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Home My WebLink About2017 [05] May 01 May 1, 2017 Page 1 of 3 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Monday, May 1, 2017 at 6:00 PM at the St. Joseph City Hall, opening with the pledge of allegiance. Members Present: Mayor Rick Schultz, Councilors Dale Wick, Bob Loso, Troy Goracke, Matt Killam. Administrator Judy Weyrens. Others Present: Wade Dumont, Joy Williams, Jeff Williams, Dave Demars, Janel Bitzan, Citv Representatives Present: City Engineer Randy Sabart, Police Chief Joel Klein, Finance Director Lori Bartlett, Public Works Director Terry Thene, Community Development Director Therese Haffner. Public Comments Jeff Williams, 909 Baker St E approached the Council and read a letter requesting the City refund the fee he paid to restore his water service at his residence. He further stated that it is his opinion that the City Administrator violated Ordinance 209(Code of Ethics)and requested the Council conduct a public hearing to consider severing the relationship between the City and the City Administrator. Approve Aqenda: Loso made a motion to approve the agenda; seconded by Killam and passed unanimously. Consent Aaenda: Wick made a motion to approve the consent agenda as follows; seconded by Schultr and passed unanimously by those present. a. Minutes—Approved the minutes of April 17, 2017. b. Bills Payable—Approved check numbers 05201 3—052053, Payroll EFT#001343-001348 c. Application for Payment—Authorized execution of pay application#3 for the 2016 Field Street Project, approving payment to Knife River in the amount of$65,028.91. d. Conditional Use Permit—Authorize execution of Resolution 2017-016 adopting findings of act and issuing a CUP to Kwik Trip to construct and operate a 24 hour convenience store and car wash on Lot 1, Block 1, K& L Properties. Public Hearinq—Outdoor Permit, American Buraer Bar: Weyrens stated that the American Burger Bar has submitted an application for an outdoor event to be held June 3, 2017 from 12:00 Noon to 10:30 PM. The Ordinance requires a public hearing for outdoor events that extend beyond 9:30 PM and allows the music to extend until 12 AM. Weyrens stated that the event is similar to the event held in 2016 and the application has been reviewed by the Police Chief. The Police Chief has approved the application with the following contingencies: the outside area must be double fenced with entrance from the inside only; the stage must face north with music ending by 10:30 PM; the grounds must be cleaned of debris no later than 8:00 AM June 5; and the emergency exit must be staffed by employees. Mayor Schultz opened the public hearing and as no one present wished to speak, the public hearing was closed. Loso made a motion authorizing execution of an outdoor liquor event for the American Burger Bar to be held on June 3, 2017 with the contingencies as outlined by the Police Chief. The motion was seconded by Killam and passed unanimously. Public Hearinq—Outdoor Permit. Sal's Bar: Weyrens stated that Sal's Bar has submitted an application for an outdoor event to be held on June 24, 2017 from 7:00 PM to 11:00 PM. As with the American Burger Bar, a public hearing is required as the event will extend beyond 9:30 PM. The application has been reviewed by the Police Chief and he has recommended approval with the following conditions: double fencing covering the parking area; hiring of one full time police officer; barricade the alley; the outside area must be cleaned of debris no later than 8:00 AM June 25, 2017; and the music will cease at 11 PM. Mayor Schultz opened the public hearing and as no one present wished to speak, the hearing was closed. Wick made a motion authorizing execution of an outdoor liquor event for Sal's Bar to be May 1, 2017 Page 2 of 3 held on June 24,2017 with the contingencies as outlined by the Police Chief. The motion was seconded by Loso and passed unanimously. 2016 Annual Audit Presentation: Janel Bitzan of Bergankdv presented the City Council with the completed 2016 audited financial reports. The following is a summary of her presentation" • The audit includes an unmodified opinion, which is the highest level of performance • With regard to the results of testing on Minnesota Legal Compliance, no compliance findings wer found. • Report on internal control over financial reporting: no compliance findings, internal control comment—lack of segregation of duties; internal control comment—deficiency in the police department ticket billing and receipting. • General Fund Operating Results: Budgeted revenues of 29 M; budgeted expenditures of 2.9 M; budgeted decrease in fund balance of$31 thousand; actual revenues 3.2 M; actual expenditures of 2.8 M; actual increase in fund balance of$ 361 thousand; ending fund balance of 2.4 M. • The tax capacity and levy rates have been level for the past five years with the tax collection rate increasing to 99%. • Presented a five year history of expenditures and revenues for both general fund and enterprise funds. The history included fund balance totals and a breakdown by department. • The