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HomeMy WebLinkAbout2015 [08] Aug 17 August 17, 2015 Page 1 of 4 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Monday, August 17, 2015 at 6:00 PM in the St. Joseph City Hall, opening the meeting with the Pledge of Allegiance. Members Present: Mayor Rick Schultz, Councilors: Dale Wick, Bob Loso, Matt Killam, Renee Symanietz. City Administrator Judy Weyrens City Representatives: City Engineer Randy Sabart, Police Chief Joel Klein, Finance Director Lori Bartlett, Public Works Director Terry Thene, City Attorney Tom Jovanovich Others Present: Kyle Roach Public Comments: No one present wished to speak Aaenda Approval: l.oso made a motion to approve the agenda.The motion was seconded by Symanietr and passed unanimously. Consent Agenda: Loso made a motion to approve the consent agenda as follows; seconded by Schultz and passed unanimously. a. Minutes-approved the minutes of August 3, 2015 b. Bills Payable-approved payment of check numbers 049561-049616, Payroll EFT #001093-001097 c. Donations—accepted the following donations: Anonymous—Disc Golf$10.00; Archery Range$43.00; Millstream Camping $210.77. d. Appraisal—hired Granite City Appraisals (Ron Zitrow) to complete an appraisal on the City Office site at a cost up to$4,000. e. Treasurer's Report—accepted the July 2015 Financial Reports as presented. f. Transfers—authorized the 2015 transfer as presented. g. Charter Transfer Resolution—authorized the Mayor and Administrator to execute Resolution 2015-027 request to transfer Charter Franchise. Budget 2016: Weyrens provided an overview of where staff is currently at with the 2016 budget. Historically, St. Joseph's market values have been relatively consistent. The auditor's office indicated the anticipated growth for the city is 2-2.5%. St. Joseph's tax capacity rate is neither the highest nor the lowest when compared to area cities. Projects that were completed in 2015 included the 2015 Northland/Clinton Village Street Improvements, the 2014 Park Terrace Improvements and 2014 Main Lift Station project.. Weyrens noted that projects were added throughout the year as well; the Jasmine Lane Extension, Colts Academy Purchase, utility extension on 1St Ave SE, the Government Center, and the COPS Grant. In addition to the projects, the Council has looked at other budget considerations including the hiring of a Community Development Director, MSA project, and a Pedestrian Crossing over CR 75. The initial budget prepared by staff showed a total general fund budget increase of$420,165. Items were removed from the budget in order to decrease that amount. The larger increases in the general fund are due to the addition of the Community Development Director and the 9'h Police Officer. Weyrens stated that government is public service so the highest delegations will go towards salaries and benefits. Other sources of Revenue could include: implementing a lodging tax, conduit debt, utilizing the Cable Access Channel, increasing Liquor License Fees, requesting State bonding for specific projects, and pursuing SunShare Energy Credits. Weyrens provided a summary of the historical tax rate and the impact it had on a residential home of $150,000 and a business of$500,000. For 2016, the preliminary tax rate is 60.787% resulting in an increase of$102.13 for a$150,000 residential and $767.74 for a $500,000 business. Weyrens added that a large portion of the City is tax exempt. There are some items in the budget that cannot be changed or removed. Weyrens asked the Council for feedback on other areas that could be cut or ideas for additional revenue sources. August 17, 2015 Page 2 of 4 Schultz noted the increase in EDA capital is due to the potential for creating space for additional businesses downtown. The number can be reduced, but the ability to transform other properties or to make lots shovel ready comes at a cost. Schultz added that the EDA does not know what the amount should be, but wanted to draw attention that additional funds are needed. Schultz stated it is important for the City to tackle the amount allocated to the Fire Relief through a reworking of the contract. Schultz suggested sharing services with Waite Park. Killam suggested keeping the Community Development Director and cutting some of the EDA— Project Funding. Schultz added that the Community Development Director will be taking on the roles of planning as well as working with the EDA. Weyrens asked if the Council would like to move forward with the utilization service for the Cable Access Channel. Joe Prostrollo would be working with local businesses to prepare a business profile which could then be placed on the cable access channel for a fee. The initiai cost would be$2,500 with the anticipation that the revenue would be upwards of$20,000. Killam stated he is in favor of the moving forward. Wick suggested having the proposal ready for the meeting on August 31 S' Regarding the Fire Relief, Loso asked for feedback from the Council that he could bring to the upcoming Fire Board meeting. Wick asked if there are any other options for reducing the fire service fees. Weyrens stated staff will look at different formats for how the fees are assessed. Loso and Symanietz requested staff come back with additional information on lodging tax. Weyrens stated an ordinance would need to be created if it is decided to move forward. Killam asked how St. Joseph's liquor license fees compare with surrounding cities. Bartlett stated the fees are between $300-$1,000 lower than area cities. In 2009, a hearing was held to increase the fees, however, the increase was denied. Bartlett believes the last time fees were changed was around 2007. Loso stated he is concerned with the 18.2% increase in the tax levy, adding that people are going to look at that increase and be concerned as well. Loso stated he would like to see the tax levy reduced to around 9%. He understands that the tax rate will need to increase each year to account for inflation and fixed costs. Weyrens stated staff is open to suggestions and will relook at the tax levy. Committee Reports Planning Commission: Schultz reported the Planning Commission conducted two public hearings. The first was to issue an interim use permit for a non-owner occupied rental in the highway business district. The motion was tabled to allow for additional time for the applicant, the City, and the landlord of the neighboring home to work out the issues. The