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City Council Minutes 12-12-2005MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday December 12, 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. Mayor Herbst called the meeting to order at 7 p.m. and declared a quorum present. The Pledge of Allegiance was said. 2. Approve minutes of November 28, 2005 regular Council meeting. Tom Perrault noted a correction on item #6, stating it should read that a portion of Redford Lane (not School Boulevard) was to be opened to traffic. TOM PERRAULT MOVED TO APPROVE THE MINUTES OF THE NOVEMBER 28, 2005 REGULAR COUNCIL MEETING. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Consideration of adding items to the agenda. The following items were added: 1) Discussion of Families - 911; 2) turnabout; 3) Cell phone usage; and 4) Summary of closed meeting of 11/28/105. Mayor Herbst stated that he had received a letter from a property owner in the Sunset Ponds development and indicated that staff will address the concerns raised in the letter. 4. Citizen comments, petitions, requests and complaints None 5. Consent agenda: A. Consideration of approving hires and departures. Recommendation: Approve hires and departures as identified. B. Consideration of approving transfers for 2005. Recommendation: Approve fund transfers for 2005. C. Consideration of approving final budget and tax levy for 2006. Recommendation: Approve final budget and tax levy for 2006. Resolution #2005-123. D. Consideration to approve an amendment to the Monticello Zoning Ordinance for setbacks in the I-1 (Light Industrial) and I-2 (Heavy Industrial) zoning districts. Applicant: City of Monticello. Recommendation: Approve ordinance amendment Council Minutes: 12/12/05 reducing interior side yard setbacks in the I-1 and I-2 Districts from 30 feet to 15 feet. E. Consideration to approve a request for an interim use permit for the relocation of a billboard within the River Street right-of-way. Applicant: City of Monticello. Recommendation: Grant an interim use permit to Lamar Sign Company allowing relocation of a sign from the AVR site to the River Street location. The term of the interim use permit to match the time frame identified in the original Lamar/AVR lease agreement. F. Consideration of approving liquor providers for the MCC. Recommendation: Approve the 2006 liquor providers for the Community Center. G. Consideration of approving Change Order #1 - Monticello Library Expansion. Recommendation: Approve Change Order #1 in the amount of $21,552 to Greystone Construction Company on the Monticello Library Expansion, City Project No. 2004-36C. H. Consideration to approve ratification of the Fourth Amendment to the License Agreement between the HRA, City and Rocky Mtn. Group, LLC. Recommendation: Move to approve ratification of the Fourth Amendment to the License Agreement between the HRA, the City and Rocky Mtn Group LLC. I. Consideration to adopt a resolution requesting designation of the Monticello EDA as a local development organization. Recommendation: Adopt a resolution requesting designation of the Monticello EDA as a local development organization. J. Consideration to approve proposed modifications to the Monticello EDA-GMEF Guidelines. Recommendation: Approve the proposed modifications to the Monticello EDA-GMEF Guidelines. K. Consideration to adopt a resolution calling for a public hearing by the City Council on the proposed Modification to the TIF Plan for TIF District No. 1-6, a Redevelopment District. (Raindance). Recommendation: Adopt a resolution calling for a public hearing by the City Council on the proposed modification to the TIF Plan for TIF District No. 1-6 L. Approval of authorizing bids on Request for Proposal for fiber optic possibilities within the City of Monticello. Recommendation: Authorize going out for bids with the Request for Proposal (RFP) for a broadband feasibility study. M. Consideration of approving final payment and accepting improvements for the Locust Street, Walnut Street and Cedar Street Parking Improvements, City Project No. 2002-7C. Recommendation: Accept the improvement and approve the final payment of $2,138.00 to Buffalo Bituminous, Inc. subject to receipt of the final paperwork. N. Consideration of approving Change Order No. 2 to the Meadow Oak Avenue/CSAH 18/CSAH 39 Intersection Improvements. Recommendation: Approve Change Order 2 Council Minutes: 12/12/05 No. 2 in the amount of $54,687.55 for RL Larson Excavating, Inc. O. Consideration of approving Change Order No. 1 to School Boulevard Extension, City Project No. 2005-2C. Recommendation: Approve Change Order No. 1 in the amount of $4,083.88 for Randy Kramer Excavating, Inc. P. Consideration of approving street and utility maintenance responsibilities for Sunset Ponds 2"d Addition, Spirit Hills Townhomes, Hillside Farms 2"d Addition, Hunters Crossing and Nathan Court. Recommendation: Accept maintenance responsibilities for public streets and utilities in the Sunset Ponds 2"d, Hillside Farms 2"d, Nathans Court, Spirit Hills Towi-ihomes, and Hunters Crossing contingent on the roadways being swept and the right- of-way ight- ofway being cleared of debris for snow plowing operations. Q. Consideration of a request for development stage PUD for a retail/commercial development on Monticello Travel Center 2nd Addition. Applicant: Mielke/Loch Retail Development. Recommendation: Approve the conditional use permit and development stage PUD based on a finding that the proposed plan is consistent with the goals of the Comprehensive Plan, subject to the applicable conditions of Exhibit Z as follows: 1. The applicant shall revise the landscaping plan to include additional trees if required per the Monticello Zoning Ordinance. All landscaping areas shall be irrigated and provide a minimum of a one-year landscaping guarantee. 2. The photometric plan shall be subject to the review and approval of the Building Official. 3. The building elevations shall be similar throughout the entire building, with false windows at the southern, eastern and northern portions of the building. 4. The grading, drainage, erosion control and utility plans are subject to the review and approval of the City Engineer. 5. The applicant shall enter into a development agreement and PUD agreement with the City to be drafted by the City Attorney. 