water, sewer and refuse funds all recognized a positive balance to include depreciation while the storm water and street light utility had a deficit. Loso made a motion to accept the 2016 Audited Financial Statements as presented; seconded by Goracki and passed unanimously. Millstream Park: Paul Heinen of RA Morton presented the Council with the bid results for the 2017 Millstream Park Pavilion. The bid results were favorable and the following is a summary of the results: • 21 independent sections were established and bid. • 104 local and regional contractors were directly contacted to inform them of the project and request bids for the project. • 4 independent builder's exchanges were informed of the project. • 66 contractors expressed interest in bidding the project. • 44 separate bids were collected and opened at bid opening. • 3 Alternates were bid to identify specific costs of value engineering ideas. • The Construction Total (including project general conditions and accepting all 3 Deduct Alternates) is$416,511.00. Construction Total would increase by$34,121.00 for including these items in the project for a total of$450,632.00 o Add Fireplace o Add HVAC System o Add Ceiling Fans • Including project soft costs, contingency and by owner items, the total project cost is $517,811.00 without the fireplace, HVAC System or$551,932.00 with them included Loso questioned the need to construct a new facility as the cost for the facility seems high compared to the use. He further questioned why the building needed to be replaced. Public Works Director Terry Thene stated that the building needs about$ 8,000 in repairs and those does not include any site improvements. In addition, the Fireplace no longer works and needs to be closed. Wick stated that the Park Board has prioritized the Millstream Park Shelter as a need and have spent a couple of years working on the project. Loso made a motion to accept the bids for the Millstream Park Pavillion as presented, including HVAC and Ceiling fans in the project, but not installing a fireplace. The motion was seconded by Wick. Ayes: Wick, Loso, Killam Nays: Schultz, Gorake May 1, 2017 Page 3 of 3 Weyrens clarified the total cost of the project including soft costs (CM Fees, Archtitect, owner items) is$ 531,551 and will be funded through sales tax revenue. Enqineer Reports—2017 CBD Improvement: City Engineer Randy Sabart presented the Council with an updated assessment roll for the proposed 2017 CBD Alley Improvement. In preparing the assessment roll, the City Assessment policy is reviewed as the starting point. In addition, a benefit analysis is prepared by an independent appraiser to provide the benefit of the proposed improvement. In the matter of the CBD Alley Improvements, the policy identifies the starting point for assessing alley improvements is 100%with utilities assessed at 60%. The City commissioned Bill Waytas of Nagell Appraisal to prepare a benefit report, which is the same appraiser the City has used for past projects. The project includes two blocks that are referred to as Block 9 and Block 12. Since Block 9 has existing bituminous surfacing the benefit is less than the benefit to Block 12 which is gravel surface. The benefit is different if there is direct versus indirect access to the roadway. If there is a significant physical barrier that would prevent access, the property was assigned the value of indirect. The final distinction is homestead versus non homestead. In 2002 when the City improved the streets (Ash/Birch/1S�/2"d/3`a )the same method was used, charging different amounts for residential and commercial, using the tax classification. The benefit values as indicated in the report are illustrated in the upper right of the assessment roll. The benefit analysis was applied the same manner as it was for the Park Terrace and 2015 Street Improvement Project, using the high end of the value indicated in the report as the cap for the improvement. The column entitled "City Subsidy" is the difference between the assessment policy and the benefit analysis. The Park Terrace Improvement included storm sewer and that was included as part of the benefit analysis in the cap, the same as it is applied in this case. Loso questioned why the benefit report identifies the value by foot rather than by parcel as in the past. Sabart stated that the appraiser was provided the project information and he opted to use a per foot basis rather than per lot. The next step in the process is to consider two resolutions: 1) Declaring the costs to be assessed; and 2) Calling for hearing on the proposed improvements. The project is anticipated to begin after the 4�h of July. Loso made a motion authorizing the Mayor and Administrator to execute Resolution 2017-017 Declaring the Cost to be assessed for the 2017 CBD Alley Improvement and to execute Resolution 2017-018 Call for hearing on the 2017 CBD Alley Improvement. The motion was seconded by Schutlz and passed unanimously. Adiourn: Killam made a motion to adjourn at 7:45 PM; seconded by Wick and passed unanimously. �--�. .<�� /� �� Ju eyre A in' trator