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HomeMy WebLinkAbout1999 [05] May 06 Page 3515 May 6, 1999 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, May 6, 1999 at 7:00 p.m. in the St. Joseph City Hall. Members Present: Mayor Kenneth J. Hiemenz. Councilors Ken Twit, Bob Loso, Cory Ehlert, Mary Niedenfuer. Deputy Clerk Judy Weyrens. City Representatives Present: City Attorney John Scherer; City Engineer Joe Bettendorf; EDA Director Chad Carlson. I Others Present: Michael Deutz, John Provinzino, Mike Rennie, Dorine Rennie, Sylvester Prom, Mike Schaebel, Dick Backus, David Terwey, Steve Streng, Jennifer Thienes, Mike Schoenecker. Approve Aoenda: Twit made a motion to approve the agenda as presented; seconded by Ehlert. Ayes: Hiemenz, Twit, Loso, Ehlert, Niedenfuer Nays: None. Motion Carried 5:0:0 Consent Aoenda: Loso made a motion to approve the consent agenda as follows; seconded by Twil (The outdoor liquor permit request from La Playette was tabled to the May 13, 1999 meeting) a. b. c. Capital Purchase request: Asphalt saw, $ 893.00 0Nater & Sewer) Pay Application No.2, 1999 Street Improvement Project, Randy Kramer Excavating, $85,116.08. Pay Application 8 (Final) 1996 East MN Street. Mid Minnesota Concrete and Excavating, $ 18,690.01. Engineer Pay Schedule - Acceptance of the 1999 Engineering Rates I d. Ayes: Hiemenz, Twit, Loso, Ehlert, Niedenfuer Nays: None. Motion Carried 5:0:0 Approve Minutes: Twit made a motion to approve the minutes of March 10, March 23, and April 15, 1999 as presented and April 6, 1999 with the following correction: Page 1: ... the Engineer's estimates have been higher than.... The motion was seconded by Loso. Ayes: Hiemenz, Twit, Loso, Ehlert, Niedenfuer Nays: None. Motion Carried 5:0:0 Bills Pavable: Ehlert made a motion to approve the bills payable as presented; check numbers 26829 - 26855; seconded by Niedenfuer. Ayes: Hiemenz, Twit, Loso, Ehlert, Niedenfuer Nays: None. Motion Carried 5:0:0 Overtime and Callouts: Ehlert made a motion to approve the overtime and callouts as presented; seconded by Niedenfuer. Ayes: Hiemenz, Twit, Loso, Ehlert, Niedenfuer Nays: None. Motion Carried 5:0:0 Public Comments to the Agenda I I Page 3516 May 6, 1999 Steve Frank, 606 Birch Street W spoke in regard to the dog license fee charged by the City. Frank stated that he was not satisfied with the service he received at the St. Joseph Vet Clinic when purchasing the dog license and indicated the fee was the highest in the area. Frank presented a summary of dog licenses in the area of which St. Joseph was the highest for spayed animals. Further, he stated that two years ago the fee was $ 2.00 and one year ago the fee was $ 7.00. In his opinion the fee has increased to a point where it exceeds the value of the license. Frank also expressed objection to having to purchase the license at the St Joseph Vet Clinic. Ehlert clarified that the Vet Clinic offered to assist the City in licensing dogs and property owners are not required to vaccinate their animals at the clinic. The St Joseph Clinic is just providing another location at which a license may be purchased. Michael Deutz stated that he would like the opportunity to present information regarding Joseph Street and questioned if he would have the opportunity to speak during the Engineer's Report. The Council agreed that Deutz would be allowed to present his information during the Council discussion of Joseph Street. City Engineer Reports I Joseph Street Improvement: City Engineer Joe Bettendorf stated that since the public improvement hearing regarding the proposed improvement of Joseph Street he has had an opportunity to review the project costs and street design. Bettendorf stated that in effòrt to reduce the cost of the improvement the foUowing can be considered: 1.' Storm Sewer materials - costs can be reduced by changing the type of piping. 