HomeMy WebLinkAbout06.27.23June 27"', 2023
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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 Tuesday, June 27th, 2023, at 6:OOPM in the St. Joseph Government Center.
Members Present: Mayor Rick Schultz, Councilmembers Kevin Kluesner, Bob Loso, Kelly Beniek
Absent:.Councilmember Adam Scepaniak
City Representatives Present: <Administrator David Murphy, Finance Director Lori Bartlett, Public Works
Director Ryan Wensmann, City Clerk Kayla Klein, Police Chief Dwight Pfannenstein, City Engineers
Randy Sabart and Bryce Johnson, City Attorney Sue Dege, Community Development Director; Nate Keller
Public Comments: None.
Approve Agenda: Kluesner motioned to approve the agenda; seconded by Beniek and, passed
unanimously.
Consent Agenda: Beniek made a motion to approve the consent agenda; seconded by Kluesner
who pulled item a. Minutes for discussion.The motion to approve consent items b-e passed
unanimously.
Consent Agenda:
a. Awe D quested AApprove minutes
the mintes of june F 2023
b. Bills Payable Requested Action: Approve Check Numbers 60598-60683, Account Payable &
Payroll EFT #3060-3078; Regular Pay Period 12.
c.: Donations —Requested Action: Accept the Donations as presented.
d. Local Option Sales Tax Resolution - Requested Action: Approve Resolution 2023-029 Approving
Special Legislation MN Laws and submit the Certificate of Special Law by Governing Body to the
MN Secretary of State.
e. Interior Easement Vacation Request, Northland Heights - Requested Action: Approve Resolution
2023-030 Approving interior easement vacation request.
Kluesner inquired about attendance at City Council meetings for councilmembers.
Kluesner made a motion to approve Consent Agenda Item a, seconded by Schultz and passed
unanimously.
Public Hearing — 2023 Street Improvement Project Assessment Hearing: City Engineer Randy Sabart
explained the Special Assessment hearing this evening is the second public hearing necessary when the
City is proposing to make improvements under the Chapter 429 statutes. At this hearing, the City 'Will be
declaring the cost that will be specially assessed against benefiting properties due to the improvements..
City Engineer Bryce Johnson presented a slideshow of the estimated and projected costs, a breakdown'
of cost per neighborhood and a review of the, project funding.
Johnson explained the methodology used and how the special assessment process works. He also
explained that a third party conducts a'special assessment benefit report which is used to determine what
the `maximum assessment should be to a specific type of property.
Johnson outlined the policy cap the City uses for projects and how it limits assessments for parcels. The
definition of "frontage" and its use including terms and interest rates were included in this explanation.
Sabart and Johnson detailed deferments, rates, appeal and reviewed the project schedule.
Council and staff discussed alley improvements and the methodology used in accessing those properties
who have alley access.
Council asked Staff how the interest rate for special assessments is established. Finance Director Lori
Bartlett explained it is in the City's bonding policies to charge'1.5 to 2 percent above the bond rate which
is estimated to be 3.7 percent for this project.
June 27"', 2023
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Schultz opened the public hearing at 6:29PM.
James Schwegel, 114 2nd Ave NW, Block 11 Alley. Mr. Schwegel stated the alley along his property line
was resurfaced not long ago; he also noted 2nd street along his property line has had two street
improvements in the last 30 years. He believes re -surfacing a road should last 28 years. Mr. Schwegel
feels the City should offer a kickback for having so many street assessments in such a short amount of
time. Mr. Schwegel asked what the benefits will be to his property after this street improvement:,
Sabart replied that bituminous pavements are typically designed for 20-year lifespan, this includes
streets and alleys. The City tries to lengthen the life of the road for several years by crack filling and
sealing.
City Attorney Sue Dege responded, letting Mr. Schwegel know the City hires an appraiser to determine
how much the street improvement will benefit the market value of the property. Dege shared Nagell
Appraisals performed the benefit analysis.
Mr. Schwegel asked if there are tax exempt properties in the alley.
Mayor Schultz informed Mr. Schwegel that if there are tax exempt businesses in the alley; the City is able
to assess them for improvements.
Schultz closed the public hearing at 6:42PM.
Council and Staff discussed sidewalk assessments, alley assessments, the process/methodology the City
uses when assessing property owners for improvements and who may apply for deferral of the
assessment.
Loso made a motion to approve Resolution 2023-032 Adopting Final Assessments; seconded by
Kluesner and passed unanimously.
Beniek made a motion to approve Resolution 2023-031 Awarding Bid to Larson Excavating
Contractors, Inc. for the 2023 Street Improvements; seconded by Kluesner and passed
unanimously.
