HomeMy WebLinkAbout2003 [04] Apr 17
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April 17, 2003
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Pursuant to due call and notice thereof, the Economic Development Authority and City Council for the I
City of St. Joseph met in joint session on Thursday, April 17, 2003 at 7:00 PM in the St. Joseph City Hall.
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City Council Members Present: Mayor Larry Hosch. Councilors Ross Rieke, Dale Wick, Gary Utsch, AI
Rassier. City Administrator Judy Weyrens. I
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Economic Develooment Authoritv Members Present: Larry Hosch, Ross Rieke, Tom Skahen and Mikè
Deutz.
City Representatives Present: Bond Counsel Monte Eastvold
Others Present: Jerry Hettwer.
Public Hearina - Redevelopment Plan. Public Works Facilitv: Acting EDA Chair Larry Hosch opened the
public hearing at 7:00 PM and stated the purpose of the meeting is to establish a Redevelopment Project
Area in connection with the betterment of a new public works facility and adopt the Redevelopment I
Project Area in connection with the acquisition and betterment of a new public works facility and adopt the
Redevelopment Plan for the Redevelopment project area; all pursuant to the proposed bond issue has
been changed from $545,000 to $700,000 inclusive of issuance expenses. Weyrens further stated the
EDA had slightly changed the map as it was discovered that the site was not illustrated on the map. !
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Weyrens stated the Planning Commission reviewed the redevelopment plan on April 14, 2003 and made
a favorable recommendation on the redevelopment plan being consistent with the Comprehensive Plar·
Hosch stated item (9) was stricken at the EDA meeting stating it dealt with the public info structure in
creating and expanding the tax base.
Deutz, EDA Chair opened the public hearing on April 17, 2003 at 7:00 PM.
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Weyrens stated that at this point, it is to look at the redevelopment district in order to issue public project
revenue bonds. The city needs to develop an area where bonds could be issued. Weyrens noted the'
Planning Commission had previously approved the redevelopment plan on April 14, 2003. I
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Jerry Hettwer, 2260 Rodeo Road, Sartell MN 56377 approached the EDA and City Council stating tha( at
one time he owned the property which is now called Vlc West Steel. He requested an explanation; if this
area becomes a Redevelopment District, what additional opportunities present itself relative to financing,
resale, and leasing as it pertains to that property. 1
Hosch replied stating it was discussed at length at the April 16, 2003 EDA meeting, further stating that if
they were going to minimize the boundaries just to include more specifically the site the city is acquiring
or opening it up to the whole Business Park. They want to open it up to the whole Business Park i
because it affords redevelopment opportunities that the EDA can extend. For example if there was an:
issue such as a joint business venture that would like to move into that building, a cooperative rapport I
business that does not want to be sold into four different developments to four different owners, the EDA
could in turn buy that property, lease it to those four businesses, and allow that to be developed and t~ be
occupied by the businesses, it would open the EDA's bonding capacity to do low interests loans and T!F.
Deutz closed the public hearing at 7:10 PM. 1
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Rieke made a motion to adopt resolution EDA 03-03 approving the Redevelopment Project Area
and Plan for the 51. Joseph Public Works Project to include item 2a. #9 that had been previously
stricken from April 16, 2003 EDA meeting. The motion was seconded by Hosch and passed I
unanimously by those present.
Discussion: Monte Eastvold, Northland Securities approached the EDA and City Council to
explain why the city is under a time constraint. He stated there is some amendments that are
moving to the State Legislature right now dealing with the issues of bonds on behalf of cities
and/or EDA S. Cities that use EDA's or HRA to issue public project revenue bonds, stating the
process in this case is the EDA wíll own the facility, lease it to the city and during the 15 years the
city would be paying off the issue. Those payments made to the EDA are outside levy limits. ¡The
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April 17, 2003
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new proposed legislation that is coming, one proposal is that those payments made to other
governmental agencies such as the EDA in this case, are included within the levy limits if the 1
bonds are issued after May 1, 2003. Eastvold also stated that originally 1-2 months ago, they
were going to have this particular issue come up for sale and the bonds were going to be issued
on May 2, 2003. If that were to happen, these payments would have been within levy limits and
would be confining to the city in the future if that were to pass. In an attempt to expedite this
issue to meet the May 1, 2003 deadline, not only the sale has to occur prior to May 1, 2003 but
the city has to close on the issue.
