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City Council Minutes 10-28-1996MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, October 28, 1996 - 7 p.m. Members Present: Brad Fyle, Shirley Anderson, Clint Herbst, Brian Stumpf, Tom Perrault Members Absent: None Councilmember Perrault requested that discussion for item #6 regarding the conditional use permit amendment for JP's restaurant be clarified by adding that the future deck would be allowed only within the designated boundaries of the outside seating area. AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY TOM PERRAULT TO APPROVE THE MINUTES OF THE REGULAR MEETING HELD OCTOBER 14, 1996, AS CORRECTED. Motion carried unanimously. A. Mayor Fyle requested that City Council approve payment for the water tower painting project prior to the check being sent. B. Public Works Director John Simola updated Council on the closing of the Wright County Compost Facility. He noted that the City will likely save money on tipping fees; however, real estate taxes will continue to collect payments for many years for the compost facility. 4. Citizens comments/petitions, requests, and complaints. None. Mayor Fyle requested that item 5B be removed from the consent agenda for discussion. A. Consideration of an application for carnival license --Monticello Mall Merchants Association. Recommendation: Approve issuance of a 5 -day carnival license to the Monticello Mall Merchants Association and waive the daily fees by recognizing the Association as a nonprofit group. Page 1 Council Minutes - 10/28/96 B. Consideration to adopt a resolution calling for a public hearing for the modification of the Redevelopment Plan for Redevelopment Project No. 1, modification of the TIF Plans for TIF District Nos. 1-1 through 1-20, and approving the TIF Plan for the establishment of TIF District No. 1-21 (T.J. Martin, Inc.). Removed from the consent agenda for discussion at the end of the meeting. C. Consideration of chanLye_order#2_and final payment on Proiect 96-01C. Recommendation: Approve change order #2 for Project 96-01C, Dundas/Fallon Avenue Street and Utility Improvement, at a cost of $5,740.19, and authorize final payment to Annandale Contracting for Project 96-01C in the amount of $29,779.99. D. Consideration of request for finalIn at approval of the Monticello Business Center commercial subdivision AA lin cant, Ocello LLC. Recommendation: Approve the final plat of Monticello Business Center commercial subdivision subject to the following conditions: 1. Provide all necessary easements along lot perimeters as required by ordinance. 2. Widen Cedar Street from 60 ft to 80 ft and widen School Boulevard to 100 ft between Highway 25 and Cedar Street. 3. Subsequent development must adhere to the trunk storm water policy of the City. 4. On-site ponding shall be developed sufficient to manage storm water produced on site. A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY TOM PERRAULT TO APPROVE ITEMS 5A, 5C, AND 5D OF THE CONSENT AGENDA AS RECOMMENDED. Motion carried unanimously. Public Heariney--Consideratim Qf approving • r • and Grill. Mayor Fyle opened the public hearing. City Administrator Rick Wolfsteller reported that Mr. Larry Hunt of Champlin, Minnesota, was in the process of purchasing Hawk's Sports Bar and Grill from Joe and Teresa Abbott. As part of the ownership, Mr. Hunt applied for the on -sale liquor license to be transferred to his name. Page 2 Council Minutes - 10/28/96 Wolfsteller noted that a background check completed by the Wright County Sheriff's Department showed no information that would prohibit Mr. Hunt from obtaining the license. There being no comment from the public, the public hearing was closed. A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY TOM PERRAULT TO APPROVE THE TRANSFER OF THE CURRENT ON -SALE LIQUOR LICENSE FOR HAWK'S SPORTS BAR AND GRILL TO MR. LARRY HUNT. Motion carried unanimously. accounts7. Public Hearing--Adoptim Qf I assessment roll for delinquent _ and certification of assessment• • CQUnty A _ ! 1 Mayor Fyle opened the public hearing. City Administrator Wolfsteller reported that the proposed assessment roll for accounts receivable included bills which were delinquent more than 60 days. It was recommended that the delinquent accounts be certified for 1997 real estate taxes at an interest rate of 8%. There being no comment from the public, the public hearing was closed. A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY BRIAN STUMPF TO ADOPT A RESOLUTION ADOPTING THE ASSESSMENT ROLL FOR THE DELINQUENT CHARGES AS PRESENTED. Motion carried unanimously. SEE RESOLUTION 96-42. 