City Council Proceedings 825

Transcription

1 825 Mayor Nickolay called the meeting to order at 6:00 P.M. with the following members present: Nickolay, Bruzek, Jirik, Ryan, Tuma Staff Present: Mike Johnson, Ken Ondich, Jim Gareis, Glen Sticha, Bruce Reimers, Patty Solheid and Mary Jo Hruby City Attorney Scott Riggs and City Engineer Chris Cavett were also present. It was moved by Nickolay and seconded by Bruzek to approve the Agenda. Planning/Community Development Director Ondich reviewed with the Council the City has been participating in the Municipal State Aid Street (MSAS) funding program since 2003 when the City s population exceeded 5,000. The purpose of the funding is to provide the community with financial resources from the Highway Users Tax Distribution Fund for construction and maintenance of highways and streets of interest within the community. The City is required to contract with a qualified engineering firm to complete the necessary services to benefit from the State Aid System dollars. The new proposal from SEH provides State Aid services from January 1, 2017 through December 31, 2017 in the amount of $6,250 for routine services which is about a 4% increase from the previous contract ($250 increase). It was moved by Ryan and seconded by Jirik to approve the proposal for Municipal State Aid Street Engineering Services for 2017 from SEH. City Engineer Chris Cavett informed the Council the City is expected to receive approximately $220,000 in Municipal State Aid (MSA) construction funding in These funds can be utilized for eligible construction costs on state aid designated streets. The City s construction fund balance on January 1, 2017 is still estimated to be negative at ($58,000). The negative balance on January 1, 2017 is still the result of an $814,000 advance for Second Street in 2012 and an initial advance payment in 2015 of $269,766 for this project. The subsequent annual allotments used as pay back in 2013, 2014, 2015, 2016 as well as the proposed allotment in 2017 still will not provide a positive balance to complete the state aid funding request for the 2015 project. The City is eligible to advance up to 5 times the City s annual allotment, or $1.1 M above the January 2017 fund balance. However, the eligible State Aid costs necessary to close out the 2015 project are only estimated at less than $40,000. A request for only the estimated eligible costs would be necessary at this time. The advance of state aid funds is interest free to the City. Mr. Cavett provided a Resolution requesting MNDOT to approve an advance of MSA funds. It does not obligate the City to advance MSA funds, but does reserve such funding for City use in 2017.

2 826 It was moved by Bruzek and seconded by Tuma to approve RESOLUTION # MUNICIPAL STATE AID STREET FUNDS ADVANCE RESOLUTION. All Planning/Community Development Director Ondich reviewed the request received from Chris Witt of Witt Development, Inc. to amend the Developer s Agreement they have with the City for the Heritage 11 th Development. They have someone interested in constructing a home on Lot 1, Block 3 and is not currently possible as the existing Developer s Agreement specifically states that the City will not allow building permits to be issued on Lots 1 and 2, Block 3 unless a temporary cul-de-sac is constructed at the easterly end of 11 th Street NE or until such time as the road is extended into the adjacent property. The main issue that was identified in 2005 when the Developer s Agreement was approved was that the City did not want to plow the dead end roadway segment. Public Works has at times been plowing this section and sees no issue with plowing it. The other issue that may have been an impetus for the requirement for a temporary turn around was fire trucks not being able to turn around on the roadway. The lots have frontage along multiple roads for emergency vehicle access. It was moved by Bruzek and seconded by Ryan to approve FIRST AMENDMENT TO DEVELOPERS AGREEMENT FOR HERITAGE ESTATES SUBDIVISON NO. 11. All City Administrator Johnson reviewed the final outline for a Stakeholder Advisory Committee proposal to involve community participation in the preliminary engineering design phase for the MNDOT Highway 19 Reconstruction Project. The committee would consist of between 10 to 15 members, is anticipated to meet approximately every other month throughout the project development process, and are asked to fulfill a two year commitment. It was moved by Nickolay and seconded by Tuma to approve the Advisory Committee Outline with applications for the Stakeholder Advisory Committee due on January 20 th and approval at the February 6 th City Council meeting. City Attorney Riggs reviewed the proposed draft Ordinance amending Title IX of the New Prague City Code by creating a new Chapter 94 as to Predatory Offender Residency Regulations. Mr. Riggs received comments from the Council and answered their questions. The Final Draft Ordinance will be prepared for review on January 3, If the review on January 3, 2017 is satisfactory, the Council can call for a Public Hearing on the Ordinance at 6:00 p.m. on January 17, 2017 and introduce the Ordinance. At that meeting, representatives of the Bureau of Criminal Investigations MN Dept. of Corrections, and possibly the Jacob Wetterling Foundation will be invited to attend and offer any comments on the draft Ordinance or answer any public comments or questions concerning the Ordinance. Following the January 17 th Council meeting, City Staff would have the Ordinance prepared for final review and adoption on February 6, 2017.

