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City Council Minutes 02-24-2014MINUTES REGULAR MEETING — MONTICELLO CITY COUNCIL Monday, February 24, 2014 — 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 7:01 p.m. and declared a quorum present. The Pledge of Allegiance was recited. 2A. Approval of Minutes — February 10, 2014 Regular Meeting TOM PERRAULT MOVED TO ACCEPT THE FEBRUARY 10, 2014 REGULAR MEETING MINUTES AS CORRECTED. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5 -0. 3. Consideration of adding items to the agenda • None 4. Citizen comments, public service announcements, and updates A. Citizen Comments: 1) Rick Adamski from 102 Oakview Circle stated that he has been dealing with frozen water pipes, which were unthawed by Monticello Plumbing & Heating at a cost of about $490. Matt Theisen from the Water Department was also helpful in getting the problem resolved. He mentioned that one other house on Oakview Circle also had frozen water pipes. Water and sewer improvements were made some years ago on this street, and he is wondering why the pipes are freezing now. Matt Theisen stated that as of today they have had 12 houses with frozen water lines in the city. In Adamski's case, the lines were frozen about two feet inside the standpipe out to the street. Matt Theisen commented that the frost has gone down further than any other year he can remember. The water lines in this area were lowered when the reconstruction was done as they had a history of freezing prior to that. The city is now recommending running water to keep the lines open for this neighborhood or in areas susceptible to freezing. Glen Posusta asked why the city isn't using heat to keep the lines open. Matt Theisen stated that they can't get a welder due to the liability, and other sources for handling frozen lines are so busy they don't have time. City Council Minutes — February 24, 2014 Page 1 Clint Herbst asked if the city could pay the bill for these residents. Wayne Oberg commented that he contacted the City Attorney who said the city should not use city funds to pay for private services, as our ordinance makes the residents responsible for the lines between their house and the standpipe, which is private property. Jeff O'Neill added that the lines from the houses may have been installed by a private company and not by the city. With the Adamski house, most of the line is frozen in the right - of -way and street. Clint Herbst commented that he would like to see the city, as a first resource, attempt to thaw out the lines and help the residents before calling in outside services. Matt Theisen explained that the Water Department will help with frozen lines in the right of way and street. They usually use hot water to open the pipes, although there are instances where they could not get a pipe open with water. Matt Theisen noted that he has several professional services that he works with when needed. In these cases, the plumber or welder turns the bill into the city. Matt Theisen explained the freeze -ups he found in the two houses on Oakview Circle. He noted that they have since talked to the surrounding property owners and suggested that they turn on their water to keep their pipes from freezing. Clint Herbst stated that he feels that the citizens should be entitled to assistance with the unusually cold year, especially when part of the frozen area is located in the city street. Wayne Oberg suggested that the city cap the amount that they will reimburse. Glen Posusta agreed and recommended maybe using a percentage. CLINT HERBST MOVED TO REIMBURSE PROPERTY OWNERS TO COVER COSTS FOR REMEDIATION OF FROZEN LINES IN CITY RIGHT OF WAY BETWEEN THE STANDPIPE AND CITY MAIN LINES, PROVIDED THAT THEY WORK WITH THE CITY TO FIX THE PROBLEM. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5 -0. 2) Rick Adamski also mentioned that Caribou Coffee on Hwy 25 has not been clearing their sidewalks along Hwy 25. City staff will check it out. 2) Public Service Announcements: 1) Spring Tree Sale (2/28) — Tom Pawelk invited city residents to order trees for their property. The order form was sent out with the water bills and residents can order up to three trees at a cost of $35 each. The deadline for ordering is Friday, February 28th. 2) Public Open House I -94 Reconstruction Project (3/3) — Angela Schumann stated that MnDOT will be holding an open house on Monday, March Yd at MCC from 3:30 -5:30 p.m. for businesses and 6 -8:30 p.m. for residents. City Council Minutes — February 24, 2014 Page 2 MnDOT will discuss the I -94 reconstruction project between County Road 18 and Hwy 25 overpasses. The project is anticipated to begin in April. 