8. Public Hearing on adoption of prQpQsed assessment roll for ddinqumt utility bills and certification of assessment roll to County Auditor, Mayor Fyle opened the public hearing. City Administrator Wolfsteller reported that the proposed assessment roll for utility billing accounts included bills which were delinquent more than 60 days. It was recommended that the delinquent accounts be certified for 1997 real estate taxes at an interest rate of 8%. In addition, Wolfsteller noted that one delinquent account exceeded the $500 threshold established by Council and that attempts were being made to collect the delinquent amount or the water would be shut off. Page 3 Council Minutes - 10/28/96 The City Administrator also reported that, as requested by Council, he selected four accounts from the delinquent list to verify with the County whether real estate taxes were paid or were also delinquent. Three of the four had paid taxes through the first half of 1996. Information regarding payment for the second half of the year was not available, as all payments had not yet been recorded. There being no comment from the public, the public hearing was closed. AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY TOM PERRAULT TO ADOPT A RESOLUTION ADOPTING THE ASSESSMENT ROLL FOR DELINQUENT UTILITY BILLING CHARGES AS PRESENTED. Motion carried unanimously. SEE RESOLUTION 96-43. 9. Consideration of extending conceptual agreement governing sanitary sewer connection tQ the, Kjellberg West Mobile Hom Park. Assistant Administrator Jeff O'Neill reported that in January of 1996, the City Council approved a conceptual funding package outlining fees and related expectations associated with connection of the Kjellberg West Mobile Home Park. The agreement to allow Kjellberg to follow the 1995 fee schedule was somewhat predicated on obtaining an increase to the wastewater treatment plant load limits; however, since the increased load limit was denied by the Pollution Control Agency (PCA), Council was asked to decide whether the same agreement should be offered to Kjellberg or whether staff should renegotiate an agreement for west park hookup to the city sanitary sewer system. Under the original agreement, Kjellberg agreed to escrow $200,000 (hookup fees and a portion of the area assessment) and the remaining $55,000 would be assessed against the property. O'Neill noted that if Kjellberg was required to follow the 1996 fee structure, his fee would increase $45,000 over the 1995 hookup fee of $180,000. O'Neill went on to explain that the PCA requested that this item be brought to Council so that they could determine whether or not to pursue litigation. If Kjellberg's connection to the city sewer system was not likely, then the PCA would need to force Kjellberg to complete development of his on-site system. Councilmember Herbst suggested that if Kjellberg escrowed the total amount of $255,000 with the City within a month, he would agree to charging the 1995 rate; otherwise, at the time the money was deposited with the City, the prevailing rate would apply. It was the view of Mayor Fyle that since the load limit increase for the treatment plant was denied, Kjellberg should be required to pay the prevailing rate at the time he deposits funds with the City. Page 4 Council Minutes - 10/28/96 Rick Cool, representing the PCA in litigation regarding the mobile home park, asked what the cost to Kjellberg would be under the proposal that he pay the prevailing rate. O'Neill noted that under the 1996 rates, Kjellberg's cost would be approximately $300,000. Kent Kjellberg stated that he had been waiting for the City to decide where the sewer line should be installed up to his property and that he would be ready to hookup anytime. He also stated that the City's engineering staff changed the depth of the sewer line, and there seemed to be changes regarding the storm water policy. Kjellberg noted that he was waiting for final approval on plans and had only 200 ft left to complete in the east park. Assistant Administrator O'Neill noted that staff had been working on the east park hookup to sanitary sewer and hadn't been exerting pressure on Kjellberg to hookup the west side. City Engineer Bret Weiss added that three alternatives had been presented for serving the west park; however, staff felt the east park hookup should be completed prior to working on the west park. In addition, Weiss stated that Kjellberg's engineer had been given the pipe depth information over a month ago and that unapproved work had been done at the east park site. The remaining 200 ft of work was on hold pending submittal of plans for City Engineer approval. AFTER DISCUSSION, A MOTION WAS MADE BY BRAD FYLE AND SECONDED BY CLINT HERBST TO CHARGE AND LOCK IN THE PREVAILING RATE FOR SANITARY SEWER HOOKUP AT THE TIME THAT KJELLBERG ESCROWS WITH THE CITY THE TOTAL AMOUNT DUE FOR THE WEST MOBILE HOME PARK. Motion carried unanimously. 