Eastvold further stated there is a possibility that it may not pass the legislation or may change
between now and when the legislature adjourns. As of right now, the Bond Council is teJling us
that since we are aware that this may in fact come to pass, we have to keep these timelines and
proposals in mind when we issue these bonds today.
Hosch requested that it be emphasized as to what the City is going to do to payoff the bond. He
also stated that the City is not being dependant on a levy increase to support the payment of the
bond. There is funding in reserves and other healthy revenue sources that can be interjected
from one use into the payment of this bond. At this point, the City does not anticipate having to
increase that levy. Hosch further stated the City is in a healthy situation now.
Skahen questioned if there was a specific levy now that the city would transfer. Eastvold stated it
has been analyzed where the levies could come from other existing bond issues that have
healthy debt fund balances and have tax levies already allocated to those bond issues. Because
they are in a healthy situation, the city can take part or all of those tax levies as needed and
transfer them elsewhere.
Weyrens stated for the 1996 Improvement, the city is cu"entlyassessing a levy of $75,000 per
year to make that payment. At this point, that bond is healthy enough for where the city does not I
need to impose that full levy power. The city is not creating an additional levy but diverting the
levy they are already imposing.
Deutz questioned Eastvold as to what triggered the legislation to amend this so it cannot be done.
It is Deutz's understanding after talking with other politicians, that cities have used this and have
gone in the wrong direction financially to bond for different projects. They are looking for controls
so that it is a whole picture of the city financially.
Eastvold replied stating what they have been told is the Pawlenty has pledged not to raise taxes
as part of his campaign. Eastvold stated Pawlenty has indicated that the Pawlenty Bill is to
control and freeze levy limits at current level now. The effort Eastvold sees at the legislative level
is to control at the local city level any potential effort to increase taxes, strictly a levy limit control.
Deutz clarified that it is to protect the taxpayer.
Eastvold stated a question had been raised as to how long the district could last. Eastvold stated
it would be for the lifetime of the bond issue. If the bond issue would be paid off early, the district
would end at that time.
Wick made a motion to adopt the resolution on the Council's behalf of the Redevelopment Plan.
The motion was seconded by Rieke and passed unanimously.
Eastvold stated the City Councii will need to adopt a resolution for the Execution of Lease. Eastvold
further stated the Public Works Facility will technically owned by the EDA. the EDA will lease it back to the
city during the lifetime of the bond issue, and at the end of which the bond issue is paid off the tile of the
building and property will revert to the city.
Rassier made a motion to authorize resolution execution delivery of lease-option purchase
agreement, allocating small issue and rebate exception authority. The motion was seconded by
Utsch and passed unanimously.
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Eastvold stated they are not prepared tonight to issue the bonds however, they can pass a triggering
resolution. The triggering resolution is basically indicating that the EDA will appoint two members to
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April 17, 2003
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monitor the market and when interest rates are acceptable, they can lock into an interest rate. They I
would need to come back to the EDA in a formal meeting and they concur the action that was taken by
the chair and secretary of the EDA. Eastvold further stated that because of the time constraints, this II
needs to be done by April 22, 2003. I
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Skahen made a motion to adopt the triggering resolution; seconded by Rieke.
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Discussion: Eastvold stated the corrections regarding the secretary and chair wíll be made to the
final draft. '
Ayes: Hosch, Rieke, Skahen
Nayes: Deutz Abstain: None
Motion Carried: 3:1:0
Wick made a motion to adjourn at 7:25 PM; seconded by Rieke and passed unanimously by thJse
present. I
Hosch made a motion to recess for 10 minutes; seconded by Rieke and passed unanimously by
those present. I
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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, April 17, 2003 at 7:00 PM in the St. Joseph City Hall. I
City Council Members Present: Mayor Larry Hosch. Councilors Ross Rieke, Dale Wick, Gary Utsch, and
AI Rassier. City Administrator Judy Weyrens. i
City Representatives Present: Amy Schaefer, SEH; Dick Taufen, Public Works Director; Tom Jovanovich,
City Attorney; and Dave Theisen, Fire Chief.
