including interest on the Bonds. Foreign Insurance Companies Foreign companies carrying on an insurance business in the United States are subject to a tax on in- come which is effectively connected with their conduct of any trade or business in the United States, including "net investment income." Net investment income includes tax-exempt interest such as inter- est on the Bonds. Branch Profits Tax A foreign corporation is subject to a branch profits tax equal to 30% of the "dividend equivalent amount" for the taxable year. The "dividend equivalent amount" is the foreign corporation's" effec- tively connected earnings and profits," adjusted for increase or decrease in "U.S. net equity." A branch's earnings and profits may include tax-exempt municipal bond interest, such as interest on the Bonds. Passive Investment Income of S Corporations Passive investment income, including interest on the Bonds, may be subject to federal income taxation under Section 1375 of the Code for an S corporation that has Subchapter C earnings and profits at the - close of the taxable year if more than 25% of the gross receipts of such S corporation is passive in- - vestment income. -14- General - . The preceding is not a comprehensive list of all federal tax consequences which may arise from the re- ceipt or accrual of interest on the Bonds. The receipt or accrual of interest on the Bonds may otherwise ~ affect the federal income tax (or Minnesota income tax or franchise tax) liability of the recipient based on the particular taxes to which the recipient is subject and the particular tax status of other items of in- come or deductions. All prospective purchasers of the Bonds are advised to consult their own tax advi- sors as to the tax consequences of, or tax considerations for, purchasing or holding the Bonds. Qualified Tax-Exempt Obligations The City will designate the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b )(3) of the Code relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obliga- tions. "Qualified tax-exempt obligations" are treated as acquired by a financial institution before August 8, 1986. Interest allocable to such obligations remains subject to the 20% disallowance under prior law. . (Remainder of page left intentionally blank) - -- -15- CITY OF ST. JOSEPH GENERAL INFORMATION . Access and Transportation The City of St. Joseph, situated in Stearns County, is located in the central portion of Minnesota. The City lies approximately 8 miles northwest of St. Cloud, 70 miles northwest of the Minneapolis-St. Paul Metropolitan Area and 160 miles southwest of Duluth. Access is provided via County Roads 2 and 75. In addition, Interstate Highway 94 lies just 1 mile west of the City, U.S. Highway 10 lies 10 miles east of the City, and State Highways 15 and 23 lie 8 and 5 miles south of the City, respectively. Principal truck lines serving the City include Scherer & Sons Trucking as well as Anderson Trucking. Burlington Northern Santa Fe Railroad provides rail service to the City. There are approximately sev- enteen miles of paved streets within the City's corporate limits. Tax Base For taxes collectable in 2001, the tax breakdown is 54.31 % residential homestead (non-agriculture), .59% agricultural, 26.83% commercial & industrial, .70% public utility, .28% railroad operating property, 12.56% non-homestead residential, 1.54% other, and 3.19% personal property. Area 1,150 Acres . (1.797 Square Miles) Population 1970 Census 1,786 1980 Census 2,994 1990 Census 3,367 2001 Estimate 5,074 Municipal Facilities Revenue Producing Facilities: The Waterworks System has approximately 994 connections served by a 550,000 gallon elevated stor- age facility along with three municipal wells that have the capacity to pump 1,000 gallons per minute or 1,440,000 gallons per day. Average demand is 290,000 gallons per day while peak demand reaches 675,000 gallons per day. Total tap water hardness is 20 parts per million. l The 2000 audited operating revenues were $177,945 with the average charge per year per household and commercial at approximately $179. The Sewer System has approximately 1,085 connections served by a 13,000,000 gallon per day waste- water treatment facility along with two lift stations. The City became part of the St. Cloud Interceptor - System in 1986 and all wastewater is pumped to St. Cloud. Average demand is 9,500,000 gallons per day while peak demand reaches 11,000,000 gallons per day. -- The 2000 audited operating revenues were $238,184 with the average charge per year per connection at approximately $220. - 16- Refuse Collection Svstem. The City operates a waste management system for its refuse collection sys- tem. The 2000 audited operating revenues were $125,586 with net income before operating transfers of . $29,901. ....,.. Other Municipal Services: Fire & Rescue Department. The City currently has a 29-member volunteer fire department consisting of two various size pumper/ladder trucks, two tankers, one grass rig, one snowmobile with rescue sled, one emergency/rescue vehicle as well as other miscellaneous fire fighting and rescue equipment. Police Department. The City operates its own police department providing 24-hour coverage. Staff in- cludes one chief of police, one sergeant, five officers, four full-time and one part-time, and three re- serve officers. The city owns three fully equipped patrol cars, all fully computerized, as well as other miscellaneous equipment. All dispatching is provided by the Stearns County Sheriff's Department. Park and Recreational Facilities. The City currently operates four municipal parks encompassing ap- proximately 100 acres. Facilities include two tot lots, two baseball/softball fields, sheltered picnic areas with a fireplace, walking paths, wildlife areas, a camping area with ten electrical hookup sites, and general playground equipment. In addition, the City provides summer recreation programs for children of all ages with varied activities. The combination of these parks and facilities contain a complete rec- reation and park system throughout the City. City Government St. Joseph, organized on January 17, 1890, isa Minnesota Statutory City with an Optional Plan A form of government. It has a mayor elected at large for a two-year term and four council members also . elected at large for four-year terms. The professional staff is appointed and consists of a city adminis- trator, fmance director, economic development director, city attorney, and city engineer. The City recently revised its Comprehensive Plan that illustrates current land use within the City and the surrounding two-mile radius. The Plan includes Land Use Planning Goals and objectives including social, economic and transportation issues, as well as Projected Growth Areas outlining desired growth and statistical demographics. In addition, the City achieved Star City status that includes short term as well as long term goals. As a result, St. Joseph formed an Economic Development Authority and hired a full-time Economic Development Director. Further, the City and Township of St. Joseph have signed and adopted a joint merger/consolidation agreement that will consolidate the majority of St. Joseph Townshipwith the City of St. Joseph. The plan identifies annexation areas in 5, 10, 15 and 20-year increments. Employee Pension Programs The City employs twenty-five people, fifteen full-time, three part-time, and seven seasonaL The pensionplan covers fourteen of the City's employees as of December 31, 2000. The City participates' in contributory pension plans through the Public Employees Retirement Association (PERA) under Minnesota Statutes, Chapters, 353 and 356, which covers all full-time and certain part-time employees. PERA administers the Public Employees Retirement Fund (pERF) and the Public Employees Police and Fire Fund (PEPFF), which are cost sharing, multiple-employer retire- ment plans. This plan is state administered and is coordinated with the' Federal Social Security Retirement Plan (FICA) and employees are vested after three years of credited service. State statute re- quires the City to fund current service pension costas it accrues. Prior service cost is being amortized - over. a period of 40. years and is being funded .by payment determined as a percentage of gross wages - paid by all employers participating in the State Association. -17- The City's contributions to PERA for the past nine years have been as follows: Year Amount Year Amount . 2000 $41,862 1995 $30,826 ~ 1999 39,581 1994 25,964 1998 38,774 1993 25,803 1997 35,186 1992 22,534 1996 32,947 The volunteer firefighters of the City are eligible for pension benefits through membership in the St. Joseph Fire Relief Association organized under Minnesota Statutes, Chapter 69, and administered by a separate Board elected by the membership. This plan is funded by state aids as well as contribu- tions from the City of St. Joseph, St. Joseph Township and St. Wendell Township. The City is obli- gated to contribute to the Fund according to a fonnula that compares growth in the estimated pension liability to the annual estimated state aid and interest earnings of the pension fund. State statute re- quires this plan to fund current service cost as it accrues and prior service cost to be amortized over a period of ten years. Residential Development There are approximately 1,084 single-family homes and 244 multifamily units (112 structures) located within the City. In addition, there have been 37 single-family homes and two multiple dwellings con- structed within the past twelve months. The status of residential subdivisions constructed or planned within the past three years is as follows: Subdivision Total Number Number of Lots Remaining Lots . Name of Lots/Dwellings Comvleted Available Northland Five 54 Under construction 54 Pond View Six 67 Under construction 67 . Industrial Parkes) There is an approximate 165-acre industrial park located within the City with a capacity of 39 enter- prises. Currently there are 20 enterprises occupying the park, the larger of which include DBL Labs Inc., W. Gohman Construction Co., MCa Lens Crafting, Borgert Concrete, and Vic West Steel. The City installed utility services to the industrial park in 1999 in anticipation of further development. The City is in the process of developing the St. Joseph Industrial Park, a privately owned industrial park. The EDA Director is working with the current owner to market and sell lots. The park is being developed with utilities along with tax increment financing to qualified businesses. (Remainder of page left intentionally blank) - - -18- Commercial/Industrial Development . Building construction and commercial/industrial growth completed within the past three years has been as follows: Description Name Product/Service of Construction Autobody 20001 Automotive Repair New construction Borgert Concrete Concrete Products Plant addition Casey's General Store Gas/Convenience Store New construction D & D Welding Welding Facility addition First.State Bank of St. Joseph1 Financial Services New construction Individual Commercial Suites & Rental New construction Shroeder Sports Inc. Wholesale/Retail Sporting Equipment New construction Spring GreenI Lawn Service New construction Sunset 11anufacVwcing Metal Fabricating Plant addition Building Permits Building permits issued for the past ten years and a portion of the current year have been as follows: Commercial/ Industrial Residential Total Total Number of Number Number Permit I Year of Permits of Permits of Permits Valuation . 