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City Council Minutes 01-10-2005MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, January 10, 2005 - 7 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Glen Posusta and Brian Stumpf. Members Absent: None 1. Call to Order and Pledge of Allegiance -14 Mayor Herbst called the meeting to order at 7 p.m. and declared a quorum present. City Administrator, Rick Wolfsteller administered the oath of office to Mayor Clint Herbst and Councilmembers Wayne Mayer and Tom Perrault. The Pledge of Allegiance was said. 2A. Approve minutes of December 13, 2004 regular Council meeting BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF THE DECEMBER 13, 2004 REGULAR COUNCIL MEETING. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2B. Approve minutes of December 13, 2004 Workshop meeting_ GLEN POSUSTA MOVED TO APPROVE THE MINUTES OF THE DECEMBER 13, 2004 WORKSHOP MEETING. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Consideration of adding items to thea ends Wayne Mayer requested that approval of authorization of funds for a meeting to be broadcast on March 15, 2005 be added to the agenda. Glen Posusta asked that purchasing by city staff be added to the agenda. Clint Herbst indicated that a discussion of the governing policy would be included with the purchasing item. City Administrator, Rick Wolfsteller requested that three items be added: 1) Consideration of changing the date for the public hearing for the Municipal Consent hearing on the I-94/CSAH 18 interchange; 2) Consideration of an offer to purchase property in the plat of Jefferson Commons; and 3) Consideration of setting a public hearing for the vacation of a portion of 7" Street West. Clint Herbst indicated that changing the public hearing date for the I-94/CSAH 18 interchange project would be added to the consent agenda and the other items would be considered as part of the regular agenda. Tom Perrault added to the agenda discussion of liquor store hours and number of liquor licenses available. Jeff O'Neill added an update on development projects. 4. Citizen comments, petitions, requests and complaints. Wes Olson, 524 West 6' Street, who serves on the Senior Center Board of Directors spoke to the Council about future funding for the senior center. He stated that the senior center does a good job in meeting the needs of the residents and has done so by careful planning and budgeting. Minutes 1110105 The senior center receives funding from the City and the United Way. In 1991 the City committed to an annual contribution of $34,000 and that contribution amount has not changed. They are at the point where there could be budget deficits for the senior center. He was asking the Council to look at increasing the City's contribution to the senior center in the future. Idella Ziegler, 1201 Golf Course Road, Unit # 1203 commented on the Swan River Montessori School. Mayor Herbst stated that the Council would consider comments when that agenda item came up. Idella Ziegler indicated that because the item was towards the end of the agenda she did not know if she would be able to stay that late. The Mayor indicated that some of the items on the agenda would be moved up to accommodate those present. 5. Consent Agenda. A. Consideration of new hires and departures. Recommendation: Ratify the hires and departures as identified. B. Consideration of changing date for public hearing on CSAH 18/I-94 Interchange. Recommendation: Approve changing the date for the public hearing on CSAH 18/I-94 interchange project from January 24, 2005 to February 14, 2005. C. Consideration of adopting a cable ordinance and franchise renewal agreement with Charter Communications. Recommendation: Approve adoption of the cable ordinance, franchise renewal agreement and resolution approving summary publication of the cable ordinances. D. Consideration of authorizing registration of title for city -owned property in Otter Creek Crossing. Recommendation: Adopt a resolution agreeing to execute the necessary documents to allow for the seller to register title. E. Consideration of changing date for public hearing on the Municipal Consent hearing on the I-94/CSAH 18 interchange project. Recommendation: Approve changing the date of the Municipal Consent hearing for the I-94/CSAH 18 interchange project from January 24, 2005 to February 14, 2005. Glen Posusta suggested adding agenda items # 15, Relocation of Water Tower site; #11, Consideration of 4% fee increases and # 16, HRA's Transformation Home Loan program to the consent agenda. Tom Perrault asked that they remain as regular agenda items. GLEN POSUSTA MOVED TO APPROVE THE CONSENT AGENDA WITH THE ADDITION OF 5E, CONSIDERATION OF CHANGING DATE FOR MUNICIPAL CONSENT HEARING ON THE I-94/CSAH 18 INTERCHANGE PROJECT. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2 Minutes 1110105 6. Consideration of items removed from the consent agenda for discussion. None. 7. Public Hearing to receive public comment on Part II (Management Plan) for the Wellhead Protection Plan for the City of Monticello. John Simola, Public Works Director, provided some background information on the Wellhead Protection Plan and then introduced David Lowell from Liesch and Associates, who made a presentation on the management plan for wellhead protection. Mr. Lowell noted copies of the wellhead protection management plan had been distributed to various agencies and the City had received comments back from the Minnesota Department of Health and Rural Water Association. These comments will be incorporated into the final draft of the report. The intent of the plan is to show how the City plans to manage the wellhead protection area. This includes identifying potential contaminating sources, such as abandoned wells, hazardous waste generators, etc. Mayor Herbst then opened the public hearing on Part II (Management Plan) for the Wellhead Protection Plan for the City of Monticello. There was no one present who commented on the plan. Mayor Herbst closed the public hearing and brought the item back for Council discussion. Tom Perrault noted that in the report it was stated that the report was submitted to the DNR and Met Council. He questioned why the City would have to submit the document to the Met Council since he thought Monticello was outside the jurisdiction of the Met Council. Tom Perrault asked if the plan changes does it have to be submitted to the DNR each time it changes. David Lowell said once the plan is approved, there is a yearly review to see how the plan is working. After ten years the plan is basically redone. Wayne Mayer asked how the possible contaminating sources were identified. David Lowell indicated that the information came from the records of agencies such as the Pollution control Agency and the Department of Agriculture. He stated that identifying possible contamination sources in the City was useful for other purposes as well as the wellhead protection plan. BRIAN STUMPF MOVED TO HAVE THE CITY STAFF AND CONSULTANTS SUMMARIZE THE COMMENTS RECEIVED AND INCORPORATE THE APPLICABLE COMMENTS INTO THE FINAL PLAN PART II. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Tom Perrault asked about replacing Robbie Smith on the Wellhead Protection Plan Committee. This will be covered with the annual appointments. Minutes 1/10/05 8. Public Hearing to consider the vacation of a portion of Wright Street right-of-way from East River Street to the Mississippi River. Public Works Director, John Simola provided background information on the request to vacate a portion of Wright Street. He noted that the right of way width is approximately 40 feet. The home which was built in the 1930's -1940's encroaches two feet into the right of way. This encroachment is a title concern for the sale of the land. John Simola stated the City could reduce the right of way to 37 feet and still have adequate amount of right of way. Vernon Strand, the property owner is requesting a vacation of three feet along the entire length of the property. The City Administrator has determined a value of $2.00/sq. ft. for the right of way area which would be a cost of $1,578 for the 798 sq. ft. of right of way. Mayor Herbst opened the public hearing on the vacation of a portion of Wright Street right of way from East River Street to the Mississippi River. No one spoke for or against the proposed vacation. Mayor Herbst then closed the public hearing. GLEN POSUSTA MOVED TO VACATE THE EAST THREE FEET OF WRIGHT STREET FROM EAST RIVER STREET TO THE MISSISSIPPI RIVER AND SELL THE VACATED RIGHT OF WAY TO VERNON STRAND FOR $1,578.00 PLUS THE LEGAL COSTS OF TRANSFERRING THE PROPERTY. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 9. Public Hearing - Consideration of adopting an ordinance changing the name of a portion of 91St Street NE in the plat of Sunset Ponds. Fred Patch and Gary Anderson of the Building Department explained that an error had been made on the street name in the final plat of Sunset Ponds that showed a portion of Goodrich Drive being named 91 st Street NE. This error was discovered when building permits were issued for this area. The developer was notified of the error and had requested the ordinance amendment so that the street names in the plat would correspond to the County's grid system for addressing. No residents are affected by the proposed street name change since the units are still under construction. Mayor Herbst opened the public hearing on the ordinance changing the street name for a portion of 91 S` Street NE. No one spoke for or against the proposed street name change. Mayor Herbst then closed the public hearing. Glen Posusta asked if it is common that a street name would change on the curve of the street. Fred Patch and Gary Anderson explained that was typical with the County's grid system. BRIAN STUMPF MOVED TO ADOPT AN ORDINANCE CHANGING THE NAME OF A PORTION OF 91ST STREET NE IN THE PLAT OF SUNSET PONDS TO GOODRICH DRIVE. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. fl Minutes 1/10105 Added Item: At this time Jeff O'Neill reviewed the various development projects taking place in the City or that are in the preliminary development stage. 18. Consideration of support for development of Swan River Montessori School at the Church/Community Center site. To accommodate those residents present, this item was moved up on the agenda. Brian Stumpf asked that agenda item # 17 be moved up as well. Jeff O'Neill provided a summary on what had taken place up to this point noting that the previous Council had moved to have staff cease negotiations with the Swan River Montessori School relating to use of the former Methodist church building. At the request of Mayor Herbst this item was being brought before the Council again. The Swan River Montessori School was asking the Council to approve the memorandum of understanding. Jeff O'Neill reviewed the provisions of the memorandum of understanding and then discussed some of the pros and cons of the proposal. Swan River Montessori School would utilize the pre- paid rent to get bank financing for the project. They would also pay the cost of maintenance to