Others Present: Dean Wick, Mark Lambert, and Stan Hanson.
Approve Aaenda: Rassier made a motion to approve the agenda with the following changes: I
Addition of 6a.) Surplus Tanker - Fire Truck, 13b.) Future meeting to discuss budgetlfinancing'and
deletion of 13a.). The motion was seconded by Utsch and passed unanimously.
Consent Aaenda: Rassier made a motion to approve consent agenda as presented.
a. Bills Payable - Approved check numbers 32634 - 32697
b. Minutes - Approved: April 2 and April 3, 2003
c. Preliminary I Final Plat - Accepted the recommendation of the Planning Commission and approve the
Preliminary and Final Plat for St. Joseph Business Park Plat 2.
d. Final Plat - Accepted the recommendation of the Planning Commission and approve the Final Plat for
Pond View Ridge Seven with contingencies.
e. Police Mutual Aid Agreement - Authorized the Mayor and Administrator to execute the Mutual Aid
Agreement between the five area cities.
f. Fair Housing Initiative - Authorized the Mayor and Administrator to execute a resolution in support of
Create CommUnity's Fair Housing Initiative.
g. Application for Payment No.7, Final - Authorized the Mayor to execute Pay Application No.7, Final for
the Northland Plat Five and authorize payment to Larson Excavating in the amount of $12,266.02. I
The motion was seconded by Rieke and passed unanimously.
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Discussion: Wick questioned what the status of the contingencies that consisted of cutting into
the pavement and having stubbed out services. Weyrens reported that with Pond View Ridge
Seven Plat, they are no longer going to pave the portion that goes along the outlot. Weyrens I
further reported that they wíll stop at the end of the lots,qr9y[d~>a, !~[n ~rou~g, and b~r;ri~ade rt off
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April 17 , 2003
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so it will not become an issue. Weyrens stated that the Developer's Agreement will include
maintaining the outJots and are aware of the weed violations.
Public Comments: No one wished to speak.
SUrPlus Tanker: Dave Theisen, St. Joseph Fire Chief approached the City Council stating bids for the
Surplus Tanker were opened at 3:00 PM on April 17, 2003 at City Hall. One bid was received from
Pathfinder Village in the amount of $4,776. Theisen is asking the City Council to accept the bid with the
contingency that Joe Bechtold also approves the amount of the bid.
Rieke made a motion to accept the bid for the Surplus Tanker in the amount of $4,776 with the
contingency that Joe Bechtold also approves the amount of the bid. The motion was seconded by
Rassier and passed unanimously.
Outsource Manaaement - Public Works Facilitv. Proposed Chanae Orders: Dean Wick a representative
from Outsource Management approached the City Council to review the changes that were made. Dean
reported the building was requested to move towards Elm Street with bituminous parking area in front.
He also reported the drainage pond had been to the moved to the northeast comer with the pipe down to
the southeast corner.
Dean reported that a fence was added along the backside of the property with class-2 crushed granite.
Showed locations for the future salt shed, top soil storage, aggregate storage, and a diesel fuel tank.
The transformer will be coming off of the south side of the property along with city water and city sewer.
There will also be a 25-foot row gate and dumpster pad.
One overhead door and a waik door have been relocated from the west side of the building to the north
side.
There is a location for a future Police Department and water tower.
It was questioned why the costs have almost doubled from moving the building. Dean replied stating that
by putting the building closer to Elm Street, the costs have increased due to the bituminous parking lot
and class-2 crushed granite. The costs were at approximately $25,000, the fence at approximately
$9,000, and the earthwork at approximately $35,000.