3 827 City Administrator Johnson reviewed the proposed recommendations on Chart, Inc. business subsidy issues from October 17, 2016 City Council meeting. At the October 17 th City Council meeting, the City Council reviewed and had discussion on the business subsidy issues associated with the Contract for Private Development with Chart, Inc. and the City, School District and Scott County. City Staff worked with the Department of Employment and Economic Development to determine what the final job retention and creation counts would be in order to address the original project goals. The City Attorney and City Administrator recommend the following: 1. Follow the s lead and acknowledge that the final job retention goal will be 468 jobs and the job creation goal will be jobs; 2. That by creating new jobs, Chart met 44.7% of the Job Creation goals in the Contract and provides for an authorized subsidy totaling $645, That Chart will need to repay the $173, as over payment for the Business Subsidy Assistance received and paid to date which totaled $819, The City will discontinue the existing ($64,699/yr.) and new ($62,181/yr.) Tax Abatements totaling $126,850/year beginning in That the City Attorney should be instructed to prepare the necessary contract changes to accomplish those actions. Council Member Jirik stated that looking at the difference in the property value, it justifies to the tax payers that it has helped keep their taxes down and it s an investment to our community. It has kept the levy rate reduced. This is how she would justify it to the taxpayers of not having the repayment. After discussion, it was moved by Bruzek and seconded by Tuma to approve the following proposed recommendations on Chart, Inc. Business Subsidy Issues from October 17, 2016 City Council meeting: 1. Follow the s lead and acknowledge that the final job retention goal will be 468 jobs and the job creation goal will be jobs; 2. That by creating new jobs, Chart met 44.7% of the Job Creation goals in the Contract and provides for an authorized subsidy totaling $645, That Chart will need to repay the $173, as over payment for the Business Subsidy Assistance received and paid to date which totaled $819, The City will discontinue the existing ($64,699/yr.) and new ($62,181/yr.) Tax Abatements totaling $126,850/year beginning in That the City Attorney should be instructed to prepare the necessary contract changes to accomplish those actions. All voted in favor of the motion except Jirik voted against. (4-1) City Administrator Johnson and Finance Director Solheid reviewed the revised proposed 2017 Golf Budget. The Council held discussion on the golf budget and the GME Contract.

4 828 Finance Director Solheid reviewed the Resolution Adopting the 2017 City Budgets and Capital Improvement Plan. This budget includes summaries of the General Fund, the Proprietary Fund s (Water, Wastewater, and Electric), the Non-Major Proprietary Funds (Ambulance, EDA, EDA Industrial Park, Golf and Storm Water), the Special Revenue, Capital Project and Debt Service Funds. This reflects everything talked about in the budget workshops. City Administrator Johnson reviewed the Resolution Adopting 2016 Property Tax Levy Collectible in The City s total property tax levy for 2017 for all purposes is $4,017,000, an increase of $134,673 or (3.47%) over the 2016 property tax levy. Discussion was held on reducing the levy based on the Chart tax abatement levy of $126,850 not being needed in It was moved by Jirik and seconded by Ryan to approve RESOLUTION # RESOLUTION APPROVING 2016 PROPERTY TAX LEVY COLLECTIBLE IN 2017 with a reduction of $20,000 or a Levy at 2.95% over the 2016 property tax levy with the other remaining funds from the abatement tax levy, the Council would allocate $50,000 to address the Armory Building Demolition Project in 2017 and add $56,850 to the Contingency Account in the Unallocated Budget, all within the General Fund. All voted in favor of the motion except Bruzek voted against. (4-1) It was moved by Nickolay and seconded by Ryan to approve RESOLUTION # RESOLUTION ADOPTING CITY BUDGET FOR 2017 AND CAPITAL IMPROVEMENT PLAN (CIP) for with the corresponding Budget changes with the Property Tax Levy. All voted in favor of the motion. (5-0) The proposed Compensation Plan for 2017 has been adjusted by 2.75% and has been included in the 2017 Budget at this recommendation. The Police Union Agreement is settled for 2017 at It was moved by Jirik and seconded by Tuma to approve the Compensation Plan for Planning/Community Development Director Ondich presented the proposed 2017 Official City Fee Schedule to the Council. The major changes include electric rate increases, planning survey/site plan review increases, zoning verification letter increase, and created one and two day tournament fees for the use of the Memorial Park Baseball Field. Staff will be back with additional fees in 2017 related to fees that had not yet been approved by the New Prague Utility Commission as well as suggested fee changes for building permits. It was moved by Nickolay and seconded by Bruzek to approve RESOLUTION # RESOLUTION ADOPTING AN OFFICIAL 2017 FEE SCHEDULE. All Mayor Nickolay amended the consent agenda with adding to the claims for payment the DEED pay back for the Chart MIF Loan at $277,

5 829 It was moved by Nickolay and seconded by Tuma to approve the following consent agenda items: A. Approve December 5, 2016 Meeting Minutes B. Approve Claims for Payment C. Approve 2017 Tobacco Licenses D. Accounts Receivable Write-Off s E. Mayoral Appointments for Boards/Commissions for January 3, 2017 F. Approval of 1 Month Extension of Agreement with Golf Management Enterprises, LLC G. Approval of 2017 Southwest Metro Drug Task Force (SWMDTF) Joint Powers Agreement City Administrator Johnson noted the Cedar Lake Area Water & Sanitary Sewer District will pay the City on December 22, 2016 as result of September 30, 2016 Arbitration Award. Mr. Johnson also noted that the New Prague Area Schools is advertising for an Aquatics Manager. It was moved by Nickolay and seconded by Bruzek to adjourn the meeting at 8:36 P.M. ATTEST: Charles L. Nickolay, Mayor Michael J. Johnson City Administrator