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City Council Agenda Packet 10-27-2008AGENDA REGULAR MEETING - MONTICELLO CITY COUNCIL Monday October 27, 2008 - 7 p.m. Mayor: Clint Herbst Council Members: Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski Call to Order and Pledge of Allegiance 2A. Approve minutes of October 13 2008 Special Meeting. 2B. Approve minutes of October 13, 2008 Special Meeting -River Street. 2C. Approve minutes of October 13, 2008 Regular Meeting. 3. Consideration of adding items to the agenda. 4. Citizen comments, petitions, requests and concerns. 5. Consent Agenda: A. Consideration of ratifying hires and departures MCC and Building. B. Consideration of accepting preliminary assessment rolls for Kevin Longley Drive and Jerry Liefert Drive Street Improvements, City Project No. 2008-1OC and calling for a public hearing. C. Consideration of approving renewal of charitable gambling license for Monticello Youth Hockey. D. Consideration of acceptance of third quarter financial report for the City. E. Consideration of calling for a public hearing to vacate a portion of Territorial Road. F. Consideration of an Identity Theft Prevention Program. G. Consideration to review and respond to a request to waive ordinance requirements regulating public nuisances. H. Consideration of alternatives leading to resolution of Lunsten/Posusta land issues. 6. Consideration of items removed from the consent agenda for discussion. 7. Public Hearing and consideration of adoption of assessments for delinquent utilities. Agenda Monticello City Council October 27, 2008 Page 2 Public Hearing and consideration of adoption of assessments for delinquent miscellaneous accounts receivable. 9. Consideration of approving RFP for architectural services for DMV building and garage remodel. 10. Consideration of approval of agreement between YMCA, City and County relating to acquisition of Phase I of YMCA property for Bertram Chain of Lakes Project. 11. Consideration of establishing meeting times for: 1) Transportation Plan Workshop; 2) Interview applicants for Public Works Director position; 3) Evaluation of City Administrator 12. Consideration of City participation in management of the swan population within the City. 13. Department Report - Administration/Building Department. (Verbal/Power Point) 14. Consideration of approving payment of bills for October, 2008. 15. 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G H m 0 d d ~, H H Ul Ul (n ~ Ul H N (n U1 N N Cd N N 41 W W J b7 F'- 01 ~ C~" 01 O N~PI-'HO H HH C. H rKJ ',L7 H O O U] O IA WOO HOl 01H ODNUlHO U] N Ul Ul L17 Ul UIHJN~PlONIn~PWHH C+] .a ~ 3 ~ Hmuim~oHminm~o~a ~ ro J J ~y J UIOQ\IAN OiAWJWOW trJ '2'i W "C ~ 01 ~ 01 ~O O UlNO~707 U1 UlNON I-j N (n W ~ N (D G1 G1 rr N O iP 01 O O rocnn I H CH o IC m . p J h7 u1 3 ~°z ny ',b H ron ro t~ ~r or ~o • • C~ MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Monday October 13, 2008 - 4:45 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski. Members Absent: None Others: Pamela VanderWiel, Tom Scott and Milda Hedbloom 1. Call to Order. Mayor Herbst called the meeting to order at 4:45 p.m. and declared a quorum present. 2. Litigation relating to fiber oatics proiect. BRIAN STUMPF MOVED TO ENTER INTO A CLOSED SESSION OF THE COUNCIL TO DISCUSS LITIGATION RELATING TO THE FIBER OPTICS PROJECT. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Adiourn. The Council came out of the closed session at 5:25 p.m. TOM PERRAULT MOVED TO ADJOURN THE SPECIAL MEETING. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary Council Minutes: October 13, 2008 MINUTES SPECIAL MEETING - MONTICELLO C ITY COUNCIL Monday October 13, 2008 - 5:30 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Woj chouski. Members Absent: None 1. Call to Order. The workshop meeting was called to order at 5:40 p.m. 2. Discussion of design modifications for the intersection of TH 25 and River Street. City Engineer Bruce Westby briefly explained the modifications made to the intersection under the existing pilot program. At a meeting on September 22, 2008 business owners and residents commented on the pilot program. Staff later met with a representative of the business owners to try to come up with some way to modify the intersection design to accommodate needs of the business owners for convenient accessibility to their business. Staff looked at modifications that included alert-in movement from northbound TH 25 to West River Street, aright-in movement from TH 25 to East River Street and West River Street and aright-out from West River Street to TH 25. The proposed modification was taken to MnDOT on October 9, 2008. MnDOT had a number of concerns and cautioned that any modification done now would have to carry over through the winter. MnDOT did not want barrels at the intersection and had other concerns about snow removal. MnDOT suggested that the right-in on northbound TH 25 to East River Street not be done because it would promote people using it as a cut through. Bruce Westby submitted a revised drawing showing what MnDOT would approve. The issue raised previously by business owners about speeding in the alley could be addressed by the installation of speed bumps in the alley. Tom Perrault asked who owned the alley and Jeff O'Neill responded that it was a private alley. Clint Herbst asked about some type of permanent curbing being installed. Bruce Westby indicated that was not proposed because of the cost and also because it is questionable whether curbing could be completed before winter. Clint Herbst said the City would prefer to keep the left turn onto River Street. He said was reluctant to wait the additional time to see if MnDOT would allow what the City wanted at this intersection. Brian Stumpf asked what benefit was derived from leaving the River Street access open that could not be obtained by using Broadway. He expressed his concern about safety hazards if things are opened up on the east side. George Larson, 606 East River Street spoke stating he didn't want to see any changes to the intersection. The changes the City made has significantly reduced traffic in their Council Minutes: October 13, 2008 neighborhood. Before there was considerable truck traffic and deliveries because of the continuous construction on the hospital property. He would like to see the east side with both lanes closed. He noted when TH 25 was widened to four lane it was the intent that the intersection would be blocked off all the way. Clint Herbst reiterated that this is a pilot project. If the City finds the traffic counts increase with the proposed modification, the City could look at different alternatives. The City should do more testing of the various options until it can be determined exactly what is the best option for this intersection. Clint Herbst said the scenario the City wants to go with is what they have now but without the barricades. Brian Stumpf said if the City is looking at modifications they should look at doing it in the summer not now. MnDOT said they would not allow the City to put barrels out there. Brian Stumpf felt the pilot project should be done at the appropriate time which would be in the summer and not with winter approaching. Clint Herbst said the City has to either do something more permanent or else go back to utilizing the signal light. Bruce Westby asked if a right-in was deemed necessary and desirable. MnDOT would not be disagreeable to leaving the existing access in. The access should be strictly a business access for the local businesses such as the Workforce Center, etc. Wayne Mayer felt both of the lanes should be kept closed. Wayne Mayer said he wanted to close the right-in and right-out going south back onto TH 25. Wayne Mayer brought up the double blockade on River Street. On the north side of the hair salon/antique store he would like to see a right-out onto TH 25. In order to get the right-out/ the left turn lane would be gone. Wayne Mayer asked Steve Johnson, a local business owner, why he felt the left turn lane from TH 25 onto River Street was necessary. Steven Johnson said the issue was access and ease for customers to get to the businesses in the area. He said the City's goal was to reduce traffic in the residential area of East and West River Street. The way to reduce traffic on River Street is to close the street off at TH 25. Steve Johnson suggested instead of closing it off at River Street the City should close it off 2 or 3 blocks east and west of the intersection. Steve Johnson felt this option was not discussed fully by the Council. Clint Herbst said one option was to leave the signal on. He felt by leaving the intersection open but restricting access it would better serve the area. Steve Johnson believes moving it down 2-3 blocks would be best for everyone. Brian Stumpf said he could see that working on West River Street but he is opposed to it on East River Street. Steve Johnson said that traffic in a business area is desirable. He said he is okay with the light at the intersection. On the east side of River Street he felt the City should slide the barricades back to Cedar Street and on the west side the barricades should be moved back to Locust Street. George Larson expressed concern about the amount of traffic in the summer and the speed at which the traffic is moving. He stated it is a hazardous situation. Steve Johnson felt it was not expedient to put in barriers at this time. Clint Herbst said the day the intersection was closed showed the impact on traffic. He did not feel the light should be on again. Clint Herbst added this is just the first piece of the puzzle. He felt the City's proposal to MnDOT was a good one. 2 Council Minutes: October 13, 2008 Steve Johnson disagreed with Mayor Herbst. He felt his proposal would still keep cars out of the residential area. He thinks it would take care of the problem and that all parties would benefit from having the street closed further down from the intersection. Clint Herbst suggested the first half block on the east side should be one way. Wayne Mayer said if they look at making it one way, the City would have to do something to address the concerns with the truck and delivery activity and suggested some signing would have to be done. The traffic count information that was submitted to the Council was reviewed. Chuck Rickart explained the counts were taken in the fall of 2007 for a two day period. The counts were averages. Chuck Rickart stated that MnDOT's criteria for signals is the amount of traffic approaching the intersection. With 1000 cars per day being taken off the road it will be more difficult to justify the need for the signal. There is also a site distance issue that would be of concern to MnDOT. Tom Perrault agreed with the suggestion from Steve Johnson about blocking the street further back from the intersection. Wayne Mayer asked about controlling traffic at this intersection. Tom Perrault stated he would have the signals back on. Lloyd Hilgart, 2590 Meadow Oak Lane asked how much the traffic was reduced on West River Street. The staff responded that it was reduced by 1,000 vehicles per day. Bruce Westby said he didn't recall receiving any concerns from residents about having to go onto Broadway and then going back to River Street. Clint Herbst said his concern is not so much with the traffic coming across the River but how that traffic impacts local traffic. Lloyd Hilgart asked if there is a lot of commercial traffic on West River Street. Chuck Rickart said they didn't specifically count trucks but rather counted all vehicles. Lloyd Hilgart asked if it was even necessary to have a blockade on West River Street. Bruce Westby said if access was open on River Street there would be signage in place to reduce the cut through traffic. Wayne Mayer said habits die hard and signage would not necessarily eliminate the problem. Wayne Mayer felt there had to be some way to let people know they are entering onto a one way. Lloyd Hilgart felt the closing should be moved down one block and "No thru traffic" signs placed on Cedar Street. Wayne Mayer disagreed with the "No thru traffic" signs. Clint Herbst concurred saying it would be easier to enforce the "No Truck Traffic" than the "No thru Traffic". Joshua Dickinson, 600 West 4th Street, stated he would like to have a left turn lane on West River Street from northbound TH 25 and a left turn from River Street heading north on TH 25. Using Broadway does not give the businesses sufficient access. He also commented on the traffic on 4th Street and wondered if the City would consider closing streets to reduce the traffic for any other residential street. Clint Herbst said he could not agree to a left turn going north on TH 25. Joshua Dickinson stated it is difficult making a left turn onto Broadway from Walnut. He said customers want to get in to businesses conveniently and leave conveniently but now they can't do either. Clint Herbst stated he was disappointed with what MnDOT agreed to and would like to tweak it. He emphasized strongly that he did not feel the light should be on again. Susie 3 Council Minutes: October 13, 2008 Wojchouski and Wayne Mayer concurred the light should be back on as a last resort if everything else fails. They felt that the left turn lane north on TH 25 going to West River Street should be kept open. Brian Stumpf agreed with that but felt the blockade should be moved down a block. Clint Herbst asked about taking some counts first and seeing what impact there is before making a final decision. Bruce Westby reviewed the option: 1) Extend the barricade through the intersection which would open it up to right-in/right-out; 2) Extend one way up to the parking lot; 3) Re-time the signal lights on TH 25. Brian Stumpf didn't feel that there should be any access onto East River Street. Chuck Rickart suggested extending the barrier further down to keep people from cheating into the lane to make a left turn. Clint Herbst pointed out that this is a pilot program which would go for 60 days and if it didn't improve the situation, the City could go back to what they are doing now. Bruce Westby explained that what the City is doing now would not be approved by MnDOT. Wayne Mayer said his only concern is the left turn off northbound TH 25 onto West River Street because the intersection is not a controlled intersection. Brian Stumpf concurred with Wayne Mayer. SUSIE WOJCHOUSKI MOVED TO APPROVE A 60 DAY PILOT PROGRAM MODIFYING THE INTERSECTION OF TH 25/RIVER STREET THAT WOULD BARRICADE EAST AND WEST RIVER STREET BUT ALLOW FOR A LEFT HAND TURN GOING NORTHBOUND ON TH 25; ALLOWING NO ACCESS ONTO EAST RIVER STREET FROM TH 25; A RIGHT-IN/RIGHT-OUT ON WEST RIVER STREET TO TH 25; RE-TIME THE SIGNALS AND TO TAKE SOME CURRENT TRAFFIC COUNTS. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING 1N OPPOSITION. 3. Adjourn. WAYNE MAYER MOVED TO ADJOURN AT 6:58 P.M. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary 4 Council Minutes: October 13, 2008 MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday October 13, 2008 - 7 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski. Members Absent: None 1. Call to Order and Pledge of Allegiance Mayor Herbst called the meeting to order at 7:05 p.m. and declared a quorum present. A Boy Scout troop attending the meeting led those present in saying the Pledge of Allegiance. 2A. Approve minutes of September 22, 2008 Special Meeting -Transportation Plan. SUSIE WOJCHOUSKI MOVED TO APPROVE THE MINUTES OF THE SEPTEMBER 22, 2008 SPECIAL MEETING ON THE TRANSPORTATION PLAN. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2B. Approve minutes of September 22, 2008 Regular Meeting. WAYNE MAYER MOVED TO APPROVE THE MINUTES OF THE SEPTEMBER 22, 2008 REGULAR MEETING. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2C. Approve minutes of September 30, 2008 Special Meeting. Brian Stumpf noted that the vote under item #2 was not unanimous as he had voted in opposition. BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF THE SEPTEMBER 30, 2008 SPECIAL MEETING WITH THE CORRECTION NOTED. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Consideration of adding items to the agenda. The following items were added to the agenda: 1) Update on upcoming visit by Michele Bachmann; 2) Building permit fees and standards and 3) Americanism. 4. Citizen comments, petitions, requests and concerns. None. 5. Consent A eg nda: A. Consideration of ratifying hires and departures MCC and DMV. Recommendation: Ratify the hires and departures as identified. Council Minutes: October 13, 2008 B. REMOVED FROM AGENDA. C. Consideration of adopting a resolution for a special assessment agreement with Master 5th Avenue Inc. for 617 Locust Street. Recommendation: Approve resolution of special assessment for 617 Locust Street (155-010-007020). Resolution # 2008-80 D. REMOVED FROM AGENDA. E. Consideration of approval administrative lot split for Chadwick property. Recommendation: Approve the request for a simple subdivision and administrative lot combination for Outlots C & D of Otter Creek Crossing as illustrated in Exhibits C and D of the planning report of October 13, 2008 based on a finding that the proposed arrangement is consistent with the intent of the B-4 Regional Business District and the Comprehensive Plan subject to the following conditions. 1) The applicant shall provide asix-foot drainage and utility easement along the interior property lines of both outlots upon future platting of developable lots; 2) At the time of development of either Outlot C or D a cross access agreement may be required to address shared access between the proposed Outlot C and Outlot D. This is subject to the review and recommendation of the City Engineer at the time of development. F. Consideration of approving resolution of bond redemption for the 2003A General Obligation Improvement Bonds, 2000B General Obligation Improvement Bonds and 1999 General Obligation Improvement Bonds. Recommendation: Approve the resolution calling for the redemption of the 1999, 2000B and 2003A general obligation improvement bonds. G. Consideration of authorizing preparation of preliminary assessment rolls for Kevin Longley Drive and Jerry Liefert Drive Street Improvements, City Project No. 2008- 1 OC. Recommendation: Adopt resolution declaring costs to be assessed and authorizing preparation of assessment roll for Project No. 2008-1OC with staff to come back to the Council on October 27, 2008 to set a public hearing date for the assessment hearing. H. Consideration of adopting updated cable commission agreement and consideration of withdrawing from Cable Commission. Recommendation: 1) Decision #1-Move to adopt the updated Sherburne-Wright Cable Commission joint powers agreement. 2) Decision #2 -Move to withdraw from the Sherburne-Wright Cable Commission effective January 1, 2009 with written notice to be given by October 15, 2008. I. Consideration of ratification of Charlotte Gabler as a member of the Industrial Development Committee. Recommendation: Approve the appointment of Charlotte Gabler for a three year term starting January 1, 2009 and terminating December 31, 2012. J. Consideration of establishing Park Maintenance Laborer position and authorize filling this position with a qualified internal candidate. Recommendation: Move to approve 2 Council Minutes: October 13, 2008 establishment of Park Maintenance Laborer position and authorize filling position with a qualified candidate. Tom Perrault asked that item #SG be pulled from the consent agenda. BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH ITEM #SG REMOVED. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 6. Consideration of items removed from the consent agenda for discussion. #SG Authorizing preparation of assessment rolls for Kevin Longley Drive and Jerry Liefert Drive, City Project No. 2008-10C. Tom Perrault commented that at an earlier meeting comments were made about assessing everyone equally. In the preparation of the assessment roll he would like to see some options presented where the townhomes are assessed at a different rate than the single family homes. He noted the townhomes have smaller lots with less frontage and their unit density is greater than the single family homes. Having the townhomes included in the project reduced the assessment for the single family homes. Brian Stumpf asked if Tom Perrault had any specific options that he would like to see presented. Wayne Mayer questioned if the townhome owners enjoyed the benefit less than the single family owners. Clint Herbst stated that if the City had not picked up a good portion of the cost for this project the assessment would have been doubled. Brian Stumpf said he has a problem with treating properties differently. Who is going to pick up the difference? It is either going to be picked up by the City or by other residents. Clint Herbst felt the proposed assessment was a good value for the residents and he felt the properties should all be assessed in the same way. Clint Herbst said previous assessments were not based on footage and he didn't know why the City would want to start now. Susie Wojchouski felt that the townhomes most likely had two cars and would use the road as much as the single family homes. She agreed that the cost should be split equally.. Wayne Mayer felt if the property had a driveway access on the lot they should get assessed. Susie Wojchouski felt the present method of assessing the property owners was fair. SUSIE WOJCHOUSKI MOVED TO AUTHORIZE THE PREPARATION OF PRELIMINARY ASSESSMENT ROLLS FOR CITY PROJECT N0.2008-10, JERRY LIEFERT DRIVE AND KEVIN LONGLEY DRIVE WITH THE STAFF TO COME TO THE COUNCIL ON OCTOBER 27, 2008 WITH THE COSTS TO BE ASSESSED AND SETTING THE DATE FOR THE ASSESSMENT PUBLIC HEARING. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION. 7. Consideration of arrroval of community garden concert. MCC Director, Kitty Baltos explained the research staff had done on a request to have a community garden. Staff talked to other cities that had community gardens and these cities were helpful in providing information, forms, policies for the city to consider. With Parks Superintendent Tom Pawelk a number of potential sites within the City were reviewed for a community garden. They considered factors such as availability of water, soil conditions and accessibility. The site that was selected is an open lot at 407 6a' Street West. The site once it is prepared will contain about thirty 15' x 20' garden plots. 3 Council Minutes: October 13, 2008 Wayne Mayer asked about charging different rates for residents and non-residents. He didn't have a problem opening it up to non-residents if there were no city residents interested in taking the lots. Wayne Mayer said he would like the May lst date kept open for City residents to select plots. Kitty Baltos indicated selection of the lots would be on a first come first serve basis. They don't want to lock any residents out. Kitty Baltos asked if the Council wanted a flat rate or a differential rate for non-residents. Wayne Mayer felt determining the fee could be left up to the MCC. Kitty Baltos indicated that some land in the township had been offered for use as a community garden. Although the site was reviewed it was not considered because it lacked water, parking and the soil would require the addition of black dirt. Susie Wojchouski asked how this was going to be advertised. Kitty Baltos stated they are looking at a number of things. The MCC has an e-mail base that they could utilize. The information could also be placed in the City's newsletter, the Chamber of Commerce newsletter as well as other sources. Tom Perrault asked if it would be possible for an individual to get the same plot each year. Kitty Baltos stated they would like to avoid that. Reserving the plots on a first come first serve basis she felt eliminate some of these issues. Tom Perrault asked if mulch would be provided to the gardeners for their use. Kitty Baltos indicated the City would mulch the pathway but it would not available for use on the garden plots. Tom Perrault also asked about the use of pesticides. Kitty Baltos said they don't want any chemicals used in the community garden. Any spray proposed to be used would have to reviewed and approved by the Park Superintendent. Susie Wojchouski asked about fencing and vandalism. Kitty Baltos indicated that the Park Department may have some fencing materials on hand that could be used for the community garden. She personally felt that damage to the garden would come from animals rather than humans. WAYNE MAYER MOVED TO AUTHORIZE THE USE OF THE LAND LOCATED AT 407 WEST SIXTH STREET FOR A COMMUNITY GARDEN FOLLOWING THE DRAFT OF THE PROPOSED GUIDELINES, RENTAL AGREEMENT AND CONDUCT CODE INCLUDING PREFERENTIAL TREATMENT FOR CITY RESIDENTS AS IDENTIFIED. IF THERE ARE PLOTS AVAILABLE AS OF MAY 15TH THEY WILL BE OFFERED TO NON-CITY RESIDENTS. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Added Items; Michelle Bachmann irsit: Jeff O'Neill reported that the candidate will be at the MCC on Tuesday, October 14th at 10:00 a.m. for a question and answer session but no formal program. Clint Herbst questioned whether a notice of a possible quorum of the Council being present had to be given. Legal counsel Tom Scott indicated the City could not meet the three day posting requirement. Since most of the Council will not be able to attend there is no reason for the notice. Building Permit Fees and Standards: Tom Perrault indicated that some residents mentioned that they are being given conflicting information from the building inspectors. He wondered if the building 4 Council Minutes: October 13, 2008 standards were subjective and therefore inspectors would have different interpretations of what was to be done or if the temporary inspectors were not fully aware of the City's interpretation of the code. Residents have also questioned him why the same work such as reroofing doesn't have the same fee. Gary Anderson, Building Official responded saying that the fee for an item such a reroofing or residing is based on the number of squares of shingles times the dollar value attributed to a square so the greater number of shingle squares needed the higher the permit fee. As far a building standards, the City applies them uniformly. Gary Anderson cited as an example a reroofing job. The procedure they used is to inspect the roof to see if there any damage to the sheeting; ask that ice/water line be installed and pictures taken of it. They require that the shingles be installed according to the manufacturer's requirements so the inspector asks the contractor where they are going to place the fasteners. The fasteners have to be within the 3/" line as specified by the manufacturer. The inspector explains the proper way to install them. When the inspector comes back they want to see how they have been installed. Gary Anderson noted this is the point where the contractors have been failing. What has not been properly installed is required to be fixed. Clint Herbst asked about the contractor who had left the building inspector on the roof without a means to get down. Gary Anderson deferred that question to legal counsel. Gary Anderson indicated that the Building Department was originally scheduled to give a report at this meeting but it was taken off the agenda. Jeff O'Neill commented on the incident stating a report had been filed with the Department of Commerce and the individual contractor involved did apologize for the incident. Tom Perrault pointed out that contractor is to provide a ladder for the building inspector to use in making his inspection. Americanism: Wayne Mayer stated every two years the City elects a Mayor and two Councilmembers. The individuals running for office put out signs to make their candidacy known and every election these signs are destroyed. This is vandalism and it is a crime. If an individual has an issue or a concern with a candidate they should talk to the candidate about the issue and not destroy the signs. Political signs are a part of grassroots politics. 8. Consideration of approving payment of bills for October, 2008. Tom Perrault questioned the bill for vehicle maintenance for one of the building inspectors. Tom Kelly said the vehicle broke down while the individual was doing inspections for the City. Wayne Mayer asked if the individual was being reimbursed for mileage and Tom Kelly indicated that was the case. Wayne Mayer felt mileage reimbursement included maintenance. Brian Stumpf asked how long the individual had been using his vehicle before it broke down. Gary Anderson indicated it took place after about three weeks on the job. Brian Stumpf didn't feel that three weeks of in town inspections would cause that problem and he felt it was a maintenance issue that should be covered under the mileage reimbursement. Brian Stumpf said the DMV staff before they got their vehicle took care of the maintenance on their personal cars when used for work purposes. Tom Perrault questioned if was necessary for all five park employees to attend the Park Turf Management Workshop. Tom Pawelk felt it was necessary since the City was purchasing four new pieces of equipment this year and this allowed them to see demonstrations of the equipment in the field. There was also good information on irrigation systems. Tom Pawelk stated this was ahalf--day session. Council Minutes: October 13, 2008 TOM PERRAULT MOVED TO APPROVE PAYMENT OF THE BILLS WITH THE EXCEPTION OF THE BILL FOR VEHICLE MAINTENANCE FOR THE BUILDING INSPECTOR. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 9. Adiourn BRIAN STUMPF MOVED TO ADJOURN AT 7:55 P.M. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary 6 Council Agenda.: 10/27/08 SA. Consideration of approving new hires and departures for MCC and Building (JO) A. REFERENCE AND BACKGROUND: The Council is asked to ratify the hiring and departures of employees that have occurred recently at MCC and the Building Department. It is recommended that the Council officially ratify the hiring/departure ofall new employees including part-time and seasonal workers. A.1 BUDGET IMPACT: None A.2 STAFF WORK LOAD IMPACT: Until the positions are filled again, existing staff would pick up those hours. B. ALTERNATIVE ACTIONS: 1. Ratify the hire/departures of the employees as identified on the attached list. C. RECOMMENDATION: By statute the City Council has the authority to approve all hires/departures. There is no other recommendation but for the Council to exercise the authority given to them by state statute. D. SUPPORTING DATA: List of new employees. NEW EMPLOYEES Name Title Department Hire Date Class William Klein (rehire) Bldg/Code Inspector Building Temp Shay Stephens Program Assistant MCC 09-21-08 PT Terae DeMarais Life Guard MCC 10-02-08 PT Sadie Hanson Slide Attendant MCC 09-29-08 PT Danielle Nickolausen Life Guard MCC 09-30-08 PT Christine Adamski Slide Attendant MCC 10-07-08 PT TERMINATING EMPLOYEES Name Reason Department Last Day Class Nicole Gammel Voluntary MCC 09-12-08 PT Andrea Mellberg Voluntary MCC 08-31-08 PT council_employee list.xls: 10/14/2008 Council Agenda: 10/27/08 SB. Consideration of accepting preliminary assessment rolls for Kevin Longley Drive and Jerry Liefert Drive Street Improvements, City Proiect No. 2008-1OC, and setting Public Hearing date. (BW) A. REFERENCE AND BACKGROUND: Preliminary assessment rolls have been completed for the mill and overlay work completed under City Project No. 2008-1 OC. Wright County has informed City staff that the assessments for this project need to be certified by the County Auditor by December 15, 2008 for collection on next year's taxes. This deadline can be met by calling for the public assessment hearing to be conducted during the November 10, 2008 City Council meeting. This will allow adequate time for the publication and mailing of notices to satisfy the requirements for public improvement projects in accordance with Minnesota Statute 429. A copy of the preliminary assessment roll is attached for Council's review. This project is currently under construction and on schedule for completion in accordance with the contract. All properties along Kevin Longley Drive and Jerry Liefert Drive are proposed to be assessed for 50% of the costs for the work directly related to the mill and overlay improvements. These costs do not reflect work related to curb and gutter replacement or repairs, pathway improvements or turf establishment. This is consistent with the method used to assess the residents of Kenneth Lane for their mill and overlay improvements. The project is not yet complete therefore the costs used to calculate the preliminary assessment roles have been estimated based on the work completed and the value of work remaining on the contract. The estimated construction costs for the mill and overlay improvements is $128,040.15. The associated estimated indirect costs have been calculated at $30,121.41, which includes engineering, material testing, administration, legal, and financing costs. Therefore, the total cost used to calculate the assessment rates attached is $158,161.56. Actual costs will be used to determine the final assessment rates, and this amount will be known before the assessment hearing on November 10, 2008. This rate can not be more than the number presented herein however. At the public hearing ordering the improvements a preliminary assessment of $1,574 per residential unit was identified, however it was noted that this figure was likely much higher than the actual assessment rate would be. This amount was based on an assessment rate of 50% of the estimated project costs for all improvements for Kevin Longley and Jerry Liefert Drives. However, the winning bid was almost $40,000 less than the engineer's estimate, and we have since removed all costs associated with work not directly related to the mill and overlay improvements from the assessable costs. This has resulted in the assessment rate for each residential unit being lowered to $898.65. The attached assessment role reflects the addition of the three duplex units as previously discussed. Each duplex is proposed to be assessed twice the rate of the other residential units. Preliminary Assessment Roll City of Monticello Mi118 Overlay Improvements City Project Number: 2008-10C Date: October 27, 2008 EQUAL PAYMENT ANALYSIS. SPECIAL ASSESSMENTS FOR JERRY LIEFERT DRIVE AND KEVIN LONGLEY DRNE. RESIDENTIAL NO. PID OWNER NAME PROPERTYADDRESS PROPHOUSE PROPSTFL RESIDENTIAL ASSESSMENT LOT FRONT ASSESSMENT LOTS (per property) FOOTAGE AMOUNT 1 155063001110 BOHAN,JOAN I 96 JERRY LIEFERT DR 96 JERRY LIEFERT DR 1.0 $898.65 10.7 $898.65 2 155063001100 HARN,GERALD B 8 JUDITH A 98 JERRY LIEFERT DR 98 JERRY LIEFERT DR 1.0 $898.65 10.7 $898.85 3 155063001090 FORSBERG,CLAUDUI H 100 JERRY LIEFERT DR 100 JERRY LIEFERT DR 1.0 $898.85 10.7 $898.65 4 155063001080 DAVIS,JAN R 102 JERRY LIEFERT DR 102 JERRY LIEFERT DR 1.0 $898.65 10.7 $898.65 5 155063001070 UBL,THOMAS E 8 BEVERLY J 104 JERRY LIEFERT DR 104 JERRY LIEFERT DR 1.0 $898.65 10.7 $898.65 6 155083001060 DUBOW,JAMES D 8 PATRICIA R 106 JERRY LIEFERT DR 106 JERRY LIEFERT DR 1.0 $898.85 10.7 $898.65 7 155077001030 MILLER,J W JR 8 VNIAN M 108 JERRY LIEFERT DR 108 JERRY LIEFERT DR 1.0 $898.65 54.3 $898.85 8 155077001020 DUPONT,SHARON A 110 JERRY LIEFERT DR 110 JERRY LIEFERT DR 1.0 $898.65 54.3 $898.65 9 155077001010 MILLER,JAMES D 8 LOTS I 112 JERRY LIEFERT DR 112 JERRY LIEFERT DR 1.0 $898.65 54.3 $898.65 10 155049001080 BROWER,JANET M 116 JERRY LIEFERT DR 116 JERRY LIEFERT DR 1.0 $898.85 26.5 $898.65 11 155048001180 ETHERIDGE,JON G 8 CLAUDIA J 117 JERRY LIEFERT DR 117 JERRY LIEFERT DR 1.0 $898.65 198.9 $898.85 12 155049001070 ALECKSON,MURIEL E 118 JERRY LIEFERT OR 118 JERRY LIEFERT DR 1.0 $898.65 26.5 $898.65 13 155049001060 LARSON,LESLIE J 120 JERRY LIEFERT DR 120 JERRY LIEFERT DR 1.0 $898.65 26.5 $898.65 14 155049001050 EKEGREN,GARRY L 122 JERRY LIEFERT DR 122 JERRY LIEFERT DR 1.0 $898.65 28.5 $898.65 15 155048001170 MARKLING,WALTER J BPATRICIA 123 JERRY LIEFERT DR 123 JERRY LIEFERT DR 1.0 $898.65 84 $898.65 16 155049001040 SORENSEN,MK;HELLE 124 JERRY LIEFERT DR 124 JERRY LIEFERT DR 1.0 $898.65 26.5 $898.65 17 155049001030 BANYON,DALE C 8 DONNA L 128 JERRY LIEFERT DR 126 JERRY LIEFERT DR 1.0 $898.85 26.5 $898.65 18 155048001160 LANGE,FRED W 8 SHIRLEY M 127 JERRY LIEFERT DR 127 8129 JERRY LIEFERT DR 2.0 $1,797.29 100 $1,797.29 19 155049001020 BLOCK,SUSAN M 128 JERRY LIEFERT DR 128 JERRY LIEFERT DR 1.0 $898.65 28.5 $898.85 20 155049001010 CAHILL,DEANNA M 130 JERRY LIEFERT DR 130 JERRY LIEFERT DR 1.0 $898.65 26.5 $898.65 21 155058001080 VOGL,THOMAS E 8 CAROL L 132 JERRY LIEFERT DR 132 JERRY LIEFERT DR 1.0 $898.65 26.5 $898.65 22 155058001070 THEISEN,HAROLD P 8 CAROL T 134 JERRY LIEFERT DR 134 JERRY LIEFERT DR 1.0 $898.65 26.5 $898.65 23 155058001060 STK;K,MERLIN K 136 JERRY LIEFERT DR 136 JERRY LIEFERT DR 1.0 $898.85 26.5 $898.65 24 155058001050 GAUTHIER,KATHLEEN A 138 JERRY LIEFERT DR 138 JERRY LIEFERT DR 1.0 $898.65 26.5 $898.65 25 155058001040 TINDLE,BARBARA J 140 JERRY LIEFERT DR 140 JERRY LIEFERT DR 1.0 $898.65 26.5 $898.65 26 155058001030 MILLER,CHRISTINA FREV TRUST 142 JERRY LIEFERT DR 142 JERRY LIEFERT DR 1.0 $898.65 26.5 $898.65 27 155058001020 MAUS,GREGORY J 144 JERRY LIEFERT DR 144 JERRY LIEFERT DR 1.0 $898.65 26.5 $898.65 28 155058001010 NOBBS,BLAINE 8 CAROLE JEAN 146 JERRY LIEFERT DR 146 JERRY LIEFERT DR 1.0 $898.65 28.5 $898.85 29 155055001080 ELNES,KATHRYN T 148 JERRY LIEFERT DR 148 JERRY LIEFERT DR 1.0 $898.65 26.5 $898.65 30 155055001070 MENZHUBER,LOWELL F 150 JERRY LIEFERT DR 150 JERRY LIEFERT DR 1.0 $898.65 26.5 $898.65 31 155055001060 MARKLING,FLOYD F REV LN TRUST 152 JERRY LIEFERT DR 152 JERRY LIEFERT DR 1.0 $898.65 28.5 $898.65 32 155048002090 EBNER,FRANCIS J 8 DEBORAH J 153 JERRY LIEFERT DR 153 JERRY LIEFERT DR 1.0 $898.65 130 $898.65 33 155055001050 GRIMSMO,ARVE A 8 JEAN A 154 JERRY LIEFERT DR 154 JERRY LIEFERT DR 1.0 $898.65 26.5 $898.85 34 155055001040 FRIE,DANIEL R 8 JEAN M 158 JERRY LIEFERT DR 156 JERRY LIEFERT DR 1.0 $898.65 28.5 $898.65 35 155055001030 HOLTHAUS,AARON T 158 JERRY LIEFERT DR 158 JERRY LIEFERT DR 1.0 $898.65 26.5 $898.65 38 155055001020 W IESE,LYNN A 160 JERRY LIEFERT DR 160 JERRY LIEFERT DR 1.0 $898.65 28.5 $898.65 37 155055001010 RASSAT,MARY G 162 JERRY LIEFERT DR 162 JERRY LIEFERT DR 1.0 $898.85 28.5 $898.65 38 155062001080 BRANDON,JOAN M 184 JERRY LIEFERT DR 164 JERRY LIEFERT DR 1.0 $898.65 28.6 $898.65 39 155062001070 MANSUR,W ILLWM C 8 SHIRLEY 166 JERRY LIEFERT DR 166 JERRY LIEFERT DR 1.0 $898.65 26.6 $898.65 40 155048002110 SEEFELDT,W ILLIAM J BMERRLYN 167 JERRY LIEFERT DR 187 JERRY LIEFERT DR 1.0 $898.65 90 $898.65 41 155062001060 GRABINSKI,THOMAS L 168 JERRY LIEFERT DR 168 JERRY LIEFERT DR 1.0 $898.65 28.8 $898.65 42 155062001050 FORNER,LEE E 8 JULIE A 170 JERRY LIEFERT DR 170 JERRY LIEFERT DR 1.0 $898.65 28.6 $898.65 43 155062001040 BROMBERG,STEVEN A 8 JANET G 172 JERRY LIEFERT DR 172 JERRY LIEFERT DR 1.0 $898.65 26.6 $898.65 44 155062001030 GRIEME,GAIL S 174 JERRY LIEFERT DR 174 JERRY LIEFERT DR 1.0 $898.65 28.6 $898.65 45 155048002120 GOERZ,KYLE B 8 LEANNE 175 JERRY LIEFERT DR 175 JERRY LIEFERT DR 1.0 $898.65 70.9 $898.65 46 155062001020 MOORES,BRWN W 176 JERRY LIEFERT DR 176 JERRY LIEFERT DR 1.0 $898.65 26.6 $898.65 47 155062001010 ALM,MARY 178 JERRY LIEFERT DR 178 JERRY LIEFERT DR 1.0 $898.65 26.6 $898.65 48 155101001030 BAKKEN,ELEANORE 188 JERRY LIEFERT DR 188 JERRY LIEFERT DR 1.0 $898.65 39.8 $898.65 49 155101001020 HfTTER,RODNEY J 192 JERRY LIEFERT DR 192 JERRY LIEFERT DR 1.0 $898.65 39.6 $898.65 50 155101001010 KOROPCHAK,OLNE M 196 JERRY LIEFERT DR 196 JERRY LIEFERT DR 1.0 $898.65 39.8 $898.65 51 155048002130 MCGRAW,MARTIN P 8 CORINNE E 203 JERRY LIEFERT DR 203 JERRY LIEFERT DR 1.0 $898.85 110 $898.65 52 155048004040 FRIE,RK;HARD H 8 MARILYN A 208 JERRY LIEFERT DR 206 JERRY LIEFERT DR 1.0 $898.65 95 $898.65 53 155048002140 JOHNSON,GERALD D 8 CAROL E 209 JERRY LIEFERT DR 209 JERRY LIEFERT DR 1.0 $898.65 135 $898.65 54 155048004030 FORAR,JAMES 8 LORRAINE 210 JERRY LIEFERT DR 210 JERRY LIEFERT DR 1.0 $898.65 80 $898.85 55 155048004020 FRIE,DANIEL R 8 JEAN M 214 JERRY LIEFERT DR 214 JERRY LIEFERT DR 1.0 $898.65 79.9 $898.65 56 155048002150 FINK,ROBERT K 8 AMY S 217 JERRY LIEFERT DR 217 JERRY LIEFERT DR 1.0 $898.65 95 $898.85 57 155048004010 JENSEN,CHRISTOPHER G 8 C A 218 JERRY LIEFERT DR 218 JERRY LIEFERT DR 1.0 $898.65 95 $898.65 58 155048002160 LEVERENTZ,KEVIN R 8 JOAN L 221 JERRY LIEFERT DR 221 JERRY LIEFERT DR 1.0 $898.65 125 $898.65 59 155048003030 DEHNE,STEVEN M 8 SHEILA K 222 JERRY LIEFERT DR 222 JERRY LIEFERT DR 1.0 $898.85 95.7 $898.65 60 155048003020 REHKAMP,ROGER H 8 JOAN K 226 JERRY LIEFERT DR 226 JERRY LIEFERT DR 1.0 $898.65 80 $898.65 81 155048001150 MILLER, JOHN W III 8 DEBORAH T 105 KEVIN LONGLEY DR 105 8107 KEVIN LONGLEY DR 2.0 $1,797.29 80.6 $1,797.29 62 155048002080 DAHLHEIMER,JOSEPH L 108 KEVIN LONGLEY DR 108 KEVIN LONGLEY DR 1.0 $898.65 179.2 $898.65 83 155048001140 BETZ,KARLA L 109 KEVIN LONGLEY DR 109 KEVIN LONGLEY DR 1.0 $898.65 84 $898.65 64 155048001130 BAKKEN,RANDY L 8 ALLISON R 111 KEVIN LONGLEY DR 111 KEVIN LONGLEY DR 1.0 $898.85 84 $898.65 65 155048002070 RENSTROM,MK:HAEL R 8 KAREN L 112 KEVIN LONGLEY DR 112 KEVIN LONGLEY DR 1.0 $898.65 159.4 $898.65 66 155048001120 BIGALKE,GREG E 8 DIANE M 113 KEVIN LONGLEY DR 113 KEVIN LONGLEY DR 1.0 $898.65 84 $898.65 67 155048002060 O'NEILL,JEFFREY R BKIMBERLY 114 KEVIN LONGLEY DR 114 KEVIN LONGLEY DR 1.0 $898.65 80 $898.65 68 155048001110 THOMPSON,RICHARD K 8 WENDY 115 KEVIN LONGLEY DR 115 KEVIN LONGLEY DR 1.0 $898.65 84 $898.65 69 155048002050 MASER,DALE K 8 LAURA J 118 KEVIN LONGLEY DR 116 KEVIN LONGLEY DR 1.0 $898.65 84 $898.65 70 155048002040 TRAVER,RICHARD 8 JR 88ARBARA A 200 KEVIN LONGLEY DR 200 KEVIN LONGLEY DR 1.0 $898.65 84 $898.65 71 155048001100 FRIE,MARK J 8 PATRICIA A 201 KEVIN LONGLEY DR 201 KEVIN LONGLEY DR 1.0 $898.65 84 $898.65 72 155048002030 HAZUKA,RICHARD J BJANELLE L 202 KEVIN LONGLEY DR 202 KEVIN LONGLEY DR 1.0 $898.65 84 $898.65 73 155048001090 SEGLER,KENNETH R 203 KEVIN LONGLEY DR 203 KEVIN LONGLEY DR 1.0 $898.65 84 $898.65 74 155048002020 OLSON,ANTHONY M 8 ANGELA A 204 KEVIN LONGLEY DR 204 KEVIN LONGLEY DR 1.0 $898.65 110 $898.65 75 155048001080 LINDENFELSER,JASON 8 JENNIFER 205 KEVIN LONGLEY DR 205 KEVIN LONGLEY DR 1.0 $898.85 84 $898.65 76 155048001070 DICK,STANLEY P 8 GISELE J 207 KEVIN LONGLEY DR 207 KEVIN LONGLEY DR 1.0 $898.85 84 $898.65 77 155048002010 CARLSON,ROGER A 8 SONJA R 208 KEVIN LONGLEY DR 208 KEVIN LONGLEY DR 1.0 $898.65 120 $898.85 78 155048001060 KANTHAK,CONSTANCE R 209 KEVIN LONGLEY DR 209 KEVIN LONGLEY DR 1.0 $898.65 84 $898.85 79 155048001050 PETERSON,JEFFREY EBTAMARA J 211 KEVIN LONGLEY DR 211 KEVIN LONGLEY DR 1.0 $898.65 84 $898.65 80 155048003010 KLEMZ,KATHLEEN E 212 KEVIN LONGLEY DR 212 8 216 KEVIN LONGLEY DR 2.0 $1,797.29 309.7 $1,797.29 81 155048001040 KUJAWA,ARLENE K 213 KEVIN LONGLEY DR 213 KEVIN LONGLEY DR 1.0 $898.65 84 $898.65 82 155048001030 ROBAK,KRIS J 215 KEVIN LONGLEY DR 215 KEVIN LONGLEY DR 1.0 $898.65 84 $898.65 83 155048001020 HOLTHAUS,REBECCA A 217 KEVIN LONGLEY DR 217 KEVIN LONGLEY DR 1.0 $898.65 84 $898.65 84 155048001010 LINDENFELSER,JOSEPH L 8 TERESA 219 KEVIN LONGLEY DR 219 KEVIN LONGLEY DR 1.0 $898.65 299.4 $898.65 85 155048000010 CITYOF MONTICELLO 1.0 $898.85 322 $898.65 86 155500033102 CITY OFMONTICELLO "•• TOTALS 88.0 $79,080.78 5852.7 $79,080.78 '"The assessment rate for Jerry Liefert Dr 8 Kevin Longley Dr is calcu lated based on 50 % of the overall costs to mill 8 overlay the roadway divided by the number of lots benefiting from the surface improvement "'Total front footage and assessments, for the city of Monticello, included in above parcel. Total cost $158,161.56 $79,080.78 Rate 50.00% ~.~ -~ H w ~.,. e~r``ws>~ u ~,~V4 *' +, ~'~'. J ,~: J ~.. g ~~ ` ,.~ fi ,., t~ ~ ~ ~.a:' 'w ~~ ~, ~~ ~~ ~~ ~ f~, ~~ ~II~ M~!H11b,UV ~.~ s. ~ ." .r p,f ,!4 -. r a,T~ ~ ~~~ ~~~ a~~~~~ -~.-~' ,~ fs~~Q ~~ <O~ ~i ~~~ ~ ' .~i li~~"` .~~~ Ili r o I ~ ~~, y'~ ~ 5 ~ 1 1 ~ ~P' ~. ~~ f .. a. . _ ~, -'. ' - tJ _,. 7 , :~~. ~, - ~~ ~ t ,, ~, `a 4 ,. rf., ~. i •~ re rah-~. .i . ....ij ~ _ .- J ~ ~- _ a ~ a. . ~ _i T ;. f _ _ ,_ .. , . ~,: --.~/~~ R , "~.,'~ ,~ .IM i ~'. ~ }~. ^' ~X ~ .. ~~~~~ ~ ,~'°r° ~ '"'kit ' 7 ~ S ,. ~ ~ .. w ~. 9 ~~,x Y a p "7~. v~et~. ~, -tl ~~{:~a gr ~'~il .~_ .q ~: ~, ,fi .. ~.R~ i~`A Y `~ .4t" ~w,~ _~ `1 inY F FM: X84 .._ u!I~ . . .~ ~VR1~ i . '. ..f.~ __ ~ - ~ _.- _ --- --~_ _ ` ~ '~ ~- m _ ;~ _ __ _. __ . - ~ _ = -- N v __ __._ - __-- .._ .... i i ~i ~:. ~ N ~ N N .~ N ~ N ~ ~A ~ ~ p /~N N O N N p ~ ~, , y ~ ;• ,y --- N _. _ _ , _ _, _.. ,. ~----- _ __ ~ __ N_ ~ ~ -^l, N 't~ O ~ ~ ~ ~ ~ ~ ~~i ~ i ~~ ~i ~~\ ~ ~ W ' N NO \ N e J, p-,. O f' N '~, ~ - --- - --- - Y, ~ ~ CO __. ~_ ~ y ~ ~\ N ~ %' I -~ ~ ~ , ~ ~ p ~ / N ~, -~--- Ul ~ ~~~ N ji i p ~. ., ~ N \/ ~'~ ~ I ~ ~ ~ ~ ~ ~ J7 --~- 'jN-~r ~ aO j N 'i p ~ / ~ \\\. l ~.__l._..: I / I ~ ~ , / ~ _~ ~G I ~ -..~y__.{ .... I r ~ I ~ ~ ~ i~, ~ \ \ i ~ --, ~.__. . ~- ~ ~ ~ ~ O --~---~ ~ I. .A. 0D l j ~ / ~ ~'-{ /r O ~ ~ ~ j ~ p / i-.y_. __I ~ O j \ I ~ ~ W __.~,.._ , V~ _ ~ -~ ~1J • I I ~~t~i, ~ N ~ ~ V~ !~ O-N~ i ~ ~ i _~- ',~ ~ 1 ~ ____'._.._ j ~ ~ ~ ~ i .i -_- __ ~__. _..~ V , J - '-N .__ ~ , ~ F ~< C H~z O ON m O m Council Agenda: October 27, 2008 SC. Consideration of resolution apuroving renewal of gambling license for Monticello Youth Program Inc. (TK) A. REFERENCE AND BACKGROUND: The Monticello Youth Program Inc. is requesting renewal of their license for charitable gambling operations at Hawks Sports Bar and Grill and the Monticello Country Club. Attached is a copy of their audited financial report. Trent Giffort from the Hockey Association stated that lawful purpose expenditures for 2007 included $44,000 paid to Moose Skeritt arena for ice time. Another $11,000 was related to expenses for raffles and licenses which qualify as lawful purpose expenditures making a total of $55,000 in lawful purpose expenditures. Prior to the State Gambling Control Board issuing a license, the City Council must pass a resolution approving or denying the application. The staff is not aware of any reason why the Council would not allow the state to issue this license. B. ALTERNATIVE ACTIONS: 1. Adopt resolutions authorizing the State Gambling Control Board to renew the charitable gambling license to the Monticello Youth Program, Inc. for charitable gambling activities at Hawks Sports Bar and Grill and the Monticello Country Club. 2. Do not approve the resolutions. C. STAFF RECOMMENDATION: Staff recommends the adoption of the resolutions authorizing the issuance of the licenses. The City is not aware of any reason why the license should be denied. D. SUPPORTING DATA: Resolutions Financial Report CITY OF MONTICELLO RESOLUTION N0.2008-85 RESOLUTION AUTHORIZING THE RENEWAL OF A CHARITABLE GAMBLING LICENSE WHEREAS, Monticello Youth Program Inc. has submitted an application to the City Council of Monticello for a charitable gambling license to conduct gambling activities at the Monticello Country Club at 1209 Golf Course Road, WHEREAS, the Council is not opposed to the gambling license being issued by the State Gambling Control Board, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL that the application by the Monticello Youth Program Inc. for a charitable gambling license to conduct gambling activities at the Monticello Country Club, 1209 Golf Course Road is hereby approved for renewal and the State Gambling Control Board is authorized to process the application. Adopted by the Monticello City Council this 27th day of October, 2008. ATTEST: Clint Herbst, Mayor Jeff O'Neill, City Administrator CITY OF MONTICELLO RESOLUTION N0.2008-86 RESOLUTION AUTHORIZING THE RENEWAL OF A CHARITABLE GAMBLING LICENSE WHEREAS, Monticello Youth Program Inc. has submitted an application to the City Council of Monticello for a charitable gambling license to conduct gambling activities at Hawks Sports Bar and Grill at 9697 Hart Boulevard, WHEREAS, the Council is not opposed to the gambling license being issued by the State Gambling Control Board, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL that the application by the Monticello Youth Program Inc. for a charitable gambling license to conduct gambling activities at Hawks Sports Bar and Grill, 9697 Hart Boulevard is hereby approved for renewal and the State Gambling Control Board is authorized to process the application. Adopted by the Monticello City Council this 27th day of October, 2008. ATTEST: Clint Herbst, Mayor Jeff O'Neill, City Administrator LAWFUL GAMBLING FUND OF MONTICELLO YOUTH PROGKAM LICENSE #B-04147 REGLJLA'T'ORY BASIS FINANCIAL STATEMENTS AND INDF.PF,NDENT' AUDITOR'S REPORT MARCH 31, 2008 AND 2007 JOHNSON, BRUNS & COMPANY CHARTERED C'ertifr'ed Yarblic Accountants Vireinict ,4. Brrrnti. CPA' 14arlys }:.Johnson, retired CPA INDEPENDENT AUDITORS' REPORT 111 Lake Street N. P. 0. Bcrx Z 19 H;,~ t.~rke, n~t'v »30y I3oard of Directors and Members x763) 363-3300 Monticello Youth Program Fax t76~) 263-8020 License #B-04147 ~~brnntic~>5n~retel.net Monticello, MN 55362 We have audited the accompanying statements of assets, liabilities and profit carryover -regulatory basis of the Lawful Gambling Fund of the Monticello Youth Program as of March 31, 2008 and 2007, and the related statements of revenues, expenses, and changes in profit carryover -regulatory basis for the years then ended. "These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with United States generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a basis for our opinions. As described in Note 1, these financial statements were prepared in conformity with the accounting practices prescribed or permitted by the Department of Revenue of the State of Minnesota "regulatory basis," which is a comprehensive basis of accounting other than United States generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and profit carryover of the Lawful Gambling Fund of the Monticello Youth Program as of March 31, 2008 and 2007 and the results of its operations and changes in its profit carryover for the years then ended, on the basis of accounting described in Note 1. This report is intended solely for the information and use of the Board of Directors, members and management of the Monticello Youth Program and for filing with Minnesota Revenue and is not intended to be and should not be used by anyone other than these specified parties. i1 Johnson, Bruns & Company, Chartered Big Lake, Minnesota September 20, 2008 * Enrolled to Practice Before the IRS I * Accredited Tax F'reparer * Accredited Tax Advisor I,A~4'FUL (;AMBI.,ING FUl~'D OF '~'ION'I'ICI31,L0 YOUTH PROGRA141 LICENSE #B-04147 tiT'ATI;MENT' OF ASSETS, LIABILITIES AND PROFIT CARRYOVER RF..GLILATORY BASIS MARCH 31, 2008 AND 2007 Cash nn Nand -Start Banks Cash in Bank-Checking ]m°entory I)nsold Ticket Tax Refund I'addle«=heel Prize Inventory Fund Loss Due prom General Fund TOTAL ASSETS Accounts Payable Accrued Gambling Tax Accrued Raffle Prizes TOTAL LIABILITIES PROFIT CARRYOVER Protit Carryover-Restricted TOTAL LIABILITIES AND PROFIT CARRYOVER ASSETS 3/31/2008 3/31/2007 $ 7,300 $ 4,801 36,635 68,499 931 1,038 1,425 3,479 p 120 0 1,457 1,599 1,200 $ 47,890 $ 80,594 L[ABILIIES 0 1,983 3,790 $ 4,671 8,930 10,050 $ 12,720 $ 16,704 $ 35,170 $ 63,890 $ 47,890 $ 80,594 See Accompanying Notes to Financial Statements 2 I :1ti~~ F[ `1. (i:~Mi'i1.fNG FUND OI' ~i+~ 11C'ELIt) YUUTII PROGRAM LICEI*~SE #8-04147 t r„~1:~ ; i t}' }LF:VF.\l:'I~.5, EXPENSES AND CHANGES IN PROFI"I' CARRYOVER RI:GULAT'ORY BASIS hOR YEARS ENDED MARCH 31, 2008 AND 2007 3!31 /2008 3/31 /2007 kl ti i '.i 1;,, ___ $ 1,149,973 $ 1,164,314 t,r;=:~!.:c~ipt; Pul(tsbs 799 98$ 997,039 }'rzr: ?':ria Pulhabs $ , !61,174 $ 167,275 Net I'ulltab Revenue $ 31,131 $ 37,484 t irnS9 Receipts -Raffle 17,450 15,901 Pries Paid -Raffle $ 13,681 $ 21,583 Net Raffle Revenue $ 10,260 $ 3,030 Gross Receipts -Paddlewheel 6 S20 2,020 i'rizcs Paid -Paddlewheel $ 3,440 $ 1,0 ] 0 Net Paddlewheel Revenue $ 8,916 0 Gross Receipts -Bingo 6,652 0 Prizes Paid -Bingo ~ 2 264 0 Net Bingo Revenue $ 119 0 Interest Income $ ! 80 678 $ 189,868 GROSS PROFIT ALLOWABLE EXPENSES: $ 13,321 $ 14.251 Cost of Games Played 5g 125 46,165 Compensation & Payroll Taxes 14,614 12,408 Rent g 171 4,417 Supplies i 1,805 7,475 Professional Fees 681 683 License and Bond S69 2,410 Cash Short $ 107,586 $ 87,809 TOTAL ALLOWABLE EXPENSES NE"f REVENUES AFTER ALLOWABLE F..XPENSES $ 73,092 $ 102,059 I.AVb`FUL PUKPOSE EXPENDI"fURF.,S: $ 55,000 $ 35,182 Donations 26,259 24,875 Gambling Tax on Purchases 25,970 26,715 Combined Receipts Gambling Tax (4,067) (5,270) Unsold Ticket Tax Refund 0 x,233 Audit 900 600 License ~. Fees (2 290) 0 990-T Tax Refund $ 101,812 $ 84,335 TOTAL LAWFUL PURPOSE EXPENDITURES REVENUES IN EXCESS OF EXPENDITURES $ (28,720) $ 17,724 $ 63,890 $ 46,16b Profit Carryover-Beginning of Year $ 35,170 $ 63,890 I'KOFIT CARRYOVER-END OF YEAR 3 See Accompanying Notes to Financial Statements. _;:: ; i i _ ,-, ._, ~ ~"i=)Is~l~ll PRQ(;R,11v~t I ,t'l;ti~l' ;13-0-714? '~:~.'~ i i.`.~ 1 (? [~1~':~tiC'1:1L S fATF,MENTS '~~fo~,RCH 31, 2008 AtiD 2007 .t ~ ^.-t ', I< ; c~tF cif ii~:lFiC::~\~ ~CCUt)NT1NG PO_LtCIES ,~ l ~):~ tttirativn ~~ ! 1~~ '~lunticellt~ Youth f'rc>~ram is a non profit corporation organized to promote youth hockey in the Miinticellu area. The organization conducts lawful gambling at 2 locations in the 'Monticello area. During the year ending March .31, 2008 pulltabs, raffles, paddlewheels and hin~o were the forms of gambling conducted. During the year ending March 31, 2007, pulltabs, paddlewheels and raffles were the forms of gambling conducted. These financial statements include only the lawful gambling fund and do not present the financial position of the organization as a whole. Revenue in excess of allowable expenses generated by the Lawful Gambling bond can only be used for lawful purposes and Board approved expenditures as detined by Minnesota Statutes. Basis of F?resentation T'he regulatory basis of accounting is the basis of accounting prescribed by the State of Minnesota, which is a comprehensive basis of accounting other than t7.S. generally accepted accounting principles. The regulatory basis of accounting differs from the accrual method of accounting in that under the regulatory method, all costs other than the cast of the games and the state gaming taxes are expensed when paid. In addition, under the accrual method, state gambling taxes paid upon purchase of the game would be considered prepaid upon purchase and expensed during the period the game is used. Under the regulatory method, these state gambling taxes are expensed when paid. Also, under the regulatory method, the cost of equipment is expensed, whereas under U.S. generally accepted accounting principles, such expenditures are capitalized and depreciated over the asset's estimated useful 1 i fe. Use of Estimates The preparation of financial statements in conformity with the regulatory basis of accounting requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash -Starting Game Banks Starting game banks consist of imprest amounts which are used to fund open play of games. ' Inventories _ Inventories consist of the vendor costs of the games purchased. State gambling taxes paid upon purchase of the games are not included in inventories. 4 . .;` l3~~'.L1i :11?ti?1~ <tit!'i'Ii1Cti 1~li~~7t} ili4 ~~-- ~•~tic;l 1t:-rcli ; I, X005 ar-~ ~~)tii ~:~~4~~ ~'• .. _ _.. . , , __~~~.~:n~at frun- Mate and federal income taxes under Section ~U1 (~~~ (~) -: ' ,~-~~,.;~ t'n~ie. 1-low~crer. the Organization is required to pay state anti ,, w_ ..;_ ~ ...<-,. r,t unrcl<-ted business income. Under the regulatory u-ethud, inc~~mz _, _ ;~t::,<i;;~~•,i ~,~-hen paid. .,: ~'~ i i:.1 . t_; ~.`~lI : 1 I ~ (7ti(;_ aND_1ZESl.1[ _[~S ~ut?~e~l-~cnt trti ~~car end, the organizations independent auditor selected 16 pulltab games, inciu~linc eames with unsold tickets, to be tested as part of the audit. The exceptioms t<~ c>ur tc~tin~„ as reported to the Monticello Yout - -- ---- h Program are as tottows: ____ _ __ _ _, Amount as Reported in _ Amount ati Came Serial Number -_ _ Type of Game ___ Gambling Tax Return _ "Tested _ - 8541589 Pulltab 2269 Prizes __ 2369 Prizes _ ~ 2224510 ~ Pulltab 1666 Prizes 1686 Prizes ~ _ 8994045 Pulltab 918 Unsold _ 920 i_Jnsold _~ 3001759 ` - - 8994169 Pulltab Pulltab 1474 Unsold _ 3876 Prizes --+ 1484 Unsold_ ~ 3944 Prizes __ _ 8994169 _ _ 3262642 9062148 Pulltab Pulltab Pulltab 912 Unsold _ 1798 Prizes 6320 Prizes ~ 910 Unsold _ _ 1764 Prizes 6318 Prizes On April 2, 2008, the inventory of games was observed by the Organization's -ndependent auditors. No exceptions in the Organization's perpetual inventory records were noted. In addition, cash on hand of $7,766 was counted. NOTE 5: UNSOLD T'1CKET TAX REFUND RECEIVABLE This amount represents the amount to be refunded by the State of Minnesota for tax on unsold tickets paid for when purchased. This amount is refunded once a year for games closed that have unsold tickets. NOTE 6 : RECEIVABLE FROM GENERAL FUND The receivable is for raffles conducted and the funds deposited in the ~~rong account. LAWFUL GAMBLING FUND OF 1490NT[CELLO YOUTH PK(~GRAMS LICENSE #Q-04147 NO"I ES TO FINANCIAL STA"fEMrNTS MARCH 31, 2008 ANll 2007 `OTF, 7 : ACCRUED RAFFI,f Pftl`Z._E .'1 calendar raffle is held where a prize winner is picked for each day on the calendar. Each day has an amount the prize is worth. The raffle took place in December with the prizes to be paid out over the year. The total prizes were reported when tlae raffle closed. The amounts that still remain to be paid at the end of the fiscal years March 31, 2008 and 2007 are $8,930 and $10,050 respectively. 