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HomeMy WebLinkAbout2002 [10] Oct 29 I I I I 1 October 29, 2002: i Page 1 of 5' . " : ¡ Pursuant to due call and notrce thereof, the City Council for the City of SI. Joseph met in special session on Tuesday, October 29,2002 at 6:00 PM in the SI. Joseph City Hall. ¡ I Members Present: Mayor Larry Hosch. Councilors Bob Loso, Kyle Schneider, AI Rassier. Administrator JudyWeyrens. ¡ City Representatives Present: Financial Consultant Monte Eastvold, City Engineer Joe Bettendorf, CiJ Attorney John Scherer. i, 1 Others Present: Herb Bechtold, Tom Breth, Joan Breth, Jane Lowell, Mary Schroden, Mike Gohman, Joe Bechtold, John Cherne, Leonard Walz, Betty Walz, John Blommer, Heidi Pepper, Amy Schaefer. ¡ Wobeoon Trail. Snowmobile Use: Weyrens reported that she has received a letter from the Stearns I County Parks Director that if snowmobiles are prohibited from using any portion of the Wobegon Trail the funding received from the Department of Natural Resources would have to be returned. Stearns Cou~ty had scheduled a public hearing for November 5, 2002 to discuss snowmobile use on the Trail. However, since it has been determined that grant funding requires the allowance of snowmobiles on the trial, the i public hearing scheduled will not take testimony for the sake of making a decision as to whether or not i snowmobiles should be prohibited from using the trail. Rather, the hearing will focus on management 6f ~~ I I Vie West TIF Assionment: Weyrens reported that Vie West Steel and SI. Joe Development LLC are in'the process of completing all the paperwork for the Tax Increment Financing for the construction of a facility for Vie West Steel. As part of the documents, SI. Joe Development LLC is requesting the City reimburse Minnwest Bank semi-annually for the TIF payments rather than SI. Joe Development LLC. The TIF I authorized for Vie West Steel is the pay-as-you-go method and reimbursement will only be paid after the taxes are paid to the City. Loso made a motion authorizing the Mayor and Administrator to execute the Consent of Assignment Agreement as requested by SI. Joe Development LLC. The motion was seconded by Rassier and passed unanimously by those present. i I , Ordinance 71 - Proposed Amendment: Weyrens reported that the Del Win is sponsoring an event on I October 31, 2002 that would allow minors in the establishment. Under the current Ordinance this event could not take place. Before the Council at this meeting is an amendment to the Liquor Ordinance that'l would allow minors to be in a liquor establishment. The amendment would required that alcohol be purchased and consumed in a protected area that is gated and staffed to prevent minors from consuming alcohol. As stated at the October 17, 2002 City Council meeting the Police Chief and City Attorney hav~ reviewed the amendment and are requesting the City Council adopt the proposed amendment. ! Loso made a motion to adopt Amendment to Ordinance No. 71 as requested by the Police Chief and City Attorney. The motion was seconded by Rassier. ' Ayes: Hosch, Loso, Rassier Nays: None. Abstain: Schneider Motion Carried 3:0:1 County Road 121 Street Improvement: City Engineer Joe Bettendorf reported th'at three wells are not functioning on County Road 121 due to the construction project. The contract for the improvement does require the City to replace any wells that are lost due to the dewatering for the lift station construction. 1 Bettendorf stated it has been his experience that once the dewatering is stopped, the water pressure returns and the wells begin functioning. However, the wells have been shut down for over a week and I three wells have failed to come back. Therefore, Bettendorf presented the Council with two quotes for, ' restoration of the dried wells, with the low quote being submitted by Traut Wells. The cost of drilling a I well is based on the drilling depth and at this time it is uncertain as to how deep the wells will be. I I Loso made a motion authorizing the City Engineer to contract with Traut Well to restore the wells that are not functioning on County Road 121 as a result of the construction project. The motion was seconded by Rassier and passed unanimously by those present. If, October 29,2002 Page 2 of5 2002 Street Improvement - Proposed Interest Rate: Monte Eastvold of Northland Securities appeared before the Council to discuss the interest rate for the proposed assessments for 2002. When the City bonded for the 2002 Improvements, it was anticipated that the interest charged on the assessments I would equal 6%. This interest rate was used for cash projections and establishing the required levy. The Council at the October 17, 2002 Council meeting requested information on ~Ie effects of reducing the interest rate from the proposed 6%. Eastvold presented the Council with an illustration reducing the interest in onH-fourth percent increments. Eastvold stated that it is his experience that when Cities establish the interest for assessment it is typically 1 11. to 2 percent higher than the net effective rate of the bond issued to pay for the improvements. The net effective rate received by the City for the 2002 Improvement was 3.90% and the City is proposing to charge 6% for the assessments. The illustrations presented by Eastvold indicated that for each quarter of percent the interest rate is reduced the City would need to increase the levy approximately $ 50,000. Loso stated that the City has already established the budget for 2003 and changing the interest rate at this time would have a negative cash impact to the residents of SI. Joseph. Therefore, Loso made a motion to establish the interest rate for all the 2002 Improvements at 6% as originally proposed. The motion was seconded by Rassier and passed unanimously by those present. Northland Securities: Eastvold presented the Council with a brokerage agreement for Northland Securities. Eastvold stated that the former Juran and Moody public finance division has separated from the company and created a new division entitled Northland Securities. The