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City Council Minutes 05-28-1996MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Tuesday, May 28, 1996 - 7 p.m. Members Present: Brad Fyle, Shirley Anderson, Clint Herbst, Brian Stumpf, Tom Perrault Members Absent: None 2. ApprQval of minutes of th!e apecial Board of Review me!Qting held May 8, the specdal meetings held at 5:30 and 6 p.m. on May 13, and the r!P'gular meeting held May 13, ••• A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY TOM PERRAULT TO APPROVE THE MINUTES OF THE MAY 8, 1996, SPECIAL MEETING. Voting in favor: Shirley Anderson, Tom Perrault, Brad Fyle, Brian Stumpf. Abstaining: Clint Herbst. Motion passed. A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY TOM PERRAULT TO APPROVE THE MINUTES OF THE SPECIAL MEETINGS HELD AT 5:30 AND 6 P.M. AND THE REGULAR MEETING HELD AT 7 P.M. ON MAY 13, 1996. Motion carried unanimously. •- • 1 W11W.-Proff- ms on .•- • None. 4. Citizens comments/petitions, requests, and complaints. A. Tim Brion described a street route for moving a home out of Monticello and requested permission from Council to use the proposed route. He noted that the move will take place on Monday, June 3, between 4 a.m. and 5 a.m. in order to be less disruptive to traffic. Wright County deputies will also escort the move. It was the consensus of Council to authorize Brion to move the home using the proposed route. B. Pathway Grand Opening Announcement. Wanda Kraemer, representing the MCP Promotions Committee, presented a short program announcing the Pathway Grand Opening, which will take place on Saturday, June 1, 1996. Page 1 Council Minutes - 5/28/96 5. Consent agenda. Mayor Brad Fyle requested that item 5D be removed from the consent agenda for discussion. A. Consideration of a resolution authorizing the issuance of G.O. improvement bonds and refunding bonds. Recommendation: Adopt the resolutions authorizing the sale of three separate bond issues as described. SEE RESOLUTIONS 96-21, 96-22, and 96-23. B. Consideration of liquor store Night/Weekend Supervisor appointment. Recommendation: Approve the appointment of Ms. Tracy Eisele to the position of Night/Weekend Supervisor at the liquor store, which replaces the previous Assistant Manager position. C. Consideration of authorizing advertisement for bids for brick repair and sealing --city hall. Recommendation: Authorize advertisement for bids for brick repair and replacement at city hall. D. Consideration of authorizing advertisement for bids for overlaying commuteran rking lot and expansion of public works building ua_ king lot. Removed from consent agenda for discussion. E. Consideration of a resolution accepting plans and specifications and authorizing advertisement for bids --Briar Oakes Estate 2nd Addition and River Street sanitary sewer reconstruction; and consideration of adopting a resolution stating intent to reimburse the City for Briar Oakes Estate 2nd Addition project costs. Recommendation: Adopt a resolution accepting plans and specifications and authorizing advertisement for bids for Briar Oakes Estate 2nd Addition and River Street sanitary sewer reconstruction; and adopt a resolution stating intent to reimburse the City for Briar Oakes Estate 2nd Addition project costs. SEE RESOLUTIONS 96-24 and 96-25. F. Consideration of adopting development and disbursement agreements and approving final plat --Klein Farms 2nd Addition. Recommendation: Adopt the disbuntement and development agreements for the Klein Farms 2nd A0dition contingent on review and approval by the City Attorney, and approve the final plat for Klein Farms 2nd Addition contingent on final review of construction easement requirements. Approval of plans and specifications is contingent on approval by the public works department. Page 2 Council Minutes - 5/28/96 A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY SHIRLEY ANDERSON TO APPROVE ITEMS 5A, 5B, 5C, 5E, AND 5F OF THE CONSENT AGENDA AS RECOMMENDED. Motion carried unanimously. DISCUSSION OF ITEM REMOVED FROM CONSENT AGENDA: 5D. Consideration of authorizing advertisement for bids for overla3dng commut!Qr parking lQt and pxpan,9iQn Qf public works building parking lot. Public Works Director John Simola reported that $25,000 was included in the 1993 city budget for overlaying the commuter parking lot. Due to the cost of the project, staff` approached the County for financial assistance