operate the facility over this time period. The major drawback would be if there is a default by the Swan River Montessori School. If there is a default the City has the option to purchase back the land. Jeff O'Neill noted the City was in second position on the mortgage. Jeff O'Neill stated it was difficult to come up with firm figures. He felt the City would benefit in the amount of $750,000 over the time the facility would be in use as a school Jeff O'Neill also addressed the concern about the impact this would have on student enrollment at District #882. The major concern he noted was that if a default does occur the City has limited options available to them so there are some areas of risk. In refurbishing the building, the City would have benefit in the amount of $200,000. The City would have to make sure they generate rents from the building in an amount to offset the cost of maintenance. Isabelle Olson representing the Swan River Montessori School (District #4137) addressed the Council about the viability of the charter school. She indicated the school has received a grant from the Department of Education in the amount of $150,000. She stated that none of those who have criticized Swan River Montessori School have asked to see the financial statements or attend their board meetings. Isabelle Olson said the school is a business decision. It is not about what the Swan River Montessori School will do as a school but what it will do as a business. The school is proposing to purchase the land and building on a contract for deed. Facilities will be added to the church portion of the building for the benefit of the City. It is anticipated that the school will fund up to $50,000 in memberships and facility rentals at the MCC.. She said if the school should default, which she did not anticipate, the City could purchase the land and building at mortgage value not building value. She concluded her presentation requesting adoption of the memorandum of understanding by quoting from a 2003 article outlining the benefits a good 5 Minutes 1110105 school system provides the community. Idella Ziegler, 1201 Golf Course Road Unit # 1203 stated she has concerns about the proposal. She is not against the school but did have concerns about the research the Council had done on this. She asked if a committee had been formed to find other uses for the building. She questioned why the Council would consider subsidizing a private school and stated she did not want to subsidize students coming from other school districts. She noted that the regulations governing charter schools have and will continue to change drastically. She questioned why the City would want to risk losing the land that the City owns. It is not the City's mission to finance private education and she cited the failure of a number of charter schools. She stated that the school must have an outside sponsor that is a non-profit agency which in this case is the Audubon Center of the Northwoods. She also questioned the statement that the building could be rented out for use as a church but wondered how they came up with the $12,000 rental amount. In general she had concerns about the vagueness of the umbers that were being used. She felt the proposal had too many "ifs" to it. Glen Posusta asked Isabelle Olson to address the Audubon group sponsorship as well as the number of charter school failures. He added that the charter school is a public school and pointed out that the only reason the former church building still existed was because the charter school came forward with a proposal. Isabelle Olson said charter schools are sponsored either by a school district or a non-profit organization. Audubon of Northwoods is a branch of the Audubon Society. Swan River Montessori School is one of four schools that Audubon is sponsoring. She noted that one of the four charter schools has failed. Clint Herbst said information that the City was not aware of has come to light and the Council has to look at what its options are. He noted that to demolish the former church building would cost approximately $150,000. $200,000 has already been invested in the building and to get the building upgraded to meet current code requirements would run approximately $230,000. The other option is to sell the property to Swan River Montessori School for $200,000 on a contract for deed and $375,000 in pre -paid rent. He noted that the MCC is subsidized by the taxpayers to the tune of $1,000,000 a year. Clint Herbst did not feel the Council would do anything that would hurt the school system but they do have to look out for the interest of Monticello. He added that not all of the students at the Swan River Montessori School would be coming out of the Monticello school district. Clint Herbst felt that with all the development taking place in the area the school district might ask for a school like this at some point in the future. He felt the charter school would allow for economic development and job creation. Wayne Mayer asked for a response to the dwindling funding by the state. Isabelle Olson said the $1200/per student from the state is a grant from the federal government to the state. Kathy Augustine, 1307 Prairie Creek Lane is an employee of the Swan River Montessori School. She stated she is committed to the education of children and felt the school provided a good 0 Minutes 1110105 choice. Wes Olson, 524 West 6" Street, who resides close to the proposed facility stated he is opposed to the Council voting to help a business. Glen Posusta stated by getting a better tax base it