HomeMy WebLinkAbout2003 [03] Mar 06
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March 6, 2003
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Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session
on Thursday, March 6, 2003 at 7:00 PM in the St. Joseph City Hall.
Members Present: Mayor Larry Hosch. Councilors AI Rassier, Dale Wick, Ross Rieke, Gary Utsch.
Administrator Judy Weyrens.
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City Representatives Present: City Engineer Joe Bettendorf, Bond Counsel Monte Eastvold, Public
Works Director Dick Taufen.
Others Present: Tim Erkilla, Ryan Gideon, Rick Poplinski, Rob Robbinson I
Approve Aaenda: Rassier made a motion to approve the agenda with the follows additions: 11 (c)
Proposed Meeting with the Planning Commission; 11 (d) Amendment to the Hookup Fee Policy;
The motion was seconded by Rieke and passed unanimously. I
Consent Aaenda: Rieke made a motion to approve the consent agenda as follows:
a.
b.
c.
Bills Payable - Approve Gheck numbers 32475 - 32539, I
Minutes - Approve the minutes of February 4 and February 6, 2003
Application for Payment #1 - Authorize the Mayor to execute Pay Application No. 1 fat
the Sf. Joseph Maintenance Building and authorize payment to Shingobee Builders, In'c.
in the amount of $ 13,309.20. '
Water I Sewer Access Fees - Increase the Water and Sewer Access fees from the
current $ 2,500 to $ 4,000 effective May 15, 2003.
d.
The motion was seconded by Utsch and passed unanimously.
Public Comments to the Aaenda: No one present wished to speak. I
Initiation of the AUAR Process Arkon Development: Tim Erkilla of Westwood Professional Services I
appeared before the Council on behalf of Arkon Deveiopment. Erkilla stated that Arkon Development
has purchased approximately 450 acres for residential development. State guidelines as set forth by the
Minnesota Environmental Quality Board require projects exceeding certain thresholds to go through an
environmental review process. The proposed Arkon site is of a magnitude that the AUAR (Alternative I
Urban Areawide Assessment) would be appropriate.
An AUAR is an alternative form of environmental review that is more detailed than an EAW
(Environmental Assessment Worksheet) but is less detailed than and EIS (Environmental Impact
Statement). The AUAR allows for a more geographic area approach rather than just a development wide
approach. The AUAR also allows more than one development scenario to be investigated. I
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Erkilla further stated that the City is the responsibie agency for assuring that the requirements of the I
Minnesota EQB are met. Therefore, the City must notify the EQB as to the intent to complete an AUAR
process for the Arkon Deveiopment. Erkilla clarified that the cost of the AUAR will be borne by the i
developer and his firm will work with the City to complete the process. An AUAR includes the following
tasks: 1) Alternative Concept Plan Development; 2) Meetings and Agency Coordination; 3) Draft AUAR
and Mitigation Plan Preparation; 4) Draft AUAR Distribution and Notice; 5) Final AUAR and Mitigation I
Preparation, Distribution and Notice; 6) Final Mitigation Plan Adoption and Notice.
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City Engineer Joe Bettendorf suggested the Council consider expanding the AUAR process to include i
island areas between the subject area and the current City Limits. Bettendorf stated that completing the
process at this time would be cost effective and could be assessed back to the developers when the i
island property is developed. Bettendorf stated that completing the AUAR for a large area would assist
the City in locating roads and guiding future development. Erkilla stated that he would be willing to I
amend the project area and provide the City with a cost estimate to include the additional property in the
AUAR study area.
March 6, 2003
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Hosch clarified that the cost of the AUAR will be borne by the developer unless the City expands the
review area. Bettendorf recommended that citizen participation be included in the committee completing
the process. Erkilla stated that at this time he is requesting the City to send a letter to the Minnesota
Environmental Quality Board to initiate the AUAR process for the area being developed by Arkon
Development.
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Utsch made a motion authorizing the City Administrator to notify the Minnesota EQB that the City
of St. Joseph will be initiating the AUAR process for a development in the southern quadrant of
the City. Further, the Council requested Weyrens to obtain an estimate to expand the study area
as requested by Bettendorf. The motion was seconded by Rassier and passed unanimously.
Discussion: It was clarified that the letter of intent will not be sent until the project area has been
determined. When questioned how long the study is valid, Erkilla responded five years.