because they are the fee title holder of the property; however, the County was not interested in funding the project. In regard to the public works complex, Simola noted that paving of the east side was completed in 1995; however, some parking area was lost with the addition of phase II, and expansion of the parking lot was needed to add spaces to the west of the office building. In addition, an overlay of the 20 -year-old pavement was also requested. Mayor Fyle stated his support for overlaying the commuter parking lot; however, it was his view that additional work at the public works complex should be deferred for a year or two. Councilmembers discussed the two projects, and it was suggested that both projects be advertised for bids to get an idea of the cost, and the public works pavement could be deleted from the project after bids are received if it was felt that it should be re -bid and completed at a later date. A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY CLINT HERBST TO AUTHORIZE ADVERTISEMENT FOR BIDS FOR OVERLAYING THE COMMUTER PARKING LOT AND OVERLAYING THE BITUMINOUS AREA AROUND THE OFFICE OF PUBLIC WORKS AND EXPANSION OF THE PARKING .AREA, WITH THE ADDITION OF CURBING. COUNCIL MAY DELETE THE PUBLIC WORKS OVERLAYING AND PARKING LOT EXPANSION DEPENDING ON BID PRICES. Motion carried unanimously. Page 3 Council Minutes - 5/28/96 MIYA site] Mat 0&71 "We"94 tR Jerry Kramber, City Assessor, reviewed the parcels that his firm re- evaluated as authorized at the May 8 Board of Review meeting. Jeff Francis, owner of parcel #155-070-002040, reported that he purchased his home in September 1995 for $147,388. The City Assessor's re-evaluation lowered the original valuation from $169,600 to $158,800; however, Francis questioned how the valuation could increase 5% in only four months' time. It was his view that the value of the home should be based on what the market will bear. Assessor Jerry Kramber noted that he discussed this parcel with County Assessor Doug Gruber, and both felt the reduction to $158,800 was fair and was comparable with others in the area. AFTER DISCUSSION, A MOTION WAS MADE BY BRAD FYLE AND SECONDED BY TOM PERRAULT TO APPROVE THE CITY ASSESSOR'S VALUATION OF $158,800 FOR PARCEL #155-070-002040. Voting in favor: Brad Fyle, Tom Perrault. Opposed: Clint Herbst, Shirley Anderson, Brian Stumpf. Motion failed. AFTER ADDITIONAL DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY SHIRLEY ANDERSON TO DECREASE THE VALUATION FOR PARCEL #155-070-002040 TO $154,400. Motion was based on the valuation being lowered slightly this year with the intention that it will again increase with next year's evaluation of properties. Voting in favor: Clint Herbst, Shirley Anderson, Brian Stumpf: Opposed: Brad Fyle, Tom Perrault. Motion passed. AFTER REVIEW OF THE REMAINING PARCELS ON THE CITY ASSESSOR'S REPORT, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY TOM PERRAULT TO APPROVE THE FOLLOWING PARCEL VALUATIONS: PARCEL # APPROVED VALUATION 155-033-001350 Reduce. from $90,900 to $88,100 155-014-003180 Reduced from $160,600 to $149,000 155-059-003050 Reduced from $91,100 to $88,300 155-035-004120 Reduced from $102,500 to $97,800 155-010-081010 Reduced from $90,700 to $77,200 155-021-002430 Reduced from $153,000 to $146,900 155-048-002060 Reduced from $116,800 to $107,300 155-035-001020 Reduced from $102,500 to $97,900 Page 4 Council Minutes - 5/28/96 PARCEL # APPROVED VALUATION 155-035-001030 Reduced from $101,700 to $97,000 155-035-001050 Reduced from $102,500 to $97,800 155-035-001060 Reduced from $102,500 to $97,800 155-035-001070 Reduced from $101,900 to $97,200 155-035-001080 Reduced from $102,500 to $97,800 155-035-001090 Reduced from $102,500 to $97,800 155-035-001100 Reduced from $102,500 to $97,800 155-035-003090 Reduced from $108,200 to $103,900 155-035-004100 Reduced from $103,200 to $98,500 155-035-004110 Reduced from $102,500 to $97,800 Motion carried unanimously. Council then discussed renewing the assessing contract with Kramber & Associates for the 1996-1997 assessment year. It was noted by City Administrator Wolfsteller that the current contract rate was set at $5.75 per parcel in 1992. Due to the growing number of building permits the City has experienced and due to the cost of living increases since 1992, Krambers requested an increase in their contract to $6.50 per parcel. AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY SHIRLEY ANDERSON TO RENEW THE CITY ASSESSING CONTRACT WITH KRAMBER & ASSOCIATES FOR $6.25 PER PARCEL. Motion carried unanimously. Assistant Administrator Jeff O'Neill reported that in January the Council gave conceptual approval of connecting Kjellbergs East Mobile Home Park to city services contingent on a number of conditions, which were incorporated into the proposed development agreement for connection to the city sanitary sewer system; however, O'Neill noted that the option of allowing Kjellberg to move trailers in prior to completion of the work if funds were placed on deposit with the City was not included in the development agreement on the advice of City Attorney Paul Weingarden. It was Weingarden's view that it would be best to require Kjellberg to complete all of the work before allowing homes to be moved in. Weingarden noted that it may be difficult to install the required improvements on private property even if the City has the money through a disbursement agreement. O'Neill suggested that if Council was inclined to allow Kjellberg to move homes in before the work is done, Page 5 Council Minutes - 5/28/96 Council should consider allowing Kjellberg to move homes in only after the grading is completed in addition to funds being set aside in a disbursement agreement to cover the rest of the improvements. Kent Kjellberg noted his concern regarding paragraph 12a on page 8 of the development agreement, which limited his ability to sell the mobile home park. It was the consensus of Council to authorize an amendment to paragraph 12a of the development agreement, with final language to be defined by the City Attorney. Kjellberg also requested that paragraph llb be amended to coordinate payment of bills with final approval of the project. It was his view that he shouldn't have to pay until they are ready to move homes into the area. The Assistant Administrator explained that at the time the development agreement is executed, all costs to date would be assembled and billed to Kjellberg, after which time Kjellberg would be responsible for paying any additional costs associated with the City Engineer and other review of the work being completed. Kjellberg requested that the option of entering into a disbursement agreement with the City be added to the development. O'Neill explained to Kjellberg that the amount that would need to be set aside with the disbursement agreement would be the total cost to complete the project plus 15%. In addition, it was noted by City staff that Kjellberg must place an additional deposit with the City before additional engineering review of the project. AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY BRAD FYLE TO ADOPT THE DEVELOPMENT AGREEMENT FOR CONNECTION OF THE KJELLBERG EAST MOBILE HOME PARK AND EXPANSION AREA TO CITY SANITARY SEWER, WITH THE AMENDMENT TO THE LANGUAGE IN PARAGRAPH 12a, ASSIGNMENT CLAUSE, TO BE DEFINED BY THE CITY ATTORNEY. MOTION INCLUDES AUTHORIZATION TO ESTABLISH A DISBURSEMENT AGREEMENT THAT WOULD ENABLE HOMES TO BE MOVED ON SITE PRIOR TO COMPLETION OF REQUIRED PUBLIC IMPROVEMENTS. DISBURSEMENT AGREEMENT FUNDS ARE TO BE IN AN AMOUNT EQUAL TO THE COST OF THE PROJECT PLUS 15%. Voting in favor: Brian Stumpf, Brad Fyle, Shirley Anderson, Tom Perrault. Opposed: Clint Herbst. It was Herbst's view that the project should be completed prior to allowing homes to be moved in. Motion passed. Page 6 Council Minutes - 5/28/96 Economic Development Director 011ie Koropchak explained that the proposed contract for private redevelopment among the HRA, City, and Cedrus Creek Craftsman, Inc., described the amount, method of delivery, and the timing of the tax increment finance (TIF) payment to the Redeveloper, as well as the obligations of the Redeveloper, HRA, and the City. Koropchak went on to summarize the contract. She noted that the 2nd Addition of the project was proposed as a TIF district, with the HRA providing financial assistance for purchase of the parcels on which the Redeveloper would construct 10 townhouse units. In regard to the City - owned parcel proposed for the 3rd Addition, the HRA proposed to purchase the parcel for $40,000, with $25,000 payable at closing and $15,000 pursuant to a 5 -year non-interest note. The HRA would then convey the lot to the Redeveloper for $1. The $25,000 payment to the City would be taken from the HRA general fund with the intent to satisfy the "local