HomeMy WebLinkAbout2019 [08] Aug 05 August 5, 2019
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Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session
on Monday, August 5, 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. Community Development Director/Interim City Administrator Therese Haffner
Citv Representatives Present: City Engineer Randy Sabart, Police Chief Dwight Pfannenstein, Finance
Director Lori Bartlett, Public Works Director Terry Thene
Others Present: John Fahning, Tom Opatz, AI Brandenburger, Janice Mensinger, Duane Hanes, Bruce
Batzer, Kevin Cox, Cory Ehlert
Public Comments: None
Approve Apenda: Loso made a motion to approve the agenda. The motion was seconded by
Goracke and passed unanimously.
Tammv Omdahl, Northland Securities—Debt Manaqement Studv&Summarv Bond Ratinq: Tammy
Omdahl, financial advisor for Northland Securities, presented an analysis of the outstanding bonds held
by the City. The debt 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 a summary of the debt costs versus the requirements to pay the total debt.
The 2016B bonds that were issued is one that should be monitored and is the bond that includes the
deferred assessments.
Omdahl stated the City's bond rating is AA-. The S&P cited the City has strong financial management,
rapid debt amortization and very strong liquidity and budgetary flexibility. Sources of revenue for payment
on the total outstanding debt include: Sanitary Sewer Revenue (33%), Tax Levy(32%), Water Revenue
(21%), Sales Tax Revenue (8%), Special Assessments (4%), and all other revenues (2%).
Buckvold questioned where Local Government Aid (LGA)goes to.
Finance Director Bartlett stated LGA received goes into the general fund.
Loso asked what it would take for the City to receive an AAA rating.
Omdahl responded that the tax base size, debt burden, continued rapid amortization of the City's
debt, and maintaining strength in City reserves all contribute to a City's tax rating.
Loso asked how the percentage of debt burden versus the City's revenues factor into a credit rating.
Omdahl stated the amount of debt burden was a factor in the rating. In order to get a rating, debt
needs to be issued, however the debt needs to be managed and paid in a timely manner.
Buckvold asked how St. Joseph ranked in their credit rating versus other similarly sized municipalities.
Omdahl stated the City has a strong rating compared to other cities and would provide that
information to Bartlett to forward on to the Council.
Tammv Omdahl, Northland Securities—2019A Bond Issue: Omdahl presented a resolution approving the
issuance of the General Obligation Bond 2019A. The resolution authorizes the Mayor and Administrator
to sign the bond purchase agreement on the date of purchase and will come back to the Council for final
approval, typically on the same day. The bond amount was set to not exceed $4,700,000 at 4% interest.
Staff noted the total bond amount would more than likely be less and the interest rate could decrease as
well. Omdahl recommended approval of the issuance of GO Improvement Bonds, Series 2019A
August 5, 2019
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Loso made a motion authorizing the Mayor and Interim City Administrator to execute Resolution
2019-053 Approving the Issuance of General Obligation Improvement Bonds, Series 2019A. The
motion was seconded by Goracke and passed unanimously.
Consent Aqenda: Loso made a motion to approve the consent agenda; seconded by Schultz and
passed unanimously.
a. Minutes—Approved the minutes of June 12, 2019, July 1, 2019, July 10, 2019, July 11, 2019,
July 15, 2019, and July 22, 2019.
b. Bills Payable—Approved check numbers 054910-054972 and Payroll EFT# 111711-111724 and
Accounts Payables EFT#001892.
c. Professional Services Agreement—Authorized the Mayor to execute the professional services
agreement with SEH for the OAA Street Pavement and Trail Maintenance Plan.
d. Millstream Arts Festival Event—Approved the Street Closure as presented on September 29,
2019.
e. Bike Share Program Request—Authorized the purchase of the On Bike Share System from
Dynamic Bicycles, Inc.
f. Certificate of Compliance—Authorized the Interim Ciry Administrator to issue a Certificate of
Compliance per the Developer Agreement for Lot 2, Block 2, Indian Hill Park.
g. Request for Subordination—Approved the Transfer of the Subordination Agreement.
Batzer Second Addition/Astech Corqoration, Preliminarv& Final Plat Reauest, and Conditional Use Permit
Request: Community Development Director Haffner presented the Council with a request for Preliminary and
Final Plat approval, and a conditional use permit submitted by CLC Partners LLC, and Bruce Batzer Properties
LLC.The purpose is for the expansion of outdoor storage for Astech Corporation. The Planning Commission
recommended approval of the preliminary and final plat with a forty(40)foot drainage and utility easement
along the southerly boundary and six foot drainage and utility easements along the perimeter. Secondly, the
Planning Commission recommended approval of a conditional use permit for the proposed outdoor storage of
aggregate material and equipment related to Astech Corporation's operation.
