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City Council Minutes 08-24-1998MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, August 24,1998 - 7 p.m. Members Present: Bill Fair, Clint Herbst, Brian Stumpf, Roger Carlson, Bruce Thielen Members Absent: None 2. Approval of minutes of the regular meeting he~~,„august 10. 1998. A MOTION WAS MADE BY MAYOR BILL FAIR AND SECONDED BY CLINT HERBST TO AMEND THE MOTION FOR ITEM # 10 TO STATE THAT THE TERM OF OFFICE FOR MAYOR BE CHANGED FROM TWO YEARS TO FOUR YEARS EFFECTIVE JANUARY 1, 2001. Voting in favor: Bill Fair, Clint Herbst, Brian Stumpf, Bruce Thielen. Abstaining: Roger Carlson. Motion carried. A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY BRIAN STUMPF TO APPROVE THE MINUTES OF THE REGULAR MEETING HELD AUGUST 10, 199$, AS AMENDED. Voting in favor: Bill Fair, Clint Herbst, Brian Stumpf, Bruce Thielen. Abstaining: Roger Carlson. Motion carried. 3. Consideration of adding items to the agenda. A. A~~roval of bills for the last half of August. 1998. A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY BRUCE THIELEN TO APPROVE THE BILLS FOR THE LAST HALF OF AUGUST, 1998, AS PRESENTED. Motion carried unanimously. B. Set budget workshop date. It was the consensus of Council to set Monday, August 31, 1998, at 5 p.m., as a special meeting for the Council to discuss the 1999 municipal budget and tax levy. 4. Citizens comments/petitions. requests. and complaints. None. 5. Consent a eg nda. Councilmember Clint Herbst requested that item SA be removed from the consent agenda far discussion. Page 1 Council Minutes - 8/24/98 Councilrnember Brian Stumpf noted that the EAW in item SB should be corrected to state "Mississippi" River rather than "Minnesota" River. He also requested that item SF be removed from the consent agenda for discussion. A. C nsidera ' n f am ndment to the resolution authori in minent domain of the Burlington Northern property by adding vacated Linn and Lo~~st Street right- of-wa~~s. Removed from the consent agenda for discussion. B. Consideration of ac~eptin~ Environmental Assessment Works~-eet and authorize distribution to the ~nyironmental Quality Board. Golden I~ugg~t Develournent. Recommendation: Accept the Environmental Assessment worksheet and authorize distribution. C. n i ration of ado tin a resolutio r in Monticello Heartland Ex 1999 Bud et and Transit Assistan li ti n. Recommendation: Approve the 1999 Management Flan and Transit Assistance application for the Monticello Heartland Express. SEE RESOLUTION 98-32. D. Consideration of an amendment_to 1 ti n su orting annexation of Wildwood Amendment revises the le al i i n f the land area annexed. Recommendation: Adopt the amendment to the joint city/township annexation resolution supporting annexation of the entire Wildwood Ridge development site. E. Consi f a o tion of a resolution c l i f r tic hearin b the Cit n tion of the ro osed mo ' R vel ment Fro'ect No. 1 ro osed tax inc m cin lap for Tax Increme 'n in District No. I-25 therein. Recommendation: Adopt a resolution calling for a public hearing on the modification of Central Monticello Redevelopment Project No. 1 and establishing TIF District No. 1-25. SEE RESOLUTION 98-33. F. n i eration of acce tin bids din sanit sewer ext r ~ c - Monte Club. Removed from the consent agenda for discussion. A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY ROGER CARLSON TO APPROVE ITEMS SB, SC, SD, AND SE OF THE CONSENT AGENDA AS RECOMMENDED. Motion carried unanimously. 6. n i rati n f items removed ro n ent a enda for discus SA. Consideration of ndment to the re olution a r'zin eminent domain of the Burlin ton Northe r addin vacated Linn a L cust Street ri ht- of-ways. The first hearing for condemnation of the Burlington Northern property was held on August 14, 1998; however, due to notice requirements the hearing was Page 2 Council Minutes - 8/24/98 continued until September 18. In addition, the resolution presented to Council for adoption would amend the original resolution supporting condemnation by including Locust Street and Linn Street right-of--ways because it was found that they had been vacated and were under the ownership of Burlington Northern. Councilmember