brokerage agreement before the City Council would authorize the City to invest funds through Northland Securities. In addition to signing a brokerage agreement, the City will need to authorize a corporate re>solution identifying the clearing house used by Northland Securities. Loso made a motion authorizing the Mayor and Administrator/Clerk to execute the Brokerage Certificate form for Northland Securities and the Corporate Resolution. The motion was seconded by Ehlert and passed unanimously by those present. I 2002 County Road 121 Improvement. Sidewalk: Weyrens presented a letter to the Council for the Assistant County Engineer regarding the sidewalk design on the northeast corner of College Avenue North and Minnesota Street. The Council previously had requested Stearns County to a remove a portion of the sidewalk on the northeast corner of College Avenue North. Due to the lowering of the road, the new sidewalk has less than desirable slope. The County Engineer has stated that if the City would like the sidewalk replaced, the City Engineer would need to design the replacement and assume liability. Bettendorf stated that since the improvements to County Road 121/College Avenue are a County project, he is hesitant to design any construction. The project should be designed by Stearns County with approval by the City Council. The only way the sidewalk can be fixed is if the grade is dropped. Loso stated it is his opinion that the City Engineer and Attorney should resolve this matter with Stearns County. The City Council has been discussing this matter and there is no resolution in sight. Loso made a motion directing the City Engineer and City Attorney to m,eet with representatives of Stearns County to resolve the sidewalk construction issue on the northeast comer of Minnesota Street and College Avenue. The motion was seconded by Hosch and passed unanimously by those present. Mayor Hosch recessed the meeting at 6:50 PM and reconvened the meeting at 7:00 PM. County Road 121 Improvement. Assessment Hearino: Mayor Hosch called the hearing to order and stated the purpose of the hearing is to consider the proposed assessment for the improvement of street, storm sewer, curb and gutter, water and sewer for the improvement of County Road 121 (College Avenue I South from Minnesota Street going south approximately one mile to the SI. Joseph Township) and also street, curb, gutter, sidewalk, storm sewer, sanitary sewer and water main for the improvement of College Avenue North from Minnesota Street to Ash Street I I I " I October 29,2002 i Page30f5 , ¡ Mayor Hosch turned the floor over to City Engineer Joe Bettendorf. Bettendorf :presented the Council I and those present a financial breakdown of thë projëct. The breakdown is as fdllows: Total Project Cost ! Steams County Cost Share City Cost Share $ 939,191 $ 1,555,224 Construction cost Engineering Financing Contingency ROW Acquisition $ 1,043,583 233,284 77,761 77,761 122,835 Revenue Projections Special Assessments State Aid Funds Grant Subsidy Connection Fees Enterprise Funds $ 975,483 280,000 o 73,470 737,912 Assessment Rates Street 55 / ft Sanitary Sewer 3,440 / ft Water main 3,680/ ft Bettendorf stated that while the project is behind schedule the Stearns County Engineer has assured him that blacktop will be laid this year. If the pavement does not meet industry standards after the winter I months, the contractor, at their cost, will be required to remove the biacktop ani construct a new base1 Heidi Pepper of SEH presented the Council with information regarding the application of grant funds for the improvements illustrated above. Pepper stated that the City received a $ 425,000 grant from the i Department of Trade and Economic Development to abate assessments for low to moderate income i persons. Pepper stated that she has been retained by the City to administer the grant and verify , incomes of qualifying residents. She has finished the income verification and eight residents have I qualified for assessment abatement. Pepper clarified that the income level used to determine eligibility is based on the Federal Housing and Urban Development guidelines. I , At this time Mayor Hosch opened the hearing for questions and comments from, those present. John Bloomer of 612 College Avenue North questioned if the City looked into grants other than the one that benefits only the low to moderate income. I Bettendorf responded that the City submitted a grant application in 2000 that included a larger ¡ area and was not income based. However, since the grants are extremely competitive, the City was not successful. DTED indicated that the grant application included too much future growih and did not ' provide enough immediate relief. i Mary Schroden of 821 Col/ege Avenue North questioned when the assessment must be paid before interest accrues. ' Weyrens stated that residents have the option of paying part, all or none of the assessment. Any portion of the assessment paid within 30 days of the date of adoption of the assessment will not be i charged interest. All assessment balances outstanding on November 30, 2002 will be charged interest starting from October 29. i , I Mary Schroeden of 821 College Avenue North questioned how the City can assess residents when th~ project is not completed. . October 29,2002 Page40f5 Bettendorf responded that it is not unusual for a project to be comple,ted before the final assessment hearing. Many times the final wear course of bituminous is not laid until the spring, allowing I the road to settle. Bettendorf further stated that if the City would wait until the project is completely finished before assessing the property owner, capitalized interest would need to be included when bonding so that the City could make the first bond payments. Capitalized interest would significantly increase the assessments charged to the affected property owners. City Attorney John Scherer stated that Minnesota Statues grants municipalities to assess projects when the cost of the improvement can reasonably be calculated. At this time the City has the final cost for