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HomeMy WebLinkAbout2017 [06] Jun 05 June 5, 2017 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, Jun 5, 2017 at 6:00 PM at the St. Joseph Government Center, 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: Jeffrey Williams, Mike Deutz, Harvey Pfannenstein, Jeff Engholm, Stacy Engholm, Dave Demars. 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: Approve Aqenda: Loso made a motion to approve the agenda as presented.The motion was seconded by Goracke and passed unanimously. Consent Agenda: Wick made a motion to approve the consent agenda as follows; seconded by Loso and passed unanimously. a. Minutes—Approved the minutes of May 1 and May 15,2017. b. Bills Payable—Approved check numbers 052112-052170, Payroll EFT#001355-001360. c. Gambling Report—Accepted the 1S`Quarter 2017 Gambling Report d. Pay Application No.4—Approved Work Order No. 1 and Payment Application No.4 for the 2016 Field Street Improvements in the amount of$40,762.25 to Douglas-Kerr Underground, LLC. e. Performance Measures—Authorized execution of Resolution 2017-022 Accepting the Performance Measures. Committee Uqdates—Park Board: Killam reported that the necessary funds have been raised to move forward with the Dog Park. He stated that the Public Works Director Terry Thene will be contacting the fencing company to begin the fence install. Additional items will be trees, picnic tables, and signage. Killam added that over$2,000 was raised in two weeks. Wick questioned if the Park Board had raised $10,000 for the dog park project. Killam stated that the project costs have been reduced as they have solicited additional fencing quotes. The lowest quote received was in the amount of$ 14,000. Wick stated the Council approved the dog park project contingent upon the park board raising $10,000 and questioned if they have raised $ 10,000. Killam stated that they have not, but the project costs have been reduced therefore, the donation requirement has been reduced. It was his understanding that they could move forward when half the funds have been raised. loso disagreed with Killam and stated that he concurs with Wick that the Pak Board needed to raise$ 10,000 before moving forward. Therefore, he would like to see a copy of the minutes to verify the action of the Council. Schultz moved to table discussion on the dog park until further clarification of the amount to be raised by the park board is determined.The motion was seconded by Loso. Aye: Schultz, Loso,Wick, Goracke Nay: Killam Motion Carried: 4:1 Committee Uqdate—APO: Schultz reported the APO is now fully staffed. Citv Enqineer Proiect Updates—Field Street: Sabart reported that curb and gutter was constructed on Field Street. This week will include preparing the aggregate base between curb and gutter. Black top will go down late this week. Citv Enqineer Proiect Updates—Gracview Estates 5: Graceview Estates 5 is preparing aggregate base as well with the laying of black top taking place shortly thereafter. June 5, 2017 Page 2 of 4 Administrator Reports—State Bondina Requests: Weyrens reported that the deadline for submitting requests to be included in the State Bonding Bill are due on June 16. If the City intends on submitting a request for consideration, the City Council must adopt a resolution supporting the project and prioritizing the needs if more than one request is submitted. Weyrens reminded the Council that in the past the City has submitted a bonding request for the Community Center and the Pedestrian Crossing. The Pedestrian Crossing was included in the 2017 Legislation until the very end. The Council requested that staff submit a request for bonding for the Pedestrian Crossing(1 St Priority), Jacob Wetterling Recreation Center(2"d Priority)and Development of the East Park(3`d Priority). Loso moved to approve the submittal of state bonding requests for the pedestrian crossing, community center, and eastlwest park development with the priorities as stated above.The motion was seconded by Loso and passed unanimously. Mavor Reports: Schultz reported on the following: • Intergovernmental Meeting—The area cities met with the area legislators to hear what passed through legislation, bonding projects and what is happening and the State and Federal level. • Stearns County Environmental Services—Schultz stated he is working with Environmental Services on how a collection for hazardous waste material can be collected during the City's fall cleanup. A request will be submitted to the county board. • All board/commission meeting—the meeting included visioning, upcoming projects, budget discussions, and future needs for the city. • Joint City/Township Board Workshop—Schultz reported that due to the large number of residents in attendance and mis-information received, the City dismissed themselves from the workshop in order for the township to have a meeting with their constituents. The follow up workshop date has yet to be determined. Schultz announced that Sr. Kathleen Kalinowski passed away on Friday. Sr. Kathleen served on various boards and commissions for the City for close to 30 years. New Business: Loso requested staff consider installing a crosswalk along 1St Avenue and Birch Street near Kwik Trip. Since Kwik Trip foot traffic has increased and could benefit from installing crosswalks at the full intersection, including all four sections. Sabart stated that he will review the matter. Schultr moved to suspend the meeting at 6:26 PM, reconvening at 6:30 PM.The motion was seconded by Wick and passed unanimously. Schultz reconvened the meeting at 6:30 PM. Final Assessment Public Hearinq—2017 CBD Allev Improvements: Schultz opened the public hearing and stated the purpose of the hearing is consider the final assessments for the 2017 CBD Alley Improvement. Sabart stated the project was broken down into two areas, block 9 and block 12. Project improvements include the construction or reconstruction of new bituminous pavements on both blocks, spot repair to the sanitary sewer on block 9, and full length repair on block 12. Following is a summary of the preliminary and projected final costs for blocks 9 and 12. Block 9: Between MN St W and Ash St W Preliminary Cost Projected Final Cost $261,700 $198,808 Block 12: Between Ash St W and Birch St W Preliminary Cost Projected Final Cost $220,900 $162,387 June 5, 