Loading...
City Council Minutes 06-21-2004 SpecialMINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Monday, June 21, 2004 - 5 p.m. Members Present: Roger Carlson, Glen Posusta, Robbie Smith, Brian Stumpf and Bruce Thielen. Members Absent: None 1. Call to Order. Mayor Thielen called the meeting to order at 5:15 p.m. and declared a quorum present. 2. Consideration of approving ioint resolution for orderly annexation. Mayor Thielen stated that the Council had met in closed session to review and discuss the joint annexation resolution. Mayor Thielen asked if the Council had any additional comments on the resolution. BRIAN STUMPF MOVED TO ADOPT THE JOINT ANNEXATION RESOLUTION WITH MONTICELLO TOWNSHIP. ROGER CARLSON SECONDED THE MOTION WITH THE COMMENT THAT THE JOINT ANNEXATION RESOLUTION IS BENEFICIAL TO ALL PARTIES. MOTION CARRIED UNANIMOUSLY. Bruce Thielen commented that the orderly annexation is a planning tool which is what the City wanted from the beginning. He added that the representatives from the City and Township met on a number of occasions to come up with this proposal which the township will be voting on later this evening. Robbie Smith expressed his thanks to Bruce Thielen and Brian Stumpf and the township officials for all the time they spent in coming up with an agreement. Glen Posusta added that he felt it was better that the two entities could reach an agreement than to have an outside party such as an administrative judge make the determination. Bruce Thielen emphasized that all annexations will be driven by the property owner. Mayor Thielen introduced Chris Hood, legal counsel for the City on the annexation, and asked that he summarize the provisions of the joint resolution. Chris Hood stated property in the orderly annexation area is designated for annexation but would not be annexed unless certain conditions are met: 1. There must be a petition by the property owner requesting annexation; 2. The property must be contiguous to the current city boundary 3. Annexation can occur if directed because the Pollution Control Agency requires sewer and water be extended to an area. 4. The City initiates an MSA road project or drainage project with annexation limited to the extent of the project. Another provision of the joint resolution is the establishment of a five member Joint Planning Board consisting of two representatives from the City, two representatives from the Township and a mutually agreed upon representative from the Wright County Commissioners. The Joint Planning Board would be responsible for land use authority in the OAA area and any decision of the Joint Planning Board would be by majority vote with the exception of rezoning which would require a four-fifths majority. Another provision states that when 75% of the township is annexed, the two entities would then merge. There is also a provision for tax reimbursement to the township for any annexed area. In addition the City must provide sewer and water within three years of annexation for residential property and within five years of annexation for commercial and industrial property The joint resolution allows for joint planning and protects the township from leapfrog development. If the City does not provide utilities in the specified time frame, the townshiphas an option to initiate a detachment action. A resident questioned what a detachment action entailed and Chris Hood explained the procedure. The City agrees that no annexation will take place outside the orderly annexation area during the term of the agreement. Chris Hood pointed out there are five sections designated in the orderly annexation area. If 75% of the land within a section is annexed then that section boundary can be extended outward. Chris Hood stated that under the orderly annexation resolution, the annexation process will be more streamlined. Bruce Thielen asked that Chris Hood explain how the present process compares with the process when there is an orderly annexation agreement. Chris Hood stated presently annexation is done by ordinance which allows annexation of 60 acres at a time. The property owner petitions the City. The City prepares an ordinance, notifies affected property and conducts a public hearing on the ordinance. The procedure under an orderly annexation agreement is simplified and more cost effective. The term of the proposed annexation agreement is 15 years unless mutually terminated or the two entities merge. PJ Jeff Young, a township resident, stated that he hoped the resolution was a good one but that if the agreement does change, they will again protest at the liquor store. He asked if the agreement was similar to that of Wyoming Township. Because the Wyoming case is still in negotiation, Chris Hood would not comment on the specifics of the agreement. He noted although there were some similarities in the agreements there were also differences and a final document in the Wyoming Township annexation has not been agreed to. Jeff Young noted that three Councilmembers were up for re-election and that their group would be closely