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City Council Minutes 12-09-2013MINUTES REGULAR MEETING — MONTICELLO CITY COUNCIL Monday, December 9, 2013 — 7 p.m. Mississippi Room, Monticello Community Center Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta Absent: Brian Stumpf 1. Call to Order and Pledge of Allegiance Mayor Herbst called the meeting to order at 7:01 p.m. and declared a quorum present. The Pledge of Allegiance was recited. 2A. Approval of Minutes — November 25, 2013 Special Meeting TOM PERRAULT MOVED TO ACCEPT THE NOVEMBER 25, 2013 SPECIAL MEETING MINUTES AS PRESENTED. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 4 -0. 2B. Approval of Minutes — November 25, 2013 Special Joint CC /PC Meeting TOM PERRAULT MOVED TO ACCEPT THE NOVEMBER 23, 2013 SPECIAL JOINT MEETING AS PRESENTED. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 4 -0. 2C. Approval of Minutes — November 25, 2013 Regular Meeting GLEN POSUSTA MOVED TO ACCEPT THE NOVEMBER 25, 2013 REGULAR MEETING MINUTES AS PRESENTED. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 4 -0. 3. Consideration of adding items to the agenda • Clint Herbst reported that a closed meeting was held prior to this meeting, where council discussed the City Administrator's performance which was generally positive. • FiberNet Update (Jeff O'Neill) • Snow plowing at Timber Ridge townhomes (Clint Herbst) 4. Citizen comments, public service announcements, updates a. Citizen Comments: None b. Public Service Announcements: City Council Minutes — December 9, 2013 Page 1 1) Skate with Santa (12/15) — Kitty Baltos announced that Skate with Santa and Mrs. Claus will be held from 12 to 2 p.m. at Moose Sherritt Ice Arena on Sunday, December 15th. Kitty Baltos also talked about Home for the.Holidays which went well, although had lower attendance due to the cold temperatures. 2) Frostbite Challenge (1/11 -12) — Angela Schumann reported on the activities planned for Frostbite Challenge to be held January 11 and 12, 2014. Some of the primary events are the medallion hunt, snow golf tournament, vintage snowmobile show and swap meet, pond hockey tournament, and ice fishing contest on Pelican Lake. All events are published on the Chamber website at www.frostbitechallenge.org. C. Updates: 1) Monticello Library (Deb Luken) — Deb Luken serves as the manager of the Monticello Great River Regional Library. Deb reported that circulation statistics are decreasing, which is an overall trend in public libraries. However Monticello is third in usage in the Great River Regional Library system. Deb talked about the programming that they offer, of which most is paid for with city dollars. Clint Herbst commented that he was invited to a recent Library board meeting and he was pleasantly surprised by all the offerings of the Monticello Library. He would like to see the library website posted on Channel 12. Jeff O'Neill commented that books and materials are available from any library in the system through the website. Jeff O'Neill asked Deb to speak briefly about Friends of the Library. Deb stated that Friends of the Library supplements needs of the library that are not provided by the Great River Regional Library system or the city. They hold two major fundraisers each year and accept community donations. They meet about once a month and welcome new members. 2) FiberNet Update — Jeff O'Neill introduced Myles McGrath, who works with the FiberNet business community since he started about six weeks ago. Myles McGrath summarized his background in public administration and economic development, which tie in nicely with his work at FiberNet. Currently he is working with about 131 business accounts and would like to see that number double or even triple. 5. Consent Agenda: A. Consideration of approving payment of bills for December 9th. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. City Council Minutes — December 9, 2013 Page 2 B. Consideration of approving new hires and departures for City departments. Recommendation: Ratify new hires and terminations for MCC and Parks. C. Consideration of calling for a special meeting on December 23rd for approval of bills. Recommendation: Call for a special meeting on December 23, 2013 at 7:30 a.m. for approving bills and any other business that arises. D. Consideration of renewing terms for Planning Commission and IEDC representatives. Recommendation: Approve renewal of terms on the IEDC for Joni Pawelk, Zona Gutzwiller, Don Roberts, and Wayne Elam expiring December 31, 2016, and on the Planning Commission for Charlotte Gabler and Brad Fyle expiring December 31, 2016. E. Consideration of approving 2014 Schedule for Council and Commission meetings. Recommendation: Approve the 2014 Schedule for Council and Commission meetings as presented. F. Consideration of approving City Facility Business Hours for 2014. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. G. Consideration of adopting Resolution #2013 -099 approving decertification of Tax Increment Financing District No. 1 -6. