HomeMy WebLinkAbout2015 [05] May 04 May 4, 2015
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Closed Session: Wick made a motion to go into closed session pursuant MN Statute 13D.05 Subd 3(c)to
discuss pending litigation (Assessment). The motion was seconded by Symanietz and passed
unanimously.
Closed Session: Loso made a motion to go into closed session pursuant to MN Statute 13D.05 Subd
3(b), to discuss the possible purchase of property located at 124 1S�Ave SE for a possible Community
Center. The motion was seconded by Wick.
The Council came out of closed session without taking any action.
Pursuant to due call and notice thereof, the City Council for the City of St.Joseph met in regular session
on Monday, May 4, 2015 at 6:00 PM in the St. Joseph City Hall, opening the meeting with the Pledge of
Allegiance.
Members Present: Mayor Rick Schultz, Councilors: Dale Wick, Bob Loso, Matt Killam, Renee Symanietz. ,r
City Administrator Judy Weyrens
Citv Representatives: City Engineer Randy Sabart, Police Chief Joel Klein, Finance Director Lori Bartlett,.
Public Works Director Terry Thene
Others Present: Logan Gruber, Craig Roob, Bernadetter Powers, Mary Jo Kometz, Jamie Kometz, Rod
Gohmann, Tom &Julie McCall, Joan Hengel, Brad Lancour, Joe Gilk, Dan Muyres, Paula Eich, Donald
Warner, Janice Warner, Rose Janssen, Florence , Mike Krattenmaker, Mark Winter, Lawrence Pozorski,
Tom Eiynck, Jeremy Hommerding
Public Comments
A�proval of the Acaenda: Symanietz made a motion to approve the agenda with the addition of the
following: 4.1 Assessment Contention,4.2 Community Center, and 7a Bonding.The motion was
seconded by Wick and passed unanimously.
Consent Asaenda:Wick made a motion to approve the consent agenda.The motion was seconded
by Symanietz and passed unanimously.
a. Minutes—Approved the minutes of April 20, April 23, April 29, 2015
b. Bills Payable—Approved check numbers 049175-049174, Payroll EFT#001058-001062
c. Revolving Loan Fund—Authorized the Mayor and Administrator to execute the Revolving
Loan Fund Documents between the City of St. Joseph and Prego Properties, LLC for the
renovations to property located at 25 MN St W in the amount of$35,000 and to approve
a faCade grant in the amount of$1,000.
d. Revolving Loan Fund—Authorized the Mayor and Administrator to execute the Revolving
Loan Fund Documents between the City of St. Joseph and Alexis Properties, LLC for the
renovations to property located at 14 College Ave N in the amount of$12,000 and to
approve a fagade grant in the amount of$1,000.
e. Transfers—Authorized the 2015 Transfers as requested.
Assessment Contention: City Attorney, Tom Jovanovich reported the City currently has a lawsuit going on
with resident Niedenfuer regarding an assessment on his property. Niedenfuer has agreed to pay the
entire amount of$10,000 in return that the City waive the current interest charges of approximately
$500.00. The full amount of the assessment would need to be paid by the end of May 2015. Jovanovich
added the City will need to approve the settlement by a motion.
Wick made a motion authorizing the Mayor and Administrator to execute the settlement
agreement between the City of St.Joseph and Steve and Mary Niedenfuer regarding the 2014 Park
Terrace Improvement. The motion was seconded by Symanietz and passed unanimously.
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Communitv Center: Schultz reported the City has made an offer for the old Kennedy School. It was
approve by their finance committee and will go before the School Board on Wednesday.
Loso made a motion authorizing to staff to work with ISD 742 on the proposed purchase
agreement to purchase Colts Academy at a price of 2.3 million. StafF is to work through all the
contingencies a forward a final agreement for approval by the Council. The motion was seconded
by Wick and passed unanimously.
