City Council Minutes 01-11-1999MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, January 11, 1999 - 7 p.nn.
Members Present: Roger Belsaas, Clint Herbst, Brian Stumpf, Roger Carlson, Bruce Thielen
Members Absent: None
2. A. A royal of minutes ofthe s ecial meetin held December 9 1998.
A MO'T'ION WAS MADE BY BRUCE THILLEN AND SECONDED BY ROGER
CARLSON TO APPROVE THE MINtJTES OF THI; SPECIAL MEETING HELD
DECEMBER 9, 1998, AS WRITTEN. Motion carried unanimously with Brian
Stumpf absent.
B. A royal of minutes of the re ular meetin held December 14 1998.
A MOTION WAS MADE BY ROGER CARLSON AND SECONDED BY CUNT
HERBST TO APPROVE THE MINUTES OF THE REGULAR MEETING HELD
DECEMBER 14, 1998, AS WRIT"TEN. Motion carried unanimously with Brian
Stumpf absent.
3. Consideration of adding items to the agenda.
A. Snowmobile regulations.
Councilmember Roger Carlson requested that staff discuss with the Sheriff's
Department increased enforcement of snowmobile regulations and designated
route.
B. MCP fundraising.
Councilmember Clint Herbst requested that, since the Council is providing
matching funds, the MCP provide a specific list of donations. Ms. Barb Esse,
MCP Chair, stated that she will check with the MCP's attorney regarding release
of that information.
C. Joint meeting with Monticello Orderly Annexation Bard.
Mayor Roger Belsaas reported that a joint meeting including the City Council,
City staff, Monticello Township Board, and Monticello Orderly Annexation
Board was scheduled for Wednesday, January 27, 1.999, at 7:30 p.m., at the
Monticello Township Hall.
Page 1
Council Minutes - 1/11/99
D. Resignation from MOAA_Board.
Mayor Koger Bclsaas reported that Dick Frie, Planning Commission Chair,
submitted a letter of resignation from the MOAA Board in order to allow the new
Council to select another representative.
4. Citizens comments/petitions. requests, and c ~mplaints.
None.
Consent agenda.
A. Consideration of contract renewal with Elk. River Landfill, Inc., for the disposal of
refuse. Keeommendation: Approve athree-year contract extension with Elk
River Landfill, Inc., from April 1, 1999, to April 1, 2002, based upon a first year
cost of $33.64 per ton and a maximum of 4% of the base cost in years two and
three.
B. Consider ti n ~ f Kirin Park Maintenance Worker. Recommendation:
Authorize hiring of Mr. Thomas Pawelk to till the position of Park Maintenance
Worker at a starting union wage of $12.93 per hour.
C. Consideration of a royal of the Riverview S ware commercial subdivision
within the PZM zonin distri t. A licant Richard Williamson. This item was
removed from the consent agenda for discussion.
A MOT10N WAS MADE BY BRUCE THIELEN AND SECONDED 13Y BRIAN STi1MPF TO
APPROVE ITEMS SA AND SB OF THE CONSENT AGENDA AS RECOMMENDED.
Motion carried unanimously.
6. Consideration of items removed from the consent a enda for discussion.
SC. Consideration of a royal of the Riverview S uare commercial subdivision
within the PZM zonin district. A licant Richard Williamson.
Deputy City Administrator Jeff O'Neill reported that the owners of the property
located at the northeast quadrant of County Highways 75 and 39 request approval
of a plat to accommodate future development. The plat consists of four parcels
ranging from 2.37 acres to 5.02 acres. Planning Commission recommended
approval of the preliminary plat; however, subsequent to the Planning
Commission meeting, it was discovered that a small sliver of land located across
County Koad 39/Hart Boulevard, which was created when East County Road 39
was realigned, was not included in the plat. City staff recommended that the
preliminary plat be approved with an additional condition requiring the original
property owner to provide a legal description and quit claim deed to the City for
Page 2
Council Minutes - 1/11/99
the remnant parcel, and a deposit should be made with the City to cover
administrative costs necessary to distribute the parcel to adjoining parcels to the
north. Jeff O'Neill also noted that the final plat would not be brought to Council
for approval until the remnant parcel issue is resolved.
