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City Council Agenda Packet 12-14-2009AGENDA REGULAR MEETING – MONTICELLO CITY COUNCIL Monday, December 14, 2009 – 7 p.m. Mayor: Clint Herbst Council Members: Tom Perrault, Glen Posusta, Brian Stumpf, Susie Wojchouski 1. Call to Order and Pledge of Allegiance 2A. Approval of Minutes - November 23, 2009 Regular Meeting 3. Consideration of adding items to the agenda 4. Citizen comments, public service announcements and Council updates a. Citizen Comments: b. Public Service Announcements: 1) MCC New Year’s Eve (12/31) 2) Holiday hours for city buildings b. Council Updates: 1) MnDOT Bridge Replacement Project 1) Liquor Store 5. Consent Agenda: A. Consideration of approving new hires and departures for City departments B. Consideration of approving new 5-year lease agreement with Christian Social Services, Inc. for the food shelf and clothing center C. Consideration of adopting Resolution #2009-75 to accept a contribution of $250 from Tom Perrault to go into the General Fund D. Consideration of adopting Resolution #2009-76 approving final payment to LaTour Construction and accepting work on Chelsea Road from County Road 18 to Fallon Avenue, City Project No. 06C031 E. Consideration of adopting Resolution #2009-77 approving final payment to R. L. Larson Construction and accepting work on I-94/County Road 18 Interchange, City Project No. 04C001 F. Consideration of adopting Resolution #2009-74 approving final payment to Progressive Stucco and accepting siding and stucco work on the Monticello Fire Hall, City Project No. 09C009 G. Consideration of adopting Resolution #2009-78 approving final payments to contractors Morton Buildings, Wes Olson Electric, and Purcell Plumbing and Heating, and accepting work on the FiberNet Monticello Garage, City Project No. 09C006 SPECIAL MEETING - CLOSED 5:45 p.m. – Closed Meeting: Personnel Matter H. Consideration of authorizing purchase of vehicles for FiberNet Monticello I. Consideration of establishing a sales account manager position with FiberNet Monticello J. Consideration of authorizing sale of the 1973 Chevrolet Fire Truck through an auction service K. Consideration of appointing Ron Hackenmueller as Chief Building Official L. Consideration of renewing contract with Peterson-Grimsmo Chapel for cemetery caretaker services at Riverside Cemetery M. Consideration of approving renewal of pawn shop license for Michael Helm dba Monticello Pawn, Gun and Bargain Center, 1219 TH 25 N. Consideration of preliminary approval of fire contract renewals with the City of Otsego and Silver Creek Township O. Consideration of approving 2010 Wright County Annual Highway Maintenance agreement P. Consideration of adopting Resolution #2009-73 approving a Gambling Premises Permit application for Monticello Youth Hockey Program to conduct gambling at Chatter’s Restaurant and Bar Q. Consideration of approving a contractor for repairing newly discovered hailstorm-related damage on various City buildings (costs covered entirely by insurance) 6. Consideration of items removed from the consent agenda for discussion. 7. Public Hearing - Consideration of denial of Rental License and authorization for City Attorney to take action related to non-compliance with licensing requirements 8. Public Hearing – Consideration of adopting Resolution #2009-72 to approve final tax levy and 2010 budget 9. Consideration of approving the 2010-2014 Capital Improvement Plan for the City of Monticello 10. Consideration of authorizing City staff to facilitate Interim (6 month) Outdoor Storage of Large Commercial Vehicles at 101 Chelsea Road (old bowling alley site) 11. Consideration of authorizing the firm of Flaherty Hood to provide services regarding Legislative Advocacy pertaining to the permanent storage of Nuclear Waste at the Monticello Nuclear Generating Plant (MNGP) 12. Consideration of calling for a Special Meeting during the last week of December for approval of bills 13. Approve payment of bills for December 14th 14. Adjournment Council Agenda: 12/14/09 1 5A. Consideration of approving new hires and departures for City departments. (TE) A. REFERENCE AND BACKGROUND: The Council is asked to ratify the hiring and departures of employees that have occurred recently in the departments listed. It is recommended that the Council officially ratify the hiring/departure of all listed employees including part-time and seasonal workers. A.1 BUDGET IMPACT: None A.2 STAFF WORK LOAD IMPACT: Until the positions are filled again, existing staff would pick up those hours. B. ALTERNATIVE ACTIONS: 1. Ratify the hire/departures of the employees as identified on the attached list. C. RECOMMENDATION: By statute the City Council has the authority to approve all hires/departures. There is no other recommendation but for the Council to exercise the authority given to them by state statute. D. SUPPORTING DATA: List of new/terminated employees. Name Title Department Effective Date Class Name Reason Department Last Day Worked Class Kayla Tibboel Involuntary MCC 11/24/09 PT NEW EMPLOYEES TERMINATING EMPLOYEES 5A council_employee list.xls: 12/11/2009 City Council Agenda: 12/14/09 1 5B. Consideration of approving new 5-Year Lease Agreement with Christian Social Services, Inc for the food shelf and clothing center (TK) A. REFERENCE AND BACKGROUND: The lease agreement between Christian Social Services, Inc. and the City of Monticello for the clothing and food shelf area expired at the end of November 2009. Staff reviewed the past lease and made one adjustment to the lease. The adjustment is under condition #10, where the last paragraph was added. All other conditions and the term are the same as in the past. This lease was sent to Christian Social Services, Inc and they have agreed to the terms and have signed the lease pending City Council approval. A1. Budget Impact: The lease requires an annual lease payment of $1, so the budget impact is of no significance. A2. Staff Workload Impact: There is no staff workload with this lease agreement. B. ALTERNATIVE ACTIONS: 1. Motion to approve the 5-year lease agreement with Christian Social Services, Inc. 2. Motion to deny the lease agreement with Christian Social Services, Inc. C. STAFF RECOMMENDATION: City staff recommends Alternative 1 to approve the lease agreement. D. SUPPORTING DATA: Copy of the lease agreement Page 1 LEASE This lease made and entered into this day of November, 2009, by and between the City of Monticello (hereinafter referred to as “Lessor”) and Christian Social Services, Inc. (hereinafter referred to as “Lessee”). Lessor leases and lets to Lessee that part of the premises situated at Monticello, Minnesota, more particularly described as follows: That portion of the building located at 213 Cedar Street containing approximately 1,271 square feet as described in Exhibit A attached hereto. Legal description is Lot 4 and 5, Block 34, Original Plat, City of Monticello, Minnesota. For a period of five (5) years commencing November 2009 and ending on November 2014 unless otherwise earlier terminated as provided herein, on the following terms and conditions: 1. Lessee agrees to pay, without demand by Lessor, as and for rent the sum of $1.00 annually provided, however, that in case said premises, without fault or neglect on the part of the Lessee, is destroyed or is so injured by the elements or any other cause as to be untenable or unfit for occupancy, Lessee is not liable thereafter to pay rent to said Lessors; and the Lessee shall thereupon quit and surrender possession of said premises. 2. Quiet Enjoyment. Lessors covenant that on paying the rent and performing the covenants herein contained, Lessee shall peacefully and quietly have, hold, and enjoy the demised premises for the agreed term. 3. Use of Premises. The demised premises shall not be used by Lessee for any purpose, through wholly legal, other than for the purpose of operating a non-profit charitable clothing and food center. 4. Alterations and Improvements. Lessee shall make no alterations to the buildings on the demised premises or construct any building or make other improvements on the demised premises without prior written consent of Lessor. All alterations, changes, and improvements built, constructed, or placed on the demised premises by Lessee with the exception of fixtures removable without damage to the premises and movable personal property shall, unless otherwise provided by written agreement between Lessor and Lessee, be the property of Lessor and remain on the demised premises at the expiration or sooner termination of this lease. 5. Insurance. Lessor shall maintain insurance coverage on the building structure, and the Lessee shall be responsible for maintaining insurance coverage on any personal property or contents within leased area. Lessee shall also provide and maintain in force public liability insurance coverage of not less than Three Hundred Thousand Dollars ($300,000.00) and name the Lessor as a co-insured. Page 2 6. Waiver of Subrogation. All insurance policies carried by either party pursuant to this lease shall contain clauses by which the insurer waives all subrogation rights which it may have against either party hereto and against their respective insurers. The parties hereto, on behalf of themselves and their respective insurers, waive such subrogation rights. In addition to the foregoing, the Lessee agrees to name Lessor as an additional insured on any insurance policies required hereunder. 7. Hold Harmless. Lessee shall hold Lessor harmless from any damage suffered by any person arising out of Lessee’s use or control of leased premises and shall defend Lessor against any claims against Lessor arising from Lessee’s use or control over the leased premises. 8. Taxes. Lessor will be responsible for the real estate taxes during the terms of this lease. 9. Assignment and Subletting. Lessee shall not assign this lease or sublet any concession or license to use the premises or any part thereof. Any assignment or subletting without written permission of Lessor shall be void, and the lease shall, at Lessee’s option, be terminated in compliance with the default provision herein. 10. Termination. Lessee agrees to give Lessor thirty (30) days written notice before the expiration of this lease of Lessee’s intention to vacate at the end of this lease. If the demised premises, or any part thereof, shall be partially damaged by fire or other casualty, the Lessor, at its option, may terminate this lease prior to the termination date. Lessee shall not seek damages or contribution from the Lessor for any damages incurred as a result of Lessor’s decision not to repair/rebuild the premises. Should the Lessor determine to sell or otherwise dispose of the leased premises, the Lessor may, upon ninety (90) days written notice to Lessee, terminate this lease. In that event, Lessor shall have no obligation to pay relocation or moving expenses to Lessee. 