Herbst requested clarification of the cast of the condemnation action. Mayor Fair noted that the cost is currently estimated at $1.50 per square foot. AFTER DISCUSSION, A MOTION WAS MADE BY BRUCE THIE.LEN AND SECONDED .BY ROGER CARLSON TO APPROVE A RESOLUTION AMENDING RESOLUTION 98-22 AUTHORIZING EMINENT DOMAIN BY ADDING LIMN AND LOCUST STREET RIGHT-0F-WAY AREAS. Motion carried unanimously. SEE RESOLUTION 98-31. SF. Con~jcleratio of accenting bids and awarding sanitary sewer extension project - Monte Club. City Administrator Rick Wolfsteller reported that the low bid was received from Molitor Excavating in the amount of $23,571.50; however, he noted that Council may want to delay awarding the project since the annexation issue had not yet been resolved. A letter was received from Monticello Township offering two options for City consideration regarding the Monte Club parcel. The first option was to not annex the parcel but provide city sewer service; however, according to city policy, this would require that the owner pay three times the rate for hookup and usage fees. The second option was to allow annexation, provided the Township received taxes for ten years. This option would be contrary to the city/township agreement recently executed which states that taxes must be paid to the Township for three years. The joint annexation agreement does state, however, that annexation could be allowed when there is an environmental problem if the Pollution Control Agency ar Township asked that it be annexed under this condition. Bruce Gagnelius, representing the Monte Club, Hated that it had been determined, under current federal and state regulations, that a drain system cannot be installed. Subsequently, a letter was received from the PCA stating that they would have ten months to upgrade, replace, or discontinue use of the current system, or the facility may be shut down. Mr. Gagnelius noted that the Township Board indicated that they would consider annexation if they received ten years of taxes ar when the property to the north was annexed. Mayor Fair stated that since the property does not meet the annexation agreement guideline of having bd ft contiguous with city limits, the City cannot annex the property unless the Township waives that condition of the guidelines. Page 3 Council Minutes - 8/24/98 The City Administrator suggested that the Monte Club owner may want to propose an agreement with the Township to pay 7 years of taxes, with the City paying 3 years of taxes per the agreement, in order to meet the 10 years of taxes as requested by the Township. AFTER DISCUSSION, A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY BILL FAIR TO TABLE AWARD OF THE BIDS FOR SANITARY SEWER EXTENSION TO THE MONTE CLUB UNTIL AN AGREEMENT CAN BE NEGOTIATED WITH THE TOWNSHIP, WITH THE CITY PAYING THREE YEARS OF TAXES PER THE CURRENT ANNEXATION AGREEMENT. Motion carried unanimously. 7. Fublic hearin to consider ado tin are rovin modificati 1 f r Central Monticello Red N . 1 establishment IF Di trict No. 1-24 and a rovin the lan relatin theret B n dicts . Economic Development Director Ollie Karapchak reported that the proposed project for St. Benedicts meets the qualifications of a qualified housing district, which exempts the City from the HACA penalty. The project will not be funded by tax exempt bonds but will be financed by St. Benedicts. The HRA agreed to pay-as-you-go TIF assistance for site and utility improvements and land write-down in an amount not-to-exceed $440,000 net present value over the life of the 25-year district. Mayor Fair opened the public hearing. There being na camrnent from the public, the public hearing was closed. A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY GLINT HERBST TO APPROVE A RESOLUTION ADOPTING THE MODIFIED REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT FROJECT NO. 1 AND ESTABLISHING WITHIN CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 TIF DISTRICT NO. 1-24 AND ADOPTING THE RELATED TIF PLAN THEREFOR. Motion carried unanimously. SEE RESOLUTION 98-34. 