2001 (as of 05/31/01) N/A N/A N/A $ N/A 2000 5 64 69 8,718,600 1999 4 62 66 3,872,735 1998 15 85 100 6,558,780 1997 6 35 41 5,697,300 1996 0 27 27 4,386,375 1995 5 82 87 5,785,700 1994 6 85 91 11,192,000 1993 7 65 72 2,714,955 1992 5 48 53 1,817,857 1991 5 29 34 1,320,095 Financial Institutions Financial services are provided by Firs~ State . Bank of St. Joseph. Reported deposits as of December 31, 2000, were $40,111,000 as obtained from the latest edition (spring 2001) of the McFadden Upper Midwest Financial DirectoryTM. { - - I Building construction and commercial/industrial growth completed within the past twelve months. -19- Education St. Joseph is served by Independent School District No. 742, St. Cloud. The district operates eleven . elementary schools, two junior high schools, two senior high schools and one area learning center. Directly located within City limits is one elementary school, grades kindergarten through four. Combined enrollment at the sixteen schools for the 2000/2001 school year was approximately 10,635. In addition, there is one parochial school located within the City, St. Joseph Laboratory, which offers grades kindergarten through six. Further, the school is accredited by the Minnesota Nonpublic School Accrediting Association. Post secondary education is available at the following schools: Distance from School TYJ2g Location St. Joseph St. Cloud Technical College V ocationallTechnical St. Cloud, Minnesota 8 Miles St. Cloud Business College Business College St. Cloud, Minnesota 7 Miles St. Cloud Beauty School Beauty School St. Cloud, Minnesota 7 Miles St. Cloud State University State University St. Cloud, Minnesota 10 Miles College of St. Benedict Private College St. Joseph, Minnesota o Miles St. John's University Private University Collegeville, Minnesota 2 Miles Maior Employers The City has 22 retail or commercial enterprises in the downtown area employing an estimated 158 ) people. The following is a list of the thirteen largest employers within the City: . Number of Commercial Product/Service Emplovees College of St. Benedict Private College 450 DBL Labs Inc. Ophthalmic Goods 177 Convent of St. Benedict Monastery 102 W. Gohman Construction Co. Nonresidential Construction 45 MCO Lens Crafting Ophthalmic Goods 31 City of St. Josephl City Government 25 St. Joseph Laboratory Church/Private Education 23 Super America Gasoline Service Stations 21 Borgert Concrete Concrete Products 20 Vic West Steel Fabricated Structural Metal 20 First State Bank of St. Joseph Financial Services 18 St. Joe-Cold Spring Veterinarian Clinic Veterinary Clinic 15 Metro Plumbing & Heating Plumbing & Heating Contractor 13 \ - - 1 Constitutes fifteen full-time, three part-time, and seven seasonal employees. -20- Laraest Taxpavers . The following is a list of the ten largest taxpayers within the City as reported by Steams County: ~ Percent of 2000/2001 Real Property Estimated 2000/2001 To Net Market Net Tax Tax Capacity Name Service Value Capacity ($1.372.853)1 Northern States Power Co. Utility $1,454,100 $49,283 3.59% Individual Trust Apartments 1,927,200 46,253 3.37 Borgert Concrete Products Inc. Commercial 1,005,900 34,201 2.49 Meadowlark Apartments Apartments 844,600 20,271 1.48 DSG Enterprises Commercial 610,900 19,271 1.40 St. Joseph's Assisted Living Inc. Apartments 741,000 17,784 1.30 Individual Commercial 530,900 16,551 1.21 Individual Commercial 460,900 14,170 1.03 Individual Commercial 449,500 13,783 1.00 Triple K Partnership Commercial 360,300 10,750 .78 . (Remainder of page left intentionally blank) - - 1 Before tax increment adjustment -21- MINNESOTA VALUATIONS; PROPERTY TAX CLASSIFICATIONS Market Value . According to Minnesota Statutes, Chapter 273, all real property subject to taxation is to be appraised at maximum intervals of four years. All real property becoming taxable in any year is listed at its esti- mated market value on January 2 of that year. The estimated market value is the County Assessor's ap- praisal of the worth of the property. Indicated Market Value The Minnesota Department of Revenue conducts the Real Estate Sales Assessment Ratio Study to ac- complish equalization of property valuation in the State of Minnesota and to detennine the probable selling price of a property. The study is a three-year average of sale prices as related to the latest asses- sor's estimated market value. The indicated market value is detennined by dividing the estimated mar- ket value by the Sales Assessment Ratio for the city as determined by the Department of Revenue. Tax Cycle Minnesota local government ad valorem property taxes are extended and collected by the various counties within the state. The process begins in the fall of every year with the certification, to the county auditor, of all local taxing districts' property tax levies. Local tax rates are calculated by divid- ing each taxing district's levy by its net tax capacity. One percentage point of local tax rate represents one dollar of tax per $100 net tax capacity. A list of taxes due is then prepared by the county auditor and turned over to the county treasurer on or before the first Monday in January. The county treasurer is responsible for collecting all property taxes within the county. Real estate tax statements are to be mailed out no later than January 31 and personal property tax statements no later than February 15. The due dates for payment of real property taxes are one-half on or before May 15 . and one-half on or before October 15. Personal property taxes become due one-half on or before February 28 and one-half on or before June 30. Following each settlement (March 5, June 5, and November 5 of each year), the county treasurer must redistribute property tax revenues to the local taxing districts in proportion to their tax capacity ratios. Delinquent property taxes are penalized at various rates depending on the type of property and the length of delinquency. Tax Credits Prior to 1990, taxes on homestead residential and agricultural property were reduced by a direct sub- sidy to the taxpayer. Beginning in 1990, the homestead credit has been eliminated. The state subsidy is now accomplished through lower class rates to homesteaded classifications of property and increased state aids paid directly to local taxing districts. This new system is intended to have generally the same impact as the fonner homestead credit system. Tax Levies for General Obligation Bonds (Minnesota Statutes, Section 475.61) The governing body of any municipality issuing general obligations shall, prior to delivery of the obli- gations, levy by resolution a direct general ad valorem tax upon all taxable property in the municipality to be spread upon the tax rolls for each year of the tenn of the obligations. The tax levies for all years shall be specified and such that if collected in full they, together with estimated collections of special assessments and other revenues pledged for the payment of said obligations, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the - obligations. Such resolution shall irrevocably appropriate the taxes so levied and any special assess- ments or other revenues so pledged to the municipality's debt service fund or a special debt service - fund or account created for the payment of one or more issues of obligations. -22- The governing body may, at its discretion, at any time after the obligation have been authorized, adopt a resolution levying only a portion of such taxes, to be filed, assessed, extended, collected and remitted . as hereinafter provided, and the amount or amounts therein levied shall be credited against the tax re- quired to be levied prior to delivery of the obligations. The recording officer of the municipality shall file in the office of the county auditor of each county in which any part of the municipality is located a certified copy of the resolution, together with full in- formation regarding the obligations for which the tax is levied. No further action by the municipality is required to authorize the extension, assessment and collection of the tax, but the municipality's liability on the obligations is not limited thereto and its governing body shall levy and cause to be extended, assessed and collected any additional taxes found necessary for full payment of the principal and inter- est. The auditor shall annually assess and extend upon the tax rolls the amount specified for such year in the resolution, unless the amount has been reduced as authorized below or, if the municipality is lo- cated in more than one county, the portion thereof that bears the same ratio to the whole amount as the tax capacity value of taxable property in that part of the municipality located in his county bears to the tax capacity value of all taxable property in the municipality. Tax levies so made and filed shall be irrevocable, except that if the governing body in any year makes an irrevocable appropriation to the debt service fund of moneys actually on hand or if there is on hand any excess amount in the debt service fund, the recording officer may certify to the county auditor the fact and amount thereof and the auditor shall reduce by the amount so certified the amount otherwise to be included in the rolls next thereafter prepared. All such taxes shall be collected and remitted to the municipality by the county treasurer as other taxes are collected and remitted, and shall be used only for payment of the obligations on account of that levied or to repay advances from other funds used for such payments, except that any surplus remain- ing in the debt service fund when the obligations and interest thereon are paid may be appropriated to . any other general purpose by the municipality. Class Rate The factors (class rates) for converting estimated market value to net tax capacity represent a basic element of the State's property tax relief system and are therefore subject to annual revisions by the State