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HomeMy WebLinkAbout2000 [04] Apr 20 I ! Page 3723 April 20, 2000 I City of Sl Joseph City Council Meeting 4/20/00, 1:00 PM 1. Call to Order. Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met on Thursday, April 20th, 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 Clerk-Administrator Cari Schmidt and Deputy Clerk Judy Weyrens. I Others Present: Jennifer Thienes, Jason Kubat, Jim and Marianne Graeve, Brian and Sheryl Czech, Glenn and Dorothy Deulz, Larry Hosch, David Leapaldt, and Stephanie Howe. i Mayor Hiemenz reconvened the local Board of Review and Equalization meeting that was continued from Tuesday night. Hiemenz stated that the City Assessor made two changes to contested assessments. First, he reduced Donna Eveslage's property (84.53936.0.00) from $97,400-$95,400. Secondly, he reduced the City's property (84.53430.066) from $53,200. to $48,000. Loso made a motion to accept the changes made by the City Assessor. The motion was seconded by Ehlert and passed unanimously. Hiemenz closed the Board of Review and Equalization at 7:05 PM. 2. Approve Agenda - Schmidt stated that there were two changes to the agenda. First, item 4b on the Consent Agenda - the application for the outdoor liquor permit for the La Jam is no longer being requested. Second, the architects from GL T will be in attendance to make a presentation of a possible new layout for City Hall. In the interest of their time, Schmidt stated that it would be beneficial to place them directly after the KDV presentation. Ehlèrt made a motion to approve the agenda with the changes, seconded by Niedenfuer. The motion passed unanimously. I Hiemenz also reported that Gary Will the new Police Chief started on Monday and invited Will to the podium to speak. Will stated that he was enjoying his first week in St. Joseph and invited anyone who hadn1 already, to stop by and say hello. The Council welcomed Will. 3. KDV Presentation - Jennifer Thienes presented the Audited Financial Statements and Memorandum on Accounting Policies and Procedures and Internal Control. Thienes reported that in planning and performing the audit for the year of 1999, they considered its internar control in order to determine the auditing procedures for the purpose of expressing their opinion on the financial statements. They noted certain matters involving internal control and its operation that they consider r-eportable conditions. Reportable conditions involve matters relating to deficiencies in the design or operation of intemal controls that. in their judgment, could adversely affect the City's ability to record, process, summarize and report on financial data consistent with assertions of management in the financial statements. Thienes reassured the Council that "reportable conditions' sounds worse than they are. They found three this year: authorized check signatures, tack of segregation of accounting duties and the failure to designate an official depository. First, small Cities almost always run into the problem of the lack of segregation of accounting duties. This is mainly due to small staff sizes. The City Council is aware of this condition and has taken certain steps to compensate for the lack of segregation, but due to the small staff needed to handle all of the accounting duties, the costs of obtaining desirable segregation can often exceed the benefits which could be derived. However, the City Council and Administration must remain aware of the situation and should continually monitor the accounting system. , Second, the City has to designate its official oepositories on an annual basis. The City did not designate Juran and Moody as an official depository for the City's funds. Thienes noted that this looks like its being taken care of on this agenda. Finally, the third reportable <;QIIdition is in regard to authorized check signatures. Minnesota Statute Section 412.271 , Page 3724 April 20, 2000 Subd. 1 requires an disbursements made by the City be made on orders drawn by the Mayor and ClerklTreasurer. The City's Fire Department maintains a checking account, which issues checks without the signatures of the Mayor and the Clerk. To be in compliance with State Statutes, KDV recommends that the ClerklTreasurer and Mayor are made authorized signers on this account or that expenditures made from this account are paid out of the City's regular checking. I Twit asked if this was a new law because they have been doing this since the beginning. Thienes stated that this should have been caught on previous audits if that is the case. Thienes reported that the City's general fund continued a trend in a steadily increasing fund balance with a $203,526 increase in 1999. A majority of surplus can be attributed to $196,000 in proceeds received from the sale ofthe Roske property. The City also kept general fund expenditures $40,000 under budget, contributing to the fund's overall health. Thienes noted that of the $1,727,668 general fund balance at December 31, 1999. $1 ,222,015 is reserved or designated for specific expenditures, such as working capital, capital expenditures, fire and debt service. The unreserved, undesignated portion of the fund balance