1 11 Hi -Way Liquors Manager Joe Hartman reported that total sales for the 9 months ending September 30, 1996, increased 10.9% over the same period last year to $1,359,559. Gross profits also increased by 12%, or $34,440, to a total of $321,194 through September. Operating expenses were slightly lower, resulting in a 30% increase in operating income. Staff was pleased with the 23.6% gross profit margin and expect that the year-end financial report will show record earnings for the liquor store. AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY TOM PERRAULT TO ACCEPT THE 9 -MONTH LIQUOR STORE FINANCIAL REPORT AS PRESENTED. Motion carried unanimously. Page 5 Council Minutes - 10/28/96 11. Consideration of approving renewal of joint fire department contracts with Silver Creek Township and City of Otsego. City Administrator Wolfsteller reported that the Monticello Joint Fire Department has contracts for fire protection services covering a portion of the city of Otsego and approximately half of Silver Creek Township that would be expiring December 31, 1996. The current contracts were based on a $35 per parcel fee, which was established beginning January 1994 and had been increased from the previous $25 per parcel amount. The 1996 revenue amounted to $18,550 for Silver Creek Township and $6,650 for the City of Otsego. Wolfsteller explained that in order to determine whether the current fee structure was appropriate, the number of fire calls and manhours spent at fires over the last three years was reviewed, and a percentage for each location's share of the fixed cost of having a fire department was calculated. The fixed cost of having a fire department for 1997 was estimated at $104,696. When using this allocation formula, Silver Creek Township's share of the cost was estimated at $17,937, and for the City of Otsego was estimated at $5,900, which seemed to indicate that the $35 per parcel fee was still appropriate. After reviewing the above figures, the Joint Board recommended that the present $35 per parcel fee remain the same and that new three-year contracts be initiated. Ted Holker of the Joint Fire Board stated that it was the intent of the Board to discuss with each contract jurisdiction the recently -adopted false alarm policy. In addition, he noted that if revenue has fallen behind by the third year of the contract, the fee could be raised at the next contract renewal to make up for the loss. Council discussed the 3 -year length of the contracts and whether language should be added that would allow for renegotiation should a significant change occur during the contract period. AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY TOM PERRAULT TO APPROVE RENEWAL OF THE FIRE PROTECTION AGREEMENTS WITH THE CITY OF OTSEGO AND SILVER CREEK TOWNSHIP FOR A 3 -YEAR TERM AT THE RATE OF $35 PER PARCEL. Motion carried unanimously. 12. Consideration of bills for the month of October. AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY TOM PERRAULT TO APPROVE THE BILLS FOR THE MONTH OF OCTOBER AS PRESENTED. Motion carried unanimously. Page 6 Council Minutes - 10/28/96 13. Discussion of item removed from consent agenda. 5B. Consideration to adopt a resolution calling fQr a public hearing for the modification of the Redevelument Plan for Redevelopment Pr!Qjec No. 1, modification of the TIF Plans for TIF Dis rict Nos, 1-1 throug 1-200 and approving the TIF Plan for the establishment of TIF Distric 1Inc.). Economic Development Director 011ie Koropchak requested that Council adopt a resolution calling for a public hearing date of November 12, 1996, for establishment of Tax Increment Financing District No. 1-21 for T.J. Martin, Inc., which will lease to Lake Tool, Inc. Mayor Fyle questioned whether the wage scale of $40,000 to $60,000 for the projected five new jobs was correct. Koropchak noted that the pay range was correct and would included in the contract between T.J. Martin, Inc., and the HRA. AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY SHIRLEY ANDERSON TO ADOPT A RESOLUTION CALLING FOR A PUBLIC HEARING DATE OF NOVEMBER 12, 1996, FOR THE MODIFICATION OF THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1, THE MODIFICATION OF THE TIF PLANS FOR TIF DISTRICT NOS. 1-1 THROUGH 1-20, AND APPROVING THE TIF PLAN FOR THE ESTABLISHMENT OF TIF DISTRICT NO. 1-21. Motion carried unanimously. SEE RESOLUTION 96-41. 14. Other matters. A. It was the consensus of Council to set a special meeting for Wednesday, November 6, 1996, at 5:30 p.m. for the purpose of canvassing the general election results. There being no further business, the meeting was adjourned. Karen Doty Office Manager Page 7