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HomeMy WebLinkAbout2000 [03] Mar 16 , I I Page 3707 Man:h 16,2000 I City of St. Joseph City Council Meeting 3/16100, 7:00 PM 1_ Call to Order. Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met on Thursday, March 16, 2000 at 7:00 p.m. in the St. Joseph City Hall. ! ! Members Present: Mayor Kenneth J. Hiemenz, Bob Loso, Cory Ehlert" Ken Twit, Mary Niedenfuer, and Deputy Clerk Judy Weyrens and Clerk-Administrator Cari Schmidt. others Present: Monte Eastvold, Hub Klein, Mike Kittridge, Joe Bettendorf, EDA Director Chad Carlson,cJerry Lahr, 'Mitch Anderson, Sergeant Jeff Young and Dennis Dalman. 2. Approve Agenda. Schmidt stated that there is one addition to the agenda. The Lions brought in their 2 year renewal for their pull tab license for Loso's Main Street Pub and the EI Paso. Schmidt stated that this would have waited until the next agenda but that the Lions need it submitted to the State by April 6th. It should be a routine item and could be added to the consent agenda. Schmidt also asked if item 14, the City and Township lot item could be bumped up in the meeting so Joe Bettendorf would not have to wait until the end of the meeting to make comments. Loso made a motion to approve the changes to the agenda, seconded by Twit. The motion passed unanimously. Twit made a motion to approve the agenda, seconded by Loso. The motion passed unanimously. I 3. Public Hearing - Cedar Street Turnback - Schmidt read the notice of the public hearing. 'The Steams County Board of Commissioners will be holding a special meeting in conjunction with their regular City Council meeting at the City of St. Joseph City Hall on March 16, 2000 at 7:00 PM for the purpose of receiving testimony conceming the Board's proposal to tum back Right of Way as described as follows: all that part of Highway Right of Way lying norther1y of a line drawn 95' parallel and perpendicular to the center1ine of the east bound lane of CSAH 75 as traveled from the westerly Right of Way line of 1" Avenue NE to the north south Quarter line of Section 10, T124N, R29W. Also, all that part of Right of Way lying souther1y and adjacent to Lots 1-7, Pete Loso's Addition, Section 10, T124N, R29W. If this Right of Way is revoked by the Board, it will revert to the City of St. Joseph. Additional information can be obtained from the Steams County Highway Dept., 455 28th Ave. So, Waite Park, MN 56387, telephone (320) 255-6180." Jerry Lahr, Steams County Right of Way Engineer, and Mitch Anderson, Steams County Engineer, were present to answer any questions from the public. Loso asked about future plans to turn back that portion of Cedar that runs in front of Subway and Kay's Kitchen. Lahr stated that at this time, the County has no plans to tum that portion of the road back to the City. Ehlert asked for clarification of where this tumback starts and stops. Twit stated that it appears as though this portion is Larger than what they originally anticipated. Mitch Anderson stated that the agreement was that the County would not be maintaining the frontage road. This was contemplated when this was initially brought up, but the paperwork was never completed and the hearing néver held. I Hiemenz asked Anderson what action they needed from the Council at this time. Anderson explained the process. Ehlert made a motion to accept the aforementioned parcel as turned back to the City of St. Joseph. Niedenfuer seconded the motion and it passed unanimously. I 4. Public Hearing - Creation of a Redevelopment Project Area - Schmidt read the notice of public hearing, which states: "Notice is hereby given that the City Council of the City of St. Joseph, Minnesota, will hold a public hearing on Thursday, March 16, 2000, at a meeting of the Council beginning at approximately 7:00 PM, Central Daylight Savings Time, at the St. Joseph City Hall, 21 First Avenue NW, St Joseph, MN, relating to the proposal of the St. Joseph Economic Development Authority to establish a Redevelopment Project Area in connection with the acquisition of certain land and the existing building thereon to be Page 3708 March 16,2000 remodeled, constructed and equipped for use as a city hall (the "Redevelopment Project Area"); and adopt the Redevelopment Plan for the Redevelopment Project Area (the "Plan"); all pursuant to and in conformity with applicable law, including Minnesota statutes, Sections 469.001 through 469.047 and 469.090 through 469.1081. A copy of tile relative documentation proposed to be considered at the hearing will be on file and available for public inspection at the office ofthe City's Clerk-Administrator- Treasurer at the st. Joseph City hall at least 10 days prior to the public hearing.