represents 4.5 months of expenditures. Thienes stated that they believe that this is a healthy fund balance to maintain. Thienes reported that while most sources remained relatively consistent from year to year, the increase in special assessments had an impact on the total percentages, which resulted in a decrease in the charges for services' percentage of total revenue. The City's general fund expenditures by department fluctuated very little as well. Public Safety remains the largest component ofthe general fundi expenditures. This consistency from year to year in both sources and uses of funds, is evidence of a structured, and adhered to, budget process. Thienes reported that the City's enterprise funds have shown improved performance over the past several years. The refuse fund has consistently shown a profit over the last four years, enabling the City to transfer funds to aid in the payment of revenue ¡x:>Ads. The Water fund changed as the City increased the water rates. The City went from an operating loss in 1996 to operating income the last three years. However, in 1999, operating expenses began to increase. While the fund remained profitable, its operating performance is once again trending downward, even when depreciation is taken out of the equation. Thienes recommended that the City continue to monitor rates as well as operating expenses to ensure the fund's profrtability in the Mure. The Sewer Fund has shown operating losses for each of the past four years. Due to the nature and cost of the sewer fund assets, it is difficult to establish sewer rates that are sufficient to cover replacement of the assets represented by depreciation expense. Ideally, sewer revenues should cover all operating expenses, including depreciation. However, depreciation of sewer fund assets is a difficult cost to recover from system users since there are relatively few users in relation to the cost of asset replacement. Attempting to recover such costs from users would likely result in unrealistically high sewer rates. KDV recommends that the City Council and Administration continually evaluate the performance of this fund to ensure the fund is at a minimum, covering operating expenses. I Twit asked if the City should be budgeting for depreciation. Thienes said ideally, yes, but that this is difficult to do. Ehlert asked how long it will take us to get to where we need to be. 'Weyrensreported that the City established a five year plan, and that it would most likely take the five years. Thienes stated that its important to remember that most sewer faciliti,es are built with grant dollars and that thosei!ollars are eventually used up. In the event that you would have to replace the facilities, the grant dollars would most likely be available again. This is subjective information that is hard to put down on paper to reflect the situation accurately. It's difficult to explain retained eamings when you have to factor in future grant dollars. I I Hiemenz stated that it mighi be a good idea to alert the Council to the changes that will be taking place in regards to GASB. Thienes stated that on June 10, 1999, the Govemmental Accounting Standards Board (GASB) issued Statement of Governmental Accounting , Standards No. 34 - Basic Financial Statements and Management's Discussion and Analysis! for State and Local Govemments. GASB no. 34 establishes new requirements for the annual financial reports of state and local govemments and represents the most significant change in the way financial information has been presented to the public in the history of govemmental accounting. , ! I I Page 3725 Aprit 20, 2000 I I I For the City of St. Joseph, GASB no. 34 implementation is first required for the year ending December 31, 2004. Prior to the implementation, they recommend the City review the requirements of GASB no. 34 and consider the implications of its many changes. Prior to the effective date, the City will be required to implement a number of new policies, practices and techniques as part ot the process. KDV has developed a plan that will help with the implementation in three separate steps. Each step presents issues we believe the City needs to address and prepare for the year 2004. ! Twit asked if this means the City should be budgeting more for -auditing costs and personnel time. Thienes stated that this certainly will take more time, but it's difficult to determine an exact number. Loso made a motion to accept the audit forthe year ending December 31, 1999 from Kern, De Wenter, Viere, Ud. Ehlen seconded the motion and it passed unanimously. I 4. GL T Presentation - David Leapaldt, from GL T Architects was present to address the Council. Hiemenz stated that ear1ier in the week, David, Stephanie, Schmidt and himself met to discuss some possibilities for the new City Hall facility. GL T presénted a new layout that seems like a workable plan and they asked if GL T could come tonight to present it. Leapaldt stated that the main change is to the lower level of the current bank facility. There are two conference rooms in the basement that are separated by a wall. This wall could be knocked out and the Council Chambers could be placed in this space. This space would