1OT[: 8;_AI_I_U~'~'AI3LE F~PEN~fS Allowable expenses required by Minnesota state law to he under 60° o of gross receipts less prizes paid. NO fl=, 9: FUND I:_OSS Two pulltab games were stolen from inventory. These games were reported on the schedule B-2 for March 2006 when the theft was found. This was reimbursed to the gambling fund from the general fund on September 28, 2007. JOHNSON, BRUNS & COMPANY CHARTERED _ Certified Public Accotrtttants Virginia A. Bruns, CR4* Marlys E. Johnson, retired C'F'A t l ! Lake Street N. P. O. Box 2I9 Big Lake. MN 55 309 (763) 263-33~xt Fax (763) 263-$p20 rbrunstdsherbtei.net INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTARY LNFORMATION Board of Directors and Members Monticello Youth Program License #B-04147 Monticello, MN 55362 Our report on our audits of the basic financial statements of the Lawful Gambling Fund of the Monticello Youth Program for the years ended March 31, 2008 and ?007, appears on page 1. Those audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information as listed in the Table of Contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it. This report is intended solely for the information and use of the Board of Directors, members and management of the Monticello Youth Program and Minnesota Revenue and is not intended to be and should not be used by anyone other than these specified parties. l/ Johnson, Bruns & Company, Chartered Big Lake, Minnesota September 20, 2008 * Enrolled to Practice Before the iRS * Accredited Tax Preparer * Accredited Tax Advisor Accredited Business Accountant LAWFUL GAMBLING FUND OF MONTICELLO YOUTH PROGRAM LICENSE #B-04147 RECONCILIATION OF GAMES USED REGULATORY BASIS FOR THE YEARS ENDED MARCH 31, 2008 AND 2007 Pulltabs 3/31/2008 3!3112007 Inventory -Pulltabs -April 1 Purchases Total Available Less Invcntorv -March 31 NE"I' AVAILABLE - COST OF GAMES PLAYED Games Closed on Monthly Lawful Gambling Activity Summary and Tax Returns VARIANCE 24 $ 1,038 27 $ 1,110 307 13,009 321 14,140 331. 14,047 348 15,250 22 (916) X24) (1,038} 309 $ 13,131 324 $ 14,212 (309) 0 a o Paddlewheel ]memory-Paddlewheel -April i Purchases Total Available Less inventory-March 31 NE"I' AVAILABLE COST OF GAMES PLAYF_,D Games Closed on Monthly Lawful Gambling Activity Summary and "Tax Returns VARIANCE 0 $0 0 $0 12 140 3 39 12 $ 140 3 $ 39 0 0 0 0 12 $ 140 3 $ 39 (12) 3) 0 0 8 LAWFUL GAMBLING FOND OF MON"C[CELLO YOUTH PROGRAM LICENSE uB-04147 ALLOWABLE EXPENSE; PERCENTAGE ('OMPUTATIONS REGULA"TORY BASIS FOR THE YEARS ENDED MARCH 31, 2008 AND 2007 RFVIN[IES: Gross Keeeipts (Apr-June 2006') Prizes Paid NI;"1' ItEVEN1IE r111o«~able Expense Limit Percentage 144AX1M14UM ALLOWABLE: EXPENSES BY MINNESOTA S"GATE STA~fUTES Grvss Receipts fJuly 2006-March 2007) Prizes Paid NE7' REVENUE :~llvwable Expense Limit Percentage 3/3112008 3/31/2007 $ 1,200,399 $ 311,283 {1,019,721) (263,846) $ 180,678 $ 47,437 60.0°'a 55.0°ro $108,407 $26,041 $0 $893,545 0 (751,114) $0 $ 142,431 0.0°.'0 60.0% MAXIMLiM ALLOWABLE EXPENSES BY MINNESOTA S'1'A'I'1; S"CA"CU"CE5 $0 $85,459 Gross Receipts --Bingo $ 8,916 $0 Prizes Paid 6.652 0 NET RF,VI•;NUE -BINGO $ 2,264 $0 :~Ilv~~-able Expense Limit Percentage 10.0% 0.0:'° BINGO MAXIMUM AI,LOV6'ABLE EXPENSE BY MINNESO"1'.4 STATE STATUTE„S $ 226 $0 TOTAL. MrtXIMUM ALLOWABLE EXPENSES BY MINNESOTA S"FATE STATiJTES $ 108,633 $ } 1 1,500 ALLOW'ABL,F, EXPENSES: C.vst of Games Played Insurance Compensation and Paproll Tares Professional Fees Supplies Rent Cash Sham Corer) CO"CAk, ALLOWABLE EXPENSES f-:XP1:NSES LiNDER ALLOWABLE LIMI"C ALLOWABLE F,XPENSE PERCENTAGE $ 13,321 $ 14,251 681 683 58,125 46,165 11,805 7,475 8,171 4,417 14,614 12,408 869 2,410 $ 107,586 $ 87,809 $ 1,047 $ 23,691 59.6% 46.2% 9 LAWFtJt. GAMBLING FUND OF MON'I~ICELLO YOUTH PROGRAM L.iCENSE #B-04147 RECONCLLIATION OF PROFIT CARRYOVER REGULATORY BASIS FOR TEtE YEARS ENDED MARCH 31, 2008 AND 2007 3r`31l2008 3/31/2007 AD_D_ITIONS Cash in Gambling Bank Accounts $ 36,635 $ 68,499 Cash in Starting Banks 7,300 4,801 Ending Inventory 931 1,038 unsold "I~icket "tax Refund 1,425 3,479 Paddlewheel Prize Inventory 0 120 Fund i,oss 0 1,457 Due From General Fund 1,599 1,200 Total Additions $ 47,890 $ 80,594 SUBTRACTIONS Accounts Payable $0 $ 1,983 Accrued Gambling Tax 3,790 $ 4,671 Accrued Raffle Prize 8,930 $ 10,050 Total Subtractions $ 12,720 $ 16,704 PROFIT CARRYOVER FROM FINANCIAL STATEMENTS $ 35,170 $ 63,890 PROFIT CARRYOVER FROM TAX REPORT $ 35,168 $ 63,890 VARIANCE FROM BALANCE (2) $0 Variance is due to rounding. 10 JOHNSON, BRUNS & COMPANY CHARTERED Certi~ecl Public Acc~anztcrnts Vit~,inia :1. riruns, CPA* Marlys E. Johnson, retired CPA I 1 I Lake Street N. P. O. R~~x 219 Bio Lake, 11N 55 iO9 ~~~~>'~-~-~ ~~~ REPOR'C ON RF,GULATORY CHECKLIST QUESTIONNAIRE tTax (763) 2C~?-8020 vbrunsCa?sherbtel.net Board of Directors and Nfembers Monticello Youth Program License #B-Odl~7 Monticello, MN 55362 We have audited the financial statements of the Lawful Gambling Fund of the Monticello Youth Program for the year ended March 31, 2008, and have issued our report thereon dated September 20, 2008. We conducted our audit in accordance with United States generally accepted auditing standards. 'Those standards require that w•e plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance with laws and regulations applicable to the Lawful Gambling Fund is the responsibility of the Monticello Youth Program management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we completed the Regulatory Checklist Questionnaire which is attached to this report. However, the objective of our audit of the fiinancial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. This report is intended for the information of the Board of Directors, mernbers and management of the Monticello Youth Program and Minnesota Revenue, and is not intended to be and should not be used by anyone other than these specified parties. ~ ~ -~ ~"~u~~~ ~s r ~ ~- Johnson, Bruns & Company, Chartered Big Lake, Minnesota September 20, 2008 * Enrolled tv Practice Befvre the (RS "Accredited Tax Preparer a Accredited Tax Advisor LAWFUL GAMBLING FUND OF MONTICELLO YOUTH PROGRAM L[CENSE ;~B-04147 REGULATORY CHECKLIST QUESTIONNAIRE MARCH ~ 1, 2008 Yes No N/A 1. The organization conducted gambling only at sites f'or which it had obtained a premises permit or a one-day off-site permit. X Z. The organization had a licensed gambling manager at all times gambling was conducted. X 3. A lessor, a member of a lessor's immediate family, or an employee of a lessor was not a gambling manager of the organization. X 4. "1'he organization's gambling manager was bonded for an amount of at least $10,000. X 5. Checks for the expenditure of gross profits from gambling were signed by at least two active members of the organization who have been authorized to sign checks. X 6, "I'he organization did not pre-sign gambling account checks. X 7. The organization did not use signature stamps to sign gambling account checks. X 8. The organization has terminated all gambling activity, a termination plan has been filed with the Gambline Control Board. 9. The organization has paid all rent for the lease of premises in accordance with its lease agreement(s). X X lz JOHNSON, BRUNS & COMPANY CHARTERED Certified Public Accountants REPORT ON INTERNAL CONTROL Virginia A. Bruns, CPA* Marlys E. Johnson, retired CPA t 11 Lake Street N. Board of Directors and Members P ~ Box ~ ~ 9 Big Lake, MN 55309 Monticello Youth Program (763> 263-3300 License #B-04147 Fax (763> 263-8020 Monticello, MN 55362 vbruns~~sherbteLnet 1n planning and performing our audit of the financial statements of the Lawful Gambling Fund of the Monticello Youth Program for the year ended March 31, 2008, we considered it's internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control. However, we noted certain matters involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to deficiencies in design or operation of internal control that, in our judgment, could adversely affect the Organizations ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. Game Testing and Results The auditing of the games showed more errors this fiscal year than in the previous year. More care needs to be taken in the counting of tickets. Lack of Sufficient Accounting_Records In order to audit the organization a trial balance needed to be prepared by the auditors as one was not prepared by the organization. Segregation of Duties The organization has an independent accounting firm prepare the monthly gambling reports so all the duties are not prepared by one individual. Cash Shortages The amount of cash shortages have decreased quite substantially over the last year. Last year a comment was made in this fetter and measures were taken to correct the problem. 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NI ~'' c9 OI .n l ._. `° I ° c m 'o I o' EI "'. ~I I d I t ~~ i ! ~ v~ 'I c? 1 I HI XI I ~I NI ' O ai I 7I L `° ! r` U w a \ J d a lC f6 L U O v 0/ N 0 Q H N 0 m m c f6 O C U N a --~.- .~ Pa5 ,,contribution Report MONTICELLO YOUTH HOCKEY For All Sites From 4/1/2007 to 3/31/2008 Date Check Tot: Written Number Payee Description For 4/13!2007 4085 MOOSE SHERRITT ICE ARENA ICE TIME 16650.0 0 -2250 4/24/2007 DEP IRS 9/21/2007 4307 MOOSE SHERRITT ICE ARENA 9907 REFUND ICE TIME BILLS . 4968.7 150 0 1Q/16/2007 4318 STATE OF MINNESOTA PREMISES PERMIT APPLICATION FEE HIGH SCHOOL HOCKEY BOOSTER CLUB . 775.0 10!3112007 4351 RINK LINKS 12/31/2007 4469 STATE OF MINNESOTA ANNUAL LICENSE 8 PERMIT FEES 750.C 4425 C 12/31/2007 4475 MOOSE SHERRITT ICE ARENA ICE BILLS E 11887 12131!2007 4476 MOOSE SHERRITT ICE ARENA ICE BILLS . 11081 ~ 2/29/2008 4564 MOOSE SHERRITT ARENA ICE BILLS -4066 f 2/29/2008 UNSOLD Tax CrediURefund from Form 44370. ` Total of Total of Organization 44370.E ~C-e. ~U c ~ ~~ ~3 i ~ ~~ ~~ ~ ~fl~t` 5~~~~~ ~~~. ~~ ~- S Z ~ ~' 49s$3, Z 0 D r 0 m r O w 00 w Q O O O w w O r W J J J J Al ~ ~ ~ 13 r O O f~ 1~ t3 O ~w°a°~ooo° ~ C C C C C C ~ ~ ~ ~ ~ ~ Z Z Z Z Z Z m m m m m m ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ A A A W W o O o o ? ~ ~ w $ ° ~ ~ m ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ m m co m m m 3 ~ ? 3 D D m o ~, ~, ~ ~ ~ o c c r Tr (n m^ JT~Y TzV , V ? V' V V ~ ' Q ~_ ~. r r r r r r ~~~~~,~ ~~~-~~~ 1 1 1 1 1 1 ®~~~ ~~ ~ 3 < < 0 0 n n m m A Q A A A O N_ O OD .A V CD J N O OV CNJ~ (Jt OOD U1 N !T O O V O Ui O O O (Jt A a 0 0 -F-- v 3~ d m / ---t~ D o ~ Z ~ ~J ' ~ 7 v ~ o. a' °o cG cr. o ~ V ~ r, ~ ~ m ~ ? N A _._.. ~ C7 ~~ r~ A O O r rn ~ v d m 0 n D 0 c ~. m m N Council Agenda: October 27, 2008 5D. Consideration Acceptance of 3~d Quarter Financial Report. (TK) A. REFERENCE AND BACKGROUND: One of the things I have wanted to provide City Council is quarterly financial updates. These updates would inform the Council with comparisons of the City's year-to-date actual data to current year budget and the past year budget and actual amounts and provide some insight as to what the short-term future budget impact will be. It is hoped that these updates will provide the Council some comfort that City finances are being handled properly and help Council make expenditure decisions with some knowledge of the City's financial status. It is also intended as an internal control device which would report wide variations in City finances and help the Council react to budget shortfalls if they occur or limit the chances of fraud through timely reporting. It would be my intention to provide these reports quarterly to the City Council, since they do take some time to prepare under our current system. However if the Council would like the reports and find them useful, they could be done more frequently. In addition, since this is staffs first attempt at providing Council with some type of reporting, any feed back Council can provide staff as to what should be included in future reports or what information is not useful to Council or need clarification would be greatly appreciated. A1. Budget Impact: These quarterly reports should have very little budget impact in the form of staff time to prepare the report. A2. Staff Workload Impact: This report took staff maybe eight to ten hours to prepare. Future reports should take less time to prepare now that the basic format has been constructed and once the new computer software system is in place. B. ALTERNATIVE ACTIONS 1. Accept the 3rd quarter financial status report. 2. Do not accept the 3rd quarter financial status report. C. STAFF RECOMMENDATION: The City staff supports Alternative 1. D. SUPPORTING DATA: 2008 3rd Quarter Financial Status Report. 2008 3rd Quarter Financial Status Report It is hard to believe that three quarters of the year have already past. It was and still is my intention to provide Council with quarterly financial reports, that is how is the City doing financially compare to last year and compared to budget. These quarterly reports are important as many of the auditing standards put in place in 2007 clearly place the financial health of an organization on the governing body due to the prior financial scandals of Enron and the Dot.com industries. Also it is my hope by providing Council with these quarterly financial reports, the Council will be in a better position to make decisions which may or will affect current and future finances of the City. These quarterly reports will be a work in progress and any feed back the Council can provide staff as to what was helpful to see, what was missing or they would like to have in future reports, and what was not useful will be most appreciated. With that introduction as a back drop here is the 2008 3rd Quarter Financial Report for the City. Overall In spite of the economy the City's revenues and expenditures are inline with past revenue and expenditure levels and their budget amounts. The chart below shows each fund type compared to budget for years 2007 and 2008 through the end of the 3rd quarter (September, 30a`). 2007 2007 % 2008 2008 Budget 3rd QTR YTD Received Budget 3rd QTR YTD Received General Fund 6,371,626 3,443,241 54.04% 7,479,449 4,257,625 56.92% Special Revenue Funds 7,972,793 3,816,883 47.87% 6,719,308 4,260,530 63.41% Debt Service Funds 6,023,131 10,844,816 180.05% 5,575,499 29,373,469 526.83% Capital Improvement Funds 0 91,806 100% 0 85,140 100% Enterprise Funds 5,563,515 3,767,099 67.71% 6,029,868 4,326,551 71.75% Total Revenues 25,931,065 21,963,845 84.70% 25,804,124 42,303,315 163.94% 2007 2007 % 2008 2008 Budget 3rd QTR YTD Received Budget 3rd QTR YTD Spent General Fund 6,906,935 4,263,519 61.73% 7,421,909 4,606,570 62.07% Special Revenue Funds 18,554,280 8,209,756 44.25% 7,039,100 4,837,164 68.72% Debt Service Funds 5,888,793 11,287,230 191.67% 5,962,793 32,110,846 538.52% Capital Improvement Funds 0 1,513,536 100% 0 498,909 100% Enterprise Funds 7,561,783 5,674,528 75.04% 7,174,908 6,286,374 87.62% Total Expenditures 38,911,791 30,948,569 79.54% 27,598,710 48,339,863 175.15% The rest of this report will summarize the activity of each fund type, however I think it is important to note that both revenues and expenditures for 2008 are above budget amounts due to the new bond issues which refinance some of the older debt issues at lower interest rates. The refinancing process was started at the end of 2007 and took place in 2008, but was started after the 2008 budget was completed, which is why it's not included in the budget numbers. General Fund The General Fund is doing alright so far this year. The City has collected 56% of its budgeted revenues so far while spending only 62% of its budgeted expenditures. The City still has first and second half State money to collect (Market Value Homestead Credit, which is due in late Oct. and Dec.) and its second half property tax. The City has received 47% of its General Fund property tax levy, which given the housing market and economy is a very good collection rate. The total budget for these two revenue items account for 77% of all General Fund revenues. Building permit revenues has already exceeded their budget amount by $184,206, due to the storm damage earlier this year. The City has distributed investment earning through June, 2008 and the General Fund share of interest earning is $256,520, which is only $34,455 below its budget and the new investment administration charge has add another $47,968 to the General Fund. Over all the General Fund should exceed its 2008 budget for revenues. The table below compares 2007 and 2008 budgets and 3rd quarter revenues for the General Fund. 2007 2007 % 2008 2008 Budget 3rd QTR YTD Received Budget 3rd QTR YTD Received Property Taxes 3,854,555 1,827,661 47.42% 5,743,929 2,842,818 49.49% Licenses & Permits 883,700 555,433 62.85% 592,295 776,505 131.10% Intergovernmental Revenues 264,190 170,712 64.62% 259,790 86,506 33.30% Charges for Services 391,450 734,554 187.65% 469,700 190,049 40.46% Fines & Forfeits 24,000 2,747 11.45% 150 1,331 887.33% Miscellaneous 312,840 71,195 22.76% 367,195 314,026 85.52% Transfers from Other Funds 80,891 80,939 100.06% 46,390 46,390 100.00% Total General Fund Revenues 5,811,626 3,443,241 59.25% 7,479,449 4,257,625 56.92% The difference between the amounts collected for charges for services between 2007 and 2008 is that in 2007 the City co llected $312,067 for project engineering costs. On the expenditure side the City has spent 62% of its budget through September. The table below compares 2007 and 2008 budget to actual expenditures by department. 2007 2007 % 2008 2008 Budget 3rd QTR YTD Received Budget 3rd QTR YTD Spent General Government 1,600,825 1,178,032 73.59% 1,531,524 1,046,801 68.35% Public Safety 1,954,020 1,132,860 57.98% 1,960,553 1,182,157 60.30% Public Works 2,568,230 1,677,186 65.31% 2,685,593 1,608,076 59.88% Miscellaneous 404,785 232,494 57.44% 384,665 270,746 70.38% Parks 830,605 371, 739 44.76% 816,113 458, 368 56.16% Economic Development 79,070 42,946 54.31 % 43,461 40,422 93.01 Total General Fd Expenditures 7,437,535 4,635,257 62.32% 7,421,909 4,606,570 62.07% General Fund has spent 62.07% of their budget, which is similar to the expenditure levels of 2007. While having spent only 62% of the budget when we are 75% of the way through the year may look good, some of it is due to large capital expenditures which have not been made yet and the election cost which will take place in November. The general government department is below budget amounts and should end the year below budget due the Human Resource Manager Position. This was budgeted as a full- time position for the entire year and since it's apart-time position hired for less than 6 months it will be under budget. The budget also included an administrative position for community development which has not been filled. Election is currently only 30% spent, but has the November election just around the corner and the payroll for election judges who worked the primary have not been record as of September 30th One area of concern in the general government department is the budget for legal activities, which is already 99% spent. This activity will surely be over spent at year-end, but it should be offset by the other activities spending less than their budgeted amounts. The public safety department is 60%, but this is largely due to the $125,000 budgeted for the new fire truck, which is to be purchases next year. The funds will be designated for this purpose at year-end, but will make this activity appear below its budget for 2008 and above its budget in 2009. Also the once a year payment to the fire relief association will be made in October. The building inspections activity is under budget in spite of hiring the temporary inspectors. This is due in part to the City budgeting $15,000 for temporary help, however they have already exceeded there budget amounts for overtime, motor fuels, and travel expenses. They also have $28,500 budgeted for vehicle replacement that will be purchased in future years and not spent in 2008. The public works department has spent 60% of their budget so far. Reasons for this include expenditures for engineering services have only been paid for services through part of July. In the inspections activity it appears full-time salaries have been over budgeted, as they are only 55% spent for the year, so this activity should finish the year below budget. The streets and alleys expenditures are 47% spent so far, but this activity still has $432,650 of heavy machinery (street sweeper) to purchase and street improvements (transfer to the capital improvement funds for its share of street reconstruction costs) which should be made prior to year-end. The ice and snow budget is already over budget due to the purchase of sand and salt for the upcoming snow season and the purchase of a plow truck of which some of the funds were budgeted in previous years and reserved. Very little has been spent of the $15,500 budgeted for parking lots, so this activity appears it will finish the year below budget as will the refuse collection activity. The budget for the miscellaneous department appears to be on target to finish the year a little below budget. The City has yet to pay the MCC for the room rentals for the Senior Center, or their contribution to Community Ed. The contribution to the ice area has been made, as have the insurance payments, which are $37,945 under budget due to increased deductibles. The parks department is below budget due to capital expenditures which are yet to be made either this year or in the future. Finally, the economic development department will exceed its budget since it is already 93% spent. This is due to the additional cost of unbudgeted severance costs from the change in the economic development staff. In summary I believe the General Fund revenues will exceed the budget and that expenditures will be below or near budgeted amounts. This will result in revenues exceeding expenditures for the year. Special Revenue Funds Special Revenue Funds are funds which the uses of their revenues are restricted for specific purposes by a governing body. The City currently operates 14 special revenue funds, each with their own budgets. Funds such as the Library, Shade Tree, Street Reconstruction and Community Center all depend on a property tax levy to support their activities. Below is the chart comparing each Special Revenue Fund's budget to actual through September 30tH Budget to Actuals - Revenues 2, 500, 000 2, 000, 000 1,500, 000 1, 000, 000 500,000 0 ~a ca ca ~a ~a ~a ~a ~a ca ~a ~a a a a ~~ ~~ ~~~ ~~ `~~ ~ ~ `~~ ~~ ~~ ~~ ~~~ ~J~ ~J~ ~~~ 5 0, ~ G cP ° ~ v cf' cf' 5 °` O c,° ~'~ t°l ~~ c1 ~ Qa GaQ ~~S 5 ^ Budget ^ 3rd QTR YTD The total revenue budget for all Special Revenue Funds is $6,719,308 and the City has collected 63.4% of these so far. However, those funds which collect property taxes or tax increments have only received their first half tax settlement, with the balance to be received in December. For that reason the Library Fund has collected only 48% of revenues, Street Reconstruction Fund 68%, EDA Fund 53%, Shade Tree 71%, OAA Fund 36%, and Community Center 61 %. Once they receive their second half taxes they should be near budgeted amounts. The City's three access funds, which in part depend on new developments, are actually stronger than I thought they would be. The Sanitary Sewer Access Fund has collected 80% of their budget including over $71,000 in basic access fees, $166,000 in new WWTP fees and the assessment collection is slightly above 50% collected for the year even with only the first half tax settlement collected. The Storm Water Access Fund is also 54% collected mainly from special assessment collections. The Water Access Fund has only collected 35% of their budgeted revenues due to only collecting 7% of the water trunk charges on new facilities. On the Expenditure side all fund have spent less than 73% of their budgeted expenditures except for the Access Fund, which have transferred to the Debt Service Funds for their share of the 2008 debt payments, so they are 100% spent. The majority of the Special Revenue Funds expenditures should finish the year at budgeted amounts, with possible exceptions in the Street Reconstruction Fund (0% spent), Capital Projects Revolving Fund (no budget), and Street Light Improvement Fund (0% spent) which because of the construction projects being funded this year should be below budget. The chart below shows the Special Revenue Funds budget to expenditures. Budget to Actuals -Expenditures 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 v~O~~~JC~ S'~oc~JCA c~ X08 5`m0~ ~o Ica ~~~`~~ ~c`~J~ ~ Ica ~ ~~cp m°~c~~ o ~~cA ° Ica m°`~J~ Q' ~~` aa0 ~ o~ ~ p~ PP ?~~~ GP,~ ~~ J~ ~~c ~ ~~~ ~~ ~.h `~~c 9~ ~ G \Qrp'~ '~ ~ ~~.~ .~c1 ~tl' GaQ ~,de~ ~0 y,~3t' y~~ ~~ca ~~ ~~~ ~P~~ ~~ ~a~ `ate 5 ^ Budget ^ 3rd QTR YTD Debt Service Funds The City has made its debt payment for the year, so expenditures would normally be complete for the year. However, in December the City will redeem the 1999 and 2000B improvement bonds, so there will still be some expenditure activity for the year. On the revenue side most of the transfers of City funds for the City share of debt payment have been made and the first half special assessments have been collected. Second half special assessments will be received in December and these funds still have their 3`d and 4th quarter interest earnings to be received. Overall the City has outstanding debt of $49,209,293 as of 9/30/08 and will have $48,039,293 at year-end. Both of these numbers are a little high for a City of our size, but it has a lot to due with the financing of the interchange project, which still has bonds outstanding of $22,710,000 as of 12/31/08. I say this because the common tool for comparing debt from one City to another is debt per capita and I often see these ranging from $700 to $1,500, but if we used a population of 12,000 for Monticello, our debt per capita would be over $4,000. But again you can point to the interchange, waste water treatment plant and community center projects as good reasons to be high and does not mean the City is in bad financial health. This does not include the bonds issued and held in escrow for the City's fiber project. Capital Project Funds In the past and in 2008 the City did not budget revenues or expenditures for the City's capital projects, thus there is nothing to compare these with. However most of these activities take place in the summer months due to Minnesota weather. Project sizes affect both costs and revenues from one year to the next so comparing them to past revenue and expenditures also is not a good gage. So far the Capital Project Funds have revenues of $85,140, which is interest earnings and they have spent $498,909 on the various projects. These funds depending on the timing of revenue sources and their expenditures will or can have periods such as this when expenditure exceed revenue by large amounts or if a large funding source (for example, bond proceeds) is received revenue will exceed expenditures. So this is nothing to be concerned with. Enterprise Funds The City has five Enterprise Funds that it operates. These are operations that the City runs like a business activity. The Water and Sewer Funds through September have billed and recorded revenues for the first two quarters of the year and will bill for the third quarter in October. The Liquor and Cemetery Funds receive their revenues on a pretty consistent basis throughout the year, with December for the Liquor Fund being its busiest period. Finally the FiberNet Monticello Fund is still in the start up phases and no revenue to really speak of as of yet. On the next page is the table of budget to actual for the Enterprise Fund revenues for the past two years: 2007 2007 % 2008 2008 Budget 3rd QTR YTD Received Budget 3rd QTR YTD Received Water Fund 749,385 412,060 54.99% 932,558 513,896 55.11% Sewer Fund 1,139,690 583,684 51.21% 1,395,140 754,525 54.08% Liquor Fund 3,638,865 2,752,636 75.65% 3,665,570 3,035,329 82.81 Cemetery Fund 35,575 18,720 52.62% 36,600 22,311 60.96% FiberNet Monticello Fund 0 0 0.00% 0 489 100.00% Total 5,563,515 3,767,100 67.71% 6,029,868 4,326,550 71.75% As you can see revenue for 2008 compared to budget are very similar to 2 007 figures as far a percentage received to date. On the expenditure side there are no big surprises either. The Sewer Fund is over 82% spent due to the construction cost of the storage garage and the mixer, but it should finish the year at or slightly above budget because of those costs, which were included in the 2007 bond issue. The FiberNet Monticello Fund was not included in the City's 2008 budget, but has spent $790,097 through September. The other funds are below anticipated levels and should finish the year below or very close to budgeted expenses as you can see from the table below: 2007 2007 % 2008 2008 Budget 3rd QTR YTD Received Budget 3rd QTR YTD Spent Water Fund 1,517,815 950,913 62.65% 1,195,843 713,209 59.64% Sewer Fund 2,355,115 1,873,736 79.56% 2,249,437 1,857,631 82.58% Liquor Fund 3,653,293 2,817,969 77.14% 3,694,016 2,906,799 78.69% Cemetery Fund 35,560 31,911 89.74% 35,612 18,638 52.34% FiberNet Monticello Fund 0 0 0.00% 0 790,097 100.00% Total 7,561,783 5,674,529 75.04% 7,174,908 6,286,374 87.62% Both the Water and Sewer Funds appear to be on pace to spend more than the revenues they take in, but again the revenue collection is only for half the year compared to expenditures for 3 quarters of the year. Once all the revenues are recorded for the year these funds should have revenues exceeding their operating expenses, however revenues will not fully offset expenses for asset depreciation. Also if the FiberNet Monticello bond proceeds become available the City will have revenues to reimburse itself for the costs of FiberNet Monticello. Investments Finally, the City's investment activity has been relatively minor. As of September 30tH the City had $34,047,572 invested at an average interest rate of 4.45% and an average yield of 4.58%. This compares to $33,969,126 at an average interest rate of 4.50% and average yield of 4.60% at the end of June. The City has not lost any of its investments due to the troubles of the financial markets. All of the City's CD's are covered by FDIC and should not be at risk. The breakdown of the investments is on the following page: Investments by Type FHL FHLMC Money Markets CD's ,,,, ,,,,,,,, rorn~ri~iiiiiu /l//l/!Al/l/lll/l/l! f/f/f//ll/l/l/l/f/l ////////!!l/lllll! /l/l/f///!