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City Council Minutes 10-25-2004MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, October 25, 2004 - 7 p.m. Members Present: Roger Carlson, Glen Posusta, Robbie Smith, Brian Stumpf and Bruce Thielen 1. Call to Order and Pledge of Allegiance. Mayor Thielen called the meeting to order at 7 p.m and declared a quorum present. The Pledge of Allegiance was said. 2A. Consideration of approving the minutes of the October 11, 2004 regular Council meeting. John Simola asked that the minutes be clarified to state that new building on the Public Works site will reduce, not eliminate, the need for outside storage. Brian Stumpf noted a typographical error on Item #8. BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF THE OCTOBER 11, 2004 REGULAR COUNCIL MEETING WITH THE CHANGES NOTED. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 211. Consideration of approving the minutes of the October 11, 2004 Budget Workshop ROGER CARLSON MOVED TO APPROVE THE MINUTES OF THE OCTOBER 1 1, 2004 BUDGET WORKSHOP. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED. 3. Consideration of adding items to the agenda. Brian Stumpf asked that a discussion of the leaf pickup be added to the agenda and that agenda item #9 be included in the consent agenda. The City Attorney requested that consideration of approving an amendment to the easement grant and an encroachment agreement with Northern Natural Gas be added to the agenda. 4. Citizen comments/petitions, requests and complaints. Mayor Thielen explained the purpose of the citizen comment portion of the agenda. Charles Walters, 728 Acorn Circle, spoke to the Council regarding a city employee. Mr. Walters alleged that the building inspector has been biased in his treatment of Mr. Walters and has violated his rights. He cited instances of this bias as it related to the construction of his house and use of his property. Mayor Thielen asked Mr. Walters to meet with the City Administrator regarding this matter. Council Minutes - 10/25/04 5. Consent agenda. A. Consideration of ratifying new hires and departures for MCC. Recommendation: Ratify the hires and departures as identified. B. Consideration of resolution supporting construction of spent fuel storage facility and license renewal at the Monticello Nuclear Generating Plant. Recommendation: Adopt a resolution supporting construction of a spent fuel storage facility and license renewal at the Monticello Nuclear Generating Plant. Res. # 2004-81 C. Consideration of a resolution establishing an Absentee Ballot Board. Recommendation: Adopt a resolution establishing an Absentee Ballot Board. Res. #2004-80. D. Consideration of a request for a conditional use permit for a 41 unit residential concept stage planned unit development in a PZM District. Applicant: UP Development. Recommendation: Approve the concept stage planned unit development for UP Development based on a finding that the applicant has proposed a superior project in design and amenities, justifying the use and flexibility of a PUD for this site, subject to comments relating to planning, engineer, and public works issues as noted in the October 251 2004 Council agenda report and which will be addressed at the Development Stage PUD application. E. Consideration of a request for a conditional use permit for a residential concept stage planned unit development in an A -O (Agriculture - Open Space) District. Applicant: Insignia Development. Recommendation: Approve the Concept Stage PUD based on the comments from the staff report for the October 5, 2004 Planning Commission meeting. F. Consideration of authorizing payroll changes to allow electronic time recording and establish mandatory direct deposit. Recommendation: Approve the policies to authorize electronic time recording and mandatory direct deposit for all employees paid through the city payroll system. G. Review of bids and consideration of award of contract for Jefferson Commons Detention Pond, Project No. 2004-33C. Recommendation: Approve the award of the contract for Project No. 2004-33, Jefferson Commons Detention Pond as bid to Cowan Grading and Excavating, Inc. in the amount of $51,840.75. Res. #2004-83. H. Consideration of adoption of a resolution for annexation of the property comprising part of the Featherstone/Gold Nugget Development. Recommendation: Approve the resolution annexing 100 acres of property; 20 acres lying in Section 23 and 80 acres lying in Section 22, Township 121, Range 25. Res. #2004-82. 2 Council Minutes - 10/25/04 I. Consideration of authorizing plans and specifications for Chelsea Road West. Recommendation: Authorize the preparation of a feasibility report, preliminary, surveying and plans and specifications for the construction of Chelsea Road west from 90" Street to CSAH 39 and approximately 1,100 feet of School Boulevard south of proposed Chelsea Road. Res. #2004-84. J. Review of proposals for the demolition of the old Kramer house at the intersection of Minnesota Street and 7t' Street and consideration of award of contract. Recommendation: Authorize the City to enter into a contract with Fyle's Excavating for the demolition of the old Kramer house at a cost of $10,125.00. K. Consideration of holding a public information meeting for the site plan for the new one million gallon water tower located in Jefferson Commons. Recommendation: Approve scheduling a public information meeting for November 3, 2004 at 6 p.m. regarding the site plan for the new one million gallon hydropillar located in Jefferson Commons on the two acre site previously approved by the City Council. ROGER CARLSON MOVED TO APPROVE THE CONSENT AGENDA WITH THE ADDITION OF AGENDA ITEM #9 AND THE REMOVAL OF AGENDA ITEMS #5D, 5E, 5F AND 5J FOR DISCUSSION. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Robbie Smith questioned Bret Weiss on why there was such range in the bids received for the Jefferson Pond Project. Bret Weiss indicated that there are contractors who are looking for projects to finish out the construction season. He added that the contractor submitting the low bid had previously worked in the City on the Featherstone Development. 6. Consideration of items removed from the consent agenda for discussion. 5D UP Development: Brian Stumpf asked if the reason for going with no driveways on this project was because of density. City Planner Steve Grittman indicated that the developer believed this project brought a different kind of housing design to the city. The developer felt by eliminating parking along the alley it would give a cleaner look to the development. Brian Stumpf noted that the alley width was at least 28' which would be large enough to support two-way traffic. Steve Grittman indicated that this was primarily for deliveries. Brian Stumpf stated he had concerns about fire protection and garbage pickup as well as the no driveway design. Glen Posusta stated that although this is a new concept for Monticello this housing design has been used in Brooklyn Park, Maplewood and other communities. With this type of design vehicles would be in the garages and not in the driveways which makes for a neater appearance to the development. He also added that the developer would have covenants that would strictly enforce this regulation. The developer is marketing these units towards a specific user. Brian Stumpf asked if the streets in the development were private streets. Steve Grittman stated J Council Minutes - 10/25/04 that 6 1/2 Street was public and all the internal streets were private. 6 1/2 Street is proposed as a 24' street which staff has indicated is too narrow. Public Works Director, John Simola stated that Public Works and the City Engineer had the same concerns about this development as Brian Stumpf had. They also had concerns about access to Elm Street from this development but felt these issues could be worked through. Brian Stumpf o asked about the traffic generated by the proposed 41 unit development. City Engineer, Bret Weiss indicated that the average was about ten trips per day per unit. Brian Stumpf felt that the amount of traffic being generated was another reason to have 7th Street put in. He felt there was already heavy traffic on 6th Street and Elm Street and he was hesitant about adding more without knowing when 7th Street would happen. Bret Weiss stated that the right-of-way for 7th Street has not been acquired. Bruce Thielen stated that road widths has been an issue for several years. Robbie Smith concurred with Brian Stumpf about the traffic on 6th Street and cited instances of residents complaints about the traffic when previous developments in the area were approved. Planning Commission Chair Dick Frie said the idea is to provide some variety in the type of housing available in the community. He noted that the road width was discussed but emphasized that this was only concept stage approval. Dick Frie felt the concept was acceptable but could be improved upon. Brian Stumpf said he was aware that this was concept stage but felt the developer should be made aware of some of the issues that the Council discussed. Jeff O'Neill stated that Fire Chief Scott Douglas was with on a tour of a similar development in Brooklyn Park and that he will be part of the staff review of this development. Bret Weiss stated that the proposal to extend Chelsea Road West, which the Council was acting on at this meeting, might also impact the amount of traffic on 6th Street. Bruce Thielen suggested having the staff and the City Engineer work with the property owner on getting the right-of-way needed for the 7th Street roadway. GLEN POSUSTA MOVED TO APPROVE THE CONDITIONAL USE PERMIT FOR A CONCEPT STAGE PUD FOR UP DEVELOPMENT BASED ON A FINDING THAT THE APPLICANT HAS PROPOSED A SUPERIOR PROJECT IN DESIGN AND AMENITIES JUSTIFYING THE USE AND FLEXIBILITY OF PUD FOR THIS SITE. THE APPROVAL IS SUBJECT TO COMMENTS RELATING TO PLANNING, ENGINEERING AND PUBLIC WORKS ISSUES NOTED IN THE CITY STAFF REPORT AND IN COUNCIL DISCUSSION AND THESE ISSUES WILL BE ADDRESSED AT DEVELOPMENT STAGE PUD. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED WITH BRIAN STUMPF VOTING IN OPPOSITION. SE Insignia Development: Brian Stumpf asked about the proposed 705 units and what the time frame was for development of this project. The developer indicated it could be five years or more. Brian Stumpf asked about the proposed park area and associated playing fields and what it would take for the City to maintain it. Jeff O'Neill stated that the Parks Commission was looking for a ballfield complex in this area. John Simola indicated that it may take additional part-time help and possibly additional full-time staff to handle the growth. Brian Stumpf was also concerned about how the 705 units would impact staff as far as snowplowing, police protection, L Council Minutes - 10/25/04 etc. Brian Stumpf also asked about the detached single family residential (small lots) . Steve Grittman stated that while staff has not done a lot analysis it appears that these lots meet the requirements of the ordinance. He noted that the proposed development includes single family lots, detached single family (small lots), townhouses, apartments and