reduces the City's taxes. Clint Herbst noted that TIF funds are used to help businesses. He noted that the school would be an expansion to the existing building and that from 6 p.m. to 1 a.m. the City would have use of the facility. Clint Herbst felt that as long as the building was sitting out there, the City has to do something with it. Chuck Sell, 2523 Briar Oakes Boulevard spoke on his concerns about the City being involved with the school proposal. He questioned the appropriateness of the City being involved in a public or private school. He also questioned how the City came up with the $750,000 net gain figure. He stated there are assumptions being made that are substantial. He questioned the value used for the church building noting this type of structure is not likely to appreciate in value. The issue is not with Swan River Montessori School but with the City's involvement with this project. Wayne Mayer asked what legal recourse the City would have if the Swan River Montessori School did not pay the fees to the MCC. City Attorney, Tom Scott said the agreement could be structured so that it could be a default under the contract. Charles Christian, 524 West River Street spoke stating the structure is no longer a church and suggested the Council have a survey taken of what the people would like to see done with this building. Wayne Mayer stated that he could not think of three individuals more qualified than those representing the Swan River Montessori School to bring this project before the Council. The Swan River Montessori School had offered funds to the public school district for use of one of their buildings but the school district had turned them down. Competition is not a bad thing, even for the schools and some times competition should be encouraged. Wayne Mayer felt that the only question of merit still to be resolved is what happens if the Swan River Montessori School defaults. He stated if the school does default the City may end up with a facility that does not mesh with the MCC and the City could end up with another white elephant. Cathy Shuman, 9640 Goodrich Avenue, stated the contribution the City makes to this project should not be compared to TIF assistance to a business. The school site is not taxable property whereas TIF funds go to properties that are taxable. Brian Stumpf stated that his position has not changed since the last meeting. He is opposed because he does not feel the City should subsidize this type of venture. Brian Stumpf stated that if the contract for deed portion is defaulted, the City would end up paying what is left on the mortgage. Clint Herbst felt that while the church portion of the building would not appreciate in value the school portion would and the facility could be used by the City if City Hall needs to be expanded. Wayne Mayer asked if there was any way the two schools could get together. Clint Herbst stated 7 Minutes 1/10/05 that efforts were made to do that but they were not successful. Clint Herbst stated that although the points raised here were good, the City does have to make a decision. He noted it was a sensitive situation but he felt this would be a good opportunity that would provide payback to the City. GLEN POSUSTA MOVED THAT THE STAFF CONTINUE TO WORK WITH THE SWAN RIVER MONTESSORI SCHOOL TO GET A PROPOSAL WORKED OUT IN ACCORDANCE TO THE MEMORANDUM OF UNDERSTANDING AND TO HAMMER OUT THE REMAINING DETAILS WITH THE APPROVAL CONTINGENT UPON REVIEW THE CITY ATTORNEY. TOM PERRAULT SECONDED THE MOTION NOTING THAT WHILE HE WAS NOT IN ENTIRE AGREEMENT WITH THE PROPOSAL IT DID PROVIDE SOME BENEFIT AND HE FELT THE CITY SHOULD MOVE FORWARD WITH IT. MOTION CARRIED WITH WAYNE MAYER AND BRIAN STUMPF VOTING IN OPPOSITION. 17. Consideration of review of Joint Fire Board agreement between Monticello Township and the City of Monticello. City Administrator, Rick Wolfsteller provided background information noting that this matter had come before the Council previously and at that time the City's offer was to provide five years of fire protection to the Township as a buyout for their interest in the fire department equipment and facilities. While the City had not received an official response from the Township his understanding was that the Township has refused the offer. Rick Wolfsteller explained the process that was used to come up with an estimate for years of service. His figures supported 3 V2 to 4 years and the Township had requested 6e years so the offer of 5 years of service he felt was a reasonable compromise. Another dilemma the community faces is with the purchase of new equipment. It was noted that the Township was not in favor of acquiring a 3000 gallon tanker which would be a piece of equipment used primarily in the township. Rick Wolfsteller stated that fire agreement could be renewed but felt there should be some clarification in the language of the agreement that would spell out how equipment purchased by one entity would be handled if it was used by the other entity. Rick Wolfsteller stated that the Township was informed that this item was scheduled on the agenda for discussion. Brian Stumpf said that with the Joint Fire Board part of the problem was that the Township has 1/3 ownership but 50% say in what is purchased. While he had originally supported an offer of five years of service he was not opposed to offering six years of service. Ken Scadden and Ted Holker representing Monticello Township spoke. The Township pays $45,000 a year for fire protection and that is why they favor the six years of service. He questioned what happens