3) Breakfast with the Bunny — Angela Schumann reported that Swan River PTO is hosting Breakfast with the Easter Bunny as a fundraiser on April 12, 2014 at the Monticello Community Center. More details to come. 3) Updates: 1) Highway Liquors report and DMV report Wayne Oberg led off the presentation on both of these departments. He talked about the mission statement and core values established for the DMV. In 2013 the DMV had revenues and expenditures of $456,384 and $301,500 respectively with net change of $154,884. The annual transaction count was 62,420 which was a slight decrease from 2012. Brian Stumpf asked if any dealer accounts were dropped or what affected the decrease. Wayne Oberg said no accounts were lost and the manager felt the change was due to the economy more than anything else. Clint Herbst asked whether the DMV office would be authorized to issue full driver's licenses in the future. Wayne Oberg will have Manager Ann Eckman contact the Mayor on the status of that. Oberg noted that the DMV does handle simple driver's license transactions that don't require a photo. Hi Way Liquors also established a mission statement. Wayne Oberg commented that the real mission of the liquor store is to make money. Manager Randall Johnsen went through revenues by various categories resulting in increases in each area over the past five years: 16% for beer, 24% for liquor, and 50% for wine. The city's store is third in the state for municipal liquor stores with only one store. Randall Johnsen pointed out that the store broke the $5 million mark in sales last year. Beer is the most popular sale item at 50% of sales with liquor sales at 30% and wine at 17 %. Craft beers are definitely a hot trend. Annual sales have slowly increased since 2008, which is a good steady trend. This shows that the prices are good and customers are getting good service. Randall Johnsen also showed the gross profit margin was 26% for 2013, which is a good average that has been maintained over the past years. Randall Johnsen announced the Spring Wine Tasting on Friday, May 2nd followed by a wine sale during the following week. Hi Way Liquors has been named as the best liquor store in the Great River Readers' Choice awards for several years. City Council Minutes — February 24, 2014 Page 3 Lloyd Hilgart asked if Randall Johnsen had net profit numbers. Wayne Oberg noted that the net change between revenues and expenditures was $688,021 for 2013. Wayne Oberg noted that the annual DMV survey from the public was quite positive and thanked the DMV and liquor store staff for their service. 2) Clint Herbst thanked the MCC for hosting the Winter Block Party that was held on Saturday, February 22nd. It was a great success with many people attending. Kitty Baltos commented that they plan to do this again next year. 5. Consent Agenda: A. Consideration of approving payment of bills for February 24th. Recommendation: Approve the bill and purchase card registers for payment in the total amount of $515,645.89. B. Consideration of approving new hires and departures for City departments. Recommendation: Ratify new hires and terminations for MCC and Streets. C. Consideration of approving a Conditional Use Permit for Vehicle Sales and Rental in a B -4 (regional business) District for Lot 1, Block 1, 90t' Street 2nd Addition (3801 Chelsea Rd W). Applicant: Dell, Inc. /Quality RV. Recommendation: Approve the Conditional Use Permit for Vehicle Sales and Rental in a B -4 (Regional Business) District for Lot 1, Block 1, 90th Street 2nd Addition for Quality RV /Dell, Inc., based on findings in Planning Commission Resolution #2014 -010 and subject to conditions in Exhibit Z as follows. • The applicant will prepare a certificate of survey and submit it for final review prior to occupancy. • Signage plans will be submitted for permits in accordance with sign ordinance allowances and processing. D. Consideration of adopting Ordinance #588 amending the Monticello Zoning Ordinance, Chapter 6 — Non - Conformities, Section 6.2. Applicant: City of Monticello. Recommendation: Adopt Ordinance #588 amending Zoning Ordinance, Section 6.2 as follows: Section 62 — Authority to Continue (Non- Conformities) (A) Legally conforming existing structures and uses in existence on the effective date of this ordinance as denoted in Section 1.4 which become non - conforming to this ordinance shall *of be considered legally non- conforming, but irk and shall be treated as follows: (1) A use which is no longer permitted due to a change in zoning shall be considered a legally