A MOTION WAS MADE BY GLINT T-IERBST AND SECONDED BY ROGER
CARLSON TO APPROVE THE PRELIMINARY PLAT FUR RIVERVIEW SQUARE
WITH 'hHE FOLLOWING CONDITIONS:
INCLUSION OF A PATHWAY EASEMEN'T' WITHIN THE DRAINAGE
EASEMENT IN THL SOUTHEAST CORNER OF 'THE PLAT.
2. INCLUSION OF A SIDEWALK OR PATHWAY ALONG THE COUNTY
HIGHWAY 39 FRONTAGE BETWEEN DART BOULEVARD AND
COUNTY HIGHWAY 75.
CITY ENGINEER APPROVAL OF THE GRADING AND UTILITY PLANS.
~I. THE WIDTH OF "T"HE PRIVATE DRIVE TO BE DETERMINED IN
COOPERATION WITH THE CITY ENGINEER.
5. ACROSS EASEMENT AGREEMENT IS IN PLACE FOR LOT I, BLOCK 2,
TO EIAVE ACCESS RIGHTS 'T'HROUGH TH. F PRIVATE DRIVE.
6. REMNANT' PARCEL CREATED BY SUBDIVISION SHALL BE GRANTED
TO THE CITY FOR FLITURE DISPOSITLON. DEVELOPER SFIALL PAY
ESTIMATED COSTS ASSOCIATED WITT-I PREPARING PAPERWORK
NECESSARY TO DISTRIBUTE PROPERTY TO ADJACENT LAND
OWNEKS AS NECESSARY.
Motion carried unanimously. Matian is based on the finding that the design is in
compliance with the City's subdivision ordinance and zoning regulations.
7. Review of EAW and consideration of comments for the Otter reek sand and ravel
minin o erations ro osed b Otter Creek LLC John Chadwick .
Public Works Director John Simola reported that the sand and gravel mining operations
proposed by John Chadwick involves 35 acres located just south of West County Road 39
and west of I-94. The mining operations are expected to generate an average of 30 truck
loads per day. It was noted that the Oakwood Drive route traveling by D & D Bus and
Gould Brothers Chevrolet into Monticello already contains gravel truck traffic and is a
narrow road with no shoulders. The EAW comment period remains open until
January 15, 1999.
Councilmember Clint Herbst noted that since the mining operation nearly adjoins the
city, and gravel trucks would also use the East County Road 39 route into Monticello, the
City should submit a letter stating its concerns.
Page 3
Council Minutes - 1 / 11 /99
A MO"I'lON WAS MADE BY CUNT HERBST ANll SECONDED BY BRUCE THIELEN '1'O
DIRECT STAI~'F TO PREPARE A LETTER RF,GARDING ISSUES SUCH AS NOISF,,
VISUAL IMPACT, TRAFFIC, SAFETY, AND ENVTRONMEN'I'AL RISKS RELATING TO
THE PROPOSED SAND AND GRAVEL MINING OPERATIONS. Motion carried
unanimously.
Consideration of authorizin execution of a Letter of Acknowled ement for TIF
assistance for redevelopment of the Klucas property.
Developer Brad Larson requested that Council consider execution of a Letter of
Acknowledgement for TIF assistance for the redevelopment of the Klucas property.
Redevelopment of the property would include construction of 32 three-bedroom rental
townhome units in phase I. The Letter of Acknowledgement would be submitted by the
developer as part of a tax credit application to the Minnesota Housing Finance Agency
(MHFA). When a tax credit application includes public participation such as TIF
assistance, the application receives additional points, giving the application a greater
chance for award of competitive dollars. The requested assistance is for reimbursement
of soils correction in an amount not to exceed $10,000 and. 50% of the annual tax
increment over S years to buy down the rents to the tenants. The total market value of the
32 units is estimated at $1,440,000. The TIF District would be a Qualified Housing
District, exempting the City from the HACA penalty or local match. The HRA approved
the use of TIF for redevelopment of the Klucas property subject to City Council
execution of the Letter of Acknowledgement.