~ I Carlson stated that the redevelopment plan is for the purchase and construction costs for the new City hall. There is an actual dollar figure quoted in the plan. The EDA will be financing this project on behalf of the City. Carlson stated that Monte Eastvold is present and will be discussing the different bond options that are available to the City. Schmidt stated that before Monte makes his presentation that she would like to mention that the City received a letter from its bond counsel. Initially, it was thoughlt that we could only bond up to $1 million. Our bond counsel has informed us that we can in fact bond up to $1.6 million dollars. The $1,235,000 General Obligation Bonds of 1997 for the fire hall are exempt from our net debt calculation. This allows the City to bond for more than we initially thoughlt. Monte Eastvold, of Juran & MoOdy, addressed the Council. Eastvold explained that the Council has before them six different scenarios to consider: $1 million at 15 years and 20 years, $1.3 million at 15 years and 20 years, and $1.6 million at 15 years and 20 years. Eastvold explained that if the Council issued a $1 million dollar bond over 15 years, the impact on a $100,000 home would be $98.29/year, or $8.191 month. Over 20 years, the impact on a $100,000 home would be $82.91/year or $6.91/month. Eastvold explained that if the Council issued a $1.3 million dollar bond over 15 years, the impact on a $100,000 home would be $128.23/year or $10.77/month and that $1.3 million over 20 years for a $100,000 home would be $109.67 per year, or $9.13 per month. Eastvold explained that if the Council issued $1.6 million dollars over 15 years, the impact on a $100,000 home would be $158.87/year or $13.24 per month, and over 20 years the impact would be $134.76/year and $11.231 month. I Ehlert asked if we are hand tying other EDA projects by using all of our bond capacity for this project. Eastvold explained that this could only be used for public projects of this type and not private sector development projects. Ehlert stated that he is hesitant to do 1.6 million. However, he stated that the City should be looking at doing this righlt the first time and getting away from the band aid approach. Ehlert is concemed however that we don1 build the Taj Mahal. The citizens will be asking for some type of retum on their investment and we have to be able to justify the expense. - Schmidt stated that even if the Council authorizes the City to issue $1.6 million in bonds, the Council would not have to issue that much. We should have a better idea of the actual remodeling costs before the actual bond sale date. By authorizing the $1.6 million, we are just allowing ourselves to go that high if necessary. Schmidt also stated that it's important to remember that the funds are not solely being used for remodeling. Oiler $500,000 is being used fOr the actual purchase ofthe land and building. Twit expressed concem that if the City would bond for 1.6 and we only actually spimd1.1 there would be serious penalties for the over bonding. Eastvold explained that there are repercussions for over issuance, but that it sounds like we can get closer to the actual number in the next few weeks. Before the bonds are issued, we should have a clearer understanding of how much, money will be needed. It was questioned why the City must decide this now. Eastvold explained that the' inter!išf rates are expected to go up. In addition, we cannot issue the bonds until we actually oWn the property. I Page 3709 March 16,2000 I Twit made a motion to authorize the City to issue-up to $1.6 million dollars at 20 years, with the idea that this number will most likely be lowered as we get clearer numbers for our remodeling costs. Niedenfuer seconded the motion. Twit stated that this gives us a working window in which to decide. Ehlert stated that the City will soon be dealing with another issue in its maintenance facility. He suggested that perhaps the City should be consìdering including the maintenance facility in this bond issuance and killing two birds with one stone. If the City really wants to get away from the band aid approach, maybe this is the time to do this too. Ehlert asked how much money we have already in the Maintenance fund for this. I Schmidt stated that if the bonds were going to be issued for this as well, we would have to have a site already picked out. Eastvold explained that the City would actually have to own the property before the bonds could be issued. Carlson added that the maintenance facility would also have to be included in the redevelopment project area and that we probably wouldn't want the Maintenance shop located in the center of town with City hall. Carlson stated that we would basically have to start from scratch with the documents that have already been passed and signed. Loso stated that most of the maintenance department likes it where they are already. Ehlert stated that perhaps then if there isn't a new facility picked out, we should stin bond for the full amount and used the remainder to fix up the current maintenance facility. Eastvold stated that this wouldn1 be possible as these funds can only be used for this project. Schmidt stated that it might be better not to do anything now than to expend some funds now for a fIX up and then ask for a new facility later. It might come across better to the public to just waít. Hiemenz called the question. The motion to authorize the issuance up to $1.6 million dollars i at 20 years, with the idea that this number wilL most likely be lowered as we get clearer' I numbers for our remodeling costs passecf unanimously. I I Ehlert stated that he is just trying to be forward thinking and avoid the band aid approach that' the City llas been using for so long. Ehlert stated that he thinks that the City paid too much for the bank in the first place. It all comes down to dollars and cents. Ehlert stated that it is just his opinion but that the City has to quit using the friendly approach to business. He said he thinks that Greg Reinhart of the bank would agree with him. There are no nice guys in business. If the bank is going to be staying in the building after we own it, then some sort of compensation should be had. Weyrens explained that the bank made compromises in lieu of not paying a lease, such as not