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City Council Minutes 09-11-2017REGULAR MEETING — MONTICELLO CITY COUNCIL Monday, September 11, 2017 — 6:30 p.m. Mississippi Room, Monticello Community Center Present: Brian Stumpf, Jim Davidson, Bill Fair, Charlotte Gabler, and Lloyd Hilgart Absent: None. 1. General Business A. Call to Order & Pledge of Allegiance Mayor Stumpf called the meeting to order at 6:30 p.m. All City Councihnembers were present. There was a moment of silence for 9/11 following the Pledge of Allegiance. B. Approval of Meeting Minutes Special Meeting Minutes from August 28, 2017 Councilmember Gabler moved approval of the special meeting minutes. Councilmember Hilgart seconded the motion. Motion carried unanimously. Regular Meeting Minutes from August 28, 2017 Councilmember Fair moved approval of the regular meeting minutes as amended. Councilmember Davidson seconded the motion. Motion carried unanimously. C. Consideration of Adding Items to the Agenda None. D. Citizen Comments Peg Becker, Veolia, addressed the City Council in regard to their proposed WWTF proposal. She mentioned that she is available for any questions. E. Public Service Announcements • Pain Loidolt, Senior Center Director, commented on all of the activities taking place in regard to the Monticello Senior Center's 50"' Anniversary Celebration. • Rachel Leonard, Communications Coordinator, presented the following announcements: - Blazin Thru Bertram — 9 a.m., Saturday, September 16, 2017. - Wag & Walk Festival — Sunday, September 24, 2017, 1-4 p.m., in Montipaws Park. City Council Minutes — September 11, 2017 Page 1 1 7 F. Council Liaison Updates • Highway 25 Coalition — Jeff O'Neill, City Administrator, noted that SRF provided an update on the Highway 25 Study, specifically identifying traffic patterns. • BCOL — Councilmember Fair commented that construction of the beach house has begun. • IEDC — Mayor Stumpf stated that there are prospects for economic development in the works. Jim Johnson resigned from the board and Mike Carr will be replacing him. • Planning Commission — Councilmember Gabler commented on the meeting and that there were two public hearings. The Downtown Small Area Plan was approved and the EDA's Housing Market Report was accepted. G. Department Updates • Jeff O'Neill, City Administrator, provided updates on the following: 1. Commented on the Coalition of Utility Cities and upcoming legislation. 2. The number of the fixtures for the pool lighting upgrades approved at the last meeting was incorrect. There are more fixtures than quoted and there will be an additional cost of $1,500, but no additional labor. 3. The Taste of the Town is on Thursday, September 13, 2017. • Construction Update: Shibani Bisson, City Engineer/WSB, provided an update which included the following: Mississippi Drive and Hart Boulevard were being paved on Monday; and the contractor is operating in liquidated damages which equals $500/day for each project. 2. Consent Agenda Councilmember Fair moved approval of the Consent Agenda excluding item 2H. Councilmember Hilgart seconded the motion. Motion carried unanimously. A. Consideration of approving the payment of bills. Recommendation: Approved bill and purchase car registers for a total amount of $1,511,201.72. B. Consideration of approving new hires/departures. Recommendation: Approved hires for MCC and terminations for Parks, Streets, and MCC. C. Consideration of approving the sale/disposal of surplus city property. Recommendation: Approved as presented. D. Consideration of adopting Resolution 2017-51 accepting donations from CentraCare Health for the Powers of Produce kids program and from the Danno Mahoney family for a total of $300. Recommendation: Adopted Resolution 2017-51 approving the contribution and authorize use of funds as specified. City Council Minutes — September 11, 2017 Page 2 1 7 E. Consideration of setting the Truth -in -Taxation public hearing for 6:30 p.m. on December 11, 2017. Recommendation: Set the public hearing for the 2018 property tax levy and budget for December 11, 2017, at 6:30 p.m. F. Consideration of appointing a representative to the IEDC for a term to commence immediately and expire December 31, 2017. Recommendation: Approved the appointment of Mike Carr, Monticello School District, to the IEDC to a term ending on 12-31-2017. G. Consideration of adopting Resolution 2017-58 declaring costs to be assessed, ordering preparation of assessment roll and calling for an Assessment Hearing on October 9, 2017, to adopt assessments for the 2017 Street Reconstruction and Utility Improvement Project, City Project NO. 16C003, for Gillard Avenue, 95"' Street, Haug Avenue, 90"' Street and Mississippi Drive. Recommendation: Adopted Resolution 2017-58 declaring costs to be assessed, ordering, ordering preparation of assessment roll, and calling for the assessment hearing for October 9, 2017 Street Reconstruction and Utility Improvement Project, City Project No. 16CO03 for Gillard Avenue, 95th Street, Haug Avenue, 9011' Street and Mississippi Drive. H. Consideration of approving a Final Stage