Public Hearinq, Ordinance Codification:Weyrens stated that previously she reported that some of the
sections in the Ordinance Book have reached the limits of numbers that can be added. Therefore the
entire Ordinance Book has been renumbered using the 100 sequence to allow room for additional
ordinances. The change in numbering requires a public hearing and summary publication.
Schultz opened the public hearing and as no one wished to speak the hearing was closed.
Wick made motion authorizing the Mayor and Administrator to execute resolution 2075-016
Revoking and Approving Ordinance 100 Adopting Code and Repealing Prior Ordinance.The
motion was seconded by Killam and Passed unanimously.
Committee Updates
EDA:Wick reported that both revolving loans on the consent agenda were discussed. The requests were
made by Prego Properties and Alexis.Properties to renovate locations in the downtown area.
Park Board: Killam reported the Park Board discussed the introduction of 5 little libraries.The locations
will be Hollow Park, Northland Park, Cloverdale, on the Wobegon Trail, and Klinefelter Park. Some other
potential projects would be bringing a dog park to the city and other opportunities for the youth. Killam
added that a new warming house was proposed and would be located next to the existing one. It would
be insulated better. The old facility would be used by the baseball team for storage.
Schultz stated he donated trees and is working with Thene on locations for the trees around the City.
Administrator Report
Bondinq:Weyrens stated that in looking at financing for the Community Center, the City has two options:
the utilization of sales tax bonds, or tax abatement bonds. The use of tax abatement bonds would be
beneficial. In order to do this the City would need to hire financial services to provide direction to the City
on the bonding process.
Loso made a motion authorizing staff to hire Northland Securitiss to assist in the tax abatement
ponding process for the Community Center in the amount of$4,000.00.The motion was seconded
by Symanietz and passed unanimously.
Mayor Reports
Updates: Schultz reported on the following: there was no movement on MN Street Improvements, he
continues to lobby for bonding for the community center; Rolling Ridge held an open house event for their
wedding event center. Schultz added that you can see the parking issues that might occur, however the
concept and location are great; CMCU—Schultz,Wick, and Weyrens attended the ground breaking
ceremony at the new CMCU building location and that project is underway.
Public Hearina-Assessments. 2015 Bituminous Street Imqrovement: Randy Sabart, City Engineer
provided an overview of the proposed improvement through a presentation to the Council and others
present.Sabart stated the first public hearing held in February was to consider the proposed
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improvements and the improvement was ordered at that time. Since that time, bids were received and the
amount assessed to the property owners was calculated.
The project includes Clinton Village and Northland. For Clinton Village the projected final cost of$351,500
came in below the estimated preliminary cost of$470,200. Similarly, in Northland, the preliminary cost
was estimated to be$489,600 and the projected total cost was reduced to$341,160.The special
assessments in Clinton Village were capped at$4,500 and at$3,000 in Northland.
Sabart stated the City's assessment practice has been that property owners could be assessed up to
60%with 40% or more subsidized to the City. The City commissioned a special assessment benefit report
to identify range of market benefit by the project. Clinton Village showed a benefit of$3,500-$4,500 and
Northland $2,000 -$3,000.
The special assessments were calculated based on frontage per lineal foot. It is meant to balance equity
in distribution of special assessment. For corner lots, if both sides of the lot benefit, the sum of 100%of
the short side footage and 50%of long side footage is taken. If only one side benefits, than either 100%
of the short side footage or 50% of long side footage is assessed.
Payment terms—Assessments may be paid in annual installments over time and will be collected on
property taxes.The term is 10 years at an interest rate of 5.5%. No interest is charged if assessments are
paid within 30 days of adoption of the assessment roll. If not paid, the first installment is payable on or
before the first Monday in January 2016.
Residents have the option to partially prepay the assessment with any balance being ce�tified to the
County Auditor.
Deferrals—The city does have Ordinance 38 which applies to homestead property, the owner is 65 or
older, or on active military service.Additionally payment must constitute a financial hardship on
assessments over$3,000. The process includes filling out forms provided by the City with an application
deadline of September 1 St. The City Council then makes the finding. Sabart added it is important to note
that interest still accrues on the assessment during that time.
