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HomeMy WebLinkAbout2003 [07] Jul 02 I I I Pursuant to due call and notice thereof, the City Council for the City of St. Josep on Wednesday, July 2, 2003 at 7:00 PM in the St. Joseph City Hall. ¡ i July 2, 2003 Page 10f5 t· I .1 me In regu ar session i City Council Members Present: Mayor Larry Hosch. Councilors Ross Rieke, Dale Wick, Gary Utsch, and AI Rassier. City Administrator Judy Weyrens. I I City Representatives Present: Bond Counsel Monte Eastvold, Police Chief Pete Jansky, City Engineer, i Joe Bettendorf Others Present: Laura Bednarz, Pat Bednarz, Mark Loso, Carol Tamm, Robbie Robinson, Patti Torborg i Approve Aaenda: Rassier made a motion to approve the agenda as presented; seconded by Wick and passed unanimously. Consent Aaenda: Utsch made a motion to approve consent agenda as presented; seconded by Rassier and passed unanimously. a. Minutes - Approved the Minutes of June 10 and June 19, 2003. b. Bills Payable - Approved Check Numbers 32965 - 33008. c. Assessor Appointment - Appointed Ollie Lesnick as Assessor for tax year 2004. Public Comments: No one wished to speak. Monte Eastvold, 2003 Proposed Bond Issues , Cross-over refundina. 1997 Fire Facilitv: Monte Eastvold of Northland Securities presented the Council with an opportunity to refund the debt for the St. Joseph Community Fire Hall. Eastvold presented the I following information: ' · Bond rates are at a historic low point I I · Refinancing the existing debt of the Fire Facility will result in a savings of approximately two percent, or $ 128,529. I · The current fund balance of the Fire Facility Bond Fund exceeds $ 200,000. When debt is refinanced, Bond Counsel requires that excess fund balance must be applied to reduce the debt further. Therefore, $ 182,082 of the existing Bond Fund will be applied to the I refinancing. · The Fire Facility debt is not callable until 2004. To refinance the issue, a cross-over I refunding is necessary. When the bond proceeds are distributed they are placed in an interest bearing investment fund that can only be accessed in December of 2004, when the bonds are callable. Eastsvold requested the Council approve a negotiated bond sale with Northland Securities purchasing ¡ the bond issue. The proposed bond issue has a net effective interest rate of 3.6597% and the new debt will mature in the year 2016. ¡ , , Rassier made a motion to approve Resolution 2003-_ providing for the ,issuance and sale of, $815,000 General Obligation Fire Hall Crossover Refunding Bonds. The motion was seconded by Utsch and passed unanimously. 'I Wick made a motion authorizing Northland Securities to purchase the $815,000 General Obligation Fire Hall Crossover Refunding Bonds of 2003 with a net effective interest rate of 3.6597%. ,The motion was seconded by Rieke and passed unanimously. Refinancina Street Improvement Bond Issues: Eastvold stated that in reviewing the outstanding debt of the City, there are three street improvement bond issues that are callable in December of 2003 and are good candidates for refinancing. The following bond issues should be refinanced: 1992 East Baker I Street; 1993 West Minnesota Street; 1996 EastlWest Minnesota Street. As stated above, any excess: fund balance should be applied to reduce the debt further. Therefore, based on the current financial I statement, approximately $ 375,733 should be applied to the new bond issue. With reducing the debt' amount and securing a lower interest rate, the City will save approximately $ 161,823. July 2, 2003 Page 2 of S Eastsvold requested the Council approve a negotiated bond sale with Northland Securities purchasing the bond issue. The proposed bond issue has a net effective interest rate of 2.4814% and the new debt will mature in the year 2011. Rieke made a motion to approve Resolution 2003-_ providing for the issuance and sale of $ 750,000 General Obligation Street Improvement Crossover Refunding Bonds. The motion was seconded by Wick and passed unanimously. Rassier made a motion authorizing Northland Securities to purchase the $ 750,000 General Obligation Street Improvement Crossover Refunding Bonds of 2003 with a net effective interest rate of 2.4814%. The motion was seconded by Utsch and passed unanimously. General Obliaation Bonds of 2003: Eastvold presented the Council with a proposed new bond issue in the amount of $ 2,135,000. The proposed bond issues includes the following: r denotes finandng is not included in the estimated cost) · Liberty Pointe $ 1,093,000 · Northland 7 435,200 · Trunk Water Main 265,000 . · Well Head Protection 20,000 . · Storm Water District Program 15,000 . · Storm Water Management Plan 125,000 * · Aerial Mapping 25,000 . · GIS Mapping 10,000 . · Municipal Well Testing/Study 43,300 . I Eastvold recommended the City complete the bond rating process and request the bond be insured. The advantage of insuring a bond is that the issue would then be rated AAA, yielding the lowest possible I interest rate. The cost of the insurance is paid by the underwriter and is at the sole discretion of the underwriter. The proposed bond issue is for a period of five years as the housing developments are anticipated to be completed within that time period. Bettendorf questioned Eastvold as to what would happen to the assessments if a Developer does not sell all their lots and the housing market drops. Eastvold stated that by issuing General Obligation bonds the City is using the full faith and credit of the City and a levy would have to established to meet the financial obligations. Weyrens stated that through the Developer's Agreement, the developers