non- conforming use subject to all conditions for such City Council Minutes — February 24, 2014 Page 4 use as outlined in this ordinance, and shall not be expanded, except that legally non - conforming owner - occupied residential uses may be expanded to improve livability, provided the expansion meets all other applicable conditions of the zoning district in which the residential use is located and does not increase any existing non - conforming condition on the property, including the number of residential units in a building (2) A structure which becomes non - conforming to a required setback or setbacks shall be viewed as a legally non - conforming structure. suloet to -the fouo► . (a► The ;. a.....,,..r. ek or ether. k s ss.r the .,t............... hi L . y 9u*e"6& E. Consideration of adopting Resolution #2014 -012 accepting a petition and calling for a public hearing for vacation of a portion of Otter Creek Road right -of -way and for vacation of drainage and utility easements ( Outlot A and Lots 1 -2, Block ],Pine View Addition). Applicant: K.K. Construction, Inc./Kjellberg, Kent. Recommendation: Adopt Resolation #2014 -012 accepting petition from K.K. Construction, Inc. and calling for a public hearing on March 24, 2014 to consider vacation of a portion of Otter Creek Road right -of -way and vacation of drainage and utility easements over Outlot A and Lots 1 and 2, Block 1, Pine View Addition. F. Consideration of adopting Interim Ordinance #590 allowing places of Public Assembly on a temporary basis as a principal or accessory use in a B -3 (Highway Business) District by Interim Use Permit and approving an Interim Use Permit for a Place of Public Assembly in a B -3 District. Applicant: Faith Family Life Center. Recommendation: Decision 1: Adopt Interim Ordinance #590 allowing places of Public Assembly on a temporary basis as a principal or accessory use in a B -3 (Highway Business) District by interim use permit; Decision 2: Approve an Interim Use Permit for a Place of Public Assembly in a B -3 District for Faith Family Life Center. Angela Schumann noted that Item 5F received unanimous recommendation for both decisions from the Planning Commission at their special meeting. G. Consideration of extending the Public Works Director interim assignments and compensation for an additional six months. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. H. Consideration of reducing the retainage to MBI for Sludge Dewatering Facility Improvements, City Project No. 12C003. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. City Council Minutes — February 24, 2014 Page 5 Consideration of approving a request for one -year extension of a Conditional Use Permit for an antenna support structure in a R -2 (Single and Two - Family Residential) District, and a request for one -year extension of a Conditional Use Permit for co- location of wireless telecommunication service antenna. Applicants: City of Monticello and Verizon Wireless. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEMS G, H, AND I. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 5 -0. 6. Consideration of items removed from the consent asenda for discussion SG. Consideration of extending the Public Works Director interim assignments and compensation for an additional six months Tom Perrault removed this item because he wants more information on the work that is being done for the extra compensation and that the compensation matches the work levels. Glen Posusta stated that he would also like some verification of the workload change for the employees that are involved. Jeff O'Neill indicated that staff is asking for extra time to look at the workload. He inquired if Council would like a pay equity analysis completed based on the past six months. GLEN POSUSTA MOVED TO TABLE UNTIL THE MARCH 10TH, 2014 COUNCIL MEETING AND DIRECT THE CITY ADMINISTRATOR TO PERFORM AN ANALYSIS TO DETERMINE THAT THE WORK NORMALLY PERFORMED BY THE PUBLIC WORKS DIRECTOR IS BEING HANDLED AND TO REVIEW THE PAY EQUITY POINTS FOR THE EMPLOYEES INVOLVED. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0. Clint Herbst commented that this had been discussed at a Personnel Committee meeting and consensus was to look at the job over a full year rather than six months. He concurs with the decision to look at the pay equity points at this time. 5H. Consideration of reducing the retainage to MBI for Sludge Dewatering Facility Improvements, City Project No. 12CO03 Glen Posusta pulled this item because he wanted to know why the city would reduce the retainage if the city's policy is to retain 5% to make sure the work gets completed. Glen Posusta also commented on repair /replacement of the digester lid. Bret Weiss explained that the city normally holds 5% retainage but the contractor can request a reduction, which is somewhat typical. The city still holds a bond on the project and there are additional funds available beyond the retainage, so there is no concern over the job being completed. Bret Weiss stated that MBI has been very responsive to getting the work done and has completed everything that has been asked of them. Bret Weiss City Council Minutes — February 24, 2014 Page 6 also indicated they are aware of the need to come back to Council with a recommendation on the digester tank for the future. BRIAN STUMPF MOVED TO APPROVE THE REDUCTION IN RETAINAGE TO 2.5% ($33,672.28) AND AUTHORIZE PAYMENT OF $33,672.28 TO MUNICIPAL BUILDERS, INC. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 4 -1 WITH GLEN POSUSTA VOTING IN OPPOSITION. 51 Consideration of approving a request for one-year extension of a Conditional Use Permit for an antenna support structure in a R -2 (Single and Two - Family Residential) District, and a request for one-year extension of a Conditional Use Permit for co- location of wireless telecommunication service antenna. Applicants: City of Monticello and Verizon Wireless Tom Perrault pulled this item to get an update on the status of the tower project. Jeff O'Neill explained that the CUP expires after six months and Verizon wished to extend the CUP as the project bidding process is not complete. O'Neill noted that it is expected to bring something to Council before long. GLEN POSUSTA MOVED TO APPROVE BOTH DECISIONS 1 AND 2 EXTENDING FOR ONE YEAR THE SEPTEMBER 9r ", 2013 CONDITIONAL USE PERMIT FOR AN ANTENNA SUPPORT STRUCTURE IN AN R -2 (SINGLE AND TWO FAMILY RESIDENTIAL) DISTRICT AND EXTENDING FOR ONE YEAR THE SEPTEMBER 9TH, 2013 CONDITIONAL USE PERMIT FOR CO- LOCATION OF WIRELESS TELECOMMUNICATION SERVICE ANTENNA FOR VERIZON WIRELESS; BOTH APPROVALS SUBJECT TO ALL PREVIOUS CONDITIONS. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 4 -1 WITH LLOYD HILGART VOTING IN OPPOSITION. 7. Restular Agenda: A. Public Hearing — Consideration of adopting Resolution #2014 -013 approving the Phosphorus Reduction Facility Plan Amendment for the Wastewater Treatment Facility to maintain compliance with NPDES permit requirements Bret Weiss of WSB introduced Tom Roushar who presented this item for consideration of approval of the Phosphorus Reduction Facility Plan Amendment. Tom Roushar explained that the Minnesota Pollution Control Agency (MNPCA) requires a public hearing to be held as part of the process for approving the Facility Plan Amendment. Tom Roushar provided a slide presentation regarding the new phosphorus reduction regulations for the NPDES permit. He reviewed the existing NPDES permit and phosphorus levels currently allowed at the Wastewater Treatment Facility. He discussed the timeline for submitting the plan amendment and to meet compliance with the new standards, with the Plan Amendment to be submitted by March 1, 2014 and the final compliance date set at December 31, 2018. Tom Roushar discussed the alternatives for phosphorus City Council Minutes — February 24, 2014 Page 7 reduction by either a biological or chemical method, with the chemical method recommended. Tom Roushar next went through a cost analysis of biological and chemical phosphorus reduction methods, comparing capital cost, operation and maintenance costs, and a present worth analysis to determine cost - effectiveness. Under the chemical method (chem. P), the annual cost for operation and maintenance is estimated at $72,500. The capital costs are expected to total over $1 million. However, the overall chem P process was less costly. Implementation of chem P will require: installation of two mixers in each of the three SBR basins; installation of a chemical feed system which includes a building to house two bulk chemical storage tanks, a day tank, a scale, and chemical feed pumps; and chemical feed distribution to each of the three SBR basins. The capital cost also includes new diffuser membranes for the SBR tanks, which is not related to the phosphorus reduction, but those membranes would need to be replaced and the cost could be absorbed into an anticipated low cost loan. Next steps will include determination of financing, determination of the schedule to meet compliance, and implementation of a rate increase to cover ongoing costs. Tom Roushar noted that the public hearing must address the effect on water and sewer rates for the phosphorus reduction implementation and ongoing costs. It's