following the election. Kevin Christianson questioned whether the agreement could be terminated by just one party or by legal action. He was informed that termination of the agreement would have to be by agreement of both parties. Bruce Thielen recessed the meeting at this time. The Council moved to another room to discuss the financing for the ice arena and Chris Hood remained to field questions from the residents present concerning annexation. Bruce Thielen reconvened the meeting at 5:50 p.m. Tom Fredricks, Steve Hammer, Mary Barger and Rick Blomberg from the Monticello Youth Hockey Association were present as were representatives from the Monticello School District. Steve Hammer and Tom Fredricks reviewed the financial statements submitted regarding the ice arena. Mr. Hammer noted based on quotes they had received in January they had anticipated that they could build the facility for approximately $2.2 million which was close to their original goal. Since that time steel prices have almost doubled and there were additional expenses such as the elevator and a separate sewer connection and now the group finds themself short almost $283,000 in funds. The MYHA stated their belief about the benefits the ice facility would bring to the City noting that at the present time people are going to St. Cloud or Buffalo for their ice time. With a facility in Monticello these people would be coming to Monticello and conducting activities such as shopping etc. in Monticello so there would be a trickle down effect for the businesses in the City. Steve Hammer stated that there has been a great deal of local support for the ice arena including donations of materials, labor etc. What the MYHA was asking of the City was to increase their commitment from $40,000 a year to $75,000 a year for ten years. Bruce Thielen stated there are statutes that require the City to receive something of value in exchange for their contribution. The City was to initially to receive 266 hours of ice time for their $40,000 contribution. The question was if the City committed to $75,000 was there any additional ice time that could be given for the increased 3 donation. The MYHA indicated there was not. The group then discussed other possible options such as a loan to the MYHA, purchase and donation of equipment or extend the ice time out for 20 years instead of ten. Rick Wolfsteller questioned whether any excess revenues after expenses could be utilized to reduce the $75,000 amount needed annually. The MYHA indicated that any excess revenues would be going into reserves for equipment replacement, etc. Glen Posusta questioned if ice time rates could be increased to generate some of the $283,000 needed since it appears that ice time is in demand. He suggested that the group could charge different rates for peak time and non -peak times. Tom Fredricks cautioned that increasing the prices may end up causing people to quit skating. Mayor Thielen asked for comments from the representatives of the school district. Mike Benedetto indicted that the school district had approved the project based on three conditions which included 1) State department approval; 2) approval of the drawings and 3) funding to secure the loan needed. Two of the three conditions have been met. He noted that time is a problem as the later it gets into the season the less revenue will be generated The school district has said they will not go to the taxpayers for additional funding. He noted that residents would question an increase commitment to this project when teachers were being laid off and class sizes were increasing. Bruce Thielen asked for the Council's opinion. Brian Stumpf asked what could the City do and could the MYHA extend the hours out for more years. Again the various options were discussed such as the City buying the ice making equipment and donating it to the school or making a donation in exchange for advertising for the MCC. The consensus was that the preferred solution was to make the $75,000 commitment for 10 years with the ice time running over a period of 20 years. The question was whether the City could legally prepay for the ice time. Bruce Thielen recessed the meeting for a brief time so that the City Administrator could contact the City Attorney regarding this issue. Upon reconvening, Rick Wolfsteller reported that the City Attorney believed the City could prepay the ice time. GLEN POSUSTA MOVED TO INCREASE THE CITY'S FUNDING COMMITMENT TO THE ICE ARENA FROM $40,000 A YEAR TO $75,000 A YEAR FOR 10 YEARS WITH THE INCREASE FUNDING TO BE USED TO PAY OFF THE LOAN WITH THE CITY RECEIVING ICE TIME OVER A PERIOD OF 20 YEARS IN EXCHANGE FOR THE FUNDING COMMITMENT. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY WITH ADDITIONAL COMMENTS. Roger Carlson stated he was discouraged that the City was almost doubling its funding commitment. Robbie Smith concurred and felt that the MYHA need to keep on with its fund raising activities. ROBBIE SMITH MOVED TO ADJOURN AT 6:30 P.M. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 4 Recording Secretary