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HomeMy WebLinkAbout[04a] Minutes, June 6th June 6, 2016 Page 1 of 7 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Monday, June 6, 2016 at 6:00 PM in the St. Joseph City Hall, opening the meeting with the Pledge of Allegiance. Members Present: Mayor Rick Schultz, Councilors: Renee Symanietz, Matt Killam, Bob Loso. Administrator Judy Weyrens. Members Absent: Dale Wick City Representatives: City Engineer Randy Sabart, Finance Director Lori Bartlett, Public Works Director Terry Thene, Community Development Director Therese Haffner, City Attorney Tom Jovanovich, Police Chief Joel Klein Others Present: Monte Eastvold, Sue Palmer, Tom Matthews Public Comments: No one present wished to speak. Agenda Approval: Wick made a motion to approve the agenda; seconded by Symanietz and passed unanimously. Consent Agenda: Loso made a motion to approve the consent agenda. The motion was seconded by Wick and passed unanimously by those present. a. Minutes- approved the minutes of May 16, 2016 b. Bills Payable - approved payment of check numbers 050571-050635, Payroll EFT #001200-001206. C. Government Center Draw#2—Authorize payment to contractors listed in draw#2 for the Government Center Project. d. Ordinance Amendments—Authorize Adoption of Ordinance 502.46 (R5 Supportive Care District) and Amendment to Ordinance 502.42 (R4 Townhouse/Patio Home Residential District) and Authorize Summary publication of the same. e. JPA Gang Task Force Officer—Authorize the Mayor and Administrator to execute the JPA extending the authority three years. f. Liquor License, Intoxicating—Authorize the Mayor and Administrator to execute the On/Off Sale Intoxicating Licenses, Wine Licenses and Club License as requested by the license holders. Public Hearing, Delinquent Accounts Proposed Assessment: Weyrens stated MN Statute allows local governments to assess unpaid fees for special charges noted in City Ordinances. The charges include weed cutting, snow removal, street sweeping, tree trimming, utility bills, operation of street lighting systems, special fire service fees, compliance fees, etc. Installments can be paid in up to 10 equal installments. The City's policy has been one installment due to the relatively small balances that remain. The total outstanding is $1,563.53. The majority of the delinquent accounts are due to unpaid weed cutting, while one is for utility billing. Schultz opened the public hearing. As no one present wished to speak, Schultz closed the public hearing. Wick made a motion authorizing the Mayor and Administrator to adopt Resolution 2016-017 certifying the delinquent accounts as presented with a one installment payment in 2017, 0% interest charge, plus a $45 certification fee per item for accounts not paid by July 5, 2016 at 10:00 am. The motion was seconded by Loso and passed unanimously. Public Hearing, Storm Water Permit: Weyrens stated annually the City is required to hold a public hearing for the Storm Water Pollution Program. At which time any member of the community can come and address the program. June 6, 2016 Page 2 of 7 Public Works Director Terry Thene stated the City maintains the storm water ponds, working with local Boy Scout troops and the College of St. Benedict. Killam questioned if anything changed from 2014. Thene stated the reports are pretty standard every year with education and outreach provided to the community. Schultz opened the public hearing. As no one present wished to speak, Schultz closed the public hearing. Loso made a motion authorizing the submission of the 2015 Annual MS4 Report, including all public testimony. The motion was seconded by Wick and passed unanimously. 2016 Government Center Bond Sale: Financial Advisor Monte Eastvold presented the proposed 2016 4.275 M Bond Sale for the financing of the Government Center. As part of the bonding process, the completed the rating process and Stand and Poor's confirmed the current AA- rate. The rating report indicated the City has strong financial policies, a stable outlook and a considerable amount of the current debt of the City will be satisfied within 10 years. Eastvold stated that the rating report is a testament of the financial decisions the Council has made in recent years, committing to strong financial health. The AA- rating provides the City with more bond buyers bidding at lower interest rates. The preliminary bond issue was set at$4,335,000 at the beginning of May and with the current rates, the final bond issue is $4,275,000. The reduction in the bond issue is due to the reduction in the underwriter's discount and the reoffering premium. The average interest rate of the bond issue is 2.406 for the life of the issue. The reoffering premium of$58,025.90 will be paid by Northland Securities, applying it to the size of the issue, reducing it down to the $4,275,000. The cost of the issuance of the bond is $32,970.00. The bond issue will be paid through tax levies with the option of using sales tax revenues. Loso questioned when the Council can allocate sales tax funds to help reduce the tax levy payments. Eastvold stated the Council will review the matter yearly and can allocate sales tax at that time. Killam questioned if the bond issue can be paid off sooner than 2036. Eastvold stated the City can pay off the issue earlier without penalty periodically during the term with the first opportunity occurring in December 2023. Schultz made a motion authorizing the Mayor and Administrator to execute Resolution 2016-021 providing for the issuance and sale of the $4,335,000 Bonds, Series 2016A, pledging for the security thereof net revenues and levying a tax for the payment thereof. The motion was seconded by Symanietz and passed