City Council Minutes 04-08-2013MINUTES
REGULAR MEETING — MONTICELLO CITY COUNCIL
Monday, April 8, 2013 — 7 p.m.
Mississippi Room, Monticello Community Center
Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf
Absent: None
1. Call to Order and Pledge of Allegiance
Mayor Herbst called the meeting to order at 7:02 p.m. and declared a quorum present.
The Pledge of Allegiance was recited.
2A. Approval of Minutes — March 25, 2013 Regular Meeting
BRIAN STUMPF MOVED TO ACCEPT THE MARCH 25, 2013 MEETING
MINUTES WITH A CORRECTION TO ITEM #8. TOM PERRAULT SECONDED
THE MOTION. MOTION CARRIED 5 -0.
3. Consideration of adding items to the agenda
• National Guard return
4. Citizen comments, public service announcements, and updates
a. Citizen Comments:
1) Presentation of donation from Xcel Energy — Jeff O'Neill introduced Scott
Johnson who presented a check for $20,000 to the Mayor. This donation
will go toward the costs for the pedestrian underpass on CSAH 75 at the
west end of town. He also introduced several other representatives from
Xcel Energy.
b. Public Service Announcements:
1) Building Department spring clean -up reminders — Ron Hackenmueller
provided several reminders to residents about cleaning up their yards this
spring. Residents can contact the building department with questions.
Ron Hackemnueller commented that the department does not do a sweep
of the city anymore; complaints are handled on a case -by -case basis.
2) Leaf pick -up (5111) — Bob Paschke noted that residents can set bags of
leaves or grass at curbside by 7 a.m. on Saturday, May 11th. This only
includes leaves or grass, not branches. Residents can also bring leaves to
public works for the compactor. Clint Herbst asked if the city might
consider doing branch chipping once a year in the fall or spring. Brian
Stumpf suggested doing this during the week to avoid paying overtime.
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3) "Monticello Recycles" (5111) — Bob Paschke introduced Jason Warehime
to talk about the recycling day sponsored by Metro Appliance Recycling.
This will be held Saturday, May 11th at the commuter lot. Jason talked
about items that would be accepted. Citizens can also check out a special
website at www.tliinkgreetunn.net. Clint Herbst asked him if he could
provide information to city staff to set up a link on our website.
4) MCC Community Garden— Angela Schumann reported that the
community garden is accepting reservations for plots from City residents.
They have a limited number left, the cost is $28 for the season. The plots
are 20' by 15', there is water and hoses in the garden and some gardening
implements for gardeners to use. Call Kitty at 763 - 271 -3268 to reserve
your plot.
C. Updates — Mark Pultusker, FiberNet
Mark Pultusker told Council that he met with school district personnel to talk
about what FiberNet Monticello could offer. He invited them to the head -end
building for a presentation. They discussed the advantages that FiberNet
Monticello could bring for their alternative learning programs and how they could
benefit farther with their fiber connection between school buildings. FiberNet
Monticello could help them with their video on demand content. The school
asked for another meeting with principals and administrators along with city staff
to talk about possible partnership for FiberNet Monticello and the school.
Mark Pultusker feels this is a good indication of the ability to tan things around
for FiberNet Monticello and offer more services to residents and businesses.
Mark Pultusker also commented on the conversion to the new billing system.
When the first bills went out there were a lot of phone calls. However the
response from staff was very good and they were able to turn around the questions
in a quick easy manner through email or phone. The goals are to increase
revenue, maximize use of staff, and improve efficiencies in the system.
Glen Posusta suggested that some of the school board members be invited to the
next meeting between the school and city staff.
5. Consent Agenda:
A. Consideration of approving payment of bills for April 8`11. Recommendation:
Approve the bill and purchase card registers for a total amount of $772,488.76.
B. Consideration of approving new hires and departures for City departments.
Recommendation: Ratify new hires and terminations for Streets, MCC, and
DMV.
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C. Consideration of approving an application for temporary on -sale liquor licenses
for the Monticello Lions Club for Riverfest for the dates of July 13 -14, 2013.
Recommendation: Approve the applications for temporary on -sale liquor
licenses for the Monticello Lions Club for Riverfest 2013.