8. Con ' r i f r viewin six month li uor st fin cial re ort. Liquor Stare Manager Joe Hartman reported that he is pleased with the six-month financial report, which shows a 7% increase in overall sales and an 11.5% increase in gross profit. He noted, however, that he is in need of additional employees, but it has been difficult to hire additional employees because the liquor store wages are low compared to surrounding communities. Page 4 Council Minutes - $/24/9$ Council suggested that the Liquor Store Manager and City Administrator review what wage would be comparable for liquor store employees in order to acquire the help needed. No action by Council was required. 9. Consideration of a royal of ree t betty t i N ti nal Guard re ardin the Community and Training~nter develo~~~~t, Mr. Dan Greensweig of Kennedy & Graven reported that the proposed agreement is similar to the agreement reviewed in June; however, the National Guard is proposing a 90/10 split on payment of maintenance costs for the National Guard space, with the City paying the 90% in exchange for being able to use the joint space at any time except one weekend a month and retaining all revenue from use of the space. Included in the agreement was review of the maintenance cost split in five years. In regard to the Council's proposal of right of first refusal for the land at the National Guard's cost of $1, an answer had not yet been received from the National Guard. Mr. Greensweig noted that the Council could either approve the agreement contingent on the National Guard accepting the City's proposal for right of first refusal, or approve the agreement as is and direct staff to continue negotiations with the Guard. If a counteroffer was made by the National Guard, the agreement would be returned to the City Council for further review. Councilmember Herbst asked when Council would be able to review costs for the project. Mayor Fair noted that the last estimate by the architect was $200,000 over budget, which has resulted in some items being bid as alternates. The City should be receiving bids on the project the end of October. AFTER DISCUSSION, A MOTION WAS MADE BY BRUCE THTELEN AND SECONDED BY ROGER CARLSON TO APPROVE THE THIRD DRAFT OF THE AGREEMENT BETWEEN THE CITY AND NATIONAL GUARD CONTINGENT ON APFROVAL BY THE NATIONAL GUARD OF THE RIGHT OF FIRST REFUSAL LANGUAGE CHANGED TO REFLECT THE LAND AT THE NATIONAL GUARD'S COST OF $1. Voting in favor: Bruce Thielen, Bill Fair, Roger Carlson. Opposed: Clint Herbst, Brian Stumpf. Motion carried. 10. Co r i f acce tin bids and awardin ro' - T nk Sanit Sewer Relocation Froject 98-IOC. City Engineer Bret Weiss reported that several alternatives were reviewed for relocation of the trunk sanitary sewer at the community center site. Following the Council meeting during which an alternative was selected, a decision was made to change the placement of the sanitary sewer by extending it into 6th Street in order to avoid impacting the community center site. The low bid on the project using this alternative was $312,928. He noted, however, that several items resulting from the altered plans were not included Page 5 Council Minutes - 8/24/98 in the feasibility report such as removal of all surface materials on Locust Street, 5 '/~ Street, and 6th Street, as well as additional storm sewer and water main reconstruction. Increased costs associated with the route change and unforeseen items were reviewed, as well as changes that could be made to reduce the cost of the project. The City Engineer suggested that it may be possible to negotiate with the low bidder to change the alignment of the pipe, which would require the City to award the project and make changes through the change order process. In either case, he suggested that the City Attorney review the process to make sure changes are made properly. It was recommended that awarding of the project be tabled at this time pending further negotiations with the low bidder. AFTER DISCUSSION, A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY CLINT HERBST TO TABLE AWARDING THE PROJECT AND AUTHORIZE THE CITY ENGINEER TO EXPLORE OTHER OPTIONS IN ORDER TO DECREASE THE PROJECT COST. Motion carried unanimously. A MOTION WAS MADE BY ROGER CARLSON AND SECONDED BY BRUCE THIELEN TO ADJOURN. Motion carried unanimously. ~r ~. Kar Doty Deputy City Clerk Page 6