11. Utilities. Lessee shall be responsible for all utility costs associated with the leased premises, including heat, electricity, sewer, and water. 12. Maintenance and Repair. Lessee shall be responsible for all normal repairs and incidental maintenance of the leased space, including, but not limited to such items as annual furnace and air conditioning checkups; miscellaneous adjustments to equipment, doors, windows; miscellaneous small repairs, leaky faucets, water heater adjustments, incidental painting and finishing, cleaning. Major mechanical equipment repairs and/or replacement required during the lease shall be subject to negotiation between Lessor and Lessee, depending on the expected life of the equipment repaired or replaced, pro-rated over lease term. Lessor shall keep the exterior of the premises in reasonable repair during the term of the lease and shall maintain the common parking areas of the premise. Lessee shall be responsible for maintenance of sidewalks adjacent to premises. Page 3 13. Right of Entry. Lessor and Lessor’s agents reserve the right to enter the demised premises during normal business hours or by appointment during the term of this lease and any renewal thereof for the purpose of inspecting the premises and all building improvements thereon and whenever necessary to make repairs and alterations to the demised premises. 14. Surrender of Premises. At the expiration of this lease, Lessee shall quit and surrender the premises hereby demised in as good a state and condition as they were at the commencement of this lease, reasonable wear and use and damage by elements excepted. 15. Default. If any default is made in payment of rent, or any part thereof, at the times herein before specified, or if any default is made in performance of or compliance with any other term or condition hereof, the lease, at the option of the Lessor, may be terminated. Lessee agrees to pay all of the Lessor’s costs, including reasonable attorney’s fees, in the event legal action is necessary to obtain possession of the premises. 16. Applicable Law. Lessee shall abide by all applicable statutes, administrative regulations, and ordinances covering Lessee’s use of the property. This lease shall be construed according to the laws of the State of Minnesota. 17. Heirs and Assigns. The covenants and conditions herein contained shall apply to and bind the heirs, legal representatives, and assigns of the parties hereto, and all covenants are to be construed as conditions of this lease. IN WITNESS WHEREOF, the parties hereto have executed this lease this 14th day of December, 2009. Jeff O’Neill, City Administrator Lessor, City of Monticello Christian Social Services, Inc. Lessee Council Agenda: 12/14/09 1 5C. Consideration of adopting Resolution #2009-75 to accept a contribution of $250 from Tom Perrault to go into the General Fund. (CS) A. REFERENCE AND BACKGROUND: The City has received a donation of $250 from Tom Perrault to go to the General Fund As required by state statute, if the City accepts the donation of funds, the City Council needs to adopt a resolution specifying the amount of the donation and its use. B. ALTERNATIVE ACTIONS: 1. Approve the contribution and authorize use of funds as specified. 2. Do not approve the contributions and return the funds to the donors. C. STAFF RECOMMENDATION: Staff recommendation is to adopt the resolution accepting the contributions. D. SUPPORTING DATA: Resolution No. 2009-75 City of Monticello RESOLUTION NO. 2009-75 RESOLUTION APPROVING CONTRIBUTIONS WHEREAS, the City of Monticello is generally authorized to accept contributions of real and personal property pursuant to Minnesota Statutes Sections 465.03 and 465.04 for the benefit of its citizens and is specifically authorized to maintain such property for the benefit of its citizens in accordance with the terms prescribed by the donor. Said gifts may be limited under provisions of MN Statutes Section 471.895. WHEREAS, the following persons and or entities have offered to contribute contributions or gifts to the City as listed: DONOR/ENTITY DESCRIPTION VALUE Tom Perrault Cash (Dec) $250 WHEREAS, all said contributions are intended to aid the City in establishing facilities, operations or programs within the city’s jurisdiction either alone or in cooperation with others, as allowed by law; and WHEREAS, the City Council hereby finds that it is appropriate to accept the contributions offered. NOW THEREFORE BE IT RESOLVED by the City Council of Monticello as follows: 1. The contributions described above are hereby accepted by the City of Monticello. 2. The contributions described above will be used as designated by the donor. This may entail reimbursing or allocating the money to another entity that will utilize the funds for the following stated purpose: DONOR/ENTITY RECIPIENT PURPOSE Tom Perrault City of Monticello General fund Adopted by the City Council of Monticello this 14th day of December, 2009. ______________________________ Mayor Clint Herbst ATTEST: ______________________________________ Jeff O’Neill, City Administrator City Council Agenda: 12/14/09 1 5D. Consideration of adopting Resolution #2009-76 approving final payment to LaTour Construction and accepting work on Chelsea Road from County Road 18 to Fallon Avenue, City Project No. 06C031 (WSB,BW) A. REFERENCE AND BACKGROUND: The Chelsea Road Reconstruction Project included the reconstruction of Chelsea Road from CSAH 18 to west of Fallon Avenue and realigning the Chelsea Road/Fallon Avenue intersection. The project was substantially completed in October 2008 with the final lift of pavement placed on Chelsea Road and Fallon Avenue. Remaining work that has since been completed included adjusting the elevations of certain manhole castings and gate valves to meet the specifications for the project and minor punch list items. The contractor completed this work late this fall. The Council is being requested to accept the project as complete and approve final payment to LaTour Construction, Inc. in the amount of $40,190.12. The following paperwork will need to be submitted for final payment to be released: 1. Satisfactory showing that the contractor has complied with the provisions of Minnesota Statutes 290.92 requiring withholding state income tax (IC134 forms). 2. Evidence in the form of an affidavit that all claims against the contractor by reasons of the contract have been fully paid or satisfactorily secured (lien waivers). 3. Consent of Surety to Final Payment certification from the contractor’s surety. 4. Two-year maintenance bond. It should be noted that the maintenance bond will start and extend two years from the date of final acceptance of the project by the City Council. The final payment request represents the final quantities completed on the contract and the release of the retainage on the contract. All punch list items assembled for this project have been completed, and WSB & Associates, Inc. is indicating the project is complete and ready for final payment in accordance with the contract and City of Monticello Engineering and Construction Standards. The project was funded through special assessments, development agreements (Monticello Industrial Park), utility funds, and street reconstruction funds. An assessment hearing was held in October 2007 with the final assessment roll adopted and certified to the County in 2007. This final construction cost was included in the adopted assessment roll. City Council Agenda: 12/14/09 2 B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution #2009-76 to accept the improvements and approve the final payment of $40,190.12 to LaTour Construction, Inc. subject to receipt of final paperwork. 2. Do not adopt the Resolution to accept the improvements and approve final payment. C. STAFF RECOMMENDATION: Staff recommends selecting Alternative #1. By approving this project by the end of 2009, assessments will be deferred to 2013 for the Monticello Industrial Park as per the development agreement. In order to not further delay the assessments, staff recommends approving the project tonight. D. SUPPORTING DATA: Resolution 2009-76 Letter from WSB & Associates, Inc. Copy of Construction Pay Voucher No. 12 (Final) CITY OF MONTICELLO RESOLUTION NO. 2009-76 APPROVING FINAL PAYMENT AND ACCEPTING IMPROVEMENTS CHELSEA ROAD FROM COUNTY ROAD 18 TO FALLON AVENUE CITY PROJECT NO. 06C031 WHEREAS, pursuant to a written contract with the City of Monticello awarded to LaTour Construction Inc. of Maple Lake, Minnesota, the contractor has satisfactorily completed the work for the improvements to Chelsea Road and other appurtenant work in accordance with the contract; NOW THEREFORE, BE IT RESOLVED BY THE CITY OF MONTICELLO, MINESOTA that the work completed under said contract is hereby accepted and approved and that the Mayor and City Clerk are hereby directed to issue a proper order for the final payment on such contract subject to receipt of the following: 1) Satisfactory showing that the contractor has complied with the provisions of Minnesota Statutes 290.92 requiring withholding state income tax; 2) Evidence in the form of an affidavit that all claims against the contractor by reasons of the contract have been fully paid or satisfactorily secured; 3) Consent of Surety to Final Payment certification from the contractor’s surety; and 4) Two year maintenance bond to extend two years from the date of acceptance of the project by the City Council. Adopted by the Monticello City Council this 14th day of December, 2009. ___________________________ Clint Herbst, Mayor ATTEST: ___________________________ Jeff O’Neill, City Administrator City Council Agenda: 12/14/09 1 5E. Consideration of adopting Resolution #2009-77 approving final payment to R. L. Larson Construction and accepting work on I-94/County Road 18 Interchange, City Project No. 04C001 (WSB, BW) A. REFERENCE AND BACKGROUND: Due to the complexity of the I-94 project, there have been delays in collecting the information needed by WSB and City staff to complete the agenda item. The full item will be delivered to Council prior to the meeting on Monday night (or sooner if available). A1. Budget Impact: A2. Staff Workload Impact: B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution 2009-77 to approve final payment to R. L. Larson Construction and accept work on the I94/County Road 18 Project 04C001. 