2. Road Width - the road can be constructed at width of 26 feet rather than 40 feet and the curb and gutter could be removed. This deduction would reduce the street cost by approximately 23% and an average decrease in assessment of 9.7%. Bettendorf clarified that a major portion of the street assessment is for drainage. At the present time a drainage system is not available for Joseph Street and one must be constructed. Niedenfuer questioned if reducing the road bed would create a problem for trucks loading and unloading in the Industrial Park. Bettendorf responded that when the driveways to the individual businesses are reconstructed the apron will need to be enlarged to accommodate truck traffic. Michael Deutz questioned the City Attorney as to who is responsible for providing proof that the proposed assessment will increase the value of the property J City Attorney John Scherer responded that the burden of proof rests with the property owner. Scherer further stated that before the public healing was conducted the City Assessor reviewed the assessments and compared the values against existing Industrial Parks in the area. It was his opinion that the values were equal to or less than surrounding Industrial Parks. I Deutz questioned if the City Council would consider subsidizing the project. Loso stated that prior to 1996 the property owner was responsible to pay 100% of a street reconstruction. Since that time the City has adopted a policy whereby a residential property owner pays 60% of the street improvement cost. At the same time the Council Page 3517 May 6, 1999 discussed what type of cost share would be appropriate for business development, but no action was taken. Loso questioned whether the tax payer should be burdened with the additional expense. Deutz responded that in his opinion the business community makes the majority of revenue for the City and the residential lots actually cost the City money. I John Provinzino, attorney for Detuz, stated that while he understands the decision to move forward with the proposed development is a political deCision" the Council needs to determine if they will subsidize the project. The Industrial Park property owners are looking for financial relief from the City. Provinzino further discussed the property owned by Deutz and the comparison between the purchase price and the proposed assessment. Weyrens stated that Jerry Hirschfeld has submitted a letter of support for the proposed improvement to include street, curb and gutter, storm sewer, water and sewer. Niedenfuer stated that she has been contacted by residents who expressed opposition to subsidizing the proposed improvement. Loso stated that it is his understanding that the greatest needs in the Industrial Park is street and drainage. However, he encourages the Council to movel forward with the entire project including water and sewer. Twit concurred with Loso and stated that he is not in favor of eliminating the concrete curb and gutter, and replacing it with a bituminous lip. As the area being discussed is an industrial park, Twit questioned if truck traffic will deteriorate the lip curb and eventually break the road edges. Twit further stated that he has heard many requests to repair Joseph Street and the business expect such. Bettendorf stated that the proposed road will be built as a 9 ton road and the curb lip should not deteriorate. I Mike Rennie spoke in objection to the proposed improvement in total. He stated that if the project proceeds as proposed, the assessments will total over $ 130,000 for property owned by he and his mother. In his opinion the payments would be unaffordable. Twit questioned Rennie as to what he would like to have done to Joseph Street. Rennie responded that he would like the road and drainage completed. Attomey Scherer stated that while he understands the financial burden of the assessments, the greatest increase in land value will result when ultilities are installed. The calculation of land values completed by the City Assessor inclurded installation of utilities and. Street. Therefore, if the City does not install the utilities at the same time, the land values will not be as high as indicated by the Assessor. Further, it is more cost effective for the City to install utilities at the time of street reconstruction. Sy Prom stated it is his opinion that the improvements to Joseph Street will be cost prohibitive to the small industry causing them to move elsewhere. He also stated that he rented a portion of his facility to small businesses and when they out grew the space they didn't stay in St. Joseph, they went to another Industrial Park. Prom encouraged the Council to determine how fast St. Joseph should grow and how to a=mmodate the small industrialist. I The Council discussed cost participation and levels of participation. Ehlert stated the City is making an investment in the Industrial Park and as such should assist with the funding. The Council discussed the following cost share altemati~~s: Page 3518 May 6, 1999 I o Participate at the level equal to the cost saving of reduCÎng the road bed and elimination of concrete curt> and gutter I o 10%, 15%, or 20% of the project cost o Subsidize $ 100,000 Bettendorf stated