HomeMy WebLinkAbout08.19.24August 19", 2024
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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 19t", 2024, at 6:OOPM in the St. Joseph Government Center.
Members Present: Mayor Rick Schultz, Councilmembers Adam Scepaniak, Bob Loso, Kelly Beniek,
Kevin Kluesner
City Representatives Present: City Administrator David Murphy, Public Works Director Ryan Wensmann,
Police Chief Dwight Pfannenstein, Finance Director Lori Bartlett, Community Development Director Nate
Keller, City Attorney Sue Dege
Public Comments: None.
Approve Agenda: Scepaniak motioned to approve the agenda; seconded by Kluesner and passed
unanimously.
Consent Agenda: Loso motioned to approve the consent agenda; seconded by Scepaniak and
passed unanimously.
a. Squad Purchase to Replace Unit 704 - Requested Action: Replace 2018 Ford Explorer with a
2024 For Explorer.
b. Bills Payable— Requested Action: Approve Check Numbers 62245-62289, Account Payable &
Payroll EFT # 3442-3457; Regular Pay Period 16.
c. Donations — Requested Action: Approve Resolution 2024-052 accepting donations.
d. Finance Report — Requested Action: Accept the July 2024 financial reports as presented.
e. Declaration of Official Intent to Reimburse 2024 Street Improvement Costs — Requested Action:
Adopt Exhibit A the declaration of intent to reimburse costs relating to the general capital
equipment with future certificate proceeds.
f. Issuance of Tobacco License — Requested Action: Approve Tobacco license for Ocean Tobacco
2 at 219 MN St E for the term September 1 st — December 31 st, 2024.
City Administrator David Murphy noted a typo on consent agenda item f. The address on the Ocean
Tobacco 2 license should read 219 Cedar St E.
Public Hearing — Business Subsidy Policy Update: Community Development Director Nate Keller
presented an update to the business subsidy policy. The current policy dates back to 2002 and has
attachments that are missing and cannot be located. Since 2002 there have been changes to statutory'
requirements. The revised policy includes:
• Reformatting the policy
• New supplemental documents
• Subtraction of references to attachments that are no longer relevant
A public hearing is required when the Business Subsidy Policy is updated.`EDA recommended approval
of the updated policy at their June 18t" meeting.
Mayor Schultz opened the public hearing at 6:03PM.
As no one wished to speak, Schultz closed the public hearing at 6:03PM.
Kluesner moved to adopt the Business Subsidy Policy; seconded by Scepaniak and passed
unanimously.
Tammy Omdal --Northland Securities:
a. Debt Management Plan
Tammy Omdal presented the annual debt management study which is prepared with the assistance of
the city's Finance Director. 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 the summary of the debt costs versus the requirements to pay the total debt.
She gave an analysis of the outstanding bonds held by the City of St. Joseph and presented a graph
comparing the City's rating to other MN cities. Omdal informed the Council that Staff remains diligent in
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monitoring the City's debt and the repayment of that debt. The city continues to maintain its AA- rating
which is a very strong rating.
b. Issuance General Obligation Bonds, Series 2024A
Omdahl informed the Council that before them is a resolution to consider for adoption which would grant
issuance and sale of the General Obligation Bonds, Series 2024A. The bonds are sold to finance the
City's 2024 Street Improvements and to pay the cost of the issuance of the bonds. The bonds were sold
this morning after the city council adopted a trigger resolution in June which allowed for city staff and the
mayor to sell the bonds prior to the August 19th city council meeting. The bonds are structured with a ten-
year repayment plan.
Kluesner made a motion to adopt Resolution 2024-053 providing for the issuance and sale of
General Obligation Bonds, Series 2024A; seconded by Scepaniak and passed unanimously.
Knife River Interim Use Permit Request: Community Development Director Nate Keller provided the
council with a presentation of an Interim Use Permit Request received by Knife River Corporation. Keller
informed the council the Planning Commission voted 7-0 in favor of the Finding of Fact as drafted and no
one chose to speak at the public hearing held at the August 12th PC meeting. Knife River is proposing to
operate a portable crushing operation and store/stockpile the processes concrete or asphalt material. The
applicant is requesting to crush place Monday — Saturday from 7AM — 7PM for an approximate three-
week period during the construction season.
Councilmember Kluesner asked if the operations will be limited to three weeks out of the year.
Holly Runnoe, Knife River. Runnoe explained the crushing will last approximately three weeks during the
construction season. She went on to explain they have been crushing at this site; however, are looking to
move the crushing operation to an adjacent parcel they own.
Loso made a motion to approve the Finding of Fact Resolution 2024-054; seconded by Beniek and
passed unanimously.
American Legion Building Material Request: Keller presented a building material request submitted by
the American Legion. They are proposing to insulate and reside the west side of the building using red,
white, and blue steel siding. Because the building is in the downtown district there are limits on allowable
materials. Deviation from those limits requires Planning Commission recommendation and Council
approval. The Planning Commission voted 7-0 to approve the proposed building materials as presented
by the American Legion at their August 12th meeting.
Loso made a motion to approve building material request to allow American Legion to install steel
panel siding with exposed fasteners on the western side of their building; seconded by Beniek
and passed unanimously.
Deferment of Street Assessment for PID 84 53300 0302 owned by Robert B Rassier Family Trust: City
Attorney Sue Dege explained the Rassier Family Trust property filed for deferment of their 2024 Street
Assessment (based on the properties agricultural use) until the property is developed or sold. Dege
explained it was discovered the property is in Green Acres status, which, by statute means it is
automatically put into deferment. The city may impose an interest rate which would be collected along
with the assessment when the property loses Green Acres status. Dege asked the council to discuss
whether they would like to impose an interest.
Councilmember Kluesner inquired about a deferment granted to the Rassier Family Trust on a prior
assessment.
Dan Rassier, Rassier Family Trust. Rassier shared the Rassier Family Trust has previously been
assessed on a different parcel for a different project. They were granted a zero percent interest rate for
fifteen years unless they sold the property, at which point the assessment would be due in full and any
accrued interest.
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Kluesner asked if the interest that begins to accrue in year sixteen is compounded as well or if an interest
payment is due each year.
Dege confirmed the interest accrues beginning year sixteen and compounds until the property is sold.
Kluesner shared he would like to impose the same parameters that were set with the first Rassier Family
Trust deferment that was granted.
Loso made a motion to defer the 2024 Street Assessment for PID 84.53300.0302 for a period of 15
years at zero percent interest beginning to accrue in year sixteen at the assessment rate at that
time (2039); seconded by Kluesner and passed unanimously.
Department Reports: Murphy informed the council he will be out of the office on August 23,d
Mayor and Council Reports/Updates: Scepaniak shared the groundbreaking for the House of Hern Food
Hall was today.
Beniek shared that she attended the groundbreaking for WR Home Company's new store WR Littles Co.
Shultz shared that controlling vehicle and pedestrian traffic on the northwest side of town will need to be
addressed as business in that area continues to grow.
Closed Meeting: Schultz announced the City Council will enter into closed session Pursuant to
MN Statute 13D.05, Subd. 3(c)(3), to consider counteroffers for the acquisition of portions of the
following properties: PID 84.53300.0268 owned by Ryan Parsons; PID 84.53546.0005 owned by Bill
Arndt; PIDs 84.53360.0003 and 84.53360.0004 owned by WG Properties; PID 84.53546.0004 owned
by MN Association Farm Mutual Ins.; and PID 84.53546.0002 owned by 701 Elm Street Properties
LLC.
Adjourn: Meeting adjourned following the closed meeting.
Kayla Klein
City Clerk