//A// FFCB ~~~ FNMA FHL =Federal Home Loan; Money Markets =Government Security Money Market Funds; CD's = Certificate of Deposits; FNMA =Federal National Mortgage Association; FFCB =Federal Farm Credit Bank; FHLMC =Federal Home Loan Mortgage Corporation. All of these investments meet State and City investment requirements and while some of they have been in the news as part of the national financial crisis, there is little to no risk of loss of investment for the City. Attached are the investment holdings of the City as of September 30th Conclusion Looking at the revenues the City has already received and the revenues still to be collected, I feel revenues overall should exceed budget amounts and should exceed expenditures. 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C C C I ~ ~~ ~j~ ~ UU U',U UU l mm ~ mim Zm i ~ ~ ~~~ l ~ ~ N ~ O•'O M O ~ ~}' e-' MaM ~ M (D ~ I~ ~!~ O O N O O ~ O ~ W i O O Oj 0 0 0~ ap ~ NO N N O Mi '~,, 00 ~ f~ f~ O CO '~~ 00 O ~.O of O a0 O V O. ~ O O ~.. N O O N I •- r- M M ttt~ ~ O O ~ ~ N N N N M M ', m N ~ ~ O ~ ~ N M ~ ~ ~ Council Agenda: 10/27/08 SE. Consideration of calling for a Public Hearins to vacate a portion of Territorial Road, City Proiect No. 2005-21C. (WSB) A. REFERENCE AND BACKGROUND: With the completion of the new alignment of Territorial Road through the Busch property, the old Territorial Road alignment that crossed the railroad tracks from Washington Street can be vacated, as shown on the enclosed drawing. The segment proposed to be vacated extends from Washington Street to the southerly right of way line of the railroad tracks. The portion of Territorial Road from the southerly right of way line of the railroad tracks extending south to the Jameson and Busch properties was vacated in 2004. With the new alignment of Territorial Road, there is not a need to maintain the roadway for grading and snow plowing purposes. Drainage and utility easements would be retained as there are existing culverts that cross the road right of way. Public Works has removed the barricades where the old Territorial Road crossed the railroad tracks and constructed berms with lilac hedges to create a more aesthetic barrier on either side of the old crossing. If Council calls for a public hearing, the public hearing would be held on November 10, 2008. B. ALTERNATIVE ACTIONS: 1. Motion to call for Public Hearing on November 10, 2008 to vacation a portion of Territorial Road. C. STAFF RECOMMENDATION: Staff recommends Alternative Action No. 1. D. SUPPORTING DATA: Vacation Parcel Sketch Legal Description J.~ iBrvicelCiry ojMonficellolCouarils & CommissionslCiry Caunci/4lgenda /temsl/427-08WGN/TM-Call Public Heanrtg TemrorialRD Yacadon IOS708 BR Wrevdoc Prepared by: - TOt xarir AvarNr Sou°~, Suie gOp ~~~ ~~~~~ marwao-r.eaW~.nm Territorial Road Vacation Parcel Sketch for the City of Monticello, Minnesota ~~. 2oo~zlc VYSB Project No. 01627-16 :~: t oar:lonaros Exhibit A VACATION DESCRIPTION OF THAT PART OF OLD TERRITORIAL ROAD LYING NORTHERLY OF THE SOUTHERLY LINE OF THE BURLINGTON NORTHERN RAILROAD RIGHT OF WAY That portion of a 66.00 foot easement for public right of way purposes over, under and across the following described property: The Southwest Quarter of Section 12, Township 121 Range 25, Wright County, Minnesota, lying northerly of the southerly line of the Burlington Northern Railroad right of way, the centerline of said easement is described as follows: Commencing at the southwest corner of said Southwest Quarter of the Southwest Quarter; thence on an assumed bearing of North 1 degree 24 minutes 50 seconds East along the west line of said Southwest Quarter of the Southwest Quarter, a distance of 534.50 feet; thence South 88 degrees 35 minutes 10 seconds East, a distance of 318.00 feet; thence North 12 degrees 24 minutes 50 seconds East, a distance of 292.79 feet to the south line of Old Territorial Road being the point of beginning of said centerline to be described; thence North 13 degrees 57 minutes 39 seconds West, a distance of 324.74 feet; thence North 33 degrees 35 minutes 51 seconds West to the southeasterly right of way line of Washington Street of said Lower Monticello and said center line there terminating. The side lines of said easement are to be prolonged or shortened to the terminate on said southerly line of the Burlington Northern Railroad right of way and said southeasterly right of way line of Washington Street. The City of Monticello reserves, unto itself, a permanent easement for drainage and utility purposes, over, across, under and through that part of the vacated Territorial Road, as described above, situate in the City of Monticello, County of Wright, State of Minnesota, to wit: C:\Documents and Settings\bnice.westby\Local Settings\Temporary Internet Files\OLKI\That poRion of a 66' vacation.doc Council Agenda: October 27, 2008 5F. Consideration of Identity Theft Prevention Program. (TK) A. REFERENCE AND BACKGROUND: The Federal Trade Commission passed the Fair and Accurate Credit Transaction Act (FACTA), which is to help curb identity theft in the U. S. The way the Act was approved it applies to all utilities as "creditors", Identity Theft in relation to utility accounts involves obtaining the benefit of utility service using someone else's identifying information. Under the Act the City must develop an "Identity Theft Prevention Program" which is attached, by November 1, 2008. The program was developed using a template provided by the Minnesota Municipal Utilities Association. The draft program was reviewed by the Privacy Committee, as required by the Act, which consisted of the City Finance Director (Program Administrator), the City's Utility Billing Clerk and the Water and Sewer Superintendent. The Act does not require the City to change any of its procedures, but to document them. In addition the Act does not require any monitoring or reporting. The draft is from the template, with the City procedures listed on page 4 under detecting red flags. The rest of it is the legal requirements and directly take from the template. The draft program does not change any of the City processes, but meeting the requirements of the Act. A1. Budget Impact: The approval of the Identity Theft Prevention Program will have no impact on the City budget, because the City is not changing any procedures, but just documenting current procedures.. A2. Staff Workload Impact: There are no staff impacts for the same reasons as there were no budget impacts.. B. ALTERNATIVE ACTIONS 1. Approve the City of Monticello's Identity Theft Prevention Program. 2. Do approve the Identity Theft Prevention Program. C. STAFF RECOMMENDATION: The City staff supports Alternative 1. D. SUPPORTING DATA: Identity Theft Prevention Program for the City of Monticello. City of Monticello Identity Theft Prevention Program Effective beginning November 1, 2008 I. PROGRAM ADOPTION The City of Monticello Utility System ("Utility") developed this Identity Theft Prevention Program ("Program") pursuant to the Federal Trade Commission's Red Flags Rule ("Rule"), which implements Section 114 of the Fair and Accurate Credit Transactions Act of 2003. 16 C. F. R. § 681.2. This Program was developed with oversight and approval of the Program Administrator (defined below). After consideration of the size and complexity of the Utility's operations and account systems, and the nature and scope of the Utility's activities, the City Council determined that this Program was appropriate for the City of Monticello's utility system, and therefore approved this Program on October 27, 2008. II. PROGRAM PURPOSE AND DEFINITIONS A. Fulfilling requirements of the Red Flags Rule Under the Red Flag Rule, every financial institution and creditor is required to establish an "Identity Theft Prevention Program" tailored to its size, complexity and the nature of its operation. Each program must contain reasonable policies and procedures to: 1. Identify relevant Red Flags for new and existing covered accounts and incorporate those Red Flags into the Program; 2. Detect Red Flags that have been incorporated into the Program; 3. Respond appropriately to any Red Flags that are detected to prevent and mitigate Identity Theft; and 4. Ensure the Program is updated periodically, to reflect changes in risks to customers or to the safety and soundness of the creditor from Identity Theft. B. Red Flags Rule defmitions used in this Program The Red Flags Rule defines "Identity Theft" as "fraud committed using the identifying information of another person" and a "Red Flag" as "a pattern, practice, or specific activity that indicates the possible existence of Identity Theft." According to the Rule, a municipal utility is a creditor subject to the Rule requirements. The Rule defines creditors "to include finance companies, automobile dealers, mortgage brokers, utility companies, and telecommunications companies. Where non-profit and government entities defer payment for goods or services, they, too, are to be considered creditors." All the Utility's accounts that are individual utility service accounts held by customers of the utility whether residential, commercial or industrial are covered by the Rule. Under the Rule, a "covered account" is: Any account the Utility offers or maintains primarily for personal, family or household purposes, that involves multiple payments or transactions; and 2 2. Any other account the Utility offers or maintains for which there is a reasonably foreseeable risk to customers or to the safety and soundness of the Utility from Identity Theft. "Identifying information" is defined under the Rule as "any name or number that maybe used, alone or in conjunction with any other information, to identify a specific person," including: name, address, telephone number, social security number, date of birth, government issued driver's license or identification number, alien registration number, government passport number, employer or taxpayer identification number, unique electronic identification number, computer's Internet Protocol address, or routing code. III. IDENTIFICATION OF RED FLAGS. In order to identify relevant Red Flags, the Utility considers the types of accounts that it offers and maintains, the methods it provides to open its accounts, the methods it provides to access its accounts, and its previous experiences with Identity Theft. The Utility identifies the following red flags, in each of the listed categories: A. Suspicious Account Activity or Unusual Use of Account Red Flays 1. Change of address for an account followed by a request to change the account holder's name; 2. Payments stop on an otherwise consistently up-to-date account; 3. Account used in a way that is not consistent with prior use (example: very high activity); 4. Mail sent to the account holder is repeatedly returned as undeliverable; 5. Notice to the Utility that a customer is not receiving mail sent by the Utility; 6. Notice to the Utility that an account has unauthorized activity; 7. Breach in the Utility's computer system security; and 8. Unauthorized access to or use of customer account information. B. Alerts from Others Red Flag 1. Notice to the Utility from a customer, identity theft victim, law enforcement or other person that it has opened or is maintaining a fraudulent account for a person engaged in Identity Theft. 3 IV. DETECTING RED FLAGS. A. New Accounts In order to detect any of the Red Flags identified above associated with the opening of a new account, Utility personnel will take the following steps to obtain and verify the identity of the person opening the account: Detect 1. Require certain identifying information such as name, residential or business address, principal place of business for an entity, mailing address, contact phone number, number of individuals in household, and the effective date to begin service; 2. Verify the validity of the property address. B. Existing Accounts In order to detect any of the Red Flags identified above for an existing account, Utility personnel will take the following steps to monitor transactions with an account: Detect 1. Require certain identifying information such as name, residential or business address, principal place of business for an entity, mailing address, contact phone number, number of individuals in household, and the effective date to begin or end service; 2. Verify the validity of requests to change billing addresses. V. PREVENTING AND MITIGATING IDENTITY THEFT In the event Utility personnel detect any identified Red Flags, such personnel shall take one or more of the following steps, depending on the degree of risk posed by the Red Flag: Prevent and Mitigate 1. Change any passwords or other security devices that permit access to accounts; 2. Not open a new account; 3. Close an existing account; 4. Reopen an account with a new number; 5. Notify the Program Administrator for determination of the appropriate step(s) to take; 6. Notify law enforcement; or 7. Determine that no response is warranted under the particular circumstances. 4 Protect customer identifyin~ information In order to further prevent the likelihood of Identity Theft occurring with respect to Utility accounts, the Utility will take the following steps with respect to its internal operating procedures to protect customer identifying information: 1. Ensure that its website is secure or provide clear notice that the website is not secure; 2. Ensure complete and secure destruction of paper documents and computer files containing customer information; 3. Ensure that office computers are password protected and that computer screens lock after a set period of time; 4. Keep offices clear of papers containing customer information; 5. Ensure computer virus protection is up to date; and 6. Require and keep only the kinds of customer information that are necessary for utility purposes. VI. PROGRAM UPDATES The Program Administrator will periodically review and update this Program to reflect changes in risks to customers and the soundness of the Utility from Identity Theft. In doing so, the Program Administrator will consider the Utility's experiences with Identity Theft situations, changes in Identity Theft methods, changes in Identity Theft detection and prevention methods, and changes in the Utility's business arrangements with other entities. After considering these factors, the Program Administrator will determine whether changes to the Program, including the listing of Red Flags, are warranted. If warranted, the Program Administrator will update the Program or present the City Council with his or her recommended changes and the City Council will make a determination of whether to accept, modify or reject those changes to the Program. VII. PROGRAM ADMINISTRATION. A. Oversight Responsibility for developing, implementing and updating this Program lies with an Identity Theft Committee for the Utility. The Committee is headed by a Program Administrator who may be the head of the Utility or his or her appointee. Two or more other individuals appointed by the head of the Utility or the Program Administrator comprise the remainder of the committee membership. The Program Administrator will be responsible for the Program administration, for ensuring appropriate training of Utility staff on the Program, for reviewing any staff reports regarding the detection of Red Flags and the steps for preventing and mitigating Identity Theft, determining which steps of prevention and mitigation should be taken in particular circumstances and considering periodic changes to the Program. B. Staff Training and Reports Utility staff responsible for implementing the Program shall be trained either by or under the direction of the Program Administrator in the detection of Red Flags, and the responsive steps to be taken when a Red Flag is detected. C. Service Provider Arrangements In the event the Utility engages a service provider to perform an activity in connection with one or more accounts, the Utility will take the following steps to ensure the service provider performs its activity in accordance with reasonable policies and procedures designed to detect, prevent, and mitigate the risk of Identity Theft. 1. Require, by contract, that service providers have such policies and procedures in place; and 2. Require, by contract, that service providers review the Utility's Program and report any Red Flags to the Program Administrator. D. Non-disclosure of Specific Practices For the effectiveness of this Identity Theft Prevention Program, knowledge about specific Red Flag identification, detection, mitigation and prevention practices must be limited to the Identity Theft Committee who developed this Program and to those employees with a need to know them. Any documents that may have been produced or are produced in order to develop or implement this program that list or describe such specific practices and the information those documents contain are considered "security information" as defined in Minnesota Statutes Section 13.37 and are unavailable to the public because disclosure of them would be likely to substantially jeopardized the security of information against improper use, that use being to circumvent the Utility's Identity Theft prevention efforts in order to facilitate the commission of Identity Theft. 6 City Council Agenda - 10/27/0'S SG. Consideration to review and respond to a request to waive ordinance requirements regulating Public Nuisances. (AS) A. REFERENCE AND BACKGROUND In response to the large number of grass and weed complaints registered through the Citizen Service Desk, Community Development and the Building Department have made it a priority to complete a comprehensive sweep for grass and weeds compliance within all developing neighborhoods this fall. The goal of this effort is to protect the investments property owners -residents -have made in their neighborhoods and to respond in a coordinated way to the numerous blight concerns sent by residents. The fall sweep also eliminated the random approach previously taken by responding to each blight complaint individually. Examples of blight concerns are attached for Council's reference, along with a chart illustrating the volume of requests for service on this issue. In completing the fall sweep, a City Building Inspector completed a grass and weeds visual inspection of every lot in the following developments: • Autumn Ridge • Carlisle Village • Featherstone • Hillside Farm • Hunters Crossing • Spirit Hills • Sunset Ponds • Timber Ridge As a result of the inspections, a tremendous volume of blight notices were issued. For Sunset Ponds alone, over 100 violation notices were issued. In issuing notifications, the Building Department must send a notice for each property in violation directly to the property owner. In the majority of cases for these developments, the blight notifications were sent directly to the original property developer, as they are still the property owner. An example copy of the letter sent with the large batches of notices is attached for reference. The Public Nuisance ordinance for grass and weeds requires that property owners maintain their turf to a height of 6" or less, and that noxious weeds be eliminated. Property owners are also required to mow any property within 100' of another residential property and within the boulevard. The letters sent to developers apprised them of this requirement. City Council Agenda - 10/27/0' To follow-up on the original violation notice, re-inspections are completed on all properties 10 days after the initial notification is sent. If the grass and weed complaint has not been addressed, the City then contracts mowing per ordinance standards. The cost for the service is billed through Finance. If the bill goes unpaid, it is then certified as an assessment. After receiving the initial blight notifications, the developers of Hunters Crossing sent a request asking the Council to waive the ordinance requirements for grass and weeds. They state that mowing twice per year should be sufficient. As the Building Department has completed re-inspections for all of the above projects and is ready to contract mowing service, Community Development is seeking Council's decision on this matter as a whole, rather than take Hunters Crossing as a single request. If Council is willing to consider the factors noted in the Hunters Crossing request and waive the developer's responsibility to comply with the ordinance, then Council may want to consider waiving the mowing requirement for the entire list of the developments in non-compliance. It should be noted that in their request, the developers of Hunters Crossing also requested that the City consider reduction of fees and other incentive programs to address the challenges of the housing industry in the recessionary economy. Council maybe aware that staff and other City commissions have already begun working on programs in this regard. For example, the City is looking into offering mowing service on a similar contract rate to developers next spring, establishing a regular mowing and payment schedule. The EDA is currently working through programs and resources for first-time home- buyer and foreclosure property fix-up programs. Additionally, the City Administrator has asked representatives from the Finance, Engineering, Building, Economic and Community Development Departments to hold a staff workshop in December with the goal of develop pro-active opportunities and programs for residents and the development community in response to the changing marketplace. These programs would be brought to the Council and other commissions for review and input. In short, staff is looking at both short and long-term solutions to aid and encourage re-occupation of existing homes and construction of homes on existing platted residential lots. B. ALTERNATIVE ACTIONS 1. Motion to waive the ordinance requirements regulating compliance with Section 1 of Chapter 7-1 of the Public Nuisance Ordinance for a period ending May 1, 2008, based on a finding that the requirement places undue economic hardship on property owners. 2. Motion to waive the ordinance requirements regulating compliance with Section 1 of Chapter 7-1 of the Public Nuisance Ordinance for Hunters Crossing, LLC for a period ending May 1, 2008, based on a finding that the requirement places undue economic hardship on property owners. City Council Agenda - 10/27/Oa 3. Motion to deny waiver of ordinance requirements regulating compliance with Section 1 of Chapter 7-1 of the Public Nuisance Ordinance, based on a finding that the ordinance provides for a consistent method of maintaining vacant properties and serves the public purpose. 4. Motion of other. C. STAFF RECOMMENDATION Although a specific request has come forward, this is a policy decision for the City Council considering the impact the decision may have on application of the ordinance for other violations. In making a decision, Council will want to consider ramifications of this decision in relationship to individual property owners. In short, should the requirement only be waived for property owners with a large volume of lots (developers of the projects noted above), or should the waiver extend to all property owners who received a notice during the fall sweep. Council will also need to weigh the factors noted by the developers of Hunters Crossing against the large number of concerns expressed by residents in regard to this particular blight issue. Due to the volume of requests for action on this item, staff would recommend that all property owners be required to comply with the ordinance. It would be difficult to explain to individual property owners why they would need to comply if others are not held to the same standard. However, staff is and will continue to look for cooperative methods of dealing with development-wide mowing efforts. It is important to note that the developers cited the lack of mowing at the future Hunters Crossing Park. Council noted in budget discussion that mowing may be an area to cut back. Again, this is another item Council will want to consider in terms of requiring compliance for private property owners versus public property. D. SUPPORTING DATA A. Public Nuisance Ordinance B. Public Nuisance Notification Cover Letter C. Citizen Service Desk Statistical Information D. Citizen Service Desk Concerns (Sampling Only) E. Hunters Crossing Waiver Request Materials permitted and approved for exterior storage shall be neatly stacked. (b) Trash and debris. (i) All household garbage, offal, dead animals, animal and human waste, and waste materials. (ii) Accumulations of litter, glass, scrap materials (such as wood, metal, paper, and plastics), junk, combustible materials, stagnant water, plastic bags or trash. (iii) Accumulations of clothing and any other items not designed for outdoor storage. (c) Non-trash items. (i) Accumulations of wood pallets. (ii) Accumulations of vehicle parts or tires. (iii} All construction and building materials unless such materials are being used at the time in the construction of a building, in which case such construction must be permitted and on a continuous uninterrupted basis. (iv) All appliance or appliance parts. (v} All indoor or upholstered furniture of a type of material which is deteriorated by exposure to outdoor elements. (vi) All other non-trash items which: (1) Are of a type or quantity inconsistent with the • normal and usual use; or (2) Are of a type or quantity inconsistent with then intended use of the property; or (3) Are likely to obstruct or impede the necessary passage of fire or other emergency personnel. (d) Fertilizer and burial of waste. No person shall leave, deposit, or cause to be placed on any private ground any garbage. Sewage, waste, debris, carcass, or other substance or matter which is offensive or unhealthy by decomposition unless the same be buried at least three {3) feet under the surface of the ground; provided, that the use of manure and phosphorous fee fertilizer in the normal course for agriculture or horticulture is permitted. (#458, 3/12/07} (B) A public nuisance is a crime against the order and economy of the state and consists of unlawfully doing an act or omitting to perform a duty which an act or omission shall: MONTICELLO CITY ORDINANCE TITLE VIUChapt 1/Page 2 1. Annoy, injure, or endanger the safety, health, comfort, or repose of any considerable number of persons. 2. Offend public decency. Unlawfully interfere with, obstruct or tend to obstruct, or render dangerous for passage a lake, navigable river, bay, stream canal or basin, or a public park, square, stree#, alley, or highway; or 4. In any way render a considerable number of persons insecure in life or the use of property and as such, nuisances are hereby prohibited. (C) In any area the existence of any noxious or poisonous vegetation such as poison ragweed or other poisonous plants, or any weed, grass, brush, or plants which are a fire hazard or otherwise detrimental to the health or appearance of the neighborhood. (D) In any area within 100 feet of the nearest building, the existence of weeds or grass in excess of six (G} inches in height or any accumulation of dead weeds, grass, or brush. (E} In any area on an occupied lot the existence of weeds or grass in excess of six (~ inches in height ox any accumulation of dead weeds, grass, or brush. (F) No person shall hereafter engage within the city in any trade or employment which is hurtful to the inhabitants or dangerous to the public health, or • injurious to neighboring property, or from which obnoxious odors arise, or undue noise emanates, and specifically no person shall operate a dump or garbage dumping area or rendering plant or trailer court except such specific activity be authorized by the issuance of a permit as hereinafter provided. (G} It is unlawful for any person to cause or permit garbage, tin cans, or refuse to be thrown or scattered upon any street, alley, highway, parkway, boulevard, or real estate. (II) All detached structures not requiring a building permit that do not conform to the following requirements shall be deemed a public nuisance. 