charging interest to the City during the time before the second payment comes due. The bank is allowing the City to pay a portion at closing, and the remainder 45 days later. Ehlert stated that he would like to see the numbers that show that this is a benefit to the City. He is just being business minded and again stated that he thinks that Greg Reinhart wouldn1 have a problem with this. 5. Public Hearing - Delinquent Utility Bill Hearing - There were no residents present for this, item. ' I 6. CitylTownship owned lot on 4'" Ave and Minnesota - A letter was sent by st. Joseph Township regarding the jointly owned lot on 4th and Minnesota. The letter read: "The Town Board has reviewed the summary of the Roske Property Funds presented to them on February 15, 2000. If the city's portion ofthe projected fund balance has not been budgeted for another proÄect, the Town Board would be willing to negotiate on the present jointly owned comer lot on 4 h Avenue and Minnesota Street. The original price of $11,000 will again t>e offered to the City if the lot is used for public use. The Township would receive no retum on their investment by donating the interest on the St. Joseph Township money that had been invested in the property for fIVe (5) years. If the property is used for other than public use, the 50% ownership reverts back to the Township bringing the Township back in the negotiation. The Town Board is willing to negotiate on an outright sale. Please review this matter and let us know your decision." Loso stated that there is no benefit for the City to own the lot. If we , I I i Page 3710 March 16,2000 change the use to anything other than public, they are asking us to give them 50% of the funds from the sale. Hiemenz stated that it is currently zoned public use. If anyone wanted to put something that doesn1 fit those zoning requirements on that land, they would have to come and request it from the City. Twit agreed that there is no benefit to do this now just so that we can pay them if it sells. Loso made a motion to leave the property in its jointly owned status with the Township. Niedenfuer seconded the motion and it passed unanimously. I Bettendorf requested a meeting with the Council prior to the meeting with the Township on the 3'" of Apnl. The Council decided to meet with Bettendorf on Thursday, March 30th at 3:30 PM to discuss 121 and the presentation to the Township. 7. Consent Agenda - a. St. Joseph Parish - 4 day Temporary 3.2 on sale liquor license for 4th of July Celebration b. st. Joseph Parish - Gambling permit application for July ;jd and 4th c. Uons 2 year gambling license renewals Twit asked why the Parish needed a four day liquor license for a two day event. Hub Klein addressed the Council and stated that beer is usually served on the day they set up and the day they take down. Twit stated that he has some concem about having City personnel and equipment there if alcohol is being served on those days. Niedenfuer made a motion to approve the Consent Agenda, seconded by Ehlert. The motion passed unanimously. 8. Approve Minutes -Ehlert made a motion to approve the minutes of March 2, 2000_ EhleIT seconded the motion and it passed unanimously. 9. Bills Payable and Overtime/Callouts - Weyrens reported that staff h,as another request that isn1listed in the bills. Last year the DARE fund paid for the laD school kids to go the Law Enforcement Center and would like approval to do the same this year. Loso made a motion to approve the funding of the Lab Schools bus trip to the Law Enforcement Center, seconded by Twit. The motion passed unanimously. Weyrens also reported that! the disbursement to Craig Bartson will be reimbursed by the Lions club. Loso asked how long the silt fence must stay in the pond. Hiemenz explained that it stays there until enough vegetation has grown to establish a natural barrier. I Weyrens also reported that St. Joseph, as well as other communities, are having difficulty with St. Cloud and their computer system. Staff is seeking authorization from the Council to begin discussions with Sartell about possibly linking to their system. There is a desire to create our own network with other communities. This would also serve as leverage in dealing with St. Cloud and their system. Sergeant Jeff Young stated that the biggest issue now is that we can't get a straight answer out of St. Cloud. Hiemenz stated that he knows that St. Cloud is working on the issue and that it will take some time. Young stated that another problem is that they want complete control of the information in terms of input and output. St. Cloud is essentially holding the system hostage now. Weyrens explained that all of the other Cities are in the same boat now too. This could be a good bargaining chip to deal with St. Cloud. Loso asked if staff would still come back to Council for final approval and staff said they would. Loso made a motion to authorize staff to begin discussions with Saffell about possibly creating their own computer network Twit seconded this motion and it passed unanimously. Twit made a motion to approve the bills payable 27344 through 28091. Niedenfuer seconded the motion and it passed unanimously. Twit made a motion to approve the overtime and callouts, seconded by Loso_ The motion passed unanimously. I 10. Public Comments on the Agenda - Hub Klein addressed the Council and stated that he had received a complaint from Fred Reber about the drainage into his backyard. Hiemenz Page 3711 March 16, 2000 stated that he spoke to Joe