6. Additional comments from City staff, Planning Commission or City Council. R. Consideration to approve a request for a preliminary plat and an amendment to the PUD for Poplar Hill, a 298 unit single family residential development. Applicant: Insignia Development. Recommendation: Approve the PUD amendment and revised preliminary plat for the Poplar Hill Development based on a finding that the proposed PUD is consistent with the goals of the Comprehensive Plan subject to the applicable conditions of Exhibit Z as follows: 1. All lots and proposed units, with the exception of Lots 17 and 18 of Block 4 "flag lots" shall meet the performance standards per the zoning ordinance, unless otherwise noted within the application PUD narrative and exhibits. 2. The shared access for the commercial area shall be shifted to the south and shall be utilized as a single -loaded access. 3. The development of the commercial area shall require a separate site plan review. Approval of the Poplar Hill PUD shall not be considered an approval for any business use within the site until 3 Council Minutes: 12/12/05 additional plans are submitted and approved by the Planning Commission and City Council. 4. Access onto Lots 1-5, Block 17 shall come off of Weston Drive only. 5. The City shall need to determine if a portion of the easement area is acceptable to be included in the park land dedication. 6. The applicant shall limit the parking stalls within the park area to one hundred (100) parking stalls within the easement area. The remaining land area shall remain open space. The applicant shall identify handicapped accessible parking stalls within the park area. 7. The final street plans shall be subject to the review and approval of the City Engineer. 8. The single family homes shall meet all performance requirements of their associate districts as defined in the zoning ordinance and outlined in the planner's report. 9. Outlot J shall have a minimum of five (5) off-street parking stalls. 10. All single family residential lots within the development shall contain the required two overstory trees per lot with the exception of corner lots which require four trees. 11. No more than twenty-five (25) percent of all homes shall be split entry design in the R-1 and R -2A areas. This shall become a requirement of the private covenants. 12. All lots within the R -2A district shall be required to have no less than 60% of the front yard designated as landscaped garden areas. The City has prepared a site example and narrative information regarding this requirement which will be applicable to this site. 13. The homeowners association will be responsible for yearly landscaping maintenance in the yards of all R -2A homes. 14. The applicant shall revise the landscaping plan based upon the conditions and recommendations found in the planner's report. 15. All landscaped medians and HOA common landscaped areas shall be required to be irrigated. 16. All site signage that will be used in the residential development must be submitted prior to final approval and must meet the requirements of the Sign Ordinance. 17. Issues related to the three wetland areas on the site are subject to the review and comment of the City Engineer. 18. The grading, drainage, erosion control and utility plans are subject to the review and approval of the City Engineer. 19. The applicant shall enter into a development agreement and PUD agreement with the City to be drafted by the City Attorney. 20. The applicant is to prepare a PUD standards guide which is to contain PUD information specific to each zoning district within the development. 21. A copy of the HOA documents shall be subject to the review and approval of the City. 22. The City shall proceed with the reconstruction of 901h Street at such time that 75% of the units in Poplar Hill are complete. The developer will escrow funds to pay for their portion of the road reconstruction cost. S. Consideration of purchase by quit claim deed land needed to re -align Otter Creek Road at CSAH 75. Recommendation: Authorize staff to prepare the necessary quit claim deed and easement documents to acquire this triangular parcel at a cost of $2.75/sq. ft. or $7,139. T. Consideration of contract renewal with PSG for WWTP operations. Recommendation: Approve the new contract with PSG for a period of five years with the increase for 2006 being at 3.48% not including transfer of the current mowing contract. The total price with the mowing contract for 2006 is $620,006 which includes $39,120 in repair parts and $8,165 for mowing, fertilizing and grounds care. Years 2 through 5 of the contract are subject to a CPI increase. U. Consideration of increase in sewer and water user rates. Recommendation: Increase the sewer and water user rates by 4%. 11 Council Minutes: 12/12/05 V. Consideration of switching from three stackable recycling bins to a larger single bin. Recommendation: Approving switching all new residents to the single blue recycling bin effective January 1, 2006 and provide a limited number of replacements on the multi- colored bins. W. Consideration of granting a license allowing for a building encroachment to remain - Marian Johnson Estate (Maple Street). Recommendation: Enter into a license agreement with the Johnson Family estate which recognizes the encroachment into the City's right- of-way and agrees not to require removal of the encroachment but indicate that once it is removed it cannot be rebuilt in its present location. X. Consideration to approve a detached accessory structure in an R-4 District. Applicant: Kjellberg's Inc. Recommendation: Rescind the previous Council motion denying a conditional use permit for a detached accessory structure for Kj ellberg's Inc. based on a finding that the motion was made based on incomplete information and move to approve the conditional use permit for a detached accessory structure for Kj ellberg's Inc, based on a finding that the building should be able to meet each of the conditions of the ordinance and will minimize outdoor storage in the mobile home park. This approval should include the condition that the applicant verify the screening of the storage area from surrounding residential areas. Y. Consideration of approving Change Order #1 on the CSAR 18/I-94 Interchange, City Project No. 2004-1C. Recommendation: Approve Change Order #1 for the CSAH 18/I- 94 Interchange Project, City Project No. 2004-1C in the amount of $91,768. Item 5N was pulled and moved to the January 9, 2006 meeting. Items 5C, 5I, 5R, 5V and 5X were also pulled. BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEMS #5C,51,5N, 5R, 5V AND 5X. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 6. Consideration of items removed from the consent agenda for discussion. SC: 2006 Final Budget and Tax Levy: Glen Posusta presented a graphic that compared the tax rates of various cities in Wright County and pointed out that Monticello had the highest tax rate in Wright County. He stated that even though the City lowered their levy by several thousand dollars, he didn't feel that was enough. Glen Posusta stated that Buffalo and Monticello had been comparable as far as tax rates in 1997 but since that time Monticello's tax rate had skyrocketed. He stated that the tax bill for Monticello residents was double that of a resident of Buffalo. He added that this Council was elected because they had promised to cut spending and while some reductions have been made it is not enough. It was pointed out that to have a full understanding of the tax picture, you have to consider all the factors involved. For example, the City of Monticello does not receive any state aid, while most other communities do including Buffalo which receives $1.4 million in state aid. Some cities 5 Council Minutes: 12/12/05 increase fees rather than levy additional taxes. Where the City of Monticello picks up the cost of garbage collection, other cities charge for that service. The City of Monticello because of its growth is expending significant monies on infrastructure improvement while other communities have an already established tax base of commercial/industrial properties. Rick Wolfsteller stated that to get the true picture you have to look at all sources of revenue for each city and when you take all factors into consideration, not just tax levy, the two cities are close. Glen Posusta reiterated that the City could do more to cut their spending. Rick Wolfsteller said if additional cuts in spending are to be made, the Council needs to determine what services will be eliminated. Clint Herbt said he wanted the Council to be able to look at the spending and make cuts but still provide the services. However, he felt the City has made a good start in cutting their spending. He felt as more industrial and commercial growth takes place the City will see the tax rate shifting. Clint Herbst cautioned against making cuts that would drastically impact the services the City provides. Brian Stumpf stated he felt the City has a lot to offer its residents. Glen Posusta stated that as long as money is budgeted for parks and the community center it will be spent. He felt less money should have been budgeted for these areas. Jeff O'Neill said the City doesn't have good performance statistics which is what most communities use in their budgeting process. Glen Posusta felt the City should look at options of contracting their snow removal rather than making the large equipment purchases for snow removal equipment. Glen Posusta felt the money was being spent not because of need but because the City wants something new. Wayne Mayer commented that the Council should feel good that the City was able to reduce taxes for its residents. Each year the Council could look at making further reductions but he felt a 15% decreased in proposed taxes for their first year in office was good. Tom Perrault added that just because funds were budgeted doesn't mean they have to be spent. WAYNE MAYER MOVED TO ADOPT THE RESOLUTION SETTING THE 2006 FINAL BUDGET AND TAX LEVY IN THE AMOUNT OF $6,750,000. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED WITH GLEN POSUSTA VOTING IN OPPOSITION. 51 Designation of the Monticello EDA as a local development organization: Clint Herbst asked for clarification on this item. 011ie Koropchak explained the grant funds from the Twin City Die Cast loan were federal funds which have different restrictions adding that this grant was the only one the City of Monticello had that included federal monies.. If the repaid federal funds are loaned out again, the regulations would still apply. It is proposed to designate the EDA as the local development organization. The City would transfer the funds to the EDA and they would then loan out the funds. However, after the first re -use of the federal funds, the restrictions on the use of the funds would no longer apply. 011ie Koropchak noted regulations on federal funds are more difficult to administer. The EDA as the local development organization can set terms that would encourage use of these restrictive funds. 0 Council Minutes: 12/12/05 TOM PERRAULT MOVED TO ADOPT A RESOLUTION REQUESTING DESIGNATION OF THE MONTICELLO EDA AS A LOCAL DEVELOPMENT ORGANIZATION. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. SR PUD approval for Poplar Hill: Tom Perrault stated he had questions on the parking spaces, park land dedication and he questioned the lots sizes given in page 3 of the staff report. Jeff O'Neill stated that he couldn't give specific lot sizes but said they would all be above 12,000 sq. ft. Tom Perrault also questioned if the proposed sidewalks in this area were needed and noted maintenance problems with the sidewalks. Wayne Mayer questioned the 285 parking spaces that were proposed for the ballfield area. Staff was recommending that the plan be revised to 100 parking spaces which would average out to 20 spaces per field. He felt this was too much of a reduction in the parking spaces. Jeff O'Neill said the open space under the power line area could be used for additional parking. Clint Herbst felt the City should size the parking to the right amount to begin with. Wayne Mayer agreed that the City should make sure they have adequate parking space. Jeff O'Neill said staff would study this further. Wayne Mayer also expressed his concern that the City is proposing to waive the R-1 A standards. He questioned what the point is in having the standards if they are always waived. In the three developments thus far all three developments have been allowed to waive the R -IA standards. He felt this was something that should be looked at. Jeff O'Neill said that because of the wetland amenity in this case they could go with smaller lot size and other changes in the R-1 A standards. Wayne Mayer felt the three applicants with all three having the standards waived set a precedent. Brian Stumpf questioned the developer working with the adjacent land owner, Jeff Fischer, on the road heights. He wanted to know how the Planning Commission was going to follow up on that item. Jeff O'Neill said that would be done during the planning phase. Dick Frie, Planning Commission Chairman, stated it was on the record that this item should be taken care of. The applicant agreed that when something was going to be done then they would work with Fischer to make sure the road elevations were above the height of his land. WAYNE MAYER MOVED TO APPROVE THE PUD AMENDMENT AND REVISED PRELIMINARY PLAT BASED ON A FINDING THAT THE PROPOSED PUD IS CONSISTENT WITH THE GOALS OF THE COMPREHENSIVE PLAN SUBJECT TO THE APPLICABLE CONDITIONS OF EXHIBIT Z WITH CONDITION #6 BEING REMOVED. WAYNE MAYER AMENDED HIS MOTION ADDING THAT STAFF BE ALLOWED TO MODIFY CONDITION #6. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION. SV Switching Recycling Bins - Wayne Mayer stated he didn't notice the bins in the Council Chamber otherwise he wouldn't have pulled the item. Clint Herbst asked why the City didn't go to a wheeled cart. John Simola reviewed the reasons they selected the model they did. He noted that there are wheel kits available for the carts. It was noted that not all recycables are comingled. The paper is kept separate from other recycled materials. Clint Herbst asked how delivery would 7 Council Minutes: 12/12/05 be made. John Simola indicated they would be delivered with the garbage carts. BRIAN STUMPF MOVED TO SWITCH ALL NEW RESIDENTS TO THE SINGLE BLUE RECYCLING BIN EFFECTIVE JANUARY 1, 2006 AND TO PROVIDE A LIMITED NUMBER OF REPLACEMENTS OF THE MULTI -COLORED BINS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. SX Conditional Use Permit for detached accessory structure- Kjellberg's. Wayne Mayer said he pulled this because the concern of whether the Council felt an open front building would be acceptable. Glen Posusta said there are no grading plans, hard surfacing for the building, elevations or landscaping information shown. Jeff O'Neill said grading and drainage would not be an issue since the water is self-contained on the property. Jeff O'Neill said the addition of the structure is not going to change the runoff pattern. Clint Herbst said he thought the structure was going to the back of the property and he was not impressed with the design of the building. Jeff O'Neill presented some pictures of the area. The building will be behind a line of lilacs and would not be seen from TH 25. The intent of the building is to clean up some of the outside storage. Brian Stumpf said the only reason he would like to see the building put up is to get rid of the outside storage. Fred Patch explained that when the property came into the City the uses were already established and Kjellbergs has not intensified or enlarged the non -conforming uses. The building would be constructed as soon as possible after approval is received.. It is not proposed to have hard surfacing in the building at this time. Clint Herbst felt this was an opportunity for the City to get the area cleaned up. The accessory building was subject to three conditions. 1) The building had to be screened from adjacent mobile home units; 2) the storage area needs to be surfaced to control dust and drainage and 3) storage area is for the sole use of the residents of the mobile home park. Clint Herbst felt the applicant needed to provide more information. Glen Posusta noted that there was no screening or landscaping plan submitted. Clint Herbst said they want to see what is going to be removed in the way of vegetation and what they are going to replace it with. He also questioned the building materials that were proposed to be used. BRIAN STUMPF MOVED TO TABLE ACTION ON RESCINDING THE PREVIOUS COUNCIL MOTION DENYING THE CONDITIONAL USE PERMIT AND APPROVING A CONDITIONAL USE PERMIT FOR AN ACCESSORY STRUCTURE FOR KJELLBERG'S INC. UNTIL ADDITIONAL INFORMATION IS PROVIDED. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 7. Public Hearing - Continued hearing on appeal of a variance for a secondary driveway, in an R-1 zoning district. BRIAN STUMPF MOVED TO CONTINUE THE PUBLIC HEARING ON THE APPEAL OF THE VARIANCE FOR A SECONDARY DRIVEWAY IN AN R-1 ZONING DISTRICT FOR RICHARD BASTIEN. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 0 Council Minutes: 12/12/05 8. Consideration of approving a conditional use permit for a 896 sq. ft. detached accessory structure in an R-1 Zoning District. Applicant; Richard Bastien Central Masonry and C nn rretP BRIAN STUMPF MOVED TO TABLE ACTION ON APPROVAL OF A CONDITIONAL USE PERMIT FOR 896 SQ. FT DETACHED ACCESSORY STRUCTURE IN AN R-1 ZONING DISTRICT. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 9. Review and consideration of approving snow removal plan. Brian Stumpf stated he felt the proposed snow removal policy was good but he did have one concern which related to the area of Broadway with the medians. When the plow makes a right turn onto Broadway it leaves piles of snow on the side streets. Brian Stumpf felt this should be cleaned up. John Simola believes this happens because the plow swings around to avoid the curb but he indicated they would look at that. Clint Herbst asked about the incident with the children in Groveland. The resident had suggested that the snow plows not be operating on the street when students were being picked up or dropped off from school. John Simola indicated that would be a 3-4 hours period of the day and so he did not think that would be practical. John Simola stated the drivers are trained to watch for the children. Clint Herbst felt that this is one reason why sidewalks are needed. Clint Herbst suggested contacting the school district about sending a letter out to the parents to encourage them to have the children remain on the sidewalk and out of the plow area. Glen Posusta asked about the roads with center turn lanes not being plowed. John Simola explained that the City doesn't plow after every snow fall. The plows go out after a 2" snowfall or if icing conditions exist. Glen Posusta brought up School Boulevard. Bret Weiss said he didn't see any reason that School Boulevard couldn't be open all the way up to Redford Lane. John Simola stated that Redford Lane does not meet the design standards for street adding that the curb has not been backfilled. Council suggested narrowing up the width of the street area they plow so that the plow doesn't hit the curb. John Simola asked about the lights being turned on along the street. After discussion the Council determined the lights should be turned on. Wayne Mayer suggested contacting the school to have the bus drop off the kids at the first driveway rather than at the intersections. WAYNE MAYER MOVED TO APPROVE THE FOUR CHANGES TO SNOW PLOWING POLICY AS FOLLOWS: 1) ADD SCHOOL BOULEVARD FROM HIGHWAY 25 TO COUNTY ROAD 18 TO THE PRIMARY SNOW EMERGENCY ROUTE; 2) ELIMINATE THAT PORTION OF SCHOOL BOULEVARD FROM THE SECONDARY SNOW EMERGENCY ROUTE THAT WAS TRANSFERRED TO THE PRIMARY SNOW EMERGENCY ROUTE; 3) ADD DEEGAN AVENUE FROM SCHOOL BOULEVARD TO THE COMMUTER PARKING LOT TO THE SECONDARY SNOW EMERGENCY ROUTE D Council Minutes: 12/12/05 AND 4) COMBINE CHELSEA ROADS EAST AND WEST AND ADD THEM TO THE SECONDARY SNOW EMERGENCY ROUTE ALL THE WAY FROM COUNTY ROAD IS TO COUNTY ROAD 39 WEST. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 10. Consideration of salary schedule adjustments for 2006. City Administrator, Rick Wolfsteller provided the background information on the cost of living increase that was being proposed. He explained the information from the two CPI's that were used (US CPI and Mpls-St. Paul CPI). The 2006 budget provides funds for a 4% increase and step increases. The Council discussed whether this item should be considered in conjunction with agenda item #11. Clint Herbst didn't feel the Council had a good grip on the comparative value study. Brian Stumpf stated he would like to see this item completed before the end of the year even if it means an extra meeting. Glen Posusta felt in most years the City has given a cost of living increase based on the high end of the CPI. Wayne Mayer said he is not a proponent of across the board wage increases as he felt it rewarded mediocrity. He felt pay raises should be based on annual review by the supervisor. Clint Herbst stated his belief that pay equity would require increases be across the board. Brian Stumpf stated he would not like to see the budget cut in this area as the City has a good crew of workers. Glen Posusta asked how the cost of living increase would impact the union. Rick Wolfsteller replied the union would get the same amount of increase given to non-union employees. The union contract however has a minimum of I% increase so if no cost of living increase is given to non-union employees, the union employees would still get at least a 1% increase. Wayne Mayer asked if employees are getting reviewed each year or are they just automatically given the step increase. Glen Posusta didn't feel the COLA should be going up because there may also be a salary increase for employees because of the comparative salary study. He didn't think any thing should be done on increases until the comparative study was completed. Wayne Mayer suggested this could be approved by the Council at their January 9, 2006 meeting and made retroactive to January 1. BRIAN STUMPF MOVED TO TABLE THIS UNTIL THE SPECIAL MEETING PROPOSED FOR MONDAY, DECEMBER 19, 2005 AT 5:30 P.M. Since some Councilmembers could not make that time an alternative date was selected. BRIAN STUMPF MOVED TO CONSIDER THE SALARY ADJUSTMENTS AT A SPECIAL MEETING TO BE HELD ON TUESDAY, DECEMBER 20, 2005 AT 6 P.M. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 11. Consideration of salary schedule adjustment based on comparative data To be considered at special meeting on December 20, 2005. 10 Council Minutes: 12/12/05 12. Consideration of options on Kingbay property purchase. Rick Wolfsteller provided background information relating to the purchase of a 7 %2 acre tract located north of the theater site in the Jefferson Commons development. Cory Kingbay, the purchaser of the property is having difficultly firming up tenants for the site and is requesting extension of the purchase agreement similar to the extension given to Mike Krutzig. Rick Wolfsteller stated that Muller Theater was interested in acquiring a small area of the Kingbay site, approximately 1/3 acre for a proposed expansion of their facility. Cory Kingbay indicated he had meet with Mike Muller regarding the theater expansion and felt it was something that could be worked out. Mr. Kingbay is proposing a 2 V2 acre site for restaurant and the middle portion of the site for retail development and the use for the remaining area of the site has not been determined. Mr. Kingbay indicated that within 3-6 months he felt he would have something on the first site. Clint Herbst felt the theater expansion could be accomplished as well as allowing Mr. Kingbay additional time to sign up his tenants. Wayne Mayer asked if the terms would be the same. Rick Wolfsteller stated the terms would be the same but a time extension of between 3-6 months would be given and the City would not be selling to Mr. Kingbay that portion of the site proposed for the theater expansion. Brian Stumpf did caution about granting extensions on the future sites within the Jefferson Commons. Glen Posusta asked about what happens to the $20,000 deposit if Mr. Kingbay fails to proceed. Tom Scott suggested tabling action on this item until a new agreement is signed. Cory Kingbay stated that now that School Boulevard is completed he expects that there will be more tenant interest in the site. GLEN POSUSTA MOVED TO TABLE UNTIL JANUARY 9, 2006 ACTION ON THE AMENDMENT TO THE CONTRACT FOR PRIVATE DEVELOPMENT. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 13. Review of biosolids manufacturers presentation and consideration of further research. Bob Brown from Bolton & Menk reviewed the study and research that had been done on the manufacturers of drying equipment for biosolids treatment. The field has been narrowed down to three manufacturers; Kruger, US Filter and Komline-Sanderson. The Biosolids Committee is now going to do some in depth study of these three manufacturers including onsite visits to their facilities. He emphasized the need to do the research in order to make an informed decision. US Filter and Komline-Sanderson have facilities in Arkansas and Tennessee that is the City would be visiting and studying. The cost to visit these sites would be approximately $1200 person which includes air fare, hotels, meals and transportation. Clint Herbst asked when construction of the biosolids facility was proposed to start. Bob Brown indicated it is planned to start in early summer. Wayne Mayer asked about the manufacturer who had an explosion occur during the drying process. Bob Brown explained the incident that had taken place and the steps the manufacturer took to correct it. The committee was impressed by the action the company took and included them in their list of manufacturers to be studied further. It was noted that the City 11 Council Minutes: 12/12/05 of Buffalo is considering Kruger. Buffalo is doing incineration and drying as one package. Kruger does not have any operating facilities in the United States similar in size to Monticello but they have one in Denmark that would be comparable. Wayne Mayer asked about the biosolid pellets being tubular or granular. Bob Brown said if they are too hard the particle won't break down the first year and release the nitrogen. Going with a hard product does reduce the dust. The Council discussed the proposed facility going in at Mystic Lake but the time frame needed to study that would not coincide well with the City's time frame. Glen Posusta asked what would be the worse case scenario. Since the City can't be assured that another community would accept the biosolids that the City's system could not handle and that landfilling the excess biosolids would remain an allowable and cost effective option, staff was reluctant not to continue studying the heat drying process for biosolids treatment. Clint Herbst felt the cost to investigate these options would be minimal and it would have to be done regardless of when the City decides to install biosolids drying option. Glen Posusta said he didn't want to see a mistake similar to the one made with the WWTP. BRIAN STUMPF MOVED TO AUTHORIZE BOB BROWN FROM BOLTON & MENK AND REPRESENTATIVES FROM THE BIOLSOLIDS WASTE COMMITTEE TO CONTINUE EVALUATING THE BIOSOLIDS DRYING MANUFACTURERS AND THEIR EQUIPMENT UNTIL A REPORT CAN BE PRESENTED TO THE CITY WITH A RECOMMENDATION FOR THOSE TO BASE BID THE PROJECT. THIS ALTERNATIVE WOULD ALLOW BOB BROWN AND 3 COMMITTEE MEMBERS TO VISIT THE ARKANSAS AND TENNESSEE LOCATIONS AND OBSERVE THOSE MANUFACTURERS EQUIPMENT IN OPERATION AND DISCUSS OPERATIONS WITH STAFF MEMBERS FROM THOSE COMMUNITIES. IN ADDITION THEY WOULD STUDY THE KRUGER SITE IN DENMARK WITH THE MANUFACTURER PICKING UP THE COST OF AIR FAIR FOR TWO MEMBERS OF THE REVIEW COMMITTEE AND THE CITY PICKING UP THE COST OF THE THIRD MEMBER. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED WITH GLEN POSUSTA VOTING IN OPPOSITION. 14. Review status of Kjellberg West garbage pickup agreement. This item came before the Council in 2004. The Council allowed Kjellberg to use his contract hauler through the end of 2005. At that time Kjellberg was suppose to enter into an agreement with the City for garbage pickup. Kjellberg has indicated he is not willing to comply with the provisions of the ordinance. The City has two options: 1) they can amend the ordinance to exclude mobile home parks from organized garbage collection or 2) the City can enforce their ordinance. With option #2 the City would advise Kjellberg that the City will be providing the garbage collection service for the mobile home park. If Kjellberg continues to use his current contractor he would be assessed for garbage collection. Brian Stumpf noted there was a cost difference between the City contractor and Kj ellberg's contractor so he could understand Kjellberg's reluctance to go with a higher price garbage hauler. Clint Herbst said the City has an ordinance in place and had agreed to let Kjellberg go with his hauler until December 31, 2005 but now he felt the provisions of the ordinance should be enforced. 12 Council Minutes: 12/12/05 GLEN POSUSTA MOVED TO ENFORCE THE EXISTING ORDINANCE AND REQUIRE THE ENTIRE MOBILE HOME PARK TO USE THE CITY'S WASTE HAULER. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED WITH BRIAN STUMPF VOTING IN OPPOSITION. 15. Consideration of adjustments to utility trunk fee programs including an increase in fees. Bret Weiss reviewed the memo relating to trunk fees with the Council covering the following areas: Unit Charge:. He addressed the unit charges -vs- acreage charges noting that the acreage charge was based on 2.5 units per acres. He added that developers whose property would have significant wetlands area would prefer the unit charge. Assessment of fees: Bret Weiss stated the trunk charges would still be assessed but the term would be for 3 years instead of 10 years. Transfer of SAC Fees to Sanitary Sewer Trunk Fees: At the present time 30% of the SAC fees are transferred into the sanitary sewer trunk fund. It is proposed that in the year 2018 the City would begin depositing 100% of the SAC fees into the WWTP Assignment of Credits: Credits should be reviewed on a case by case basis. He noted that properties on the edge of development that require that trunk facilities be extended also need to be reviewed on a case by case basis to determine if the developer should upfront the cost of the trunk facilities. Growth Rate: A growth rate of 300 units per year was used for the first 10 years and 380 units per year after that. Fees: Sanitary Sewer - It is being proposed that the sanitary trunk fee be increased to $1,132 per residential unit and $2,830 per acre for commercial/industrial development. Water: The water trunk fees would be increased to $872 per residential unit and $2,180 per acre for commercial/industrial development. It was also proposed to add a $0.15/100 cu. ft. increase to the water rates. John Simola pointed out that at this meeting the Council had approved a 4% increase in the sewer and water rates. Storm Sewer: The storm sewer trunk fees will be separated into two parts, ponding cost and trunk costs. Property owners are responsible for providing ponding on their site by either constructing ponding improvements or by paying a fee for a regional ponding site. Wastewater Treatment Plant: It was felt that a separate fund be established for the wastewater treatment plant. Bret Weiss recommended that $1,000,650 be transferred from the sanitary sewer trunk fund to the wastewater treatment plant fund. From now until 2018 70% of the SAC fees collected would be transferred to that fund. 13 Council Minutes: 12/12/05 Capital Improvements: Bret Weiss discussed capital improvement plans noting the items were not cut in stone. He pointed out that they are proposing in the future the