Preliminarv Plat. Libertv Pointe Rick Poplinski: Rick Poplinski of Viking Development appeared before
the Council to request Preliminary Plat approval for the development formerly known as Madison Park.
Poplinski stated the development has been renamed Liberty Pointe and is located east of Forest Ridge
Addition near 88th Avenue. The development consists of 34 acres with mixed development including
approximately 30 town homes and 35 traditional single family homes. Poplinski stated that the
development will include varied home values with the town homes meeting the goal of the Affordable
Housing agreement.
Hosch recognized the petition received by the abutting property owners. The petition requested the
Council reconsider the proposed development. Popiinski stated that since the petition has been received
the plan has been revised reducing the number of homes by two. When the plat was re-drawn, the
existing property owner who had seven lots abutting his property now has just one. The revised plat
removes the road from the wetiand, leaving the majority undisturbed.
Utsch stated that the Planning Commission reviewed the Preliminary Plat and recommended the Council
approve the plat with the following conditions: I
1. Approval of the Gity Engineer
2. Before submittal of the final plat the developer must provide the Gity with approval from
Stearns Gounty Environmental Services.
3. Traffic controls must be determined for the intersection of East Baker Street and 1 E!'
Avenue SE.
4. Submittal of the covenants for Liberty Point.
5. ' The Developer's Agreement must require the Developer to maintain the walking trail for a
period of three years
6. With the exception of the street width, the streets will be built using the design standards
of the Gity of St. Joseph.
Rassier made a motion to accept the recommendation of the Planning Commission and approve
the preliminary plat of Viking Development known as Liberty Point contingent upon six items
identified above. The motion was seconded by Wick.
Ayes: Hosch, Rassier, Wick, Utsch
Nays: None. Abstain: Rieke Motion Carried 4:0:1
Vikina Development - Reauest for Public Financina: Weyrens reported that Poplin ski is requesting to
finance the improvements publicly with the City issuing bonds and assessing the costs. Hosch stated that
the City cannot finance private streets and if the project is funded publicly, the portion of the project that
contains private streets cannot be included. Poplinski stated that he is aware that only the portion of the
project that contains public streets can be financed through municipal bonds. Poplinski stated that he is
also aware of the requirement that if a project is publicly financed the developer must provide a guaranty
of payment for any year which the assessments collected do not cover the bond payment. He further
stated that he is looking to finance the project over a five year period with the assessments being paid in
full when lots are sold.
Utsch questioned if the City is exposing financial resources by publicly financing the improvements. In
addition, Utsch stated that it would seem reasonable to offer financing if the City is looking for
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March 6, 2003
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development, which St. Joseph is not. Utsch questioned what happens if the lots in the development do
not sell and the developer does not make the requifed bond payment. I
Bond Counsel Monte Eastovld of Northland Securities stated that if the City issues bonds for the, i
improvements the City is liable in the event the developer does not sell the number of lots anticipated or
provide the payment required to meet bond obligations. When the City issues General Obligation Bonds
for the improvements, the bonds are issued on the full faith and credit of the City. Since the bonds are'
Generai Obligation, the City would have to use levy authority should the deveioper not meet the I
obligations. Eastvold stated that it is his experience that most cities allow financing and very seldom does
the developer default. Rieke stated that in the 1980's the City of St. Joseph was one of those rare cities
where the developer defaulted. However, Rieke stated he was uncertain as to what caused the
developer to default.
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The Councii agreed that before any future bonds are issued for housing development, the method of
assurance for bond payment should be reviewed. Weyrens stated that she would work with the City
consultants to research alternative methods of assurances and bring the matter back to the Council.
Debt Manaaement Studv: Eastvold presented the Council with the annual Debt Management Study.
