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City Council Minutes 01-08-2007 Council Minutes 1/8/07 MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, January 8, 2007 -7 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Brian Stumpf and Susie W ojchouski. Members Absent: None. lA. Call to Order and Plede:e of Allee:iance. Mayor Herbst called the meeting to order at 7 p.m. and declared a quorum present. The Pledge of Allegiance was said. lB. Oath of Office to Mavor and newly elected Council. City Administrator, Jeff O'Neill administered the oath of office to Mayor Herbst and Councilmembers Brian Stumpf and Susie Wojchouski. 2A. Approve minutes of December 11. 2006 Reszular Council meetinsz. Wayne Mayer stated that on item #5G, replacement of the furnace at the fire hall, he wanted added after the first sentence, "Wayne Mayer expressed his concern in having the inspections department define the lowest responsible bidder." Tom Perrault noted a number of typographical errors in the minutes. WAYNE MAYER MOVED TO APPROVE THE MINUTES OF THE DECEMBER 11, 2006 REGULAR COUNCIL MEETING WITH THE CORRECTIONS NOTED. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED WITH SUSIE WOJCHOUSKI ABSTAINING. 2B. Approve minutes of December 21. 2006 Special Council meetinsz. Tom Perrault noted an error in the wording of item #2 relating to the charitable gambling license for the Monticello Youth Hockey Association. WAYNE MAYER MOVED TO APPROVE THE MINUTES OF THE DECEMBER 21, 2006 SPECIAL COUNCIL MEETING WITH THE CORRECTION NOTED. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED WITH SUSIE WOJCHOUSKI ABSTAINING. 3. Consideration of addinsz items to the aszenda. John Simola stated that additional information was being supplied relating to item #5D, the contract for removing hazardous material from the Monte Club site and asked that this item be pulled from the consent agenda. I Council Minutes 1/8/07 4. Citizen comments. petitions. reauests and concerns. None 5. Consent Ae:enda: A. Consideration of ratifying hires and departures for MCC and liquor store. Recommendation: Ratify the hires and departures as identified. B. Consideration of approval of wine/strong beer license for Cornerstone Cafe and Catering. Recommendation: Approve the wine/strong beer license for Cornerstone Cafe and Catering contingent upon payment of appropriate license fee. C. Consideration of application for off-sale 3.2 beer license for Target Store, T -2180 at 1147 East 7th Street. Recommendation: Approve an off-sale 3.2 beer license for the Target store located at 1447 East 7th Street contingent upon payment of license fee. D. Consideration of approving amended contract for hazardous material removal from the Monte Club site. Recommendation: Approve the amended contract in the amount of $8,885 with Veit and Company for asbestos removal at the Monte Club. E. Consideration of final acceptance of the Hillside Farms 2nd Addition Development, City Project No. 2004-08P. Recommendation: Accept the public improvements for the Hillside Farms 2nd Addition subject to receipt of the two-year warranty bond and submittal of the landscaping letter of credit. F. Consideration of approving Change Order #1 for Xcel Ballfield Fencing, City Project No. 2006-19C and consideration of final payment. Recommendation: Approve Change Order # 1, a deduct in the amount of $1,150 and to authorize final payment to Oberg Fence for City Project No. 2006-19C in the amount of$13,750.25 resulting in a total project cost of$18,7l7. G. Consideration of revisions to the 2007 fee schedule. Recommendation: Approve revisions to the 2007 fee schedule to reflect a fee of $ 13/per day for animal boarding and $35 for animal disposition and to delete the reference to bus tickets since that is no longer a city fee. H. Consideration of authorizing establishment of Deputy Registrar Manager position. Recommendation: Authorize the preparation of job description, establishment of job points and advertise for the position of Deputy Registrar/Motor Vehicle Manager. WAYNE MAYER MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEMS #5D, #5F AND #5H. