January 19, 2005
SANDSTONE CITY COUNCIL
REGULAR MEETING
January 19, 2005
CALL TO ORDER
Mayor Atterbury called the meeting to order at 7:00 p.m.
ROLL CALL
Members present: Johnson, Keller, Atterbury, Gafkjen, Bonander
Members absent: None
Staff present: Administrator Griffith, Recording Secretary Hormillosa, Stadin, CATV
Other present: Elsa Ames, Judy Britton, Geoff Hilty, Bianca Oleson, Linda Oleson, JoAnn Pellegrini, Tim Franklin, Curt Carlson & Mark Carlson of CEPCO, Mark Ruff of Ehlers, John Stanchfield, Charlene Petry, Doug Marshall, Randy Lasky of Northspan
PLEDGE OF ALLEGIANCE
Mayor Atterbury introduced East Central student, Bianca Oleson, and she led Staff and members present in reciting the Pledge of Allegiance.
ADDITIONS OR CORRECTIONS TO THE AGENDA
Motion Keller, second Bonander to approve the agenda. Motion carried 5-0.
SPECIAL ITEMS OF BUSINESS
Atterbury presented former Mayor Hilty with a plaque in appreciation for his service to the City of Sandstone.
PRESENTATION OF AWARDS, PETITIONS OR COMPLAINTS
Elsa Ames questioned the action taken by the Council at the final 2004 meeting regarding the proposed eco-farm. Griffith responded that as the property is owned by the EDA and that the EDA needs to take action, not the City Council.
Atterbury mentioned several items of concern: animal control, untimely snow removal, property owners who wish to repair their sidewalk on their own, unintelligible televised Council meetings, residents who feel the levy was too high in light of the state auditor’s report, and potential injuries at Lion’s Hill. Most of these items are being addressed in this agenda. However, Griffith did request that individuals not use the “cow tunnel” for sliding at Lion’s Hill.
APPROVAL OF MEETING MINUTES
Motion Johnson, second Gafkjen to approve regular meeting minutes for January 5, 2005. Motion carried 5-0.
CONSENT AGENDA
Item 9E – Name Mayor Atterbury as additional assistant animal control officer for the City – was removed.
Motion Gafkjen, second Johnson to approve the consent agenda as follows: Set Fire Formula meeting with townships for February 8, 2005 at 6:30 p.m. as a special Council meeting; Authorize Administrator to attend Ehlers Financial seminar on Feb 3-4; Set Council workshop for February 2 at 6 p.m. for a general discussion on development; set Thursday, April 25 as special meeting for Board of Review. Motion carried 5-0.
FINANCE OFFICER’S REPORT
Claims
Motion Keller, second Bonander to approve and pay claims in the amount of $74,362.20. Motion carried 5-0.
PUBLIC HEARINGS
Sidewalk Improvement project
In response to safety concerns, the Council has proposed a sidewalk improvement project. An assessment of the condition of the City’s sidewalks was completed about a year ago. Policy states that the cost of repair and replacement improvements will be shared equally by the City and the property owner. A map and list of proposed affected property owners has been drawn up and the owners notified of the City’s intent to undertake this improvement project and to take public comment on the project at this Public Hearing before proceeding.
Motion Keller, second Bonander to open the Public Hearing at 7:14 p.m. Motion carried 5-0.
City Hall has received several comments: Peter Methven, Methven Funeral Home, e-mailed that the sidewalk in front of the funeral home has been repaired since the assessment was completed.
Brad Peterson, Penney’s catalog store, notified City Hall that the broken sidewalk in front of his store has also been repaired since the water line break.
The property at 402 N. Court has a new owner who is interested in restoring the original sandstone sidewalk which is currently in need of leveling.
In a letter to the City, Jeannette Seitz wondered whether the City needs sidewalks at all and if it deems them useful, why the entire block is not being slated for work.