2022 Audit Presentation, BerganKDV: Nancy Schulzetenberg with Bergan KDV presented the 2022 Audit
Findings. MN State Statute and the MN Office of the State Auditor require the City to have an
independent financial audit completed annually.
Schultz motioned to accept the 2022 audited financial statements; seconded by Beniek and
passed unanimously.
Series 2023A Bond Issue: Finance Director Lori Bartlett informed Council that she has been working with
Northland Securities and Taft Law Firm for the upcoming Bond Issue. The 2023A Bond Issue consists of
two parts, Go Improvement Bonds and Equipment Certificates. The Go Improvement Bonds fund the
2023 Street Improvements, and the Equipment Certificates fund the 2023 equipment needs of the City.
This Bond Issue is estimated to be $2.04 million. The final rate will be set after the prepaid period of the
assessments which ends on July 27t", 2023. The Bond Issue will be adjusted according to the prepaid
assessments. Projected interest costs on the bonds are estimated to be 3.74%. This rate may fluctuate
as the bonds will not be for sale for a couple of months.
Loso made a motion to Adopt Resolution 2023-033 Approving the issuance of General Obligation
Bonds, Series 2023A Financing Plan 2023A; seconded by Beniek and passed unanimously.
Street Closure Request — Millstream Arts Festival: City Clerk Kayla Klein informed the Council that a
special event permit application was received from Millstream Arts Festival, Inc.
June 27111, 2023
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The event will beheld August 27tn, 2023, from 11AM - 5PM. The event includes a street closure therefore
requires Council approval. The applicant has requested the closing of 1 block of College Avenue from MN
Street to Ash Street from 6AM — 7PM to allow for setup and cleanup.
Loso motioned to Approve the special event permit for Millstream Arts Festival on Sunday,
August 27t', 2023; seconded by Kluesner and passed unanimously.
Special Event Permit — Rock 4 Alzheimer's, Bad Habit Brewing Company: City Clerk Kayla Klein
informed the Council that a special event permit was received from Bad Habit Brewing Company for Rock
4 Alzheimer's.
The event will be held September 10tn, 2023, from 12PM — 9PM. Due to the amplification of the music and
number of attendees; Council approval is required. Staff has reviewed the request; Chief Pfannenstein is
requiring 1 off -duty officer to be at the event.
Kluesner motioned to approve the special event permit submitted by Bad Habit Brewing Company
for Rock 4 Alzheimer's on September loth, 2023; requiring 1 off -duty officer be present; seconded
by Beniek and passed unanimously.
Consideration of Approval of Agreement between the City of St. Joseph and Northern Natural Gas: City
Administrator David Murphy reminded the Council of two agreements the City Council passed at the June
5tn City Council meeting allowing for access to the road and an additional easement for the pipeline.
After reviewing the project with the contractor, Norther Natural Gas (NNG) has determined there is a need
for a temporary work space outside the permanent easement to perform the construction work. NNG has
offered to pay the City $1000 for temporary access to this work space for a period of up to 24 months.
Loso motioned to Approve the Temporary Work Space Permit; seconded by Kluesner and passed
unanimously.
Engineer Reports: City Engineer Randy Sabart informed the Council, based on the Councils actions
earlier in the evening; the construction contract will be issued to Larson Excavating, a construction
meeting will be scheduled for Staff and Larson Excavating.
Department Reports: Community Development Director Nate Keller welcomed Granite City Gymnastics to
the St. Joseph Community.
City Administrator David Murphy commended Police Chief Dwight Pfannenstein and the rest of the St.
Joseph Police Department for their professionalism and care while handling a recent incident within the
City.
Murphy also complimented Staff and all of the departments on coming together and working together to
complete the audit as well as other projects happening within the City.
Mayor and Council Reports/Updates: Mayor Rick Schulz gave his commendation to Police Chief Dwight
Pfannenstein, the St. Joseph Police Department and the other agencies who assisted with a recent
incident within the City.
LMC Minnesota Mayors Association is going to have a regional Mayors meeting Thursday September
14tn
Schultz shared that St. Joseph and Waite Park were awarded the honor of hosting the 2024 Coalition of
Greater Minnesota Cities Summer Conference in 2024.
Kluesner shared that he is part of the YMCA Capital Campaign Committee. Recent meetings have been
productive as momentum grows for the project.
June 271, 2023
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Ad'ourn: Kluesner made a motion to adjourn at 7:32PM; seconded by Loso and passed
unanimously.
Kayla K ein
City Clerk