2. Motion to deny the Resolution. C. STAFF RECOMMENDATION: City staff recommends… D. SUPPORTING DATA: Resolution 2009-77 [other items to be listed in final copy] City Council Agenda: 12/14/09 1 5F. Consideration of adopting Resolution #2009-74 approving final payment to Progressive Stucco and accepting the stucco and siding work completed on the Monticello Fire Hall, City Project #09C009. (BP) A. REFERENCE AND BACKGROUND: The Monticello Fire Hall stucco and siding project, City Project #09C009, has been completed. The contractor’s final total of the project is $34,150.00. This amount includes the council-approved change order for removal and replacement of the rotted sheeting on the walls, roof, monument sign and outside enclosure at a rate of $35/hour totaling 90 hours. The removal/replacement materials were purchased by the Building Department totaling $770.01 as well as the replacement of the electrical fixtures & GFI totaling $160.00. To date the city has compensated Progressive Stucco $17,494.50, leaving a balance of $16,655.50. This balance shall represent the final payment and upon council approval and acceptance of the project, the warranty period will begin. Based upon on-site observations and the data comprising this project, it is staff’s opinion that the work contracted has been completed as indicated, the quality of the work is in accordance with the contract documents and the contractor is entitled to payment of the balance of $16,655.50. A1. Budget Impact: Final payment of $16,655.50. A2. Staff Workload Impact: Building inspections and materials pickup. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution 2009-74 approving final payment of $16,655.50 to Progressive Stucco and accepting siding and stucco work on the Monticello Fire Hall, City Project No. 09C009. 2. Motion to deny final payment. C. STAFF RECOMMENDATION: City staff recommends Alternative #1 for approval of final payment of $16,655.50 to Progressive Stucco as outlined. The contractor’s work has been completed and inspected by staff which meets quality, standards, and our expectations. D. SUPPORTING DATA: Resolution 2009-74 Lien waiver from Progressive Stucco Copy of final invoice CITY OF MONTICELLO RESOLUTION NO. 2009-74 APPROVING FINAL PAYMENT AND ACCEPTING IMPROVEMENTS FOR SIDING AND STUCCO WORK AT MONTICELLO FIRE HALL CITY PROJECT NO. 09C009 WHEREAS, pursuant to a written contract with the City of Monticello awarded to Progressive Stucco, Inc. of Big Lake, Minnesota, the contractor has satisfactorily completed the work for the siding and stucco and other appurtenant work at the Monticello Fire Hall in accordance with the contract; NOW THEREFORE, BE IT RESOLVED BY THE CITY OF MONTICELLO, MINESOTA that the work completed under said contract is hereby accepted and approved and that the Mayor and City Clerk are hereby directed to issue a proper order for the final payment on such contract subject to receipt of the following: 1) Final invoice and completed W-9; 2) Lien waiver from contractor; 3) 10-year Warranty, as stated in contract. Adopted by the Monticello City Council this 14th day of December, 2009. ___________________________ Clint Herbst, Mayor ATTEST: ___________________________ Jeff O’Neill, City Administrator City Council Agenda: 12/14/09 1 5G. Consideration of adopting Resolution #2009-78 approving final payment to contractors Morton Buildings, Wes Olson Electric and Purcell Plumbing and accepting work on the FiberNet Monticello Garage, City Project No. 09C006. (BP, DP) A. REFERENCE AND BACKGROUND: City Project #09C006 FiberNet Monticello Garage has been completed. The final total of the project is $107,075.24. This amount includes the council approved change orders to modify from electric infrared to an electric boiler with in-floor heating system. To date the city has compensated the contractors as follows: CONTRACTOR CONTRACTED TOTAL DOWN PAYMENT FINAL PAYMENT DUE Morton Buildings Incorporated $78,394.00 $46,080.00 $32,314.00 Purcell Plumbing and Heating $9,536.00 $2,000.00 $7,536.00 Wes Olson Electric $10,186.00 $2,650.00 $7,536.00 Building Permits charged to FiberNet $7,398.69 Public Works, installation materials; (water/sewer/flammable trap) $1,560.55 TOTAL $107,075.24 $50,730.00 $47,386.00 The contractor balances of $32,314.00, $7,536.00, and $7,536.00 respectively, shall represent the final payment. Upon Council approval and acceptance of the project, the warranty periods will begin. Based upon on-site observations and the data comprising this project, it is staff’s opinion that the work contracted has been completed as indicated, the quality of the work is in accordance with the contract documents and the contractor is entitled to payment of the balances listed above for the FiberNet Monticello Garage Facility. The Public Works Water Department assisted in reducing the total cost by installing the water and sanitary services and the flammable waste trap into the facility, saving approximately $1,500.00. A1. Budget Impact: $32,314.00, $7,536.00, and $7,536.00 respectively, for a total of $47,386.00. Staff time is not included in this cost. A2. Staff Workload Impact: Staff had multiple hours in preparing bids, arranging contractors, construction meetings, inspections, installation of utilities labor, and preparing agendas. City Council Agenda: 12/14/09 2 B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution #2009-78 approving final payments as follows and accepting work on the FiberNet Monticello Garage, City Project No. 09C006. Morton Buildings Incorporated: $32,314.00 Purcell Plumbing and Heating: $ 7,536.00 Wes Olson Electric: $ 7,536.00 2. Motion to deny final payments at this time. C. STAFF RECOMMENDATION: City staff recommends Alternative #1 for approval of final payments to Morton Buildings Incorporated, Purcell Plumbing and Heating, and Wes Olson Electric for contracted services to construct the FiberNet Monticello Garage Facility. D. SUPPORTING DATA: Resolution #2009-78 Morton Buildings Incorporated Invoices Purcell Plumbing and Heating Invoices Wes Olson Electric Invoices Building Permits Materials Invoices CITY OF MONTICELLO RESOLUTION NO. 2009-78 APPROVING FINAL PAYMENT AND ACCEPTING IMPROVEMENTS FOR CONSTRUCTION OF FIBERNET MONTICELLO GARAGE CITY PROJECT NO. 09C006 WHEREAS, pursuant to written contracts with the City of Monticello awarded to Morton Buildings, Wes Olson Electric, and Purcell Plumbing and Heating of Minnesota, the contractors have satisfactorily completed the work for the construction of the FiberNet Monticello Garage and other appurtenant work in accordance with the contracts; NOW THEREFORE, BE IT RESOLVED BY THE CITY OF MONTICELLO, MINESOTA that the work completed under said contracts is hereby accepted and approved and that the Mayor and City Clerk are hereby directed to issue a proper order for the final payment on such contract subject to receipt of the following: 1) Final invoice and completed W-9; 2) Lien waivers or affidavit stating that all claims against the contractor have been fully paid; 3) IC134 verifying withholding of state income tax, if applicable; 4) Warranty, as stated in contract. Adopted by the Monticello City Council this 14th day of December, 2009. ___________________________ Clint Herbst, Mayor ATTEST: ___________________________ Jeff O’Neill, City Administrator City Council Agenda: 12/14/09 1 5H. Consideration of authorizing purchase of vehicles for FiberNet Monticello (JO,DP) A. REFERENCE AND BACKGROUND: City Council is asked to consider authorizing the purchase of two Ford service vans from Morries Buffalo Ford in the amount of $19,338 each and are ready for delivery. The van style is only sold by Ford and is specially suited for the work associated with support technicians making customer site visits. These are relatively small service vehicle that are efficient to operate yet have sufficient capacity to transport necessary equipment and supplies. Unfortunately, there is no longer a Ford Dealer in town from whom to get a quote. The other quote received was from Elk River Ford in the amount of $19,374.28 per vehicle (and requires a 16 week build time). A1. Budget Impact: The purchase of these vehicles is identified in the budget and is at a cost less than the budgeted amount. With these vehicles in place, there are sufficient vehicles to support technician work in the field hooking up customers. Please note that with the reduction in staffing in the Building Department, staff will also be shifting the 1997 Jeep from the Building Department to FiberNet Monticello. Fibernet will be compensating the City at the blue book value for the Jeep. This four-wheel vehicle will provide four-wheel capabilities not available with any other vehicles in the stable. A2. Staff Workload Impact: None. B. ALTERNATIVE ACTIONS: 1. Motion to approve purchase of two vans in the total amount of $38,676 from Morrie’s Buffalo Ford. 2. Motion to deny purchase and seek quotes on an alternative vehicle design from other vendors. In order to buy from a local dealer, Fibernet would need to select a less desirable vehicle design. Some telecommunication companies provide a pick-up with a topper to its technicians, which is an alternative. C. STAFF RECOMMENDATION: City staff recommends Alternative #1 and the FiberNet Advisory Board recommended the purchase at their December board meeting. The van design is specially suited for the intended use, and therefore it is not recommended to buy a different style in order to keep the business in Monticello. At least if the purchase is from Morries’s, it is from a Wright County dealer. D. SUPPORTING DATA: Vehicle Brochure City Council Agenda: 12/14/09 1 5I. Consideration of establishing a sales Account Manager position with FiberNet Monticello (JO, DP, TE) A. REFERENCE AND BACKGROUND: A staffing need has been identified by the FiberNet General Manager requiring establishment of a full-time Account Manager position within FiberNet Monticello. The responsibilities of this position would include managing the sales of FiberNet Monticello products and services. This position would report directly to the FiberNet General Manger. The Account Manager position would be an exempt position with a base salary set between $28,000-$30,000 plus commissions up to $19,200 per year. Due to the initial need to ramp up staff quickly, staff has advertised the opening in anticipation of formal approval of establishment of the position. If the decision is made not to approve the establishment of this position, we will not move forward with interviewing from collected applications. Funding for this position/sales activity has been identified within the boundaries of the financial plan and thus is not an unexpected expense. The FiberNet Advisory Committee and the Personnel Committee have reviewed this request and recommend approval by Council. A1. Budget impact: This is a budgeted position within FiberNet Monticello. The associated full-time salary for this position is estimated at $47,200-$49,200 at 100% of quota. B. ALTERNATIVE ACTIONS: 1. Motion to approve establishing the Account Manager position. 