unanimously. Wick made a motion authorizing the sale of the General Obligation Capital Improvement Plan Bonds, Series 2016A to Northland Security. The motion was seconded by Schultz and passed unanimously by those present. Debt Management Study: Eastvold presented the 2016 Debt Management study. The Study provides information of what the required tax levies and other revenue sources should be, what debts might be a candidate to refund or payoff early, how many years remain on each debt, and the summary of the debt costs versus the requirements to pay the total debt. Eastvold stated that the formatting has remained the same. Eastvold presented each issue and how they are funded. Eastvold called attention to the Crossover Refunding Bonds of 2010 from the Hill Street Project Improvements as it shows a larger negative fund balance in 2019 and 2020. Weyrens stated the City will be receiving a payment for$115,000 on a foreclosed property that will be reflected in the 2016 audit. Another issue worth watching is the GO Improvement Bonds of 2014 for the Park Terrace Improvement Bonds. The last few years of the issue show deficits in the fund balance. Finance Director Bartlett stated that over 50% of the special assessments were prepaid; therefore the City is unable to collect interest on June 6, 2016 Page 3 of 7 those assessments causing the deficits. Eastvold stated that any access funds on a bond issue can be transferred to any other bond issue or back to the general fund. CSB Request for Exemption, Lodging Tax: Tom Mathews approached the Council requesting that the College of St. Benedict be exempt from the recently passed lodging tax. The tax will be applied to the College for their lodging provided throughout the summer. The summertime uses currently involve sporting camps, youth camps, and alumni events. Mathews stated that discussions have been had as well as information shared with the City's Attorney. Mathews stated the decision is based on whether the College should be considered a hotel. Hotel is defined in the City's Ordinances, however, Mathews does not believe the City is using the correct definition of a hotel. The authority to issue the tax comes from state law, Minnesota Statute 469.190. The law was put in place to prevent cities from enacting certain taxes. The lodging tax was to be used to tax the revenues gained from traveling and tourism. Mathews stated the MN Department of Health uses the definition of a hotel as follows: "a hotel, resort, boarding house, bed and breakfast, furnished house, or other building which is kept, used or advertised as held out to the public to be a place where sleeping and housekeeping accommodations are supplied for pay to guests for transit occupancy." Mathews stated that if someone were to knock on Sue Palmer's (VP of Finance, College of St. Benedict) door and ask to stay at the College, the answer would be no. The College's lodging are provided for those that have a special relationship with the College. All lodging establishments must be licensed by the State of MN. In this area, the MN Department of Health has delegated the authority to Stearns County. Stearns County then issues those licenses, except the City of St .Cloud, which issues its own licenses. The Stearns County language coincides with that of the Department of Health in that the facilities are open for public use. Mathews spoke with Shelly Benson from the Stearns County Environmental Services about the College obtaining a license. Benson told Mathews that the only licenses required for the College was related to food service. Mathews stated the College is zoned as EE, where hotels are prohibited. Mathews added the definition of a hotel in the City of St. Joseph's Zoning Ordinance states that a hotel is a building in which lodging is provided and offered to the public for which compensation and for which is open to transient guests in contradiction to a boarding house or lodging house. Mathews believes the ordinance creates two classes of lodging facilities. A hotel is a building or structure where there are 6 or more guestrooms whereas a rooming house is classified as having 5 rooms or less. Mathews believes it is obvious that the services and accommodations the College provides is not that for a hotel. Mathews added the City Attorney may not agree, but requests the City grant the Tax Exemption request. Councilperson Wick presented the Council with the College of St. Benedict's website. Under student housing, and on-campus housing reservations there is a listing that includes wedding services where the College will block off rooms for the wedding, much like a hotel would. Sue Palmer approached the Council to address Wick's comment. Palmer stated that every event that is held at the College is contracted event. Somebody could not walk on campus and request a room. Palmer added that the events held in the summer are the College's own events and it would not make sense to be charges taxes on their own events. Wick reiterated that Mathews had stated the hotel provides pillows and shower and other accommodations. On CSB's website, Wick pointed out that the following items are included: sheets, blanket, pillow, bath towel, washcloth, soap, beverage cup and coat hangers. All single and double rooms in the residence hall will have a sink in the room with shared restrooms and showers down the hall on every floor. In addition Wick pointed out the College lists pricing for each room type. Palmer again stated that the college does not meet the definition of a hotel. Mathews added that a hotel requires an innkeeper, must maintain a guest register, and most importantly must be licensed and inspected as a hotel. June 6, 2016 Page 4 of 7 Wick stated if the College is