City Council Minutes 04-23-2001MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
April 23, 2001 - 7 p.m.
Members Present: Roger Belsaas, Roger Carlson, Clint Herbst, Brian Stumpf and Bruce
Thielen.
Members Absent: None
1. Call to Order.
Mayor Belsaas called the meeting to order at 7 p.m. and declared a quorum present.
2A. Approve minutes of April 9, 2001 regular council meeting.
ROGER CARLSON MOVED TO APPROVE THE MINUTES OF THE APRIL 9, 2001
REGULAR COUNCIL MEETING. BRUCE THIELEN SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY.
213. Approve minutes of April 17, 2001 special council meeting
CLINT HERBST MOVED TO APPROVE THE MINUTES OF THE APRIL 17, 2001
SPECIAL COUNCIL MEETING. ROGER CARLSON SECONDED THE MOTION.
MOTION CARRIED WITH BRIAN STUMPF ABSTAINING.
3. Consideration of adding items to the agenda.
Jeff O'Neill requested that an update on the Towne Center project be added to the agenda.
Clint Herbst questioned whether an update to the Council on a recent meeting with the
architects for the Community Center should be done in a closed meeting or whether it could
be handled in a regular meeting. It was felt it should be done in a closed meeting. Clint
Herbst also requested that a discussion of the signage and markings for the CSAR 75/TH 25
intersection be added to the agenda.
4. Citizen comments/petitions, requests and complaints.
None.
5. Consent Agenda
A. Consideration of resolution Declaring costs of Improvements to be reimbursed by
future bond sale. Recommendation: Adopt a resolution declaring intent to reimburse
expenditures to the proceeds of bond covering the various projects outlined.
Res. No. 2001-27.
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B. Consideration of Personnel Committee recommendations. Recommendation:
Council adopt recommendations of Personnel Committee for the four specific areas
discussed: Accumulated vacation policy, employee mileage reimbursement rate, group
health insurance contribution levels and comparable worth/pay equity adjustments.
C. Consideration of drilling four test wells to determine water quality in the lower aquifer
the length of Monticello. Recommendation: Authorize City staff and Liesch &
Associates to prepare requests for proposals for drilling three to four test wells across
the community to determine the water quality in the lower aquifers and obtain quotes
with costs to be returned at a later date for consideration by the City Council.
D. Consideration to approve the preliminary concept for use of TIF assistance for
redevelopment of previous St. Henry's site. Recommendation: Move to approve the
preliminary concept for use of TIF assistance for redevelopment of the area previously
occupied by the St. Henry's Church.
E. Consideration to approve the preliminary concept for use of TIF assistance for Amoco
site. Recommendation: Move to approve the preliminary concept for use of TIF
assistance for redevelopment of the Amoco site.
F. Consideration of approving charitable gambling license - Monticello American Legion
Post #260. Recommendation: Adopt resolution authorizing the State Gambling
Control Board to renew the gambling license requested by American Legion Post
4260. Res. # 2001-29.
G. Consideration of accepting feasibility report for Front Street Reconstruction, Project
No. 2001-06C. Recommendation: Move to adopt resolution approving feasibility
study and ordering plans and specifications, contingent on city purchase of the final
parcel and authorizing advertisement for bids for Front Street utility system and road
reconstruction project.
H. Consideration of accepting feasibility report, ordering plans and specifications and
advertisement for bids for Groveland Phase II, Project 2001-05C. Recommendation:
Move to adopt a resolution approving the feasibility study, ordering and approving
plans and specifications and authorizing advertisement for bids for improvements to
the Groveland Phase II residential subdivision.
I. Consideration of adopting resolution accepting feasibility report, ordering plans and
specifications and calling for a public hearing on the street and utility improvements at
Cedar Street between Oakwood Drive and Dundas Road. Recommendation: Adopt a
resolution approving feasibility study and calling for a public hearing on May 14, 2001
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for road, water main and storm sewer improvements to Cedar Street between Dundas
Road and Oakwood Drive.
J. Consideration of adopting resolution ordering feasibility report, accepting feasibility
study and calling for a public hearing on May 14, 2001 on road and storm sewer
improvements to 7"' street between Cedar Street and Washington Street.
Recommendation: Adopt a resolution authorizing feasibility study, approving
feasibility study and calling for a public hearing on May 14, 2001 for road and storm
sewer improvements to 7t" Street between Cedar Street and Washington Street.
K. Consideration of cancelling Public Works uniform services contract with G&K
Services of St. Cloud. Recommendation: Authorize cancellation of the uniform
contract with G&K Services and authorize the City Administrator to negotiate with
another firm and enter into a contract to provide uniform services to the Public Works
Department.
Brian Stumpf requested that item #5E be removed from the consent agenda. Clint Herbst
requested items #51) and #5K be removed from the consent agenda.
BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH THE
REMOVAL OF ITEMS 45D, 45E AND 45K. BRUCE THIELEN SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY.