estimated that the rate increase would amount to $.33/748 gallons or approximately 10% based on volume. The city could contemplate adding a surcharge to users that generate higher phosphorus levels, such as car washes. Clint Herbst asked if the city would have a better chance for a grant award if they act as soon as possible to implement the changes. Brian Stumpf asked if there was a possibility that the state would be inundated with requests and would decide not require the reduction in phosphorus levels. Bret Weiss stated that this requirement is driven by the federal government and the phosphorus reduction program will not go away. Bret Weiss explained that the city could adopt a timeline to start the capital improvements in the near future to have the structure in place before the compliance deadline, and then start using the chemicals when they are needed. WSB will be looking into the grant program. Tom Perrault had some questions about the facility plan amendment document. He wondered if the chemicals would have any adverse reactions or cause corrosion to the equipment. Tom Roushar stated that the chemicals should not cause corrosion but the polymers used in the sludge dewatering process may need to be adjusted if there are adverse reactions. Tom Roushar noted that his staff will be going over the draft copy to finalize it before submitting to the MNPCA. Final copies will be provided for Council and city staff. Mayor Herbst opened the public hearing. As there were no comments, the public hearing was closed. City Council Minutes — February 24, 2014 Page 8 LLOYD HILGART MOVED FOR ALTERNATIVE #1 TO ADOPT RESOLUTION #2014 -013 ACCEPTING THE PHOSPHORUS REDUCTION FACILITY PLAN AMENDMENT FOR THE MONTICELLO WASTEWATER TREATMENT FACILITY AND DIRECT WSB TO SUBMIT THE PLAN AMENDMENT TO MNPCA BY MARCH 1sT, 2014. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 5 -0. In addition, WSB is requested to update the city's placement on the Public Facilities Authority Project Priority List and research the possibility of obtaining a grant through the Point Source Implementation Grant program. City Council would be interested in speeding up the implementation of the phosphorus reduction requirements. B. Consideration of adopting Resolution #2014 -014 authorizing submission of a 2014 Outdoor Recreation Grant application for 50% match grant funding for land acquisition at the Bertram Chain of Lakes Regional Park Angela Schumann introduced this item with a presentation related to the proposed Phase VIII land acquisition and grant application for funding the acquisition. Staff is proposing to submit two grant applications, of which one would support the acquisition of the remaining 10.62 acres of Parcel 1 and the other would facilitate the acquisition of 20 acres of Parcel 2, which totals 39.89 acres. The acreage proposed in the grant application represents critical land area for the active recreational area of the park, which would become the Bertram Chain of Lakes Regional Athletic Complex. Angela Schumann pointed out that the Outdoor Recreation Grant program is the only one that funds acquisition for active recreation area development. If awarded, this would be a matching grant with the city and county each providing a share of $282,750 plus closing and appraisal costs. Rationale for the grant applications include: $350,736 in Outdoor Recreation grant funds is available, maximum award for a single application is $100,000, applications must include at least a 50% match, and two applications provide an opportunity to access up to $200,000 in grant awards. Brian Stumpf expressed his thanks for the work that the county and city has put into all of the grant applications. BRIAN STUMPF FOR ALTERNATIVE #1 TO ADOPT RESOLUTION #2414- 014 AUTHORIZING SUBMISSION OF TWO GRANT APPLICATIONS THROUGH THE 2014 OUTDOOR RECREATION GRANT PROGRAM ON BEHALF OF THE CITY OF MONTICELLO AND WRIGHT COUNTY. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 4 -1 WITH TOM PERRAULT VOTING IN OPPOSITION. City Council Minutes — February 24, 2014 Page 9 Tom Perrault asked about the grant application resolution as to whether the city has a purchase agreement in place for the land acquisitions. Angela Schumann confirmed that the City and/or County does not have a purchase agreement with the YMCA. 8. Added items No items were added to the agenda. 9. Adjournment TOM PERRAULT MOVED TO ADJOURN THE MEETING AT 8:45 P.M. GLEN POSUSTA SECONDED THE MEETING. MOTION CARRIED 5 -0. Recorder: Catherine M. Shuman Cpe Approved: March 10, 2014 Attest: Ci inistrator City Council Minutes — February 24, 2014 Page 10