Hosch stated he feels he is not ready to make a decision on these change orders and recommends doing
some further brainstorming. Rieke feels the City is making good and sound decisions even though they
are occurring quickly and personally does not have a problem with moving forward. Rassier feels the
major increase would be coming from paving the parking lot, finishing the back lot, and fencing. Rassier
feels the City should move ahead. Utsch feels everyone is in an agreement of the plan, however he
stated a cap should be placed on the project.
It was questioned if the City Council does not approve the change orders presented tonight, can they still
move forward with the manufacturing of the building and the grade work. Weyrens asked if they would be
able to make a motion to approve the relocation of the building to start the grading. Dean answered
stating as long as the contractor knows that the City would pay them for their grading work, it could be
approved tonight.
Hosch made a motion to move forward on the location of the building which allows for the
production of the building as placed, and the site grading as presented; seconded by Rieke.
Ayes: Hosch, Rieke, Utsch, Wick
Nayes: Rassier Abstain: None
Motion Carried: 4:1:0
Mark Lambert - Reauest for Drainaae Easement: Mark Lambert of Summit Management Inc. approached
the City Council to ask for their approval in granting them the drainage easement so the Indian Hills site
may drain to the City's holding pond near the abandoned railroad.
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April 17 , 2003
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Stan Hanson of Bonestroo, Williamson, and Kotsmith approached the City Council stating City Engine~r,
Joe Bettendorf recommends Hanson's firm to put together hydrology calculations regarding the Indian I
Hills site on the impacts to the abandoned railroad. 1
Hanson stated that the effects the 7 -acre development would have with routing the drainage entirely to;
the railroad embankment pond is that it would raise the high water level one foot for 1 OO-year event. I
Hanson further stated that with Indian Hills added, we are under Y:. of the total volume of the pond which
has plenty of capacity. !
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Rassier asked Schaefer if sometime in the future when the City develops to the west of Indian Hills area
and needing to cross the drainage area, is this going to cause problems. Schaefer answered stating the
pipe is underground, it would all be storm sewer, and the drainage pond would still be accessible.
Hosch stated he has no problem with granting the easement however, his concern is with the federal
'mandates with the NPDES and feels the developer should incur the cost for the usage of the City pond.
Hosch further stated that the City needs to be fair and consistent with other surrounding cities. !
Weyrens stated the City has talked about extending a 16-foot water main along the railroad tracks and
Bettendorf wanted reassurance that there would be enough room in the area to provide all three pipes:
Lambert stated that the large map in Jovanovich's possession shows the 16-foot water main that had i
been designed. I
Rassier made a motion to grant the use of the 2-parcellot to drain into our City holding pond; I
seconded by Wick. I
Discussion: Hosch stated he feels it would very irresponsible for the City to do this without a I
mechanism for confrontation on this. Hosch further stated the City is providing a definite service,
we are opening up a use for land, and the City incurs specific costs with the maintenance of the
holding pond. Hosch also stated that the City needs to evaluate its costs. I
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Jovanovich stated that under the NPDES, the City wíll incur substantial costs in the future in I
maintaining the holding ponds and maintaining storm water run off facilities. When the new I
zoning ordinance was passed, there were a number of provisions regarding surface water
management. Jovanovich stated the way it works is the developer has to pay for the onsite and
off site drainage along with paying for the sewer to get the storm water to the municipal site. !
Another provision allows for an assessment, the costs of maintaining the common site, which is
the proposal that has been presented. Right now, we are looking at a number of ways to ¡
reasonably and fairly assess those costs. It is very similar to water hookup and sanitary sewer
fees. The City has in the past and in the future, incurred greater costs in management of storm
water. Jovanovich also stated by law, the City has 60 days in which to consider a request lik¡!¡
this in which the 60 day period would run until May 23, 2003 and if need be, they can extend it for
another 60 days. I
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Rassier questioned if the City Council adopts a new resolution, would anyone who is using a çity
drainage pond incur a fee for water and sewer like everyone else. Jovanovich replied stating 'no,
that the City cannot charge existing people the fees, it would be those going forward. i
Lambert stated he is willing to explorer with the City Administrator and City Attorney different!