Council discussed the use of TIF at a time when development and annexation requests are
high. Questions were raised as to whether TIF money should be used to promote low to
moderate income housing when commercial and industrial development are needed. The
proximity of the R-2 property to industrial land was also noted in that higher-end housing
would not likely be proposed for this area.
AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMT'F AND SECONDED BY
ROGER CARLSON TO EIUTHORIZE EXECUTION OF A LETTER Or
ACKNOWLEDGEMENT FOR TIF ASSIS'T'ANCE FOR REDEVELOPMENT O.F THE
KLUCAS PROPERTY. Voting in favor: Brian Stumpf, Roger Carlson, Bruce Thielen.
Opposed: Clint Herbst, Roger Bcisaas. Motion carried..
9. Consideration of annual a ointments for 1999.
Mayor Belsaas proposed that Councilmember Clint 1-Ierbst be appointed to the MOAA
Board seat vacated by Planning Commission Chair Dick Frie.
Councilmenaber Clint Herbst proposed that City Council take a closer look at
appointments to the HRA due to the impact the Authority can have on the city.
Page 4
Council Minutes - 1/11/99
.~
r-
~.
A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY CLINT HERBST TC)
SET A SPECIAL MEETING FOR JANUARY 25, 1999, 5:30 P.M., "1"O DISCUSS
APPOINTMFNTS TO THE HRA. Motion carried unanimously.
Council also discussed whether Planning Commission appointments should be staggered.
rather than all five terms expiring yearly. Deputy City Administrator aeff O'Neill noted
that he could research the ordinance and statutes regarding Planning Commission
appointments and report back to Council at the January 25 special meeting.
AFTER DISCUSSION, A MOTION WAS MADE BY BR1AN STUMPF AND SECONDED BY
BRUCE THIELEN TO MAKE THE FOLLOWING 1999 APPOINTMENTS:
Official Depositories:
Marquette Bank Monticello
First National Bank of Monticello
Chief Financial Officer -
authorized to designate other
depositories for investment
purposes only.
Newspaper:
Housing and Redevelopment Authority:
(5-year staggered terms)
Planning Commission:
Health Officer:
(1 year)
Acting Mayor:
(1 year)
Joint Commissions:
Community Education
Fire Board
MOAA
Library Board:
(3-year staggered)
Attorney:
Monticello Times
Appointments to the HRA will be considered
at a special City Council meeting on January 25,
1999, at 5:30 p.tn.
Appointments to the Planning Commission will
be considered at a special City Council meeting
on January 25, 1999, at 5:30 p.rn., with regard to
staggered terms.
Dr. Donald Maus
Clint Herbst
Ma or Ro er Belsaas
Rick Wolfsteller and Brian Stumpf
Roger Belsaas and Clint Herbst
1. vacant 12/1999
2. Gordy Jacobson 12/2000
3. Jeanette Lukowski 12/1999
4. Jitn Maus 12/2000
5. Diane Herbst 12/2001
Dennis Dalen of Olson, Usset, & Weingarden
Page 5
Council Minutes - 1/11/99
Planner: Northwest Associated Consultants
(Steve Grittman)
Auditor: Gruys, Borden, Carlson & Assoc.
Recycling Committee: Bruce Thielen
Economic Development Authority: 1. Roger Carlson, Council 12/2001
(5-year staggered terms) 2, Clint Herbst. Council 12/2002
3. Ken Maus 12/2001
4. Darrin Lahr 12/2002
S. Barb Schwientek 12/2003
6. Bill Demeules ]2/1999
7. Ron Hoglund 12/2000
Engineer: WSB & Associates
Police Advisory Commission: 1. Brian Stumpf Council 12/2002
(3-yr staggered terms) 2. Dick Slain 12/2000
3. David Gerads 12/2000
4, Brad. F,~ 12/2001
5. Liz DeMarais 12/1999
Parks Commission: 1. Earl Smith 12/2001
(3-yr staggered terms) 2. Larry Nolan 12/1999
3. Fran Pair 12/2000
4. Rick Traver 12/2001
5. Jennifer Fearing 12/1999
Council liaison ex-officio a ointments to Cit committees:
HRA:
Planning Commission:
Parks Commission:
Police Commission:
Library Board:
MCP:
Motion carried unanimously.