unable to get a license for the operation of a hotel, then they should not be renting out rooms, taking away from other businesses that are licensed to do so. Wick added it would be like someone renting out their house in the City without obtaining a rental license. They can still rent it out, but that does not make it legal. Mathews stated the College can go back to Stearns County and ask again if they would qualify for a hotel license. City attorney Tom Jovanovich asked what the County's criteria is that they are unable to issue the hotel license. Mathews stated their criteria is: "that buildings, structure or any port used and maintained to advertised or held out to be a place where sleeping accommodations are furnished to the public furnishing accommodations for less than one week. Jovanovich stated that is exactly what CSB does in the summer. Palmer disagreed stating that having the facilities open to the public means that you could walk in and reserve a room that same day. Jovanovich stated he agrees that it needs to be looked at when it is open to the public, but when he looks at the Events and Conference Center Facility Guide, CSB is definitely opening their facilities up to the public. The guide talks about the convention center opportunities and there is no limitation to whom the facilities are offered two except it states it has to meet the philosophy of the College of St. Benedicts. Part of holding the facilities open to the public is the ability to rent out units on campus. Jovanovich added that the document is holding out the College's facilities in the summer as an events and conference center and lodging. Wick directed the Council to the screen illustrating the housing web page for the College of St. Benedict. The housing tab includes a lodging section for"snow birds". The housing menu allows individuals to rent out apartments for people to live in from May 16th to August 5th at a 30 days minimum. All utilities are included as well as bed linens, mattress pad, pillow, bath towels, wash clothes, and hand towels. A telephone can be installed for$85.00. After the 30 day stay at$1,100.00, then there is a weekly rate of $275.00. Wick questioned if that would be an extended stay hotel. Mathews stated it may have the features of one, but it is not one. Wick asked how the snow bird option connects students to summer camps at St. Benedicts. Mathews responded it is interesting how the City has not brought up the matter previously, or notified the College they may be in violation of zoning ordinances. Wick stated that some of the information was just brought to the Council and City's attention.Wick added it is in direct competition to other people in the City that pay property taxes for rental units. Wick believes that each place that rents out their facilities should be paying property tax, lodging tax, and fees associated with obtaining the correct licensing. Palmer stated that CSB does pay some property taxes. Wick responded that he didn't say the College wasn't paying anything; rather they are not paying taxes on lodging which other property owners in St. Joseph must if they rent out rooms. He further stated that it presents an unfair advantage when one property owner has to pay taxes for the same operation that someone else is doing and they don't pay taxes. Mathews stated that Wick has information that he does not have. Wick noted that all the information he has is on the website and is public information. Wick added if he were a snowbird, and was looking for snowbird housing in St. Joseph, the CSB website would come up in a web search. Jovanovich added that under the weddings or other events, he could sign up any night that he wants, there are no questions asked as to whether they are associated with that specific event. Weyrens added that an individual was wanting to camp at the City's campgrounds for a weekend, however the campgrounds were closed permanently at the beginning of the year. Later that same day, the individual called back and stated that she found a room at St. Ben's for the weekend for$ 50.00 per night. June 6, 2016 Page 5 of 7 Palmer stated the circumstances are still different. No one can come in and get a room that same night. Palmer added the College does not have an inn keeper. Wick asked who takes the reservations, adding that whoever takes the reservations is the inn keeper. Palmer stated that their staff is not at the facilities 24/7. Jovanovich showed the Council the form that needs to be filled out in order to reserve rooms during an event held at the College. Nowhere on the online form does it inquire about whether you are there for that particular event. Jovanovich referenced the Event and Conference Center guide which advertises to the public the ability to rent their facilities and lodging. Jovanovich stated he looked at the definition of a hotel and believes the College meets every requirement. The key item Jovanovich looked at was whether the reservations are open directly to the public. Loso made a motion denying the request for lodging tax exemption submitted by the College of St. Benedicts. The motion was seconded by Schultz and passed unanimously. Loso stated his motion is based off of the discussion held tonight and that it appears the College is operating a public lodging facility through the off months of the school year. Mathews stated he appreciates the motion and will appeal the decision. Department Head Reports Police Chief—Gold Cross Lease Agreement: Weyrens stated Chief Klein has been working with Gold Cross who is requesting to stage a response unit in St. Joseph. Klein stated that staging means providing a place for the vehicle to park and a place for the attendants to occupy when not responding to