1. All such detached structures shall be constructed of uniform building grade material. 2. All sides, roof, and floor shall be securely fastened to the interior frame of said detached structure. 3. All surfaces of such detached structures shall be stained, sealed, or painted. MONTICELLO CITY ORDINANCE TITLE VIUChapt 1/Page 3 4. Exterior metal surfaces shall be treated with materials designed to resist corrosion. S. Structures that do not have slab floors shall have a rodent barrier that extends 8 inches under the surface of the ground along the perimeter of the outside wall of the structure. 6. All such detached structures shall be permanently anchored to the ground. 7. Storage sheds erected after the adoption of the zoning ordinance shall meet district setback requirements. 8. Detached structures shall be erected in the side or rear yard of any residence. (#178, 07/10/89) (#185, 04/09/90) 7-1-2: EXCEPTIONS: The provisions of this chapter do not apply to the hauling or accumulation or spreading of manure for the purposes of agriculture, nor to the natural and usual accumulation of rubbish from one residence on the owner's own premises, provided the public health is not adversely affected thereby. (#109, 11!23/81) 7-1-3: PUBLIC NUISANCE: (A) Misdemeanors. Whoever commits any of the following acts is guilty of a misdemeanor and upon conviction shall be punished not more than the maximum penalty for a misdemeanor as prescribed by state law: (#358, I/8/O1) 1. Consumption of intoxicating liquor ornon-intoxicating liquor in public or in other places prohibited by law except as provided bylaw. 2. Strewing, scattering, littering, throwing, ox disposing of any garbage or refuse onto any premises except into receptacles provided for such purposes. 3. Marking with ink, paint, chalk, or other substance, or posting handbills on, or in any other manner defacing or injuring any public or private building or place within the city, or marking, defacing, or injuring fences, trees, lawns, ar fixtures appurtenant to or located on the site of such buildings, or posting handbills on such fences, trees, or fixtures, or place a sign anywhere on any such site except as permitted by the owner thereof MONTICELLO CITY ORDINANCE TITLE VIUChapt 1/Page 4 4. Lingering about the doorway of any building, or sitting or lingering upon the steps, window sills, railing, fence, or parking area adjacent to any building in such a manner as to obstruct or partially obstruct ingress to or egress from such building or in such a manner to annoy the owner ar occupant. 5. Obstructing pedestrian or vehicular traffic or otherwise causing an obstruction or interference with premises or rendering any premise dangerous for passage except in cases of emergency. 6. Failing or refusing to vacate or leave any premises after being requested or ordered, either orally, in writing, or by pasted sign, to do so by the owner, agent, manager, or person in charge thereof, or by any law enforcement agent or official, and also the return at any time thereafter to any such premises after having been so requested or ordered to vacate or Leave such premises. {B) Petty Misdemeanors. Whoever commits any of the following acts is guilty of a petty misdemeanor and upon conviction shall be punished not more than the maximum penalty as prescribed by state law: (#358, 1/8/O1) Races the motor of any motor vehicle so as to cause unnecessary and unreasonable noise; 2. Causes, produces, or creates any unnecessary and unreasonable noise by shouting, mechanical means, the blowing of motor vehicle horns, or any other similar noise. 3. Improper or annoying use of spot lights onto persons or premises. 4. Using profane, abusive, indecent, or threatening language in public. 5. Occupies a standing motor vehicle in an area generally reserved for parking or occupies a standing motor vehicle while the vehicle is double parked. (C) Premises. For purposes of this section, premises shall include any yard, lot, parcel, sidewalk, boulevard, street, highway, alley, park, playground, restaurant, cafe, church, school, any car or other motor vehicle, parking lot, drive-in, building used for business, commercial, or industrial purposes, washroom or lavatory, apartment hallway or other location whether public or private in the City of Monticello. (#166, 10/11/88} 7-1-4: ENFORCEMENT: MONTICELLO CITY ORDINANCE TITLE VIUChapt 1/Page 5 (A} Any person owning and/or occupying property within the city where activities described in subsections 7-1-1 (C), (D), and (E) are in violation of this ordinance shall be so notified in writing by the City of the violation by certified mail and given seven (7) days to either correct the violation or appeal to the City Council for a determination that the complained of activity does not violate ordinance. An appeal to the City Council is perfected within the seven (7) day period if the person in violation files with the City Administrator a written request to be placed on the next City Council agenda for purposes of the Council hearing the appeal. No further action shall then be taken by the City until such time as the City Council shall determine that a violation does exist. Any party aggrieved by a decision hereunder by the City Council may appeal the decision to the District Court, Wright County, Minnesota, within thirty {309) days of the Council's decision. If after seven (7) days of the notice of violation the person in violation of this ordinance fails to correct the violation ar appeal to the City Council, the City shall either: 1. petition the District Court for civil relief from the violation; or 2. remove and dispose of the material creating the violation and assess the cost of clean up, removal, and disposal against the property where such activity in violation of this ordinance occurred. For purposes of 7-1-1 (C), (D), and {E}, the City need only provide the person in violation thereof one notice in any one 12-month period. If after a notice and within 12 months of such notice repeated violations occur, the City, without additional notice, may correct the conditions creating such violations and assess the cost therefore against the property where such activity in violation of 7-1-1 (C), (D}, or (E) occurred. (B) PENALTY: Any person who violates any of the provisions of this ordinance is guilty of a misdemeanor and upon conviction shall be punished not more than the maximum penalty for a misdemeanor as prescribed by state Iaw. (#458, 3/12/07} MONTICELLO CITY ORDINANCE TITLE VIUChapt 1lPage 6 October 3rd, 2008 MONTICELLO Horst Eraser Gold Nugget Development 8857 Zealand Avenue North Brooklyn Park, MN 55445 RE: Public Nuisance Code Compliance, Featherstone Dear Mr. Eraser: Y~'~~ ~' ~~ G ~~~ ~~~~ ~ ~ ~ ~~~ ~ ~ ~~ ~ As part of on-going property maintenance efforts, the City of Monticello recently completed a comprehensive public nuisance inspection of residential developments. The inspection focused. on the presence of violations relating to weeds and grass length. Enclosed are inspection notifications where violations of City Ordinance Title 7, Chapter 1 for Public Nuisance were noted within Featherstone. Also enclosed is a copy of the Public Nuisance ordinance for your reference. We would appreciate your continued effort to maintain these properties. The City of Monticello allows 10 days to comply with this section of the ordinance. After such time, the City will contract to mow in accordance with the ordinance. The cost for mowing is then assessed to that individual .property. Mowing of boulevards and vacant properties within 100' of other residential properties is required per code. This effort will help these neighborhoods retain their character and greatly reduce the number of safety and blight received from current residents in these areas. It is also an appropriate maintenance measure prior to the winter season. Thank you very much for your time and consideration. Please do not hesitate to contact me with any questions. . SinfeJe~rely, -, L/~t ~ , Ang 1 Sc umann Community Development Coordinator c: Jeff O'Neiil, City of Monticello Gary Anderson, City of Monticello Ntonticello Cit}~ Hall, 505 Walnut Street, Suite 1, Monticello, 141N 55362-8$31 • (763) 295-2711 • Fae (763) 295-4404 Office of Public Works, 909 Golf Course Road, Monticello, MN 55362 • (763} 295-31?0 • Fax (763) 271-3272 Department of Motor Vehicles, 119 3rd Street East, Monticello, MN 5"x362 • (763) 295-2712 • Fax (763) 271-3239 Blight.GrassWeeds.081008.txt From: Please Do Not Click Reply [support@govoffice.com] Sent: Sunday, August 10, 2008 11:23 AM To: Angela Schumann Subject: Comments & Suggestions (form) has been filled out on your site. Your Site has received new information through an online form. Online Form: Comments & Suggestions Site URL: www.ci.monticello.mn.us Full Name: ~ Address: Exact Location or Address of Area of Concern: area Contact Phone Number: ontact Email Address: omments, Suggestion or Question: This is a public safety concern. I am a homeowner of Sunset Set Ponds II New Development. MW Johnson, who is the builder of the development, they have neglected the area which is a concern to me. My daughter was nearly brought to her death when she was riding her bike and almost collided with a motor vehicle. The driver and my daughter did not see each other because the grass has grown over 5 feet tall obstructed visibility near the intersections and covering some areas of the sidewalks. I have contacted MW Johnson about my concern and they informed me that they were going bankrupt and now an unknown bank has taken over responsibility of the property. In conclusion, whose ever responsibile for maintaining the area has neglected their responsibility and I am asking the city to enforce it. It's not only cosmetically disturbing to nearby homeowners but causing a public safety concern. Do Not Click Reply -This a-mail has been generated from an online form. Page 1 Blight.GrassWeeds.091608.txt From: Please Do Not Click Reply [support@govoffice.com] Sent: Tuesday, September 16, 2008 9:58 AM To: Angela Schumann Subject: Request Service -Email Form (form) has been filled out on your site. Your Site has received new information through an online form. Online Form: Request Service -Email Form Site URL: monticellomn.govoffice2.com Full Name: ~P Complete Address: MN Exact Address or Location of Concern or Problem Area: Owner is Contact P one Number: Contact Email: ~~ Comments (Please provide as much detail as possible.): Back yard is really really bad. You went out last year and took pictures of her yard and nothing has gotten any better. Her front yard looks like a junk yard. Also her front yard is bad. Her whole yard is nothing but weeds and thistles. I believe we have mowed her yard more than she has. We just are tired of maintaining it, we are doing it because we can't stand it and we know she's a single mother and is never home, but there comes a time when the owner needs to take responsibility. Do Not Click Reply -This a-mail has been generated from an online form. Page 1 Blight.GrassWeeds.072808.txt From: Please Do Not Click Reply [support@govoffice.com] Sent: Monday, July 28, 2008 9:13 AM To: Angela Schumann Subject: Request Service -Email Form (form) has been filled out on your site. Your Site has received new information through an online form. Online Form: Request Service -Email Form Site URL: monticellomn.govoffice2.com Full Name: ~~ Complete Address: ,Monticello, MN 55362 Exact Address or Location of Concern or Problem Area: 55362. Two story house, yard is not mowed, they occasionally mow around the driveway and front yard, but the back_ and iS a '~ final . Contact Phone Number: (cell) Contact Email: Comments (Please provide as much detail as possible.): The grass/weeds is almost knee high in the back yard and is never mowed -nor has it been for the past 3 years, granted the house has been mostly vacant, but has had 2 different renter families. The yard looks awful. The owner put hydroseed down last fall, it was never watered or cared for. Now the weeds are out of control and creeping over into our yard -not to mention just how awful it looks. We have put up with it long enough. Honestly, there are several properties in the new development Carlisle Village that have gone by the wayside. We are very unhappy with the lack of care of many of the homes in such a nice neighborhood. Please let us know if there is anything we can do short of mowing it ourselves. I understand the renters aren't probably responsible and perhaps nor are they capable, but I am tired of being tolerant. Please let us know your thoughts and we do apologize for sending such a complaint. Thank you for your time and efforts. Do Not Click Reply -This a-mail has been generated from an online form. Page 1 Uct "1'1 Utt 1 U:11 a HUNTERS CROSSING, LLC 8525 EDINBROOK CROSSING STE 101 BROOKLYN PARK, MN 55443 PHONE 763-424.8525 FAX 763-424-8851 Honorable tilayor and City Council City of Monticello 50~ Walnut Street Monticello, Minnesota 55362 p1 Re: Hunters Crossing Members of the Council: As the developers of Hunter Crossing, there are several issues that we would like to address and bring to your attention. During this current recession we feel there are areas of relief that the City should explore to help the constniction and home building industry. As you are well aware, new construction home building, which provides many jobs for the conununity, is at a standstill with only 17 single family building permits issued so far this year. Some areas that could be considered would be a reduction or deferment of building permit fees, a freeze or deferment of taxes and assessments on developed lots, or financial incentives for building homes in desired price ranges that the City would like to attract to the City. The Economic Development Authority and the Economic Development Committee could institute a fast time home buyer or lower income buyer housing program to help younger families locate within the City. During these recessionary times, we feel that the mowing of vacant lots twice a year is adequate, particularly since the City is not adhering to this ordinance on their own properties. If the City doesn't follow their own ordinance, then it shouldn't be a requirement for developers and home owners to keep their lots mowed either. VCI [L Ut5 IU:LIa p.:i The pat•k that was dedicated for this area has not been cut once this entire summer. This not only promotes the spread of noxious weeds to the rest of the area, but is detrimental to the marketing of the entire area. Hopefully the City and the Development Community can work together to explore ideas to revitalize the home building industry within the City. Thank you for your consideration, Hunters Crossinj, LLC Robert V4'. Schmidt Roder okanson Council Agenda: October 27, 2008 SH. Update and consideration of alternatives leading to resolution of Lundsten/Posusta land issues. (JO) A. REFERENCE AND BACKGROUND: Following is a summary of steps recommended by the City Attorney and authorized by Council intended to bring resolution to the issue of ownership of the remnant parcel. • First step is to order a binder from title insurance company to determine status of title to the property. • Second step, if the title binder shows that a quit claim deed from Posusta will enable the City to convey fee title to Lundsten, then we will negotiate a proposed cash settlement with Posusta to obtain the quit claim deed. • Third step, an overall settlement agreement with Lundsten, Posusta and the City will be prepared and signed by Lundsten and Posusta and presented to the city council for its consideration before anything is finalized. The title examiner threw a curve with his finding noting that the title belongs to John Lundsten and not Posusta. Accordingly, the title company will provide Lundsten with title insurance supporting this opinion. With this action, the deal between the City is resolved with Lundsten now having a title opinion and insurance for the land he obtained in the quit claim trade. He can purchase title insurance that will protect this interest indefinitely. Posusta disputes the conclusions of the title examiner. He contends that he and his wife, as the owners of the adjoining property, became the owners when the right of way was vacated. Now, in order to prove this point, given the title examiner's opinion, Posusta will need to proceed through quiet title proceedings where the court would make the ultimate decision on the title issue. .However, Mr Posusta, after reviewing the amount of money he has already invested in attempting to resolve this issue ($3,000) and after noting the cost to attach this parcel to an existing plat, has stated that he is willing to reduce the level of compensation significantly to $10,000 which results in a net amount to Posusta of $7,000. You may recall that both Lundsten and Posusta originally requested $40,000 ($ l 0 sq ft) as the value of the remnant parcel. In sum, with regards to Lundsten, the opinion of the title examiner results in clearing the City of any further obligations unless the City wishes to compensate Lundsten for the legal fees associated with this struggle. Lundsten merely needs to purchase title insurance to protect his interest in this parcel. With regards to Posusta, a position could be found that the City by providing the quit claim deed to Lundsten, harmed Posusta by interrupting or severely complicating Posusta's ability to claim vacated ROW that would have otherwise been rightfully his. Ultimately we would not have this answer unless the quiet title process was completed. Instead of incurring continuing legal fees and associated hassle it is suggested by both Posusta and the City Attorney that Posusta simply be compensated in the amount of $10,000 in exchange for a release and quit claim deed from Mr. Posusta and his spouse. . Council Agenda: October 27, 2008 B. ALTERNATIVE ACTIONS: Motion to authorize settlement payment in the amount of $10,000 to Glen Posusta to settle claims relating to City action that complicated and added cost associated with disposition of vacated right of way located directly adjacent to the Posusta parcel. The payment is conditioned upon receipt of a release and quit claim deed from Mr. Posusta and his spouse. 2. Motion to deny authorization of this settlement payment. C. STAFF RECOMMENDATION: It is the recommendation of the City Administrator and City Attorney that the best and most cost efficient course at this time would be execute alternative 1. D. SUPPORTING DATA: Copy of title opinion. 02-OCT-2008 09:34AI~ FROG!- T-743 P.002/OOT F-208 Commonwealth Land ~ ~'~18 insurance i~a~Q„~~r~~, Com an ~`'~~~~~~ Car~fmDmve~l~r~T,fit RS~~ComPany~samemberoflhelendjrmer7calarnrlYafbGer~surenseunderun~s Commitment for T~1e Insurance Schedule A Order Number; 2b46792 X. Effective Date: September ~~k, 2008 at 7 a,m, 2. Po{icY or ~'opeiac to bo Iccu~d~ A. ALTA Owner`s Poiiry (6/~.7/O6) Proposed Insured: To Be Determined Amount of Insurance: B. ABTA Loan Policy (6/t7J06) Proposed In9ureda Amount of In$urance: 3, The estate or interest in the land described or referred to in this Commitment is Fee Simple. 4. Tltie tQ the estate cr interest in the land is at the Effective Data vested in; John M. ~undsten and Mary E. Lundsten, as tenants in common by Quit Claim Deed dated Juns Z6, 20g3, filed of record dune X8, ~0o3, as Document No, 856304, 5. The (and referred to in this Commitment is described as follows: See Attached F~chlbit "A" Note for information: Property is AdSLrac[ Subject Property Address: , , MN Far questions regarding tht ~ commitment, please contact; ~i~lss~~s:^,°.., 4~aFw:r~tlTfifa. Ync, Monticello, MiV 55362 Phone: 753-Z95-640 Gountersigned: ~~ <~~ , , ~~~,~r>2,s~11~' ..f Authorized Signatory Commitment: Page i of b 02-OCT-2008 09:35AI~ FROM1- Schpdrrtp B C~ttiott i Requirements The following are the requirements to be complied with: T-743 P.003/007 F-20B order Nu. Z 16 yzsaep. 3 1, Instrument cteating the estate or interest i'o be insured must be executed and flied for record, to-wit; A. Conveyance of the estate or interest In land as described in Schedule A Pram the party or parties recited at Item 4 of Schedule A to the Proposed Insured (+awnQr). Note; 'the following m~~st accompany the deed for Elting: A Cert4fltate of Rea! Estate Va-ue containing the social security number or the federa[ tax Identification number of each of the grantors and grantees. All grantors and grantees must have obtained a social securty number or a federal tax identtfic~tion number prior to Closing, No deed can b~ recorded without d fully completed Certfffcate of Real Estate value. One of the following statements must be made within the deed; Z) The Seller certlf'7es that the Seller does not know of any wells an the described real properly. z) A weif disclosure certificate accompanies this document; 3) 1 am familiar with the property described in this instrument and T certify that the status and number of wells on the described real property have net changed since the last previously filed well disclosure certificate. B. Mortgage encumbering the estate or interest in land as described on Schedule A executed by To Be Determined to Proposed Insured (Lender) fie secure the payment of a note In a principal amount equal to the amount insured hereunder. 2. Pay the full consideration to, ar for the account, of the grantors or mortgagors. 3. Pay al! taxes, charges, assessments, levied and assessed against siabaect premises, which are due and payable. 4. ~ati~~etory avidcnav Should bo had that improvements and/nr rorairc nr alternations thereto are completeo; that: contraCLdr, Sun-con[racror, Ia~aT-aFrU ft~atafialr~rC~~ o~G off paid; and have released of record al! [lens or notice of intent to perfect a lien for labor and rnaterfal. 5. Zf thQ transaction is closed by Commonwealth Land Title insurance Company or its agents, the Social Security number of Seller or Federal ID nuPnber of seller entities and forwarding address must be provided at or prior to closing to comply with the Tax Reform Act of 198b and the 10995 Form executed at closing unlcass the Seller is a corporation or a governmental unit. 6. Provide standard form Seller' s Affidavit in reCVrdable form, If provided Ttems 2 and 4 of Sthedula B -Section 2 will be deleted from the Policy to be issued pursuant to this LUirlI11l1111Lill. 7. A plat drawing must bQ obtained and reviewed prior to closing. The Company has ordered but Is not yet in receipt of the plat drawing. Upon revir:w and acceptance of the Corrlmitment Page 2 of 6 02-OCT-200:i3 09:35AM FROM- T-743 P.004/007 F-208 Schedule t3 Section i. Requirements continued plat drawing, Item 3 of 6chedule B -Section 2 will !}e deleted from the Policy to be issued pursuant to this Commitment. 8. Recordable certtticat~an or approval, non appucauirr~y, ~~ wa~~=~ ur iuur~icipca) artbdivi~~cr+ regutatienc 1rFUed by th~+ rity rlQrk m~irF ha attached to the conveyance pursuant to Minnesota Statute Section 4132.358, Subd. 9. The proposed conveyance results in the split of an existing tax parcel. Accordingly Minnesota Stat2lte 271.121 requires full payment of real estate taxes for the year 2008, In the amount/amounts as set forth on Schedule B - Section 2 hereof, page 3 oP 6 Commitment 02-OCT-200:8 09:36AM FROM- T-743 P.005/007 F-208 Order NU. 116 9 z6a P. 5 5ch®dule B SeciCion 2 ~xcepfiions The polity or policies to be issued will contain exceptions to the following unless the same are disposed of to the satisfaction of the Company: ~.. Defects, liens, encumbrances, adverse claims or other matters, if any, first appearing In !'hp ~ilhiir rp+-nrds ~r ~ttaahing ~ub~cqucnr to the effective tI41C iicranf flat prior to Cne date the Proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment. Z. Rights or claims of psrties other than Mortgagor In actual possession of any or all of the Prope-`tY- 3. Unrecorded easements, discrepancies or conflicts in boundary Ilnes, shortage in area and encroachments which an aCCUrafiB and conzpiete survey would disrlosp. 4. Unflled mechanics' or matarialmAn~c tlpnc. 5. Real estate taxes for and payable fn 2009 and thereafter. 6, Levied and pending special assessments hereaFter levied. 7. Any levied or pending assessments now of record. Note: An endorsement will follow with the results of an ordered assessments search 8. Any levied or pending special assessments now of record. 9. Easement for transmission Ilne as contained in Document No. 948711. Schedule B -Section 3 10. The Company in possession of an Abstract of Title for the property, 3.1.Thls Commitment does not cover utility bills against the subject property not shown on tax or assessment records. 12. Item 1 of Schedule 8 -Section 2 will be deleted if Commonwealth Land Title Insurance Company cotlducts an insured closing under written instructions from the Proposed Insured (Lender), The Policy to be issued will insure against any loss or damage, which arises by reason of any infiervening liens or encumbrances between the Date of Commitment and the recording date of the instruments creating the insured interest. 13, The Policy(ies} to he issued pursuant to this Commitment will contain the following endorsement: A, ALTA Parm $.i -Environmental Proteci:lon Lien B. QLT1~ Form ~ - CornprohQnsivo C. Locafiion i4., Real estate taxes for 20~t3 due and payable in the year 2005 in the amount of $6.00, have been paid In full. Commltr~ent Page 4 of 6 02-OCT-2008 09:37AI~ FR01~- T-743 P.006/007 F-208 Schedule B Section 2 Exceptions continued Base Tax: $6.00, NonHomesfiead. No representatior+ ]s made regarding subsequent years' homestead tax status. Property Tax rdentificatfon >~o. 255-500-142314 . Cpmts-iCment Page 5 of 6 02-OCT-208 09:37A~1 FR0~1- T-T43 P.007/00T F-208 gxhibi~ `'A~~ Legal Description w State TrunK Highway Na. 25, b®ln9 part of the Southwest Quarter of the e 25 Wrl9ht County, Minnesota, That part of Ne Northwest Quarter of Section 14, Township 1Z1, RNa 25 ,and which Iles Easterly of the which Iles within Cedar Street (Old State Highway } 'n described une 1, and which Ices Northerly of the f°I{°winB described l.ina 2: follow) 9 Line 1: No 25; thence ~ommencin9 at foe intersection of the S ~ ~ wa a line olf State Truc~ikQHighway t !Line 1; Northwest Quarter with the Easterly nigh Y ~ fihe InterSe~ian of the Westerly along said South line a ~lstance ofi 7.3Q feet to the point of be9~nnln9 0 orth line of thence Northeasterly, a distance of 490.58 feet, more less, No. 25) with the lu ht of wa Itne of cedar Street (Old State Highway artment of Westerly rfg Y New State Trunk Highway No, 25, shown as Station 531.}-75 on Minnesota eP Transportation highway plans and here tetminating. Line z' uarter of said Commencing at the Northeast cornthe N°rth ne of said Sa th Half of theQNOrne of said Section 14; thence Westerly along rallel with the East li thence Southerly Pe Quarter, a distance of 1056.00 feet; South Half of the Norti'-west Quarter, a dlstaen North I ne0of said South Half of the~Na~hwest said Llne 2; thence 1A/esterly parallel with th Quarter to intersect the above described Line i and there tarminating~ Page6of6 Commitment Council Agenda: 10/27/08 7. Public Hearing-Consideration of a resolution adopting proposed assessment roll for delinquent utility bills and certification of assessment roll to County Auditor. (JO) A. REFERENCE AND BACKGROUND: The City Council is again asked to adopt an assessment roll for utility billing accounts which are delinquent more than 60 days and to certify the assessment roll to the County Auditor for collection on next year's real estate taxes. The delinquent utility accounts that are included with the agenda are accounts that are at least 60 days past due and include all new delinquents from the last time we certified them. In addition to the delinquent amount, the Council also previously approved the establishment of an administrative fee of $50 per account that is added to each delinquent assessment. The amounts shown on the enclosed delinquent utilities list include the additional $50 administration fee for the preparation of the assessment roll. It is recommended that the delinquent accounts be put on an assessment roll for certification at an interest rate of 6% as allowed by state statute. As in the past, if any accounts are paid within 30 days after the adoption of the assessment roll, they can be paid without the additional interest. After 30 days, payments will be charged interest. A.1 Budget Impact: Certification of delinquent utility accounts is collection of revenue the City should have received in 2008 but because of the non-payment these monies will not be collected unti12009 when it will appear on the tax rolls. A.2 Staff Workload -The process for collecting delinquent utility amounts is time consuming with preparing and mailing delinquent notices; preparing and mailing notices of the public hearing on the assessment of delinquent notices as well as other clerical work in preparing the amounts for certification. The most time consuming step of the process is verifying the delinquent account data against Wright County property tax records. The $50 fee that is added to the delinquent accounts helps defray the cost of staff time and publication expenses. B. ALTERNATIVE ACTIONS: 1. Adopt the assessment roll for the delinquent charges as presented. 