down the road. He noted the valuation should be going up more in the City than what it is in the Township. He didn't feel the Township would be using the equipment. U 0 Minutes 1110105 He felt it was a benefit to the City to have the Township out of the agreement. The 50% say and only 1/3 ownership does cause friction. Ted Holker said a lot had changed since the fire contract had been discussed in October. A lot of acres are being taken into the City and Ted Holker felt the Township's share would be reduced to 25% pretty soon. He also felt the fire department would prefer having only one governing entity making the decision. Ted Holker felt the fire department equipment was never used to its maximum and that is why they felt the fire department should be looking at used equipment. Six years of service and the Township signs off everything. After the six years of service, any fire protection the City would provide to the Township would be on a regular contract basis in the manner fire service is provided Silver Creek or Otsego. This is the option the Township is asking for. Rick Wolfsteller explained in the calculations, the market value has always been in the 30% range and added that the $45,000 per year cost for the Township is if there is no equipment purchased. Rick Wolfsteller felt the City would be better off getting out of the agreement. The agreement could be terminated either by a buyout or according to the terms of the agreement. Clint Herbst stated that he wants to keep the contract but he felt the Township didn't want to be in the agreement. Wayne Mayer agreed with Clint Herbst's comments about the Township but stated he felt the Township was part of the checks and balances in the purchase of fire equipment. He felt the Township should have 50% say. Brian Stumpf argued if the Township had 50% ownership it should have 50% say. Brian Stumpf stated he was not opposed to having an outside appraiser come in and set a value for the equipment but he did feel offering six years of service was a cleaner way of terminating the contract. Ted Holker stated if the agreement is reinstated the clarification of language that was proposed was not acceptable to the Township. He questioned the formula for charging back when both parties don't agree to jointly purchase equipment. Wayne Mayer asked if the Township wanted out of the agreement and Ted Holker said they do. BRIAN STUMPF MOVED TO OFFER THE TOWNSHIP SIX YEARS OF FIRE SERVICE EFFECTIVE FEBRUARY 1, 2005 AS A BUYOUT OF THEIR INTEREST IN THE FIRE DEPARTMENT EQUIPMENT AND FACILITIES NOTING THAT THE CONSENSUS OF THE TOWNSHIP BOARD WAS THAT SIX YEARS OF SERVICE WAS ACCEPTABLE. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Tom Perrault asked about the six years of service. Ken Scadden replied that during the six years of service all of the Township would be covered by the Monticello Fire Department. At the end of six years the Township would have the options to look to other entities for fire protection. 15. Consideration of relocation of ii'ater tower to site 44 adiacent to Kiellber-a's Park. Brian Stumpf asked if site #3 was the area that Cory Kingbay was proposing to purchase and was told it was. Public Works Director, John Simola gave a brief summary of the various locations that were considered. The staff was asking the Council to look at site 44 as the location for the 9 Minutes 1110105 tower. He showed a sketch of site #4 and how it could be laid out for the tower location. The initial concern about the site was the thickness of the layer of clay soils that would have to be dealt with. The City has received information from their consultants indicating that both sites #3 and #4 are suitable for construction of the tower. Glen Posusta asked why the City couldn't take the proposed road closer to the power line easement. He asked if the road could be squeezed over towards the pond a little more. John Simola indicated they are as close as they can be on the pond side of the road. Mark Rolfes from Bonestroo, Rosene, Anderlik & Associates was also present to answer questions. Clint Herbst noted it was difficult to site a tower after development has taken place. It is important to know what is going to be needed and where it is going to be located before development takes place. There was some question if option #3 was the same as site #4 and it was clarified that it was. Clint Herbst stated until such time as a structure was placed on the site, the open area should be maintained as green space. He also asked about the fencing around the tower. The fencing is meant as a deterrent to vandalism and Mark Rolfes indicated that with the vulnerability assessments more communities have been adding the fencing. TOM PERRAULT MOVED TO CHANGE THE LOCATION OF THE NEW WATER TOWER FROM SITE #3 (WEST OF THE THEATER) TO SITE #4, OPTION 3, LARGE (NEAR THE KJELLBERG MOBILE HOME PARK TO THE SOUTH) AND TO GIVE APPROVAL OF THE SITE PLAN SO THAT DESIGN WORK CAN BE BEGIN. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 10. Consideration of making appointments for 2005. Mayor Herbst recommended the following appointments: City Depositories - No change Official Newspaper - Monticello Times Health Officer - River Place Physician Clinic Acting Mayor - Glen Posusta. Since there are many meeting the Mayor is required to attend, Clint Herbst felt it was more important to have someone who would be available for daytime meetings to serve as acting Mayor. Brian Stumpf objected to the change from appointing the senior councilmember to serve as Acting Mayor. He felt he earned that for his ten years on the Council and felt it was a slap in the face not be designated as Acting Mayor. Community Education Advisory Board - Clint Herbst. Joint Fire Board - With the termination of the fire contract this board is dissolved. The Council felt a Fire Board would still be needed even though the Township was not longer involved with it and directed Rick Wolfsteller to come back to the Council with a recommendation on how to restructure the Fire Board. Rick Wolfsteller, Tom Perrault and Brian Stumpf were named to serve on the Fire board. Joint Planning Board - Glen Posusta and Clint Herbst. Housing and Redevelopment - Brad Barger. Wayne Mayer serving as Council Liaison. Planning Commission - Lloyd Hilgart. The Council directed that the City advertise for all 10 Minutes 1/10/0-5 vacancies to be filled on the various commissions and the Council will interview the candidates and make the appointment. Glen Posusta will serve as Council Liaison to the Planning Commission. Library Board - Dawn Fitzgerald with Brian Stumpf serving as Council Liaison Economic Development Authority - Tom Perrault and Wayne Mayer will serve as Council representatives and the City will advertise for the open position. Barb Schwientek was reappointed to a six year term. Police Advisory Commission - Brad Fyle. Wayne Mayer to act a Council liaison. Brian Stumpf had been Council representative and questioned why the change was made. Tom Perrault suggested that both Brian Stumpf and Wayne Mayer serve on the Police Commission noting that Wayne Mayer had shown an enthusiasm for being on the Police Advisory Commission. Brian Stumpf indicated that he would not serve on the Police Commission. Parks Commission - Ben Hitter and Rick Traver. Tom Perrault will act as Council liaison. DAT (Design Advisory Team) - Pam Campbell with the City to advertise for the two open positions. MCC Advisory Board - Bob Grabinski. Clint Herbst to act as Council liaison. City Attorney - Matt Brokl/Tom Scott of Campbell Knutson City Auditor - Larson Allen Consulting Engineer - No appointment was made as the Council wanted to investigate the possibility of hiring a full time engineer. City Planner - Steve Grittman from Northwest Associated Consultants Personnel Committee - Glen Posusta and Clint Herbst Wellhead Protection Committee - Tom Perrault IDC - Clint Herbst Financial Consultants - Ehlers and Associates Recycling Committee - Brian Stumpf Outdoor Storage Subcommittee - Glen Posusta Brian Stumpf asked what are the duties of Acting Mayor. Rick Wolfsteller stated that the Acting Mayor takes over in the absence of the Mayor. The City Attorney concurred with that definition. Brian Stumpf stated that the past practice of the Council was to appoint the senior councilmember as Acting Mayor. BRIAN STUMPF MOVED TO APPOINT HIMSELF AS ACTING MAYOR FOR ONE YEAR. MOTION DIED FOR LACK OF A SECOND. CLINT HERBST MOVED TO APPROVE THE APPOINTMENTS FOR 2005 AS NOTED ABOVE AND TO ADVERTISE FOR THE OPEN POSITIONS ON THE VARIOUS COMMISSIONS WITH THE COUNCIL TO MAKE A DETERMINATION ON THOSE APPOINTMENTS AT A LATER DATE. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED WITH BRIAN STUMPF VOTING IN OPPOSITION. 11. Consideration of adopting increases to various fees. 11 Minutes 1/10/05 Jeff O'Neill noted that in 2003 the Council adopted a fee schedule that would have the park dedication fee increased to $1500 per unit in 2005. Tom Perrault questioned the $50 charge on delinquent utility accounts. Wayne Mayer pointed out a typographical error on the fee schedule. The proposed fee increases amounted to 4% but it was noted that the City is currently in the process of studying the trunk fees and whether enough is being collected to finance the cost of the trunk improvements needed so there may be a later adjustment to these fees. WAYNE MAYER MOVED TO ADOPT THE CHANGES IN THE DEVELOPMENT FEES AND OTHER SERVICE CHARGES AS RECOMMENDED WITH THE CORRECTIONS TO THE PARK DEDICATION FEE AND THE CORRECTION OF THE TYPOGRAPHICAL ERROR. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 12. Consideration of revised scope of 2005 Core Street Project No. 2005-01C. Clint Herbst stated he would like to this item and set up a workshop prior to the next Council meeting dealing with how the street reconstruction program is being handled. As part of this workshop he would also like to include a review of the Public Works Department equipment. Brian Stumpf stated that he would not like to see the Street Reconstruction program pushed back too far or delayed for too long. BRIAN STUMPF MOVED TO SET A WORKSHOP FOR JANUARY 24, 2005 AT 5 P.M. TO DISCUSS STREET RECONSTRUCTION PROGRAM AND TO INCLUDE REVIEW OF PUBLIC WORKS EQUIPMENT. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 13. Consideration of imposing penalty for violations of liquor license provisions - Crostini Grille and Monticello Liquors Inc. (The Zoo). City Administrator, Rick Wolfsteller updated the Council on the compliance checks conducted by the Wright County Sheriff s Department of area liquor establishments. Crostini Grill and Monticello Liquors, Inc. (The Zoo) had violations of the liquor laws. The two establishments were notified that the Council would be considering action at this meeting. Rick Wolfsteller submitted a resolution that established penalties for liquor violations which would have a $200 penalty for the first violation; $500 if a second violation occurs within 2 years and $1,000 penalty and one week suspension of license if a third violation occurs within 2 years. Brian Stumpf said on the