Charlene Petry, owner at 205 Commercial, appeared before the Council to request that the City work with her in restoring her uniquely- shaped, wider sidewalk.
John Stanchfield also appeared at the meeting because he had received a letter of the City’s proposed sidewalk project and did not know of any property he owned which would be included in this improvement project. Griffith reviewed the list of affected properties and concluded that Stanchfield had no property with proposed improvements.
Motion Keller, second Gafkjen to close the Public Hearing at 7:30 p.m. Motion carried 5-0.
Keller reminded the Council that the City sidewalks should be considered as part of the City’s transportation system and that the Council should consider a policy regarding where the City wants residents to be walking.
Griffith suggested that the Council consider whether it wants to retain, and spend money to repair/replace, sidewalks which served the pedestrian traffic related to the Elementary School building.
Motion Gafkjen, second Johnson to recess and continue the Public Hearing at 6 p.m. on February 2, 2005. Motion carried 5-0.
OLD & CONTINUING BUSINESS
Kettle River Townhomes – tax abatement
The City has agreed to provide assistance to the Kettle River Town Home project to make the rents more affordable. Mark Ruff, Ehlers and Associates, explained that the tax abatement is really a rebate of the increased portion of the tax for a period of time to be specified in an abatement agreement, for a maximum of 15 years.
Gafkjen wondered if the developer was looking for a determined number of years of tax abatement or a prescribed dollar amount. She also pointed out that this same developer is known to the City and has conducted that the same type of project at Sandstone Square.
Mark Carlson, developer, responded that he is looking for a dollar amount.
Johnson questioned the supposed public purpose in assisting this project. Keller responded that more residents in town mean more potential customers for local businesses and that the property value of a now-vacant lot would increase. Geoff Hilty added that the project includes the paving of a portion of Old Military Road.
Motion Keller, second Gafkjen to adopt Resolution 2005-04, directing Staff and the City Attorney to prepare an abatement agreement and to set a Public Hearing for February 16, 2005 at 7:15 p.m. Motion carried 5-0.
CITY OF SANDSTONE
RESOLUTION NO. 2005 - 04
RESOLUTION CALLING A PUBLIC HEARING
REGARDING TAX ABATEMENT IN CONNECTION
WITH KETTLE RIVER TOWNHOMES PROJECT
WHEREAS, the City of Sandstone ("City") has received a request from CEPCO (“Developer”) for financial assistance from the City in the form of property tax abatement under Minnesota Statutes, Sections 469.1812 through 469.1815 (the “Act”), in connection with Developer’s proposal to develop a 12-unit residential rental housing facility in the City (the “Kettle River Townhomes Project”); and
WHEREAS, under the Act, the City must hold a public hearing prior to approval of any abatement; and
WHEREAS, the City Council has determined to hold the required public hearing and consider the terms of abatement requested by Developer.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Sandstone, that:
1. The Council directs staff and consultants to prepare or finalize an abatement resolution and related development agreement for the Kettle River Townhomes Project.
2. The City Administrator is authorized and directed to publish a notice in the City's official newspaper announcing a public hearing before the City Council on February 16, 2005 at 7:15 p.m. in the council chambers on the abatement resolution. The notice shall be published in the newspaper at least 10 days but not more than 30 days prior to the public hearing, and shall be in substantially the form attached as Exhibit A to this resolution.
Approved by the City Council of the City of Sandstone this 19th day of January, 2005.
/s/ Randy Atterbury
Mayor
ATTEST:
/s/ Sam Griffith, City Administrator
EXHIBIT A
NOTICE OF PUBLIC HEARING
Notice is hereby given that the City Council of the City of Sandstone, Minnesota will meet at 7:00 p.m. on Wednesday, February 16, 2005 at City Hall, 119 4th Street, Sandstone, Minnesota, to conduct a hearing regarding granting of a property tax abatement under Minnesota Statues, Section 469.1812 to 469.1815 for certain property in the City of Sandstone. The property subject to the abatement is located at 405 Old Military Road. A legal description of the property is available at City Hall.