Project Schedule—Sabart stated the Council will be asked to award the construction contract tonight and
the construction start date will be after July 4th with construction completion in October 2015.
Harold Gerlich, 706—3'd Ave NE: Gerlich approached the Council asking if the City is still in the proposal
stage of the project. Sabart stated it is past the proposal stage. Gerlich asked who decides if the streets
are bad enough that they will need to be replaced. Sabart stated that streets are typically designed to last
20 years and maintenance during that time will be conducted. Sabart added there are areas that are on
the verge of developing pot holes.The pavement is deteriorated and alligator cracking is already
occu�ring.
Steve Frank, 606 Birch St W: Frank approached the Council stating he is going to object to the
assessments. Frank added he has no expectation that he will win but realizes he has 30 days to rescind
his objection. Frank stated he spoke with an assessor from the County and asked what impact it will have
on his property value. The assessor told him there would be no effect on the value as the roads are not
looked at. Frank asked where the benefit comes from.
Jovanovich stated the City has not chosen the appraiser to get what they want. He added after contacting
the League of MN Cities, they came up with an appraiser who had success in the courtroom regarding
assessment contention. Regarding the assessment policy, Jovanovich stated that earlier in his career he
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saw people being assessed at 100%. As time went on, property owners started appealing and the
amount to be assessed was iowered. The city engineer determines the need for the project. The
assessment policy says the assessment can be no greater than the benefit and in the City's policy, no
greater than 60%. Jovanovich added that the assessment rate for this project is lower than 60%as the
city capped assessment amounts in both Clinton Village and Northland. Jovanovich acknowledged that
the report prepared on behalf of the City by Nagell Appraisers is not property specific nor a full appraisal
by propery; rather an opinion of value.
Jovanovich stated the County Assessor does not look at streets, rather bases the assessment on what
are called mass appraisal techniques. The assessor does not even try to determine a benefit of an
improvement. Jovanovich added if someone were to appeal, the City would hire an appraiser to complete
a full appraisal and conduct a paired sales analysis.
Jovanovich stated in order to object to the assessment, a written notice must be submitted by the close of
the public hearing. In addition, the resident has 30 days to file the appeal with the district court. If a large
number of people object and file an appeal, the City may not move forward with the project.Jovanovich
stated that the streets will continue to deteriorate and the repairs may become more costly.
Frank asked if his home would increase in value by$4,500 if he were to sell it. Jovanovich stated it will as
the benefit to the property will be the assessment amount. Frank added his neighbor used to live in
Albany where they paid for the project up front negating the 5.5% interest which in their opinion saves the
City and residents money. �
Weyrens stated the City does not have the available cash to pay for the projects.Additionally there is a
risk when residents choose to pay it out over the 10 year time frame as the City will still experience that
shortfall.
Joe Gilk, 605 Birch St W: Gilk approached the Council stating it is irrelevant what others cities do in
comparison to St. Joseph. He asked if the City is that financially distressed that they cannot write a check
for$800,000.Weyrens responded that it is not about distress, rather the way in which their Capital
Improvement Plan works.The City has to expand their resources out further than maybe a City like
Albany.
Rod Gohman, 709—3f°�Ave NE: Gohman asked what were to happen in five years from now when the
sewer needs to be replaced. Is money being wasted going forward with this street improvement?
Gohman added that in a cul-de-sac in his neighborhood there is not proper drainage and the water pools
up every time it rains.
Sabart stated that the improvement only consists of an overlay.The utilities and sewer should not have to
be address for another 10 years, which is when the road reaches the end of it's useful life.
Craig Roob, 600—3r0�Ave NE: Roob asked what the life expectancy of the overlay. Sabart stated they
typically give it a 10 year life. Roob noted that residents who elect to use the full 10 year repayment plan
will be finishing up on this assessment and potentially be assessed again. Roob stated he does not feel
the streets are in bad shape and should be crack filled and sealed until the time comes where the street
will need to be completely repaired.