a call. When planning the Government Center space has already been provided, utilizing the Police parking area and extra room. Gold Cross needs to be able to plug in the vehicle and have a desk with computer access. They will be providing all their own equipment, we just need to provide the walls. Until the Government Center is complete, there would be space available in the Police garage utilizing the former fire office as their base. Klein stated that the staging of Gold Cross in St. Joseph does not change how the Fire Department will be paged. When 911 is called the Fire Department will still be dispatched at their may be times when they are canceled,just like they are today. The vehicle being staged in St. Joseph is not for the City specifically; rather they try and space vehicles to different areas to increase response times. As Gold Cross is not able to pay for lease space, they offer to provide training to the police and fire in exchange. All responders must be certified at least every two years and training is costly. Therefore, staging the unit is St. Joseph will save the City upwards of$ 6,000 in training fees. Killam questioned who will function as the liaison between the City and Gold Cross should issues arise. Klein responded that it will be both the Administrator and Police Chief. Loso made a motion authorizing the Mayor and Administrator to execute the agreement between the City of St. Joseph and Gold Cross Ambulance Service. The motion was seconded by Schultz and passed unanimously. Public Works— Root Foaming: Public Works Director Thene requested the Council approve root foaming of 8,823 feet of clay sanitary sewer mains in the City. Thene requested the Council approve the quote provided by Dukes Root control for the root foaming at a cost of$14,028.57. Wick made a motion approving Dukes Root Control for the root foaming of 8,823 feet of sanitary sewer mains at a cost of$14,028.57. The motion was seconded by Schultz and passed unanimously. June 6, 2016 Page 6 of 7 Killam questioned how root foaming works. Thene stated the foam will fit around the whole pipe and will make contact with any roots intruding on the piping buying about two years before another treatment will need to be applied. Committee Reports EDA: Wick reported the Greater St. Cloud Development Corporation came to present their yearly report. There were additional discussions on the senior housing facilities as well as the beginning of business retention visits with businesses throughout the City. Planning Commission: Schultz reported the Planning Commission met regarding the County Manor Development. The Commission was presented with plans, but the meeting was information only as the AUAR had not yet been approved by the Council. In addition to Country Manor, the Commission also reviewed Ordinance Amendments. Two were on the consent agenda that were recommended for approval by the Planning Commission. The rest of the ordinances will be addressed at a later meeting. Wick questioned if the Comprehensive Plan Update has been addressed. Weyrens stated it is hard to start that process in the summer, but is hoping the City can start the process by fall. Park Board: Killam reported the Park Board had a full agenda at the last meeting and discussed the following: • Klinefelter Park was controlled burned and fall seeding of the area will take place. The entire process is about a two year process. The dog park location is still up in the air. • The Park Board will need to get on a Council agenda to request the $2,000 of sales tax for the Millstream Shelter. • The footgolf course has a newly added feature illustrating a gnome family throughout the park. Killam is hoping to have a grand opening in August. • Adopt a tree—individuals or companies would sponsor a tree where they would decide which park the tree would be located in. Administrator Reports Facility Update: Weyrens stated that once a month, RA Morton provides a brief report on where they are at and what will happen in the next month. The report is included in the packet and the contractors remain ahead of schedule. Mayor Reports CSB Donation: Schultz read into record the letter accompanying a check for donation in the amount of $20,000.00 to the City of St. Joseph. Wick made a motion accepting the donation from the College of St. Benedict in the amount of $20,000.00. The motion was seconded by Symanietz; motion carried. Ayes: Schultz,Wick, Symanietz, Killam Nays: Loso Motion Carried 4:1:0 Compost: Schultz received a request to extend the compost site hours. Weyrens will be looking into the matter. Community Center Group: Schultz stated the group went through the Community Center in order to better match the building with community needs. An additional meeting will be held this month. Additionally, the group would like to meet with Murray Mack to discuss options. June 6, 2016 Page 7 of 7 Other Matters: Schultz further reported on the following: • District 742: Schultz and Weyrens met with the School District at which time they gave the District what the Council had talked about regarding the lease extension. • Joint Meeting: The joint City Council, Board, and Commission meeting will be held on June 21St at the Fire Hall. • Schultz stated he received a complaint about the City Wide Garage Sales being on the same day as the city-wide cleanup. • The School Board will be considering the bid to construct the revised ingress/egress. The low bid for the construction is $ 570,000. New Business: Symanietz reported that the League of MN Cities Conference is being held June 14— June 17, 2016 in St. Paul. Admiourn: Wick made a motion to adjourn at 7:22 PM; seconded by Loso and passed unanimously. Judy Weyrens Administrator � � � � � �� �. .