6. Consideration of items removed from the consent agenda for discussion.
Clint Herbst questioned how the use of TIF funds would work on the St. Henry's site since the
site had never generated any tax dollars before. Economic Development Director, 011ie
Koropchak indicated that under the project description the majority of land is in the name of
the church and doesn't produce any taxes. Once the property has changed hands and the
zoning has been changed, the property will be generating taxes. She also noted that even
though the church property didn't generate taxes, there was a value assigned by the assessor to
the properties.
Clint Herbst expressed his concern that TIF funds were being used on almost every
development and felt that the City should look more closely at limiting not only the length of
time the TIF district ran but also the amounts of TIF assistance. Roger Belsaas stated that
very little TIF assistance was used in residential areas except to remove areas of blight. Bruce
Thielen questioned if TIF funds were not provided for the St. Henry's site how long would it
be before development took place. Clint Herbst felt TIF funds should be used to attract
income and job producing projects. 011ie Koropchak noted that developers have to submit
proforma information and meet the "but for" test, that is development would not take place
but for the use of tax increment financing.
Brian Stumpf asked if TIF funds are provided on a project and the project is not completed,
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how are the TIF funds collected. 011ie Koropchak stated that most of the TIF assistance
provided is pay as you go so if the project does not take place the funds are not expended. It
was also noted that the HACA penalty comes into play on the establishment of each district.
On redevelopment districts the penalty starts at 5% and goes up to 10%. On economic
districts the penalty starts at 10%. The question was raised whether on the St. Henry's site,
the TIF assistance was tied to the vacant land only or the redevelopment of the entire site.
011ie Koropchak provided an explanation of the City's and HRA use of TIF funds. Clint
Herbst just felt that the City should be judicious in its use of tax increment financing.
CLINT HERBST MOVED TO APPROVE THE PRELIMINARY CONCEPT FOR USE OF
TIF ASSISTANCE FOR REDEVELOPMENT OF THE AREA PREVIOUSLY OCCUPIED
BY THE ST. HENRY'S CHURCH. ROGER CARLSON SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY.
Brian Stumpf had questions about the waiving of WAC/SAC fees and parking issues on the
Amoco site more so than the use of TIF assistance for the redevelopment of this site. Jeff
O'Neill stated that he had asked the developer to submit a request to the City on what he
wanted but to date nothing has been submitted. Roger Belsaas didn't have a problem
assessing the WAC/SAC charges at a reasonable interest rate but the City should not be
waiving these charges. He also felt the City had to be very careful in addressing the parking
issues.
BRIAN STUMPF MOVED TO APPROVE THE PRELIMINARY CONCEPT FOR USE OF
TIF ASSISTANCE FOR REDEVELOPMENT OF THE AMOCO SITE NOTING THAT
THE ISSUES OF WAC/SAC CHARGES AND PARKING NEEDED TO BE RESOLVED.
BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
On item #5K, Clint Herbst asked the Public Works Director, John Simola, if they had any
response from G&K since the City's last correspondence and if the contract was cancelled
was there another firm lined up to provide the service. John Simola indicated that they have
been in contact with the firm providing service for the Community Center. The consensus of
the Council was that if another contract was signed it should not go more than two years.
Bruce Thielen stated that this matter had been discussed at a Personnel Committee meeting.
The intent is that there will be one standardized uniform.
CLINT HERBST MOVED TO APPROVE CANCELLATION OF THE UNIFORM
CONTRACT WITH G&K SERVICES AND AUTHORIZE THE CITY ADMINISTRATOR
TO NEGOTIATE WITH ANOTHER FIRM AND ENTER INTO A CONTRACT TO
PROVIDE UNIFORM SERVICES TO THE PUBLIC WORKS DEPARTMENT. BRIAN
STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
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7. Public hearing - Consideration of a resolution adopting proposed assessment roll for
delinquent utility bills and certification of assessment roll to Wright County.
The Council reviewed the list of delinquent utility accounts proposed to be certified to the
County Auditor for collection with the taxes. Clint Herbst asked if there were charges in
addition to the $50.00 late fee. Rick Wolfsteller indicated that an interest rate of 8% is
charged on the delinquent assessment. Mayor Belsaas opened the public hearing on the
proposed assessment. There was no one present who spoke on the proposed assessment.
Mayor Belsaas then closed the public hearing.
BRIAN STUMPF MOVED TO ADOPT THE ASSESSMENT ROLL FOR THE
DELINQUENT UTILITY CHARGES AS PRESENTED. ROGER CARLSON SECONDED
THE MOTION. MOTION CARRIED UNANIMOUSLY. Res. 92001-24.
8. Public Hearing - Walnut Street Corridor Improvements, Project 2000-17C and
consideration of ordering improvement and preparation of plans and specifications.
Jeff O'Neill presented background information on the proposed improvement noting that there
had been some changes to the original project which added some additional lighting along the
pathway area and additional landscaping. He also pointed out that a segment of sidewalk
along 4" Street had been relocated at the request of Sunny Fresh Foods to the other side of 4"
Street. Jeff O'Neill reviewed the proposed landscaping for the area between the proposed
pathway and the railroad tracks. The landscaping and additional lights would increase the
project cost by approximately $51,000. There was some discussion on the proposed lighting.
