City Council Minutes 10-23-1995MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, October 23, 1995 - 7 p.m.
Members Present: Brad Fyle, Shirley Anderson, Clint Herbst, Brian Stumpf, Tom
Perrault
Members Absent: None
2. Annroval of ,n , Pe of th r .e ar meeting.}ield Octnber 9, 1995.
AFTER DISCUSSION, A MOTION WAS MADE BY TOM PERRAULT AND
SECONDED BY CLINT HERBST TO APPROVE THE MINUTES OF THE MEETING
HELD OCTOBER 9, 1995. Motion carried unanimously.
3. consideration of adding ite s to the agenda.
A, i
As noted in the staff report to Council, Bret Weiss and his new firm,
WSB and Associates, Inc., requested that the City consider appointing
WSB as the City Engineer. Staff reported that it would be beneficial
to have Bret's input on a number of unfinished projects and that hiring
a second engineer has been discussed in the past; however,
replacement of OSM as the City Engineer had not been previously
discussed.
Councilmember Herbst questioned whether it would be difl"icult to
have two engineering firms designing projects within the city and if
OSM had additional engineers available if needed. Although Herbst
felt WSB would do a good job for the City, it was his view that OSM
should be given the chance to prove itself.
Chuck Lepak of OSM stated that it would be possible for two
engineering firms to design projects within the city; but if the need
arose, OSM could appoint additional engineers to work in Monticello.
Assistant Administrator O'Neill noted that the City should consider
the person performing the work in additional to the overall firm. After
working with Weiss for five to seven years, it was O'Neill's view that
Weiss has been an asset to the community in that he has worked well
with developers, residents, and the entire City staff. O'Neill also noted
that Monticello had a very busy construction season this year, and
much of the credit should be given to Weiss for how well the projects
were handled.
Page 1
Council Minutes - 10/23/95
Bret Weiss stated that one important aspect of engineering services is
continuity; and after working with Monticello far five years, he is
familiar with the residents, developments, and the municipal state aid
system. Appointing WSB as the City Engineer would continue to
provide Monticello with the continuity to which it has become
accustomed.
Councilmember Shirley Anderson stated that perhaps the City should
hire two engineering firms. It was her view that Weiss's knowledge of
the city is very valuable, and he has performed well and has excellent
communication skills; therefore, the City should continue to contract
with his firm in some capacity. Councilmembers agreed that they
have also been impressed with Weiss's performance as City Engineer.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON
AND SECONDED BY BRIAN STUMPF TO CONTINUE WITH OSM AS THE
CITY ENGINEER AND APPOINT WSB AND ASSOCIATES, INC., AS THE
SECOND ENGINEER. Motion includes authorization for staff to
delegate engineering work to each firm at their discretion; and after
becoming more familiar with WSB, Council can discuss at a later date
whether to appoint WSB as the City Engineer. Motion carried
unanimously.
4.
None.
5. Consent agenda.
Councilmember Herbst requested that item 5C be removed from the consent
agenda for discussion, and Councilmember Perrault requested that item 5B
also be removed from the consent agenda.
A.
;enter 3rd Addition.
Recommendation: Approve the final plat of the Monticello
Commerce Center 3rd Addition subject to the following conditions:
1. Execution of an easement document providing storm water
easements on the property adjacent to the Monticello Commerce
Center 3rd Addition.
_ 2. Final plat approval is contingent on execution of a development
agreement which primarily outlines the proposal for designing
and constructing Dundas Road utilities.
Page 2
Council Minutes - 10/23/95
A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY SHIRLEY
ANDERSON TO APPROVE ITEM 5A OF THE CONSENT AGENDA AS
RECOMMENDED. Motion carried unanimously.
B. (~pnsideration of purchasing council chamber chairs.
Councilmember Perrault requested that this item be researched
further, as it was his view that $75 per chair was too expensive.
It was the consensus of Council to table purchase of council chamber
chairs until further researched by Perrault and the City
Administrator.
C. Consideration of Meadow Oak pond outlet project change order--
Project 93-12C.
Councilmember Herbst requested that expenses such as the $8,000
item on the proposed change order be discussed by Council prior to the
work being performed.
Public Works Director John Simola noted that extending the sanitary
sewer across Dillard Avenue was suggested by the Mayor and
recommended by the engineer. Staff concurred that extending the
sanitary sewer at this time would avoid the cost of tearing up Dillard
Avenue in the future if extension is needed.
AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND
SECONDED BY SHIRLEY ANDERSON TO APPROVE CHANGE ORDER
NO. 1 FOR THE MEADOW OAK OUTLET, PROJECT 93-12C, IN THE
AMOUNT OF $16,379.84. Motion carried unanimously.
6. R,blir Hraring--Consideration of adov .inn of pmpos d ass ssm n . rnll for
d~l;n~ent nt lity b'lle a d c rtificatinn of assessment mll to CoL ty Auditor.
Mayor Fyle opened the public hearing.
City Administrator Rick Wolfsteller reported that the proposed assessment
roll contains utility billing accounts which are delinquent mare than 60 days.
1t was recommended that the delinquent accounts be put on an assessment
roll for certification in 1996 at an interest rate of 8%.
There being no comment from the public, Mayor Fyle closed the public
hearing.
Page 3
Council Minutes - 10/23/95
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY TOM PERRAULT TO ADOPT THE ASSESSMENT ROLL FOR THE
DELINQUENT CHARGES AS PRESENTED. Motion carried unanimously.
SEE RESOLUTION 95-59.
7. Public Hea~ng--Consideration of approving on-sale liquor license transfer--
J.P.s Annex.
Mayor Fyle opened the public hearing.
City Administrator Wolfsteller reported that Herbert Gutisnecht, Jr., of New
Brighton applied for the on-sale liquor license currently granted to J.P.'s
Annex to be transferred to his name, as he is purchasing the business from
John Purmort.
There being no comment from the public, Mayor Fyle closed the public
hearing.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY TOM PERRAULT TO APPROVE THE TRANSFER OF THE
CURRENT ON-SALE LIQUOR LICENSE FOR J.P.'S ANNEX TO HERBERT
GUTISNECHT, JR., FOR THE BAR AND RESTAURANT. Motion carried
unanimously.
$, n
constructed by the School District.
Assistant Administrator O'Neill reported that under the proposed ice arena
program, the School District would be responsible for funding and
constructing the arena, including all necessary purchases to allow full
operation of the facility. Long-term replacement and maintenance expenses
associated with the structure and parking lot would also be the responsibility
of the School District, along with insurance for the building and summer
ground maintenance. The cost of long-term replacement of the refrigeration
system would be split 50/50 between the Schoal and the City. The School
would retain ownership of the facility; however, it would enter into a long-
term $1-per-year lease agreement with the City.
City responsibilities would include managing and operating the facility on a
day-to-day basis, including hiring of full-time and part-time staff, scheduling,
operating the zamboni, providing liability insurance, and replacement of the
original zamboni and one-half the cost of the refrigeration system.
The policies governing usage of the facility would be administered by the City
but developed jointly by the City and School District. Under the proposed
program, the School District would pay the full hourly rate for use of the
Page 4
Council Minutes - 10/23/95
facility after regular school hours. During the school day, the School District
would be allowed to use the facility at no charge for community education or
physical education activities; however, the School District would have to
provide supervision and pay for any out-of-pocket expenses incurred by the
City during the school day operations. The School would also be able to use
the facility for dry-floor uses at no charge; however, paying customers for
dry-floor rental would receive priority over non-paying School uses.
Monticello School District Superintendent Shelly Johnson gave a brief
overview of what amenities the arena would likely include such as a team
meeting room, a family room with kitchenette, locker room, and concession
area. An olyrnpic size ice sheet may also be considered. Johnson noted that
the structure would meet all city codes and would not require any variances.
O'Neill reviewed the proposed budget and noted that total ice time revenue
for the arena was estimated at $156,200, which was based on approximately
1,263 hours of rented ice time and other various revenue sources. Based an
budgets provided by five other arenas, he and Wolfsteller estimated expenses
at $154,100, leaving an estimated net revenue of $2,100.
Vance Ellis, Vice President of the Monticello Hockey Association, noted that
the association has existed for 20 years and is comprised of more than 100
families. He noted that the largest amount of revenue would come from
renting ice; however, dry-floor activities during the summer could include
home shows, craft shows, indoor soccer, trade shows, etc. In addition, the
arena would have a positive effect on the community, as business would
increase For motels, restaurants, and gas stations. It was Ellis's view that
the risk to the City for managing the arena would be low.
