City Council Minutes 11-10-2003MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, November 10, 2003 - 7 p.m.
Members Present: Roger Carlson, Glen Posusta, Robbie Smith, Brian Stumpf and Bruce Thielen.
Members Absent: None.
1. Call to Order and Pledge of Allegiance.
Mayor Thielen called the meeting to order at 7 p.m. and declared a quorum present. The Pledge
of Allegiance was said.
2. Approve minutes of the October 27, 2003 regular Council meeting.
BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF THE OCTOBER 27, 2003
MEETING WITH A TYPOGRAPHIC CORRECTION ON PAGE 5. ROGER CARLSON
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
3. Consideration of adding items to the agenda.
Brian Stumpf added discussion of the paint job on the water tower to the agenda. Glen Posusta
added a discussion of Cedar Street, Wells Fargo, Ruff Auto and a follow up on the four way
stop signs on Walnut Street. Rick Wolfsteller added the purchase of a compressor for the fire
department.
4. Citizen comments/petitions, requests and complaints.
Mayor Thielen explained the purpose of the citizen comment portion of the meeting. Roger
Schwintek, 1309 West Broadway came before the Council. He stated he had filed an objection
to his $2,500 assessment for the CSAH 75 Improvement Project. He was notified that he was
scheduled to meet for a review of the assessment at 2:40 p.m. on Tuesday, November 4, 2003.
He arrived on time for the review but was kept waiting. After waiting a considerable length of
time he left as he felt his time too valuable to waste with continued waiting. He stated the
review group should have included a council member and that he didn't feel the city engineer
should be running the meeting. City Engineer, Bret Weiss, explained that the review group
consisted of John Simola, Public Works Director, Matt Brokl, City Attorney and the City
Engineer. He stated the review group was on schedule with the appointments until
appointment just prior to Mr. Schwintek which ran late. Mr. Schwintek was informed that they
were running late.
Glen Posusta said he had been contacted by Mr. Schwintek and Mr. Schwintek indicated he
didn't feel he was treated as a customer should be. Glen Posusta felt that Mr. Schwintek should
have been apprized in more timely way that the review group was behind schedule. Glen
Posusta said a number of the people on the review list had made similar comments. Bruce
Thielen stated he was not going to let this item become an opportunity to lambast city staff and
asked Mr. Schwintek if he wanted to re -schedule his review time.
Council Minutes - 11 / 10/03
5. Consent agenda.
A. Consideration of ratifying new hires for the community center. Recommendation:
Approve the new hires as identified.
B. Consideration of a request for a conditional use permit for expansion of drive through
banking facility and other site improvements. Applicant: Wells Fargo Bank Minnesota.
Recommendation: Approve the expansion of the drive through facility, including the
interim improvements to the driveway, but with the condition that the northwest corner
of the site is left unimproved until a commercial building is proposed for the site, based
on a finding that a drive through area along Highway 25 is reasonable use of the
property, but the Comprehensive Plan calls for maximizing the building frontage along
Walnut Street.
C. Consideration of an amendment to the zoning ordinance to allow sandwich board signs
in the right of way in the CCD (Central Community District). Recommendation:
Adopt the zoning ordinance amendment based on a finding that such signs are
consistent with the intent of the downtown area and with the recommendations of the
Revitalization Plan.
D. Consideration to make a find of declaration for an EAW (Environmental Assessment
Worksheet) for Sunny Fresh Food's demolition and/or relocation of the Methodist
Church Building. Recommendation: Move to recommend approval of the draft EAW
for publication and comment.
E. Consideration of approving Change Order 1 to CSAH 75 Improvement Project No.
2000-16C. Recommendation: Approve change order # 1 in the amount of $42,005.35
to Buffalo Bituminous for CSAH 75 Improvement Project No. 2000-16C.
F. Consideration of entering into Cooperative Agreement No. 79344 with the State of
Minnesota for a traffic control signal at TH 25 and Chelsea Road. Recommendation:
Approve entering into Cooperative Agreement No. 79344 with the State of Minnesota
for a traffic control signal at TH 25 and Chelsea Road.
Glen Posusta requested that item #513 be removed for discussion.
ROGER CARLSON MOVED TO APPROVE THE CONSENT AGENDA WITH THE
REMOVAL OF ITEM #513. ROBBIE SMITH SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY.
6. Consideration of items removed from the consent agenda for discussion.
l Glen Posusta stated that he received a number of calls from people who were not in favor of the
�J sign ordinance amendment because of provision #2 which stated the sandwich board sign could
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be no more than 5' away from the entrance of the property. He couldn't see why the ordinance
had to be so specific. He asked if that could be taken off or adjusted. Jeff O Neill stated the
reason for the sign being as close to the property as possible was that it was meant for
pedestrian traffic walking in front of the property and was not meant to attract vehicle traffic.