D. Consideration of adopting Resolution #2013 -016 calling for the public hearing for
the West 7th Street Extension, City Project No. 12CO02 to be moved to April 22,
2013. Recommendation: Adopt Resolution #2013 -016 calling for the public
hearing to be held April 22, 2013 for the West 7th Street Extension, City Project
No. 12C002.
E. Consideration of adopting Ordinance #576 amending the Monticello Zoning
Ordinance, Section 2.4 — Specific Review Procedure & Requirements. THIS
ITEM WAS REMOVED FROM THE CONSENT AGENDA.
F. Consideration of adopting Resolution #2013 -017 supporting state legislation
related to Street Improvement Districts. THIS ITEM WAS REMOVED FROM
THE CONSENT AGENDA.
G. Consideration of adopting Resolution 42013 -019 committing local matching
funds for MAP -21 federal funding approved for construction of the TH 25 /
CSAH 75 Intersection Improvements, City Project 100009. THIS ITEM WAS
REMOVED FROM THE CONSENT AGENDA.
H. Consideration of adopting Resolution #2013 -020 approving a 5% deferred interest
benefit level for 2012 and 2013 for the Monticello Fire Relief Association. THIS
ITEM WAS REMOVED FROM THE CONSENT AGENDA.
GLEN POSUSTA MOVED TO APPROVE THE CONSENT AGENDA WITH THE
REMOVAL OF ITEMS E, F, G AND H. TOM PERRAULT SECONDED THE
MOTION. MOTION CARRIED 5 -0.
6. Consideration of items removed from the consent agenda for discussion
5E. Consideration of adopting Ordinance #576 amending the Monticello Zoning
Ordinance, Section 2.4 — Specific Review Procedure & Requirements
Tom Perrault removed this itern to ask about the wording in regard to residential and/or
commercial zoning changes. Angela Schumann explained that this amendment is based
on wording in state statutes and this is a correction to the new zoning ordinance where
wording was switched around between two sections. He also had a question on the
meeting date where this was reviewed by the Planning Commission.
LLOYD HILGART MOVED TO ADOPT ORDINANCE 9576 AMENDING SECTION
2.4 OF THE MONTICELLO ZONING CODE AS PRESENTED BASED ON THE
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FINDINGS IN PLANNING COMMISSION RESOLUTION #2013 -015. GLEN
POSUSTA SECONDED THE MOTION. MOTION CARRIED 5 -0.
SF. Consideration of adopting Resolution #2013 -017 supporting state legislation
related to Street Improvement Districts
Jeff O'Neill provided background on the proposed legislation to allow cities to create
street improvement districts which could provide another means for funding maintenance
improvements for streets. The League of MN Cities is asking for support from local
governments for this legislation. Clint Herbst commented that he and Glen Posusta had
talked to the Chamber director and some of its members and do not feel that this is
something they would want to enact in Monticello. Bret Weiss explained that this
legislation does not require cities to implement street improvement districts; this would
be up to individual cities to determine whether they would want to use this method of
funding. Clint Herbst stated that he feels that this is a lazy way of paying for street
improvements. He feels that the present system of funding streets is adequate and
requires councils to do their homework before assessing for improvements. Bret Weiss
did ask Council to refrain from sending a letter in opposition to this legislation. There are
a number of organizations that support this legislation and he feels that action could
impact the city indirectly. Glen Posusta noted that this legislation has been proposed for
awhile and has been turned down a number of times at the legislature. Bret Weiss
explained that it generally was turned down because it was thought of as another tax.
However, it does provide a method of funding for those cases where the Chapter 429
statutes are difficult to apply in terms of benefit. Glen stated that he was concerned that
the City could choose to draw the district around only the business areas and charge the
fee to only businesses. Bret stated that this would be the decision of the City council and
that the fee can only be collected for a 20 year period. It was further discussed that by
using general tax dollars to fund street improvements, businesses would pay a higher
amount of the costs than if it was collected as a fee.
Chamber Director Sandy Suchy thanked Council Members Glen Posusta and Clint Herbst
for meeting with chamber members. She commented that the chamber businesses feel
that this legislation is just another tax and could be detrimental to businesses. Sandy
Suchy commented that, if there are issues with the current statutes, the focus should be on
fixing what isn't working.