2. Based on public hearing input, adjust the assessment roll as required. C. STAFF RECOMMENDATION: It is staff recommendation that the Council adopt the assessment roll as presented. All of the accounts are at least 60 days past due and have been given proper notice of this assessment hearing and ample opportunity to pay the accounts in full. All utility accounts were notified that there would be an additional $50 administrative fee attached to each outstanding balance if the account was not paid by noon on October 8, 2008. D. SUPPORTING DATA: Council Agenda: 10/27/08 Copy of resolution adopting assessment roll Complete listing of delinquent accounts to be certified. CITY OF MONTICELLO RESOLUTION N0.2008-83 RESOLUTION ADOPTING ASSESSMENT ROLL SECOND QUARTER 2008 WHEREAS, pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessment for delinquent utility account charges, NOW, THEREFORE, BE IT RESOL VED BY THE CITY COUNCIL OF MONTICELLO, MINNESOTA: 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessments against the parcels named herein, and each tract of land therein included is hereby found to be benefitted by the assessment levied against it. 2. Such assessment shall be payable in one (1) annual installment payable on or before the first Monday in January 2008 and shall bear interest at the rate of 6 percent per annum from the date of the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment from the date of this resolution until December 31, 2009. 3. The owner of the property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property with interest accrued to the date of payment, to the City Treasurer, except that n interest shall be charged if the entire assessment is paid within 30 days from the adoption of this resolution. 4. The City Administrator shall forthwith transmit a certified duplicate of this assessment roll to the County Auditor to be extended on the proper tax list of the county, and such assessment shall be collected and paid over in the same manner as other municipal taxes. Adopted by the Monticello City Council this 27~' day of October, 2008. ATTEST: Clint Herbst, Mayor Jeff O'Neill, City Administrator ~-, H b C M N C ( . 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[[[~~ C~] O ri] O Z [r+ ] Lr+J y ~ A ~ Z '~G Z Z s ~ y U r7 ro m Z [ N y q y ry G ry ~ ~ G O O O m O O ~~~+++ [[~~ ~~[++~ 'N [~+1 X1 x1 C C ~+ ~ ~ C ~ #1 ~ J t7 CJ t r~ 7 L+r] tr r9 N L r+] L r+] ~ ~ ~ z ~ ~ b N ~ V n Z L r ~ + r H ' G Z ~ y T . r £ £ ~ + r r r O O G1 f~] Z E ~ ~ G N o ~ b A~ A~ ~" n z ~ z y Z C X L+dl Z~~ Z~ 7n ~ + r ~ + ( ~ z z Z Z Z Z Z Z~~ H H ~ ~ m n ro ( ~ 'ro [%' p1 l7 ~~ z H H Nl x1 ~ z n m N w 0~ J b 01 ~P N J b O N O~ W m .P b N N J N J b N W N 6~ W N N O F' ~P J b lP N J N O J N N A N W V1 In N Y J b N W m N N A O T b W b m b N T W ~a O O J b b 1~ J N J N F+ N W J W~ b b H N N A d W . ~O :~ . a o b J UI J J W W N O Y In J W N O O J~~ O W W ~P N W H N Oo JO 6~ J N m W W lP N ~P W N iP l11 do In J iP b b J N 01 iP N O t11 N l!t N b O 1-• iP N N N O W J O~ O O ~ b Y i+ N O 01 l!t O N N iP ~P iP m l7 ~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . m o t11 O O O O O O O O O O O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 '~ tr o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o m d b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . m o 0 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ^C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o m d r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . w N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 K o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o m n r N b U N b N lP N V1 N b b b N b N V1 N b b b N b N N N b N ltt N t!t t!t l!t l11 In t!t l11 l!t t11 l!t N N llt l>t l!t l!t l11 ~' m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 411 R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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N H H H ~ ~ ~ H ~ m L .~ L ~ a 7 ~ ~ F ~ ~ 1 ~ L ~ m ~ 7 ~ ~ 9 9 9 N N p p £ z q q q g O O t7 O C7 l7 y y q q g ~ 7 L y L.f +] L+ J C C y y L r C 17 tl t7 l7 C G~ ~ G~ GO] ~ <b< Y [~+J O m m [ =fbmb ~ O x b bb b bb m ro t ~ t ~ L + mmmmmLar ~[~~]HHmb ooon a y y yy y y H H H~ LHn K H C C x d[ J [~a [~J [C+'J M [C+J 3 OZxx n n n m So Al x1 ro ,ro tl~ ~~»~ m H mmm m ;n ~bH 7d r x ~i z ~ z ~ m m z ~ w o 0 r N r r r r r r r w r N r r r r r r r r r r J J O O N O W r W r 0 ~O N lp N O N 01 W lp r W lp O~ W m iP r 01 J J m m VI r W J ~O VI iP iP O N W Ui r m N N ~P U1 iP N m m 10 N ~P ~P W ~P iP iP m r W J O VI iP J ~P 10 J r OI J J r J m tp O W ~O ~P .P ~P m ~p m ~7 W . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a o m m 0 O~ O~ O~ UI W J O N ~P m r r ~P ~ N O~ 1p W V1 iP m N r N J~ 01 w W O N ~p ~ J m ~p O~ W O~ ~P W J J O O m iP O~ J J O m N iP ~P ~P W Qi 0~ In ~P T VI J N W O ~P r r ~O O m N 01 J N J m r W ~P W O~ 0 N O m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a o 0 0o J o 00 0 0 00 0 0 0 0 0 0 0 0 0 0 0 000 o K 0 0 0 ~0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 m d e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a o 0 0 0 0 0 0 0 0 `C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o a d r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 '~ O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o w n r VI V1 N V1 U1 N VI N U1 N N N N N lr In N V1 In N Ln In N In In In UI N In In In In In In In In In In N ~ lr Ln In In In In N ~' a 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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H (D 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 lp 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o fD N N r r r r r m r r r n£ H G1 J i~ J m m m m m m m r in J m m J .a w J m o a r m m w m m t+ m m ~o m m p' \ O [9 VI W 01 01 Y N m N J N 1p iP W lp N ~P 1p O m V1 10 O ~O W O J O O O~ O O O~ VI O w r R n w w 01 ~D N ll~ i+ m ~p ~p N J O~ N O~ m J N W O N W lp O J m m W m m N m m m N m 10 R N O~ W ll, N ~p ~p N 01 N l0 N O~ W W J m O Y W m N J J Ut O 01 O O m 0 0 ~O lli O (D (p m Council Agenda: 10/27/08 8. Public Hearing -Adoption of proposed assessment roll for delinquent accounts receivable bills and certification of assessment roll to County Auditor. (TK) A. REFERENCE AND BACKGROUND: The City Council is asked to adopt an assessment roll for accounts receivable bills which are delinquent more than 60 days and to certify the assessment roll to the County Auditor for collection on the 2009 real estate taxes if not paid within 30 days of this public hearing. It is recommended that the delinquent accounts be put on an assessment roll for certification at an interest rate of 6% as allowed by state statute. As in the past, if any accounts are paid within 30 days after the adoption of the assessment roll, they can be paid without any additional interest. Budget Impact: This action would reimburse the City for cost it has already spent and therefore would have no impact on the City budget. Staff Impact: There is no staff impact on the City for this item. B. ALTERNATIVE ACTIONS: 1. Adopt the assessment roll for delinquent accounts receivable charges as presented. 2. Based on public hearing input, adjust the assessment roll as required. C. STAFF RECOMMENDATION: It is the recommendation of Staff that the Council adopt the assessment roll as presented. All of the accounts are at least 60 days past due and have been given proper notice of this assessment hearing and ample opportunity to pay the account in full. D. SUPPORTING DATA: Resolution List of delinquent accounts. CITY OF MONTICELLO RESOLUTION N0.2008-84 RESOLUTION ADOPTING ASSESSMENT ROLL MISCELLANEOUS ACCOUNTS RECEIVABLE WHEREAS, pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessment for miscellaneous delinquent accounts receivable, NOW, THEREFORE, BE IT HEREBYRESOLVED BY THE CITY COUNCIL OF MONTICELLO, MINNESOTA: Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessments against the parcels named herein and each tract of land therein included is hereby found to be benefited by the assessment levied against it. 2. Such assessment shall be payable in one (1) annual installment payable on or before the first Monday in January 2008 and shall bear interest at the rate of six percent (6%) per annum from the date October 27, 2008. To the first installment shall be added interest on the entire assessment from October 27, 2008 until December 31, 2009. 3. The owner of the property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property with interest accrued to the date of payment to the City, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of this resolution. 4. The City Administrator shall forthwith transmit a certified duplicate of this assessment roll to the County Auditor to be extended on the proper tax list of the county, and such assessment shall be collected and paid over in the same manner as other municipal taxes. Adopted by the Monticello City Council this 27~' day of October, 2008. ATTEST: Clint Herbst, Mayor Jeff O'Neill, City Administrator 2008 Delinquent Miscellaneous Accounts Receivable PID Name Alt Name Address Invoice # Cert Amt 155-010-029020 Petrus Zanduliet Samantha Almsted 413 West 4th St. 10888 278.60 155-020-002061 Tom & Jane Parker 1125 River St. W. 10907 33.23 155-132-002050 Doris Gbollie 9919 Weston Dr. 10898 78.00 155-132-005010 Bank of N.Y. Truste 10122 Prescott Dr. 10894 179.58 155-014-003100 Tro & Lisa Winterfield 208 Mississi i Dr. 10886 62.69 155-123-001040 Secreta of Housin Dev. 8446 Tro Mar uette Dr. 10882 97.25 155-014-003080 Nha N u en 216 Mississi i Dr. 10878 174.99 155-159-002090 MW Johnson 9403 Giffort Ct. 10877 157.68 155-500-032402 John Lai 1401 Hillto Dr. 10873 268.61 155-023-001090 Count ide Home Loans Zebulon & Jenelle Golder 1305 W. Broadwa 10869 62.62 155-090-001060 Deutsche Bank Natl Trust Co. Ra'endra Ra' ual 9348 Red Rock Ln. 10865 146.75 155-076-001010 Cub Foods BBF Pro erties Inc. 206 7th St.W 10864 367.50 155-159-002080 Joel & Denise Christensen Mort a e Elect Re 9413 Giffort Ct. 10863 123.71 155-183-003150 Jeff & Karin Pa as 8368 Gatewater Dr. 10693 533.10 155-160-001060 Andre Wenzel Matt Beck-Weidner 6297 85th St. NE 10677 113.11 155-073-003110 Cristo her Koivisto Jo Steinkraus & Katie Cham lin 9060 Heron Ct. 10659 131.29 155-010-010011 Shawn Wi nin er Andrew Newman &Trac Olson 519 6th St. W. 10643 133.66 155-088-007050 Brian Thom son Bank of N.Y. Truste 5551 Mallard Ln. 10639 114.96 155-107-002130 Garbriel Rice US Bank 6215 Mill Run Rd. 10634 96.13 155-160-013080 Ran Patterson Hen Osiek 8415 Gatewater Dr. 10631 102.45 155-073-003110 Cristo her Koivisto Jo Steinkraus & Katie Cham lin 9060 Heron Ct. 10626 177.51 155-159-002080 Joel & Denise Christensen Mort a e Elect R 9413 Giffort Ct. 10611 96.13 155-160-013040 Veronica Acierno 6288 85th St. NE 10599 152.49 155-010-037030 Richard & Lisa Win er Clarence Mccart 313 3rd W. 3rd St. 10598 163.26 155-168-001310 Dann & Bobbie Holle Count ide Homes 6757 East Oak Dr. 10585 115.97 155-160-011060 Jeff Cleveland 6383 84th St. NE 10581 128.59 155-159-002080 Joel & Denise Christensen Mort .Elect. Re . S s. 9413 Giffort Ct. 10580 101.35 155-010-010011 Shawn Wi nin er Andrew Newman &Trac Olson 519 6th St. W. 10571 155.17 155-107-002130 Garbriel Rice US Bank NA 6215 Mill Run Rd. 10561 78.52 155-132-005010 Brandon Olson Bank of N.Y. Truste 10122 Prescott Dr. 10556 87.77 155-019-005030 Deutsche Bank Natl Trust Co. Donovan Brummond 313 E. 4th St. 10582 103.35 155-010-071010 Bank of N.Y. Truste Shell Packard 201 E. 4th St. 10861 203.78 155-088-007050 Bank of N.Y. Truste 5551 Mallard Ln. 10861 117.39 155-175-001060 Bank of N.Y. Truste 4839 87th NE 10861 122.59 155-177-002010 Chase Michael Homes 8771 Fairhill Ln. 10538 564.99 155-177-002030 Chase Michael Homes 8777 Fairhill Ln. 10538 567.42 155-177-002020 Chase Michael Homes 8775 Fairhill Ln. 10538 561.33 155-175-001060 Paul Koller Bank of N.Y. Truste 4839 NE 87th St. 10547 59.62 155-172-002100 Brian Baune Construction Jose h & Vicki Fre 4945 87th St. NE 10536 686.77 155-172-003020 NBL Financial Cor . Tami Dick 4882 87th St. NE 10555 422.48 1 55-1 72-00301 0 NBL Financial Cor . Me an Ladwi 4866 87th St. NE 10555 479.73 1 55-1 72-00301 0 NBL Financial Cor . Me an Ladwi 4866 87th St. NE 10665 147.83 155-172-003020 NBL Financial Cor . Tami Dick 4882 87th St. NE 10665 201.21 155-173-003070 MW Johnson 9408 Golden Pond Ln. 10751 1019.87 155-173-002110 MW Johnson 9321 Golden Pond Ln. 10751 822.09 'Still owes the $35.00 blight fee Council Agenda: October 27, 2008 9. Consideration of RFP for DMV Facility and Garage Remodel. (TK) A. REFERENCE AND BACKGROUND: A few months ago the City held a workshop to discuss the possibility of doing an RFP for facility planning. While the Council felt it was not a good use of funds to do the entire study the Council did direct staff to look into providing the DMV with a larger facility and remodel of the garage storage space as our most current and pressing need. At that time Council directed staff to develop adesign/build RFP for Relocating the DMV to the garage site. Staff has drafted the attached design/build RFP, but many staff, the City engineering consultant, and City attorney have all expressed concern about doing adesign/build and felt it would cost the City more than if the City were to complete and RFP for an architect and than an RFP for construction. Staff also has some concern about the lot size to fit the desired space of the DMV facility, garage/storage facility and parking for the DMV. This may become clearer by doing an RFP for architectural services first. However, it will delay the project (construction) more. Finally, there is some question as to if the City is authorized to do a design/build RFP, which makes the RFP for architectural services more attractive. For that reason staff has also developed an RFP for architectural services for the new DMV facility and remodel of the garage/storage area. A1. Budget Impact: The City has reserved 160,000 for this project between the building department and DMV. A2. Staff Workload Impact: There would be some staff impact for answering questions or reviewing proposals and once selected some work with the firm(s). B. ALTERNATIVE ACTIONS Approve the RFP for Architectural Services. 2. Approve the RFP for Design/Build. 3. Modify and approve the RFP for either Architectural Services or Design/Build 4. Do not approve either RFP. Council Agenda: October 27, 2008 C. STAFF RECOMMENDATION: The City staff supports Alternative 1. D. SUPPORTING DATA: The RFP for Architectural Services. The RFP for Design/Build. E-mails From City Attorney Regarding Design/Build RFP. CITY OF MONTICELLO DEPARTMENT OF MOTOR VEHICLE (DMV) CITY PROJECT 2008- DMV OFFICE SPACE/GARAGE REMODEL REQUEST FOR PROPOSALS (RFP) FOR ARCHITECTURAL DESIGN SERVICES CITY OF MONTICELLO 505 Walnut Street, Suite 1 Monticello, Minnesota 55362-8831 October 28, 2008 MONTICELLO DMV OFFICE FACILITY CITY PROJECT 2008- A. PROGRAM DESCRIPTION 1. Introduction The City of Monticello is requesting proposals by invitation to qualified firms and individuals for architectural design services for the construction of a department of motor vehicle facility and garage remodel/addition at 324 5~' Street West. B. INSTRUCTIONS 1. All written proposals should be sent and all questions and correspondence should be directed to: Monticello City Hall Attn Tom Kelly, Finance Director 505 Walnut Street, Suite 1, Monticello, Minnesota 55362 (763) 271-3211 tom.kellyC~ ci.monticello. mn.us 2. All proposals must be received no later than 12:00 noon, local time, on Wednesday, November 19, 2008. Proposers are responsible for the timely and accurate delivery of their proposals. Eight copies of the proposal must be presented. The copies shall be sealed and clearly identified with "Architectural Services RFP' by the submittal deadline. 3. In order to be considered a valid proposal, each proposal must meet the following requirements: • Proposals received after the time set for receipt will be returned unopened. • Each proposal must be signed by an officer of your company who can be held accountable for all representations. 4. Representatives of the City of Monticello will review the proposals and will schedule interviews for finalists. 5. Proposers are prohibited from contacting any representatives of the City Council regarding this proposal. 2 C. PROPOSAL CONTENTS 1. Title Page Show the proposal subject, the name of the proposer's firm, address, telephone number, name of contact person, a-mail address, and the date. 2. Identification and Qualifications of Assigned Personnel The experience in DMV and/or public building design is desirable but not required. If your firm has such experience please indicate the name and provide the following: A. The name of the person who will be responsible for the management and administration of Architectural services with the City together with a resume describing that person's experience and qualifications. B. Background information concerning the firm or firms, including the number of years in business under this name and the number and breakdown of personnel in the proposing office. 3. Proposer's Detailed Approach to the Scope of Services A. The proposal shall address in detail fashion the approach of the firm or combination of firms to the Scope of Work. B. The proposer should provide information representative of previous works of the firm, such as photographs, a short portfolio, etc. 4. Basis for Compensation The proposer should outline the complete basis for compensation including identification of all rates and reimbursable. List of References and Potential Conflicts A. A minimum of three professional references shall be provided. B. Potential conflicts of interest must be disclosed (Appendix A) 6. Disclosures and Assurances (Appendix B) A. Applicant Authority -Assurance that the signator making representations in the proposal on behalf of the proposer has the authority to do so. B. Insurance Coverage -Documentation of current insurance coverage and limits, including professional liability insurance shall be provided with the proposal. C. D. Design and Construction Schedule RFP Approved by City Council Advertise and Distribute RFP RFP Submittal Deadline Staff Review of Proposals Interviews Architect appointment & Contract Start Date October 27, 2008 October 28, 2008 November 19, 2008 November 25, 2008 Week of December 1, 2008 December 8, 2008 December 15, 2008 Schematic Design Phase Completion January 12, 2009 Council Approval of Design January 20, 2009 Bid & Construction Documents Completion February 6, 2009 Advertise for Bids February 9, 2009 Award Construction Contract February 23, 2009 Project Completion June 19, 2009 Scope of Work The City of Monticello is searching for a firm to provide architectural design services including but not limited to: A. Programming Service Phase - to include meeting with staff and others to gather design criteria and develop a program for the schematic design of the DMV facility. B. Schematic Design Development Phase - to include no more than three design options for consideration by the City Council. C. Construction and Public Bid Document Development Phase. D. Bid Phase Services -provide assistance in preparation and distribution of bid packets, opening and evaluating bids, preparation of contracts, and make recommendations for contract award. E. Construction Phase Services -provide Architects Supplemental Information (ASI), and provide the City with assistance during construction and requested. F. Facility Needs -design needs to take into consideration the following but not limited to: The DMV operations has outgrown its current office space, which is approximately 33' X 30', plus there are other needs which need to be met in a new facility including, but not limited to: 4 a. A double entry (vestibule) for the front door to control the dirt, salt, snow, and mud in the lobby area and to control building temperature. b. Lobby area for waiting customer to sit or stand with a workstation area to complete needed forms/paperwork. c. Open window counter area (similar to bank tellers areas) This area needs to include five (5) DMV windows, one of which in the future could also serve as adrive-through station, one (1) handicap DMV window and an area for a driver license camera station. d. A private office for the office manager. e. A screened office area for performing confidential tasks, such as money counting f. A large storage space for license plates, which must only be accessible and viewable from office area and protected from customers. This area should be able to be locked or secured. g. A break room for employees away from customer views. h. Office areas should include room for storage and be carpeted. i. A unisex bathroom. j. Parking of five to nine stalls, with one being a handicapped space for staff and customers. k. Outdoor lighting needs to be included. 1. The facility should utilize energy efficiencies when ever possible. m. The facility needs to have a security system for security, fire and gas detection. n. Identifying sign and address on the building or separate. o. The DMV facility floor plan must be approved by the State of Minnesota The site for the new DMV facility currently has a City garage/storage building on the site. The site will have no set back requirements. The garage/storage area currently is used to store four (4) vehicles and small snow removal equipment along with storage of old City records. Currently vehicles need to be maneuvered around posts or vehicles moved out of the garage for accesses to other vehicles. As part of this project the City would like an addition to this facility to allow better access to all vehicles, an additional garage stall and additional storage area. The DMV building could be attached to the current garage/storage building or constructed as its own separate facility on the site. The site must NOT have an access or use of fire department parking lot. E. Selection 1. The City of Monticello reserves the right to reject any or all proposals, and is not bound to accept the lowest cost proposal if that proposal is contrary to the best interest of the City. 2. Selection of the firms to be interviewed shall be based upon, but not limited, to the following criteria: a. The firm's approach to and understanding of the Scope of Work. b. The firm's experience with similar contracts and clients. c. The experience and qualifications of the proposed staff in providing similar services. d. The firm's demonstrated ability to deliver work on time and within budget. e. The extent of involvement by key personnel. f. The extent to which previous clients have found the firm's services acceptable. g. The firm's most significant qualifications for this project. F. Terms and Conditions 1. The City of Monticello reserves the right to cancel or amend the request for proposals at anytime. The City of Monticello reserves the right to determine the successful respondent. The City of Monticello reserves the right to reject any or all proposals. 2. The City of Monticello will not be liable for any costs incurred by the firm responding to this request. 3. The firm shall not assign any interest in this proposal and shall not transfer any interest in the same without the prior written consent of the City of Monticello. 4. For the purposes of this agreement, the consultant shall be deemed to be an independent contractor, and not an employee of the organization. Any and all agents, servants, or employees of the firm or other persons, while engaged in the performance of any work or services required to be performed by the City of Monticello under this agreement, shall not be considered employees of the City of Monticello and any and all actions which arise as a consequence of any act or omission on the part of the firm, its agents, servants, employees or other persons shall in no way be the obligation or responsibility of the City of Monticello. The consultants, its agents, servants, or employees shall be entitled to none of the rights, privileges or benefits of organization employees except as otherwise may be stated herein. 5. No official or employee of the City of Monticello who exercises any responsibilities in the review, approval or carrying out of the proposal shall participate in any decision which affects his or her direct or indirect personal or financial interest. 6 Appendix A CITY OF MONTICELLO DEPARTMENT OF MOTOR VEHICLE (DMV) CITY PROJECT 2008- DMV OFFICE SPACE/GARAGE REMODEL POTENTIAL CONFLICT OF INTEREST INDICATE APPROPRIATELY I am unaware of any potential conflicts of interest: I am aware of the following potential conflict(s) of interest Description of potential conflict(s): I hereby certify to the best of my knowledge that the information above is true. Firm's Authorized Representative Appendix B Date 7 Applicant Assurances The applicant hereby assures and certifies: 1. That the individual signing the assurance form on behalf of the individual, partnership, company or corporation named in the proposal possesses the legal authority to execute a contract for the proposed work. 2. That the firm(s) agree(s) to comply with all applicable federal, state and local compliance requirements. 3. That the firm(s) is/are adequately insured to do business and perform the services proposed (Attach Documentation). Official Address (Name of Firm) (Authorized Signature) (Title) (Date) 8 CITY OF MONTICELLO DEPARTMENT OF MOTOR VEHICLE (DMV) CITY PROJECT 2008- DMV OFFICE SPACE/GARAGE REMODEL REQUEST FOR PROPOSALS (RFP) FOR DESIGN-BUILD SERVICES CITY OF MONTICELLO 505 Walnut Street, Suite 1 Monticello, Minnesota 55362-8831 October 28, 2008 MONTICELLO DMV OFFICE FACILITY CITY PROJECT 2008- A. PROGRAM DESCRIPTION 1. Introduction The City of Monticello intends to procure design-build services for the construction of a department of motor vehicle facility and garage remodel at 324 5~' Street West. The City intends to award aDesign-Build contract (referred to in the RFP and related documents as the: "Design-Build Service Agreement;" the "Design-Build Agreement;" the "Service(s) Agreement;" or the "Agreement"). The successful Proposer will perform and provide, as the single source of responsibility, all disciplines, management services, and administration for the design and construction of the new Department of Motor Vehicle Facility and garage remodel. B. INSTRUCTIONS 1. Pre-Submittal Conference A pre-bid meeting and general informational meeting will be held on Wednesday, November 19, 2008 at 10:30 a.m. at Monticello City Hall at 505 Walnut Street, Monticello, Minnesota 55362. 2. Site Visits Proposers can arrange site visits of the existing DMV site at 119 East 3`~ Street, Monticello, Minnesota, 55362, existing garage and/or proposed new site location at 324 5~' Street West by contacting Tom Kelly (763)- 271-3211. The City makes no representations or warranties with respect to any information obtained during any individual site visits. 3. Proposal Submittal Date Submit proposals to Monticello City Hall at 505 Walnut Street, Suite 1, Monticello, Minnesota 55362, attn Tom Kelly. Proposals must be received no later than 12:00 noon, local time, on Wednesday, December 3, 2008. Proposers are responsible for the timely and accurate delivery of their proposals. Proposals received after the time set for receipt will be returned unopened. 2 4. Proposal Package Submit the original and eight (8) copies of the Technical (includes technical and experience and qualifications information as described in Section C, proposal of the RFP) Proposal and an original and two (2) copies of the Price Proposal. Place the Technical Proposals and the Price Proposals in separate sealed envelopes or boxes. Place the City project title, project number, and the name and address of the proposer on the front of each sealed container. 