that he can design the project with any street width and the Council may desire to construct the road at 30'. Twit stated that before he can make a decision on whether or not to proceed he would like to see the breakdown of ~Itematives. . II Further, he stated that he would like feedback from the property owners regarding the impact a larger contnbution by the City would have. Twit made a mOtion to table action on Joseph Street to the May 20, 1999 Council meeting. The motion 'was seconded by loso. Ayes: Hiemenz, Twit, loso, Ehlert, Niedenfuer Nays: None. Motion Carried 5:0:0 6'" Avenue NE (Northland Drive): Bettendorf stated that he has discussed with developer Terry Schmid the possible extension of a housing development if 6'" Avenue NE (Northland Drive) is extended (north of CSAH 75). Schmid is requesting a guarantee that the cost of the lot improvements will not exceed $ 11,000 per lot Bettendorf stated that the project can proceed even if Terry Schmid does not develop the adjacent property, and the cost for these improvements will be assessed to abutting property. The Council scheduled the public improvement hearing for May 27, 1999 at 6:00 p.m. I HousinQ Study - AdMark Resources: Mike Schoenecker appeared before the Council to present the completed housing study for St. Joseph and the surrounding Townships. I Schoenecker discussed the following: major employers, employment and' i unemployment data, population data by income and age, household data, buitding I permit data, housing stock, rental housing survey and housing demand. In summary, I Schoenecker stated that it appears as though the City has a lack of general æntal apartments and senior apartments. Ehlert stated the Council was seeking information in the study specific to St. Joseph. Schoenecker stated that he could easity obtain that information and would forward it to the Council. 1998 Audit. Kern DeWenter. Viere (KDV): Jennifer Thienes, auditor for KDV, presented the 1998 Audited Financial Statement and the Management Letter. The Management Letter induded the following comments: The City had a lack of segregation of accounting duties due to a limited number of office employees; the City needs to be aware and plan for year 2000; the City had insufficient collateral on deposits as of December 31, 1998 and the City should work with the finencial institutions on a monthly basis to assure sufficient collateral; the City did not have all transactions posted for 1998 or monthly æconciliation's completed. The City should allow the Deputy Clerk suffICient time to complete those items. I Thienes reviewed with the Council the current status of the General Fund, Bond Funds and Enterprise Funds and recommended the Council consider the following: o Annually review the water and sewer rates making sure they are covering costs and competitive with surrounding Cities o Consider combining all water related funds to assist with the management of the water fund Page 3519 May 6, 1999 Q Review the designated funds to determine if they are still needed I Overall Thienes stated the City is in a good financial situation and has approximately seven months of expenditures in reserves. Norwest Financial Advisors: Michael O'lawson appeared before the Council to present a financing proposal to the City for the purchase of the First State Bank building. The proposal presented was a lease purchase option. Under this funding scenario Norwest would enter into a ground lease agreement. The Cit'f would maintain ownership of the building and would annually renew the debt. This debt can exteoo~ over 10, 15 or 20 years and can be prepaid after 3 years. O'Lawson stated that the lease purchase financing option can be completed in a short period of time. Scherer questioned how this type of debt affects the City finanCiall~'. O'lawson stated that a lease purchase agreement is considered non statutory debt. Further, the repayment of the lease is subject to levy limits and must be budget1ed for every year. The Council accepted the information and stated they would consicler the lease purchase option as well as other funding mechanisms. The Council agreed to establish a special meeting for May 13, 199B at 7:15 p.m. to receive a funding proposal from Juran and Moody for the purchase of the Bank and remodeling of the existing City Hall. First State Bank Purchase - City Hall: Hiemenz presented the Council with information regarding the final negotiated price with the First State Bank. Hiemenz stated that the . Bank has agreed to sell the bank for $ 535,000 and purchase a