Brian Stumpf
Clint Herbst
Roger Carlson
Brian Stumpf
Bruce Thielen
Bruce Thielen
10. Review recommendations from communit center small rou and rovide direction for
establishing mana~ernent program and .policies and_desi,gn modifications.
Deputy City Administrator Jeff O'Neill reported that a small group, consisting of an
~IR.A member, a City Council member, a DAT member, and City staff; was established to
help guide the development process for the community center and is proposed to continue
meeting to focus on management structure, policies, and construction process/design
Page 6
Council Minutes - 1/11/99
modifications. Mayor Roger Belsaas replaced Bill Fair as the C=ouncil representative and
has been assisting City staff and the facility start-up process by attending and providing
input at the small group level.
Management and Operations
It was proposed that the small group identify the management structure necessary to
properly operate the facility, which would include a listing of programs and services that
the community center would offer and. methods of service delivery such as utilization of
City staff and private contracts. In regard to policy development, City staff collected a
number of policies from other community centers such as Maple Grove and Chaska in
order to establish a starting point for initial operation of the facility.
Construction Process/Design Modifications
The small group would also be responsible for monitoring the construction process,
making sure that the project is on schedule and being constructed properly, in conjunction
with the Chief Building Official. It was noted that the facility would need to be operating
by November 1999 in order to sell memberships for winter use. The savings resLrlting
from the recent grant award of $387,000 was proposed to be placed in the project
contingency fund.
Councilmcmbcr Clint Herbst noted his concern regarding the proposed process for
approving change orders, which would grant the Chief Building Official authority to
approve change orders of $10,000 or less. Jeff O'Neill explained that the process would
allow both the City Administrator and Chief Building Official the authority to approve
those change orders much like the process used for the wastewater treatment plant project
whereby the City Administrator and Public Works Director approved change orders of
$10,000 or less.
Communications
The original community center budget included $50,000 for development of telephone,
sound, AV, and computer systems but does not include the funds that would be derived
from Joncs Intercable, which would be used to wire and place cameras in the council
chambers area. The small group would obtain recommendations on communication
system designs from a communications subcommittee made up of Bill Bruce of the cable
system, TDS Telecom, Chief Building Offcial Fred Patch, MIS Assistant Cathy Shuman,
and the architect.
Shnrt-term Objective for Small Grnup and Ciry Council
Deputy City Administrator Jeff O'Neill. noted that Council direction was needed with
regard to continuing the small group as proposed, with the following objectives:
Page 7
Council Minutes - 1/11/99
1. Begin the process oFhiring a Community Center Director, with the job
description to be approved at the next Council meeting. The goal is to
have a director hired no later than April.
2. Develop a mission statement to help guide policy development and
decisions of the future Community Center Director.
3. Research design modifications to include the library in the facility rather
than the senior center, and possibly move the seniors to the current library
facility in the future.
Councilmember Clint Herbst stated that Council should first decide whether the project
should continue rather than discussing the hiring of a director. It was his view that the
expenditure information was vague. Councilmember Brian Stumpf added that he had
requested specific expenditures to date but had not yet received them. He questioned
how the project could stay within budget if the estimated expenditures have risen from
roughly $2.5 million as reported at the last Council meeting up to approximately $4.5
million now. It was also noted that the Becker Community Center lost $350,000 last
year, and there was concern about how much the Monticello Community Center would
lose every year with I3ecker in direct competition.
Mr. Mark Wentzell of Ankeny Kell Architects explained that it would be impossible to
calculate exact expenditures without stopping the project because the contractor and 20+
subcontractors are working and the figures change daily. Because the production
schedule has been set, the City would pay a penalty for shutting down the project,
negotiate payment for factory orders, and would also pay the contractor for the delay if
the project was restarted. Lawsuit settlements would also have to be calculated into the
expenditure figures if the project was stopped. He noted that while some community
centers do lose money, some also make a profit such as Maplewood and Chaska.