5. Clarifications and Addenda Proposers seeking clarification shall direct all communication in writing to: City of Monticello Attn: Tom Kelly 505 Walnut Street, Suite 1 Monticello, Minnesota 55362 The City must receive requests for clarification at least seven (7) days before the proposal is due. Interpretation or modification of this request for proposal (RFP) document will be by addendum only. Oral responses and interpretations or modifications given by other methods are not binding. Addenda and other documents will be delivered by mail, fax number or electronic media to RFP document holders of record at the mailing address, fax number, or email address by RFP document holders. 6. Special Provisions. a. Proposers shall complete all forms required and furnish all items of information or documentation requested. Failure to provide completed forms, information or documentation may result in disqualification of the proposal. b. All proposals shall be binding offers and must remain irrevocable at least 90-days after the deadline for submission. c. Cost of preparing and submitting each and all responses to this RFP are entirely the responsibility of the proposers. 3 7. Schedule. The tentative schedule is as follows: Activity • Issue request for proposals • Pre-bid meeting/general information meeting • Proposals due • Recommendation/City Council Contract approval • Negotiations (if required) • Construction begins • Facility construction complete 8. City Rights and Options Date October 28, 2008 November 19, 2008 December 3, 2008 December 8, 2008 Dec. 9 - 15, 2008 After December 15, 2008 April/June 2009 The City reserves the right (among others), in its sole discretion to: 1. Amend the RFP, as it sees fit, at any time. 2. Cancel the RFP at any time. 3. Waive any and all informalities or irregularities in the proposals received. 4. Reject any or all proposals, at any time, on the grounds that Design- Builder has failed to satisfy any requirements of the RFP or for any other reason deemed by the City to serve in its best interests. 5. Clarify, modify, accept or reject any and all recommendations made by the Evaluation Committee. 6. Discuss, seek clarification, and/or modification of a proposal at anytime. 7. Accept any proposal (within the specified acceptance period) and award a contract to that proposer, with or without any discussion or negotiation. 8. Assess liquidated damages for failure to comply with dates listed in Section B.- 7. Schedule, or proposers scheduled completion date, whichever come first. 9. Monetary awards will not be awarded for completion ahead of dates listed in Section B. - 7. Schedule or proposers scheduled completion date. 9. Design-Builder Responsibilities The successful proposer's (Design-Builder's) responsibilities include all design, engineering, approval, coordination, procurement, materials, equipment, labor, construction, start-up, testing, training, and other services and activities as necessary to provide the DMV/garage remodel facilities. The 4 Design-Builder will be required to obtain all City license and permits required to construct and complete the project. The Design-Builder will prepare and provide four (4) copies of operation and maintenance manuals, and record drawings, shop drawings, motor control schematics, and other required documentation. The format for the record drawings shall be one Mylar, one electronic (AutoCADD) and three full sized paper drawings. The Design- Builder will be responsible for project safety and quality control, as well as all other activities necessary to provide the DMV/garage remodel facilities. The Design-Builder will not interrupt or cause interruption of other existing City of Monticello operations at or near the site. 10. Scope of Work The DMV has outgrown its current office space, which is approximately 33' X 30', plus there are other needs which need to be met in a new facility including, but not limited to: a. A double entry (vestibule) for the front door to control the dirt, salt, snow, and mud in the lobby area and to control building temperature. b. Lobby area for waiting customer to sit or stand with a workstation area to complete needed forms/paperwork. c. Open window counter area (similar to bank tellers areas) This area needs to include five (5) DMV windows, one of which in the future could also serve as adrive-through station, one (1) handicap DMV window and an area for a driver license camera station. d. A private office for the office manager. e. A screened office area for performing confidential tasks, such as money counting f. A large storage space for license plates, which must only be accessible and viewable from office area and protected from customers. This area should be able to be locked or secured. g. A break room for employees away from customer views. h. Office areas should include room for storage and be carpeted. i. A unisex bathroom. j. Parking of five to nine stalls, with one being a handicapped space for staff and customers. k. Outdoor lighting needs to be included. 1. The facility should utilize energy efficiencies when ever possible. m. The facility needs to have a security system for security, fire and gas detection. n. Identifying sign and address on the building or separate. o. The DMV facility floor plan must be approved by the State of Minnesota The site for the new DMV facility currently has a City garage/storage building on the site. The site will have no set back requirements. The garage/storage 5 area currently is used to store four (4) vehicles and small snow removal equipment along with storage of old City records. Currently vehicles need to be maneuvered around posts or vehicles moved out of the garage for accesses to other vehicles. As part of this project the City would like an addition to this facility to allow better access to all vehicles, an additional garage stall and additional storage area. The DMV building could be attached to the current garage/storage building or constructed as its own separate facility on the site. The site must NOT have an access or use of fire department parking lot. 11. Design-Builder Selection Process An Evaluation Committee will review, analyze, and make recommendations to the City regarding the proposals using the approach described below: 1. Proposal Evaluation To establish the most highly evaluated proposals the Evaluation Committee will rank proposals in accordance with Section D. Proposal Evaluation Criteria. 2. Proposer Discussions The City reserves the right to ask Proposers to enter into discussions regarding the contents of their proposal. Items City may discuss include, without limitation: Advise the Proposer of perceived deficiencies and issues in its proposal and provide the Proposer an opportunity to satisfy the City's requirements or preferences; Attempt to resolve uncertainties concerning the technical aspects as well as terms and conditions of the proposal; Provide the Proposer an opportunity to submit any price, technical or other revisions to its proposal which may result from the discussions. 3. Short List of Proposers The Evaluation Committee may short-list the proposal(s) that, in the opinion of the Evaluation Committee, have a reasonable chance of being accepted or negotiated into a mutually acceptable contract. The City reserves the right to award the project to the Proposer determined to have the best value proposal or enter into discussion and subsequent negotiations with only the highest evaluated Proposer or 6 with all Proposers that, in the opinion of the City, submit Best Value Proposals. After recommendation of a Design/Builder, Proposers will be notified in writing of the results of the evaluation process. 4. Negotiations The City has established a time frame for discussions with selected Proposers. At any time during the discussions, the City may determine that a proposal should not receive further consideration and eliminate said proposal from further consideration. Only the City has the authority to eliminate or reject a proposal. 5. Final Evaluation and Project Award The Evaluation Committee will review, analyze, and evaluate all proposals based upon the Evaluation Criteria. The Evaluation Committee will determine and recommend to the City Council which proposal, in its opinion, represents the most advantageous offer to the City. In doing so, the Evaluation Committee will consider which of the most highly evaluated proposals best serves the interests of the City, including the best value for the City. The City Council may accept, reject, clarify or modify any and all findings and recommendations; it may also make its own findings and determinations. If the City determines that a proposal is most advantageous, it may accept said proposal, notify the Proposer and award the Design-Build agreement as contained in the RFP. C. PROPOSAL 1. General Each proposal shall include technical, experience and qualifications, and price information. This information will constitute the proposal and, as applicable and finally accepted, will be incorporated by reference into the contract awarded by the City for the DMV Facility/garage remodel. 2. Proposal Requirements Proposers are required to provide a proposal based on the RFP documents herein. Facilities and equipment include, but are not limited to: a DMV building; remodel/expansion of garage/storage space; HVAC systems; customer/staff parking area and installation of utilities. 7 Proposers are encouraged to propose alternative design approaches and innovative ideas that may take exception to or enhance the facility concept as described in the Scope of Work section of this RFP. For any alternative, the Proposer shall provide an explanation of why the alternative is being proposed, how it will benefit the City and how it will impact the total project cost. The alternative design shall be listed in the Proposer's Price Proposal under the "Bidder Alternate" area. 3. Required Content of Proposal The Proposer shall submit information on each of the following topics. The evaluation of the proposals will be based on comparing the information submitted for each topic against the evaluation criteria described later in this section of the RFP. 1. Cover Letter Briefly introduce the Proposer. Include the name, address, telephone number, FAX number, and e-mail address of the authorized contact person(s) for any questions and receipt of clarifications or addenda (if necessary) regarding the RFP. 2. Executive Summary Highlight the major points of the proposal and list the distinctive capabilities of the Proposer. 3. Technical Information The Proposer shall describe the project approach and anticipated schedule to satisfy the technical requirement in this RFP. The Technical submission shall be in sufficient detail so that the City can ascertain the Proposer's ability to comply with the requirements. The following subsections outline the technical elements that must be included in the proposal. i. Design Criteria The Proposer shall describe the design criteria for the proposed DMV facility/garage remodel. ii. Facility Description The Proposer shall describe the Facilities upon which its proposal is based. The following information shall be provided: 8 1. Site Plan: 11 x 17 drawings showing the proposed arrangement of the facilities on the site. The site plan shall identify the limits of the work; staging and lay down areas; temporary on-site structures, facilities, and utilities. 2. Building Plan, Sections, and Elevation: 11 x 17 drawings showing the proposed floor plan and architectural appearance including at least one building elevation. The plans, sections, and elevation(s) shall include dimensions and locations of equipment, doors, and windows. 3. Equipment: A list including manufactures name, model number, number of units, capacity, and materials of construction as applicable. 4. Process and Building Services: A description of the design criteria for process and building service systems. Include the design criteria for major equipment associated with each system: • Heating, Ventilation, and Air Conditioning • Electric Power and Lighting • Utility Connection • Natural Gas 5. Power Supply and Electrical System: A description of the design criteria and building service systems. iii. Performance Guarantee 4. Experience and Qualifications Information Proposers shall submit information on their experience and qualifications to perform the work described in this RFP. The following subsections outline the experience and qualifications submittal requirements. a. Provide the legal name and address of the Design-builder (or lead firm or partner) and describe the type of organization (e.g. corporation, partnership, joint venture, etc.) responsible for delivering the project. b. Provide the name of the representative empowered to conduct business on the Proposer's behalf and furnish a certified copy 9 of the resolution or agreement empowering that representative to do so. In addition, if the Proposer is a corporation, provide the name of the state under the laws of which the corporation is chartered the name and address of the corporation, and the name and title of the person who signs on behalf of the corporation. c. Describe the Proposer's team. Specifically: • Identify the roles and responsibilities of the Proposer, partner firms, and major subcontractors. • Describe the contractual relationship between the Proposer and all major partners and subcontractors. • Identify the number of years in business as that entity. • Provide memoranda of understanding or similar documentation showing each firm or partner commitment to the team. d. Provide resumes for the overall project manager and individuals responsible for managing the design and construction. Resumes shall identify previous projects that demonstrate the design and construction excellence of the above individuals and include two professional references for each. Also provide resumes for any other key project staff, and describe their project responsibilities. e. The design entity and the construction entity shall each provide project descriptions and references (including contact name and verified telephone number) for two similar projects. f. Safety Record Data: Provide the following for the Proposer or applicable team member who will be responsible for job site safety. • Workers' Compensation experience modification factor rating. • Experience Modification factor calculation worksheet produced by insurance carrier or Minnesota workers' Reinsurance Association. • Incident rate factor rating. Note: To calculate rate use: (N divided by EH) x 200,000 where: N = Number of reported injuries and illnesses EH =Total hours worked by all employees during the calendar year 200,000 =Base hours for 100 equivalent full-time workers g. Financial Resources: Provide evidence of the Proposer's ability to meet the following requirements: • The Proposer has, or is able to obtain (either directly or through the firm or partner responsible for designing the project), a minimum of $1 million in professional liability insurance coverage for design errors and 10 omissions from an insurance company authorized to do business in the State of Minnesota and carrying a rating of Best's or Best's International of A- or higher. • The Proposer is able to obtain (either directly or through the firm or partner responsible for constructing the project) a performance and payment bond in the amount of 5% of the Proposers total bid from surety on the lists of "current Holding Certificates of Authority as Acceptable Sureties on Federal bonds and as Acceptable Reinsuring Companies" (as published in circular 580 (amended) by the Audit Staff, bureau of Government Financial Operations, U. S. Treasury Department). • The Proposer is able to obtain (either directly or through the firm or partner responsible for constructing the project) Comprehensive General Liability (including Premises-Operations; Independent Contractor's Protection; Products Liability and Completed Operations; Broad Form Property Damage) insurance coverage in the amount of $1 million per occurrence and in aggregate. • Provide a written certification statement signed by (an) Officers of the Proposer's organization and any partners, that proposer and any partner(s); o Have not within the last 5 years placed a surety or bonding company in a position to perform due to default on any public project. o Have never declared bankruptcy. o Have not, within the last 5 years, been debarred for bidding on contracts anywhere in the United States or under federal law. • Provide information on pending litigation, or claims against the Proposer, if applicable, or the lead firm or partner(s) that constitute the Proposer for the last five years. Provide a copy of an audited financial statement for the last fiscal year for the Proposer and its corporate shareholders (if any), and its component partners or members (if any). The requisite financial statements shall include without limitation, on annual balance sheet and income statement for the latest completed fiscal year. 11 5. Price Proposal Price information shall be submitted on the Price Proposal Forms provided Forms. The Price Proposal Forms shall be submitted in a separate sealed envelope as described in Section B. - 4 -Proposal Package. Forms shall be clearly labeled to match the technical contents of each proposal. The Proposer must submit price information for the Base Bid for DMV Facility. Separate price information must also be submitted for the garage/storage remodel. The Proposer may submit price information for alternative designs under the conditions outlined in Section C .Proposal, part 2. Proposal Requirements. If the Proposer chooses to submit alternative designs, the total cost shall be listed in an add/deduct format to the Proposer's Total Base Bid. 6. Conflict of Interest Form Proposers and any corporate shareholder (if a corporation), its members (if a joint venture) and its partners (if a partnership or limited liability company) shall submit the Potential Conflict of Interest form included in Section -Forms, and indicate that they are unaware of any actual or potential conflicts of interest or identify and describe, in detail, actual or potential conflicts of interest. For purposes of this certification, the City includes its employees, representatives and the following outside consultants and their employees: WSB Engineering. 7. Minnesota Prevailing Wages State of Minnesota prevailing wages will not apply. D. PROPOSAL EVALUATION CRITERIA The Evaluation Committee will review and evaluate proposals to assure proposals meet the minimum requirements of this RFP. Proposals will be evaluated on the following: 1. Project Design Arrangement and apportionment of spaces Energy savings concepts Reliability, operability, flexibility and durability of the proposed design 12 2. Project Costs • Capital together with alternative (if any) costs • Payment schedule that is billing monthly, when project is 1/4, %Z, 3/ and fully complete or other schedule. • Type and quality of materials and equipment 3. Experience and Qualification Information • Experience and qualifications of key project staff • Design and construction experience • Financial capacity • Claims and litigation history 4. Work Schedule for completing the work E. FORMS The following forms shall be included as part of the price proposal submittal. Included are the Price Proposal Form, the Affirmative Action Certification Statement, and the Potential Conflict of Interest Form. 13 CITY OF MONTICELLO DEPARTMENT OF MOTOR VEHICLE (DMV) CITY PROJECT 2008- DMV OFFICE SPACE/GARAGE REMODEL Proposal of (Name) (Address) Proposal to, Design/Build (DB) Monticello DMV Office Building/Garage Remodel City Project 2008- Pursuant to the City of Monticello (City) RFP for the Monticello DMV Office Building/Garage Remodel Project prepared under the direction of First. In submitting this proposal, the undersigned Proposer understands and agrees to comply with all provisions of this RFP. Second. The undersigned Proposer acknowledges that it has received and examined the RFP. Third. The undersigned Proposer agrees to negotiate its proposal in good faith and if the successful Proposer, to furnish the required bonds as specified in the contract. Performance and payment bonds are to be provided within 14 days after notice of award. Fourth. The undersigned further agrees to begin the work upon receipt of a notice to proceed and to prosecute said work within the time specified. Fifth. The undersigned Proposer further agrees to guarantee performance of the work to be in accordance with the contract documents contained in the RFP, and that the work shall be constructed and installed in a good and worker-like manner. 14 Sixth. The undersigned Proposer certifies, and in the case of a joint proposal each party thereto certifies as to its own organization, that this proposal has been arrived at independently, without consultation, communication, or agreement as to any matter relating to this proposal with any other proposer or with any competitor. Seventh. The undersigned Proposer further agrees to submit, if requested by the City, and prior to award of a contract, the following: a. Audited financial statements. b. l OK and l OQ's (SEC filings), if any. c. Certification that there have been no material adverse changes or planned changes in the method of conducting business (bankruptcy, restructuring, mergers, acquisitions, litigation) since the most recent financial statements of the Proposer and affiliated parties. d. Certification of alist ofoff-balance sheet liabilities, including contingent liabilities and all major financial commitments. e. Descriptions of assets to be used to support the Proposer's guarantees and recourse the project will have to its balance sheets. f. Information on the Proposer's access to bank lines of credit, revolving credit agreements, and other sources of liquidity. Ei th. The undersigned Proposer further agrees to be bound by the provisions of Section 181.59 Minnesota Statutes, relating to discrimination. Ninth. The undersigned Proposer further agrees to be bound by the provisions of Minnesota Statutes, section 473.144 and 363.073, and the provisions of Minnesota Rules, part 5000.3400 to 500.3600. Tenth. The undersigned Proposer will furnish all materials necessary to carry out and satisfactorily provide the service described in its proposal in the manner and within the time specified in the applicable contract documents. Eleventh. The undersigned Proposer will be responsible to obtain permits, licenses, or authorizations as provided in the contract documents. Twelfth. The undersigned Proposer understands that in addition to the forthcoming forms, the other information provided by the undersigned Proposer under the RFP as a part of its proposal may be made a part of the contract. Thirteenth. The undersigned Proposer agrees that all taxes, fees, royalties and other charges related to the construction of the DMV office facility and garage/storage facility are included in this proposal and the cost set forth hereon. The undersigned Proposer agrees that it shall have no claim against the City because of any misunderstanding or lack of knowledge on its part as to liability for, or the amount of any taxes, fees, royalties or other charges which are required or accrued due to its performance hereunder. 15 Fourteenth. The undersigned Proposer represents that it is a duly organized legal entity and is legally bound by the representations and covenants set forth in this proposal. PROPOSAL CONDITIONS The undersigned has carefully checked the proposal documents before preparing this proposal and accepts the said documents as correctly describing the work to be done. If this proposal shall be accepted and the undersigned shall fail to contract as aforesaid, and to give the Bonds in faithful performance and for labor and materials required by Design/Build General Conditions, or other contract documents, or by law, and to provide all insurance as required by the contract documents within 14 calendar days after the date of the notice of award of the contract, the Council may, at its option, determine that the Proposer has abandoned its contract and thereupon the award thereof shall be null and void, and the forfeiture of such security accompanying this proposal shall operate and the same shall be the property of the City of Monticello as liquidated damages. PRICE PROPOSAL Description of Item Estimated Units Price DMV Office Facility Design price Estimated Cost $ Construction Costs: Building Estimated Cost * $ Site Work Estimated Cost * $ Utility Construction Estimated Cost * $ Garage/Storage Remodel Design price Estimated Cost $ Construction Costs: Building Estimated Cost * $ Site Work Estimated Cost * $ Total Base Bid $ * Please include a breakdown of cost estimates with quantities and unit prices on separate worksheet. Alternate DMV Office Facility Add/Deduct from Total Base Bid 1. 2. 16 3. 4. Alternate Garage/Storage Remodel 1. 2. 3. 4. NOTES: Add/Deduct from Total Base Bid 1. Each Proposer alternate shall be considered a stand alone alternate, its Add/Deduct price independent of any other Proposer alternate price unless specifically identified otherwise by Proposer. 