City Council Minutes 12-09-2002MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday December 9, 2002 - 7 p.m.
Members Present: Roger Belsaas, Roger Carlson, Clint Herbst, Brian Stumpf and Bruce
Thielen.
Members Absent: None
1. Call to Order and Pledge of Allegiance.
Mayor Belsaas called the meeting to order at 7 p.m. and declared a quorum present. The Pledge
of Allegiance was said.
2A. Approve minutes of November 25, 2002 regular Council meeting.
BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF NOVEMBER 25, 2002
REGULAR COUNCIL MEETING AS PRESENTED. CLINT HERBST SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY.
2B. Approve minutes of December 4, 2002 special Council meeting.
BRUCE THIELEN MOVED TO APPROVE THE MINUTES OF THE DECEMBER 4, 2002
SPECIAL COUNCIL MEETING AS PRESENTED. ROGER CARLSON SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY.
3. Consideration of adding items to the agenda.
City Administrator, Rick Wolfsteller, added the following items to the agenda: 1) Authorization to
change insurance coverage for employees life insurance coverages; 2) Accepting terms for
property exchange of library for Marquette Bank building and 3) Setting a special closed session
to discuss settlement proposal for Community Center design fees. The Council determined that
41 and 42 could be added to the consent agenda. Rick Wolfsteller, also noted a correction on
agenda item #5C, that the last transfer listed, a transfer to Project 2001-03C should be
$51,711.98 instead of $41,711.98.
4. Citizens comments/petitions, requests and complaints.
Cathy Shuman expressed her appreciation to Roger Belsaas for his service to the City and for the
courteous and professional manner in which he worked with city staff.
Council Minutes - 12/9/02
5. Consent Agenda
A. Consideration of resolution extending term of the cable franchise held by Charter
Communications. Recommendation: Adopt a resolution agreeing to extend the term of
the cable franchise with Charter Communications for another six months until June 30,
2003. Resolution No. 2002-76.
B. Consideration of request for preliminary and final plat approval for the Monticello
Marketplace Commercial Subdivision and consideration of conditional use permits
allowing a convenience store, car wash and joint parking in a B-3 District. Applicant:
Richard Brendsel, Brendsel Properties. Recommendation: Approve the preliminary and
final plat for Monticello Marketplace Commercial Subdivision and approve conditional use
permits allowing for a convenience store, car wash and joint parking in a B-3 District for
Richard Brendsel of Brendsel Properties. Resolution No. 2002-75.
C. Consideration of Fund Transfers for 2002. Recommendation: Approve the fund
transfers for 2002.
D. Consideration to adopt the City of Monticello Minnesota Investment Fund Revolving Loan
Fund Policy. Recommendation: Adopt the City of Monticello Minnesota Investment
Fund Revolving Loan Fund Policy.
E. Consideration of transfer of on -sale liquor license for Days Inn at 200 Oakwood Drive.
Recommendation: Approve transfer of the on -sale liquor license for Days Inn at 200
Oakwood Drive to Daylight Enterprises contingent upon submittal of insurance and
payment of license fee.
F. Consideration of approving appointment of new members for the Community Center
Advisory Board. Recommendation: Approve the appointment of Tom Neumann and
Richard Quick to the Community Center Advisory Board.
G. Consideration of approving 2003 liquor providers at the banquet hall at the Monticello
Community Center. Recommendation: Approve the following liquor providers for the
MCC for 2003:
1. American Legion Post #206
2. George's Steakhouse
5. Nature's Hideaway
7. R.J.'s Sports Bar & Grill
2. Chin Yuen Restaurant
4. Monticello Country Club
6. Reichel's Catering Service
8. Silver Springs Golf Course
H. Consideration of acceptance of improvements for the Wildwood Ridge Subdivision,
Project No. 98-20P. Recommendation: Accept the improvements for the Wildwood
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J
Ridge Subdivision contingent upon submittal of as -built drawings for the project.
Resolution No. 2002-74.
I. Consideration of ratifying new hire for liquor store. Recommendation: Ratify hiring of
new employee as identified.
Consideration of authorization to change insurance coverage for employees life insurance
coverages. Recommendation: Authorize the city administrator to change insurance
carriers for the life insurance coverage provided the cost and benefits remain the same as
they currently are.
K. Consideration of accepting terms for property exchange of library for Marquette Bank
building. Recommendation: Authorize the property exchange to proceed under the
terms outlined in the letter of intent dated December 3, 2002.