Mr. John Sandberg, a resident of Monticello, stated that he was a spokesman for a large
majority of the residents in Monticello, most of whom do not want the project to
continue. City resident Jeff Michaelis and Mr. Sandberg stated that the new building
would not be large enough for city hall and would require a second story, would create
too much congestion near the fire hall, and would not provide sufficient parking. It was
also their view that the aquatic center was a frivolous expense, the National Guard could
build their own independent facility, and the senior center should not be placed in a
commercial area with high traffic. Information was presented to Council showing their
total estimated cost of the project to he between $24 million and $34 million. If the
project was stopped now, they felt the $4 million in expenditures to date could easily be
paid for by selling the site for $500,000, using $500,000 as set aside for expansion of the
current city hall, using the $387,000 grant recently obtained by the City, $400,000 from
the liquor store fund over two years, paying for the utility rerouting with general funds,
and selling the former Ferrellgas site for $250,000 to $300,000. It was also suggested
Page 8
Council Minutes - 1/11/99
that the City consider purchasing the St. 1-lcnry's Church property since it is not currently
on the tax rolls, could seat over 500 people for meetings, provided ample parking space,
and could easily accommodate the senior center.
Mr. Michaelis added that many people signed a petition requesting an audit of the
community center project but no results have been received from the State Auditor's
office. It was his view that the project should not move forward until the State has
completed the audit. He also stated that there was an issue with a portion of the site not
yet awned by the City. The Deputy City Administrator and City Attorney responded that
the City has received license to enter the property and a commitment has been received
that the title insurance company will insure the value of the City's investment in the event
there are unsatisfied mortgages against the property.
Mark Wentzell of AKA responded to the estimated project costs presented by
Mr. Sandberg and Mr. Michaelis by noting that cost overruns could possibly be 2% to as
high as 5%, but no project he has ever worked with has been remotely close to 20% in
overruns as they projected. To date, there have been no change orders and $100,000 in
savings on the project. He also pointed out that the center could show a loss if
expenditures for nonprofit items such as the library are factored in; however, it has been
proven in other communities that aquatics can generate income through memberships.
Monticello resident Rhonda "1"hielen stated that she was not originally in favor of the
community center but is now after seeing the amount of support far the project. It was
her view that a community center would keep money in the community.
Ms. Paulette Conroy asked the Council to keep a positive attitude and maintain integrity
in their decision making. As a business owner, she stated she is willing to pay the
additional taxes to support the community center.
Mr. Allan Wojchouski stated that he did not want to pay additional taxes for nothing in
return and requested that Council consider the issue of stopping the community center
very carefully. He also noted that inaccurate information had been presented regarding
the amount of residents opposed to the center.
Council discussed the estimated $4 million that would be lost if the project was stopped
at this point and whether the project could be delayed far the purpose of conducting a
referendum. Mark Wentzell of AKA reported that there are complications with stopping
and starting the project in that scheduled production would be stopped but the City would
be required to pay for the delay as well as production time if restarted.
A MOTION WAS MADE BY BRAN STUMPF AND SECONDED BY CLINT HERBST TO
ISSUE A STOP WORK ORDER ON THE COMMUNITY CENTER PROJECT AND PLACE,
I"I' AS A REFERENDUM QUESTION AT A SPECIAL ELECTION.
Page 9
Council Minutes - 1/11/99
Architect Mark Wentzell requested direction on how to proceed and noted that the City
Attorney should review the contract to find out how long the contract remains valid if the
project is delayed. City Attorney Dennis Dalen also recommended that the Council
receive input from bond counsel regarding the impact on the City's overall. bond rating if
the project is stopped.
Council discussed lease revenue bonds vs. general obligation bonds for financing the
community center, and it was suggested by staff that perhaps the aquatic center could be
put on hold for a referendum while continuing construction of the rest of the facility.
MAYOR BELSAAS CALLED FOR A VOTE ON THE MOTION TO STOP WORK ON THE
PROJECT AND HOLD A REFERENDUM. Voting in favor: Clint Herbst, Brian Stumpf.
Opposed: Roger Belsaas, Bruce Thielen, Roger Carlson. Motion failed.
Discussion continued regarding the costs of materials and rebidding the project if stopped
and then restarted. Former Mayor Bill Fair suggested that the Council make their
decision based on the worst case scenerio and consider what will be lost in jeopardizing
the City's financial reputation and bond rating.