of Liberty Pointe and Northland 7 must provide the City with an irrevocable letter of credit that is equal to the outstanding assessments. Each year the developer can submit a revised letter of credit but it must never be less than the total outstanding assessments. Hosch concurred with Weyrens and stated that the City would only agree to public financing for housing if the developer provided a financial guarantee. Rieke made a motion to approve Resolution 2003-_ providing for the competitive negotiated sale of $2,135,000 in General Obligation Bonds. The bonds will be sold through a public sale on July 31,2003 and the underwriter will be requested to insure the bond issue. The motion was seconded by Rassier and passed unanimously. Amendment to Ordinance 71. Liquor Licensina and Hours of Operation: Weyrens reported that the City Attorney has reviewed the Liquor Ordinance in relation to the extended bar hours adopted by the MN Legislature. Cities have the option of allowing the bars to remain open until 2:00 AM. The current Ordinance governing liquor license hours states that the hours will be consistent with State Law. Therefore, bar owners would have the ability to request a permit to remain open until 2:00 AM. If the Council wishes to leave the closing time at 1 :00 AM, the Ordinance must be amended. Hosch stated that the area Cities will be meeting on July 29, 2003 and will be discussing the bar closing time and he would encourage the Council to wait until after that meeting before making a decision. Hosch stated that he would allow those present to make a brief comment regarding the 2:00 AM closing. Mark Loso of Loso's Pub, approached the City Council in support of the 2:00 AM closing and stated it is his opinion that the extended bar time would benefit the community. Loso stated that many of the students do not arrive at the bar until 11 :00 PM and they are all forced to leave at 1 :00 AM. Loso stated that it is his opinion that if the bar hours were extended the patrons would gradually leave between 1 :00 I I I I I July 2, 2003 Page 3 of 5 AM and 2:00 AM, rather than the entire bar being forced to leave at 1 :00 AM. The additional hours would limit promotional drink specials as license holders have an additional hour to sell alcohol. Loso stated that the costs of operating a liquor license are steadily increasing and they need to find a way to recoup some of the costs otherwise they cannot survive. Pat Bednarz of the La Playette, approached the City Council speaking in support of the 2:00 AM closing. Bednarz stated that if the area Cities allow the 2:00 AM closing and the City of St. Joseph does not, he will be at a disadvantage for banquets. Bednarz stated that businessilndividuals planning an event would most likely opt to schedule their event at an establishment that remains open until 2:00 AM. In addition, Bednarz stated that there is the potential of creating a safety issue with intoxicated individuals driving to a bar that is open until 2:00 AM. ; I Carol Tamm of the EI Paso, approached the City Council speaking in opposition to the 2:00 AM closing. Tamm stated that her establishment schedules weddings and banquets and she does not believe that business will be lost If St. Joseph does not allow the 2:00 AM closing. She stated it has been her experience that banquet guests leave shortly after an event is ended. Tamm further stated it is her opinion that if the bar hours are extended the patrons will arrive at the bar one hour later then they do currently. She also questioned the additional police costs that would be incurred if the bar hours are extended. Police Chief Peter Jansky approached the City Council speaking in objection to the 2:00 AM closing. Jansky stated that if the hours are extended additional overtime may be required, as rather than the patrons leaving at 2:00 AM they will leave at 3:00 AM and there is the potential of people strolling through the neighborhoods until 4:00 AM. The current police schedule is structured around the 1 :00 AM closing, as are the surrounding City departments with officers ending their shift at 3:00 PM. Rassier questioned if there would be an additional tax for liquor establishments requesting to remain oþen until 2:00 a.m. Hosch stated that any establishment requesting to remain open until 2:00 must submit' a permit and the State of Minnesota has adopted a permit fee ranging from $ 200 to $ 600. The fee I collected by the State is retained by the State with the City receiving no benefit. i Hosch stated that he would encourage the City to adopt a local permit fee if the liquor license hours are extended to 2:00 AM. Rassier questioned if the City is tying their hands by waiting to amend the Liquor Ordinances until the I Intergovernmental meeting that will be held on July 29, 2003. Hosch reported that Sartell is the only City that has extended the bar hours until 2:00 AM. . : Utsch made a motion to amend the following Ordinances establishing a 1 :00 AM closing for all i liquor establishments. The Council will reconsider this action after the July 29, 2003 Intergovernmental meeting. 