Bettendorf about it and that he would be taking a look at it. I Klein also stated that as it is getting warm again, there are going to be more kids out on skateboards and roller blades_ He is concemed that someone is going to get hit if the City doesn't do something about it. Mike Kittridge addressed the Council. He stated that his shop will be for sale and is curious to see if the City would be interested in purchasing ft. He stated that some of the Maintenance guys had already been out to take a look at it. If the City wants to buy the shop, he would sell it for $275,000. He is selling it because he can1 affOrd to have two places. It's 50' x 84' with an upper office. It's two years old and has 14ft. doors. There is a drain in the floor and a loading dock in the back. It's over 4000 square feet. It cost him $550 to heat it last year in total so it's pretty energy efficient. Kittridge stated he is open to any proposals or options. The new state mandated zoning is requiring him to move pretty fast. ' 11. Treasurer's Report- Weyrens reported that as of December of 1999, the General fund has a balance of $951,969.41. There is approximately $74,000 in the lift station fund. She explained that the City is carrying a balance of $1,229,222.26 (twelve months worth of operating expenses) which is included in the designated reserVe. Twit stated that he stopped by the office to clarify some- questions he had on the Treasurer's Report. It's a little confusing as there are salaries that aré split between departments. Twit expressed concern with some areas where we are over budget and others where we come in under. Weyrens explained that especially in regard to the Maintenance Department, it is impossible to predict to a high degree of certainty how much money will be spent on areas such as snowplowing and overtime, etc. These items are determined by the weather and the amount of activity that is needed, which makes it hard to predict. I Twit stated that if the departments are not being held to their budget in certain areas and are just allowed to take it from other parts of the budget, there will be no incentive to make an effort to watch the dollars being spent. Twit also stated that he is bothered that the City does not budget for depreciation. Weyrens explained that we can budget for depreciation, but that the numbers will always be six months behind. I Hiemenz questioned whether or not the Mayor was covered by Worker's Compensation. Weyrens explained that this is sométhing that the Council discussed and voted on last year. The City was given a rate for the City Council and the Mayor. The rate is different for everyone and higher for the Police, Fire, and Water and Sewer departments: Loso made a motion to accept the Treasurer's report, seconded by Twit. The motion passed unanimously 12. St. Joseph Brochure - Cflad Carlson presented the new promotional I brochure that was put II together by the Star City Commission. Elness Designs did the layout and design work. The City has the software to reproduce the inserts at the back of the brochure, as this information is likely to change. This will ensure that the brochures do not become easily dated. The brochures are free to anyone that would like a copy and can be obtained at City Hall. The Star City Commission is very pleased with the results. The Council expressed their appreciation to the Star City Commission and stated that the brochures looked fantastic. I Carlson stated that as long as he is there, he is requesting that the Planning CommissiOn attend a training session. There is enough money in the budget to send them to training if they waive the per diem. Cartson stated that there is an introductory class and an advanced session. They would like to send everyone to the beginner's class. Twit stated that it's important that the Planning Commission is making educated decisions. Twit made a motion to send all of the Planning Commissioners to the training session and pay their per diem. Ehlert seconded the motion and it passed unanimously_ Page 3712 March 16,2000 13. Amended Purchase Agreement for First Stale Bank Property - Schmidt stated that the amended purchase agreement authorizes the City to pay $350,000 at dosing, and the remainder of $195,000 within 45 days of dosing. Loso made a motion to approve the amended purchase agreement, seconded by Niedenfuer. The motion passed unanimously. I 14. Police Department Vacation Policyl Employee Vacation Policy - Schmidt stated that the Police Department has submitted a request dealing with their vacation policy. As long as this was going to be on the agenda, Schmidt thought it would be a good time to deal with the vacation policy for the other employees as well. There are a number of employees that have their anniversary dates coming up and a few that have already passed. Loso stated that in the past we have faced this issue over and over. There are always extenuating circumstances that make it impossible for the employees to get their vacation time down. Twit stated that the employees were in agreement with this last year when it came up. Loso stated that they address this year after year and that it's time that the City just put its foot down and stick to the policy. Schmidt stated that even ifthere was agreement from the employees, there have been a number of events that could not have been foreseen by the employees. The City was without an Administrator for 9 months. The City has been without a Police Chief since October. One of the Maintenance employees has