Legislature. (Remainder of page left intentionally blank) - - -23- The following is a partial summary of these factors: Property Tax Classifications . Class Rate Schedule 1997/ 1998/ 1999/ 2000/ 2001/ Class TV/Je of Pro/Jertv 1998 1999 2000 2001 2002 la Residential Homestead Under $72,000 Over $72,001 Under $75,000 1.000% 1.000% Over $75,001 1.850 1.700 Under $76,000 1.000% 1.000% 1.000% $76,001-$500,000 1.650 1.650 1.000 Over $500,00 I 1.650 1.650 1.250 2a Agricultural Land & Buildings Homestead: Under $115,000 .400 .350 .350 .350 .550 $115,000-$600,000 Under 320 Acres .900 .800 .800 .800 .550 Over 320 Acres 1.400 1.250 .800 .800 .550 Over $600,00 I Under 320 Acres .900 .800 1.200 1.200 1.000 Over 320 Acres 1.400 1.250 1.200 1.200 1.000 2b Non-Homestead Agricultural Land 1.400 1.250 1.200 1.200 1.200 3a CommerciallIndustrial Public Utility Under $100,000 Over $100,001 Under $150,000 2.700 2.450 2.400 2.400 1.500 . Over $150,001 4.000 3.500 3.400 3.400 2.000 Residential Non-Homestead 4d Apartments: 1 to 3 units 1 Unit 1.900 1.000 1.000 1.000 .900 2 or 3 units 2.000 1.000 1.000 1.000 .900 4a 4 or more units 2.900 2.500 2.400 2.400 1.800 Small cities less than 5,000 population with 4 or more units 2.300 2.150 2.150 2.150 1.800 4bb(2) Under $75,000 1.900 1.250 Over $75,001 2.100 1.700 Under $76,000 1.200 1.200 1.000 $76,001-$500,000 1.650 1.650 1.000 Over $500,001 1.650 1.650 1.250 4b(4) Vacant Land 2.100 1.700 1.650 1.650 1.500 4c(1) Seasonal Recreational/Commercial Non-Commercial: Under $75,000 1.400 1.250 Over $75,001 2.500 2.200 Under $76,000 1.200 1.200 1.000 $76,001-$500,000 1.650 1.650 1.000 Over $500,001 1.650 1.650 1.250 Resorts: lc Homestead Under $500,000 1.000 1.000 1.000 1.000 1.000 Over $500,000 1.000 1.000 1.000 1.000 1.000 4c(2) Seasonal Under $500,000 2.100 1.800 1.650 1.650 1.000 - Over $500,000 2.100 1.800 1.650 1.650 1.250 - -24- CITY OF ST. JOSEPH . - ECONOMIC AND FINANCIAL INFORMATION Valuations Estimated Net Tax Market Value Capacity 2000/2001 2000/2001 Real Property $97,321,700 $1,372,853 Personal Property 1,375,600 45,270 Less Tax Increment Deduction ( 486) Total Valuation $98.697.300 $1.417.637 Market Value after Sales Assessment Ratio The Minnesota Department of Revenue conducts the Real Estate Sales Assessment Ratio Study to ac- complish equalization of property valuations in the State and to determine the probable selling price of a property. The Study is a three-year average of sale prices as related to the latest assessor's market value. The latest Sales Assessment Ratio (1999) in St. Joseph is 90.2% meaning the County Auditor's recorded real property market value of $97,321,700 is 90.2% of the probable resale market value. We have made the following computations in deriving the market value figure used in the "Summary of . Debt and Debt Statistics." $ 97,321,700 County Auditor' s recorded real property market value. 90.2% Latest Composite Ratio from the Real Estate Sales Assessment Ratio Study of the Minnesota Department of Revenue. = $ 107,895,455 Indicated market value of real property. + 1.375.600 Personal property. = $109.271.055 Indicated market value of real and personal property used in "Summary of Debt and Debt Statistics." - - -25- Sales Assessment Ratio History The Sales Assessment Ratio for the City of St. Joseph over the past ten years have been as follows!: . Year Ratio Year Ratio 2000 N/A% 1995 91.4% 1999 90.2 1994 92.6 1998 89.2 1993 92.8 1997 90.7 1992 90.1 1996 90.3 1991 89.0 Valuation Trends (Real and Personal Property) Valuation trends for the City of St. Joseph over the past ten years have been as follows: Net Tax Net Tax Capacity Capacity Levy Year! Indicated Estimated Before Tax After Tax Collection Year Market Value Market Value Increments Increments 2000/2001 $109,271,055 $98,697,300 $1,418,123 $1,417,637 1999/2000 97,950,303 87,514,500 1,234,989 1,234,635 1998/1999 87,072,654 77,808,700 1,089,251 1,089,251 1997/1998 77,892,338 69,615,700 1,065,687 1,063,403 1996/1997 71,277,331 64,758,400 1,101,470 1,098,843 1995/1996 67,904,520 61,428,100 1,048,424 1,045,798 1994/1995 60,714,661 55,493,200 940,486 940,486 . 1993/1994 52,537,473 48,649,700 825,087 825,087 1992/1993 46,080,062 42,821,100 700,198 700,198 1991/1992 43,056,194 38,868,000 668,469 668,469 Breakdown of Valuations 2000/2001 Estimated Market Value, Real and Personal Property: Real Property2 $97,321,700 98.61 % Personal Property 1.375.600 1.39 Total $98,697 300 100.00% 2000/2001 Net Tax Capacity, Real and Personal Property (before tax increment deduction): Residential Homestead $ 770,181 54.31 % Agricultural 8,322 .59 Commercial & Industrial 380,494 26.83 Public Utility 9,911 .70 Railroad Operating Property 3,924 .28 Non-Homestead Residential 178,148 12.56 Other 21,873 1.54 Personal Property 45.270 3.19 Total $ 1.418.123 100.00% - - I The Sales Assessment Ratio for 2000 will not be available until late July to mid August from the Minnesota Department of Revenue, Property Tax Division. 2 Breakdown of Estimated Market Value for the City of St. Joseph is not available from Stearns County. -26- Net Tax Capacity Rate History . The following are tak rates for the City of 81. Joseph for the past five-assessable/collection years: ...... 1996/97 1997/98 1998/99 1999/00 2000/01 Net Tax Net Tax Net Tax Net Tax Net Tax Levy Year! Capacity Capacity Capacity Capacity Capacity Collection Year Rates Rates Rates Rates Rates County of Stearns 36.388% 39.024% 42.122% 42.841 % 42.417% City of St. Joseph 35.177 42.334 42.786 42.433 46.718 ISD No. 742, S1. Cloud 50.320 50.749 53.279 52.737 47.565 Sauk River Watershed .209 .279 .230 .567 .365 Stearns County HRA .270 .304 ,606 .568 .497 Totals 122.364 132.690 139.023 139.146 137.562 Tax Levies and Collections Levy Year! 1996/ 1997/ 1998/ 1999/ Collection Year 1997 1998 1999 2000 Original Gross Tax Levy $386,560 $450,429 $466,047 $523,893 Property Tax Creditsl N/A N/A N/A N/A Levy Adjustments ( 0) ( 0) ( 75) ( 0) . Net Tax Levy $386,560 $450,429 $465,972 $523,893 Amount Collected during Collection Year $378,625 $447,032 $461,263 $517,492 Percent of Net Tax Levy Collected 97.95% 99.25% 98.99% 98.78% Amount Delinquentat end of Collection Year $ 7,935 $ 3,397 $ 4,709 $ 6,401 Delinquencies Collected as of (12/31/99) ( 7,935) ( 3,397) ( 4,212) ( 0) Delinquencies Abated or Cancelled as of (12/31/99) ( 0) ( 0) ( 0) ( 0) Total Delinquencies Outstanding $ as of (12/31/99) $ 0 $ 0 $ 497 6,401 Percent of Net TaxLevy Collected 100.00% 100.00% 99.89% 98.78% Note: 2000/2001 Gross Tax Levy $662,292 2000/2001 Net Tax Levy N/A - 1 Property tax credits are aids provided by the State of Minnesota and paid directly to the City. -27- CITY OF ST. JOSEPH, MINNESOTA GENERAL OBLIGATION DEBT (As of July 17, 2001) . Purpose: Improvement Water Improvement Water Improvement Bonds Revenue Bonds Revenue Bonds 0 of1992 Bonds of 1992 of1993 Bonds of 1996 of 1996 1997 Dated: 07/01/92 10/01/92 11/01/93 06/01/96 06/01/96 04/01/97 Original Amount: $200,000 $475,000 $550,000 $780,000 $1,280,000 $1,235,000 Maturity: I-Dee I-Dee I-Dee l-lX;e I-Dee I-Dee Interest Rates: 4.00-6.25% 4.00-6.00% 3.00-5.30% 4.30-6.00% 4.30-5.90% 4.00-5.75% 2001 15,000 45,000 35,000 25,000 70,000 40,000 2001 2002 15,000 45,000 35,000 25,000 75,000 45,000 2002 2003 15,000 45,000 40,000 25,000 80,000 45,000 2003 2004 15,000 50,000 40,000 30,000 85,000 50,000 2004 2005 20,000 50,000 45,000 30,000 85,000 50,000 2005 2006 20,000 0 45,000 35,000 90,000 55,000 2006 2007 20,000 0 45,000 40,000 95,000 55,000 2007 2008 0 0 50,000 40,000 100,000 60,000 2008 2009 0 0 0 45,000 105,000 65,000 2009 2010 0 0 0 45,000 115,000 65,000 2010 2011 0 0 0 50,000 120,000 70,000 2011 2012 0 0 0 55,000 0 75,000 2012 2013 0 0 0 55,000 0 80,000 2013 2014 0 0 0 60,000 0 85,000 2014 2015 0 0 0 65,000 0 90,000 2015 2016 0 0 0 70,000 0 95,000 2016 2017 0 0 0 0 0 100,000 2017 . $120,000 $235,000 $335,000 $695,000 $1,020,000 $1,125,000 (1) (2) (1) (2) (1) (3) This Issue Purpose: Improvemem Improvement Improvemem Bonds of Bonds of Bonds 1998 1999 of2001 Dated: 11/01/98 1 % 1/99 09/01/01 Original Amount: $545,000 $1,330,000 $810,000 Maturity: I-Dee l-lX;e I-Dee Interest Rates: 3.90-5.00% 4.875-5.20% -.----- TOTALS: 2001 25,000 65,000 0 320,000 2001 2002 30,000 70,000 160,000 500,000 2002 2003 35,000 70,000 160,000 515,000 2003 2004 35,000 75,000 160,000 540,000 2004 2005 35,000 80,000 165,000 560,000 2005 2006 35,000 80,000 165,000 525,000 2006 2007 35,000 85,000 0 375,000 2007 2008 35,000 90,000 0 375,000 2008 2009 45,000 95,000 0 355,000 2009 2010 45,000 100,000 0 370,000 2010 2011 45,000 105,000 0 390,000 2011 2012 45,000 110,000 0 285,000 2012 2013 50,000 115,000 0 300,000 2013 2014 0 125,000 0 270,000 2014 - 2015 0 0 0 155;000 2015 2016 0 0 0 165,000 2016 - 2017 0 0 0 100,000 2017 $495,000 $1,265,000 $810,000 $6,100,000 (1) (4) (1) (4) (5) (1) -28- CITY OF ST. JOSEPH, MINNESOTA GENERAL OBLIGATION DEBT . (As of July 17, 2001) (1) These bonds are payable primarily from special assessments and additionally secured by ad valorem taxes on all taxable property within the City and without limitation of amount. (2) These bonds are payable primarily from net revenues of the municipal water system and additionally secured by ad valorem taxes on all taxable property within the City and without limitation of amount. (3) These bónds are payable solely from ad valorem taxes on all taxable property within the City and without limitation of amount. (4) Maturities 2011 through 2013, inclusive, are subject to mandatory redemption on December 1 of their respective years. (5) These bonds have been additionally secured by AMBAC Idemnity Corporation and are rated Aaa. . - - -29- EDA OF THE CITY OF ST. JOSEPH, MINNESOTA SPECIAL OBLIGATION DEBT (As of July 17, 2001) . Purpose: Public ProjecJ Revenue Bonds of2000 Dated: 06/01/00 Original Amount: $960,000 Maturity: I-Dee Interest Rates: 5.60-6.60% 2001 40,000 2002 45,000 2003 45,000 2004 50,000 2005 50,000 2006 55,000 2007 60,000 2008 60,000 2009 65,000 2010 70,000 2011 75,000 2012 80,000 2013 80,000 2014 90,000 2015 95,000 $960,000 (1) . (1) These bonds are payable from annual appropriations to be made by the city's governing body. The filii faith and credit of the City IS NOT pledged for the payment of principal and interest. - - -30- Overlappina Debt . 