The Assistant Administrator went on to report that the Parks Commission
recommended that Council agree to operate the arena based an the following
reasons:
1. The School District is the proper body for providing the underlying
funding for the arena because it results in taxation of the user base of
the facility.
2. The arena is likely to cash flaw when long-term maintenance costs and
debt service are not included in the budget as proposed under the
City/School plan.
3. The arena would result in economic benefits to city commercial
businesses.
Page 5
Council Minutes - 1D/23/95
4. The need far this type of recreation service has been sufficiently
demonstrated to justify a referendum on the topic. The area is ripe for
development of an ice arena given the demand for ice time from nearby
hockey associations.
5. The arena will make Monticella a more attractive community, which
will benefit housing stock and real estate values.
Councilmember Herbst stated that the projected revenue from signs and
banners ($3,000) should be eliminated from the proposed budget. Because
this type of advertising revenue is prohibited at the baseball fields, it should
also be prohibited at the arena. Herbst also noted his concern that other
nearby communities are considering construction of an arena, which could
greatly reduce the number of ice time hours Monticello would be able to sell.
It was his view that perhaps the School District should construct and operate
the facility so that all taxpayers are responsible for all debt incurred rather
than city residents having to pay possible additional debt incurred during
operations.
Mayor Fyle noted that the financial risk to the City was very small relative to
the community gain and that he supported City participation in the project
for reasons noted by the Parks Commission.
City Attorney Paul Weingarden asked what length of time the School is
requesting that the City commit to managing the arena, and would the City
have the option of discontinuing operation of the facility in the event it failed.
Weingarden also asked if restrictions would be placed on the fee charged for
ice time, nr could the City increase the fee in order to cash flow the facility.
Superintendent Johnson stated that a 25-year commitment would be ane
alternative that could be considered; however, the City would nat have the
option to commit to less than 25 years. In regard to the fee structure,
Johnson stated that the fee would have to remain competitive and shauld be
reviewed by a joint panel and the School as owner of the facility.
AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND
SECONDED BY SHIRLEY ANDERSON TO DENY APPROVAL OF THE PLAN TO
ENTER INTO A COOPERATIVE AGREEMENT WITH THE SCHOOL DISTRICT
FOR PARTICIPATION TN OPERATING EXPENSES OF AN ICE ARENA. Voting
in favor: Clint Herbst, Shirley Anderson, Tom Perrault. Opposed: Brad Fyle,
Brian Stumpf. Motion passed.
Page 6
Council Minutes - 10/23/95
9.
City Administrator Wolfsteller reported that since the previous Council
meeting, he discussed with Mr. Kruse the acquisition of his Fi-acre parcel
adjacent to the wastewater treatment plant; however, a firm selling price had
not been reached. Since the selling price of the land had not decreased from
the half-million dollar amount, the City must decide whether it is in the best
interest of the community to obtain the property and whether to continue
negotiations or begin eminent domain proceedings.
City Attorney Paul Weingarden explained the procedure for acquiring land
for public purpose under normal condemnation, which takes approximately
six to eight months. Under this procedure, the City can abandon the
condemnation if unhappy with the value determined by the commissioners,
or the decision could be appealed to jury. If the proceeding is abandoned, the
City would be required to pay the other party's cost. Once a jury decision is
reached, the City no longer has the option of abandonment, and the value of
the property must be paid.
Weingarden went on to explain the quick take condemnation procedure,
which would allow the City to obtain the property within 90 days; however,
the City would not be able to back out of purchasing the property if it decided
the land was no longer needed.
Public Works Director John Simola stated that it is staff's recommendation
that the City acquire the property regardless of whether the new plant uses
the SBR technology or the oxidation ditch. Without the additional property,
the City would have to pay the cost of easements and/or sheetpiling, and it
would be in the best interest of the City to design the plant using the
additional 6 acres.
Councilmembers Anderson and Herbst noted that purchasing additional land
was not proposed when expansion of the plant was discussed last year;
therefore, it was their view that the new plant should be constructed on the
current site. Herbst also suggested that the Council table this item until
after the SBR plant tours scheduled for October 24 and 25.
AFTER DISCUSSION, A MOTION WAS MADE BY BRAD FYLE TO BEGIN THE
QUICK TAKE PROCESS OF ACQUIRING THE 6-ACRE PARCEL ADJACENT TO
THE WASTEWATER TREATMENT PLANT. Motion failed for lack of a second.