2. Motion to deny establishing the Account Manager position. C. STAFF RECOMMENDATION: The FiberNet Advisory Board, Personnel Committee and Staff recommend Alternative #1 for establishment of the position of Account Manager for FiberNet Monticello for reasons noted above. D. SUPPORTING DATA: Account Manager Job Description Account Manager Commission Plan FiberNet Monticello, Account Manager Commission Plan 9/2009 Commissions will be paid once monthly: Payable at the end of the month following the month earned. (Subject to chargeback) Commissions Available: $19,200 Annually at goal. ($19,200/12+ $1,600 available monthly commissions. Commission Pay Outs: 49% or below of goal= $0 payout 50% or greater performance to goal will have a direct 1/1 payout correlations, capped at 100%. Example: 38% of goal achieved= $0.00 payable (no commissions <50% goal) 52% of goal achieved= $832.00 payable (52% of $1,600) 88% of goal achieved= $1,408.00 payable (88% of $1,600) 100% of goal achieved= $1,600.00 payable (100% of $1,600) New Hire Commission Guarantee: 1st month of employment, guaranteed commission minimum of $1,200.00 (earnings per commission schedule, in excess of guarantee will also be paid) 2nd month of employment, guaranteed commission minimum of $1,000.00 (earnings per commission schedule, in excess of guarantee will also be paid) 3rd month of employment, guaranteed commission minimum of $800.00 (earnings per commission schedule, in excess of guarantee will also be paid) Goal make-up will be determined, jointly by hired individual, GM, City Staff and FiberNet Advisory Board. Re-evaluated semi-annually. Account Manager City of Monticello-FiberNet Exempt Title of Class: Account Manager Effective Date: July 31, 2009 Revised Date: DESCRIPTION OF WORK General Statement of Duties: Performs technical and skilled tasks relating to the sales of FiberNet Monticello products and services. Supervision Received: Works under the general supervision of the Fiber General Manager. Supervision Exercised: None. TYPICAL DUTIES PERFORMED  Provides potential customers with information about FiberNet products and services.  Evaluates the market prospect and present options  Obtains new clients while maintaining and “up selling” a predetermined account list.  Utilizes prospect research and communicates the prospect landscape with staff.  Prepares professional presentations and proposals to perspective clients  Presents and closes business deals  Establishes monthly and quarterly sales goals in mutual agreement with the FiberNet Monticello’s General Manager  Resolves issues involving FiberNet Monticello’s products and services using standard procedures  Works closely with other departments for technical support and advice to resolve issues  Provides timely responses to internal and external customer issues/concerns  Maintains a thorough knowledge of FiberNet Monticello’s product and service offerings  Maintains a thorough knowledge of competitions offerings  Updates prospect list daily  Participates in Marketing Sales Blitz Programs  Maintains Sales Funnel and Weekly Activity Models  Participates in community events  Participates in trade shows and special events KNOWLEDGE, SKILLS AND ABILITIES  Excellent analytical, interpersonal, technical and communication skills  Strong technical knowledge of FiberNet Monticello products and services  Considerable knowledge of competition’s offerings  Ability to meet or exceed sales goals  Excellent verbal and written skills  Considerable knowledge of Microsoft Works, Excel and PowerPoint applications MINIMUM QUALIFICATIONS Must have a high school degree or equivalent. A four-year degree in related field a plus but not required. Two or more years of sales experience is required. Must be a self-starter with strong interpersonal skills and excellent verbal and written communication skills. Must possess and maintain a valid MN Driver’s License. City Council Agenda: 12/14/09 1 5J. Consideration of authorizing sale of 1973 Chevrolet Fire Truck through an auction service (SJ, TK) A. REFERENCE AND BACKGROUND: Earlier this year, the City purchased and placed into service a new fire truck. Now that it is in operation, the fire department no long has use for the City’s 1973 Chevrolet Fire Truck. Therefore, the Fire Department requests approval to sell the 1973 fire truck, which they intend to do through an auction service. Any funds the City receives from this sale could be used as City Council desires. A1. Budget Impact: The funds received would be unbudgeted City revenue and could be used as directed by City Council or put into reserves. A2. Staff Workload Impact: The only staff impact would be for the fire department to transport the truck to the auction. B. ALTERNATIVE ACTIONS: 1. Motion to authorize sale of 1973 fire truck. 2. Motion to deny the sale of 1973 fire truck. C. STAFF RECOMMENDATION: City staff recommends Alternative 1, to authorize the sale of the 1973 Chevrolet fire truck. D. SUPPORTING DATA: Pictures of 1973 fire truck City Council Agenda: 12/14/09 1 5K. Consideration of appointing Ron Hackenmueller as Chief Building Official. (TE) A. REFERENCE AND BACKGROUND: Interviews to appoint a new Chief Building Official were conducted on Wednesday, December 2, 2009. Both Ron Hackenmueller and DJ Hennessey applied for the position and were interviewed. The panel involved in the interviewing process included Mayor Herbst and Councilmembers Wojchouski and Perrault. While the panel was extremely impressed with both applicants, the decision was made to appoint Ron Hackenmueller as the interim Chief Building Official with the recommendation to Council to hire Ron Hackenmueller as the permanent Chief Building Official. Hackenmueller’s past construction experience as well as his proven performance record were key factors in the decision. Hackenmueller has worked in the City of Monticello as a Building Inspector since May of 2006 and has proven himself to be a key member of the Building Department. With qualified candidates, it is recommended that the City Council hire from within the department. If appointed, Mr. Hackenmueller will begin working immediately with the Community Development Director and City Administrator to develop goals and priorities for the Building Department. A1. Budget impact: This position is a budgeted position for 2009 and 2010. Workload relating to start-up of the rental licensing ordinance and storm recovery is past the peak and it does not appear that new construction is gearing up, so no action is proposed at this time for filling the position left vacant with Hackenmueller’s promotion. According to Tom Kelly, this will result in a significant reduction for the Building Department expenditures for 2010. B. ALTERNATIVE ACTIONS: 1. Motion to approve the appointment of Ron Hackenmueller to Chief Building Official. 2. Motion to deny the appointment of Ron Hackenmueller to Chief Building Official and direct staff to advertise externally for the position. C. STAFF RECOMMENDATION: The panel that interviewed the candidates recommends Alternative #1 for the appointment of Ron Hackenmueller to the Chief Building Official position. D. SUPORRTING DATA: Hackenmueller Offer Letter City Council Agenda: 12/14/2009 1 5L. Consideration of renewing contract with Peterson-Grimsmo Chapel for cemetery caretaker services at Riverside Cemetery. (TP) A. REFERENCE AND BACKGROUND: The City has contracted with Peterson-Grimsmo Chapel (Roger Carlson) for caretaker services at Riverside Cemetery for the past six years. We deal closely with funeral homes regarding operations at Riverside Cemetery. In the past, funeral directors had often performed caretaker duties for the Masonic Lodge when they operated Riverside Cemetery. The Peterson-Grimsmo Chapel has performed the caretaker duties well. There are approximately seven main duties for the caretaker at Riverside Cemetery. A copy of the new Agreement for Services for Riverside Cemetery with Peterson-Grimsmo Chapel is enclosed for your review. The past contract with Peterson-Grimsmo Chapel was in the amount of $316 per month. The new agreement with Peterson-Grimsmo Chapel is in the amount of $350 per month. The length of the agreement is for a two-year period of time and is renewable. The agreement may be terminated by either party with a 30-day written notice, with or without reasons. A1. Budget Impact: The increase of $34 per month will be offset with a slight increase in administration rates. B2. Staff Workload Impact: The renewal of this contract will not result in an impact to staff workload. B. ALTERNATIVE ACTIONS: 1. Motion to approve the new Agreement for Services with Peterson-Grimsmo Chapel to perform those duties as listed in the Agreement for Services at Riverside Cemetery for a lump sum of $350 per month. 2. Motion to deny the new Agreement for Services at Riverside Cemetery with Peterson-Grimsmo Chapel. C. STAFF RECOMMENDATION: Staff recommends Alternative #1 to approve the Agreement for Services with Peterson- Grimsmo Chapel as outlined. The duties taken over by Peterson-Grimsmo Chapel can often be outside the normal working hours of the Public Works Department and those duties are within the normal scope of operations for funeral directors and have been performed by funeral directors in the past. City Council Agenda: 12/14/2009 D. SUPPORTING DATA: Copy of Agreement for Services with Peterson-Grimsmo Chapel, including the list of services provided by the Parks Department and the Public Works Administrative Assistant City Council – 12/14/09 1 5M. Consideration of approving renewal of pawn shop license for Michael Helm dba Monticello Pawn, Gun and Bargain Center, 1219 TH 25. (TK) A. REFERENCE AND BACKGROUND: In November of 2007, the City approved the application for a pawn shop license for Michael Helm doing business as Monticello Pawn, Gun and Bargain Center. At that time the City also approved an off-site storage facility at 12081 165th Street in Becker. Due to a clerical oversight the renewal of this license was not approved until February 9, 2009. The license is renewable annually in December. In checking with the Wright County Sheriff’s Department, the City has not been made aware of any issues in the operation of the business that might impact the renewal of the license. However, in checking with the Finance Department, the business owner was delinquent in his payments to the City on the invoices for billable transactions in the amount of $846.95. Mr. Helm was aware of this outstanding bill and paid the City on Wednesday, December 9th. The Community Development Department has inspected the property and finds it to be in compliance with the provisions of his conditional use permit. Recently, the owner installed an electronic reader board in place of his old sign. This was done without acquiring the proper permits from the City. The City has contacted Mr. Helm regarding this issue and he has stated he will apply for the permit and pay the required fees. The Council may have some concern about the timeliness of the payments for the billable transactions. The licensee has a history of being delinquent with his payments. The licensee could allow the monthly bills to accumulate till such time as either his license is up for renewal or the City certifies the delinquent MARS billings to the County Auditor (November). It should be noted that the $25 annual license fee will be billed at the end of December and due in January. The City Attorney has addressed the issue of non- payment of fees and has stated that the non-payment of these fees is a valid basis for not renewing the license. B. ALTERNATIVE ACTIONS: 1. Approve an annual pawn shop license for Michael Helm dba as Monticello Pawn, Gun and Bargain Center located at 1219 TH 25. 