solutions to this issue with the understanding that they are trying to re-coop costs. He further,
stated he is certainly willíng to pay the costs to maintain the holding pond and move forward. I
Utsch questioned if the City Council was to approve the easement with the contingency on the
price; this comes to the Planning Commission that the City Council approved the easement !
which was one of the stepping stones in approving the plat; the plat gets approved, and then the
City Council notifies the developer of the amount and he decides not to pay; but the plat is I
already approved, you cannot change it. Utsch is wondering where the City Council sits at this
point and further stated there is too many loose ends. Utsch stated he does not have a prob/~m
with the easement if the council is going to do something, Utsch recommends to do it all at one
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April 17 , 2003
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Jovanovich suggests if the City Council should approve the easement, to make it contingent upon
negotiating a Developer's Agreement which is satisfactory to the City, and that part of the
Developer's Agreement would be what type of an assessment would clearly be imposed for the
sewer and water management costs under the St. Joseph Ordinance.
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Rassier made a motion to amend his previous motion to include "we are granting the use of the
easement to the retaining pond with the contingency that when the new government standards
are worked out and how the City is going to charge people to use public ponds to keep the
upkeep. It will also be contingent upon the Developer's Agreement"; motion carried.
CITY ENGINEER REPORTS
Libertv Pointe. Feasibilitv Report: Amy Schaefer, SEH reviewed Liberty Pointe's Feasibility Report and
stated that Poplinski would authorize the production of plans and specs.
Rassier made a motion to accept the feasibility report for 2003 Liberty Pointe with the
understanding that the grading and the prep of the private street to be removed from the
feasibility report leaving the sewer, water, and sanitary for the private street in the report;
seconded by Wick.
Ayes: Hosch, Utsch, Wick, Rassier
Nayes: None Abstain: Rieke
Motion Carried: 4:0:1
Public Financina Eliaibilitv List Water Filtration: Schaefer reported that the estimated water treatment
plant and well will cost approximately $2.9 million. Schaefer stated if the City Council is looking to
construct a new water treatment plant and well in 2004, the City needs to get on the project priority list for
the PFA by May 23, 2003. By being on the priority list, it would give the City a lower interest rate of 3-4%.
If the City would like to move forward, they would need to reissue documentation that would go onto the I
Intended Use Plan for the PFA by mid June 2003. The funding for SEH to complete the necessary
paperwork would be coming out of the Water Fund.
Hosch feels there is too much planning that is needed in order to enable construction in 2004. Rieke's
feeling is that it is the City's highest priority and the City needs to get things moving; it is only going to get
more expensive if the City waits.
Utsch asked Taufen what his feeling is and he replied stating a well will need to be looked at within the
next year and the treatment plant would need to be looked at no later than two years.
Rassier questioned if it is feasible to separate the two and file the letter of intent for one of them now, and
file the other next year. Schaefer recommends having them together.
Hosch feels at this point, can we realistically say this will be done next year. Rieke stated that it is not the
moment that it will be done, but now. Rieke further stated that we know the City is going to do it, it is
going to cost more if it is delayed, and by putting things off what's the next priority issue that will be
delayed.
Rassier made a motion to move forward having SEH prepare the letter of intent between now and
the mid June deadline. We have to make that call for intent to build or not. We investigate, get
everything we have to do, to get this right. The motion was seconded by Rieke and passed
unanimously.
Update on County Road 121: Schaefer reported that the sewer for County Road 121 is much cleaner
than the first time. There does not appear to be any leaks in the joints, there is approximately 6-7 joints I
that have not been driven altogether at this time. There may be ranges anywhere from 1-4 inches of a
gap but none of the joints are leaking. All the tests that were done on the sanitary sewer passed. There
is some type of caulking that they would like to put on the 3-4 inch joints to prevent leaking in the future.
Utsch questioned if the shortage of joint was due to being installed improperly or due to the settling and
stretching of the pipe. Schaefer stated that it could be either and further stated the 3-4 inch gaps were
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Apnl17, 2003
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found to be located on the south end of the County Road 121 project where the pipe was deeper and
settling.