At the hearing, the City Council will consider an abatement resolution under which the City will agree to return to the developer part of the City’s share of property taxes on the property in order to assist the development of a rental housing facility. The maximum abatement is the amount necessary to pay the developer $ 153,000, or abatements for fifteen years, whichever occurs first.
The Developer has also requested that Pine County approve an abatement of a portion of the County’s share of taxes on the property. Any amount of abatement contributed by the County will reduce the amount contributed by the City, such that the total abatements paid by the County and City together will not exceed the maximum stated above.
Information concerning the proposed project, including a draft copy of the abatement resolution, will be on file at City Hall on and after the date of this notice. Any person wishing to express an opinion on the matters to be considered at the public hearing will be heard orally or in writing.
Dated: January 27, 2005
/s/ Sam Griffith
City Administrator
NEW BUSINESS
2005 Pine County law enforcement contract
Pine County has presented the City with a contract for law enforcement services for 2005. The proposed increase in the contract falls within the City’s budget. There are no new terms.
Griffith pointed out that the City may cancel the contract with a 3-month notice provided to the County.
Motion Atterbury, second Keller to approve the proposed 2005 law enforcement contract with Pine County. Motion carried 5-0.
Additionally, the Council had directed Staff to investigate the costs of developing a municipal police force. After reviewing the information obtained, the Council realized that the cost is prohibitive and that the best option would be to work on the issues at hand with the sheriff’s department.
Atterbury argued that property crimes are not given appropriate attention and that the sheriff’s department has prioritized DUI arrests. Gafkjen strongly suggested that the City insist it be provided a log of activities and a quarterly report to ensure that the City is getting service for its financial contribution. Johnson requested that the new officer assigned to Sandstone be present at a Council meeting so that the Council and public could put a face with the name. Keller suggested that communication with the sheriff’s department could be enhanced, although he pointed out that Sheriff Mansavage had appeared twice at the Council meeting to address local residents’ concerns and there was no response despite requests for him to do so.
Consensus was for Staff to request a quarterly report beginning in March, including information gleaned from the daily logs and to request that the sheriff be available to meet privately with concerned residents.
State Auditor’s press release & response
The State Auditor issued a press release stating that the City of Sandstone held extraordinarily high fund balances. While accurate the statements were also misleading. The City receives revenues twice a year, but pays bills monthly. This audit was a snapshot of the City’s financial picture and not reflective of the whole situation.
Motion Keller, second Gafkjen to allow Staff to send a letter to the State Auditor in response to this misleading information. Motion carried 5-0.
Additionally, Griffith reviewed the City’s funds and the uses for which they are reserved.
Motion Gafkjen, second Bonander to specifically reserve the fund balances and cash in these funds for the specific purposes listed and that such reservation is retroactive to January 1, 2004. Motion carried 5-0
REPORTS
Motion Keller, second Johnson to accept the reports as follows: Summary of paid claims; PeopleService operations – January 6, Library Board meeting minutes – January 11. Motion carried 5-0.
WRITTEN NOTICES AND COMMUNICATIONS
There were none.
ADMINISTRATOR’S REPORT
Griffith reminded the Council of the General Development workshop and continued Public Hearing on sidewalk improvement project set for February 2 at 6 p.m., of the Newly Elected Officials workshops on January 28-29 in St. Louis Park, and of the Fire Formula meeting with the townships on February 8 at 6:30 p.m.
He also mentioned the need for Neighborhood Watch volunteers, Skate Park Booster Club members, the progress of the Personnel Committee in filling the Assistant Clerk position, the hours for Lion’s Hill warming chalet, and the policy of no parking until City streets are cleared of snow.
ADJOURN
Motion Keller, second Johnson to adjourn at 9:05 p.m.
____________________________________
Randy Atterbury
Mayor
Attest:
________________________________
Donna Hormillosa
Recording Secretary