second hearing was regarding the preliminary plat review and variance request for Jasmine Court. The Planning Commission recommended approval contingent upon meeting the comments and outstanding issues by City Engineer. Joint Planning Board: Schultz reported the Joint Planning Board met on two topics. The first involved a land owner in Sunset Ridge using a driveway with direct access to 320th street. The Board denied the continued use of the second driveway access to 320th street. Schultz acknowledged that another home in the development has direct access to 320th Street. The City, Township, and County will be working to correct the issue. Secondly, the Board conducted a public hearing for preliminary plat approval on River Ridge Estates. There are 16 residential lots and 1 outlot. The Board approved the preliminary plat contingent upon the developer working with City Engineer, Township Engineer, and County on any outstanding issues. Once an agreement has been reached the item will come back to the Joint Planning Board for final plat approval. August 17, 2015 Page 3 of 4 City Engineer Reports 15t Ave NE Utilitv Extension: Sabart presented to the Council construction plans for watermain installation and restoration on 15 Avenue NE. The extension would be about 500 feet of 12 inch piping. The estimated construction costs would be under$100,000. Loso made a motion authorizing SEH to obtain quotes for the 15`Avenue NE Watermain Extension. The motion was seconded by Schultz and passed unanimously. Administrator Reports Northland Heights Agreement: Weyrens stated that Lumber One has requested to be relieved from future terms in the Development Agreement in Northland Heights in exchange for a $75,000 contribution to the extension of Jasmine Lane. The remaining construction costs of the road witl be paid for by the other developer involved. The city will be responsible for easement costs and for some of the stormwater not to exceed $42,000. Loso made a motion authorizing the Mayor and Administrator to execute the Amendment to the Developer's Agreement between the City of St.Joseph and Lumber One Development Company, LLC.The motion was seconded by Schultz. Discussion: Wick questioned section 3.0 that no interest will accrue on the water line fee until the second phase begins. Weyrens stated that the dollar amount was an investment paid by the developer and it would not make sense to charge interest on the developer's own investment. Weyrens added that staff would look at the section and bring it back for approval at the next meeting. Schultz motioned to table the execution of the Amendment to the Developer's Agreement between the City of St.Joseph and Lumber One Development Company, LLC. The motion was seconded by Wick and passed unanimously. Easement Agreement: The City was approached by the property owner at 230— 18th Ave SE regarding an easement encroachment. The owner is selling their home and it was noticed that the garage encroaches the storm sewer easement by 6-8 inches. The easement contains a 21" concrete storm sewer so the easement cannot be released. The request is for the City to execute an agreement allowing the owners to keep the garage and maintain it with the understanding that if more than 50% is damaged or destroyed they will not be able to rebuild over the easement. Wick made a motion authorizing the Mayor and Administrator to execute the easement encroachment agreement between the City of St.Joseph and the Dustin and Michelle Henkleman at 230—18t"Ave SE.The motion was seconded by Symanietz and passed unanimously. MayorReports APO: Schultz reported the APO received 19 applications for the Transportation Planner and interviews will be taken place on Thursday. Schultz moved to have the Council entered into closed meeting pursuant to MN Statute 13D.05 Subd. 3(c)—purchase of property located at 124—18t Ave SE.The motion was seconded by Wick and passed unanimously. Schultz reconvened the meeting at 7:30 PM. SunShare—Solar Proposal: Kyle Roach, a representative from SunShare LLC, provided an overview of SunShare, LLC. Roach stated that back when solar power was first introduced it was common to have solar panels on the roofs of homes. However, problems occurred when the panels were too heavy for the homes to support. The idea came about to put the solar panels on the ground in nearby fields. Homeowners would buy the solar panels and gain that money back on their energy bills. Roach stated August 17, 2015 Page 4 of 4 they partnered with Xcel Energy on a project in Colorado where residents who participated in the solar energy program were charged on a pay as you go system rather than a prepay system. Homeowners, renters, businesses, schools, municipalities, and communities of faith can all participate as long as they have an Xcel Energy meter. Roach stated they are proposing the City consider purchasing energy credits through Sunshare for efficiency in resources and for financial savings. They are requesting the City enter into a 25 year agreement that locks the rates below the current Xcel rates. The only risk to the City in their opinion is if Xcel lowers their rates. Roach added that no decisions need to be made tonight and that the presentation was information only. If an agreement is reached, the energy credits would be purchased from the Cold Spring garden. The agreement and savings would only apply to the City usage and does not affect the residents. Schultz questioned what the risks are. Roach stated that the only risk is if Xcel were to drop their rates over the next 25 years on a consistent basis. That would increase the amount owed to SunShare, rather than having a credit. Killam asked what happen when there are blackouts. Roach stated that the City will only be charged on what is used. If less energy is used, then less will be billed. Xcel will always be the main energy provider. Thene asked what would happen with a heavy snow fail. Roach stated that if need be they will have people clean them off. Typically it is not needed due to the panels being at a slant. Wick made a motion authorizing staff to move forward with the letter of intent and contract agreement discussions to subscribe in SunShare's community solar gardens.The motion was seconded by Schultz and passed unanimously. New Business The next Council meeting is August 31, 2015. Adiourn: Wick made a motion to adjourn at 7:50 PM; seconded by Schultz and passed unanimously. ���� � Jud W yrens Ad nistrator