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HomeMy WebLinkAbout2019 [05] May 06 May 6, 2019 Page 1 of 5 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Monday, May 6, 2019 at 6:00 PM at the St. Joseph Government Center, opening with the pledge of allegiance. Members Present: Mayor Rick Schultz. Councilors Anne Buckvold, Brian Theisen, Bob Loso, Troy Goracke. Administrator Judy Weyrens. Citv Representatives Present: City Attorney Tom Jovanovich, City Engineer Randy Sabart, Police Chief Dwight Pfannenstein, Public Works Director Terry Thene, Community Development Director Therese Haffner, Finance Director Lori Bartlett �thers Present: Steve Wischmann, Theodor Gorden, Keith Simon, Neil Fortier, Molly Weyrens, Susan Meyer, Kris Lehman, Eunice Antony OSB, Diane DeVargas, Jamie Thelen, Paul Orvis, Lisa Kittoch, Ronald Pagnusa, Helen Weber, Megan Carr Public Comments: Molly Weyrens, 6522 Laurel Rd. St. Cloud:Weyrens approached the Council regarding the Affordable Housing Project. Weyrens stated she is part of the Catholic work in the St. Joseph area and has been able to help those that may be struggling. Weyrens believed that regionally there is a need for affordable housing. In addition to this project, St. Cloud has a couple workforce housing projects in the works. Weyrens stated that HRA has a waiting list of 978 households in need of affordable housing. Weyrens recognizes the challenges that comes with new construction projects in a community; however, feels this project will benefit the City and the region as a whole. Theodore Strollo Gordon, 700 1St Ave SW.�Strollo Gordon approached the Council stating there is an issue with the lack of affordable housing in the area. Having more people in the area will create a larger workforce to fill jobs. Karen Burzet, Centracare/United Way: Burzet approached the Council representing Centracare and the United Way. Burzet stated at Centracare, they are struggling to fill entry-level jobs and as housing is limited for the entry level jobs they need to fill. Neil Fortier, 401 Wesf Wind Court, Cold Spring: Fortier approached the Council representing the Stearns County Housing and Redevelopment Authority. The HRA is in full support of the project. Fortier stressed the need for affordable housing. The waiting list for affordable housing has been closed for years and the HRA does not anticipate opening that list for years to come. Fortier added that without housing, there is no economic development. Fortier stated the closest project for workforce housing that he is aware of is in Alexandria. Susan Meyer, 32869 102"d Ave, St. Joseph: Meyer is employed at Centracare and agreed with Burzet that there is a need to fill entry-level positions. Not having those positions filled, impacts Meyer's position in the 1CU. Meyer added that she owns a business in St. Joseph and has been having issues filling the vacancies. Approve Agenda: Goracke made a motion to approve the agenda with the removal of item 9b, Finance Technician—Position Hire;seconded by Loso and passed unanimously. Consent Agenda: Loso made a motion to approve the consent agenda items a-e and g; seconded by Schultz and passed unanimously. a. Minutes—Approved the minutes of April 15, 2019. b. Bills Payable—Approved check numbers 054534-054590, Payroll EFT#111662-111668 and Accounts Payables EFT#001872-001877. c. Gambling Report—Accepted the 15t Quarter 2019 Gambling Report as presented. d. BDPI Grant Agreement—Authorized the Mayor and Administrator to execute the Grant Agreement accepting BDPI Grant funding in the amount of$1.245M. � May 6, 2019 Page 2 of 5 e. 2019A Bond Pricing Opinion Proposal—Accepted the quite from the lowest bidder, Blue Rose Capital Advisors for the 2019A Improvement Bond Issues. g. Drainage& Utility Easement—Authorized the Mayor and Administrator to execute the Easement Agreement related to the administrative subdivision of Lot 2, Block 2 of Indian Hill Park. f. Capital Request Discussion—Schultz questioned if there is already a designated area to sit for those attending the Movies in the Park. Public Works Director to which Thene affirmed. Schultz questioned if City staff will be responsible for trenching the area for the place of the wires to which Thene affirmed. Schultz made a motion to approve 4f Capital Request,Authorizing the expenditure of$2,685 to install outdoor electrical services at the Community Center.The Motion was seconded by Loso and passed unanimously. Audit Presentation. BerqanKDV: City Auditor, Steve Wischmann presented the Council with the 2018 Audited Financial