2. Do not approve the pawn shop license for Monticello Pawn, Gun and Bargain Center. 3. Other action as directed by the City Council. C. STAFF RECOMMENDATION: Staff recommends that the Council approve the renewal of the Monticello Pawn, Gun and Bargain Center at 1219 TH 25 of the Council’s license for the year 2010. City Council – 12/14/09 2 D. SUPPORTING DATA: None. Council Agenda: 12/14/09 1 5N. Consideration of preliminary approval of fire contract renewals with City of Otsego and Silver Creek Township. (TK, SJ) A. REFERENCE AND BACKGROUND: The current three year contracts for fire protection services for half of Silver Creek Township and a portion of the City of Otsego are set to expire December 31, 2009. The City currently charges $51 per parcel for fire protection coverage, which generates $22,644 from Otsego and $30,855 from Silver Creek Township. In the past, the City has used a formula to calculate the costs per parcel to be charged, which is based on a number of factors including the annual fixed cost to have the fire department available along with the number of man hours spent fighting fires in each jurisdiction. The idea behind this allocation of cost is to try and recoup the City’s cost of having a fire department available to provide coverage and to estimate the number of fires and man hours that will be spent in each jurisdiction based on a three year average. Enclosed with the agenda is a summary of the calculations used to estimate the new contract terms which indicate that between Otsego and Silver Creek, the City should try to generate approximately $41,636 in 2010 and, if this fee was adjusted by 3% annually for 2011 and 2012, the current charge per parcel of $51 is sufficient to cover the City’s costs. Although the City is not currently charging Monticello Township for fire protection services until the year 2011, if anticipated revenue from them is included, this formula would indicate the City should have $129,999 in revenue from all three jurisdictions. The $51 per parcel rate would generate approximately $6,615 more than anticipated costs and would allow for some unforeseen expenditures that could occur over the next three years. Fire Department representatives reviewed this information and are recommending that the City Council adopt the fee schedule of $51 per parcel for the contract renewals effective January 1, 2010. With Council approval, new contracts will be sent to each jurisdiction for a new three year term. A1. Budget Impact: The City’s 2010 budget anticipates revenue of $53,000 and a fire department expenditure budget of $197,210, which these contracts are based on. A2. Staff Workload Impact: On average the fire department responds to 35 calls per year to the City of Otsego and Silver Creek Township. B. ALTERNATIVE ACTIONS: 1. Authorize contract renewals with the City of Otsego and Silver Creek Township for fire protection services at a per parcel rate of $51 for 2011-2013. Council Agenda: 12/14/09 2 2. Approve contract renewals at some other rate to be determined. C. STAFF RECOMMENDATION: It is the recommendation of the Fire Department, Director of Finance, and staff that 3- year fire protection contract renewals be offered to the City of Otsego and Silver Creek Township at a rate of $51 per parcel. While this rate is anticipated to cover the City’s cost over the next three years, future adjustments to this rate may be needed if new fire trucks are purchased or a new or second fire hall is added. The rate proposed has not included any unusual capital expenditures at this time other than normal annual purchases. D. SUPPORTING DATA: Cost allocation summaries City Council Agenda: 12/14/09 1 5O. Consideration of approving 2010 Wright County Annual Highway Maintenance Agreement. (BP,TM) A. REFERENCE AND BACKGROUND: The annual maintenance agreement with Wright County for snow and ice control is up for renewal. It is virtually unchanged from last year precluding compensation. This includes portions of CSAH 75 running from Willow Street east to the intersection of CSAH 18. It also includes snow and ice control on a portion of CSAH 39 West from the City Public Works Facility to the junction of CSAH 75 (Broadway) and a short section of CR 117, approximately two-tenths of a mile long running north from 85th Avenue. The increase from 2009 to 2010 maintenance contract respectively is $1,655.94. A1. Budget Impact: The payment from Wright County this year amounts to $15,675.97. This payment is made to the city in December of the contracted year. Additional expenses are budgeted in “snow and ice”. A2. Staff Workload Impact: There is little impact on staff workload due to no changes in this contract. B. ALTERNATIVE ACTIONS: 1. Motion to approve the 2010 Maintenance Agreement with Wright County as enclosed with compensation of $15,675.97. 2. Motion to deny the new agreement with the county for annual maintenance of snow and ice removal. C. STAFF RECOMMENDATION: City staff recommends Alternative #1 for authorizing approval of the 2010 Maintenance Agreement with Wright County as outlined above. D. SUPPORTING DATA: Letter from Wright County dated 12-1-09 2010 Wright County Highway Maintenance Agreement City Council Agenda: 12/14/09 1 5P. Consideration of adopting Resolution #2009-73 approving a Gambling Premises Permit application for Monticello Youth Hockey Program to conduct gambling at Chatter’s Restaurant and Bar (JO, CS) A. REFERENCE AND BACKGROUND: The Monticello Youth Hockey Program is requesting approval of their Premises Permit Application to conduct gambling at Chatter’s Restaurant and Bar starting January 1, 2010. The group intends to conduct bar bingo at Chatter’s on Monday nights from 6:30 to 9 p.m. James Preusse, MYH Gambling Manager, has completed the necessary applications and submitted a financial report of their current gambling operations at Hawk’s Bar from March 2008 to March 2009. The State Gambling Control Board requires Council to adopt a resolution approving gambling permit applications. City staff does not find any reason that Council would not approve this application. Mr. Preusse is planning to be present at the meeting if Council would have any questions. A1. Budget Impact: none A2. Staff Workload Impact: none B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution #2009-73 approving the Premises Permit Application for Monticello Youth Hockey to conduct gambling at Chatter’s Restaurant and Bar. 2. Motion to deny Resolution #2009-73. C. STAFF RECOMMENDATION: City staff recommends Alternative #1 to adopt the resolution. D. SUPPORTING DATA: Resolution #2009-73 Premises Permit Application Lease for Lawful Gambling Activity Gambling Report – March 2008 to March 2009 CITY OF MONTICELLO RESOLUTION NO. 2009-73 RESOLUTION AUTHORIZING THE APPROVAL OF A CHARITABLE GAMBLING PERMIT WHEREAS, Monticello Youth Hockey Program Inc. has submitted an application to the City Council of Monticello for a charitable gambling Premises Permit to conduct gambling activities at Chatter’s Bar and Restaurant at 4181 Cedar Street in Monticello, Minnesota; and WHEREAS, the Council is not opposed to the gambling permit being issued by the State Gambling Control Board; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL that the application by the Monticello Youth Hockey Program Inc. for a charitable gambling permit to conduct gambling activities at Chatter’s Bar and Restaurant is hereby approved and the State Gambling Control Board is authorized to process the application. Adopted by the Monticello City Council this 14th day of December, 2009. __________________________________ Clint Herbst, Mayor ATTEST: __________________________________ Jeff O’Neill, City Administrator CERTIFICATION I hereby certify that the above is a true and correct copy of a resolution duly passed, adopted and approved by the Monticello City Council on December 14, 2009. ____________________________________ Jeff O’Neill, City Administrator City of Monticello ___________________________ Date City Council Agenda: 12/14/09 1 5Q. Consideration of selecting contractor for repairing newly discovered hail storm related damage to various city buildings (project costs covered entirely by insurance). (BP) A. REFERENCE AND BACKGROUND: City Council is asked to grant formal approval of Pro Contracting Consultants as the General Contractor to repair structures recently identified as damaged as a result of the storm of May 25, 2008. In seeking resources to assess the damage to City Structures, Pro Contracting services was contacted and was very helpful in identifying additional damage not originally found after the storm event. Pro Contracting was also instrumental in our receiving warranted compensation on all of the additional undiscovered damage by describing damage to the Cities’ insurance company (LMCIT) adjuster and as a result, the City will be receiving supplementary funding for repair for additional buildings. The expense associated with Pro Contracting services to manage the projects would be funded via the insurance settlement. Staff is requesting that Council approve Pro Contracting as consultant to act as a general contractor for all of the repairs that are approved by the LMCIT. These repairs include: damage to the Library roof, the Community Center, Wastewater Treatment Facility, Fire Hall, farm property structures and basically every building that had reported damage on the initial evaluation. The reportable damage so far will range from $150,000 to $300,000; as yet the evaluation list has not been completed by the new adjuster and real expense estimation totals may even exceed prior assessments. It is not proposed to utilize city staff to manage the work as city staff time is not recoverable as part of the claim. The consultant’s fee is recoverable as part of the claim which will allow staff to concentrate on other matters. Funds that are allocated by the LMCIT can only be used for the repair for each individual unit with claimed damage. Claim funds cannot be held in reserve or used for other purpose due to a requirement for a confirmed contract of repair before funds are released to the city for dispersal. Please note that Pro Contracting Consultants will be required to follow purchasing practices followed by city staff including requirements to obtain quotes for materials and services on a local basis. A1. Budget Impact: The costs for this project will be entirely paid by LMCIT Insurance Claim #11064760. Consultant/General Contractor fees are all recoverable under the insurance claim. A2. Staff Workload Impact: Dependent on council action. City Council Agenda: 12/14/09 2 B. ALTERNATIVE ACTIONS: 1. Motion to approve Pro Contracting Consultants as the General Contractor to repair structures approved for repair thru LMCIT. Pro Contracting is to follow all purchasing practices of the City. 2. Motion to obtain proposal and qualification from others to act as the general contractor. 