2017 Page 3 of 4 Sabart stated the city has a special assessment policy which states the City will assess up to 100% to property owners in commercial/industrial areas for surface improvements. For subsurface improvements, up to 60% can be assessed to the property owner with the remaining 40% subsidized by the City. The city commissioned a Special Assessment Benefit Report to identify the range of market benefits to the affected properties. Special assessments are calculated on the basis of frontage on a per lineal foot basis and on a per unit basis. The assessments may be paid in annual installments. For this project, the term is 10 years with an interest rate of 6%. No interest will be charged if the assessment is paid in full within 30 days of the adoption of the assessment roll (July 5, 2017). At any time a resident may pay to the City the entire remaining amount with accrued interest. If paid after November 15'h of that year, interest will be charged through December 31 St of the succeeding year. The city does have Ordinance 308 which governs assessment deferral. Forms for assessment deferral are available at City Hall. If the deferral is granted, the assessment will continue to accrue. The schedule includes construction beginning after July 5th with completion in October 2017. Weyrens clarified that while the hearing notice stated that the interest rate for the assessment would be 6%that is not defined yet. The interest rate is based on the percent of the bonds that are sold. We anticipate that the interest rate will be between 4.50—5.25%. Mike Deutz, 8480 CSAH 75: Deutz stated it is odd that interest is paid on a project that has yet to be completed. Sabart stated that if the city were to issue the bond, but not levy assessments until the following year, there would be at least a year of capitalized interest that accrues without any revenue being collected. Deutz questioned if the feasibility study was done by block or by individual and he was opposed to being assessed on his lot that is only used as a parking lot. Deutz does not see how the improvements will be benefitting that lot. City Attorney Tom Jovanovich stated that the benefit analysis is not an appraisal on the properties rather it shows how the property benefits from the improvements. Sabart added that appraiser looks at the general area and reviews the proposed assessment and determines the amount if any benefit. As no one else present wished to speak, Schultz closed the public hearing. Loso questioned why the assessment amounts were not capped like they were the past two City street projects, providing a total benefit dollar. It is his opinion that varying the assessment by footage, homestead classification, and access is not an equitable to define value. Loso believes the benefit is the same for all the properties in the project area and does not like the way the assessments were done. He also disagrees with assessment amount on his mother's property and feels the City should pay more as the paving of the alley benefits the downtown. Jovanovich stated he and Sabart addressed those concerns with appraiser and he believes that the commercial properties receive a greater benefit from the project than the residential owners. The City cannot dictate to the appraiser how the values are to be derived as then the process would not be objective. Jovanovich stated that even if a maximum assessment amount is determined, the smaller lots will still be assessed a lessor amount that that of larger amounts. Deutz again stated that he has a lot that in his opinion is not buildable and will not receive the benefit that is listed on the assessment roll. Jovanovich responded that commercial property does have value to the project, he is required to have parking for his businesses which utilizes the parking. Deutz disputed Jovanovich and stated that he does not need the parking and again stated that the lot is not buildable as it is a separate lot of record. June 5, 2017 Page 4 of 4 Wick questioned how many commercial properties are in the project area that are too small to build on. Sabart responded that many of the lots in the central business district are small; however, setbacks are reduced and there is a potential to combine lots and a property owner would still recognize the benefit. Loso stated he would like to have seen the benefit analysis been done the same as other projects and questioned the direction provided by staff. Weyrens responded that staff cannot tell an appraiser how to complete the study. Staff requested a benefit analysis for the proposed project and provided the appraiser with the feasibility report. It was then up to the appraiser to define the value or benefit. The City used the same appraiser as in the past projects and requested the same end product. Schultz questioned the process and what happens next. Weyrens stated that the City has previously bid the project and have not awarded the contract until after the assessment hearing. Sabart stated that the bid documents indicated that the City had 90 days to award the contract and if that does not happen at this meeting, the City will have to ask the contract to consider extending the contract. Jovanovich stated a property owner can object to the assessment by submitting a written objection at today's hearing. Once submitted, the property owner has thirty days to take further action. There is the option for the property owner and City to work through the assessment. Alternatively an administrative hearing may also be held regarding the matter. Therefore the Council could take action on the assessment at this meeting and if any objections are received they can be managed. Wick made a motion authorizing the Mayor and Administrator to execute Resolution 2017-020 Adopting Final Assessment for the 2017 CBD Alley Improvements changing the interest rate from 6%to 2%above the bond issue. The motion was seconded by Loso. Aye: Schultz,Wick, Killam, Goracke Nay: Loso Motion Carried: 4:1 Wick made a motion authorizing the Mayor and Administrator to execute Resolution 2017-021 Awarding Bid for the 2017 CBD Alley Improvements to C &L Excavating in the amount of $239,693.00.The motion was seconded by Loso and passed unanimously. Adiourn: Schultz made a motion to adjourn at 7:15 PM; seconded by Loso and passed unanimously. r-'—o G-,� � � ��:���j� Judy eyrefis � . istrator