be approximately 840 square feet and would seat 42-54 people. The conference table would move to the middle room where the break room was former1y. The current break room in the bank would remain as the break room for the new City hall. No changes were planned for the upstairs from the last schematic that was presented. The cnly change would be if the City would want to flip flop the Police Department and Administtation so that the Police would be on the side of the building with the drive up window. If the City would plan for a future attached garage for them, it would make sense to have the Police Department on this side of the building. I Twit pointed out a miscalculation in the preliminary cost projections. Leapaldt stated that the, General construction with removal of the driveup overhang and the modification to the lower level would be approximately $329,212. ! I Schmidt stated that she had Monte Eastvold run a million dollar issuance at a 1.0% growth rate and a 2.5% growth rate. A $1,000,000 bond issuance would provide $356,165 for the remodeling of City Hall. This would leave enough for contingency and not be an overage that would warrant a penalty for over issuance. A million dollar bond issuance over twenty years would raise a $1,000,000 homeowner's taxes $6.06/month or $72.71 annually (at a 2.5% annual tax capacity rate). A million dollar bond issuance at 1% for a $100,000 home would cause a $6.91 monthly increase or $82.91 annually. Schmidt stated thatthe main concem at the public meeting was that the project was too costly. This plan is considerably scaled back and is attractive for a number of reasons. First it puts everything in the same building and is a good use of the space. Second, the Council chambers has been incorPorated and makes the basement better utilized. Finally, the layout upstairs with the Police on the side of the driveup window would allow for future expansion. Page 3726 April 20, 2000 Ehlert stated that he would like to see a million dollar issuance at 15 years instead of 20. This will save a lot of money in the long run. Loso stated that the Council should present this plan at the public meeting on May 3"'. I 5. Approve Consent Agenda a. American Legion - Gambling Renewal b. Resolution approving Juran and Moody as an official City depository c. Mayor's appointment - Nicole Minier to the Cable Commission Hiemenz stated that the Mayor's appointment should read "interim" appointment. Loso made a motion to approve the consent agenda, seconded by Ehlert The motion passed unanimously. 6. Approve Minutes -Twit made a motion to approve the minutes of Apn7 6,2000. Ehlert seconded the motion and it passed unanimously. 7. Bills Payable and OvertimelCallouts Twit made a motion to approve the bills payable 28194 through 28236~ Loso seconded the motion and it passed unanimously. Loso asked when the City acquired the Northland Outlots. He knew we were in negotiation for them but hadn't heard one way or the other. Hiemenz stated that he was sure this was reported on. Schmidt stated that the City did take title to the lots and would provide the Council with that information-. Schmidt apologized if that information was not provided previously. Weyrens stated that staff is requesting a $2,000 expenditure for a computer for Chief Gary Will. There is $7,000 left in the computer fund now but staff is not sure how much the new system with Sartell will cost. Twit asked how many computers are there now. Weyrens explained that there are three. There hasn't been one in the Chiefs office for some time as Brad never used the office. Will explained that in the week he has been working, there have been moments where both office computers are being used to write reports. I Schmidt stated that there is also a need for the Chief to have a computer that only he can have access to and one that also has internet capability. Twit asked why a modem could not be purchased for one of the other computers until we move to the new building. Will stated that this would work for now. Loso stated that he trusts Weyrens computer knowtedge. Loso moved to authorize the expenditure for a new computer for Chief Gary Will. N'Jedenfuer seconded the motion and it passed unanimously. Twit questioned the handcuff training for Officer Gustin. Schmidt stated that she would get more information about the training and whether or not this was part of her new FTO position. Twit made a motion to approve the overtime and callouts, seconded by Loso. The motion passed unanimously. 8. Public Comments on the Agenda - There were no public comments on the agenda. 