contribution" necessary to exempt the TIF district from local HACA penalties. Koropchak explained that the City would then be able to reimburse the County $12,049.21 for outstanding taxes and other costs relating to this parcel. Lastly, the contract stated that the HRA intended to acquire the 1400 West Broadway Parcel (the 4th Addition) for transfer to the City for use as public green space or park, which would satisfy the City's park dedication requirements. Koropchak noted that previous Council action on May 13 required that the developable areas of this parcel be developed rather than used as green space; however, the Redeveloper has noted that this would be economically unfeasible. Councilmember Herbst noted that even though the project appeared to be a good one, he expressed concern with using tax dollars to create a TIF district, clean up parcels, and then give the parcels to a developer. It was also his view that the parcels included in the 2nd Addition were not blighted and should not be designated as a TIF district. He noted that all of the lots would increase in value once the blight at 1400 West Broadway was eliminated. Mark Ruff of Publicorp explained that the HRA evaluated the area, noting that more than 50% of the buildings were blighted. In addition, the proposed development would produce $50,000 in new tax revenues outside of the TIF district, which would be much more than the 2-3 homes now on the tax rolls. Tax revenue from 10 of the 29 new homes on the project would be included in the TIF program. Page 7 Council Minutes - 5/28/96 HRA Chair Al Larson stated that after considerable research of the cost of condemnation proceedings and relocation, in addition to many meetings discussing the proposed development, the HRA felt this proposal was a win/win situation for the City and the neighborhood. The HRA also felt this development would meet the goal of increasing the amount of upscale housing in the community as noted at a previous joint planning meeting. He noted that the TIF is used for gap financing and would be paying for the cost to acquire and demolish the homes that stand in the way of an integrated, high-value development. Wright County Commissioner Pat Sawatzke stated that the County Board is not generally in favor of tax increment financing for residential development because the County doesn't always capture enough to pay for County services. AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY SHIRLEY ANDERSON TO ADOPT A RESOLUTION APPROVING THE CONTRACT FOR PRIVATE REDEVELOPMENT AMONG THE HRA, CITY, AND CEDRUS CREEK CRAFTSMAN, INC., WITH THE STIPULATION THAT THE HRA PAY THE CITY UPFRONT FOR THE FULL COST OF THE GILLE PARCEL. Voting in favor: Brian Stumpf, Shirley Anderson, Tom Perrault. Opposed: Clint Herbst and Brad Fyle. Motion passed. SEE RESOLUTION 96-26. 9. Consideration of adopting a revised comprehensive plan. Assistant Administrator O'Neill reported that after revisions were reviewed at a special meeting of the City Council, the comprehensive plan was returned to the Planning Commission for final review and public hearing. The Monticello Township also reviewed the plan in detail and supported the plan. In addition, O'Neill noted that the Planning Commission elected to provide the Orderly Annexation Area (OAA) Board a chance to review and comment on the plan. At the OAA meeting on May 3, there were no objections to the plan, but there were a number of insightful comments made by County Planner Tom Salkowski, who provided a written review of the plan for the OAA. Planning Commission Chair Dick Frie added that the Commission discussed at length the OAA and County comments and felt it was good information for future reference during implementation of the comprehensive plan. Page 8 Council Minutes - 5/28/96 AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY CLINT HERBST TO ADOPT THE UPDATE TO THE MONTICELLO COMPREHENSIVE PLAN. Motion is based on the finding that the comprehensive plan reflects the City's goals and objectives with regard to community development. Motion carried unanimously. WRIWI• _ I •M•1_ a iii �_ •� �_ �_�70 1 ell0 . , - . • Public Works Director John Simola reported that the old water tower located downtown was last painted in 1989 and in need of repainting. Council was asked to decide whether to repaint the tank the same aluminum color with a red roof and black lettering estimated at $10,000 