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.
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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.
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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.
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Council Minutes - 5/28/96
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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
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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,
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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.
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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.
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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.
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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.
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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.
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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
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