Eastvold stated the purpose of the study is to review each bond fund to assure that obligations are being
met and the required revenue sources are collected. The study is based on the December 31, 2002 Flmd
Balances. In reviewing the bond funds Eastvold stated that the City has one issue that can be called i~
December of 2003. Whiie the City wiii not have enough to pay the entire balance of the 1996 Bond Fuhd,
their wiii be sufficient fund balance to pay all but three years, saving the City over $ 200,000 in interest'
payments. In addition, Eastvold stated the Water Refunding Bond Issue has a significant fund balance
where revenue sources wiii only need to be provided for the last year. I
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The City also has two bond funds which need to be monitored closely to assure that revenue sources are
adequate and to transfer additional funds when needed. The Bond issue for 2002 indicates their could be
a cash shortfall. The predicted shortfall is a result of the large amount of pre-paid assessments. Eastvold
stated that when the bond schedule is prepared, the City estimates the amount of prepaid assessments
and the balance of unpaid assessments are divided over the term of the bond issue. If the City receiv~s a
large amount of prepaid assessments, the interest anticipated at the time of issuance does not occur i
causing a potential shortfall. Eastvold stated that at this time the City does not need to take any action
other than monitor the funds. i
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Maintenance Faciiitv - Public Proiect Revenue Bonds: Weyrens stated that she had requested Eastvold
to prepare a proposed bond issue for the financing of the Maintenance Facility. ,The Council had I
previously decided to finance the facility through a iease back purchase. However, due to the proposed
budget cuts and uncertainty of the economy, Weyrens recommended the Council consider issuing Public
Project Revenue Bonds. Eastvold stated that public project revenue bonds are similar to a lease that i~
managed by an Economic Development Authority. The St. Joseph EDA would issue the bonds and lease
the facility to the City of St. Joseph over a period of 15 years. The same process was used for the City
Hall facility. Eastvold stated the advantage of issuing bonds over a lease back purchase is levy authority.
Public Project Revenue Bonds faii outside of levy limits while lease back purchases do not. I
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Wick made a motion to request the St. Joseph EDA to consider issuing Public Project Revenue
Bonds for the purchase of the Maintenance Facility, including land. The motion was seconded' by
Rieke and passed unanimously. I
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Extension of Utilitv Services 111 Colleae Avenue North: Bettendorf reported the property owner of 1.11
College Avenue North needs to increase the water service for the new commercial venture under I
construction. Increasing the water service to the property will require College Avenue to be opened. The
property owner has requested the City consider replacing the water service to the properties between I
Birch Street East and Ash Street East. Bettendorf stated that he has not completed this review, but at
this time the City does not have any plans to replace services. As College Avenue is a County Road, 'a
permit must be secured from Stearns County to open the road. Bettendorf stated the County has agreed
to allow the opening of College Avenue, but wili require the City to sign a maintenance agreement
requiring the City to maintain the area cut due to the extension of services.
March 6, 2003
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The Council concurred that the cost of the water line extension is to be borne by the developer without
City participation. Rassier made a motion authorizing the Mayor and Administrator to execute a
Maintenance Agreement between Stearns County and the City of St. Joseph requiring the City
maintain the patched area on College Avenue North as a result of extending water service to 111
College Avenue North. The motion was seconded by Hosch and passed unanimously.
Commercial WaterlSewer Access Fees: Weyrens requested the Council reconsider the current policy for
determining the water / sewer access fee for commercial buildings when more than one business is
located in a building. Weyrens stated that if a multi business commercial building is constructed the water
and sewer access charge is determined by the number of meters installed. Since the fees are being
reviewed the Council should review the method for calcuiating such.
Bettendorf stated that charging one fee and metering only one service can be problematic in the future.
Currently the business centers have condo minimized the business leaving each business in separate
ownership of their portion of the building. If one person does not pay the utility bill the entire building can
be shut off under the current poiicy. The City should consider requiring each business to be metered
separately with separate services piumbed from the outside.
Rassier stated that it is his opinion that each business should be charged and metered separately. Rieke
questioned how muitiple family access charges are determined. Weyrens stated that the City has a
formula for determining the access fee based on the number of bedrooms in the apartments. The
schedule provides for reduced access fees. Rieke stated it is his opinion that business centers should
be charged on the same schedule as multiple family as there is a property owner that is responsible for
the meter and connection. Weyrens stated that typically once the buildings are constructed and leased
they are sold as condominiums so a common property owner is no longer present. After considerable
discussion Weyrens agreed to research the matter further and provide additional information to the
Council at an upcoming meeting.
Mayors Report
St. Cioud APO Meetina: Hosch reported that he recently attended the APO Executive meeting where the
transportation funding was discussed. The Executive Gommittee approved the transportation project list
which included the Transportation Study for Field Street.
Councilor Reports
UTSCH - No Report
WICK - No Report
RASSIER - No Report
RIEKE
Newlv Elected Officials Conference: Rieke reported that he and Wick recently attended the Newly
Elected Officials Conference sponsored by the League of Minnesota Cities. Rieke stated the conference
was very informative and discussed items such as Capital Improvement Planning. The conference was
attended by over 400 elected officials.