2000/2001 2000/2001 Net Tax Net Tax Capacity Percentage City's Capacity Value Applicable Share Issuer Value(J} in City(J) in City Net Debt of Debt Steams County $77,046,583 $1,417,637 1.84% $29,350,820(2) $ 540,055 ISD No. 742, St. Cloud 52,903,276 1,417,637 2.68 16,565,668(3) 443,960 Steams County HRA 46,609,738 1,417,637 3.04 1,070,000(4) 32.528 Total Overlapping Debt: $1.016.543 Overlapping Debt Future Financina Steams County Steams County does not anticipate the issu- ance of any additional bonding within the next two months. ISD No. 742, St. Cloud ISD No. 742, St. Cloud does not anticípate the issuance of any additional bonding within the next two months. Steams County HRA Steams County HRA recently issued ~ $1,070,000. . Housing Development Bonds, - Series 2001A, dated July 1, 2001. This debt has been included in the· above overlapping debt figures. The HRA does not anticipate the issuance of any additional general obligation bonding within the next two months. - - (1) Taxable Net Tax Capacity value after tax increment adjustment. (2) Steartls County reported bondindebtednessof$32,42S,000 and sinking funds of$3,074,180 as of December 31,2000. (3) ISD No. 742, St. Cloud, reported bond indebtedness of $18,600,000 and sinking funds of $2,034,332 as of December 31, 2000. (4) Steams County BRA has bond indebtedness of $1,070,000 and sinking funds of$O as ofJuty 1,2001. -31- Cash and Investment Balances as of Mav 31. 2001 (Unaudited) Fund . General Fund $ 871,823 Special Revenue Funds 469,179 (1) Debt Service Funds 1,641,888' (2) Enterprise Funds 920.165 (3) Total Cash and Investment Balances $3.903.055 ~ - (I) Includes the following Special Revenue Funds: # 105 Fire Fund $ 523,530.1 0 # 106 Street Maintenance Fund ( 92,024.27) # 119 Fire Station Facility Fund 1,785.92 #210 Recreation Center Fund 34,599.05 #225 Dare Fund 978.67 #230 Lake Wobegon Trail Fund 309.47 (2) Includes the following Debt Service Funds: #3081992 Improvement Fund $ 35,684.28 #309 1992A Improvement Bonds - Water Storage Fund 35,691.66 #314 1996 Water Filtration Improvement Fund 454,854.19 #315 1996 East MN Street Improvement Fund 661,857.43 #317 1997 Fire Facility Fund 214,547.66 #319 1998 Street Improvement Fund 196,142.26 #321 Joseph Street Improvement Fund ( 66,021.80) City Hall Improvement Fund . 13,886.60 #501 Trunk Sewer Fund 95,245.61 (3) Includes the following Enterprise Funds: #601 Water Fund $ 223,900.24' #602 Sewer Fund 578,538.38 - #603 Refuse Collection Fund 117,725.89 - · Funds available for debt service on outstanding general obligation bonded indebtedness. Total cash and investment fund balances available for debt service is $1,865,788.13. -32- SUMMARY OF DEBT AND DEBT STA TISTICS . General Obligation Debt -.-.. Bonds secured by special assessments (includes this issue) $ 4,045,000 Bonds secured by net water revenues 930,000 Bonds secured by ad valorem taxes 1.125.000 Total General Obligation Direct Debt $ 6,100,000 Less: debt service funds ( 1,641,888) water fund ( 223.900) Net Direct General Obligation Debt $ 4,234,212 Add City's share of net overlapping debt 1.016.543 Total Net Direct and Net Overlapping Debt $ 5.250.755 Special Obligations $960,000 Public Project Revenue Bonds of 2000 $ 960,000 . Facts for Ratio Computations 2000/2001 IndicatedMarket Value (real and personal property) $109,271,055 2000/2001 Net Tax Capacity (real and personal property, after $1,417,637 tax increment adjustment) Population (2001 Estimate) 5,074 Debt Ratios Net Direct Net Net and Net Direct Direct Overlapping Overlapping Debt Debt Debt Debt - To Indicated Market Value 5.58% 3.87% .93% 4.80% - Per Capita $ 1,202 $834 $200 $ 1,034 Per Capita Adjustedl $ 868 $602 $144 $ 746 1 The City's tax base is 26.83% commercial & industrial, .70% public utility,and .28% railroad operating property, which has been deducted. -33- $810,000 GENERAL OBLlGA TION IMPROVEMENT BONDS OF 2001 CITY OF ST. JOSEPH, MINNESOTA . (STEARNS COUNTY) CUMULATIVE BOND YEARS AND WORKSHEET (DEe. 1) CUMULATIVE YEAR AMOUNT BOND YEARS BOND YEARS 2002 $160,000 200.000 200.000 2003 160,000 360.000 560.000 2004 160,000 520.000 1,080.000 2005 165,000 701.250 1,781.250 2006 165,000 866.250 2,647.500 AVERAGE MATURITY: 3.26852 years. BONDS DATED: September 1, 2001. INTEREST PAYMENTS: June 1, 2002, and semiannually thereafter on December 1 and June 1 and to registered owners of the Bonds appearing of record in the bond register as of the close of business on the fifteenth (151h) day (whether or not a business day) of the immediately preceding month. . REDEMPTION: All Bonds are without the option of prepayment. BID: Sealed bids only for not less than $797,040. Good faith deposit for $16,200 must accompany bid. RATES: All rates must be in integral multiples of 1/2Oth or 1/8th of 1 %. No limitation is placed upon the number of rates that may be used. All Bonds of the same maturity must bear a single uniform rate from date of issue to maturity. ESTIMATED CLOSING DATE: September 13,2001. - - -34- PROPOSAL FORM .- DATED: AUGUST 16,2001 - HONORABLE CITY COUNCIL CITY OF ST. JOSEPH ST. JOSEPH, MINNESOTA FOR ALL OF THE $810,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 2001, OF YOUR CITY AS DESCRIBED IN THE OFFICIAL TERMS OF BOND SALE, WE WILL PAY YOU DOLLARS ($ ) (NOT LESS THAN $797,040) PLUS ACCRUED INTEREST FROM THE DATE OF SAID BONDS TO THE DATE OF DELIVERY. SAID BONDS SHALL BEAR INTEREST PAYABLE JUNE 1,2002, AND SEMIANNUALLY EACH DECEMBER 1 AND JUNE 1 THEREAFTER AS FOLLOWS: % - 2002 % - 2003 % - 2004 % - 2005 % - 2006 DESIGNATION OF SERIAL AND TERM MATURITIES LAST YEAR OF SERIAL MATURITIES YEAR OF TERM MATURITIES PRINCIPAL WILL BE PAYABLE AT U.S. BANK TRUST NATIONAL ASSOCIATION, ST, PAUL, MINNESOTA. CUSIP NUMBERS WILL BE ISSUED AT THE COST OF THE SUCCESSFUL UNDERWRITER. . THIS PROPOSAL IS FOR PROMPT ACCEPTANCE AND SUBÆCT TO ALL TERMS IN THE . OFFICIAL TERMS OF BOND SALE. WE ARE TO BE FURNISHED THE APPROVING LEGAL OPINION OF BOND COUNSEL, TOGETHER WITH THE DELIVERY OF THE PRINTED AND EXECUTED BONDS, WITHIN 40 DAYS AFTER AWARD OR AT OUR OPTION THEREAFTER. DELIVERY WILL BE MADE AT (SPECIAL· INSTRUCTIONS-SEE OVER). ACCOUNT MEMBERS: ACCOUNT MANAGER BY: ACCEPTED FOR THE ADDRESSEE THIS DAY OF AUGUST, 2001. BY:' MAYOR ATTEST: CITY ADMINISTRATOR/CLERK-TREASURER - -. - - - - .. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - WE COMPUTE OUR NET DOLLAR INTEREST COST TO BE $ FOR A NET INTEREST RATE OF %. THESE COMPUTATIONS ARE NOT A PART OF THIS OFFER. - - IT IS NOT NECESSARY TO USE THIS FORM; HOWEVER, ANY BID MUST COMPLY WITH THE TERMS STATED IN THIS OFFICIAL TERMS OF BOND SALE. PLEASE SUBMIT THIS BID IN DUPLlCA TE -35- SPECIAL INSTRUCTIONS: SALE RESULTS WILL BE FURNISHED BIDDERS AT 8:30 A.M. ON THE DAY AFTER THE . SALE AT (651) 224-1500. IF RESULTS ARE DESIRED IMMEDIATELY, PLEASE COMPLETE THE FOLLOWING: CONTACT: TELEPHONE NUMBER: -- - - - - -.. -- - - - - -- - - -- -- -.. --.. - - - - - -- -- -.. -- - - -.. -.. - -.- - - - -. -- - - -.. -.......... ---- . THE UNDERSIGNED HEREBY ACKNOWLEDGES RECEIPT FOR THE GOOD FAITH DEPOSIT IN THE AMOUNT OF $16,200 TO BE RETURNED TO THE UNSUCCESSFUL BIDDER. JURAN & MOODY BY: - - DATED: AUGUST 16,2001 -36- APPENDIX A . Proposed Form of Legal Opinion . - BRIGGS AND MORGAN W2200 First National Bank Building 332 Minnesota Street Saint Paul, MN 55101-1. Telephone 651-223-6 Facsimile 651-223-6450 PROFESSIONAL ASSOCIATION www. briggs. com PROPOSED FORM OF LEGAL OPINION $810,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 2001 CITY OF ST. JOSEPH STEARNS COUNTY MINNESOTA We have acted as bond counsel in connection with the issuance by the City of St. Joseph, Stearns County, Minnesota (the "Issuer"), of its $810,000 General Obligation Improvement Bonds of2001, bearing a date of original issue of September 1, 2001 (the "Bonds"). We have examined the law and such certified proceedings and other documents as we deem necessary to . render this opinion. We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, and we express no opinion relating thereto. As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials furnished to us without undertaking to verify the same by independent investigation. Based upon such examinations, and assuming the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified or photostatic copies and the authenticity of the originals of such documents, and the accuracy of the statements of fact contained in such documents, and based upon present Minnesota and federal laws (which excludes any pending legislation which may have a retroactive effect on or before the date hereof), regulations, rulings and decisions, it is our opinion that: (1) The proceedings show lawful authority for the issuance of the Bonds according to their tenns under the Constitution and laws of the State of Minnesota now in force. (2) The Bonds are valid and binding general obligations of the Issuer and all of the taxable property within the Issuer's jurisdiction is subject to the levy of an ad valorem tax to pay the same - without limitation as to rate or amount; provided that the enforceability (but not the validity) of the Bonds and the pledge of taxes for the payment of the principal and interest thereon is subject to the exercise of judicial discretion in accordance with general principles of equity, to the constitutional 1308285vl ·RIGGS AND MORGAN PROPOSED FORM OF LEGAL OPINION powers of the United States of America and to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted. (3) At the time of the issuance and delivery of the Bonds to the original purchaser, the interest on the Bonds is excluded ITom gross income for United States income tax purposes and is excluded, to the same extent, ITom both gross income and taxable net income for State of Minnesota income tax purposes (other than Minnesota ITanchise taxes measured by income and,imposed on corporations and financial institutions), and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations or the Minnesota alternative minimum tax applicable to individuals, estates or trusts; it should be noted, however, that for the purpose of computing the federal alternative minimum tax imposed on corporations, such interest is taken into account in determining adjusted current earnings. The opinions set forth in the preceding sentence are subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of . 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded ITom gross income for federal income tax purposes and ITom both gross income and taxable net income for State of Minnesota income tax purposes. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income and taxable net income retroactive to the date of issuance of the Bonds. We express no opinion regarding other state or federal tax consequences caused by the receipt or accrual of interest on the Bonds or arising with respect to ownership of the Bonds. Professional Association \ - - 1308285vl APPENDIX 8 . City's Financial Statements The following [mancial statements are excerpts from the annual [mancial report for the year. ended December 31, 2000. The complete financial report for the year 2000 and the prior two years are avail- able for inspection at the St. Joseph City Hall and at the St. Paul office of Juran & Moody. The reader of this Official Statement should be aware that the complete financial report may have further data relating to the excerpts presented in the appendix which may provide additional explanation, interpretation or modification of the excerpts. Excerpts from the Financial Report ~ Combined Balance Sheet - All Fund Types and Account Groups ~ Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types ~ Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual- General and Special Revenue Fund Types ~ Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types ~ Combined Statement of Cash Flows - All Proprietary Fund Types -. ~ Notes to Financial Statements - , CITY OF ST. JOSEPH, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS Decem ber 31, 2000 . Governmental Fund Types Special Debt Capital ASSETS AND OTHER DEBITS General Revenue Service Proiects ASSETS: Cash and Investments (Including Cash Equivalents) $ 1,447,215 $ 36,058 $ 1,948,229 $ 212,406 Taxes Receivable - Delinquent 5,036 0 2,065 0 Special Assessments Receivable - Deferred 18,988 0 1,470,170 163,117 Delinquent 208 0 3,091 0 Accounts Receivable 6,094 0 7,017 0 Notes Receivable 30,000 0 0 0 Interest Receivable 31,442 779 41,312 4,495 Due from Other Governmental Units 199,096 0 58,458 0 Fixed Assets - Net 0 0 0 0 OTHER DEBITS: Amount Available in Debt Service Funds 0 0 0 0 Amount to be Provided from SpeciaJ Assessments 0 0 0 0 Amount to be Provided for Compensated Absences Payable 0 0 0 0 Amount to be Provided for Retirement of - General Long-Term Debt 0 0 0 ~ TOTAL ASSETS AND OTHER DEBITS $ 1.738,079 $ 36.837 $ 3.530.342 $ 380.018 LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES: Cash Overdraft $ 0 $ 0 $ 0 $ 265,414 Accrued Liabilities 102,791 0 0 60,319 Due to Other Governmental Units 0 0 0 0 Contracts Payable 0 0 0 23,079 Deferred Revenue 24,232 0 1,475,326 163,117 Compensated Absences Payable 19,029 0 0 0 Bonds Payable 0 0 0 0 Loans Payable 0 0 0 0 Total LiabiJities 146,052 0 1,475,326 511,929 EQUITY AND OTHER CREDITS: Investment in General Fixed Assets 0 0 0 0 Contributed CapitaJ 0 0 0 0 Retained Earnings (Deficit) 0 0 0 0 Fund Balance ~ Reserved 30,000 0 2,055,016 0 Unreserved - Designated 903,044 0 0 0 Undesignated (Deficit) 658,983 36,837 0 (131,911) Total Equity and Other Credits 1,592,027 36,837 2,055,016 (131.911) TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $ 1.738.079 $ 36.837 $ 3.530.342 $ 380.018 - The notes to the financial statements are an integral part of this statement. Proprietary Fund Types Account Groups General General Totals Fixed Long-Term (MemoIãndum Only) Enterprise Assets Debt 2000 1999 $ 918,114 $ 0 $ 0 $ 4,562,022 $ 4,378,840 0 0 0 7,101 5,363 0 0 0 1,652,275 1,935,739 0 0 0 3,299 899 177,690 0 0 190,801 161,420 0 0 0 30,000 50,000 20,608 ° 0 98,636 57,459 0 ° 0 257,554 131,032 4,448,300 3,515,497 0 7,963,797 7,282,501 0 0 2,055,016 2,055,016 1,802,436 0 0 1,473,261 1,473,261 1,896,329 0 0 51,754 51,754 52,231 0 0 2.971,465 2,971,465 2,161,235 $ 5.564.712 $ 3.515,497 $ 6.551.496 $ 21.316.981 $ 19.915.484 $ 0 $ 0 $ 0 $ 265,414 $ 203,622 40,820 0 0 203,930 203,900 17,117 0 0 17,117 8,215 0 0 0 23,079 0 0 0 0 1,662,675 1,942,001 28,215 0 51,754 98,998 111,692 0 0 6,250,000 6,250,000 5,860,000 0 0 249,742 249,742 ° 86,152 0 6,551,496 8,770,955 8,329,430 0 3,515,497 0 3,515,497 2,712,031 5,519,572 0 ° 5,519,572 5,519,572 (41,012) 0 0 (41,012) . (72,226) 0 0 0 2,085,016 1,852,436 0 0 0 903,044 1,172,015 0 ° 0 563,909 402226 5,478,560 3,515,497 0 12,546,026 11,586,054 - ~$ 5.564,712 $ 3.515.497 $ 6.551.496 $ 21.316.981 $ 19.915.484 CITY OF ST. JOSEPH, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES Year Ended December 31, 2000 Governmental Fund Types Special Debt General Revenue Service REVENUES: General Property Taxes $ 374,003 $ 0 $ 154,845 Special Assessments 24,880 0 423,297 Licenses and Permits 73,607 0 0 Intergovernmental 617,422 0 62,701 Charges for Services 158,914 0 0 Fines 85,003 0 0 Miscellaneous 207,031 2,393 235,587 Total Revenues 1,540,860 2,393 876,430 EXPENDITURES: Current - General Government 266,496 92 0 Public Safety 725,973 0 0 Public Works 233,305 0 0 Culture and Recreation 152,835 0 0 Economic Development 65,292 0 0 Miscellaneous 1,600 0 0 Capital Outlay 0 0 0 Debt Service 0 0 957,060 Total Expenditures 1,445,501 92 957,060 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 95,359 2,301 (80,630) OTHER FINANCING SOURCES (USES): Operating Transfers In 0 0 276,000 Operating Transfers Out (231,000) 0 0 Proceeds from Loans 0 0 0 Proceeds from the Sale of Bonds 0 0 61,750 Total Other Financing Sources (Uses) (231,000) 0 337,750 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (135,641 ) 2,301 257,120 FUND BALANCE - January 1 1,727,668 34,536 1,802,436 RESIDUAL EQUITY TRANSFER 0 0 (4.540) FUND BALANCE - December 31 $ 1.592.027 $ 36.837 $ 2.055.016 - - The notes to the financial statements are an integral part of this statement. . Totals Capital (Memorandum Only) Projects 2000 1999 $ 0 $ 528,848 $ 479,915 0 448,177 261,962 0 73,607 82,156 0 680,123 678,564 0 158,914 155,600 0 85,003 60,964 3,288 448,299 488,925 3,288 2,422,971 2,208,086 0 266,588 238,591 0 725,973 743,769 0 233,305 152,677 0 152,835 221,931 . 0 65,292 59,362 0 1,600 1,061 1,157,346 1,157,346 1,630,872 1"\ 957,060 525,707 v 1,157,346 3,559,999 3,573,970 (1,154,058) (1,137,028) (1,365,884) 0 276,000 318,676 0 (231,000) (278,676) 276,136 276,136 0 879,434 941,184 1,299,599 1,155,570 1,262,320 1,339,599 1,512 125,292 (26,285) (137,963) 3,426,677 3,452,962 4.540 0 0 $ (131,911) $ 3.551,969 $ 3.426.677 ~ CITY OF ST. JOSEPH, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND . CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES Year Ended December 31, 2000 General Fund Over (Under) Budget Actual Budget REVENUES: General Property Taxes $ 368,465 $ 374,003 $ 5,538 Special Assessments 39,000 24,880 (14,120) Licenses and Pennits 60,400 73,607 13,207 Intergovernmental 605,913 617,422 11,509 Charges for Services 160,113 158,914 (1,199) Fines 66,150 85,003 18,853 Miscellaneous 67,000 207,031 140,031 Total Revenues 1,367,041 1,540,860 173,819 EXPENDITURES: Current - General Government 266,217 266,496 279 Public Safety 670,524 725,973 55,449 . Public Works 230,703 233,305 2,602 Culture and Recreation 140,707 152,835 12,128 Economic Development 62,516 65,292 2,776 Miscellaneous 500 1,600 1,100 Total Expenditures 1,371,167 1,445,501 74,334 REVENUES OVER (UNDER) EXPENDITURES (4,126) 95,359 99,485 OTHER FINANCING SOURCES (USES): Operating Transfers 0 (231,000) (231,000) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ (4.126) (135,641) $ (131,515) FUND BALANCE - January 1 1,727,668 FUND BALANCE - December 31 $ 1.592.027 The notes to the financial statements are an integral part of this statement. . Special Revenue Funds Over (Under) Budget Actual Budget $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,393 2,393 0 2,393 2,393 0 92 92 . 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 92 92 0 2,301 2,301 0 0 0 $ 0 2,301 $ 2.301 34,536 $ 36.837 - - CITY OF ST. JOSEPH, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENSES AND . CHANGES IN RETAINED E.AR.N1N"GS - ALL PROPRIETARY FUND TYPES Year Ended December 31, 2000 With Comparative Totals for the Year Ended December 31, 1999 Totals 2000 1999 OPERATING REVENUES: Charges for Services $ 541,715 $ 527,299 OPERATING EXPENSES: Salaries and Benefits 126,903 136,308 Utilities 27,218 24,217 Supplies 13,440 16,275 Sewer Use Rental 125,470 98,046 Postage 1,249 1,201 Repairs and Maintenance 7 13,607 Professional Fees 19,506 3,651 Fees and Tests 8,438 16,730 Dues and Subscriptions 690 451 Refuse Disposal 89,101 95,228 Depreciation 125,139 122,431 Insurance 8,015 8,138 Miscellaneous 2,737 2,56_ Total Operating Expenses 547,913 538,84 OPERATING LOSS (6,198) (11,549) NON-OPERATING REVENUES: InvesbnentIncome 64,611 27,147 Other Revenues 17,801 18,848 Total Non-Operating Revenues 82,412 45,995 INCOME BEFORE OPERATING TRANSFERS 76,214 34,446 Operating Transfers Out (45,000) (40,000) NET INCOME (LOSS) 31,214 (5,554) RETAINED EARNINGS (DEFICIT) - January 1 (72,226) (66,672) RETAINED EARNINGS (DEFICIT) - December 31 $ (41.012) $ (72.226) - - The notes to the financial statements are an integral part of this statement. CITY OF ST. JOSEPH, MINNESOTA . COMBINED STATEMENT OF CASH FLOWS - ...., ALL PROPRIETARY FUND TYPES Year Ended December 31, 2000 With Comparative Totals for the Year Ended December 31, 1999 Totals 2000 1999 CASH FLOWS FROM OPERATING ACTMTIES: Operating Loss $ (6,198) $ (11,549) Adjustments to Reconcile Operating Loss to Net Cash Provided by Operating Activities: Depreciation 125,139 122,431 Other Non-operating Revenues 17,801 18,848 Change in Assets and Liabilities: (Increase) in Accounts Receivable (26,756) (43,684) Increase (Decrease) in Accrued Liabilities (82,614) 101,490 Increase in Due to Other Governmental Units 8,902 708 Increase (Decrease) in Compensated Absences Payable (8,891) 18,200 Total Adjustments 33,581 217,993 Net Cash Provided by Operating Activities 27,383 206,444 _CASH FLOWS FROM NONCAPITAL FINANCING ACTMTIES: Operating Transfers to Other Funds (45,000) (40,000) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTMTIES: Capital Acquisitions (2,969) (88,686) CASH FLOWS FROM INVESTING ACTIVITIES: Investment Income 55,591 29,206 Net Increase in Cash and Cash Equivalents 35,005 106.964 Cash and Cash Equivalents, January 1 883,109 776,145 Cash and Cash Equivalents, December 31 $ 918.114 $ 883,109 - - The notes to the financial statements are an integral part of this statement. CITY OF ST. JOSEPH, MINNESOTA .. ...,. NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 1 - S1J1vlMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of St. Joseph, Minnesota, has a mayor-council form of government. A mayor and four council members are elected by the voters of the City for two-year and four-year terms, respectively. The accounting policies of the City conform to accounting principles generally accepted in the United States of A..merica as applicable to governments. With respect to proprietary activities, the City has adopted GASB No. 20, "Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that use Proprietary Fund Accounting." The City has elected to apply all applicable GASB pronouncements as well as Financial Accounting Standards Board (F AS B) pronouncements, Accounting Principles Board (APB) Opinions and Accounting Research Bulletins (ARB), issued on or before November 30, 1989 unless those pronouncements conflict with or contradict GASB pronouncements. In addition, the City has elected not to apply F ASBs, APBs and ARBs issued after November 30, 1989. The following is a summary of the City's more significant accounting policies. A. Financial Revorting Entity In accordance with GASB Statement No. 14, The Financial Reporting Entity, the financial .