9. Glenn Deutz - Glenn Deutz addressed the Council reading a prepared statement concerning the City's interest for a community center. Deutz asked the Council whether or not they would staff and maintain a community center if the building was built. Maryanne Krebsbach has generously offered to donate the property to the City for such a facility, but the offer cannot be expected to be open forever. Deutz stated that he would be willing to contact potential contributors, but did not want to do so without the assuranÅ“ that the City would I I Pag~ 3727 April 20, 2000 support it once it was built. Deulz stated that he believes this is a quality of life issue for the City of St. Joseph. Loso stated that it would be difficult at this time to guarantee anything without seeing some numbers. How much will it cost to maintain and staff. The Council would be irresponsible if they committed to something they didn1 have more information on. Niedenfuer stated that she has strong feelings about this issue and seriously believes that a facility is needed for the seniors and the youth in the community. A dining hall, gymnasium and library would be a great addition to the community. Niedenfuer stated that there are lega considerations to look at as well, such as whether the City would be able to take title outright! or whether they would have to buy it tor a nominal amount. Twit asked for reassurance that they aren1 talking about a pool again. Deulz said no and added that they are mainly looking for a facility to serve a noon meal to the seniors. Catholic Charities would serve the noon meal. Niedenfuer added that the Great River Library System is looking for another branch location. Hiemenz stated that the City is currently supporting the Boys and Girls Club and this facility might be able to accommodate their increasing numbers. Ehlert stated that he agrees that this would be a great asset to the community, not only for the seniors, but also for the youth. He stated that the Park Board is looking at hiring a Director that may be able to help coordinate some of these activities. The Lions, Legion and Rec Association may also like to participate in such a project. I Ehlert asked whether the Council was ready to commit to this tonight. Twit stated that they can express favor for the project individually, but without more information they cannot make an official Council decision. Niedenfuer stated that perhaps this should be a ballot question in November. Hiemenz stated that maybe we should ask the people if they would be willing to support a Yz cent sales tax to support such a community center. Niedenfuer stated that this facility would also be a great space to do some community education. Deulz agreed to gather some more information tor the Council to consider and bring it back to them at a future date. 10. Goals ofthe Cable Commission - Tom Nahan of the Cable Commission addressed the Council. He stated that in December of 1998, the Cable Commission was established and set out goals for themselves. They have made a lot of progress during that time and are now looking for some direction from the Council. The initial goals were: to improve the quality of sound and picture, to increase the number and types of meetings bmadcasted and re- broadcasted, to document and receive approval for cable commission procedures and to increase the type and amount of communication from the City to the public. The Cable commission would now like to define new goals for the remainder ofthe year and needs some feedback from the Council on setting priorities. Should they work on the ability to edit broadcasts and display messages on screen during videotaped meetings. Should they increase the number of decks and video broadcast options? Should they upgrade the software system for bulletin board messages? Should they strengthen the broadcast range and propose giving additional cable company options to the public? Should they look into robotic cameras? I Niedenfuer stated that she thinks the Cable Commission has done an excellent job. She would like to see a classy introduction and perhaps the names of the speakers undemeath during meetings. Loso stated that he would like to see more of a pUblic commentary program where the department heads or Council gave information to the public, beyond what happens at the Council meetings. This could be done in a "call in show" format. I Page 3728 April 20, 2000 Ehlert stated that he would also like to say that they áre doing a great job. The meetings are definitely being watched and the City business is g'éfting a lot more exposure. Hiemenz stated that he would also like to thank the Cable Commission for their good job. Ehlert suggested that in light of the full agenda ahead, that the Cable Commission let the Council absorb the information and get back to them perhaps on an individual basis. I 11. Brian Czech - Czech addressed the Council regarding his neighbors barking dogs and the police enforcement of the problem Czech stated that they had been in front of the Council before when their neighbor asked for the variance for their third dog. At that time, the ponce Department told them that there was no record of them ever having complained about the dogs at that residence, when in fact they had complained a number of times. In the past month, they have called the police on two separate occasions. The first call the police never came. When he called to check on where they were, the officer told them that she parked a block away to see if she could hear the dogs. The second time they called the officer pulled into the driveway, which caused the dog to bark even more. Sergeant Jeff Young told them that the dog's natural inclination would be to bark when an officer pulls in the driveway. Czech stated that he was very disturbed as it seemed to him that Young