MAYOR BELSAAS MADE A MOTION TO ISSUE A STOP WORK ORDER UN THE
AQUATICS PORTION OF '1"HE COMMUNITY CENTER AND RESEARCH THE DETAILS
AND COST OF HOLDING A REFERENDUM CONTINGENT ON THE REST OF THE
PROJECT CONTINUING. Motion died for lack of a second.
Councilmembers Bruce Thielen and Roger Carlson noted that it would be fiscally
irresponsible to stop the project at this time and that the other alternative is to simply
move on.
A MOTION WAS MADE BY ROGER BELSAAS AND SECONDED BY BRIAN STUMPF TO
RECONSIDER THE PREVIOUS MOTION TO ISSUE A STOP WORK ORDER ON THE
COMMUNITY CENTER PROJF,CT AND PLACE IT AS A REFERENDUM QUESTION AT A
SPECIAL ELECTION. Voting in favor: Roger Belsaas, Brian Stumpf, Clint Herbst.
Opposed: Bruce Thielen, Roger Carlson. Motion carried.
Discussion focused on defining the referendum question, and it was suggested that the
question include the cost to stop the project and the cost to stop and restart the project
after researching the expenditures to date. Mayor Belsaas directed City staff to research
the requirements for general obligation bonds and lease revenue bonds. Architect Mark
Wentzell responded that he would need to review the contract and prepare a letter to the
contractor. He suggested. that the City Attorney assist with preparation of the letter and
that it would be better to "hold" rather than "stop" the project for 30 days.
Ms. Barb Esse requested that the motion being reconsidered be read so that the public in
attendance could understand what was being discussed. Deputy City Clerk Karen Doty
read the original motion to issue a stop work order on the project and place it as a
Page 10
Council Minutes - 1/11/99
referendum question at a special election, noting that during discussions it was clarified
that the referendum question should state the cost to stop the project and the cost to stop
and restart the project. Councilmember Herbst noted that the discussion also clarified
that the language should be amended to "hold" the project for a referendum rather than
"stop" the project.
BRIAN S'I"UMPF 'T'HEN AMENDED THE MOTIUN FOR RECONSI DERA"PION '1'O PLACE
TI-IE COMMUNITY CENTER PROJECT ON MOLD PENDING ADDITIONAL RESEARCH
OF PROJECT COSTS TO DATE, AND PLACE'I'HE QUESTION OF CONTINUING THE
COMMUNI"I'Y CENTER PROJECT AS A REFERENDUM QUESTION AT A SPECIAL
ELECTION. THE REFERENDUM QUESTION IS TO 1NCLUDF. THE COST OI~ 'T'HE
PROJECT IF IT MOVES AHEAD AND TI-IE COST OF THE PROJF,CT IF STOPPED.
No fi~rther action was taken by the Council at this time.
11. Consideration of Chan e Order No. 18 for Cit Pro'ect 93-14C ex ansion of the
Monticello Wastewater Treatment Facility.
Public Works Director ,lohn Simola reported that Change Order No. 18 for the
wastewater treatment plant facility involved mostly piping changes in various areas of the
plant totaling $20,240. The total amount of expenditures for all change orders amounted
to $447,814.50, which is 3.97% of the original contract. IIe noted that Council would be
requested to reduce the retainage amount at their next meeting.
A MOTION WAS MADE BY ROGER CARLSON AND SECONDED BY CUNT HERBST TO
APPROVE CHANGE ORDER NO. 18 WITH THE CONTRACT WITH ADOLFSON &
PETERSON FOR PROJECT 93-14C IN THE AMOUNT OF $20,240. Motion carried
unanimously.
12. Consideration f bills for the last half of December and first half` of Januar .
A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY ROGER CARLSON
TO APPROVE TIIE BILLS FOR THE LAST HALF OF DECEMBER AND FIRST HALF OF
JANUARY AS PRESENTED. Motion carried unanimously.
A MOTION WAS MADE BY BRUCE THiELEN AND SECONDED BY BRIAN STUMPF TO
ADJOURN TI-IE MEETING. Motion carried unanimously.
Karen oty
Deputy City Clerk
Page 11