Utsch questioned if the pipe could stili be stretching due to the wetness back then. His concern is the
pipes pulling apart after everything is signed and the City is then held liable for the issue.
Rassier questioned whose responsible to fix the piping; the City, County, or both. Schaefer stated she
believes it would be the contractor's responsibility, they are still under warranty (liability). She further
stated that there is a couple of different options the City would have without digging up the streets.
Rassier questioned as a council, to say that anything over a certain amount of inches would need to be
repaired and questioned who makes the decisions as to what gets fixed. Schaefer stated Taufen and the
City Engineer would be responsible. .
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Utsch questioned Schaefer the stability of the contractor, subcontractors, and where is the City going with
this. Schaefer replied, stating that for the most part, the contractor is done, it is just a matter of the Lift
Station. She further stated there is a lot of issues. I
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Jovanovich questioned Schaefer that under the contract, would this be acceptable the way the pipes are
right now. Schaefer stated that the fact that they are not leaking, that it would be acceptable. Rieke I
stated since the base coat is competed, he feels this is the time to fix the pipes. Schaefer stated that if
they do need fixing, there is other ways to fix the pipes without having to dig up the road. .
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Hosch encourages another televising of the pipe before the two year warranty expires. Weyrens I
questioned how much input will the City have since the County has the contract. Schaefer stated that 'as
far as the utilities are concerned, the City has all the input. . , I
Other Matters: Wick questioned what the status is for paving Monument, Memorial, and Millstream Parks.
Schaefer stated there is some issues that need to be resolved. .
MAYOR REPORTS
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Leaislation Resolution: Hosch requests the City Council to consider and adopt the resolution concerning
legislation. It involves cuts to the City of St. Joseph and further stated the bill affects all cities. 1
'Hosch stated that in 2003, the cuts were $120,000 but with the alternative, it would reduce it to $85,000.
Governor Pawlenty's proposed cuts in 2004 estimate $228,500 with the alternative, it would be reduced
to approximately $102,000. i
Rieke made a motion to approve the resolution as presented. The motion was seconded by Utsch
and passed unanimously. .
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, Hosch reported that on April 24, 2003 Herman Boone, will be at the St Cloud Civic Center at noon and
speaking at 7 PM.
Senior APpreciation: Hosch reported Senior Appreciation week will be held April 21-26, 2003.
COUNCIL REPORTS
RIEKE
Maintenance Facilitv: Reported that the Maintenance Facility Building is developing.
, RASSIER
Historical Society: Rassier reported the Historical Society is inve~!i~¡¡\irgthe old ,mili§,in town I??..king for
additional information. Rassier also reported the Emergency Sep!jç~§ team met to review the revised
manual and further stated the final version will be held at City HålL '" ", ' " "
April 17, 2003
Page 8 of 8
WICK - None
UTSCH
Compost: Utsch reported the Compost will be open on April 30, 2003 from 4-8 PM. The schedule of the
compost will be Wednesdays and Fridays 4-8 PM and Saturdays 9 AM - 1 PM. Compost stickers can be
obtained at City Hall.
Lvnx Road: Utsch questioned the status on Lynx Road stating he had spoken with the St. Joseph
Township and they advised him to contact them in April. Weyrens stated it is still in progress and they are
set up to do the road inspection possibly in the next two weeks.
ADMINISTRATOR REPORTS
BudaeVFinanciallssues: Weyrens recommends the City Council meet in a special session to further
discuss the budget and financial issues. It was consensus to meet on April 22, 2003 at 5:30 PM.
Peter Theisman. Stearns County Parks: Weyrens reported that Peter Theisman of Steams County Parks
Department is working on grants for the Wobegon Trail and is looking for a letter of support to continue
seeking funding to expand the trail and is wondering if the City Council would support a resolution for
further funding purposes.
Rieke made a motion to approve the resolution in the support for further funding purposes. The
motion was seconded by Utsch and passed unanimously.
Adiourn: Utsch made a motion to adjourn at 9:15 PM; seconded by Wick and passed unanimously.
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