BRIAN STUMPF MOVED TO RECOMMEND APPROVAL OF THE SIGN ORDINANCE
AMENDMENT BASED ON A FINDING THAT SUCH SIGNS ARE CONSISTENT WITH
THE INTENT OF THE DOWNTOWN AREA AND WITH THE RECOMMENDATION OF
THE REVITALIZATION PLAN. GLEN POSUSTA SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY.
7. Consideration to authorize preparation of a purchase agreement for acquisition of
property for industrial development.
Mayor Thielen asked 011ie Koropchak, Economic Development Director to summarize the
discussion of the workshop held on this matter prior to the meeting. 011ie Koropchak briefly
summarized the work of the industrial land subcommittee and noted that cost studies were done
to determine if it was feasible for the City to do this. Both the HRA and IDC supported the
subcommittee recommendation. The Council is being asked to authorize preparation of a
purchase agreement for 114-120 acres of the Otter Creek Crossing property. There was
suggestions for discussion of terms and conditions. Roger Carlson asked when the Otter Creek
_ Crossing developer made his offer to the City. The offer was made in September and will
expire on November 15, 2003.
Bruce Thielen stated he has some concerns about making this purchase now because the City
has other major projects to consider like the CSAH 18 interchange, the relocation of the
redi-mix plant and the library expansion. Bruce Thielen stated his personal preference would
be to continue negotiations until such time as the City has better cost information on the CSAR
18 and redi-mix plant relocation. He suggested that City see if the seller will extend his offer
until the first of year. Roger Carlson stated that while there is some question whether the City
should be in the real estate business, he doesn't believe an industrial park will happen unless
the City gets involved. Brian Stumpf felt that they should request that the offer be extended
until February 1, 2004 to give the City adequate time to get answers on project costs for the
projects noted.
BRIAN STUMPF MOVED TO TABLE THIS ITEM UNTIL THE FIRST MEETING IN
FEBRUARY TO ALLOW THE CITY TIME TO GET COST INFORMATION FOR CSAH 18
INTERCHANGE AND THE REDI-MIX PLANT RELOCATION AND TO ALLOW FOR
CONTINUING NEGOTIATIONS ON THE CHADWICK PROPERTY BUT NOT TO
EXTEND A PURCHASE AGREEMENT AND TO ASK THE DEVELOPER TO EXTEND
HIS OFFER ON THE SALE OF THE PROPERTY. ROBBIE SMITH SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY.
Bruce Thielen suggested holding another workshop on the land acquisition prior to the first
meeting in February.
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8. Consideration of a request from the Monticello Youth Hockey Association for financial
assistance in funding for a hockey rink.
Rick Wolfsteller gave a brief summary of what was being proposed by the Monticello Youth
Hockey Association. Representatives from the Hockey Association spoke to the Council
regarding their proposal. Steve Hammer thanked the Council for their previous offer to donate
land to the association and then submitted a letter to the Mayor releasing the City from the
obligation of the land donation. Since the original proposal the MYHA has looked at various
options in order to build an arena for the least amount of cost. The plan they came up with is to
work with the school district. The school district has been very cooperative thus far and the
hockey association is working on the language for the lease. The plan is to have the school
operate the area. This plan is less costly since the hockey association does not have to provide
parking or locker room facilities. The plan is to have the school operate the arena. The school
will lease the land, the association will build the building and the school will operate the
facility. Their cost estimate is based on the cost to build a facility similar to one built in Sartell
which was about $2,400,000. The lease would support a loan of $1,500,000. There are
$300,000 in committed funds and with the loan funds they would need $650,000 of additional
funding to complete the construction. They would like to finish construction so the facility
could be used next year. This means construction would need to start in April. The school
district has an approval process that would take about three months. The MYHA needs to
complete financing by January 1, 2004. The MYNA is requesting that the City commit to
providing $50,000 a year for 10 years as a minimum and if possible up to $75,000 a year. They
are also asking that City use its tax exempt status to have a bond issued for the facility. The
City would not be obligated under the bond issue but it would allow the MYHA to get a lower
interest rate. Steve Hammer also requested the City to look at waiving the SAC, WAC,
building and other fees.
Brian Stumpf asked about financial documents to support their funding request. Rick
Wolfsteller stated that there was no financial document accompanying the MYHA's request for
funding. He noted that the current proposal with a lower arena cost was requesting more
financial commitment than the earlier request. Rick Wolfsteller felt there was a need to
provide full financial disclosure. The hockey association stated that $1,000,000 is needed to
fund the cash flow for operating the arena. The school district will be handling all income and
expenses and would realize a small profit in the operation of the arena.. Having the school
operate the facility provides some cost savings in the area of liability insurance. The lease
payment would be applied directly to the loan.