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. H. Consideration of approving a license agreement and amendment to conditional use permit for Carcone Addition/West Metro. Recommendation: Approve a license agreement for use of city right of way for development of roadway, path, landscaping, and parking lot improvements, and PUD adjustment related to sales and display for Lot 1, Block 2 of Carcone Addition/West Metro. I. Consideration of adopting Resolution #2013 -102 approving an agreement with MnDOT for installing battery backups at the 7t11 Street and Oakwood Drive signals at TH 25. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEMS A, F, G, AND I. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 4 -0. 6. Consideration of items removed from the consent agenda for discussion 5A. Consideration of approving payment of bills for December 9th Glen Posusta asked about the reimbursement for Monticello Industrial Park. Cathy Shuman explained this was a reimbursement for interest that was miscalculated on Shawn City Council Minutes — December 9, 2013 Page 3 Weinand's property assessments. Glen also asked about payment to Purcell Plumbing for supplies and wondering where this took place. Wayne Oberg confirmed that was work done at the Liquor Store and that covered parts supplied with the repair that was made. GLEN POSUSTA MOVED TO APPROVE THE BILL AND PURCHASE CARD REGISTERS FOR A TOTAL AMOUNT OF $3621103.03. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 4 -0. 5F. Consideration of approving City Facility Business Hours for 2014 Tom Perrault wanted to know why they were removing the seasonal hours during the summer at MCC. Kitty Baltos explained that customers had been requesting the hours be kept the same year round and there was only about one hour difference overall. Staff has been adjusted to match hours of customer use. LLOYD HILGART MOVED TO APPROVE THE CITY FACILITY BUSINESS HOURS FOR 2014 AS PRESENTED. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 4 -0. 5G. Consideration of adopting Resolution #2013 -099 approving decertification of Tax Increment Financing District No. 1 -6 Tom Perrault wanted a clarification on some wording in the resolution regarding calculation of excess tax increment. Angela Schumann explained excess increment is that collected above the authorized amount in the budget. TIF 1 -6 is not expected to generate any excess increment and the resolution language is correct as listed. LLOYD HILGART MOVED TO ADOPT RESOLUTION #2013 -099 APPROVING DECERTIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 1 -6. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 4 -0. 5I. Consideration of adopting Resolution #2013 -102 approving an agreement with MnDOT for installing battery backups at the 7h Street and Oakwood Drive signals at TH 25 Clint Herbst asked about the engineering costs of 8% that are listed in the agreement. Shibani Bisson explained that the state is charging the city for engineering work related to setting up specifications for the battery backups. Clint Herbst feels that this seems rather exorbitant and unnecessary. CLINT HERBST MOVED TO ADOPT RESOLUTION #2013 -102 APPROVING AN AGREEMENT WITH MN /DOT FOR INSTALLING BATTERY BACKUPS FOR HIGHTWAY 25 SIGNALS AT 7TH STREET AND AT OAKWOOD DRIVE. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 4 -0. City Council Minutes — December 9, 2013 Page 4 7. Public Hearing - Consideration of adopting Ordinance #587 amending the City Fee Schedule for 2014 and adopting Summary Ordinance #587A for publication Jeff O'Neill asked council if they had any questions regarding the proposed fee schedule. Clint Herbst asked about the planter with stand for the cemetery. Tom Pawelk said that covers the cost of the planters. Clint Herbst asked if that creates more work. Tom Pawelk said it actually helps by keeping a consistency in the types of planters for maintaining the cemetery. Tom Perrault asked about the $20 proposed fee for Final Bill processing, wanting to know if that would be indicated on the utility bill so the customer knows what they are being charged for. Wayne Oberg explained that is for any finaled bill, but does not apply to landlords that are transitioning between tenants. Clint Herbst indicated that he does not favor this fee because rental properties already get charged with an annual rental license. This might be one more thing that creates a hardship for the rental industry. Clint Herbst feels this fee isn't a bad thing, but we should be careful that we don't add too many costs for doing business. Tom Perrault asked how it would be implemented. Wayne Oberg explained that when customers call in for a final move -out, they will be informed that this fee will be charged for reading the meter and creating the final bill. The city will also include information on this new charge with the next billing cycle. Glen Posusta asked how the permit works for moving a mobile home. Ron Hackenmueller explained that it is required for a mover to apply for a permit before they can move a mobile home. Glen Posusta asked if there is potential for someone to move a mobile home without getting a permit. Ron Hackenmueller stated that he is not aware of any movers that have not applied for a permit. Mayor Herbst opened the public hearing. There were no comments so the public hearing was closed. Tom Perrault asked about the change in the park dedication fee with calculation based on an appraisal of the land. Angela Schumann explained that this brings the city's fee in compliance with the state statutes. Tom Perrault asked if the city would pay for the appraisal that may be required. Angela Schumann stated the city would not be responsible for that. LLOYD HILGART MOVED FOR ALTERNATIVE #1 FOR BOTH DECISIONS TO ADOPT ORDINANCE #587 APPROVING THE 2014 FEE SCHEDULE AS SUBMITTED EFFECTIVE JANUARY 1, 20149 AND TO ADOPT SUMMARY ORDINANCE #587A FOR PUBLICATION. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED 4 -0. 8. Public Hearing - Consideration of adopting Resolution #2013 -100 establishing the final Tax Levy for 2014 City Council Minutes — December 9, 2013 Page 5 Wayne Oberg explained that he is going to present information for both the tax levy and the budget as part of the Truth in Taxation hearing. He started out by noting the dates by which the city must certify its levy. Wayne Oberg compared the tax levy, CPI and population of the city from 2003 to 2013. The city has been very conservative in its tax levy over the years in comparison to the annual consumer price index. Next Wayne Oberg compared tax capacity values and tax capacity rates and discussed the changes from 2012 to 2013 and again from 2013 to 2014. In 2014 the tax capacity value is dropping 2.16% and the corresponding tax capacity rate increases by about 5 %. Wayne Oberg talked about the tax capacity for Xcel, which dropped in value by about $30 million, and the subsequent impact on the tax capacity rate and levy. Clint Herbst pointed out that the tax values for Xcel are subject to variations from year to year. Wayne Oberg showed an example of that tax impact on a residential property relative to the estimated market value. Wayne provided some comparisons of tax rates between taxing districts for the city, county, and school district. Wayne Oberg discussed the proposed tax levy which goes toward debt service (28 %), MCC operations (4 %), and general fund expenses (68 %). The proposed levy increase of 3.16% (or $250,000) would mainly support debt service payments for 2014 with a small portion going toward general fund and MCC operations. Wayne Oberg discussed several reasons to support the proposed 3.16% levy increase: make up for unpaid assessments, higher debt service payments, and replace impact fees from development. Wayne Oberg noted that 81 % of the revenues for the city come from property taxes, which is dependent on the amount levied by the city. Wayne Oberg briefly explained the general fund and MCC fund expenditure budgets supported by the tax levy. He also reviewed the anticipated capital items that are included in the 2014 budget, but most are not dependent on property tax dollars. Wayne Oberg discussed the new sales tax exemption impact and showed estimated amounts that the city could potentially save by not having to pay sales tax. One area that the city could save significantly may be in electric costs; however, Xcel has applied for a rate increase which would decrease the anticipated savings. In the general fund, the city could see up to $60,000 in sales tax savings. Mayor Herbst opened the public hearing. There were no comments so the public hearing was closed. LLOYD HILGART MOVED FOR ALTERNATIVE #1 TO ADOPT RESOLUTION #2013 -100 ESTABLISHING THE CITY PROPERTY TAX LEVY FOR 2014 AT $8,1501000. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 4 -0. Tom Perrault noted that property taxes would be lower than they were two years ago. 9. Consideration of adopting Resolution #2013 -101 approving the 2014 City budget Wayne Oberg went through the resolution that is proposed for the 2014 budget. He explained the appropriations which total $32,808,364. The total expenditure budget for all funds shown in Section 2 is $30,088,837. The proposed transfers are listed in Section City Council Minutes — December 9, 2013 Page 6 3 for projects that are in process. This section could be amended during the year. Angela Schumann explained the purchases for Bertram Chain of Lakes property noting that Phase IV closing will be taking place December 17t", and Phase V snatch has been approved but the acquisition has not yet been approved. Clint Herbst commented on the appropriation for replacing the MCC gyro floor and hoping that the city will be able to get the National Guard to participate in the cost of that. He stated it doesn't seem that the one -time amount they paid originally would cover maintenance costs down the road. Wayne Oberg stated that he and Kitty Baltos have met several times with the National Guard. The agreement in place makes the city responsible for repair and maintenance. Any items over a certain amount ($5000 with conditions), which could be considered a capital item, would be split 90% city and 10% national guard. The city would pursue funding reimbursements when possible. Wayne Oberg reviewed Section 4 which are amendments to the Capital Improvement Bond for 2014; these must be approved by Council. Wayne also