construction of a water treatment plant for removal of manganese with the cost being picked up by increased user fees and in part by trunk charges. John Simola asked if new growth covers the cost of expansion or would the City have to raise taxes to pay for this. Bret Weiss said with fees being adjusted on a regular basis, it should not be necessary to increase the tax levy. There is no debt transfer as the City will likely be bonding for the improvements. Bret Weiss emphasized the need to look at the rates on a regular basis and determine if adjustments are needed. Rick Wolfsteller asked if the 300 units were residential units or if it included commercial and industrial. Bret Weiss indicated it was just residential units. Rick Wolfsteller asked if a downswing in the economy would put the City in the red. Bret Weiss felt if the economy slowed so that the City did not have 300 units per year, the need for expansion of trunk facilities would also be slowed and the City would not be incurring expenditures for trunk facilities. John Simola said the City has been pulling monies from the SAC fees to take care of replacement items and felt this was something that the City should look at. He also felt the City could help itself by not extending trunk facilities before infilling of existing service areas is complete. Clint Herbst noted that this issue did not address the park dedication fee. Jeff O'Neill said that park dedication fees would be coming back before the Council as a separate item in January. Clint Herbst stated the City's park dedication fee is lower than most other communities and should be adjusted. He added that the public is adamant about having the parks and trails put in. Jeff O'Neill said included in the park dedication fee is the actual cost of developing the parks including items such as play structures etc. Clint Herbst felt the park dedication fee should be set now. Wayne Mayer suggested setting the park dedication fee at $3,500 per unit and then do the research to determine the justification to support it. CLINT HERBST MOVED TO AUTHORIZE INCREASING THE SAC FEES TO $3,802 EFFECTIVE JANUARY 1, 2006, INCREASE THE TRUNK SANITARY SEWER FEE TO $1,132/RESIDENTIAL UNIT AND $2,830/ACRE EFFECTIVE JANUARY 1, 2006; INCREASE THE WATERMAIN FEES TO $872/RESIDENTIAL UNIT AND $2,180 PER ACRE EFFECTIVE JANUARY 1, 2006; INCREASE THE STORM SEWER FEES TO $3,120/NET ACRE WITH ALTERNATE PONDING PAYMENT FEES OF $8,176/ACRE INDUSTRIAL; $6,997/ACRE COMMERCIAL AND $3490/ACRE RESIDENTIAL EFFECTIVE JANUARY 1, 2006 AND TO SET THE PARK DEDICATION FEE AT $3500 PER UNIT. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION. 16. Review of update of feasibility report on Core Street Reconstruction Program, considering scope of work for 2006 and call for a public hearing. Two options were presented. Option #1 would cover the approximately 3500 lineal feet including Otter Creek Road, Riverside, Circle, Sandy Lane from Otter Creek Road to CSAH 75 14 Council Minutes: 12/12/05 and River Street from Otter Creek Road to 600 feet east of Kenneth Lane. This phase could be done based on the street reconstruction funds of $750,000. Option #2 would be the completion of the balance of the streets in area #3. This work area would require the City to bond for the improvement rather than funding it from budgeted funds. When the Street Reconstruction Program began it was looked at as being a 7-10 year project. Depending on the amount of project proposed to be completed on an annual basis, this program may have to be extended beyond that. The Council questioned whether the cul-de-sacs needed reconstruction since they were constructed later and appeared to be in good condition. They felt River Street which was constructed in 1975-1976 was in need of reconstruction. John Simola stated they didn't want to leave the cul-de-sac area go for too long and noted a problem with a waterline that freezes up. Prior to 2005 the improvements such as curb and gutter were assessed at 100%. In 2005 the Council assessed only 20% of the new improvements that were covered in this project. John Simola stated the City needed to study how assessing 20% of new improvements would impact the program and the funds needed to complete it. Rick Wolfsteller suggested the City not go back and forth on their assessment policy. Does the City want to pickup 80% of new construction or is new construction going to be assessed fully. There was some question on whether curb and gutter should be required. There was also discussion on pathway an how that would work on a rural design street. Wayne Mayer asked if the cul-de-sacs would bring in enough property owners to reduce the project cost per unit. The Council directed Bret Weiss to look at the cul-de-sacs and see how many units that would add and how it would impact the cost. Bret Weiss suggested holding a public hearing for the area to see how much work the residents want done. Rick Wolfsteller stated that if the City does more than $750,000 worth of work the City would have to bond for it. If the City doesn't assess more than 20% then the rest of the funds would have to come from taxes. Clint Herbst felt last years project was a model project and hoped the 2006 project would turn out comparably. It was suggested the City notify the affected properties and get their input and then define the scope of the project for 2006. The public hearing would be set for the first meeting in January. The Council discussed having an informational meeting prior to the public hearing. BRIAN STUMPF MOVED TO SET THE INFORMATIONAL MEETING FOR 5:30 PM ON JANUARY 9,2006; UPDATE THE FEASIBILITY STUDY, SET A DATE FOR THE PUBLIC HEARING OF JANUARY 9, 2006 AND AUTHORIZE PREPARATION OF PLANS AND SPECIFICATIONS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 17. Consideration of authorizing staff to prepare options for relocation of Deputy Registrar's Office. A committee was set up to look at the relocation of the DMV to the Community Center and met with Kitty Baltos to look at various options. The MCC Advisory Board expressed a concern 15 Council Minutes: 12/12/05 about the DMV being located in the recreational area of the Community Center. The proposal to use one of the two conference rooms for space for the DMV was not favored by staff because the meeting rooms are heavily used. Rick Wolfsteller stated that originally the DMV was moved to another location