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2 Council Minutes 1/8/07 6. Consideration of items removed from the consent alZenda for discussion. #5D Amended contract for hazardous material removal at Monte Club Site: John Simola stated that the additional cost information submitted at this meeting came about after the original contract was amended. The contract had been increased because asbestos in the ceiling had washed down along the walls. It was later discovered that pipes under the floor used for duct work also contained asbestos. Staff got an hourly quote from the contractor for removing the pipe of$3,735. The original contract amount for the asbestos removal was $4,825. An additional $4,060 was added because ofthe asbestos along the wall. The $3,735 for the pipe work would bring the total revised contract amount for asbestos removal to $12,620. John Simola indicated the final figure may be less since it appears that it will not take the full 10 hours estimated to complete the pipe removal. Brian Stumpf expressed his concern that the specialist who did the inspection for asbestos material did not do a more thorough investigation. John Simola stated the City used this individual for hazardous material inspections on other sites the City had demolished but those were residential sites and this was a commercial property. Clint Herbst asked legal counsel, Tom Scott, ifit would be a violation of law if staff would e-mail the Council to inform them of this type of situation. Tom Scott indicated it would be appropriate. The Council indicated they didn't like the situation with all the changes to the original contract but conceded they didn't have much choice in the matter since the material had to be removed. BRIAN STUMPF MOVED TO APPROVE THE AMENDED CONTRACT WITH VEIT & COMP ANY FOR ASBESTOS REMOVAL IN THE AMOUNT OF $8,885 AND THE ESTIMATE FOR ADDITIONAL WORK TO REMOVE THE PIPE IN THE AMOUNT OF $3,735. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. #5F Change Order and Final payment on Xcel Ballfield Fencing Project No. 2006-19C: Tom Perrault asked if Oberg Fence Company had reviewed the deduct amount of the change order. John Simola stated the company indicated that the City had to do what the City felt was appropriate. TOM PERRAULT MOVED TO APPROVE CHANGE ORDER NO.1, A DEDUCT IN THE AMOUNT OF $1,150.00 AND TO AUTHORIZE FINAL PAYMENT TO OBERG FENCE FOR CITY PROJECT NO. 2006-19C IN THE AMOUNT OF $13,750.25 FOR A TOTAL PROJECT COST OF $18,717. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. #5H Authorizing establishment ofa Deputy Registrar Manager position: Jeff O'Neill explained that with this agenda item the Council is authorizing staff and the Personnel Committee to create a new job position for the Deputy Registrar Office. At the present time there are two positions; Senior Deputy Registrar Clerk and Deputy Registrar Clerk. Duties relating specifically to managing the office and personnel related issues such as employee reviews and discipline were not included in the job descriptions. Job reviews and personnel 3 Council Minutes 1/8/07 decisions were made by the City Administrator up to this point. It is proposed that the position created will handle those managerial duties. Wayne Mayer asked if there would continue to be a Senior Deputy Registrar Clerk. Jeff O'Neill indicated that position would be eliminated. TOM PERRAULT MOVED TO APPROVE AUTHORIZING STAFF AND PERSONNEL COMMITTEE TO PREP ARE A JOB DESCRIPTION AND ESTABLISH JOB POINTS FOR THE NEW POSITION OF DEPUTY REGISTRAR MANAGER TO BE REVIEWED BY COUNCIL AT AN UPCOMING MEETING. Brian Stumpf asked ifthere was a need to expedite action on this before the next Council meeting when the Council could look at the description and points. Clint Herbst responded that local dealerships would be bringing additional business to DMV and it would be difficult to accommodate this increased workload without this position in place. The City Administrator will get a job description and job points ready so that the position can be advertised as soon as possible. MOTION FAILED FOR LACK OF A SECOND. SUSIE WOJCHOUSKI MOVED TO AUTHORIZE PREPARATION OF A JOB DESCRIPTION, ESTABLISHMENT OF JOB POINTS AND ADVERTISE FOR THE POSITION OF DEPUTY REGISTRAR MANAGER. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION BECAUSE HE FELT THE JOB DESCRIPTION AND JOB POINTS SHOULD COME BACK TO COUNCIL FOR REVIEW PRIOR TO ADVERTISING FOR THE POSITION. 7. Public Hearine: - Consideration of approvine: a tax revenue stabilization a2reement which includes a tax abatement process as part of the revenue stabilization ae:reement with Xcel Enere:v. Mayor Herbst stated there was a workshop meeting held prior to the regular Council meeting where the revenue stabilization agreement with Xcel Energy/NSP and the financial impact it could have for the City were discussed. The Department of Revenue intends to adopt rules that would change the way property value for utility companies are calculated. The reduced property value for Xcel/NSP would result in a drop in the City's tax base. Xcel Energy has been working with utility cities trying to come up with a way to compensate these cities for the loss in tax revenue because of the reduced market value of the utilities. Under this agreement ifXcel Energy/NSP's tax goes above what it was for the base tax year there would be an abatement by the City to Xcel Energy/NSP for the tax collected in excess of the amount of taxes payable in the base tax year. The abatement provision of the revenue stabilization agreement requires a public hearing by the City. Mark Ruff from Ehlers and Associates stated the revenue stabilization agreement technically allows the City to receive additional income if taxes received from Xcel Energy/NSP are lower than the base tax year (2006 being the base tax year). The calculations would be done on an annual basis to determine whether taxes collected was up or down from the base year level. 