been out for surgery. These are all extenuating circumstances beyond the employees control. Weyrens added that although no-one told her that she couldn't take vacation, there was an enormous amount of work and not very many people to do it. Schmidt stated that the City has very dedicated and hard working employees and they should not be punished for that. Ehlert stated that he agrees, but there has to be a time when the Council sticks to the policy. Schmidt stated that the Personnel Manual states that if the employees do not feel they will be able to take their vacation by their anniversary date, that they should approach the Personnel Committee. As there is no longer a Personnel Committee, Schmidt wanted to bring this forward for Council consideration. Ehlert stated that he was never in favor of getting rid of the Personnel Committee. Schmidt stated that regardless, she sees this as part of her position, whether the Personnel Committee was in existence or not. I Twit stated that the employees should come back to the City Council with a proposal outlining how they plan to use theirvacation-or some kind of a buyout proposal. The numbers need to come down and there will always be some sort of ext,enuating circumstances. Schmidt stated that the Police are also facing this issue. They are requesting that something be done that is similar to what was allowed for the other employees last year. Sergeant Jeff Young submitted a request to the Council: "As ofthis year, along with the new contract, we will be accumulating vacation hours as we eam them with each pay period. However, we all received the hours we had eamed last year plus the carry over we had. The problem arises in that most of the officers in our department will have too many hours to try to get down to the 40 hour carry over allowed in the union contract. For myself, it would amount to over three months vacation by the end of the year 2000. What we are asking, is that we be allowed to œrry over 200 hours this year and 100 hours in 2001. By 2002 we should be back to the 40 hour requirement. We are not asking for something out of the ordinary but just that we be allowed to scale the vacation back over two years as was done for the other employees when they went to the present system of earning vacation. I am requesting this clarification at this time so that we are not left with everyone scrambling to get their vacation in prior to the end of 2000 or losing it: Twit stated that the Police are asking for what the rest of the employees asked for last year. They are one year behind because of the union contract. Young pointed outthatthis is really only an issue for the long term employees, himself, Brad Meyer and Jean Gustin. The rest of the officers are too new to have that much of an accrual. Twit made a motion that Jean Gustin, Brad Meyer and Jeff Young be allowed to carry over 200 hours this year, and 100 I I Page 3713 i March 16,2000' hours in 2001, with the understanding that by 2002, they would be back'to the 40 hour requirement. Ehlert seconded the motion and it passed unanimously. 15. Mayors Report - Hiemenz reported that he had received a number of complaints that he wanted to report. AI Kramer is reporting rust in his water. Dick Taufen, the Public Works Directorwill be looking into that. Fred Reber is complaining about drainage into his yard, and Hiemenz stated that he spoke to Joe Bettendorf about looking into the problem. Hiemenz reported that we will be receiving a letter from St. 'Cloud regarding costs and payment schemes. They would 1ike our Council to approve something before it actually goes before the St. Cloud City Council. Hiemenz stated that the City would be investigating floating a bond to pay for the expansion. Hiemenz reported that he attended Borgert's open house. He also reported that there will be a meeting with MTC to discuss bus service to St. Joseph at City hall on March 28'" at 10:00 am. This meeting will also be televised. 16. Council Reports -Loso had no report. Niedenfuer reported that the Healthy Communities Partnership group had its first televised meeting. The meetings are now being held the second Monday of every month at the Fire Hall. Niedenfuer reported that Fruhlingfest has been scheduled for May 7'h at Millstream Park. There will be a variety of farm related fun activities. Niedenfuer also stated that the City might want to consider updating its letterhead with a graphic similar to the one on the St. Joseph Brochure. I Ehlert reported that he attended the St. We.ndel Township meeting. He is also meeting with the St. Wendel Athletic Association for the Park Board. Ehlert stated that he would like to take back his statement about the bank. In a typical buy/sell situation there would be some compensation in a situation like this. This has been a successful transaction so far though, and he doesn't want to say it hasn1 been. Ehlert stated that if he had been given more information up front by staff, he would not have questioned it at the meeting. Twit stated he had nothing to report but would like to encourage Schmidt to work out a reasonable vacation arrangement with the employees to get this issue resolved. 17. Clerk/ Administrator Report - Schmidt reported on a few upcoming meetings. 18. Miscellaneous and Announcement Items - There were no miscellaneous items to discuss. 19. Adjourn - 10:15 Loso made a motion to adjourn, seconded by Ehlert. The motion passed unanimously. Respectfully Submitted, C;s~ Cari Schmidt Clerk/Administrator City of St Joseph I