2015-11-30 Joint Governance Meeting MinutesCity of
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St. Michael -Albertville School Board
City of Albertville
City of St. Michael
Joint Meeting
Monday, November 30, 2015, 6:00 p.m.
St. Michael -Albertville High School
PERFORMING ARTS CENTER (PAC)
MINUTES (PRELIMINARY)
1. Call to Order
STMA Board Chair called the meeting to order.
2. Recognition of STMA High School 5A State Football Champions
School Board Board Chair Birk invited the STMA football players and coaches to the stage to receive a
certificate of recognition as 5A State Football Champions on behalf of the Albertville and St. Michael city
councils and the STMA school board. Players stated their name, grade and position and Coach Essler
introduced coaches and spoke about the football program. Mayor Zachman, Mayor Hendrickson and
Board Chair Birk congratulated the team on their accomplishments on and off the field.
3. Set Agenda
The agenda was set and approved. Members of the Cities and School Board present:
City of Albertville
City of St. Michael
STMA School Board
Adam Nafstad, City Administrator
Steve Bot, City Administrator
Doug Birk, Chair
Jillian Hendrickson, Mayor
Jerry Zachman, Mayor
Gayle Weber, Vice Chair
John Vetsch, Council Member
Cody Gulick, Council Member
Drew Scherber, Treasurer
Rob Olson, Council Member
Joe Marx, Council Member
Carol Steffens, Clerk
Larry Sorensen, Council Member
Nadine Schoen, Council Member
Jeff Lindquist, Director
Chris Schumm, Council Member
Jennifer Peyerl, Director
Jim Behle, Superintendent
4. Discussion of City/School Promotional Signs
School Board Chair Birk introduced the item of posting road signs on the entrances into Albertville and St.
Michael when the school district wins a State Championship. Birk proposed posting the signs going
forward beginning with the 2015 football state championship, recognizing past state championships. The
cities stated that city and county ordinance allows for the signs, and the cost would be borne by who owns
the signs and could be a workable discussion between the cities and the school district. The City of
Albertville stated that they have a bill board by Space Aliens Restaurant which would have some available
time for the school district. Steve Bot, Adam Nafstad and Jim Behle were directed to develop a proposal to
bring to the two city councils and the school board.
Agenda Page 8
5. Discussion of Funding Options and Next Steps for Second Sheet of Ice
a. Present Background Information
STMA Board Chair Birk read the following statement:
The two cities and school district first met on October 12 to discuss a second sheet of ice after the
Youth Hockey Association (YHA) presented its plan for contributing $1 million toward the cost of a
second sheet of ice. The two cities set a target for YHA to raise $750,000 to $1,000,000 as a
condition for the cities to consider tax funding. While there may be different understandings of
what was intended in the charge to YHA, the facts are that YHA has set aside $250,000 for the
second sheet of ice including money from the Kraft challenge, a Mighty Ducks grant was received
by the STMA Ice Arena Joint Powers Board for $250,000 and YHA has received a guarantee for a
$500,000 line of credit for an 18 month term loan. YHA is responsible for repayment of the line of
credit with no commitment of collateral or co-sign by the cities or school district. YHA's intent is
not to use most or any of the line of credit, instead raising the remaining funds through
fundraising.
The charge to the two cities and school district from the last joint meeting was for each
government body to indicate if they are open to funding a second sheet of ice, and if so to identify
cost and funding parameters including consideration of two options — tax abatement levy and
voter approved bond. At this point, we do not have an actual proposal in front of us nor do we
have cost estimates for a specific design. What we have done so far is gather information in
preparation for discussion of our next steps. It was a necessary first step to get pulse from each
government body since we are joint owners before we move forward to develop a specific
proposal and expend dollars for planning.
Please note that this group is not a joint governing board and does not take votes. The intent of
these joint meetings is to facilitate communication and collaboration among the three government
bodies. Tonight we need to accomplish three items:
1. Ensure we have an understanding of each council and school board positions. A
representative from each council and school board will summarize their positions.
2. Reach consensus on a tentative timeline of tasks. We have a tentative timeline
development by the city administrators and superintendent.
3. Establish a Design Committee
From our individual school board and city council meetings, the cities and the school district seem
to agree that the current arena does not meet the school district or youth hockey community need
and there is interest in pursuing the construction of a second sheet of ice. The need for a second
sheet of ice has been discussed for over 10 years. At this point, the school board and cities are
considering a tax abatement levy with each paying one-third of the levy through property taxes.