4 Council Minutes 1/8/07 Mark Ruff stated the abatement is like a rebate to Xcel EnergyINSP for taxes paid in excess of the amount established for the base year. Mark Ruff stated that there are a number of factors for the Council to consider. One factor is the improvements Xcel EnergyINSP makes to their facility. If improvements made by Xcel EnergyINSP to their facility increase their tax in excess of 7%, this provides an opportunity for the City to opt out the revenue stabilization agreement. It was noted that the dry cask storage facility is outside this agreement so improvements made to that site, which has its own parcel identification number, would be taxable. The dilemma for the City is being able to look ten years out and predict what will happen for the City. In discussion of the agreement it was felt that the most likely time the City would be making payments un this agreement would be in the first 3-4 years. Xcel EnergyINSP's value will drop approximately 30% because of the change in the tax rule with this drop being phased in over 3 years. Xcel EnergyINSP would also be allowed full depreciation for their facility. Mark Ruff stated the City has several improvement projects that will increase the tax rates which could result in the City paying Xcel EnergyINSP in some years of the agreement and the City receiving stabilization payments other years. He added there are potential outs from the agreement for the City. Martha Ingram from Kennedy and Graven discussed some negotiation points for the City on the stabilization agreement. These points of negotiation include 1) Base year tax rate - For example the base tax rate for 2007 is much lower than the norm. They felt the base tax year should be taxes payable in 2006. If Xcel EnergyINSP would agree to that it would be less likely that the City would have to do an abatement. Another factor relates to abatement payments and compounding of abatement payments. If the City has to levy taxes to cover an abatement payment, the amount of that payment should not be in the calculations to determine the current year's abatement amount. It was felt that the abatement payments should be separate and distinct and not compounded. Martha Ingram also indicated that there are some terms used in the agreement that need to be clarified and defined more precisely. In Council discussion many of the members felt that the City should try to negotiate the points noted by the financial consultants. Mayor Herbst opened the public hearing. There was no one present who spoke for or against the revenue stabilization agreement. Mayor Herbst then closed the public hearing. Clint Herbst asked if this item could be tabled. Martha Ingram stated the procedure would be to give the consultants direction on the negotiation of the agreement and continue the public hearing until the next meeting. It was noted that ifthere were any changes to the revenue stabilization agreement, it is considered a new agreement and a new hearing would be required. WAYNE MAYER MOVED TO HAVE THE ABATEMENT QUESTION CLARIFIED AND TO NEGOTIATE THE ACTUAL BASE YEAR AS TAXES PAYABLE IN 2006. Martha Ingram said that they had some questions on defined terms in the agreement. One was the term of the agreement and the other was the definition of base year and base year amount. S Council Minutes 1/8/07 Clarifying the definition of these terms would not affect the substance of the agreement but would make the agreement easier to understand. WAYNE MAYER AMENDED HIS AGREEMENT TO INCLUDE THE CLARIFICATION OF SPECIFIC TERMS USED IN THE AGREMENT AND IF NEGOTIATIONS RESULT IN CHANGES TO THE AGREEMENT TO CALL FOR A PUBLIC HEARING ON THE AGREEMENT. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 8. Consideration of authorization to submit IIrant application supportinlI construction of pedestrian underpass at County Road 39 and CSAH 75. City Engineer, Bruce Westby explained that staff if proposing to submit a grant applicant for the construction of pedestrian underpasses to be located at County Road 39 and Gillard Avenue and at CSAH 75 west of River Street. The transportation enhancement (TE) program is part of the federal grant program that was continued in 2005 with the passage of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A legacy for Users (SAFETEA- LU). This program provides funds to local government to provide pedestrian and bicycle facilities. The City is proposing an off roadway path and underpass to bring pedestrian traffic down County Road 39 to Mississippi Drive. The County does not allow at grade crossings on county roads. The location for the underpass on CSAH 75 was dictated in part by the topography of the area. There was discussion of the CSAH 75 location and whether people would travel that far down to use the crossing. The railroad tracks make it difficult to place the underpass at the intersection. Bruce Westby said they could look at other locations but the cost would be higher. Brian Stumpf questioned the need for an underpass at this end of town. He felt an underpass invited vandalism and graffiti. He questioned how specific the grant application has to be as far as design. Bruce Westby stated that on the grant application the cost has to be nailed down adding that the City would be matching a minimum 20% of the cost. Susie Wojchouski asked if this program could be used for a pedestrian crossing along TH 25. Bruce Westby indicated it could. Clint Herbst stated the City is trying to eliminate traffic hangups on TH 25 and pedestrian crossing could slow traffic. He felt that the pedestrian crossings on TH 25 should be limited to those intersections with signals which are at ih Street and CSAH 75. She felt pedestrian traffic on TH 25 was a priority and suggested the City look at installation of an overpass. Clint Herbst asked if the engineer could provide a cost estimate for a pedestrian overpass possibly located at the intersection of 4th Street. Consulting Engineer, Bret Weiss felt an overpass would run between $500,000-$750,000 assuming the City had adequate right-of- way at the proposed location of the overpass. Bruce Westby stated the City must show they are committed to funding their portion of the project. The deadline for submitting the application is January 15 so even if some modifications were made to the grant application there would not be time to bring it back to the Council. WAYNE MAYER MOVED TO APPROVE RESOLUTION NO. 2007-1 AUTHORIZING APPLICATION FOR TRANSPORTATION ENHANCEMENT FUNDING FOR GRADE 6 Council Minutes 1/8/07 SEPARATED CROSSINGS AT THREE LOCATIONS; 1) TH 25; 2) CR 39 AND GILLARD AVENUE AND 3) CSAH 75 WEST OF RIVER STREET. Brian Stumpf asked if staff could come up with cost figures for overpasses and underpasses so the Council would have something for comparison. Bret Weiss indicated that they could provide that cost information but he didn't think they could make the changes to the figures on the grant application and still make the deadline for submitting the application. Tom Perrault stated he has a concern about the project cost as he felt it was too expensive. He asked if there were any plans to redo CR 39 that would provide an opportunity for a pathway improvement to be included as part of a street project. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION. 9. Consideration of appointments for 2007. Brian Stumpfbrought up the designation of the official paper. He would like to have the City see what other options are available. Brian Stumpf voiced concern about the paper not having a representative at meetings that are of major significance to the City such as fiber optics. The Council agreed with this view. Wayne Mayer asked legal counsel Tom Scott ifthe official paper had to be a local paper or if could it be a shopper or a paper in an adjacent community that distributes to the city residents. Tom Scott said he would check the statutes but his recollection is that there are specific requirements for the official paper. Tom Scott suggested they table action on this appointment until the next meeting. BRIAN STUMPF MOVED TO TABLE APPOINTMENT OF AN OFFICIAL NEWSPAPER FOR THE CITY OF MONTICELLO UNTIL THE NEXT MEETING. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Brian Stumpf asked about the appointment as liaison to the Planning Commission. Clint Herbst felt with the Planning Commission working on major issues such a the PUD ordinance amendment and comprehensive plan update he wanted someone who was more familiar with the Planning Commission process and procedures to serve as liaison. Since Brian Stumpf was already serving on the Task Force Committee for the comprehensive plan update Clint Herbst felt Brian Stumpf would be a good choice. Brian Stumpf noted he will not be able to attend the February Planning Commission meeting since he will be on vacation. Wayne Mayer will cover the February Planning Commission meeting and Susie Wojchouski will cover the Comprehensive Plan Task Force Committee meeting on