2. The City reserves the right to make award on the basis of the Base Bid only or on any alternate or combination of alternates it deems in its best interest. PROPOSAL SECURITY Enclosed herewith is a Proposal Security in the form of a Certified Check, Cashier's Check, or Design/Build Proposal Bond in the amount of payable to the City of Monticello. The amount of the Proposal Security is as required. Failure to enclose a Proposal Security in the amount required may result in the rejection of the proposal. CERTIFICATION AND EXECUTION WITNESS our hands and seal this A (Corporation, Partnership, Other) of the State of By Title (An officer of the Proposer) day of , 2008 17 CITY OF MONTICELLO DEPARTMENT OF MOTOR VEHICLE (DMV) CITY PROJECT 2008- DMV OFFICE SPACE/GARAGE REMODEL POTENTIAL CONFLICT OF INTEREST INDICATE APPROPRIATELY I am unaware of any potential conflicts of interest: I am aware of the following potential conflict(s) of interest Description of potential conflict(s): I hereby certify to the best of my knowledge that the information above is true. Firm's Authorized Representative Date 18 Page 1 of 2 Tom Kelly From: Joel Jamnik [JJamnik~ck-law.com] Sent: Friday, October 17, 2008 12:56 PM To: Tom Kelly SubJect: RE; DMV1Garage RFPs Well, you can use them, but they are subject to the competitive bid laws as indicated in my previous email. That means that the basis for award is price from lowest responsible bidder for the specifications contained in the RFP, which if based on the limited specifications in section 10, would leave a great amount of leeway to the proposer. The new best value contracting option available to cities after July 2007 as defined does not apply to design-build, construction manager at risk, or job order contracting project delivery methods. Use of this methodology is limited to those expressly trained by the Department of Administration. In order to make this work, we can employ the best value approach only after we get a detailed spec from the design architect. Consequently, I would only endorse the use of this methodology as part of a two step process where we first obtain an acceptable design from the architect, then evaluate the responsive bids in light of what proposer offers the City the best value. --0riginal Message----- From: Tom Kelly [mailto:Tom.Kelly@ci.monticello.mn.us] Sent: Friday, October 17, 2008 12:04 PM To: Joel Jamnik Subject: RE: DMV/Garage RFPs I'm not sure I understand. Are you saying the design/build isn't authorized? Tam Kelly Finance Director City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 (763)-271-3211 From: Joel Jamnik [mai[to:JJamnik@ck-law.com] Sent: Friday, October 17, 2008 11:47 AM To: Tom Kelly Subject: RE: pMV/Garage RFPs Tom, No problem with sending out the DMV Architect RFP. The DMV Facility FP document, however, isn't legally authorized by state law for the City to use. Joel ----Original Message----- From: Tam Kelly [mailto:Tom.Kelly@ci.monticeilo.mn.us] Sent: Friday, October 17, 2008 11:38 AM To: Ann Johnson; Angela Schumann; Gary Anderson; Bruce Westby; John Simola; sbisson@wsbeng.com; Jeff O'Neill 10/23/2008 Page 2 of 2 Cc: Joel Jamnik Subject: DMV/Garage RFPs Here are the two RFF''s for the DMV/Garage site. One is for an Architect and one for design/build. Hopefully we can discuss Tuesday and I can put this on the next council agenda. Joel I have copied you so you can also review and keep me out of trouble. Tom Kelly Finance Director City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 (763)-271-3211 10/23/2008 Page 1 of 1 Tom Kelly From: Joel Jamnik [JJamnik@ck-law.com] Sent: Wednesday, October 08, 2008 12:59 PM To: Tom Kelly Subject: RE: DesignJBuild quotes Slubaui is correct-althouglc technically the process isn't prohibited, they are subject to the competitive bid laws, in other 4vords, since you have to take the lowest responsible bid that meets the specifications, some preliminary parameters or specifications need to be provided to ensure that yogic get at least what you need as far as square feet, materials, etc. Given that two-step design pcncess, you don't save much money if any, and probably take more time. Consequently, it isn't used. W. Y. Nelsa, Consl. Co. v. Crry ofLiudslron,, 565 N.W.2d 434 (Minn. Ct. App. DeSlgn and COriStruction COntraCtS, where i~~l. design services and building-construction services are included in the same contract, are subject to competitive-bidding laws. T'he authority for pure design-build contracts remain limited to the state (see M.S. t6C32 and 160.33. } -----Original Message----- From: Tom Kelly [mailto:Tom.Kelly@ci.monticello.mn.us] Sent: Tuesday, October 07, 2008 5:02 PM To: Joel Jamnik Subject; resign/Build quotes Hi Joel, A quick question for you. The City Council asked us to do a design/build RFP for a new DMV facility and garagelstorage building remodel. Shibani of WSB thought she had heard City's can not do a complete Design/build for a project? What do you know on this? Thanks. Tom Kelly Finance Director City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 (763)-271-3211 l a~23izoas Council Agenda: October 27, 2008 10. Consideration of approval of concept plan outlining the phased purchase of the Bertram Chain of Lakes (YMCA) property and a 1$/year lease agreement for land needed in conjunction with development of an athletic complex. (JO) A. REFERENCE AND BACKGROUND The following proposal describes a phased purchase and land lease arrangement approved in concept by the YMCA and now being reviewed formally for approval by both the City of Monticello and Wright County. This concept has developed through discussions between the YMCA Task force and YMCA staff. This concept was also presented and reviewed by City Council during the 2009 budget process and in conjunction with a recent 2009 LCCMR grant application. However, no formal approval of the concept has yet been provided by the City Council. Members of the YMCA Task Force included Karla Heeter, Pat Sawatzke, Wayne Mayer and Clint Herbst, with staff support from Jeff O'Neill, Angela Schumann and Mark Mattice. As you recall, the concept for conducting a phased purchase stemmed from input from various State of MN sources that noted improved chances for matching funds if the full purchase could be implemented over a period of years. In response, the task force and YMCA have been working together to come up with a formal arrangement allowing incremental purchase of the property over a period of years. Under the proposal being submitted now for concept approval, Wright County (County) and the City of Monticello (City) (Buyers) would purchase $3.6 million of the YMCA property. The area proposed for purchase represents apro-rata share of the negotiated $20.5 million total purchase price and is based on land values established by the County Assessor. The original purchase would also include a very favorable City lease agreement granting the City the ability to plan and develop an athletic facility on parcels 1 and 2 (see map). Through all phases, the total value (100%) of the 1200 acre property remains at $20,500,000 until 2013. The term reflects two cycles of the State Bond Finance funding (2010 and 2012) and five LCCMR funding cycles. Phase One - 2008 Buyers purchase parcels SA and 6 for $3,600,000 m (17.56%), closing before December 31, 2008. This amount represents the sum of individual 1.2 Million contributions from the City, County and State of Minnesota. As with the original proposed funding program, Wright County will assist the City by funding the City share with the City paying the county back over a period of time. The total cost to the city on an annual basis will be set at approximately $475,000. When future purchases are made, and additional debt accrued, the payback period will be extended accordingly so that the debt service never exceeds $475,000. The County board will be reviewing this proposal as a whole on October 28th. The City leases parcels 1 and 2 for the development of an athletic complex with the term ending on December 31, 2013 with option to buy at $2,439,500 (11.9%) Athletic and Bertram Lake Beach facilities planning to include parcel 8 with no development to occur on 8 until purchase of 8 is made (Phase III) The City has sufficient funds in the Park Dedication fund to support the debt to this point. Council Agenda: October 27, 2008 Phase Two - 2009: City and County to seek assistance from State via the bonding bill in funding purchase of the balance of property via original formula. However; In event full funding is not available, Buyers and YMCA agree to sell segments including Parcels 1,2 and 7 if LCCMR matching funds are again made available as occurred in 2008. The purchase in this phase will also include parcel 7 because of the high natural resource value necessary for the LCCMR matching grant. (Parcels 1, 2 and 7 - $4,715,000 (23%). As a reminder, a few weeks ago, the City/County applied for grant funds via this program for 2009. County will fund City share up front similar to funding of phase I. City annual payment remains at $475,000. However, the term is lengthened. Again, the County Board will be reviewing this structure on October 28a'. Phase Three - 2010 Buyer purchases parcels 8, 9, 10 and 12 for $3,239,000 (15.8%) City and County would have access to swimming beach at this time. YMCA moves Camp Manitou to 20 acres on the south side of Bertram L~`e with a 99 year lease agreement. Phase Four: - The take down of the remaining parcels in this order: • Parcel s for $2,693,500 (13.14%) • Parcel 4 for $4,018,000 (19.6%) • Parcel 3 for $2,234,500 (10.9%) Proposal features: YMCA benefits o The City and County are the best and most likely buyers at this time. o Lease agreement will not have an adverse affect on any existing YMCA programming. o The proposed concept shows the State that we are all serious about putting a deal together to make the Bertram Regional Park a reality. The projected phasing allows the exchange to occur based on availability of State matching funds. o If the City and County do not spend the LCCMR money before the end of the year, they will loose the funding and likely not be approved for additional funding. o The YMCA will be provided 3.6 m, which can be put into other programs. o The ball fields and support structures could benefit the day camp program and summer youth sports programs. o The concept identifies designated park area, leaving the remaining areas clear for sale as one contiguous piece in the event future segments are not purchase buy buyers for whatever reason. City/County Benefits o City in position to plan and build athletic complex. o City has access to needed athletic complex even though all matching funds go toward purchase of passive park area. o Funding arrangement with County enhances affordability for City by spreading cost over a period of years at an attractive interest rate. Council Agenda: October 27, 2008 o Land is set aside at a set price for a period of years allowing phased purchase to occur based on availability of matching funds. o Potential opening of Bertram Lake access to coincide with Phase I purchase. o A large portion of parcel 6 was somewhat unexpectedly identified as ahigh-ranking natural area in conjunction with the Natural Resource Inventory in progress. o The plan provides a logical and plausible path for obtaining State of MN assistance in eventual total acquisition of the property. o It is very likely that matching funds from the State of MN will be available by 2013 to support the State Share of parcels 1,2 and 7 which means that it is unlikely that the lease will run out before the City/County have the opportunity to buy this area with the help of State matching funds. BUDGET IMPACT Sufficient funds are available in the Park Dedication fund to support payment of City share for the Phase I purchase if spread from 2008 through 2010. In the event additional land is purchased in 2009 it will be necessary to levy or take from reserves to cover this debt in 2010. Needless to say, if the City and County are successful in obtaining matching funds from the State, and subsequent purchases are made over time, it will be necessary to levy for repayment of the debt. However, as noted above, the total debt retirement amount will be set at an amount not to exceed $475,000.00. This will allow the City to spread the cost over time. With regards to planning and construction costs associated with development of the athletic complex, it will be necessary to draw from reserves for any costs that maybe incurred in 2009. With Council authorization, it is anticipated that athletic complex planning utilizing minimal assistance from consultants would commence in the near future. The idea would be to put together a working group comprised of a cross section of the community that would be highly interested in cooperative development and operation of an athletic complex. As part of this process, staff would be looking to State grant sources and other partnerships that could further the cause of constructing a quality athletic complex supporting both local and regional tournament play. B. ALTERNATIVE ACTIONS 1. Motion to approve the concept of phased purchase of the YMCA property and a 1$/year lease agreement for land needed in conjunction with development of an athletic complex. Under this alternative, if also approved by the County, City and County staff will begin preparation of formal documents supporting the concept above. The goal is to have documents in place and closing to occur on Phase I prior to December 31, 2008 in order to secure State funding. This alternative selected based on benefits noted above. Please note that State of MN funding program requires review by an appraiser. 2. Motion to deny approval of concept noted above. The majority of Council has supported this purchase in the past during more solid economic times. Although the City has funds to purchase this phase, a position could be taken that this expenditure should not be made at this time. On the other hand, 1.2 m in Park Dedication funds are funds are available and dedicated for this purpose. These funds can not be used for anything else. Council Agenda: October 27, 2008 C. STAFF RECOMMENDATION As with many complex projects, the route to achieving a goal is not always direct. If the City Council continues to support the long term vision embodied in the Bertram Chain of Lakes project, then the concept noted above should be seriously considered as the most viable path for achieving the goal. The plan results from considerable discussion between YMCA, City/County and State of Minnesota officials taking into account the financial limitations, dreams and goals of these organizations. D. SUPPORTING DATA A. Bertram Chain of Lakes 2008 Property Acquisition Map 5A 5 3 6 7 4 9 8 1 2 12 10 11 Wright County Parks Created by: Wright County GIS, Office of the County Surveyor May, 2008 08001,600400 Feet Parcel #Land AcresWater AcresTotal Acres% of Value 140.17040.175.90% 239.89039.896.00% 3203.032.33205.3610.90% 4132.7523.96156.7119.60% 5203.9577.61281.5612.41% 5A104.3339.7144.0312.99% 6174.640174.645.30% 7121.0948.23169.3211.10% 834.27.9542.1510.20% 99.5746.2755.840.20% 109.8132.3742.180.90% 110.3400.340.00% 1241.870.3342.24.50% Bertram Chain of Lakes The YMCA of Metropolitan Minneapolis 1250.37 Acres = 12 Parcels 2008 Acquisition 2008 Acquisition YMCA Owned Council Agenda: October 27, 2008 11. Consideration of establishing meeting times for: 1) Transportation Plan Workshop, 2) Interview applicants for Public Works Director position and 3) Evaluation of City Administrator. The items listed above need to be scheduled for Council action. The City Administrator will submit a list of possible meeting dates at the Council meeting. To: Mayor and Council From: Jeff Date: November 27, 2008 Re: Possible dates for upcoming special meetings Public Works Director Interviews 5:00 to 8:00 PM Thursday, Nov 6th City Administrator Review 6:00 to 6:45 Monday, Nov 10 Natural Resource Inventory 6:00 to 8:00 Wednesday, Nov12 Transportation Plan + open house 5:00 to 8:30 Thursday, Nov 13 Joint City Council/EDA/PC ?????? Council Agenda: October 27, 208 12. Consideration of a request by Larry Gillette, Wildlife Manager, Three Rivers Park District; Madeleine Linck, Trumpeters Swan Society and Sheila Lawrence, "Monticello's Swan Lady" to assist with management of the Swan Population at Swan Park. (JO) A. REFERENCE AND BACKGROUND As you know, the presence of the swans during the winter has become a signature feature of the community, attracting birders and adding to the quality of life in the community. Monticello has received substantial publicity because of the birds, including National Geographic and yearly articles in the Minneapolis Star Tribune. The beauty of the birds in flight on a bright winter day, the sound of the wings and the trumpeter's distinctive report provide a nice relief to winter and add to the unique character of our home city. Concerns are being brought to our attention, via The Monticello Chamber of Commerce & Industry, by Sheila Lawrence, Three Rivers Park District and Trumpeters Swan Society. (The Chamber of Commerce & Industry was asked to be involved on a task force to plan for the future of the Monticello swans.) As you may know, Sheila Lawrence has been feeding the local swans for over 10 years. The number of birds that stay in Monticello has increased to over a thousand birds, due to her tireless efforts to feed the birds and through donations provided for feed. However, at this time Sheila is looking toward the future and realizes that she will not be able to sustain this effort forever. The question is, who is going to assume the responsibility for feeding the swans over time? In light of this situation, Sheila Lawrence has researched the matter with the Trumpeter Swan Society and Three Rivers Park to see if a plan could be prepared for maintaining the swan population in Monticello and other areas of the state where local residents feed these birds. As a result of this work, it has been noted that for the best interest of the swan population, action should actually be taken to encourage migration south and reduce the size of the winter population. It has been noted by wildlife officials that the species' sustainability long term would be improved if a larger number followed a more normal migration pattern. It has been suggested by wildlife officials to attempt to "chase away" swans during late fall/early winter and actually withhold feed until January 1. The goal would be to encourage at least one half of the population to fly farther south to normal wintering areas. On January 1, feed would be provided to those birds that refused to fly south in order to prevent them from starving. As part of the process of discouraging so many birds from staying in Monticello over the winter, the Chamber of Commerce, in an effort to assist these organizations with their organized swan management plan, asked if the City could provide manpower to visit the park and disturb birds on a regular basis throughout the late fall. Conversely, the Chamber of Commerce & Industry, on behalf of Sheila Lawrence and Three Rivers Park District, requests that the City consider contribution toward purchasing feed for birds that remain in the area. It's important to note that all organizations involved do want to maintain a smaller population in the Monticello area. They feel it's a wonderful opportunity for people to view and learn about the birds. Council Agenda: October 27, 208 Costs to feed the birds have increased dramatically due to the ethanol boom/corn prices. Last year 2007/2008, costs to feed the swans during the months of late November -February was approximately $14,500. Sheila received approximately $4,000 in donations last year. She personally covers the balance. Three Rivers Park District and Trumpeter Swan Society are trying to assist her in financing this endeavor. Suggestions where made by these organization that the City/Chamber might provide some assistance or coordinate a fundraiser for feeding the birds in Monticello. The Chamber of Commerce & Industry has not committed funds towards this project as no amount was budgeted for this year. Sheila would appreciate any amount to assist with the feeding costs. BUDGET IMPACT There are no funds budgeted for this purpose. B. ALTERNATIVE ACTIONS 1. Motion to authorize staff to assist in management of the Monticello swan population as directed by the appropriate wildlife management officer and authorize funds up to $ (amount to be determined by the City Council) to be used for feeding a reduced population. Under this alternative, the City Council would find that there is a public purpose in assisting with management of the swan population and through contributions made toward purchase of feed. The swan population is an attraction that brings people to Monticello to eat, shop and stay, and there is a vested interest in collaborating with others in maintaining the population. In addition, the presence of the swans is adds to the quality of life to a level worth making an effort to preserve. Council has the option of selecting to support management efforts separately from funding feeding the swans, or conversely to support only the feeding effort. 2. Motion to deny authorization of staff assistance in management of the Monticello swan population as directed by the appropriate wildlife management officer and to deny use of funds for feeding a reduced swan population. Council could take the position that management of a swan population is not in keeping with the expertise or capacity of City Personnel and that this task is better in the hands of State wildlife officials. The Swans do contribute to quality of life and bring tourism dollars, however it maybe possible that a certain number of Swans will remain even without City involvement. The same can be held true in terms of funding the feeding operation for the population. C. STAFF RECOMMENDATION In making a decision, the City Council will need to evaluate the public purpose served by any contribution of staff and financial resources. As noted, the swans are a symbol for the community and its connection to the river. Council will have to weigh the expenses against the benefit to the greater community. In any case, the City would encourage continued cooperation between agencies and organizations to manage the swan population and habits. Council may also want to consider whether potential funding and management assistance will be an on-going annual commitment from the City. TTSS -Motion to Monticello for Assistance Drafted by Larry Gillette and Madeleine Linck Sheila will probably not need additional financial assistance for corn this winter, because: • Private contributions have generally exceeded $10,000 per year and the MN DNR Nongame program is providing additional funding for this coming winter. Additional funding sources may be necessary the following winter. • Feeding will be delayed by approximately one month, which will reduce the amount of corn needed for the whole season. • Hopefully, some of the birds will migrate, which will reduce the need for corn further. • The price of corn has dropped over $1.50 per bushel from last year, which should make the available funds adequate. However, help with funding in the future might be necessary. Where we really need help from the City is for them to provide staff or volunteers who can help on a daily basis with keeping the swans from coming up onto the shoreline and into the yard at Sheila's house during December or whenever freeze- up of the surrounding lakes pushes them into Monticello. Sheila does not want to be or should not be the one harassing the swans. It would also be helpful to have assistance to respond on short notice to problems caused by swans or problems encountered by swans. We anticipate that some swans may get lead poisoning or get tangled in fishing line, and need to be rescued. Sheila, local Conservation Officers and Three Rivers Park District could use assistance here. It would be helpful if there was someone within the City of Monticello who could respond to these issues under direction from some of the people mentioned above, so someone else doesn't have to drive an hour one way to respond. This request could be fulfilled by a combination of regular staff and volunteers. We believe the City recognizes the value of the birds. Likewise, we believe they can see the wisdom of encouraging a larger number of the swans to migrate as described by Sandy. We are requesting help with this migration effort during December. Assistance in other aspects of the program may be needed in future years. Motion: Motion to authorize staff to work with Sheila Lawrence, TTSS, the State Nongame Program and Conservation Officers and Three Rivers Park District by providing limited assistance in dealing with the day to day aspects of the effort to get some of the trumpeter swans to migrate from Minnesota in December, 2008, and to authorize staff to seek volunteers from Monticello to assist in this effort. Date: October 27, 2008 Memo To: City of Monticello From: Committee to Encourage Swan Migration Subj: Request to the City of Monticello for Assistance November-December 2008 The effort to encourage Trumpeter Swans to migrate from Minnesota was initiated by Carrol Henderson of the MN Nongame Program. It was subsequently supported by the US Fish and Wildlife Service, The Trumpeter Swan Society and Three Rivers Park District. Sheila Lawrence agreed to cooperate in the effort by not starting feeding until January 1, as have people that feed swans in other locations. While Sheila has concerns about finding adequate funding to pay for corn to feed the birds this year and in the future, she is not asking for assistance from the City this winter. Finding a way to make tax deductible donations to her feeding program is important, and getting funding after this winter may be critical when money is not available from the Nongame program. However, these concerns are not the reason for addressing the City Council tonight. What we are really asking from the City is for them to provide staff or volunteers who can help on a daily basis with the effort to get some of the swans to migrate. If feeding is suspended, it may be necessary for someone to keep the swans from coming up onto the shoreline and into the yards of Sheila's house and her neighbors during December or whenever freeze-up of the surrounding lakes pushes them into Monticello. Sheila does not want to be or should not be the one harassing the swans. It would also be helpful to have assistance to respond on short notice to problems caused by swans or problems encountered by swans. We anticipate that some swans may get lead poisoning or get tangled in fishing line, and need to be rescued. Sheila, local Conservation Officers and Three Rivers Park District could use assistance here. It would be helpful if there was someone within the City of Monticello who could respond to these issues under direction from some of the people mentioned above to reduce the amount of driving to respond. This request could be fulfilled by a combination of regular staff and volunteers depending on the problem. We believe the City recognizes the value of the birds. Likewise, we believe the City can see the wisdom of encouraging a larger number of the swans to migrate as described by Sandy. We are requesting help with this migration effort during approximately mid November through early January. Contact: Larry Gillette (763)694-7842; IgilletteCa~threeriversparkdistrict.orq Madeleine Linck (763)694-7851; mlinck@threeriversparkdistrict.org Request: We request that the City of Monticello authorize staff to work with the State Nongame Program and Conservation Officers, The Trumpeter Swan Society, Three Rivers Park District and Sheila Lawrence by providing limited assistance in dealing with the day to day aspects of the effort to get some of the trumpeter swans to migrate from Minnesota in December, 2008, and to authorize staff to seek volunteers from Monticello to assist in this effort. Conversation between Shiela Lawrence, Susie Wojchouski and Sandy Suchy (Chamber rep. ). Monday, Oct. 27~' afternoon, prior to Council agenda for evening. Sheila had concerns regarding the Council agenda item for this evening. Sheila will be at the meeting this evening, as well as Madelaine from the Trumpeter Swan Society. You should note that each of these people, indeed have different agendas and questions for the Council. Sheila Lawrence astiects: Sheila has two goals which she wishes answers to. The questions involve succession planning should she become ill, die or just choose to move from the location on Mississippi Drive. 1) Is there a plan by the Chamber, or the City of Monticello in the event that Sheila and her husband, Jim, no longer are able to feed the Trumpeter Swans? 2) And is there a nvn-profit, or someone willing to establish a SOlc3 organization, which would be able to funnel donations to the Trumpeter Swans of Monticello for tax purposes. In the past, donations have funneled in these three ways 1) donatians made directly to the Trumpeter Swan Society (a SOlc3) organization, marked as a `donation for Monticello Swans'. If someone does a donation this way, they are able to make it a tax deductible donation. However the Trumpeter Swan Society is no longer willing to funnel these donations to the Monticello Trumpeter Swan feeding program. 2) Sheila receives monies ($4000 Last year) in the donation box at the park. This should not be said outload as there have been thefts concerning the bax. 3) Sheila also has some people that have mailed direct donations to her home. Sheila strongly stated that she and Jim are not asking the city for a monetary donation towards the swans. I asked her if the Chamber asked the city on behalf of the Trumpeters, would she accept a donation from the City. She replied that she would be happy to -but wants it known that she and Jim did not da the asking for money. When I asked Sheila if she had atime-frame for succession, she said no. She is willing to continue feeding as long as she is able and they live in their house. Trumpeter Swan Society and Three Rivers Parks position They would like to see a 50% migration pattern for the Trumpeter Swans due to the large flock in Monticello over the winter months. Younger swans, four years and below, may be able to catch on to the migration if they are not fed up until January at Swan Park, and if they are `encouraged' to leave in the early feeding months. TSS and TRP will be putting a boat with two dummies out into the river to act as a `spooking' mechanism this early winter. Sheila is not part of this migration effort, but has agreed to cooperate with them. It again is the goal of Three Rivers and the Trumpeter Swan Society to encourage a 50% migration of the swans this season. The Trumpeter Swan Society and Three Rivers Parks are requesting, along with the Chamber of Commerce, that the city, if needed, provide one parks worker daily from Nov. 20-Jan. I5` to stop at the park to `spook' the swans, and encourage them to leave. This would be done, should the boat in the water not work. My best guess would be a couple of quick `spookings' per day, although we will get clarity on this this evening from Madeleine from Swan Society. Chamber of Commerce concerns: The Chamber has not the budget or monetary means to provide funding for the Trumpeter Swan Feedings in Monticello. They also do not have a SOlc3 status to funnel tax deductible monies for feeding the swans. They would therefore be thankful if the city realized the high value in this tourist attraction and donate an amount to Shiela Lawerence for the feeding of the Swans. According to the Minn. Dept. of Tourism, the average birder spends around $60 per visit to a birding destination. Estimating 8,000-10,000 visitors to Swan Park, this amounts to a great deal of money in fluxing into Monticello during Nov. -March. This money not only provides good income for restaurants, gas stations and the like, but the trickle down effect is immense. As Council members we are always searching for improving the economics of Monticello. For a small donation, we can encourage the feeding and keep the visitors piling in during the normally economically slow winter months. Would the city be willing after discussion, to chair a committee that could perhaps study the situations mentioned above? Thanks Susie