Report. Wischmann reported the City received the highest level of assurances and there were no reportable conditions in 2018. The audited financial statements include two documents with the first document a detailed breakdown of financial activities for all fund types. The second document is a management letter summarizing the financial activities and providing analysis of various activities. The following is a synopsis of the General Fund activities: • Budgeted Revenues of$3.3M Actual Revenues of$3.527M • Budgeted Expenditures of$3.3M Actual Expenditures of$3.220M • Budgeted other Financing Uses of$6K Actual Other Financing Uses of$276K • Budgeted Increase in Fund Balance of$3K Actual increase in fund balance of$30K • Ending Fund Balance of$2.4M The City's tax capacity grew by 5.5%which allowed the City to maintain the tax rate around 60%as in previous years. In 2018, 99.66%of the tax levy was collected which is a slight increase from the prior year. St. Joseph has always had a high collection rate. In addition to General Fund activities, the City also manages five enterprise funds to include water, sewer, refuse, storm water, street lighting, and Storm water. The water, sewer, and street light utility enterprise funds show operating income while the Refuse and Storm Water enterprise funds operated in a deficit in 2018; however, both funds still have a positive reserve balance. Wischmann thanked City staff for their work in providing the information needed to complete the audit in a � timely and efficient manner. Buckvold questioned if having the revenues exceeding expenditures is typical of Cities operating throughout the year. Buckvold added that if revenues are exceeding expenditures,where that excess money could be used to better the City. Weyrens stated that the City budgets conservatively for revenues coming in such as those for building permits as it is unknown what actual revenues will come in. Due to the staff change in the Police Department,the budget expenditures where less than anticipated. Buckvold questioned the bond rating of the City and how the City could increase that to the next level. Wischmann stated that bond rating agents look at the long term city expansion and economic development in their bond ratings as well as taxes and operating expenses over time. Schultz made a motion to accept the Z018 Audited Financial Statements.The motion was seconded by Buckvold and passed unanimously. Affordable Housinq Project: The EDA met on April 16, 2019, and recommended the City Council approve the utilization of Tax Increment Financing for the proposed affordable housing project presented by Sand Companies. The EDA also recommended the Council adopt the TIF district for the entire statutory limit of twenty-five years, using excess TIF to support other affordable housing projects such as rehabbing existing structures. The proposed site of the project is the Outlot in Liberty Point that has been on the forteiture list.The May 6, 2019 Page3of5 EDA has agreed to purchase the property from Stearns County for$25,000 contingent upon Sand Companies receiving funding.The purchase amount woufd then be refunded to the City by Sand Properties. Weyrens stated the Council will need to decide if the City will utilize TIF or Tax Abatement to support the project.There has been discussion about the access to the property and the potential construction of 2p�n Avenue and Dale Street. No proposed costs for the 20`h Avenue construction have been determined. Megan Sand Carr, Sand Companies: Carr approached the Council to provide an update on the project. Sand Companies is working through a purchase agreement with the County on the purchase of the property from the City who will be purchasing it from the County. Carr stated that because of the poverty levels,the project will not be eligible for voucher assistance. Carr stated they will apply for funding in June and will be notified if awarded in October. If awarded then the transfer of land would take place. Carr acknowledged that the property is zoned correctly for their use and discussions have been had regarding the further construction of Dale St and 2d�h Avenue. Sand Companies has offered to pay half of the cost of expanding Dale Street for their access to the property. Buckvold questioned whether the TIF amount requested has changed. Carr stated the amount is still the same at$500,000. Fortier stated the only way to change the poverty level in St. Joseph is to increase residential homes, or have the number of college students claiming St. Joseph as their