City Engineer Sabart presented two exhibits showing the proposed location of the pump station and how large
of an easement would be needed for access. Sabart explained that the Baker St Lift Station and the CR121 Lift
Station have similar footprints, however they are not as deep as what was proposed in the Industrial Park.
There was another proposed location for the pump station, however; due to land acquisition and development,
it was moved to where it is proposed today.
Kevin Cox, CLC Partners LLC:Cox approached the Council to clarify that they were not opposed to having a lift
station in the location; however, the request is to have a smaller easement footprint. Cox stated they are willing
to have temporary construction easements to allow for the installation of the lift station, reducing the footprint of
the lift station once construction ceases.
Schultz suggested tabling the decision until the easement issue is decided upon with staff and the developers.
Bruce Batzer, Astech Corporation: Batzer stated he was willing to pay to delineate the wetland at the corner of
his property just opposite of the lift station.
Buckvold asked what needs to be done in order to come to an agreement.
Sabart stated the exhibits that were presented were not permanent and the easement lines could be
moved in order to come to a compromise.
Schultr moved to table the preliminary and final plat approval and conditional use permit request for
Batzer Second Addition submitted by CLC Partners LLC and Bruce Batzer Properties, LLC to allow the
applicants to meet with the City Engineer and city staff to discuss and resolve the easement issues
presented.The motion was seconded by Theisen and passed unanimously by those present.
City Attorney Tom Jovanovich stated the City had awarded the bid for 2019 Industrial Park Improvements.
However; before the earth can be disturbed,there are documents that need to be submitted. The City needs a
letter of credit for sixty(60)percent of the bond.
August 5, 2019
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Caribou Coffee. Variance and Conditional Use Permit: Haffner stated the applicant, Jon Fahning, and
developer, Tom Opatz LLC, have proposed the development of a Caribou Coffee on the property owned by the
City of St. Joseph located on the southeast corner of CSAH 75 and CR 133(12'h Ave SE), east of Scherer
Trucking. The City owned parcel is a .64 acre+/-lot that was acquired as a result of right of way needed to the
west for 12th Avenue SE several years ago. The applicant requested approval of a variance to the buffer
setback requirement adjacent to residential use properties. The City requires a minimum setback of fifteen (15)
feet from the property line,whereas the applicant proposed a six(6)foot setback, a variance of nine(9)feet.
Haffner reported that secondly, the applicant requested approval of a conditional use permit to allow for a drive-
thru coffee shop. The property is guided for Corridor Commercial and zoned B-2 Highway 75 Business District
and a coffee shop is a permitted use. The drive-thru is a permitted conditional use.
The Planning Commission recommended approval of the variance by a vote of 4-2 and recommended denial of
the conditional use permit by a vote of 3-3.
Haffner received concerns from residents regarding access, traffic, noise, lighting, and privacy.
Loso made a motion authorizing the Mayor and Interim City Administrator to execute Resolution 2019-
051 adopting findings of fact and approving a variance to the minimum buffer setback requirement in a
business district.The motion was seconded by Schultr.
Aye: Loso, Goracke Motion Failed: 3-2
Nay: Theisen, Buckvold, Schultz
Discussion: Buckvold stated she has traffic concerns and determined the proposal has safety
concerns. Buckvold asked for clarity whether the Council has a choice on whether to approve the requests
based on public opinion.
Sabart stated the Council does have a choice to approve or deny the requests. The decision can be
based on whether the proposal is an appropriate use for the land.Additionally, access in and out of the
property is limited as an access will not be granted along CSAH 75.The access proposed is consistent with
what would be required by the County as it would be the only one allowed based on property location. Sabart
added the County did not require a traffic impact study as the amount of the increase in traffic did not warrant it.
Sabart shared trip generation by use for a coffee/donut shop with drive-through window for nine(9)locations.
The trip generation ranges from ten (10)trips per hour up to sixty(60)trips per hour. For the proposed site,
there is enough room to have sixteen (16)cars stacked at one time and that there would be adequate room on
site to accommodate the trips per hour.
Theisen visited the site and believes the site will be a traffic and safery nightmare.
John Fahning,Applicant: Fahning approached the Council to remind them that the topic at hand was whether
to approve the Conditional Use Permit request for a drive-thru and not on access to the property.
Janice Mensinger, 1307 MN St E, St. Joseph, MN: The proposed Caribou would be to the north or her
residence. Mensinger has safety concerns about having the location so close to a busy intersection.
Duane Hanes, 1307 MN St E, St. Joseph, MN:Stated he spoke to the staff at the Stearns County Engineer's
Office and they had agreed there are traffic concerns with the access location. Hanes questioned whether the
removal of the trees on the property was necessary.
Reasons for Denial:
Buckvold stated she has traffic and safety concerns with the site. Buckvold added the variance would not in
harmony with the general purpose and intent of Ordinance 502. The variance would be detrimental to or
endanger to public health, safety, and general wellness of the neighborhood. The variance would cause hazard
to existing or future neighboring uses, in particular to residential and pedestrian traffic.