the project and is using their statutory authority to assess the cost back to the property owner. Ideally the City would prefer to assess a project that is complete but that is not possible in this case. Jim Meyer of 905 College Avenue North questioned if the hookup fee can be assessed over the fifteen year period. Bettendorf stated that he believes the entire amount due on each parcel can be assessed over the fifteen year period. Weyrens clarified that the water and sewer access charge cannot be assessed and must be paid before connection is made to the water and sewer system. The trunk water and sewer fee can be assessed if the property owner chooses. John Bloomerof612 College Avenue North questioned if residents will be able to connect to the water and sewer system this fall. Bettendorf responded that they are hoping to finish the installation and pass the required testing this fall. Jim Meyer of 905 College Avenue North questioned if the residents affected by the improvements would receive a portion of the liquidated damages charged to the contractor for not meeting the completion date. Hosch stated that the Council has not been informed as to how much or when they will receive a portion of the liquidated damages. Hosch stated that speaking for himself only, he would agree to cost share the damages in the same manner that the County does. The County should establish a policy and I Hosch stated he would support a policy adopted by the County. Bettendorf stated that while the contractor is being penalize for each day he is late, the City does not know what portion they will receive. This matter could be tied in the court system for many months. Scherer stated that the City has the ability to revise an assessment roll after it has been formally adopted. In the event the City receives a portion of the damages, the Council must determine how the funds will be applied. If it is decided to return a portion to the affected property owners, they would be notified and the assessment roll revised. Loso stated that while it would be a nice gesture to return a portion to the residents, who would be refunded -- the residents that are being assessed, all the property owners on 295'" Avenue, or every tenant in Whilshire? Mary Schroden stated that it is her opinion that only residents that are directly involved in the project should receive a benefit from the penalty. Herb BechtlDld concurred and stated that the residents along 295'" Street had the opportunity to be part of the project and declined to do so. Therefore, they should not benefit in the refunding of any liquidated damages. Meyer questioned how the residents will be notified when the City receives a portion of t7he damages. Hosch stated that it would be an agenda item and residents should watch the agenda postings. Scherer further stated that if the assessment roll is amended each property owner would be notified. Mary Schroden of 821 College Avenue North questioned if the improvements will increase her property valuation thereby increasing her property taxes. Scherer responded that she should contact the City Assessor Ollie Lesnick. Loso stated that residents have the opportunity each spring to question their market valuation. Therefore if she feels that the valuation was increased unjustly due to the project, an opportunity is avai,lable for contention. Rassier made a motion to close the public hearing at 7:45; seconded by Loso and passed unanimously by those present by those present. I I I I October 29, 2002 Page 5 of 5 Rassier made a motion to adopt Resolution 2002-_ adopting the final assessment roll for the I 2002 Improvements to College Avenue/ County Road 121. The motion was seconded by Loso and passed unanimously by those present. Resolution 2002-_ Resolution Adopting Assessment County Road 121 WHEREAS, pursuant to proper notice duly given as required by law, the council has met and heard an'd passed upon all objections to the proposed assessment for the improvement for the street, storm sewer, curb and gutter, water and sewer for the improvement of County Road 121 (College Avenue South from Minnesota Street going south approximately one mile to the SI. Joseph Township) and also street, curb, gutter, sidewalk, storm sewer, sanitary sewer and water main for the improvement of College Avenue North from Minnesota Street to Ash Street. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH, MINNESOTA: 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is I hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. ¡ 2. Such assessment shall be payable in equal annual installments extendihg over a period of 151 years, the first of the installments to be payable on or before the first Monday in January 2003, and shall bear interest at the rate of six percent per annum from the date of the adoption of this assessment i resolution. To the first installment shall be added interest on the entire assessment from the date of this resolution until December 31, 2003. To each subsequent installment when due shall be added interest for one year on all unpaid installments. ' , 3. The owner of any property so assessed may, at any time prior to certification of the assessme¡'t to the county auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the city treasurer, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of this resolution; and he may, at any time thereafter, pay to the city I treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 3,1 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. . I 4. The clerk shall forthwith transmit a certified duplicate of this assessment to the county auditor to be extended on the property tax lists of the county. Such assessments shall be collected and paid ovef in the same manner as other municipal taxes. Final Assessment Notice: Weyrens stated that all residents will be mailed a finèl assessment notice indicated the assessment amount and when the assessments are due. Adiourn: Schneider made a motion to adjourn at 7:50 PM; seconded by Loso and passed unanimously by those present. ~~c~ I THIS PAGE INTENTIONALLY LEFT BLANK I I