residency decrease.The HUD poverty level is 20% and St. Joseph is at 20.1%. Theisen questioned if Sand Companies has looked at any area communities for affordable housing projects. Carr stated they have met with Cold Spring and Sartell.Additionally,they have properties in Sartell,Albany, and the Morningside Townhomes in St. Joseph. Schultz reiterated that Sand Companies is seeking to build a forty-eight unit affordable housing complex.The property is a tax forfeiture parcel. The EDA has recommended the City move forward with the project utilizing TIF up to$500,000 for twenty-five years.Another option for the City is Tax Abatement,which might be a better financial opportunity for the City. There is a concern with regards to property access.An extension of either 2p"' Avenue or Dale Street would be needed. Sabart stated utility extension options include a gravity sewer extension from Jefferson Lane, and a water lane connection at the east end of Dale Street.Another scenario would connect on the east side of Dale Street and the construction of a small pump station on the southern side of the lot with the sewer running along the proposed Dale Street extension. Schultz stated that he is not supportive of placing property lines between as when they need maintenance or replace it becomes difficult. The City should only be placing utility lines in the road ROW. Sabart stated that if infrastructure is put in prior to development,there are some assumptions that have to be made such as the sizing and capacity of the utilities.The City could consider extending 20"'Avenue in its current state,which is a twenty-four foot wide roadway. This would save on costs. Schultz stated the approved PUD discusses the extension of 20`h Avenue with the development of the property. Schultz added that everything points to the construction of 20`h Avenue, however it would be very costly to the City to do so. There are many unanswered questions as far as the costs of extending 2ptn Carr stated that the City could waive the utility extension fees and that could be included in the TIF proposal. Weyrens stated that the extension of the utilities along Dale St could be used for TIF as it directly services the affordable housing project. Utility extension along 20`h Avenue would not qualify. She further clarified that utilization of TIF requires all taxing entities such as the School and County to participate whereas Tax Abatement it is discretionary if they participate. Therefore, if it is reasoned that all entities have a stake in providing affordable housing than the financing option would be TIF. Conversely if the affordable housing issues is a local issue then Tax Abatement would be the financing option. Weyrens further clarified that the City has the ability to define the percentage of taxes that would be allocated. For example the existing TIF May 6, 2019 Page 4 of 5 Districts the city returns 90%of the taxes after they are paid. If the City would like to see some revenue from the project the City couid retain 20%, returning 80%to the project. Buckvold stated the project is bigger than just the construction of the roads. There is a need for affordable housing that would create a stronger community in St. Joseph. Because the EDA is a separate entity, they have agreed to purchase the property contingent upon funding approval. The purchase agreement is already in the works with Stearns County. Schultz made a motion to move forward with the affordable housing project with the following understanding: 1. 20`"Avenue needs to be constructed as a rural road,without utilities 2. TIF for the duration to be limited to the time needed for the project only 3. Utilities serving the site must be in Dale Street The motion was seconded by Buckvold. Ayes: Schultz, Buckvold, Loso, Goracke Nays: Theisen Motion Carried 4:1:0- Weyrens suggesting finalizing all the details and bringing back to the May 20"'Council meeting for approval. Loso stated he supports TIF up to$ 500,000; however he would like to see an 80/20 split as he would like to see revenue coming into the general fund. Enaineer Reaorts, CSAH 75 Traffic Siqnal Proiect: Sabart reported Ste�rns County has secured federal funding to install traffic confirmation lights on several County-owned signal lights to hefp with red light running enforcement.There is no cost to the City for the project.The County needs municipal approval for the plans to continue through the federal aid approval process. Police Chief Dwight Pfannenstein met with the County to determine which signals will include the