Bruce Thielen stated when the City first began discussion with the hockey association the land
was offered because the way state statute is written it did not allow a cash donation. He
questioned whether the City could make a donation like that. Joel Jamnik, legal counsel,
indicated that City could not do that. Options to a cash contribution were discussed. Brian
Stumpf stated he was opposed to the City being a partner in this venture noting the city has a
number of projects to fund such as the CSAR 18 interchange and the library expansion. He
questioned whether the City could commit to $50,000/year for 10 years. Glen Posusta asked
about waiving of the fees or using $50,000 to purchase ice time. Bruce Thielen suggested that
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Rick Wolfsteller and a number of council representatives discuss the various options with the
hockey association.
Robbie Smith asked if the operation of the arena turns into a losing proposition and the school
is responsible, how are the losses handled. Would it go back on the school levies. The hockey
association did not feel this would happen and cited the growth in other area arenas. Robbie
Smith stated that while he would like to see an arena in the community, he would like more
financial information on this. Glen Posusta stated that he is not a member of the hockey
association but he has heard this term "losing proposition" for a number of years and he
believes it is a red herring. He felt the City should whatever they could to help out. A
committee of Rick Wolfsteller, Glen Posusta and Roger Carlson will work with the MYNA and
the school on the arena issues.
BRIAN STUMPF MOVED TO HAVE GLEN POSUSTA, ROGER CARLSON AND RICK
WOLFSTELLER BE THE COMMITTEE TO WORK WITH MYNA ON OPTIONS FOR
FUNDING AND BRING IT BACK TO THE COUNCIL AT THE FIRST MEETING IN
DECEMBER. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY.
Added Items:
Air Compressor - Rick Wolfsteller reported this item was on the agenda at the request of the fire chief.
The present air compressor was purchased in 1991 for about $8700 and is no longer working properly.
To repair it would cost about $8100. Anew compressor with a containment area, which OSHA
requires, is about $14,000. Since this was a larger cost item and had not been budgeted for, he wanted
to bring it before the Council. The fire chief was also going to let the township representatives know
of the proposal.
BRIAN STUMPF MOVED TO APPROVE THE PURCHASE OF A NEW COMPRESSOR FOR
THE FIRE DEPARTMENT AT AN ESTIMATED COST OF $14,000. ROGER CARLSON
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
Water Tower - Brian Stumpf commented on the paint flaking off the water tower which had been
painted five years ago. Bret Weiss stated that the tower was going to used only when the other towers
were being cleaned and he was not sure if it was still being used at all.
Cedar Street - Glen Posusta asked when the second lift of blacktop would be placed. Bret Weiss
replied it would be laid next spring. Glen Posusta asked about the manholes and how that would
impact snowplowing. Bret Weiss indicated the manholes would be lowered before the snow season.
Glen Posusta also asked about clean up of the construction debris. Bret Weiss will check into this.
Wells Fargo - Glen Posusta asked why the conditional use permit was not on the agenda. Jeff O'Neill
indicated that it was because Steve Grittman, the city planner could not be present at this meeting.
Glen Posusta also asked about the no parking sign placed on the city property adjacent to the Wells
Fargo site. Rick Wolfsteller stated the site is not an improved parking lot and the city felt it shouldn't
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be used for parking unless it was improved. He added that the city is looking at construction of a
parking lot in the spring. Glen Posusta said without that parking area, Sunny Fresh employees were
utilizing the Wells Fargo lot for parking.
Stop Signs on Walnut - Bret Weiss stated the traffic engineer is working on this and the report should
be ready for the next meeting.
RuffAuto - Jeff O'Neill stated that Randy Ruff has gotten some financing to cover the cost of clean up
in the area but the City is still waiting on that. Ruff is allowing his property to be used for material a
contractor has removed from a project. It was pointed that this arrangement was made between Mr.
Ruff and the contractor and the City was not involved in the decision. Staff will check into this.
9. Senator Mark_Ourada and Representative Bruce Anderson
Representative Bruce Anderson and Senator Mark Ourada arrived at the meeting shortly after 8
p.m. and discussed a number of issues that came up in the last legislative session and also
discussed what they feel would be key topics in the upcoming session.
10. Approve payment of bills for November.
ROBBIE SMITH MOVED TO APPROVE PAYMENT OF BILLS. ROGER CARLSON
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
11. Adjourn
ROBBIE SMITH MOVED TO ADJOURN AT 8:55 P.M. ROGER CARLSON SECONDED
THE MOTION. MOTION CARRIED UNANIMOUSLY.
s
Recording Secretary
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