The Council was under the impression that some of the lights along Walnut Street in the
original report would be relocated to the pathway and not that the pathway lighting would be
in addition to the lights along Walnut Street. Clint Herbst stated his concern about where the
money would come from to cover this extra cost. Current policy would have the City
picking up 75% of the cost. Clint Herbst also felt that Sunny Fresh should agree to pay the
cost for the segment of sidewalk on 4" Street that was relocated. The consensus of the
Council was that the additional lighting and landscaping be excluded from the project at this
time. Mayor Belsaas then opened the public hearing. There was no one present who spoke
for or against the proposed improvement. Mayor Belsaas closed the public hearing.
BRUCE THIELEN MOVED TO AUTHORIZE PREPARATION OF PLANS AND
SPECIFICATIONS FOR THE WALNUT STREET IMPROVEMENT CONTINGENT
UPON THE SALE OF LAND FOR THE TOWNE CENTER SITE AND EXCLUDING THE
ADDITIONAL LANDSCAPING AND THE LIGHTING ALONG THE PATHWAY.
ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
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9. Consideration of request to allow National Guard to use Community Center for sleeping
facility during Guard weekends.
Jeff O'Neill reported that city staff had discussed the overnight use of the facilities by the
National Guard prior to this item coming up before the Council. The position of the City was
that the National Guard was free to use its own space but they could not use the shared areas
of the Community Center without modification to the operation agreement and also City
Council approval. While there are facilities to allow for 3-4 people to sleep in the National
Guard area, there are no bathroom facilities for that area. Mayor Belsaas felt that Rick
Wolfsteller, Jeff O'Neill and Kitty Baltos should sit down with the National Guard to further
address the issues.
BRIAN STUMPF MOVED TO TABLE THIS ITEM UNTIL THE FIRST MEETING IN
JUNE TO ALLOW STAFF TIME TO MEET WITH THE NATIONAL GUARD. CLINT
HERBST SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
10. Consideration of proposals for gravity belt thickener for wastewater treatment plant,
Project No. 2001-03C.
John Simola reported that the City had received two proposals for design build of the gravity
belt thickener. One proposal was from Rice Lake Contracting/Bolton Menk in the amount of
$8181,000. The other proposal was from SEH Design/Build Inc. and Gridor Construction at an
estimated cost of $1,017,955. The City's project estimate was $600,000. The Design/Build
Committee reviewed the proposals and interviewed with Rice Lake Contracting/Bolton Menk
to clarify their proposal, since it was not quite as detailed as the other proposal.
Some items were negotiated which reduced the contract amount by $19,620 making the
revised Rice Lake Contracting/Bolton Menk amount $798,380. Since the proposals came in
over estimate, the additional cost would need to be picked up Sunny Fresh and the City.
Sunny Fresh requested the City to consider rebating $50,000 of $128,000 in fines collected for
Sunny Fresh's violation of the pretreatment agreement to offset the added cost of the
improvement. John Simola indicated that they were not able to complete negotiations on the
type of pump and requested that the City Administrator and himself be allowed to approve a
change order up to $10,000 in order to negotiate the pump issue. John Simola stated that the
review of the company's record showed that there were very few change orders to their design
build projects.
CLINT HERBST MOVED TO AWARD THE GRAVITY BELT THICKENER DESIGN
BUILD PROJECT TO RICE LAKE CONTRACTING IN THE ADJUSTED AMOUNT OF
$798,380 AND TO AUTHORIZE THE CITY ADMINISTRATOR AND PUBLIC WORKS
DIRECTOR TO NEGOTIATE A CHANGE ORDER UP TO $10,000 TO COVER THE
TYPE OF PUMPS AND ALSO TO REBATE $50,000 OF THE FINES COLLECTED TO
HELP SUNNY FRESH WITH THEIR SHARE OF THE COST. ROGER CARLSON
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
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11. Approve payment of bills for April
BRUCE THIELEN MOVED TO APPROVE PAYMENT OF BILLS FOR APRIL. BRIAN
STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
Additional Items:
Jeff O'Neill reported that the closing on the Towne Center project has not yet taken place. Originally
the closing was scheduled for December, 2000. Because of the delay by the developer in closing on
this property, the City has lost the opportunity to earn interest on the purchase price. It was the
consensus of the Council not to make that an issue on this project. In the future any extension
requested by a developer would be paid for by the developer. There was also discussion on including
a reversion clause, which would basically provide that if development of the site does not commence
by a certain date, the purchase price would be refunded and the property would revert to the City. It
was suggested that both a commencement date and completion date be specified. The City Attorney
will be reviewing the reversion clause issue.
The Council discussed the markings and signage for the CSAH 75/TH 25 intersection. John Simola
stated that for the County to do their work, the City must complete getting the utilities through the
intersection. Mayor Belsaas felt that there should be better signage so that people were aware of the
right turn lane. John Simola indicated that he will check into this.
12. Adjourn.
BRUCE THIELEN MOVED TO ADJOURN AT 8:15 P.M. CLINT HERBST SECONDED
THE MOTION. MOTION CARRIED UNANIMOUSLY.
Recording Secretary
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