Lloyd Hilgart asked Bret Weiss to give an example of where this might be useful. Lloyd
asked if it be used for a pathway on the Monte Club hill. Bret Weiss explained that this
legislation is meant for street maintenance and constriction. If the city were to do an
overlay or street rehabilitation, the city currently charges a set amount to the residential
properties through an assessment. Instead of the assessment process, wider this
legislation the city could set up a district of the parcels to be included and charge a set fee
over a number of years (up to 20 years).
GLEN POSUSTA MOVED FOR ALTERNATIVE #2 DENYING SUPPORT FOR
LEGISLATION RELATED TO STREET IMPROVEMENT DISTRICTS AND TO
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SEND A LETTER FROM COUNCIL OPPOSING THE LEGISLATION. CLINT
HERBST SECONDED THE MOTION. MOTION CARRIED 5 -0.
Lloyd Hilgart commented that he sees this legislation as another possible method of
collecting money through the tax levy where everyone pays a portion. Clint Herbst
expressed his concern over how such a tax district would be set up and whether that
would be equitable. Jeff O'Neill pointed out that, under this legislation, you could
actually charge properties for a share of the costs on a street project even if they don't
immediately adjoin the street. Bret Weiss added an explanation on how this might apply
for a project involving collector roads, where there might not be properties to assess.
Many of the city collector streets do not have properties fronting on them which will
reduce the opportunity to collect assessments and a higher percentage of the cost will be
paid by general city funds.
Tom Perrault stated that his understanding is that the legislation is still being worked on
and there may be further changes. He does not support the legislation.
5G. Consideration of adopting Resolution #2013 -019 committing local matching funds
for MAP -21 federal funding approved for construction of the TH 25 / CSAH 75
Intersection Improvements, City Project 100009
Bret Weiss talked about this request to commit to the minimum local funding match of
$450,000 as required to receive the federal funding of $1,200,000, which has been
approved by the state through the local initiative program. Bret Weiss explained that the
council is being asked to adopt the resolution accepting the funding match. When the
city was awarded the local initiative funding, they were informed of a requirement to
apply for alternate funding through the CIMS (corridor investment management system)
program. Whether or not the city would qualify for some additional funding, we would
still receive the $450,000 as long as the application is submitted. Bret Weiss explained
that he did some checking on the alternate funding because he did not feel that the project
would be a high priority for the CIMS funds. When Bret Weiss contacted the state aid
engineer, he was informed that this project would probably be a good candidate for
consideration for the funding. Bret Weiss explained to council that he was looking for
their support in applying for additional funding of up to $850,000 above the original
$450,000 in order to extend the median and signal improvements to the RR tracks on
Hwy 25. Bret displayed a drawing showing the area of Hwy 25 and CSAH 75 that has
received funding. If the City was interested in applying for additional funding, at the
same time as applying for the $450,000, there is the possibility of obtaining funds that
could be used toward improvements south of the 25/75 intersection along Hwy 25 in the
Third Street area; these improvements were identified as part of the Embracing
Downtown project. Either way there would be costs of about $10,000 involved with the
application process, and the city could possibly garner more funding toward
improvements along State Highway 25.
Glen Posusta state that he is not convinced that closing 3`a Street on Hwy 25 is the
answer. Clint Herbst feels that the state should be taking care of the improvements and
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not asking the city to pay for this. Bret Weiss explained that there is a limited amount of
funds that are provided for projects and if the city received the funds, the state would be
paying for the improvements. When the City begins work on the downtown
redevelopment, it will be necessary to close 3`d Street and construct a signal at 4"' Street
to direct traffic to one location and to improve pedestrian crossing of TH 25. If the city
wants to take care of congestion in the downtown, that would be up to the city to direct
those improvements.
Lloyd Hilgart asked when the application for the additional funding is due. Bret Weiss
noted that is due by the end of April. Bret reiterated that staff just recently found out that
there is a requirement to apply for a second round of funding with this match. Staff was
attempting to determine if there was a possibility of avoiding that second round, but the
state did say that is a requirement in order to receive the $450,000. Tom Perrault
confirmed that the cost of the application would be around $10,000.