was laughing at him and not taking the situation seriously. Czech stated that he is also disturbed as he believes that if this were a party house, the situation would probably be different. However, in his view, a noise violation is a noise violation. Czech stated that he has called twice already this year and at least six times the year before. Twit asked the Czechs what they would like done differently. Czech stated that this is a vicious dog and that something should be done. Twit stated that the argument could be made that as long as the dog doesn1 go into their yard, there should be no problem. Czech argued that the dog is not a taxpayer in the City. Czech stated he is concerned about the lack of a paper trail for this issue. I Niedenfuer stated that this has come up before and that rules are rules. This is no longer just a neighborhood issue. Czech stated that the Mayor told them to come to the meeting. Schmidt stated that the City now has a new Police Chief Gary Will. The City is hoping that some of the issues regarding policies and procedures as well as reporting will improve with Gary now on board. Ehlert stated the Police need to start sending a clear enforcement message. 12. Cory Ehlert - Ehlert vacated his Council seat and addressed the Council at the podium. Ehlert stated that he would like to request to go on the bag system instead of being required to use the can system for refuse. Although he does have a rental license because he has two roommates that he rents to, Ehlert argued that his situation is different than other landlords in town in that this is also his home. He and his roommates are hardly ever home and don1 produce enough garbage to justify the can system. The bag system would be much more economical. Ehlert stated again that his situation is different in that this is his primary residence. One of the concerns when the requirement was made was to prevent stockpmng of garbage. Since this is his home, the Council can be sure that he isn't going to do that. Loso stated that if he is asking to go on the bag system that Ehlert will have to certify to the Council that he is not stockpiling or hoarding garbage. Twit asked what would keep all of the other landlords from doing the same thing. Ehlert stated that, again, his situation is different because he has an owner occupied rental license. There are not very many of those in town. Hiemenz stated that the motion that was made regarding this on June 4, 1998 was for the "refuse rate for three units or less, Rental units - $15.00 per month, number of units based on number of kitchens." Hiemenz stated that this doesn't even mention the can or the bag system. Weyrens added that although it isn't mentioned, the intent was to require the landlords to use the $15.00 can system. I I I I Page 3729 April 20, 2000 Loso made a motion to allow Ehlert, as an owner occupied landlord, to move to the bag system and be given an exemption to the can system requirement. Loso added that these situations will be taken on a case by case basis and that this decision should set not precedent for the future. Twit seconded the motion and it passed unanimously. 13. Mayor's report - Hiemenz reported that following the last City Council meeting, he received a call from a resident thanking the Council for the way in which they handled the Rose Vtehauser rental situation. He wanted to be sure to pass that on to the Council. Twit stated that he also received that same phone call. 14. Council Reports - Niedenfuer reported that the Farmer's Market had been given a $5,000 grant from the Initiative Foundation. This is great news and also means that some of the funds that were part of the original HCP grant will be replaced. The Farmers Market purchased a used tent from a renaissance club that will be used for shade at the market. They are very excited about the great growers they have lined up as well as the programs. Niedenfuer also reported that she attended a contract for HCP in Uttle Falls. There are unlimited grant possibilities that HCP and other organizations can take advantage of. It's just a matter of knowing where to find them. Loso had no report. Ehlert had no report. Twit -stated that the EDA Board met and there is a lot of interest in the industrial park. Things are starting to fill up. 15. Clerk/ Administrator Report - Schmidt reported on a few upcoming meetings. The Rental Committee continues to meet every Tuesday from 5:00 PM - 7:00 PM. CORE is meeting on Wednesday, April 26th at 7:00 PM at Alumnae Hall. The public meeting for the new City hall facility will be at the fire halLat 7:00 PM on Wednesday, May 3"'. 16. Miscellaneous and Announcement Items - There were no miscellaneous items to discuss. 17. Closed Session - The Council broke for a ten minute recess. Schmidt stated that the Council would be going into closed session to discuss the AFSCME Labor Union Contract. At 10:45 PM, the Council reconvened. Hiemenz stated that the Council would meet again on May 17'h to continue discussions on the labor contract. 18. Adjourn -10:50 Loso made a motion to adjourn, seconded by Ehlert. The motion passed unanimously. Respectfully Submitted, ~S~ Carl Schmidt Clerk/Administrator City of S1. Joseph