additional signal. The identified signals include: County Road 2 and CSAH 75, County Road 133 and CSAH 75, and County Road 134 and CSAH 74. The additional signal will not be placed on all directions at each stoplight. For example, signals will be ptaced on the north and east bound lights for the intersection at County Road 2 and CSAH 75. Schultz made a motion authorizing the Mayor and Administrator to execute Resolution 2019-034 Approving County Project within Municipal Corporate Limits for Project 073-070-022. The motion was seconded by Theisen and passed unanimously by those present. Engineer Reports, Bid Results—2019 Industrial Park Improvement: Sabart reported bids were received for the 2019 Industrial Park Improvements on May 3 , 2019. The lowest bidder was RL Larson Excavating with a total bid of$3,082,855.20. The engineer's estimate was$3,428,949.25. Staff is currently working with the developer on finalizing the developer's agreement. Public Works Director Reports. Outdoor Pickle Balt Courts: Thene reported the Park Board had previously expressed interest in installing pickle ball courts by the old Kennedy School. Thene stated he would not recommend allowing players on the court at this time due to safety reasons. The costs of repairing the courts and making the courts ready for play would be approximately $25,000. The proposed Recreation Center expansion of the existing facility illustrates the new portion extending to the current tennis courts; therefore it does not make sense to spend a considerable amount of financial resources for a temporary use. General consensus of the Councit was to wait to move forward on pursuing repairs of the pickle ball courts and see if an alternative location could be found. Administrator Reports, Ordinance Amendments: Weyrens reported staff has drafted proposed amendments to Ordinance 1007 Garbage and Refuse Ordinance, Ordinance 701 Licensing and Regulation of Consumption of Intoxicating Liquor, and Ordinance 1006 Weed and Brush Control. The draft ordinances were published on the City's website for the required 10 days. May 6, 2019 Page 5 of 5 The proposed amendment to Ordinance 1007 adds a provision where refuse and recycling containers cannot be placed on the curb more than twenty four hours prior to collection or left on the curb for more than twenty-four hours after collection. The amendments to Ordinance 701 include revisions to the permanent outdoor liquor sales subdivision to maintain consistence with area cities and to update the underage consumption penalty to be consistent with the adopted alcohol matrix. Finally, the amendment to Ordinance 1006 provides additional definitions for types of weeds and grasses that are prohibited as well as additional language for penalties served on properties not in compliance with the Ordinance. Loso made a motion authorizing the Mayor and Administrator to execute Resolution 2019-035 Amending Ordinance 1007, Ordinance 701, and Ordinance 1006; and Resolution 2019-036 Authorizing Summary Publication of the same. The motion was seconded by Goracke and passed unanimously. Administrator Reports. Bond Reauest Submittals: Weyrens reported in 2017, the Council approved three resolutions identifying three projects requesting funding assistance through the State Bonding process: Jacob Wetterling Recreation Center, CR75 Pedestrian Crossing, and the first phase of East Park. The Minnesota Management and Budget Department has announced it is accepting requests for consideration in the 2020 capital budget. The deadline for submitting capital project requests is May 31, 2019. Schultz made a motion to table discussion on the bond requests until the May 20, 2019 City Council meeting.The motion was seconded by Buckvold and passed unanimously. Mayor Reports: No reports Closed Meetinq: Schultz made a motion to move into a closed session at 8:01 PM pursuant to MN Statute 13.05D 3(b)to discuss attorney-client privilege regarding two lawsuits with the College of St. Benedict.Action wil! be taken by the Council after the closed meeting.The motion was seconded by Buckvold and passed unanimously. The Council came out of closed session at 8:29 PM at which time, Mayor Schultz reconvened the meeting, Loso made a motion approving the mediation settlement agreement between the College of St. Benedict and the City of St.Joseph.The motion was seconded by Buckvold and passed unanimously. Ad�iourn: Loso made a motion to adjourn at 8:30 PM; seconded by Theisen and passed unanimously. �� ��=�'� J d We r`ens Y d inistrator THIS PAGE INTENTIONALLY LEFT BLANK