LLOYD HILGART MOVED FOR ALTERNATIVE #1 TO ADOPT RESOLUTION
#2013 -019 COMMITTING LOCAL MATCHING FUNDS FOR MAP -21 FEDERAL
FUNDING APPROVED FOR CONSTRUCTION OF THE TH25 /CSAH 75
INTERSECTION IMPROVEMENTS, CITY PROJECT NO. 100009, AND
AUTHORIZING APPLICATION FOR ALTERNATIVE FUNDING FOR THE
$450,000 MATCH AT AN ESTIMATED COST OF $10,000. BRIAN STUMPF
SECONDED THE MOTION. MOTION CARRIED 4 -1 WITH GLEN POSUSTA
VOTING IN OPPOSITION.
5K Consideration of adopting Resolution #2013 -020 approving a 5% deferred interest
benefit level for 2012 and 2013 for the Monticello Fire Relief Association
Lloyd Hilgart wanted further explanation why Council is asked to approve this request.
John Bauer explained that the state now requires the council to approve the funding
percent; in the past this was handled between the Fire Relief Association and the State
Auditor's office. Deferred interest is applied to payments received by firefighters when
they are eligible for retirement pay up to the level approved by the Fire Relief
Association Board of Trustees. Clint Herbst confirmed that the 5% percent is a
maximum interest level and would be dependent on the investment.
BRIAN STUMPF MOVED FOR ALTERNATIVE #1 TO ADOPT RESOLUTION
#2013 -020 APPROVING A 5% MAXIMUM DEFERRED INTEREST BENEFIT
LEVEL FOR THE MONTICELLO FIRE RELIEF ASSOCIATION FOR 2012 AND
2013, EFFECTIVE AFTER APRIL 8, 2013. GLEN POSUSTA SECONDED THE
MOTION. MOTION CARRIED 5 -0.
7. Consideration of adopting Resolution #2013 -018 authorizing the sale of bonds for
2013 capital expenditure purchases
Wayne Oberg explained that council is being asked to authorize the sale of bonds for
2013 at the lowest bid that was submitted by Harvest Bank for total interest of
City Council Minutes —April 8, 2013 Page 6
$33,362.50 on the $500,000 bond. Other qualified bidders were Bremer Bank with total
interest of $44,704.44 and Bank of Elk River with total interest of $43,112.21. Wayne
Oberg explained that the rate is quite good and recommends that Council proceed at this
time. Glen Posusta asked if it there would be any advantage to waiting until the city
issues bonds for the Waste Water Treatment Facility improvements. Wayne Oberg said
that it is not possible to know if the rates would be higher or lower when they are ready
for that bond sale. Glen Posusta asked why the city is not bonding for the West 7`I' Street
project. Wayne Oberg explained the funding sources that are being used on that project.
GLEN POSUSTA MOVED FOR ALTERNATIVE #1 TO ADOPT RESOLUTION
#2013 -018 APPROVING CERTIFICATE OF INDEBTEDNESS SALE IN THE
AMOUNT OF $500,000 PLUS $33,362.50 INTEREST AWARDED TO THE LOWEST
BIDDER, HARVEST BANK. LLOYD HILGART SECONDED THE MOTION.
MOTION CARRIED 5 -0.
8. Added items
• Monte Club Hill — Clint Herbst talked about the blog comments received by the
Monticello Times regarding the discussion that the city recently held with IRET
Properties for possible development of the Monte Club Hill. He wanted to snake
the public aware that this was a chance for the city to listen to a proposal and no
decision was made. Clint Herbst felt it might be worth asking the Parks
Commission to meet and discuss ideas for possible uses of the Monte Club Hill.
Clint Herbst also invited the public to contact council members with their
concerns about the Monte Club Hill.
• National Guard return — Council complimented the MCC and community for the
nice job they did in welcoming the National Guard troops back to Monticello.
9. Adiournment
TOM PERRAULT MOVED TO ADJOURN THE MEETING AT 8:44 P.M. LLOYD
HILGART SECONDED THE MOTION. MOTION CARRIED 5 -0.
Recorder: Catherine M. Shuman
Approved: April 22, 2013
Attests:
C y tninistrator
City Cbuncil Minutes —April 8, 2013 Page 7