1. Ordinance 71: Licensing and Regulation of Consumption of Intoxicating Liquor (regarding hours of operation); 2. Ordinance 71: Licensing and Regulation of Consumption of Intoxicating Liquor (regarding definition of 3.2 percent malt liquor); 3. Ordinance 72: Licensing and Regulation of the Sale and Consumption of Non- Intoxicating Malt Liquor; 4. Ordinance 72: Licensing and Regulation of the Sale and Consumption of Non- Intoxicating Liquor; and 5. Ordinance 74: An Ordinance Limiting Possession of Certain Containers of Non Intoxicating or Intoxicating Malt Liquor (Kegs). The motion was seconded by Wick and passed unanimously. CITY ENGINEER REPORTS Award Bid - Test Well: Bettendorf presented the Council with three quotes for drilling a test well. Th~ quotes are as follows: Mark J. Traut Wells Rolle Werner Well $ 16,280 17,105 July 2, 2003 Page 4 of 5 Thein Well 20,910 Engineer's Estimate 16,000 Bettendorf stated he has reviewed the quotes and recommends award to Traut Wells as they have submitted the lowest responsible quote.. Rieke made a motion to accept the low quote of $ 16,280 of Mark J. Traut Wells, Inc. for the drilling and testing of a new well. The motion was seconded by Rassier and passed unanimously. Liberty Pointe Award of Bid: Bettendorf presented the Council with the bid results for Liberty Pointe. Bettendorf stated that bids were opened on June 27, 2003 with the City receiving eight (8) bids. The results are as follows: R.L. Larson $ J.R. Ferche Breitbach Construction Richard Knutson Larson Excavating Kuechle Underground Latour 895,020.99 954,506.66 960,246.54 980,369.49 990,310.90 1,035,591.29 1,064,616.30 1,131,129.13 Engineer's Estimate Bettendorf stated that he has reviewed the bids and recommends award to R.L. Larson as they are the lowest responsible bidder. Bettendorf stated that R.L. Larson was the contractor for the 2002 Interior Street project and they meet all the performance requirements of the contract. The proposed completion date for Liberty Pointe is October 2003 and a penalty clause is included in the contract in the event the project is not completed by the required date. Rassier made a motion to accept the low bid of $ 895,020.99 of R.L. Larson Excavating, Inc. for the improvements for Liberty Pointe. Approval is contingent upon the developer submitting payment of the deferred assessment that became due and payable on December 31,2002. In addition, the developer must execute the Developer's Agreement which provides the City with a financial guaranty that the assessments will be paid by the Developer. The motion was seconded by Utsch and passed unanimously. Useful life of a road: Bettendorf presented the Council with information on the expected life of a residential road. Residential roads are designed with a life expectancy of approximately 20 years. However, roads that receive considerable traffic should be overlayed after 10 to 12 years. Bettendorf stated it is his understanding that an issue has arisen regarding 2"d Avenue NW and the recent street project. Bettendorf clarified that 2"d Avenue NW was reconstructed in 1987 and was overlayed in 2002. Rieke stated it was his understanding that 2"d Avenue NW was improved approximately seven years ago and that is why he had concerns as to the equity of the assessments. Rieke stated that based on the information presented at this meeting, the overlayment of 2M Avenue NW is within the industry standards. The Council agreed to review the information presented by Bettendorf and establish a policy for the City of St. Joseph, with regard to the life expectancy of roads and when residents can expect to be assessed for street improvements. MAYOR REPORTS I I EDA Meetina: Hosch reported that the EDA met on July 1, 2003 and discussed the Marketing Agreement between the City of St. Joseph and Leo Buettner. The Marketing Agreement identifies the selling price I for the individual lots in the St. Joseph Business Park. The property owner is requesting to increase the price of the lots before the expiration date of September 27, 2003. The EDA will be meeting with Buettner to determine if the agreement will be extended or terminated COUNCIL REPORTS I I I I July 2, 2003 Page 5 ~f 5 RIEKE ¡ I EmDlovee Retirement: Rieke reported that he attended the retirement lunch for Ray Bechtold. Bechtold was employed by the City for 27 years as a maintenance worker and retired on June 30, 2003. RASSIER Maintenance Buildina Meetina: Rassier reported the Maintenance Building Committee met on July 2, 2003 and it is anticipated that the facility will be completed by the end of July. The general contractor has indicated that the project is meeting or exceeding the contract deadlines. WICK - None UTSCH Plannina Commission: Utsch reported the Planning Commission met and discussed potential amendments to the Zoning Ordinance. The following items were discussed: . Maximum Curb Cut in a residential zoning district - The current Zoning Ordinance limits residentia property to one curb cut, not to exceed 24 feet In width. The Planning Commission recently received a request to increase the maximum curb cut based on the number of garages or lot size. The II Planning Commission reviewed the current language in the Ordinance and it states that only one opening is allowed not to exceed 24 feet. The Planning Commission clarified that the 24 feet stat~d in the Ordinance does not include the wings and 3 foot wings will be allowed on each side for a total width not to exceed 30 feet. I . Utsch requested the Planning Commission consider increasing the side yard setback to 10 feet on both sides, rather than the current 5 foot sldeyard requirement on the garage. ADMINISTRATOR REPORTS i 'Fireworks Ordinance: Weyrens reported that the City Attorney is reviewing the current Fireworks I Ordinance to incorporate the recent legislative changes. The Ordinance Amendment will be placed on the July 17, 2003 agenda. I Budaet Meetina: Weyrens reported the Budget meeting will be held at City Hall on July 9, 2003 at 5:30 p.m. i Adiourn: Utsch made a motion to adjourn at 8:10 PM; seconded by Wick and passed unanimously. i I THIS PAGE INTENTIONALLY LEFT BLANK I I