BRUCE THIELEN MOVED TO APPROVE THE CONSENT AGENDA WITH THE
ADDITION OF ITEMS #5J AND #5K. CLINT HERBST SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY.
6. Consideration of items removed from the consent agenda for discussion.
None.
7. Public Hearing on granting a business subsidy - authorization to enter into the Agreement
for Loan of Minnesota Investment Fund between the City of Monticello and Terrance
and Mary Tomann Limited Family Partnership.
Economic Development Director, 011ie Koropchak, provided background information on this item
noting that prior to entering into the loan agreement which is in excess of $100,000 the City is
required to hold a public hearing. 011ie Koropchak also noted comments from Ms. Pressley
Olson regarding the agreement.
Mayor Belsaas opened the public hearing. There was no present who spoke for or against
entering into the loan agreement. Mayor Belsaas then closed the public hearing.
CLINT HERBST MOVED TO AUTHORIZE ENTERING INTO THE AGREEMENT FOR
LOAN OF MINNESOTA INVESTMENT FUND BETWEEN THE CITY OF
MONTICELLO AND TERRANCE AND MARY TOMANN LIMITED FAMILY
PARTNERSHIP. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY.
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Council Minutes - 12/9/02
8. Approve adoption of 2003 budget and tax levy.
City Administrator, Rick Wolfsteller, provided the background information. There was no change
to the budget or tax levy from the information presented at the Truth in Taxation hearing on
December 4, 2002. The final step in the budget process is for the Council to adopt the 2003
budget and tax levy. Roger Belsaas asked if staff had gotten clarification from the county on the
increases shown on the notices of the two property owners who had been at the Truth in Taxation
hearing. Rick Wolfsteller will check into this and contact the property owners directly with the
information he obtains.
BRIAN STUMPF MOVED TO APPROVE THE RESOLUTION ADOPTING THE 2003
BUDGET AND THE RESULTING TAX LEVY OF $6,782,018. BRUCE THIELEN
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Resolution No.
2002-53.
Bruce Thielen noted that even though the Council had adopted the budget for 2003, he felt that
with the uncertainty relating to the state budget deficit, it would be appropriate for the Council after
the first of the year to review the capital outlays proposed in the budget.
9. Consideration of salary schedule adjustments for 2003.
City Administrator, Rick Wolfsteller reviewed the proposed salary adjustments for 2003. The
adjustments proposed are for non-union personnel. The union contract will be expiring in 2003
and will need to be renegotiated. In surveying various communities, most of the cities were
proposing increases ranging from 3% to 4%. 5% was included in the budget to cover the cost of
living increases as well as any step increases. Roger Belsaas stated that because of the
uncertainty with the state budget deficit, it would be financially prudent to set the salary adjustments
for 2003 at 3%.
BRIAN STUMPF MOVED TO ESTABLISH A COST OF LIVING ADJUSTMENT FOR
THE WAGE SCALES APPLYING TO NON-UNION EMPLOYEES AT 3% FOR 2003.
BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
Added item: Settlement Proposal Community Center Design Fees
City Administrator, Rick Wolfsteller, stated that with the completion of the Community Center there were
disputes between the City and AKA, the architect, regarding some of the fees that were outstanding. On
December 6, 2002 the City Administrator and Fred Patch, the City's Building Official were involved in a
mediation session regarding these design fees. AKA had been asking for $140,000 in additional fees and
the City felt that the City had incurred certain expenses and loss of revenue due to design errors. The
result of the mediation effort was a proposal that would have the City pay to AKA $70,000 for design fees
and AKA would reimburse the City $35,000 to offset certain items such as the window leakage. The City
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may still pursue a claim against the HVAC contractor which is separate from this settlement.
BRUCE THIELEN MOVED TO ACCEPT THE PROPOSED SETTLEMENT AGREEMENT AS
DESCRIBED. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY.
10. Approve payment of bills for December
BRUCE THIELEN MOVED TO APPROVE PAYMENT OF THE BILLS FOR DECEMBER.
BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
11. Adjourn.
Brian Stumpf expressed his thanks to Roger Belsaas and Clint Herbst for their service to the
residents of the community and commended them on the good job they did in their years with the
city. Roger Belsaas thanked the Council and city staff for their help and cooperation during his
time as Mayor.
CLINT HERBST MOVED TO ADJOURN AT 7:30 P.M. BRIAN STUMPF SECONDED
THE MOTION. MOTION CARRIED UNANIMOUSLY.
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Recording Secretary
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