February 1. Jeff O'Neill indicated that the second monthly meeting for the Planning Commission will not be taking place until later in the year as right now the Planning Commission has its hands full with the Comp Plan update and other planning initiatives. Wayne Mayer said he would be willing to attend the second monthly meeting of the Planning Commission when they occur if Brian Stumpf was not able to. Tom Perrault questioned the appointment of Brian Stumpf to the Joint Planning Board for Orderly Annexation Board. He felt Brian Stumpf did not have a friendly relationship with the 7 Council Minutes 1/8/07 township. Brian Stumpf responded that he had worked on the annexation agreement and was involved in the mediation sessions. He felt he was knowledgeable about the annexation agreement and process could work with the township. Clint Herbst stated that generally the mayor and acting mayor have been appointed to this board. Clint Herbst noted that the board meets infrequently so this appointment would not interfere with Brian Stumpfs other committee duties. Wayne Mayer brought up the City Planner appointment noting that Northwest Associated Consults had been given the task to come up with a PUD scoring system last year and it is still not in place. If and when that system is in place, he suggested that the Council have some joint meetings with the Planning Commission concerning the scoring system to make sure both entities are in agreement on the system and how it is applied. Wayne Mayer stated that the MCC Advisory Board is intricately involved with the profitability ofthe community center which is the reason he felt the positions on this board should be advertised. Wayne Mayer emphasized that this was not meant as anything negative about the people whose terms are up or the work they have done as members ofthe MCC Advisory Board. WAYNE MAYER MOVED TO APPOINT SANDY THEROS TO ANOTHER TERM ON THE MCC ADVISORY BOARD AND TO ADVERTISE FOR THE POSITION HELD BY HARVEY KENDALL WHOSE TERM EXPIRED. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Brian Stumpf asked about the vacancy on the Police Commission. He was informed that the position was advertised and two applications were received. One applicant is from outside the city limits and the ordinance establishing the police commission states that commission members must be a resident of the City. Council directed the Police Commission to interview the remaining applicant for the vacancy on the commission. The Council indicated that the interviews for the Parks Commission, Police Commission and Library Board would be conducted by those boards with the recommendation to come before the Council. Clint Herbst indicated he will serve on the Outdoor Storage Committee, if that is still a functioning committee. The Council expressed their appreciation for the work of the Fran Fair of the Parks Commission, Sandra Foster and Jacque Gordon of the Library Board and Harvey Kendall of the MCC Advisory Board. BRIAN STUMPF MOVED TO APPROVE THE FOLLOWING APPOINTMENTS: Official Depositories: Wells Fargo with Chief Financial Officer authorized to designate other depositories for investment purposes only. Riverplace PhysicianClinic Brian Stumpf Susie W ojchouski 8 Health Office: Acting Mayor: Community Education: Council Minutes 1/8/07 Joint Planning Board: Attorney: Planner: Auditor: Consulting Engineer: Housing & Redevelopment Authority: Bill Fair Planning Commission: William Spartz Library Board: Janet Bridgeland and Claudia Tollefson Police Advisory Commission: Dick Slais, David Gerads Design Advisory Team: Pam Campbell, Sheila Stumpf, Patty Pratt Council Liaisons: HRA Planning Commission: Parks Commission: Police Commission: Library Board: MCC Advisory Board: Recycling Committee: Personnel Committee: Wellhead Protection IDC Outdoor Storage: Fiber Optics: Clint Herbst and Brian Stumpf Campbell Knutson Northwest Associated Consultants Larson Allen & Associates WSB & Associates Wayne Mayer Brian Stumpf Tom Perrault Susie Wojchouski Susie Wojchouski Clint Herbst Brian Stumpf Clint Herbst and Wayne Mayer Tom Perrault Clint Herbst and Wayne Mayer Clint Herbst Wayne Mayer TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY 10. Approve payment of bills for Januarv. Wayne Mayer questioned the amount of the NAC bill that was itemized as general noting that 20% of the total bill was identified as general. He felt there needed to be more detailed itemization of the invoice. Wayne Mayer also asked about the bill for the furnace at the Fire Hall and Gary Anderson explained the statement. TOM PERRAULT MOVED TO APPROVE PAYMENT OF THE BILLS. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 11. Adiourn. The meeting was adjourned at 8:50 p.m. D~ J!), /U:JS ~~~ ~ Recording Secretary 9