Weyrens read into record an objection letter she received from Kevin O'Leary in which O'Leary would
rather see the project split out by lot rather than frontage.
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Larry Pozorski, 201 Hickory St E: Pozorski stated the roads in Northland are not that bad and money for
this project should go towards other areas of the City that need it more. Pozorski added the intersection
by Kennedy Schools would be the perfect place for a roundabout.
Sabart stated the concept of overlay is one that is hard to explain. Overlay is a way to preserve the street
and preventing a complete reconstruction sooner than it needs to be.
Julie McCall, 703—3'd Ave NE: McCall asked for additional information about the improvements to the
trail in Northland.
Sabart stated there are two portions of trail will be improved. One of the locations will provide an
extension of the trail to the new tot lot. The other will pave the current gravel trail. Neither of the trail
improvements are being assessed to property owners.
McCall asked at what point sidewalk will be implemented to extend towards the shelter. Sabart stated it
has been a project on the City's capital improvement plan for quite some time. From a priority standpoint,
it has been aligned along with when the road will need to have improvements.
Tom Eiynck, 708—2"d Ave NE: Eiynck approached the Council stating that everything gets dumped on
the City residents. The trail improvements are paid by the City, but Eiynck noted the City gets its money
from the tax payers. Eiynck added that he gets no benefit from it. Sabart stated that the ADA
requirements have evolved as time has passed and in order to get up to code, the improvements need to
be done.
Schultz stated that residents can now object.Weyrens stated the objection is for the assessment, not the
improvement.Any objection needs to be filed in district court within 30 days. Symanietz asked if there is
a fee when filing in district court. Jovanovich stated there is a filing fee and that an attorney should be
hired to perfect the appeal process.
Gohman stated that his objection will mean nothing because he does not have the money to hire an
attorney.
Weyrens stated there was a two hearing process. The first hearing looked at whether to do the project or
not and the one tonight is focused on the assessments.
Sabart stated if approved, the project will not start until after the July 4�h holiday. Sabart added that all the
areas highlighted in yellow in Northland will be receiving an overlay. The areas with yellow hash marks
are past the point of overlay and the reconstruction of the black top is needed. In Clinton Village, the
reconstruction of both layers is proposed, hence the increase in assessments.
Roob asked if the project is an all or nothing project. Sabart stated the project was bid as one and if the
City were to take out one neighborhood, the contractor may more than likely back out. Roob added he is
unsure that his property value will benefit from the improvements.
Bernadette Powers, 701—2"°'Ave NE: Powers asked how the improvements are going to affect her
access to her home. Sabart stated that residents will have access to their homes.The road may be a bit
bumpy for a time, but individuals will have access.
McCall asked how the payment will be made.Weyrens stated the final assessment notices will be mailed
to home owners this week if the assessment roll is adopted.
As no one else present wished to speak, Schultz closed the public hearing at 7:40 PM.
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Wick stated that Ordinance 38 applies to those assessments that are over$3,000.Wick would like the
Council to bring it back for discussion to possibly lower the minimum amount in case someone has a
hardship but their assessment is under$3,000.
Schultz asked if the paving of trails is needed. Sabart stated that there is not a requirement forcing the
City to complete those improvements. Thene added the maintenance of the gravel trail is high and rocks
end up in peoples' yards.
Schultz asked what it would take to have a trail a!I the way from Northland to Wobegon. Sabart stated that
if a trail or sidewalk were added, then drainage would need to be implemented.
Loso made a motion authorizing the Mayor and Administrator to execute resolution 2015-017
Adopting Final Assessment for the 2015 Bituminous Street Improvements.The motion was
seconded by Killam and passed unanimously.
Symanietz made a motion authorizing the Mayor and Administrator to execute resolution 2015-018
Resolution Awarding Bid for the 2015 Bituminous Street Improvements to Knife River Corporation
in the amount of$516,767.15.
Adiourn: Loso made a motion to adjourn at 7:50 PM; seconded by Wick and passed unanimously.
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