because the activities were disruptive to normal city hall functions. The staff was looking for direction from the Council on this issue. Staff suggested a number of options that could be considered in relocating the DMV. Regardless of what option the Council selected staff felt there was a need to have assistance in architectural questions and coming up with realistic cost estimates. Jeff O'Neill stated there was no one on staff qualified to do that and they would look to an outside consultant for this assistance.. Clint Herbst said one of the options was to look at the east side of the door where you enter city hall. A counter could be set up there and the waiting area would be in the lobby portion. Glen Posusta stated that he and Wayne Mayer had come up with scenarios for the DMV that would not be disruptive to City activity. The drawing that was in the Council package was not what was intended and he questioned who authorized the preparation of that drawing. Glen Posusta didn't feel that what they were proposing was that much more different than what was done when space was remodeled to accommodate the engineer position. For that reason he didn't feel an architect was needed. Jeff O'Neill stated this type of project was getting beyond Fred Patch's expertise. Staff felt a cost estimator would be needed before the work could be done. The staff was requesting authorization to get prices for the work. Clint Herbst asked how many square feet of space the DMV needed. Rick Wolfsteller noted that there is no storage at City Hall and DMV would require a secure storage area for their license plates. It is not known how much space is needed by DMV for their operations. That information is required in order to determine if the DMV can relocate to the MCC. Clint Herbst suggested Fred Patch measure the area currently utilized by the DMV and then lay out that size area in the Community Center. Clint Herbst suggested that Glen Posusta and Wayne Mayer head this up and determine if an architect is needed. Glen Posusta stated he believes there is a hidden agenda to not relocate the DMV to the Community Center. Wayne Mayer said they don't need an architect to find out how much space is needed by the DMV. Fred Patch informed the Council that he does have an architect degree and discussed the process needed to get the project started. He suggested that there be an information gathering phase. He indicated that the DMV could go in the building but the site would have to be carefully selected. Glen Posusta felt the City was losing a lot of revenue because people don't know where the DMV is located. Fred Patch said it would be wrong to relocate the DMC in an emergency fashion. The City needs to look at the long term and then determine what would be the best location. Wayne Mayer stated that in their concepts for the DMV relocation to the Community Center there would still be two conference room but they would not be in the same location as they are now. Dan Lemm, 11380 Cameron Avenue, expressed his concern about the parking problems that Council Minutes: 12/12/05 exist at the site and how the presence of the DMV in the building would compound that. CLINT HERBST MOVED TO HAVE WAYNE MAYER AND GLEN POSUSTA PROCEED WITH GETTING INFORMATION ON THE SPACE NEEDS FOR THE DMV AND IF NECESSARY BE AUTHORIZED TO ENLIST THE SERVICES OF AN ARCHITECT OR OTHER CONSULTANT TO ASSIST WITH COST AND DESIGN QUESTIONS. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED WITH BRIAN STUMPF VOTING IN OPPOSITION. Added Items: Cell Phone Usage - Glen Posusta decided not to address the item at this meeting. Families 911 -. Wayne Mayer spoke about the work the group is doing and how it is funded. The drug awareness group is putting on another event coming up in March. There is a cost involved in sponsoring these public events. Wayne Mayer would like the Council to consider a $2500-$5000 grant to the MEDA chapter. He noted that MCC charges the group $600 for the use of the MCC facility. Tom Perrault felt the facility should be made available for this type of use. The group would need to use the facility 2-4 times a year. The consensus of the Council was that MCC facilities should be made available to them without charge. WAYNE MAYER MOVED TO AUTHORIZE DONATION OF $2,000 AND USE OF THE MCC FACILITIES WITHOUT CHARGE FOR A LIMITED NUMBER OF EVENTS TO MEDA. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED. Tom Perrault questioned where the $2,000 would be coming from. Rick Wolfsteller indicated the money was budgeted. Roundabout: There is a meeting with Wright County concerning construction of a roundabout on the County Road 18 in the area of the Meadow Oak Avenue frontage road. Bret Weiss noted Wright County would probably not be in favor of the roundabout. It was noted that the school entrance is not directly in line with Meadow Oak Avenue which is a problem to resolve if a roundabout is constructed. The County is likely to question whether there is enough benefit to add the roundabout. This will be brought back at the January 9, 2006 Council meeting. Glen Posusta felt that the roundabout would slow traffic down and the County should consider this a safety factor. Bret Weiss felt a roundabout would be more acceptable than a U-turn at Chelsea Road. Wayne Mayer and Clint Herbst will be attending that meeting as will representatives from WSB & Associates. Fiber Optics Task Force: Wayne Mayer extended his thanks to the members of the Fiber Optic Task Force. He read a statement commenting on the work the task force had accomplished and the recognition that it was bringing to Monticello Summary of closed meeting of 11/28/05: Clint Herbst stated that the City Council had conducted a closed meeting on November 28, 2005 to conduct a performance review of the City Administrator. Areas of strength were noted in the performance as were areas where 17 Council Minutes: 12/12/05 performance could be beefed up. 18. Consideration of approving bills for December. BRIAN STUMPF MOVED TO APPROVE PAYMENT OF BILLS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 19. Adjourn Clint Herbst thanked everyone for their help on the things that the Council was able to accomplish this year. He thanked staff for their work and also thanked Glen Posusta for all the time he spent at City Hall. Brian Stumpf extended holiday wishes and the meeting was adjourned at 11:00 p.m. Recording Secretary IV