A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY TOM
PERRAULT TO AUTHORIZE THE CITY ATTORNEY TO COMMENCE NORMAL
EMINENT DOMAIN PROCEEDINGS TO ACQUIRE THE 6-ACRE KRUSE
Page 7
Council Minutes - 10/23/95
PROPERTY. Voting in favor: Brian Stumpf and Tom Perrault. Opposed:
Shirley Anderson, Clint Herbst, and Brad Fyle. Motion failed. It was the
view of Anderson and Herbst that the plant expansion should occur on the
current site. It was Fyle's view that the quick take process should be used to
acquire the property.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY CLINT HERBST TO TABLE CONSIDERATION OF EMINENT
DOMAIN PROCEEDINGS UNTIL THE RESULTS OF THE ADDITIONAL TESTING
ARE AVAILABLE. Motion carried unanimously.
10.
City Administrator Wolfsteller explained that the City has had health
insurance coverage For its employees through Principal Mutual Insurance
Company (formerly known as Bankers Life) for the past 15 years, which
includes health, dental, life, and short-term disability insurance.
State statutes require that when group insurance coverage exceeds 25
employees, the City is required to advertise for bids for insurance coverage
once every 6 years. The City then has the choice of analyzing the proposals
and selecting the coverage which is most appropriate. This year the City
exceeded 25 employees, and specifications were prepared outlining the City's
current coverage along with an advertisement for bids that was published in
the local newspaper. The City's insurance agent, Dan Carlson, also solicited
quotations from a number of independent insurance companies.
Wolfsteller went on to note that in response to the advertisement, the City
did not directly receive any proposals; however, Dan Carlson did receive
seven quotations from companies he had solicited. A11 of the quotations
received were the companies' generic basic plans and were technically non-
responsive bids that did not try to meet the specific specifications.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY CLINT HERBST TO REJECT ALL BIDS ASNON-RESPONSIVE
FOR FAILING TO MEET THE MINIMUM SPECIFICATIONS OF THE CITY AND
TO CONTINUE WITH ITS PRESENT GROUP HEALTH INSURANCE COMPANY,
PRINCIPAL MUTUAL. Motion carried unanimously.
11.
to the Wastewate Treatment Plant Facilities Plan.
City Administrator Wolfsteller reported that on Monday, October 16, the
Mayor requested that the City Administrator publish a notice for a special
meeting and public hearing on an amendment to the Wastewater Treatment
Plant Facilities Plan. It is expected that the week-long testing at the plant
Page 8
Council Minutes - 10/23/95
and Sunny Fresh Foods in regard to fluctuation of flows and loads will be
completed an October 22, and the results will be available by October 30,
which will be passed on to HDR and selected manufacturers of SBR
equipment. Wolfsteller also noted that additional SBR plans will be toured
on October 24 and 25 for continued evaluation of the SBR technology.
After discussion, it was the consensus of Council to set a special Council
meeting for Wednesday, November 1, 1995, at 7 p.m., for the purpose of
conducting a public hearing on an amendment to the Wastewater Treatment
Plant Facilities Plan.
12. consideration of a uroposal to amend,~n,Q„rQ,;~:ctve covenants for the
F~astwood Knoll subdivision.
Assistant Administrator O'Neill reported that some relatively minor issues
have arisen in regard to the restrictive covenants for the Eastwood Knoll
subdivision. Council was asked to adjust the covenants to allow for flexibility
in applying the 20% brick requirement if a unique architectural style is not
complemented by the brick treatment. Tn addition, it was proposed that the
definition of a "modified two-story" outlining the minimum square foot
requirements be added to the covenants. It was also noted that changes to
the covenants must be agreed to by all property owners in the Eastwood
Knoll subdivision.
AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND
SECONDED BY SHIRLEY ANDERSON TO ADOPT THE AMENDMENTS TO THE
RESTRICTNE COVENANTS FOR EASTWOOD KNOLL AS OUTLINED. Motion
carried unanimously.
13. Consideration of bills for the month of October 1995.
AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND
SECONDED BY SHIRLEY ANDERSON TO APPROVE THE BILLS FOR THE
MONTH OF OCTOBER AS PRESENTED. Motion carried unanimously.
There being no further business, the meeting was adjourned.
~~~~y~ ~~
Kar n Daty
Office Manager
Page 9