portion of the Roske Property for $ 1.90 per square fool Further, Bank President Reinhart has expressed interest in selling some of the furniture in the bank. At this time the Bank is looking for a commitment from the City so they can move forward with the design of a new bank. I Loso questioned if the Council is aware the building is 20 years old and has a flat roof. Hiemenz responded that the HV AC has recently been updated with a state of the art system. Additionally, the roof has been repaired and is in good condition. Niedenfuer also expressed concern with purchasing an older building with a flat roof. Twit questioned whether or not the Township has been consulted wi1h regard to negotiations of the sale of the Roske Property as they are equal owners. Hiemenz stated that he has not contacted the Township, however, they are aware of the sale and have talked to the Bank President. Twit made a motion to move forward with the purchase of the Rrst State Bank and to sell a portion of the Roske Property to the Bank for $ 1.90 per square foot contingent upon the Township approval. The motion was seconded by Loso. Ayes: Hiemenz, Twit, Loso, Ehlert, Niedenfuer Nays: None. Motion Carried 5:0:0 Hiemenz stated that he would contact the Township and present the necessary information. Scherer indicated that he would draft the purchase agreements for both transactions and forward the draft purchase agreement to the Township fer the sale of a portion of the Roske Property. I Mayors Report I ¡ I , , Page 3520 May 6, 1999 i ¡ Pinecone Road SteerinQ Committee: Hiemenz reported that St. Joseph has been asked to be part of a steering committee updating the transportation plan to include the construction of a new street connection between Pine Cone Road in Sartell and 54th Avenue North in St. Cloud. Ehlert made a motion to appoint Mayor Hiemenz and EDA Director Chad Carlson to the steering committee; seconded by Twit. i Ayes: Hiemenz, Twit, Loso, Ehlert, Niedenfuer Nays: None. Motion Carried 5:0:0 Council Reports TWIT Miscellaneous: Twit requested the City Offices contact Mark Zimmer, La Playette, to inform him that the Council will consider his Outdoor Liquor Permit on May 13, 1999. EHLERT I Park Board MeetinQ Request: The Park Board is requesting authorization to schedule a special meeting of the Park Board to meet with the 1999 Summer Recreation Directors on May 11, 1999. Niedenfuer made a motion to approve the special meeting request of the Park Board; seconded by Twit. Ayes: Hiemenz, Twit, Loso, Ehlert, Niedenfuer Nays: None. Motion Carried 5:0:0 Miscellaneous Park Proiects: Ehlert reported that the Concession Stand at Millstream Park is nearing completion and will be in operation for the softball season. The Memorial Park improvement project will not begin until late June. Twit questioned if the issues of the Public Works Director have been resolved. Weyrens reported that prior minutes of City Council meetings do not address who pay for the extension of power, to the new building. Loso suggested Ehlert contact NSP to see if they would be willing to donate the cost of providing power. Ehlert stated that the Lions haVe already received significant donations and the project is anticipated to come in under budget. LOSO No report NIEDENFUER Healthv Communities Partnership: Niedenfuer reported that the Healthy Community Committee is sponsoring the first annual Fruehling Fest on May 15, 1999. The event will consist of a parade beginning at 2:00 p.m. honoring the CSB Basketball Team. The parade will end at the Community Fire Hall with a Ice Cream Social. Niedenfuer encouraged the Council to attend the festivities. I Niedenfuer requested the Council waive the fee for advertising the event on the Community Sign. Ehlert made a motion to waive the advertising fee on the Community Sign for the Fruehling Fest; seconded by Twit. Ayes: Hiemenz, Twit, Loso, Ehlert, Niedenfuer Nays: None. Motion Carried 5:0:0 Page 3521 May 6, 1999 The next meeting of the Healthy Partnership will be on May 19, 1999 at the College of St. Benedict. Farmers Market: Niedenfuer questioned if the City could extend h~ City liability coverage on private property for a Farmers Market. The potential sites are the former Krebsbach Garage site and the St. Joseph Parish Church Parking Lot. Weyrens stated that she will contact the insurance agent and report back to Nieden1'uer. Adìourn: Loso made a motion to adjourn at 10:45 p.m.; seconded by Ehlert. Ayes: Hiemenz, Twit, Loso, Ehlert, Niedenfuer Nays: None. Motion Carried 5:0:0 ~u~: Deputy Clerk I I I