or less, or whether to paint the tank with a two-tone appearance estimated to cost between $20,000 to $25,000. Councilmember Herbst noted that Todd Larson requested that Council table this item in order to give the Monticello Community Partners (MCP) a chance to give input on what could be done with the water tower. Larson stated he would have the MCP Design Committee contact John Simola. A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY TOM PERRAULT TO TABLE CONSIDERATION OF ADVERTISEMENT FOR BIDS FOR REPAINTING THE OLD WATER TOWER UNTIL THE REGULAR COUNCIL MEETING ON JUNE 10, 1996. Motion carried unanimously. "Um allI M-00 M11 ;VTOT13 City Engineer Bret Weiss reported that during the initial discussion of the feasibility report for the Dundas Road/Fallon Avenue project, the City Council deleted the water main looping on Fallon Avenue due to the estimated cost of $27,000, which the City would have to carry since there would be no immediate benefit to adjoining properties. Weiss went on to note that after reviewing bids on the project, the actual construction cost would be approximately $19,124, including indirect costs, which was close to 30% lower than the feasibility report indicated; therefore, he felt the Council should have a chance to include the water main looping in the project if desired. Page 9 Council Minutes - 5/28/96 AFTER DISCUSSION, A MOTION WAS MADE BY TOM PERRAULT AND SECONDED BY SHIRLEY ANDERSON TO APPROVE CHANGE ORDER #1 FOR PROJECT 96-01C, DUNDAS ROAD/FALLON AVENUE IMPROVEMENTS, ADDING 654 FT OF 12 -INCH WATER MAIN TO FALLON AVENUE FOR LOOPING PURPOSES, INCLUDING INDIRECT COSTS, AT AN ESTIMATED $19,124. Motion carried unanimously. 12. Consideration of enterina into an agreement with MN/DOT allowing the, City Enrdneer to prepare "Ins and am cifi cations, conduct inspection and construction II_s. _.I r.• ' 11_' 1_ Ities of improvements proDosed for Highway! of •4 City Administrator Rick Wolfsteller reported that he was recently contacted by Gary Dirlam, District Traffic Engineer for MN/DOT, who asked whether the City of Monticello would be interested in using the City Engineer to continue with preliminary design, final design, and the balance of the engineering work necessary for the proposed improvements for Highway 25, including widening of Highway 25 from I-94 to Kjellbergs, Inc. Due to MN/DOT's volume of work .and lack of personnel, MN/DOT would allow the City to use the City's consultant to prepare the design documents; in addition, they asked the City to do the entire project, including construction management, inspection activities, right-of-way acquisition legwork, and all informational meetings and public hearings necessary for the improvement. MN/DOT felt this would be the best approach to take in order to complete the project in a reasonable amount of time; otherwise, it could take three or four years before construction would occur. Wolfsteller explained that the City would need to enter into a cooperative agreement with MN/DOT stating the exact role of each party and the participation and cost allocation that would be expected from all parties. AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY TOM PERRAULT TO AUTHORIZE THE CONSULTING ENGINEER TO PREPARE A PROPOSAL FOR DESIGN AND CONSTRUCTION MANAGEMENT OF THE PROPOSED HIGHWAY 25 IMPROVEMENT PROJECT FOR MN/DOT. Motion includes a willingness by the City to enter into a cooperative agreement with MN/DOT that would indicate the City would be the entity managing the overall project for the State. Voting in favor: Clint Herbst, Tom Perrault, Shirley Anderson, Brad Fyle. Opposed: Brian Stumpf. Motion passed. Page 10 Council Minutes - 5/28/96 Public Works Director Simola asked that Council approve check #40458 for an amount $110 less than listed. He indicated check #40458 would be voided and a new check issued. AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY TOM PERRAULT TO APPROVE THE BILLS FOR THE MONTH OF MAY. Motion carried unanimously. A. Mayor Brad Fyle noted that there had been a great deal of trespassing on the property adjacent to the fire hall due to the density of the brush. It was the consensus of Council to authorize the Public Works Director to work with the property owner to possibly reduce the density of the brush on the property east of the fire hall. There being no further business, the meeting was adjourned. Karen, Doty Office Manager Page 11