3. Motion to deny approval of a contractor at this time. C. STAFF RECOMMENDATION: City staff recommends Alternative #1, formally offering the work to PCC because it is a reputable firm that was helpful in identifying roof damage at no cost early in the process, which they were acting genuinely with a gesture that they may have the opportunity to assist us in correcting found damage, but understood competition would also have that same opportunity. This is a local area contractor that will hire local subcontractors with local labor and materials to complete the work. There is no requirement to go out for quotes from others, but in the future if the same situation arises, staff will be seeking Council selection of a contractor via and RFP process prior to gaining a significant level of assistance or advice. Again, the consultant’s fee is recoverable as part of the claim and there is no cost to the city for the help. D. SUPPORTING DATA: Copies of the three (3) quotes received City Council Agenda: 12/14/09 1 7. Public Hearing – Consideration of denial of Rental License and authorization for City Attorney to take action related to non-compliance with licensing requirements. (DJH/RH/AS) A. REFERENCE AND BACKGROUND: On July 27, 2007, the City adopted an ordinance requiring all rental properties to obtain a Rental License. To obtain this license, the property owner must first submit an application to the city, pay the appropriate fee, and then pass a compliance inspection. Building Department staff conducts these inspections to ensure compliance with the International Property Maintenance Code (IPMC) and the City’s Public Nuisance Ordinance. At the completion of the inspection, the inspector leaves a Housing Inspection Compliance Order with the person present at the inspection (owner, owner’s agent, or the tenant). For correction items that affect health, life, and/or fire safety, a reinspection is required. A reinspection will also be requested by the inspector if there are significant property maintenance issues and/or public nuisance violations. It is the owner’s responsibility to ensure all items are corrected and to schedule a reinspection in a timely manner. If the owner or owner’s agent is not present at the inspection, a copy of the compliance order is left with the tenant. The owner can also obtain a copy of the order by contacting city hall. If the owner fails to set up an inspection or correct the items listed on the compliance order, the city can decide to deny, suspend, or revoke the rental license. If it is determined that the city will be denying, suspending or revoking a license, or the owner appeals the compliance order, then the City Council must conduct a hearing on the matter (City Ordinance § 3-16-10). The purpose of this hearing is for the City Council to review any testimony, documents and other evidence pertaining to properties that are to be denied rental licenses. The owner of a property in question shall have the opportunity to address the Council at this hearing. There are three properties set to be denied rental license privileges due to non-compliance with city codes. The three properties brought forward for review are in violation of the 2008 rental licensing cycle. They are:  11 Walnut Street, an Eight (8) unit apartment building owned by Jan Marie Johnson.  524 East River Street, a single-family home owned by Marcia Ann Haney.  2661 Oak Ridge Drive, a single-family home owned by Joyce Hamaty. A complete summary of staff actions and communications related to each property is included for reference. City Council Agenda: 12/14/09 2 A1. Budget Impact: Not applicable. A2. Staff Workload Impact: Staff did make a considerable effort to assist all rental property owners in complying with the new rental ordinance. As noted within each property summary, for the three properties in question, staff time exceeded that required for other rental properties. It should be noted that for each successive rental cycle, the amount of staff time needed for the various tasks involved with administering the ordinance is decreasing. This is due to the rental property owner’s becoming familiar with the ordinance and the process, and the Building Department’s streamlining of procedures. B. ALTERNATIVE ACTIONS: Decision #1: Rental License for 11 Walnut Street, owned by Jan Marie Johnson 1. Motion to deny rental housing license to Jan Marie Johnson for property located at 11 Walnut Street and direct staff to proceed with criminal complaint. 2. Motion to direct staff to proceed with criminal complaint and table action on rental license for 11 Walnut Street for further review. 3. Motion to approve rental housing license to Jan Marie Johnson for property located at 11 Walnut Street. 4. Motion for other action. Decision #2: Rental License for 524 East River Street, owned by Marcia Ann Haney 1. Motion to deny rental housing license to Marcia Ann Haney for property located at 524 East River Street and direct staff to proceed with criminal complaint. 2. Motion to direct staff to proceed with criminal complaint and table action on rental license for 524 East River Street for further review. 3. Motion to approve rental housing license to Marcia Ann Haney for property located at 524 East River Street. 4. Motion for other action. Decision #3: Rental License for 2661 Oak Ridge Drive, owned by Joyce Hamaty 1. Motion to deny rental housing license to Joyce Hamaty for property located at 2661 Oak Ridge Drive and direct staff to proceed with criminal complaint. 2. Motion to direct staff to proceed with criminal complaint and table action on rental license for 2661 Oak Ridge Drive for further review. 3. Motion to approve rental housing license to Joyce Hamaty for property located at 2661 Oak Ridge Drive. 4. Motion for other action. City Council Agenda: 12/14/09 3 C. STAFF RECOMMENDATION: With the following details and outcomes in mind, staff recommends Alternative #2 in each of the decisions. As Council will be able to discern form the attached summary reports, much work has been done to bring properties into compliance with the 2008 rental licensing cycle. That same effort is being made on the 2009 cycle. Out of approximately 460 rental properties and 1300 rental units within the city, only three properties are presented for possible license denial. Although there are a small number of other properties who have not yet received a license under the 2008 program, the Building Department is actively working with those property owners to come into compliance. As is detailed within the summary reports on the three subject properties, the owners of these three properties have been contacted on numerous occasions but have not made significant attempts to come into compliance. Staff would like to provide detail on the outcomes associated with each of the Alternative Actions noted above as this is the first time that staff is bringing the rental ordinance forward to the City Council for enforcement action,. Council will also want to consider their final action within context of setting the tone for future violations. Alternative 1: This motion would require posting of the property with a notice of action by the Council, indicating that no person shall “reside in, occupy of cause to be occupied that rental dwelling or unit until a license is obtained or reinstated.” Therefore, the tenants would need to vacate the subject property. This action also provides for proceeding with criminal prosecution of the property owner. Alternative 2: This motion would allow the City to move forward with the criminal prosecution of the property owner, but stays action on the actual denial of license. This would allow the tenant to remain at the subject property while trying to work with the property owner to resolve the licensing issues. This option may be more palatable to the Council, although staff does have concerns whether the property owner will come into compliance. In any case, this option allows the legal action to play out, giving the tenants time to find alternative housing if a rental license is ultimately denied. It should be noted that for all three of the properties, there are no imminent life/safety violations that would necessitate immediate occupant vacation of the premises. Alternative 3: This motion would allow the tenants to remain living at the subject property with no criminal prosecution. Staff would not recommend this action. The rental license process was put into place to provide for the protection and welfare of both rental property owners and their tenants. Taking no action to enforce the ordinance could potential set an unfavorable precedent for future enforcement. City Council Agenda: 12/14/09 4 D. SUPPORTING DATA: 11 Walnut Street Information, including: A. Background Summary of Rental Property Action B. Letters to property owner from Campbell Knutson C. Complaint –Summons D. Photos 524 East River Street Information, including: A. Background Summary of Rental Property Action B. Letters to property owner from Campbell Knutson C. Complaint –Summons D. Photos 2661 Oak Ridge Drive Information, including: A. Background Summary of Rental Property Action B. Letters to property owner from Campbell Knutson C. Complaint –Summons D. Photos Rental Ordinance City Council Agenda: 12/14/09 1 8. Public Hearing - Consideration of adopting Resolution #2009-72 to approve final Tax Levy and 2010 Budget (TK) A. REFERENCE AND BACKGROUND: City Council and staff met several times to discuss the City’s proposed 2010 budget and tax levy. As a result, the