Planned Unit Development for Self - Storage in a B-3 (Highway Business) District. Applicant: KB Properties, LLC. Recommendation: ITEM WAS REMOVED FROM THE CONSENT AGENDA. I. Consideration of approving an Assignment of the Development Agreement for Featherstone 3rd Addition from Gold Nugget Development to Novak -Fleck. Recommendation: Approved an assignment of the Development Contract for Featherstone 3" Addition from Gold Nugget Development to Novak -Fleck Incorporated. J. Consideration of calling for a public hearing on October 3, 2017, by the Monticello Planning Commission for an amendment to Conditional Use Pen -nit for Planned Unit Development for Hi -Way Liquors sign height and area allowances. Recommendation: Called for a public hearing on October 3, 2017, by the Monticello Planning Commission for an amendment to Conditional Use Permit for Planned Unit Development for Hi -Way Liquors sign. K. ADD-ON — Consideration of authorizing stonnwater repairs on the river outlet at Maple Street at a cost of $13,650. Recommendation: Approved the authorization of stormwater repairs on the river outlet at Maple Street at a cost of $13,650. City Council Minutes — September 11, 2017 Page 3 1 7 2A. Consideration of items removed from the Consent Agenda for discussion. H. Consideration of approving a Final Stage Planned Unit Development, Rezoning to Planned Unit Development and Development Agreement for Self -Storage Facility in a B-3 (Highway Business) District. Applicant: KB Properties, LLC. Keith Burnham, KB Properties, LLC, addressed the City Council. He noted a couple of requested changes: Exhibit Z, #7 should state for Phase 1, not Phases I and 2; and Exhibit Z, #8 — he requested until September 15, 2018 to complete the entire fence. Mr. Burnham thanked city staff for all of their efforts. He also commented on the fact that the market for storage facilities shows there won't be a need for such facilities in the future, and perhaps the B-3 zoning, which allows self -storage, should be reevaluated. Angela Schumann, Community Development Director, responded and explained the B-3 zoning and the significant amount of land that is zoned B-3 in the city. Councilmember Hilgart expressed concern over the amount of property zoned B-3. Mayor Stumpf added that perhaps the Planning Commission should review the B-3 zoning and the property within the city. Angela Schumann reviewed changes that were made to the Development agreement. In addition, she noted that there was a summary ordinance for publication that also requires city council approval. Councilmember Hilgart motioned to have the Planning Commission review the B-3 zoning in the city. Councilmember Gabler seconded the motion. Councilmember Fair moved approval of: Resolution 2017-65 approving a Final Stage PUD and Development Agreement, as amended — changes noted by Ms. Schumann, for KB Properties, Lot 11, Block 4, Groveland Addition, based on the findings in said resolution and contingent on compliance with the conditions listed in Exhibit Z, amended per applicant request, and staff comments on compliance; and Ordinance 680 rezoning to Planned Unit Development for Affordable Self -Storage PUD, Lot 11, Block 4, Groveland Addition; and Summary Ordinance 681A for publication. Councilmember Hilgart seconded the motion. Motion carried unanimously. 3. Public Hearings A. PUBLIC HEARING — Consideration of adopting Resolution 2017-59 approving a vacation of drainage and utility easements for Lot 3, Block 17; Lot 1, Block 19; and Outlot A, Autumn Ridge 3rd Addition. Angela Schumann gave a brief overview of the petition. The required drainage and utility easements are proposed with the plat of Autumn Ridge Villas. Mayor Stumpf opened the public hearing. No one testified. Mayor Stumpf closed the public hearing. City Council Minutes — September 11, 2017 Page 4 1 7 Councilmember Hilgart to approval of Resolution 2017-59, vacating drainage and utility easements over and across Autumn Ridge 3rd Addition as described in the petition, contingent on: approval of the plat of Autumn Ridge Villas for re-establishment of required drainage and utility easements; and verification that private utilities are within proposed drainage and utility easements for the plat of Autumn Ridge Villas. Councilmember Gabler seconded the motion. Motion carried unanimously. B. PUBLIC HEARING — Consideration of adopting Resolution 2017-60 approving the assessments for the TH 25/7"' Street Intersection Improvements, City Project No I SCO04 Shibani Bisson, City Engineer, presented the assessment roll and gave a presentation. The components of the project were stated, along with the proposed street reconstruction rate of $65 per front foot, which is based on assessing 50% of reconstruction cots for a collector roadway. Sidewalk assessment rates are proposed to be assessed at $13.50 per front foot, which includes 25% of the cost being assessed. Assessment is proposed at a 10 -year term at a 4% interest rate. Ms. Bisson noted that the city has received a lot of positive feedback from residents. The final project cost was $1,550,000 with $29,780 by funded by assessment and $160,220 by the city. Remaining balance funded by MnDOT and State Aid funds. Mayor Stumpf opened the public hearing. No one testified. Mayor Stumpf closed the public hearing. Councilmember Hilgart moved approval of Resolution 2017-60 approving an assessment roll to be certified for 2018 payable tax year for the TH 25/7th Street intersection improvements, City Project No. 15C004. Councilmember Davidson seconded the motion. Motion carried unanimously. 