language for third violation it should be changed to read that the penalty for a third violation within two years would be the maximum allowed by state statute. He indicated was reluctant to utilize suspension or revocation of a license because of the hearing ( requirements involved. Wayne Mayer said the problem he had is that these establishments sold 12 Minutes 1/ 10/05 to minors who showed their actual driver's license and not fake identifications so there should have been no excuse for a sale to a minor. He felt the first violation should be more severe like $750 or possibly $1,000. He also said if it goes beyond three violations he believes there should be a revocation or suspension of the license. Wayne Mayer asked how difficult it would be to revoke a license. City Attorney, Tom Scott briefly explained the hearing procedure that is required by statute. Tom Perrault questioned whether there was going to additional compliance checks done in the future and felt the number of checks done during the course of a year should be limited. Clint Herbst suggested that this might be an item the Police Commission would want to discuss. GLEN POSUSTA MOVED TO ESTABLISH PENALTIES FOR VIOLATIONS OF THE LIQUOR LICENSE STATUTES AS SET FORTH IN RESOLUTION NO. 2005-3 WITH A PENALTY OF $750 FOR THE FIRST VIOLATION, $1,000 FOR A SECOND VIOLATION WITHIN TWO YEARS AND THE MAXIMUM MONETARY FINE ALLOWED BY STATUTE FOR A THIRD VIOLATION WITHIN TWO YEARS. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING OPPOSITION BECAUSE HE FELT THE $750 PENALTY FOR A FIRST TIME VIOLATION WAS HIGH AND ALSO BECAUSE THE NUMBER OF COMPLIANCE CHECKS CONDUCTED WAS NOT ADDRESSED. Glen Posusta asked if notice was going to be sent to all license holders notifying them of the penalty established and possibly a copy of the resolution should be included in the license renewals. 14. Review of snow plowing policy and consideration of amendments. John Simola, Public Works Director, stated that the current snow removal policy had been in effect since 1997 with amendments in 2001 and 2003. John Simola reviewed the recommended changes which included: 1) adding snow removal from parking lots to the jurisdiction of the Park Superintendent; 2) some changes in the level of service relating to snow plowing and hauling snow in the downtown area; 3) snow emergency route changes; 4) changes in the sidewalk maintenance by city staff to add area in Groveland on Savannah Avenue and Innsbrook and 5) city maintained pathways - changes to include Chelsea Road from Sandberg to Innsbrook and School Boulevard from Edmonson to TH 25. It had been proposed to clear the pathway from Fenning Avenue to Troy Marquette Drive as it was thought to be a requirement of the grant that funded construction of the pathway. However upon further research, it was determined that ISTEA funds were not used on this segment of pathway and therefore snow removal was not a requirement so it was proposed that this segment be deleted from the snow removal policy. Clint Herbst asked about snow removal from the area by the Chamber of Commerce building. John Simola indicated the City clears to the alley. Clint Herbst said he thought the City had agreed to do Broadway. John Simola said the City had agreed to do one pass on the sidewalk. This is done on both the north and south side of Broadway. Clint Herbst suggested that the City do at least one swath along TH 25 along the Flicker/Chamber block. John Simola stated that if 13 Minutes 1110105 the City provides this service for one it should be provided for all. He noted that the rest of the property owners along the block take care of snow removal. John Simola didn't want to single out one property owner for special service. Clint Herbst suggested that the City be flexible and perhaps provide this service in times of heavy snow. He didn't think this had to be a policy but just good judgment on the part of the City. John Simola discussed the section of pathway from Innsbrok Lane and Chelsea Road to Marvin Road and Sandberg Road. Because this pathway is not cleared the residents have to walk in the street. If the City takes care of the pathway there is a clear route for people to follow. John Simola said maintenance of the pathways is at the direction of the Council. The Council is also asked to authorize snow removal from the pathway from School Boulevard to Edmonson Avenue. John Simola noted the flooding of the rinks at the 4t" Street Park and asked the Council to approve the change in the skating rink flooding. Clint Herbst said with the indoor arena it might be necessary to look at this again. Chuck Fradella, 9012 Farmstead Avenue stated he a problem with snow plowing. His complaint is about ice and snow chunks being tossed into the yard. He also said he put some reflectors up but the snowplow took them out. John Simola said there is a complaint procedure that is followed when a complaint is filed. John Simola suggested the Council ride with a snowplow operator when they do their routes. John Simola also explained the different equipment used on the pathway and sidewalks. GLEN POSUSTA MOVED TO APPROVE THE SNOW PLOWING/REMOVAL POLICY AS DRAFTED WITH THE DELETION OF THE SEGMENT OF PATHWAY ALONG CSAR 18 FROM FENNING AVENUE TO TROY MARQUETTE DRIVE. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 16. Consideration of support for endorsing the HRA's Transformation Home Loan Program Economic Development Director, 011ie Koropchak explained the Transformation Loan Program. Tom Perrault stated that because he may benefit from the program he would abstain from any vote. 011ie Koropchak noted the program would apply to properties within the core city and defined those boundaries. She then reviewed the conditions that property owners would have to meet in order to qualify for the program. This will be a one year pilot program funded with excess funds from TIF District # 1-22. WAYNE MAYER MOVED TO ENDORSE THE MONTICELLO TRANSFORMATION HOME LOAN PROGRAM AS PREPARED BY THE HOUSING AND REDEVELOPMENT AUTHORITY. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT ABSTAINING. Addod ItPmc- 14 Minutes 1110105 Authorizing Expenditure: Wayne Mayer informed the Council that on March 15' the School District, City and Wright County would be doing a live broadcast from the Council Chambers on drug awareness. He was requesting authorization for expenditure of funds to cover the labor costs on that day for the technician who operates the televising equipment. WAYNE MAYER MOVED TO AUTHORIZE EXPENDITURE OF FUNDS TO COVER THE LABOR COSTS FOR THE MARCH 15, 2005 BROADCAST OF A DRUG AWARENESS PROGRAM. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Purchasing - Glen Posusta stated that it has been his position that the City makes their purchases within the City limits since local people depend on other local people and local businesses for their livelihood. He felt unless the item can't be purchased locally, all purchases should be made locally. He felt everything should be purchased locally or if that was not acceptable establish that anything less than $1,000 be purchased locally. Governing Policy - Clint Herbst brought up the governing policy. He stated that he would like to go over the 2005 budget and would like to have the purchase of those budgeted items come back to the Council for approval. City Administrator, Rick Wolfsteller asked if they would like to set a workshop meeting on this. Clint Herbst said he wanted a copy of the major purchases proposed for 2005 to look at prior to the equipment tour scheduled for January 24, 2005. Wayne Mayer stated that the listing of bills provided with the agenda does not provide sufficient information to let him know what purchases were made by what department. He said that if he knew the coding he could find out directly from the appropriate department the information he needed and he would not have to take time at the Council meeting to ascertain the details of a purchase. Organizational Study - Clint Herbst indicated that Pat Sawatzke had given him a name of a firm that Wright County had used for an organizational study. Clint Herbst stated that the Council felt a wage study should be done as well as an organizational study. He suggested the City send an RFP to the firm the County had used. TOM PERRAULT MOVED TO SEND AN RFP FOR AN ORGANIZATIONAL AND WAGE STUDY TO THE FIRM THAT WRIGHT COUNTY USED FOR A RECENT STUDY. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Offer to purchase land in Jefferson Commons - City Administrator, Rick Wolfsteller provided information on the Cory Kingbay proposal to purchase approximately 7.33 acres of land in the Jefferson Commons plat including information relating to assessments, land cost, preliminary sketch plan and time frame for development. Brian Stumpf felt the City could direct staff to negotiate a purchase agreement. Clint Herbst said he was reluctant to tie up a portion of the land that Cory Kingbay was proposing to purchase for a two year period if he could be sold to someone else who could develop it in a short time frame. Wayne Mayer said he didn't know if he felt comfortable tying up the land for a long term but because Mr. Kingbay was buying 7.33 acres the City might be receptive to it. 15 Minutes 1/10/05 1 BRIAN STUMPF MOVED TO ACCEPT THE LETTER OF INTENT SUBMITTED BY CORY KINGBAY FOR THE 7+ ACRES IN THE PLAT OF JEFFERSON COMMONS AND TO DIRECT STAFF TO NEGOTIATE A PURCHASE AGREEMENT WITH A ONE YEAR TIME FRAME FOR DEVELOPMENT. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Tom Perrault asked whether the no compete clause of the Applebee's agreement would impact this property and was informed it would not. 7' Street Vacation - City Administrator, Rick Wolfsteller provided information on the vacation request. According to the survey there was sufficient area of right of way to allow for a residential lot. Adjacent property owners were notified concerning the vacation request and only one property owner has responded. Rick Wolfsteller indicated that if the City did proceed with the vacation of the right of way it did not mean the City had to do anything with the vacated right of way immediately. Brian Stumpf said he was not convinced that the right of way should be vacated since it would create an odd shaped lot. Rick Wolfsteller noted that the Block S is owned by Randy Ruff. WAYNE MAYER MOVED TO SET A PUBLIC HEARING FOR FEBRUARY 14, 2005 FOR THE VACATION OF A PORTION OF 7TH STREET WEST. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED WITH BRIAN STUMPF VOTING IN OPPOSITION. Liquor Store - Tom Perrault stated that two residents had contacted him about the liquor store being closed at 1 p.m. on Christmas Eve and he was also wondering how many liquor licenses the City still had available. Rick Wolfsteller will check into this and report back at the next Council meeting. 19. Consideration of approving pavinent of bills for January BRIAN STUMPF MOVED TO APPROVE PAYMENT OF BILLS FOR JANUARY. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 20. Adjourn. CLINT HERBST MOVED TO ADJOURN AT 11:50 P.M. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary 16