Council approved a 2010 preliminary levy of $7,750,000, which was certified to Wright County for the tax notices that were mailed in November. The proposed tax levy of $7,750,000 is the same amount as the 2009 final levy. The levy helps fund the following funds: General Fund $5,373,793 Library Fund 19,321 Shade Tree Fund 30,000 Community Center Fund 1,092,353 Street Reconstruction Fund 00 Debt Service Funds 2008 Sewer Refunding $496,231 2002 Improv. Bond 74,798 2005 Improv. Bond 248,724 2007 Improv. Bond 414,780 Debt Service Fund Levy 1,234,533 Total Proposed Levy $7,750,000 Since the proposed levy was adopted on September 14th, the City’s chief building official retired and was replaced by one of the existing building inspectors. That building inspector position will be left vacant, and the wage and benefits were removed from the General Fund. This allows the General Fund levy to be reduced to $5,268,065 and the total levy would be $7,644,272 which is a 1.36% decrease from the 2009 levy. The levy helps support the City’s proposed expenditure budget, which includes both operational and capital costs. The City’s General Fund expenditure budget is being decreased 10.15% from the 2009 budget, the Library Fund expenditure budget is being decreased 22.19%, Shade Tree expenditures decreased 17.97% and the MCC expenditures are decreased 2.77%. Revenue and expenditures changes that affect the levy include;  No cost of living increases for employees  The building inspector position and deputy clerk positions left vacant  Reduced seasonal and part-time employees budget in the streets and alleys and parks departments o Reduced rink hours  Reduced pathway maintenance budget by $10,000 City Council Agenda: 12/14/09 2  Reduced street improvement budget by $20,000  Delayed $146,500 in capital equipment purchases  Eliminated Library program costs by $7,600 and community education by $12,740  Reduced building permit revenues $290,000 to $235,000  Budgeted the current market value homestead credit cut by the State ($257,815)  Did not include the $242,125 increase in transition aid into the General Fund, but instead plugged it into Capital Revolving Fund for possible equipment purchases incase the State cuts the aid in 2010 as part of it budget balancing process  Transferred $45,000 into the General Fund from FiberNet Fund for FiberNet’s use of the City’s construction inspector’s time  Increased water and sewer rates 5% each to cover future infrastructure improvements  Transfer $266,000 from the Liquor Fund to support the Street Reconstruction Fund and Library Fund  Added approximately $73,000 in tax capacity to the general tax rolls by decertifying TIF Districts 1-26, 1-28, and 1-33 early The County currently has the City’s tax capacity at $16,653,416, which does not include the three TIF districts being decertified early. So when you add the tax capacity of those three districts, the City’s tax capacity would be around $16,726,905, which is a decrease of $56,938 from the City’s 2009 tax capacity. When the tax levy of $7,644,272 is divided by the City’s tax capacity of $16,726,905, you end up with the City’s 2010 tax rate, which would be 45.700% compared to a 2009 tax rate of 46.191%. This means, if a home had a market value of $135,000 for both taxes payable in 2009 and 2010, that property owner would see their City property taxes decrease $7 and a home valued at $275,000 would see a decrease of $13. A business valued at $300,000 would see a decrease of $22. In 2009, of the 17 cities in Wright County, 11 of those cities had lower tax rates than Monticello’s. Based on the preliminary levies of the 17 cities for 2010, only 6 cities would have a lower tax rate than Monticello. A1. Budget Impact: This will set the expenditure budgets for 2010 at $34,887,113 for all funds and the City’s property levy at $7,644,272. A2. Staff Workload Impact: The budget should serve staff as a guide to expenditure limits for 2010, but has no workload impact. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution 2009-72 approving the 2010 expenditure budget at $34,887,113 and the City property tax levy at $7,644,272. a. This alternative reduces the levy to reflect a reduction in Building Department expenses. City Council Agenda: 12/14/09 3 2. Motion to adopt a Resolution to approve the 2010 expenditure budget and/or tax levy at some other amounts with the tax levy not to exceed $7,750,000. a. Council should select this alternative if there is a desire to fund programs that were cut, such as the equipment savings program or the library program, with savings derived from the reduction in Building Department personnel. Council could also select this alternative if it desires to budget for the costs ($75,000) associated with advocating for legislation addressing long term storage of nuclear waste in Minnesota. 3. Motion not to approve the 2010 expenditure budget and/or tax levy and to call for a special meeting to approve the budget and tax levy prior to December 29th. C. STAFF RECOMMENDATION: City staff recommends Alternative #1, to adopt the resolution approving the 2010 expenditure budget for all funds at $34,887,113 and the City property tax levy at $7,644,272. However, Alternative #2 should also be strongly considered. A levy greater than the $7,644,272 will result in an increase in the tax rate (due to decreased tax capacity). So property owners who had their property values decreased would still see a City property tax decrease. Also, a higher levy provides the opportunity to save for future purchases and thus reduce potential for a spike in the tax rate in the future. D. SUPPORTING DATA: Resolution #2009-72 PowerPoint presentation pages RESOLUTION NO. 2009-72 RESOLUTION ADOPTING THE 2010 BUDGET AND SETTING THE TAX LEVY WHEREAS, the Finance Director has prepared and submitted to the City Council a budget setting forth therein his estimated needs of the City of Monticello for all operation and the debt service for the fiscal year commencing January 1, 2010; and WHEREAS, the City Council has reviewed the same and has made such changes therein as appear to be in the best interest of the City of Monticello; NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTICELLO: that the budget so submitted by the Finance Director, together with the changes made therein by the City Council, be and same hereby is adopted as a budget for the fiscal year commencing January 1, 2010; and BE IT FURTHER RESOLVED by the Council of the City of Monticello that there be and hereby is levied for the fiscal year commencing January 1, 2010, the following sums for the respective purposes indicated therein upon the taxable property of the City of Monticello, to wit: REVENUE NET CERTIFIED LEVY General $5,268,065 Community Center $1,092.353 Library $19,321 Shade Tree $30,000 DEBT RETIREMENT Debt Service Fund $1,234,533 CAPITAL IMPROVEMENTS Street Reconstruction Fund $0 TOTAL TAX LEVY $7,644,272 The above resolution was introduced by Councilmember______________ and was duly seconded by Councilmember____________. The following voting in favor: . The following voted in opposition: The City Administrator is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Wright County, Minnesota. Adopted by the Monticello City Council this 14th day of December, 2009. ___________________________________ Clint Herbst, Mayor ATTEST: _________________________________ Jeff O’Neill, City Administrator CERTIFICATION I hereby certify that the above is a true and correct copy of a resolution duly passed, adopted and approved by the Monticello City Council on December 14, 2009. ____________________________________ Jeff O’Neill, City Administrator City of Monticello ___________________________ Date City Council Agenda: 12/14/09 1 9. Consideration of approving the 2010-2014 Capital Improvement Plan (CIP) for the City of Monticello. (TK) A. REFERENCE AND BACKGROUND: Staff and City Council reviewed a proposed Five-Year CIP at a workshop on October 12th. The enclosed CIP is the result of that workshop with a couple of changes. Changes to the plan: the Farm Land Purchase on page 106 was moved from a 2010 expenditure to 2012, and the removal of a sewer system camera from 2010, as City Council approved the camera purchase earlier in 2009. The 2010 improvements are included in the City’s 2010 budget; however items would still need Council approval before purchasing or going forward with projects. The capital improvements listed for 2011 through 2014 only serve as a guide for future planning and are not authorized until they are included in the budget and approved by Council. Once approved, the CIP will be used by staff to complete the City’s long-range financial plan and by having an adopted CIP, this should help the City’s efforts to obtain a higher bond rating in the future. The CIP should also help eliminate large budget fluctuations from one year to another and large purchases can be planned and spread out over the five- year period. The CIP provides better financial stability for the City by planning future capital improvements and purchases. A1. Budget Impact: The funds for the capital equipment to be purchased and projects to begin in 2010 are included in the 2010 operating budgets of the various funds as identified in the CIP. A2. Staff Workload Impact: The only staff impact the CIP has is the time it took staff to create the CIP. At the time project or equipment purchases move forward, there may be staff time and possibly work completed by staff at that time. B. ALTERNATIVE ACTIONS: 1. Motion to approve the 2010-2014 CIP. 2. Motion to approve the 2010-2014 CIP with Council changes. 