The school district and cities have discussed different project cost limits ranging from $5 million to
$8 million with YHA contributing $1 million of the project cost. A voter approved levy through the
school district has not been ruled out, but there is acknowledgment that this option would require
an extended wait.
We know that there is a great deal of interest in this topic. While it is not the typical procedure to
set aside time for public comment at the Joint Government Meeting, we will allow up to 15
minutes. Please keep your comments to one to two minutes. We all recognize that community
input is important. However, in the interests of time we are not going to be able to answer
questions or engage in a debate. We will listen. If you have further questions or need
information, you can direct your questions to the entity best positioned to answer your question
outside of this meeting. Please do not feel you need to repeat previous comments. We know
that there people share some of the same opinions on both sides.
Agenda Page 9
b. Public Comment
Members of the community expressed their concern about, opposition to, and support of the second
sheet of ice and funding options to the joint governance board.
c. Updates from School Board and City Councils
Adam Nafstad, City of Albertville stated that at the November 16, 2015 City Council meeting, the
council discussed the Council's willingness to fund one-third of a $7 million expansion to the ice arena
with the pledge of $1 million from the STMA Youth Hockey Association (STMA YHA). Nafstad stated
the Council had discussed a voter approved referendum and tax abatement levy. Nafstad reported
that the Mighty Ducks Grant had been awarded on November 18. Nafstad said that the council was 4
to 1 in support of funding one third of a $7 million expansion through a tax abatement levy.
Steve Bot, City of St. Michael stated that their Council unanimously supports a School District
referendum vote option as it would be the best option for the tax payer due to the approximately 40%
of state equalization dollars this option would bring to the project. They acknowledged that this
option would put ownership of the second sheet entirely on the School District and are open to
remaining a part of operating costs as they have in the past. Bot further stated that on a 3-2 vote, the
Council stated they would also support a one-third share tax levy with the City of Albertville and School
District option along with the Youth Hockey contribution, but capped their support of this option at a
five million dollar project based on researched costs of other rink construction in the area.
Chairperson Birk said that the ISD 885 School Board agreed the tax abatement levy would allow the
second sheet of ice to be built sooner because the School District would not schedule a voter approved
levy for two to four years. The board will consider an operating referendum, which would be the first
priority, if the disparity in state school funding did not change. The board is concerned about
approving funding for a second sheet of ice before operating funding for the school district was
addressed. The school board recognizes the need for a second sheet of ice, but also needs to assure
that all needs of the district are addressed. School board consensus was to use a tax abatement levy
to fund a project of $5 million to $7 million. They are not opposed to a voter approved levy but
consensus was that the project needed to be done sooner than would be possible through a voter
approved bond levy. The Board expressed the desire for a second sheet to be built as reasonable as
possible but ensure that needs are addressed.
d. Determine next steps
Update on Mighty Duck Grant
Adam Nafstad stated that a grant in the amount of $250,000 had been awarded to the St.
Michael -Albertville Ice Arena Board. The grant requires a minimum dollar -for -dollar match
from non -state funding sources which would be split by the three entities.
Present tentative timeline of tasks
Nafstad reviewed the tentative timeline with the joint governance committee. Members
of the joint governance committee were concerned with the aggressive timeline and lack
of design and cost estimates. Mayor Hendrickson requested that each party pass a
resolution stating their commitment to the project. Birk stated that each entity would
need to approve the timeline at their meetings before moving forward. Nafstad will revise
timeline and provide to each entity for approval.
iii. Select representation on Design Committee
Birk stated that each entity would selection design committee representation at their
individual meetings.
iv. Schedule for School Board and Council Final Resolutions
The City of Albertville, City of St. Michael and St. Michael -Albertville school board will
review the revised timeline prior to scheduling school board and council final resolutions.
Agenda Page 10
6. Other Updates
Mayor Hendrickson asked if the School Board needed anything from the Councils with regard to the
upcoming legislative session. Superintendent Behle stated that he would keep the Councils informed of
upcoming meetings and needs.
7. Adjourn
Marx/Schoen. Motion to adjourn at 8:00 p.m. Motion carried.
Agenda Page 11