4. Regular Agenda A. Consideration of adopting Resolution 2017-61 approving a special benefit levy by the City of Monticello Economic Development Authority and accepting the EDA 2018 budget. Angela Schumann presented the item and noted that the EDA has authorized to increase their levy to the full statutory limit, which is an increase of $323,000 or 15.4% over the 2017 levy. Councilmember Gabler moved to adopt Resolution 2017-61 approving a special benefit levy by the City of Monticello Economic Development Authority and accepting the EDA 2018 budget. Councilmember Davidson seconded the motion. Motion carried unanimously. City Council Minutes — September 11, 2017 Page 5 1 7 B. Consideration of adopting Resolution 2017-62 setting the 2018 City of Monticello's preliminary tax levy. Wayne Oberg, Finance Director, presented the preliminary 2018 property tax levy. Included in the presentation were: tax capacity rates; tax base changes; property tax levy history; and tax levy impact. The preliminary tax levy must be certified to Wright County by September 30, 2017. The City Council will adopt a final tax levy on December 11, 2017, which can be lower but not higher than the preliminary levy. The presented preliminary tax levy, less the HRA levy, is $9,547,000 which is an increase of 4.3% from 2017. Discussion ensued among the City Council in regard to the increase in the tax levy. There was disagreement on whether there should be a higher preliminary levy approved in an effort to look more in depth at all of the additional budget requests. These items would then possibly be included or not included in the final budget. Mayor Stumpf questioned whether charging garbage service for mobile home parks/townhomes the same as residential is included in the budget. Mr. Oberg noted that no changes were made to the proposed levy to address this issue, and $72,000 would need to be added to the budget to cover the lost garbage revenue from these entities. There was also some discussion on leftover 2017. These funds, approximately $300,000, could potentially be used for some of the additional budget requests. Councilmember Fair moved to authorize a preliminary tax levy of $9,800,000. Motion dies for a lack of a second. Councilmember Gabler moved to authorize a preliminary tax levy of $9,772,000. Councilmember Fair seconded the motion. Motion failed 2-3; Councilmembers Davidson, Hilgart and Stumpf voted against. Councilmember Hilgart moved to adopt Resolution 2017-62 setting the 2018 preliminary tax levy at $9,547,000 including the stipulation that the excess 2017 funds be used for downtown area projects. Councilmember Fair seconded the motion. Motion carried 3-2: Councilmember Gabler and Mayor Stumpf voted against. C. Consideration of approving a rezoning to PUD, Final Stage Planned Unit Development, Final Plat and Development Agreement for Autumn Ridge Villas for detached single family lots in an R-3 (Medium Density Residential) District at Autumn Ridge 3'd Addition. Applicant: SW Wold Construction/Ocello, LLC. Angela Schumann presented the item and noted that a summary ordinance for publication was added for approval. The current proposal is for a PUD Final Stage review. Councilmember Gabler moved approval of Decision 1 — adopt Resolution 2017-63 approving a Final Stage PUD for Autumn Ridge Villas, subject to conditions in Exhibit Z and based on findings in said resolution. Councilmember Davidson seconded the motion. Motion carried City Council Minutes — September 11, 2017 Page 6 1 7 unanimously. Councilmember Gabler moved approval of Decision 2 — adopt Ordinance 679 for rezoning from R-3 to Autumn Ridge Villas PUD, based on findings in Resolution 2017-63. Councilmember Fair seconded the motion. Motion carried unanimously. Councilmember Gabler moved approval of Decision 3 — adopt Resolution 2017-64 for approval of Final Plat of Autumn Ridge Villas, based on the findings noted in the resolution and subject to the conditions in Exhibit Z. Councilmember Davidson seconded the motion. Motion carried unanimously. Councilmember Gabler moved approval of Decision 4 — to approve Summary Ordinance 679A for publication. Councilmember Fair seconded the motion. Motion carried unanimously. 5. Added Items Councilmember Gabler motioned to have staff review the garbage pick-up policy, including residential, commercial, mobile homes, etc. Councilmember Fair seconded the motion. Motion carried unanimously. 6. Adjournment By consensus, the meeting was adjourned at 7:40 p.m. Recorder: Jennifer Schreiber Approved: �T Attest: e��)X-62A� City Administrator City Council Minutes — September 11, 2017 Page 7 1 7