discussed Section 5 of the resolution which authorizes certain budget actions: a. Removes prior commitments and assignments, except those required by GASB, from fund balance classifications. b. Amends the list of reimbursable equipment in Resolution #2013 -018 to include with approximate costs as follows: 1) blacktop planer - $22,000; 2) router - $22,000; 3) air compressor - $20,000. C. Approves a I% cost -of- living adjustment to full -time, part -time (excluding MCC staff and volunteer fire personnel), and seasonal employees for the pay period commencing on January 11, 2014. d. Establishes the 2014 monthly family health and dental insurance benefits at $1218.20 and $120.72, respectively; and the 2014 monthly single health and dental insurance benefits at $515.50 and $41.59, respectively. Tom Perrault questioned the park budget wondering if a Frisbee golf course would be included in the $17,500 in improvements for Monte Club Hill. Tom Pawelk said that there are discussions whether Bertram Chain of Lakes Park or the Monte Club Hill would be the best site for Frisbee golf. Tom Pawelk explained there will be meetings held to talk about various park proposals for 2014 and they would be brought to council for approval. Tom Perrault commented that he doesn't agree with everything in the budget but he supports it overall. GLEN POSUSTA MOVED FOR ALTERNATIVE #1 TO ADOPT RESOLUTION #2013 -101 APPROVING THE 2014 EXPENDITURE BUDGET AT $32,808,364. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 4 -0. 10. Consideration of approving an Amendment to the Operating Agreement Exhibit for the Fourth Addendum to the Memorandum of Understanding between Wright County, City of Monticello, and YMCA of Greater Twin Cities, expanding the use of and hours of Camp Manitou site improvements City Council Minutes — December 9, 2013 Page 7 Angela Schumann explained that council is being asked to approve an amendment to the Operating Agreement exhibit of the Fourth Addendum of the Memorandum of Understanding, which would expand the use and hours of Camp Manitou site improvements that are being proposed by the YMCA. The YMCA would like to expand the hours of operation beyond base Camp Manitou hours as established in the ground lease exhibit to the Fourth Addendum to the Memorandum of Understanding. This expansion would include use of the proposed capital improvements in the lease area by YMCA members, and would open use to the public as described in the amendment. Angela talked about some of the proposed improvements that are planned by the YMCA on land they will be leasing from the city and county. Public uses and accessibility are detailed within this amendment to the Operating Agreement, which is intended to be included as an exhibit with the Fourth Addendum to the Memorandum of Understanding that was approved at the November 1211 council meeting. Tom Perrault questioned Section 3.6 of the Operating Agreement, wondering if the YMCA should be required to provide a surety bond, as is normally required by the city. Angela Schumann explained that the city would not require surety in this case because the improvements are to be made on land that is at this time currently owned by the YMCA, and the majority of these improvements are not a shared cost. Tom Perrault also asked about Section 7.2 of the Operating Agreement relating to reservations of buildings in locked areas. Angela Schumann talked about some discussions that had been held related to the process for reservations that may occur and defining insurance liability. Kitty Baltos explained that this was noted and will be open to further discussion by the Bertram Chain of Lakes subcommittee for Activities and Programming. GLEN POSUSTA MOVED FOR ALTERNATIVE #1 TO APPROVE AN AMENDMENT TO THE OPERATING AGREEMENT EXHIBIT FOR THE FOURTH ADDENDUM TO THE MEMORANDUM OF UNDERSTANDING BETWEEN WRIGHT COUNTY, CITY OF MONTICELLO, AND YMCA OF GREATER TWIN CITIES, EXPANDING THE USE OF SITE IMPROVEMENTS AND HOURS AT CAMP MANITOU, AND TO APPROVE THE COMPANION AMENDMENT AND AUTHENTICATION OF EXHIBITS. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 4 -0. 11. Added items • Plowing at Timber Ridge — Clint Herbst asked which sections in Timber Ridge development were being plowed by the city. Tom Moores explained the route that is used, which only includes public streets and not undeveloped or private sections. • Cost of adding yellow flashing left turn sib — Clint Herbst commented that someone had told him that the cost would be about $400 per signal for adding City Council Minutes — December 9, 2013 Page 8 yellow flashing turn lights. He asked Shibani Bisson to talk about the anticipated cost. Shibani Bisson stated that the upgrade for each signal would cost the city between $20,000 to $30,000, which is just a portion of the total cost for a signal upgrade. • Mayor Herbst wished a Merry Christmas to everyone. 12. Adjournment TOM PERRAULT MOVED TO ADJOURN THE MEETING AT 8:37 P.M. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 4 -0. Recorder: Catherine M. Shuman MW Approved: January 13, 2014 Attest: 0-4- �7 C' inistrator City Council Minutes — December 9, 2013 Page 9