- statements present the City and its component units. The City includes all funds, account - groups, organizations, institutions, agencies, departments. and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the financial statements of the City because of the significance of their operational or financial relationships with the City. The City is considered financially accountable for a component unit if it appointS a voting majority of the organization's governing body and it is able to impose its will on the organization by significantly influencing the programs, projects, activities, or level of services perfonned or provided by the organization, or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the City. As a result of applying the component unit definition criteria above, the City of St. Joseph's component unit is presented in this report as follows: Blended Component Unit - The St. Joseph Economic Development Authority (ED A) was organized for the purpose of preserving and creating jobs, enhancing the tax base, and promoting the general welfare of the people of the City ofSt. Joseph. The Authority is governed by a five member board appointed by the City Council. The EDA is included as a blended component unit of the City because the EDA is financially accountable to the City, and the Authority provides services almost entirely for the City. The St. Joseph EDA is presented as a department in the City's general fund, the City Hall Project Capital Project - Fund and the EDA Public Project Revenue Bonds of2000 Debt Service fund. Separate financial statements are not prepared for the EDA. - · CITY OF ST. JOSEPH, MINNESOTA ~ NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 1 - SillvIMARY OF SIGNIFICAl~'T ACCOUNTING POLICIES (Continued) B. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which expending activities are controlled. The various funds are grouped, in the financial statements in this report, into five generic fund types and two broad fund categories, described below. Governmental Funds The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. - Special Revenue Funds are used to account for the proceeds of specific revenue sources - (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Funds are used to account for the accumulation of resources for, and the payment of, generallong-tenn debt principal, interest, and related costs, Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by enterprise funds). Proprietary Funds Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises--where the intent of the governing body is that the costs (expenses, inc1udingdepreciation) of providing goods or services to the general public on a continuing basis be financed or recovered through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, or net income is appropriate for capital maintenance, public policy, management control, accountabmty, or other purposes. The City maintains Refuse, Water and Sewer Enterprise Funds. CITY OF ST. JOSEPH, MINNESOTA . NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Fixed Assets. and Long-Term Liabilities The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are detennined by its measurement focus. All governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, curbs and gutters, streets and sidewalks, are not capitalized by the City. No depreciation has been provided on general fixed assets. - All fixed assets are valued at their historical cost or estimated historical cost if actual - historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long- Tenn Debt Account Group. The two account groups, General Fixed Assets and General Long-Term Debt, are not "funds". They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. All proprietary funds are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with the funds' activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. - - · CITY OF ST. JOSEPH, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31,2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Fixed Assets. and Long- Tenn Liabilities (Continued) Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are constructed. Interest incurred during the construction phase of proprietary fund fixed assets is reflected in the capitalized value of the asset constructed. Capital assets constructed in governmental funds for proprietary funds are recorded as contributed capita1. Depreciation of aU exhaustible fixed assets used by proprietary funds is charged as an expense against their operations. Accumulated depreciation is reported on proprietary fund balance sheets. Depreciation has been provided over the assets' estimated useful1ives, which range from five to fifty years, using the straight-line method. Depreciation expense for the years ended December 31,2000 and 1999 is $ 125,139 and $ 122,431, respectively. D. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in - the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. - All governmental funds are accounted for using the modified accrual basis of accounting, in which revenues are recognized when they become measurable and available as net current assets. The more significant revenues which have been accrued are intergovernmental revenues and interest earnings. Expenditures are generaUy recognized in the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include sick pay and principal and interest on generallong-tenn debt, which are recognized when due. All proprietary funds are accounted for using the accrual basis of accounting; revenues are recognized when they are earned and expenses are recognized when they are incurred. E. Bud2:etarv Data The City Council adopts an annual budget. The amounts shown in the financial statements as "budget" represent the original budgeted amount and an revisions made during the year. The City foIIows these procedures in establishing the budgetary data reflected in the financial statements. CITY OF ST. JOSEPH, MINNESOTA . NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 1 - SU1YfMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Budgetary Data (Continued) 1. In August of each year, the City Administrator submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them for the upcommg year. 2. Public hearings are conducted to obtain taxpayer comment. 3. Prior to December 31, the budget is legally enacted through passage of a resolution. 4. Fonnal budgetary integration is employed as a management control device during the year for the General and Special Revenue Funds. Fonnal budgetary integration is not employed for Debt Service Funds because effective budgetary control is alternatively acbieved through general obligation bond indenture provisions. Budgetary control for Capital Projects Funds is accomplished through the use of project controls. 5. The Budgets for the General and Special Revenue Funds are adopted on a basis - consistent with accounting principles generally accepted in the United States of America. - F. Encumbrances Encumbrances represent outstanding purchase orders and unfulfilled commitments that are issued to outside vendors and budgeted in the current year but do not include amounts that are set up as liabilities, amounts for personal services to be perfonned by City employees and purchase orders applicable to the subsequent year's budget. As of December 31,2000, no outstanding encumbrances existed. G. Cash and Investments (Including Cash Equivalents) (See Note 3) Cash balances from all funds are combined and invested to the extent available in authorized investments. Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Investments are carried at fair value. For purposes of the statement of cash flows, the City considers all short-term, highly liquid investments with original maturity dates of three months or less from the date of purchase to be cash equivalents. In addition, cash invested in the City's cash management pool is considered to be cash equivalents. Based on this policy, the total cash and investments of the proprietary funds are considered to be cash equivalents. - . . CITY OF ST. JOSEPH, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCO"lJNTING POLICIES (Continued) H. Taxes Receivable Delinquent taxes receivable represent the past six years of uncollected tax levies. 1. Special Assessments Receivable Delinquent special assessments represent the past six years of uncollected special assessments. Deferred special assessments represent the principal portion of those assessments to property owners for improvements made by the City. These assessments are made at various times by City resolution and are collectible over periods ranging from ten to thirty years and bear annual interest of7 percent to 8 percent and are to be received in 2001 and years thereafter. J. Deferred Revenue - Deferred revenue represents delinquent taxes and deferred and delinquent assessments receivable. TIlls revenue is deferred until it is measurable and available as net current assets. - K. Compensated Absences The City compensates employees who leave City service in good standing for all earned, unused vacation. In addition, employees are compensated for unused sick leave (up to a maximum of720 hours) at 50% of the current regular rate of pay, provided the City's notice of termination policy has been complied with. L. Fund Equity . Fund equity is dividedirito sections as follows: - Contributed capital represents fixed assets purchased by other funds and contributed to the enterprise funds. - Investment in General Fixed Assets represents the City's equity in general fixed assets, - Retained earnings of enterprise funds are available for expending in future periods. CITY OF ST. JOSEPH, MINNESOTA .. NOTES TO THE FINANCIAL STATEMENTS ~ December 31, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) L. Fund Equitv (Continued) - Fund balance accounts are subdivided as follows: Reserved accounts indicate the portion of fund balance which has been reserved for a specific purpose. Unreserved, designated accounts indicate the. portion of fund balance which has been designated for a specific purpose. The unreserved, undesignated account is the portion of fund balance which is available for budgeting and expending in future periods. M. Revenues. Expenditures and EXDenses 1. Revenues Property taxes and special assessment principal and interest are recognized as revenue - when measurable and available. Portions of taxes paid by the State in the fonn of HAC A - and other tax credits are included in intergovernmental revenue. Intergovernmental revenues are reported under the legal and contractual requirements of the individual programs. Licenses and pennits, charges for services, fines and forfeits, and miscellaneous revenues (except investment earnings) are recorded as revenues when received in cash because they are generally not measurable until then. Investment earnings are recorded when earned because they are measurable and available. 