Schultz stated the variance would alter the character of the neighborhood because it affects the shrubs and
trees in the area.
Caribou Coffee, Conditional Use Permit ReQuest: Jovanovich stated the Conditional Use Permit should still be
acted upon even though the variance request was denied.
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Schultr made a motion to deny the Conditional Use Permit Request based on the following findings: 1)
The conditional use will be detrimental to or endanger public health,safety, morals,comfort,or general
welfare of the neighborhood or City,and 2)The conditional use will have vehicular approaches to the
property that will create traffic congestion or will interfere with traffic or surrounding public thorough-
fares.The motion was seconded by Theisen and passed unanimously.
Discussion: Buckvold questioned whether part of the property is being shared by the City and abutting
residents.
Fahning stated the residents that back up to the property were actually using part of the land that belongs to
the Ciry. Fahning added the challenge with the site included two counry roadways, utilities, and stormwater
management.A variance was needed somewhere in order to develop the site. In working with the Planning
Commission, discussions were had regarding the developer providing a buffer along the southern side abutting
residential properties.
Committee Reports, Personnel Committee: Buckvold made a motion to have Pam Whitmore attend and
present at a joint Council/City staff meeting the roles and responsibilities of the Council and staff
before the end of the year.The motion was seconded by Loso.
Aye: Theisen, Goracke, Buckvold, Loso Motion Carried: 4-1
Nay: Schultr
Buckvold made a motion to have the personnel committee and City Attorney Susan Kadlec conduct an
exit interview with the previous Administrator Judy Weyrens within the next thirty(30)days.The
motion was seconded by Schultr and passed unanimously.
Haffner stated the personnel policy and wage compensation study had been completed and a special City
Council meeting on August 21S`, 2019 would be held to review.
Loso asked whether the Council would be privy to the results of the exit interview.
Jovanovich stated it would be private data. The council would be able to view it, but it matters how the
information would be viewed.Jovanovich added that private data can be discussed at an open meeting, but the
Council will need to be careful on how it is discussed.
Department Reqorts, EnQineerin4: Sabart reported the MN St Trail improvement is wrapping up with lighting
and punch items being completed. The 2019 Street Improvement project will begin in a couple of weeks.
Department Reqorts, Communitv DevelopmenUlnterim Citv Administrator: Haffner reported staff and a
representative of Trobec's Bus Service met with the Stearns County Finance Committee to request tax
abatement. The request was denied; however, there is still the opportunity to present the request to the Stearns
County Board of Commissioners at their August 20`h meeting.Trobec's and city staff met with the finance
committee for ISD#742 and the request will be presented to the School Board on August 20th.The School
Board will call a public hearing to be held on September 4th.
The new City Administrator Kris Ambuehl will start on August 12th.
Dollar General plans to begin construction on August 12`h.
Department Reqorts, Finance: Bartlett stated staff has been working on the 2020 budget. At the next meeting
the draft budget items will be presented for review. The finance department is also working on finishing up
liquor licensing and rental inspections. Bartlett has been working with area cities on the half-cent sales tax
allocation as the numbers were off at the beginning of the year. St. Joseph is receiving a slightly higher
allocation than in 2018. Lastly, the Finance Technician position has been filled and the new employee will start
August 12�n
Department Reports. Police Department: Pfannenstein reported that the department was wrapping up field
training for their newest officer,Anthony Milostan. Permits for events have been applied for and will be staffed
appropriately. Lastly,August 6`h is national night out and there are three registered parties in the City that have
invited the Police and Fire Departments to attend.
August 5, 2019
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Goracke asked what the procedure or process was for an internal employee who may have mentai health
issues or PTSD from a previous incident they have experienced.
Pfannenstein responded that every year the City is required to send officers to training to handle
mental health situations. Internally, the Department does not have a program regarding mental health.
Bartlett stated that the State has recently passed laws so there are opportunities to file workers'
compensation claims for PTSD cases.
Department Reports, Public Works: Thene provided a listing of projects to be completed in the parks. Thene
suggested having security cameras for Millstream, Centennial, and the Wobegon locations due to repeated
vandalism. The funds have been budgeted for and the cameras can be installed this year if approved.
Goracke made a motion to purchase security cameras for Millstream Park Shelter, Centennial Park
Shelter, and the Wobegon Trail Head not to exceed $1,936.76.The motion was seconded by Buckvold
and passed unanimously.
Mavor Reports: Schultz reported on the following:
• Bikers will come to St. Joseph on the evening of August 14th and will utilize the Wobegon Trail,
returning to St. Joseph a few days later.
Adiourn: Loso made a motion to adjourn at 7:38 PM; seconded by Theisen and passed
unanimously by those present.
�l�ti;�.� �
Therese Haffner
Community Development Director/Interim City Administrator