Administrator Reports
Ordinance 52 Adoption of Revised Ordinance: Weyrens reported that the Council must consider and
adopt the revised Zoning Ordinance. The following issues are outstanding and need resolution before
adoption:
1. Fencina around pools - Hosch has requested the Ordinance be amended to require a
perimeter fence around all outdoor pools. Hosch stated that he has been approached by
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March 6, 2003
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residents requesting this provision be added as it is a safety issue. The Council was in
general agreement to amend the Ordinance requiring perimeter fencing around all I
outdoor pools. The fence must be in compliance with the fence regulations as stated in
the Ordinance, not exceeding seven feet in height and the finished side of the fence must
face the adjoining property. , I
Advertisina Sians Weyrens reported the Council at an earlier meeting agreed to remove
advertising signs from the Zoning Ordinance. The removal of such would prohibit new
billboards or advertising signs to be constructed within the City Limits. Hosch stated that
the Council and Pianning Commission have discussed the matter previously and the I
revised Ordinance should reflect such. Rieke stated that he does not support the ¡
prohibition of advertising signs as they have a purpose. Rassier made a motion to i
remove the provisions for Advertising Signs in Ordinance 52 as recommended by
the Planning Commission. The motion was seconded by Utsch.
Ayes: Hosch, Rassier, Wick, Utsch
Nays: Rieke Motion Carried 4:1:0
3.
Development Plan Review - Hosch stated that in 2002 the Council requested the
Ordinance be revised requiring all site plans to be reviewed by both the Planning
Commission and City Council. When asked why the Council requested such, Weyrens
responded that it was the feeling of the Council that as elected officials they should be!
making the final decision. If the residents are going to be upset with a decision they will
contact Councilors therefore they should make the final decisions.
Rieke questioned the need for the Council to review site plans after the Planning
Commission has done the same. He further questioned if the Planning Commission
recommends approval under what basis can the Council deny the request if and the City
isn't creating a situation where legal action can be taken. Utsch stated that the City Staff
has developed a checklist that is used for all site plan reviews. The checklist is objective
in nature and if the developer meets all the requirements, their should not be a basis to
deny a site plan. i
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Rassier stated that he concurs with Hosch and would like to see the final site plan, not to
critique the action of the Planning Commission but to serve as a double check of the I
requirements. The site plan before the Council can be as simple as a presentation ofthe
project with the recommendations of the Planning Commission. Rassier further clarified
that the Council should only review the finai plan after all the revisions have been I
completed. I
Wick expressed concern if the Council wasn't creating a second review process that I
could be in conflict with the Planning Commission. Rieke expressed similar concern&
and questioned if un-necessary layers are being created that could be cumbersome and
ineffective. I
Hosch made a motion to amend Ordinance 52 to require the Council to approval all
final development site plans. The motion was seconded by Wick. '
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Discussion: Wick questioned if the Gity would have additional exposure by creating a I
second level of approval. Utsch stated that he questions the need to have the site plans
reviewed by the Gouncil. If the Planning Gommission is assuring compliance with the:
Ordinance, the Gouncil should not have to do the same. Rieke concurred with Utsch tJnd
questioned what the Gouncil will be reviewing. Rieke further stated that the Gouncil has
the opportunity to view the Planning Gommission meetings, attend the meeting or contact
the members if they have a concern. I
After considerable discussion Wick made a motion to table inclusion of Council
review for all site plans until additional inforrn"ticm i ¡ a"ailable. The motic~n Yia$
seconded by Rieke and passed unanimously: '"' - .' - ,.-' ,.' ,- !
March 6, 2003
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Weyrens stated that the Council is scheduled to meet jointly with the Planning Commission on March 10,
2003 and this matter can be discussed at that time if the additional information is available. Weyrens I
further stated that there are a number of projects that are in process and the revised Ordinances need to
be finished as soon as possibie. The Council agreed that the outstanding issues should be resolved by
the March 20, 2003 Council Meeting.
Weyrens stated that Ordinance 52 will be revised to include the wetland regulations in each Zoning
District. Currently the regulations are listed in the General Provision and are not always referenced.
Including the regulations in the Zoning District will require all developers to be conscious of the
requirements and setbacks.
Adiourn: Wick made a motion to adjourn at 9:40 PM; seconded by Rassier and passed
unanimously.
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