2. ProDerty Tax Collection Calendar The City levies its property tax for the subsequent year during the month of December. December 28 is the last day the City can certify a tax levy to the County Auditor for collection the following year. The property tax is recorded as revenue when it becomes measurable and available. Stearns County is the collecting agency for the levy and remits the collections to the City three times a year. Taxes not collected as of December 31 each year are shown as delinquent taxes receivable. - - .. CITY OF ST. JOSEPH, MINNESOTA .,., NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE I - SlJMN.[A.RY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Revenues. Expenditures and Expenses (Continued) 2. PropertY Tax Collection Calendar(Continued) The County Auditor creates the tax list for all taxable property in the City, applying the applicable tax rate to the tax capacity of individual properties, to arrive at the actual tax for each property. The County Auditor also collects all special assessments, except for certain prepayments paid directly to the City. The County Auditor turns over the list of taxes and special assessments to be collected on each parcel of property to the County Treasurer in January of each year. The County Treasurer collects all taxes, and all special assessments, except as noted above. The County Treasurer is required to mail copies of all personal property tax statements by April 15, and copies of all real estate tax statements by April 15, of each year. . Property owners are required to pay one-half of their real estate taxes due by May 15 and the balance by October 15. If taxes due May 15 are not paid on time, a penalty of3% is assessed on homesteaded property, and 7% on non-homesteaded property. An additional 1 % penalty is added each month the taxes remain unpaid, until October 15, If the taxes due May 15 are not paid by October 15, a 2% penalty per month is added to homesteaded property and 4% per month to non-homesteaded property until January 1. If the taxes are not paid by January 1, further penalties are added. Penalties and interest apply to both taxes and special assessments. There are some exceptions to the above penalties, but they are not material. Within 30 days after the tax settlement date, the County Treasurer is required to pay 70% of the estimated collections of taxes and special assessments to the City Treasurer. The County Treasurer must pay the balance to the City Treasurer within 60 days after settlement, provided"that after 45 days interest accrues. 3. Expenditures Expenditure recognition for governmental fund types includes only amounts represented by current liabilities. Since noncurrent liabilities do not affect net current assets, they are not recognized as governmental fund expenditures or fund· liabilities. They are reported as liabilities in the General Long- Tenn Debt Account Group. 4. Expenses - Enterprise funds recognize expenses when they are incurred. - CITY OF ST. JOSEPH, l\1INNESOTA .. ~ NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 1 - SUMJv1ARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. Interfund Transactions Quasi-external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it that are properly applicable to another fund are recorded as expenditures or expenses in the fund that is reimbursed. All other interfund transactions, except quasi-external and reimbursements, are reported as transfers. Nonrecuning or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. O. Total Columns on General Purpose Statements Total columns on the general purpose financial statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in confonnity with accounting principles generally accepted in the United States of America. Interfund . eliminations have not been made in the aggregation of these data. P. Comparative Data Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, prior year totals by fund type have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Comparative data have been restated to reflect reclassifications. Q. Use of Estimates The preparation of general purpose financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. - - . CITY OF ST. JOSEPH, MINNESOTA . NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 2 - STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY A. Fund Deficits The following funds have deficit fund balance/retained earnings at December 31, 2000: Capital Projects Funds - 1999 Street Improvements $ (260,037) County Road 121 (11,115) Enterprise Fund - Sewer (332,054) These deficits will be eliminated by future revenues, user charges or transfers fTom other funds. B. Expenditures in Excess of Appropriations Expenditures exceeded appropriations in the following funds for the year ended . December 31, 2000: Expenditures Appropriation General Fund $ 1,445,501 $ 1,371,167 Special Revenue Funds: DARE Program 92 0 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS A. Assets I. Cash and Investments (Including Cash Equivalents) Cash balances of the City's funds are combined (pooled) and invested to the extent available in various investments authorized by Minnesota Statutes. Each fund's portion of this pool (or pools) is displayed on the financial statements as "cash and investments (including cash equivalents)." For purposes of identifying risk of investing public funds, the balances and related restrictions are summarized below: a. Deposits - Minnesota Statutes require that all'deposits with financial institutions must be collateralized in an amount equal to 110% of deposits in excess of FDIC msurance. - - CITY OF ST. JOSEPH, MINNESOTA . NOTES TO THE FINANCIAL ST A TE:MENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 1. Cash and Investments (Including Cash Eauivalents) (Continued) a. Deposits - (Continued) Category 1 - Deposits covered by Federal Depository Insurance (FDIC) and those deposits collateralized with securities held by the City or by its agent in the City's name. Category 2 - Collateralized with securities held by the pledging institutions trust department or agent in the District's name. Category 3 - Deposits which are not insured or collateralized; or those deposits where collateral assignment has Dot been perfected. Category Bank Canying 1 2 3 Balance Amount . -- Bank Accounts $ 238,144 $ 0 $ 0 $ 238,144 $ 457,634 Certificates of Deposit 1,227,619 0 0 1,227,619 1,227,619 -- Total Deposits $ 1,465,763 $ 0 $ 0 $ 1,465,763 $ 1,685,253 -- -- b. Investments - Minnesota Statutes authorize the City to invest in obligations of the U.S. Treasury, agencies, and instrumentalities, shares of investment companies whose only investments are in the forementioned securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, future contracts, repurchase and reverse repurchase agreements, and commercial paper of the highest quality with a maturity of no longer than 270 days. Investments held by the City at year end classified as to credit risk are as follows: Category 1 - Insured or registered, or securities held by the City's agent in the City's name. Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name. Category 3 - Uninsured and unregistered, with securities held by the counterparty or by its trust department or agent but not in the City's name. - · CITY OF ST. JOSEPH, lVIINNESOT A NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 1. Cash and Investments (Including Cash Equivalents) (Continued) b. Investments - (Continued) Category 1 2 3 Fair Value U.S. Government and - - Federal Agency Notes and Bonds $ 1,037,592 $0 $0 $ 1,037,592 Repurchase Agreements 100,000 0 0 100,000 Negotiable Certificates of Deposit 1,459,494 0 0 1,459,478 - - Total Investments $ 2,597,086 $0 $0 2,597,070 .- - Unclassified as to Risk: Money Market Mutual Funds 14,065 Total Deposits (See Note 3 A.1.a.) 1,685,253 Petty Cash 220 Total Cash and Investments (Including Cash Equivalents) $ 4.296,608 Cash and investment balances are presented in the general purpose financial statements as follows: Cash and Investments (Including Cash Equivalents) $ 4,562,022 Cash Overdraft (265,414) Total $ 4.296,608 CITY OF ST. JOSEPH, MINNESOTA . ~ NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 2. Due from Other Governmental Units The following is a summary of due from other governmental units at December 31, 2000: City of St. Joseph Stearns Waite Park Township County Total General Fund - Fines $ 0 $ 0 $ 6,732 $ 6,732 Property Taxes/Special Assessments 0 0 189,019 189,019 Miscellaneous 2,426 919 0 3,345 Total General Fund 2,426 919 195,751 199,096 Debt Service Funds - G.O. Improvement Bonds of .- 1993 - Property Taxes/Special Assessments 0 0 663 663 - G.O. Improvement Bonds of 1998 - Property Taxes/Special Assessments 0 0 9,509 9,509 G.O. Improvement Bonds of 1999 - Property Taxes/Special Assessments 0 0 48,286 48,286 Total Debt Service 0 0 58,458 58,458 Total $ 2,426 $ 919 $ 254,209 $ 257,554 - .. CITY OF ST. JOSEPH, 1\fiNNESOT A ~ NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DET All..ED NOTES ON ALL F1.JNDS AND ACCOUNT GROUPS (Continued) A. Assets (Continued) 3. Fixed Assets A summary of changes in general fixed assets follows: Balance Balance 1-1-99 Additions Disposals 12-31-00 Land $ 167,569 $ 51,475 $ (55,000) $ 164,044 Buildings 947,186 758,985 0 1,706,171 Improvements Other than Buildings 333,852 30,146 0 363,998 Machinery and Equipment 720,998 15,514 0 736,512 Office Furniture 96,743 6,156 (1,673) 101,226 Motor Vehicles 211,337 0 0 211,337 . Other Equipment 234,346 4,384 (6,521) 232,209 Total $ 2,712.031 $ 866,660 $ (63,194) $ 3,515,497 A summary of Enterprise Fund fixed assets at December 31, 2000, is as follows: Water Sewer Fund Fund Total Land and Land Improvements $ 12,996 $ 4,940 $ 17,936 Treatment Plant and Lines 1,937,720 2,073,069 4,010,789 Buildings 0 517,983 517,983 Water Storage Facility 1,236,542 0 1,236,542 Machinery and Equipment 81,389 179,138 260,527 Total Cost 3,268,647 2,775,130 6,043,777 Less: Accumulated DeprecÜition (507,058) (1,088,419) (1,595,477) Net Fixed Assets $ 2,761,589 $ 1,686,711 $ 4,448,300 - - CITY OF ST. JOSEPH, lVIINNESOTA .. NOTES TO THE FINANCIAL STATEMENTS ~ December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities 1. Defined Benefit Pension Plans - Statewide A. Plan Description All full-time and certain part-time employees of the City of St. Joseph are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (pERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost- sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, fire- fighters and peace officers who qualify for membership by statute are covered by the PEPFF. . PERA provides retirement benefits as well as disability benefits to members, and benefits to surVivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at tennination of service. Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit accrual fonnula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of service. For all PEPFF members and for PERF members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. A reduce retirement annuity is also available to eligible members seeking early retirement. - - III CITY OF ST. JOSEPH, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 1. Defined Benefit Pension Plans - Statewide (Continued) A. Plan Description (Continued) There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree--no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants, Vested, terminated employees who . are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 514 St. Peter Street #200, St. Paul, Minnesota, 55102 or by calling (651) 296-7460 or 1-800-652-9026. B. Funding Policv Minnesota Statutes Chapter 353 sets the rates for employer and employee . contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 8.75 percent and 4.75 percent, respectively, of their annual covered salary.PEPFF members are required to contribute 6.20 percent of their annual covered salary. The City of St. Joseph is required to contribute the fonowing percentages of annual covered payron: 11.43 percent for Basic Plan PERF members, 5.18 percent for Coordinated Plan PERF members, and 9.30 percent for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31,2000, 1999, and 1998 were $17,887, $ 15,286, and $ 11,820, respectively. The City's contributions to the Public Employees Police and Fire Fund for the years ending December 31,2000, 1999, and 1998 were $ 23,975, $ 24,295, and $ 26,954, respectively. The City's contributions were equal to the contraciUaIiy requireã contributions for each year as set by state statute. - CITY OF ST. JOSEPH, MINNESOTA . NOTES TO TIffi FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 2. Defined Contribution - Statewide The City provides pension benefits for its elected local government officials through a defined contribution plan administered by the Public Employees Retirement Association (PERA). The Public Employees Defined Contribution Plan (PEDCP) is a multi-employer deferred compensation plan. Elected officials who are covered by a public or private pension plan because of their employment are not eligible to participate in the PEDCP. Plan benefits depend solely on amounts contributed to the plan plus investment earnings. Minnesota Statutes, Chapter 353D.03 requires that both the elected local government official and the City contribute an amount equal to 5% of the elected local government official's salary. There is no vesting period required to receive benefits in the PEDCP. The City's total payroll in the year 2000 was $ 728,416. The City's contributions were calculated using the base salary amount of $ 20,300. Both the City and the elected local government official made the required 5% contribution, amounting to $ 1,015 from each source, or $ 2,030 in total. . 3. Deferred Revenue Deferred revenue at December 31, 2000, consisted of: Debt Capital General Service Projects Total Taxes Receivable - Delinquent $ 5,036 $ 2,065 $ 0 $ 7,101 Special Assessments Receivable - Deferred 18,988 1,470,170 163,117 1,652,275 Delinquent 208 3,09] 0 3,299 Total $ 24.232 $ 1.475.326 $ 163.117 $ 1.662.675 - . CITY OF ST. JOSEPH, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 4. Bonds Payable The following is a summary of bond transactions for the year ended December 31, 2000: General Obligation General General Special Obligation Obligation Assessment Revenue Revenue Total Bonds Payable - January 1,2000 $ 1,165,000 $ 3,700,000 $ 995,000 $ 0 $5,860,000 Bonds Issued 0 0 0 960,000 960,000 Bonds Retired (40,000) (465,000) (65,000) 0 (570,000) Bonds Payable - . December 31, 2000 $ 1,125,000 $ 3,235,000 $ 930,000 $ 960,000 $6,250,000 Bonds outstanding at December 31, 2000, comprise the following issues: General Obligation Bonds: $ 1,235,000 General Obligation Bonds of 1997 due in annual installments of$ 35,000 to $ 100,000 through December 1,2017, interest at 4.00 to 5.75 percent $ 1,125,000 General Obligation Special Assessment Bonds: $ 200,000 General Obligation Improvement Bonds of 1992 due in annual installments of$ 10,000 to $ 20,000 through December 1, 2007, interest at 4.60 to 6.40 percent 120,000 $ 550,000 General Obligation Improvernent Bonds of 1993 due in annual installments of$ 25,000 to $ 50,000 through December 1,2008, interest at 3.00 to 5.30 percent 335,000 CITY OF ST. JOSEPH, MINNESOTA . NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 (Continued) NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 4. Bonds Payable (Continued) General Obligation Special Assessment Bonds: (Continued) $ 1,280,000 General Obligation Improvement Bonds of 1996 due in annual installments of$ 60,000 to $ 120,000 through December 1, 2011, interest at 4.30 to 5.90 percent $ 1,020,000 $ 545,000 General Obligation Improvement Bonds of 1998 due in annual installments of$ 25,000 to $ 50,000 through December 1,2013, interest at 3.85 to 5.00 percent 495,000 $ 1,330,000 General Obligation Improvement Bonds of 1999 due in annual installments of $ 65,000 to $ 125,000 through . December 1,2014, interest at 4.875 to 5.20 percent 1,265,000 Total General Obligation Special Assessment Bonds 3,235,000 General Obligation Revenue Bonds: $ 475,000 General Obligation Water Revenue Bonds of 1992 due in annual installments of$ 30,000 to $ 50,000 through December 1, 2005, interest at 4.00 to 6.00 percent 235,000 $ 780,000 General Obligation Water Revenue Bonds of 1996 due in annual installments of$ 20,000 to $ 70,000 through December 1,2016, interest at 4.30 to 6.00 percent 695,000 Total General Obligation Revenue Bonds 930,000 Revenue Bonds: $ 960,000 EDA Public Project Revenue Bonds of2000 due in annual installments of $ 40,000 to $ 95,000 through December 1,2015, interest at 5.60 to 6.60 percent 960,000 TOTAL BONDS PAYABLE $ 6.250,000 The annual requirements to amortize all bonded debt outstanding as of December 31, - 2000, including interest payments of$ 3,155,609 are: - · CITY OF ST. JOSEPH, MINNESOTA ~ NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) B. Liabilities (Continued) 4. Bonds Payable (Continued) General Obligation General Year Ending General Special Obligation December 31, Obligation Assessment Revenue Revenue Total 2001 $ 99,835 $ 415,932 $ 123,418 $ 99,240 $ 738,425 2002 103,055 419,289 119,672 102,000 744,016 2003 100,985 431,739 115,835 99,435 747,994 2004 103,870 423,311 121,905 101,825 750,911 2005 101,470 423,895 117,345 98,900 741,610 Thereafter 1,253,590 2,638,405 781,120 1,009,538 5,682,653 Totals $1,762,805 $ 4,752.571 $ 1,379.295 $ 1,510.938 $ 9,405,609 - .- 5. Loans Payable The following is a summary of loan transactions for the year ended December 31, 2000: Stearns Electric Loans Payable - January 1, 2000 $ 0 Loans Issued 276,136 Loans Retired (26,394) Loans Payable - December 31,2000 $ 249,742 The annual requirements to amortize all loans outstanding as of December 31, 2000, including interest payments of $ 12,653 are: 2001 $ 29,155 2002 29,155 2003 29,155 2004 29,155 2005 29,155 2006-2009 lU; Ó?O ---,--- - Totals $ 262,395 CITY OF ST. JOSEPH, MINNESOTA . NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) C. Fund Equity Fund equity balances are classified as follows to reflect the limitations and restrictions of the respective funds: 1. Fund Balance a. Reserved Fund Balance is comprised of the following: General Debt Service Total Notes Receivable $ 30,000 $ 0 $ 30,000 Debt Service 0 2,055,016 2,055,016 Total $ 30.000 $ 2.055.016 $ 2.085.016 b. Unreserved fund balance is comprised of the following: . Special Capital General Revenue Projects Total Designated for Fire $ 508,107 $ 0 $ 0 $ 508,107 Designated for Fire Hall 1,814 0 0 1,814 Designated for Capital Expenditures (31,622) 0 0 (31,622) . Designated for Debt Service 174,745 0 0 174,745 Designated for Working Capital 250,000 0 0 250,000 Undesignated 658,983 36,837 (131,911) 563,909 Total Unreserved Fund Balance $ 1,562,027 $ 36,837 $ (131,911) $ 1,466,953 2. Contributed Capital Contributed capital in the Enterprise Funds represents fixed assets which were purchased by other funds and transferred to the Enterprise Funds. Contributed capital is as follows: Balance, December 31, 1999 $ 5,519,572 Capital Contributed in 2000 0 Balance, December 31, 2000 $ 5.519.572 - - · CITY OF ST. JOSEPH, MINNESOTA ~ NOTES TO THE FINANCIAL STATEMENTS December 31, 2000 NOTE 4 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City maintains three Enterprise Funds which provide refuse, water and sewer services. Segment infonnation for the year ended December 31, 2000, is: Refuse Water Sewer Fund Fund Fund Total Operating Revenues $ 125,586 $ 177,945 $ 238,184 $ 541,715 Depreciation 0 53,468 71,671 125,139 Operating Income (Loss) 21,709 24,933 (52,840) (6,198) Operating Transfers Out (10,000) (35,000) 0 (45,000) Net Income 19,901 21,497 (10,184) 31,214 Contributed Capital 0 2,807,647 2,711,925 5,519,572 Fixed Assets - Acquisitions 0 7,219 0 7,219 Net Working Capital 126,244 . 210,856 693,160 1,030,260 Total Assets 136,022 2,999,240 2,429,450 5,564,712 ~ Debt Outstanding 0 930,000 0 930,000 .- Total Equity 126,244 2,972,445 2,379,871 5,478,560 NOTE 5 - RISK MANAGEMENT The City is exposed to various risk ofloss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. In order to protect against these risks of loss, the City purchases commercial insurance through the League of Minnesota Cities Insurance Trust, a public entity risk pool. This pool currently operates common risk management and insurance programs for municipal entities~ The City pays an annual premium to the League for its insurance coverage. The League of Minnesota Cities Insurance Trust is self-sustaining through commercial companies for excess claims. The City is covered through the pool for any claims incurred but unreported, however, retains risk for the deductible portion of its insurance policies. The amounts of these deductib1es are considered immaterial to the financial statements. The City's workers compensation insurance policy is retrospectively rated. With this type of policy, final premiums are detennined after loss experience, workers compensation rates and salaries for the year are known. The final premium adjustment was recorded in the year the adjustment was made. 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