3. Motion to deny approval of the 2010-2014 CIP. C. STAFF RECOMMENDATION: City staff recommends Alternative #1, to approve the 2010-2014 CIP. D. SUPPORTING DATA: 2010-2014 CIP document City Council Agenda: 12/14/09 1 10. Consideration of authorizing City staff to facilitate Interim (6 month) Outdoor Storage of Large Commercial Vehicles at 101 Chelsea Road (old bowling alley site) (JO/AS/TM) A. REFERENCE AND BACKGROUND: On November 23rd, the City Council approved an amendment to the Monticello Zoning Ordinance regulations for off-street parking. The amendment added clarification and definition to the ordinance as it pertains to commercial vehicle storage in residential districts. The amendment specifically prohibits large commercial vehicles in residential districts, but does make some allowances for smaller commercial vehicles. The Council will note that commercial vehicles over 9,000 were previously prohibited in residential districts (prior to the 11/23/09 amendment). During the discussion on the amendment, Council members did express some concern over the short notice displacement of larger vehicles that have been parking in residential neighborhoods in the past. As the passage of the amendment will require some level of enforcement with regard to resident complaints, it was felt that mitigating this somewhat unexpected displacement may warrant research. As a means to provide temporary solution for residents needing immediate storage for their large commercial vehicles, the Council is asked to consider authorizing staff to move forward with additional action on designation of an interim storage site. Although large commercial vehicles are allowed to park for a temporary period of time in the City’s commuter parking lot, this highly visible area is not an ideal location for the more frequent parking of these vehicles. In reviewing other potential sites for off-street parking of larger commercial vehicles, staff would offer the old bowling alley site (101 Chelsea Road) as the best possible interim solution. It is a City-owned property. The site is zoned for industrial use, offers a power source at the building, offers easy access to transportation corridors, and can accommodate up to 6 large commercial vehicles with power. Information on site improvements and maintenance costs are noted below. In terms of land use approvals, if the Council would like to move forward, the City would need to process a zoning code amendment to allow the outdoor storage of large commercial vehicles in the I-1 District as a principal use. Then the City would apply for the permit itself, which would be processed as a CUP. It would be recommended that the permit expire in May, 2009. The City would most likely want to repeal the ordinance amendment at the conclusion of the interim use permit, as principal storage of commercial vehicles is not an ideal use for I-1 areas. If the City Council desires to provide this outdoor storage use as soon as possible (in order to address an immediate need), it is proposed to allow the use while the ordinance amendment is being processed. City Council Agenda: 12/14/09 2 In terms of site usage, a simple lease agreement could be prepared outlining payment terms and notification of termination of lease agreement should the Cit y sell the property. In the event that Council does not want to utilize the bowling alley site, there may be privately-owned properties that the Council would like staff to research in order to provide recommendations to large commercial vehicles owners for interim, or even long- term, parking solutions. A1. Budget Impact: To prepare the bowling alley site for this possible use, the only needed site improvement would be the installation of outdoor power sources for vehicle plug-in. That estimate is provided for reference and totals approximately $1450. Estimates on power usage costs have also been provided, totaling approximately $43.20 per month. Based on 6 vehicles using the site, the total cost per user per month would be $391.87, but could be reduced by excluding plowing and administrative costs. A2. Staff Workload Impact: Staff costs would be incurred in snowplowing of the parking lot and for the administrative costs associated with the lease agreements, billing, and collections. B. ALTERNATIVE ACTIONS: 1. Motion to authorize action relating to use of 101 Chelsea Road as a temporary storage option for large commercial vehicles, including: Installation of required electrical supply source. Preparation of a lease agreement (the Council should specify what it wishes to include in monthly lease costs). Application for amendment to zoning ordinance allowing outdoor commercial vehicle storage in an I-1 District. Application for an interim use permit for outdoor commercial vehicle storage in an I-1 District to expire on May 1, 2009. Establish a monthly rate of $284.87 to pay for City expenses to facilitate winter parking. (This is the estimated out of pocket cost for the City, not including administrative and snowplowing costs. Plowing would be done as a last priority site.) The lease agreement would stipulate that site use be open to Monticello residents only. 2. Motion to authorize staff to research other private options for recommendation. 3. Motion to deny authorization of action relating to the use of 101 Chelsea Road as a temporary storage option for large commercial vehicles. City Council Agenda: 12/14/09 3 C. STAFF RECOMMENDATION: If Council is inclined to move forward, staff would recommend Alternative #1 and could immediately contact property owners on record having large commercial vehicles stored on their residential property under the terms noted above. If at least 4 potential users are found, City staff would proceed with the electrical work. While storage of large commercial vehicles as a principal use on the proposed site is not ideal in terms of current land use regulations, if Council is looking for an immediate temporary option to offer residents, the site is under City control and offers some advantages as noted above. Staff would recommend that as of May 1, the outdoor storage amendment for the I-1 District be immediately repealed. D. SUPPORTING DATA: Project cost estimates Copy of Zoning Ordinance excerpt showing I-1 uses City Council Agenda: 12/14/09 1 11. Consideration of authorizing the firm of Flaherty Hood to provide services regarding Legislative Advocacy pertaining to the permanent storage of Nuclear Waste at the Monticello Nuclear Generating Plant (MNGP) (JO) A. REFERENCE AND BACKGROUND: City Council is asked review the attached letter of agreement submitted by Timothy Flaherty for legislative advocacy services pertaining to the permanent storage of nuclear waste at the Monticello Nuclear Generating Plant (MNGP). As you know, not long ago, despite a colossal investment in time and money, it was announced that further efforts on development of a long term nuclear storage facility at Yucca Mountain ended after 22 years of study and effort. As a result of this action to abandon Yucca Mountain and the resulting great uncertainty as to the date that a Federal repository might open, the Monticello City Council adopted a resolution in support of development of legislation addressing the need and impacts of Long-Term Nuclear waste storage in Minnesota. A copy of the resolution is attached. In order to facilitate the development of needed legislation, it is proposed that Monticello join the City of Red Wing in contracting with the law firm of Flaherty Hood to represent the two host cities at the State Legislature. Both Redwing and Monticello have a longstanding and positive relationship with this firm through participation in the Coalition of Utility Cities (CUC). A1. Budget Impact: The agreement calls for payment to Flaherty Hood at the hourly rates, but the amount for services and expenses shall not exceed $75,000 prior to January 1, 2010. This is a joint advocacy effort which means that Redwing and Monticello will be splitting costs and operating under the same agreement. The funding for this work can be derived from one or a combination of the following sources. Transition Aid ($245,000 potential) identified for allocation but not completely certain for allocation due to state budget uncertainties. This amount could be added to the 2010 expenditures budget offsetting the savings relating to the reduction in Building Department personnel. Reserves are available A2. Staff Workload Impact: Staff time and the efforts of Mayor Herbst and City Council will be required in support of the legislative initiative. B. ALTERNATIVE ACTIONS: 1. Motion to join the City of Red Wing and approve adopting a contract for legislative advocacy services with the firm of Flaherty Hood for assistance with developing legislation addressing extended or long term storage of Nuclear Waste in Minnesota. City Council Agenda: 12/14/09 2 This alternative would enable the City to move forward in development of legislation identified in the resolution adopted on November 9, 2009. 2. Motion to deny adoption of said agreement. This alternative should be selected if Council sees another option for addressing this issue or prefers to take a wait and see approach. C. STAFF RECOMMENDATION: City staff recommends Alternative #1, that the City of Monticello join the City of Red Wing in sharing the cost to develop legislation that addresses the long term storage of Nuclear Waste in Minnesota. Hundreds of millions of dollars have already been spent by Minnesotans, and about 13 million dollars a year is currently being relayed from Minnesota rate payers through the State of Minnesota to the Federal Government for the purpose of providing for long term storage of Nuclear Waste, yet no Federal solution is in sight. Nowhere in the history of decision-making, relative to development of the facilities in Monticello and Red Wing, was it ever anticipated that our communities would become host to long term storage of nuclear waste on behalf of all that use electricity in Minnesota. Therefore, State legislation is needed for finding storage location alternatives or to assist the host cities with the capacity to manage and address the impacts of long term storage of nuclear waste in our community. Hiring the firm of Flaherty Hood appears to be a necessary step to invest in developing such legislation. D. SUPPORTING DATA: Copy of Letter of Agreement Copy of Resolution adopted on November 9, 2009 News Article from Star Tribune – December 10, 2009 City Council Agenda: 12/14/09 1 12. Consideration of calling for a Special Meeting during the last week of December for approval of bills. (TK) A. REFERENCE AND BACKGROUND: Since the City Council only meets once in December, in the past a special council meeting has been held to approve one last check run for the year. This last check run is necessary to pay vendors in a timely manner and to avoid interest charges and/or late fees and penalties on bills received after the December meeting and due prior to the first meeting in January. This special meeting could be held at the start of the day or at the end of the day. The days that work the best would be Monday December 28th, Tuesday December 29th, or Wednesday December 30th. A1. Budget Impact: By holding this special meeting, this would avoid the City having to pay some interest or late fees on bills that would be received after the December 14th Council meeting and due prior to the first January Council meeting. A2. Staff Workload Impact: None. B. ALTERNATIVE ACTIONS: 1. Motion to call for a Special Council Meeting on Monday, December 28th at a time that works best for City Council members. 2. Motion to call for a Special Council Meeting on one of the other recommended dates, at a time that works best for City Council members. 3. Do not call for a Special Council Meeting. C. STAFF RECOMMENDATION: The City staff supports Alternative 1. D. SUPPORTING DATA: None.