commercial uses. Glen Posusta said what the developer is asking for at this junction does not necessarily mean it will happen that way and noted that it is proposed to be a phased development. Glen Posusta said the park development will not happen until 3-4 years into the development. He felt the City should go with larger community parks rather than small neighborhood parks such as Groveland. He felt the larger parks allowed for more efficiency in maintenance and use of personnel. Jeff O'Neill stated that the Parks Commission has been looking for area that could be developed for ballfield use since there is a high demand for this. The Parks Commission felt this was a good site because it is on School Boulevard and has good access to TH 25. Glen Posusta said he has been in contact with some of the athletic associations and they have been looking for fields for use. They indicated that if land was donated, they would maintain it. Brian Stumpf asked what Phase I would consist of. Paul Quarberg and Troy Gamble representing the developer said at this point they couldn't say what the phasing would be. He felt the first phase would likely be at the east end of the development because utilities are available in that area. Brian Stumpf asked how many phases there would be and Paul Quarberg indicated probably two phases with the apartments being put in as the need was there. It was noted that a portion of the development site is designated for commercial use for the present Schluender operation. Glen Posusta talked about completion of the section of School Boulevard extending from the proposed Insignia Development to the City owned land. It was noted that this property is owned by Shawn Weinand. Brian Stumpf asked what kind of dialogue this generated at the Planning Commission hearing. Dick Frie felt that this proposal was a 5-8 year project and he also noted the concern of township residents about being informed of what is happening in the City along the borders with the township. Dick Frie stated he had concerns about the infrastructure that would have to be put in place for this development. This is concept stage and there are still a lot of issues to be worked out and it was pointed out that staff had 19 items they wanted to addressed. Brian Stumpf said because there were 19 issues not resolved he didn't feel he could vote in favor of this as he felt these issues needed to be worked out before approval was given. Brian Stumpf asked how much if any of the property had been annexed into the City. Jeff O'Neill indicated that no portion of the proposed development is in the city limits. Glen Posusta asked about the price of the homes and Paul Quarberg indicated the starting prices would be $220,000 to $225,000. GLEN POSUSTA MOVED TO APPROVE THE CONCEPT STAGE PUD FOR INSIGNIA DEVELOPMENT WITH THE 19 ITEMS NOTED IN THE STAFF REPORT TO BE ADDRESSED AND RESOLVED. ROGER CARLSON SECONDED THE MOTION WITH 5 Council Minutes - 10/25/04 THE COMMENT THAT HE UNDERSTOOD BRIAN STUMPF' S CONCERNS BUT THIS IS CONCEPT PLAN APPROVAL AND IT WOULD BE COMING BACK TO THE COUNCIL IN THE FUTURE. MOTION CARRIED WITH BRIAN STUMPF VOTING IN OPPOSITION. SF: Electronic Time Recording/Mandatory Direct Deposit: Glen Posusta asked which employees were on the clock. City Administrator, Rick Wolfsteller stated that part of the request was to have electronic time recording which would allow more accuracy as far as the work. The Community Center and Liquor Store currently have their employees clock in. Glen Posusta asked why this was not being done in all the departments. Cathy Shuman, Finance Department indicated that the legislature recently changed the statute to allow the city to utilize electronic time recording and in order for the City to continue this practice it would need Council approval. She noted that a stand alone time keeping system could be costly but indicated that the ACS is developing a system that could be utilized with the City's current financial system. Rick Wolfsteller noted that the City was not planning for other departments to be on the clock at this time. Glen Posusta stated that it is the lower paid positions that are on the clock and he questioned why everyone shouldn't be on the clock. He felt that the electronic time keeping should be in all departments. The second part of the item is direct deposit for payroll into an employees checking or savings account. The staff noted the benefits of this type of system. GLEN POSUSTA MOVED TO APPROVE THE POLICIES TO AUTHORIZE ELECTRONIC TIME RECORDING AND MANDATORY DIRECT DEPOSIT FOR ALL EMPLOYEES PAID THROUGH THE CITY PAYROLL SYSTEM. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. SJ: Kramer House Demolition: Brian Stumpf asked if there was any consideration given to having the Fire Department burn the house rather than contract for the demolition. John Simola stated that there was a limited number of times in a year that the Fire Department could do a controlled burn and that was why they looked to have a firm do the demolition. Fire Chief, Scott Douglas stated that the Fire Department could do three burns a year. The question was raised whether this building had to be demolished immediately or could it be done after the first of the year. John Simola stated that the building is a public nuisance and should be removed. BRIAN STUMPF MOVED TO REJECT THE BIDS FOR THE DEMOLITION OF THE KRAMER HOUSE AT MINNESOTA AND 7TH STREET AND TO DIRECT THE PUBLIC WORKS DIRECTOR TO WORK WITH THE FIRE DEPARTMENT TO PLAN A CONTROLLED BURN OF THE STRUCTURE. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 7. Public Hearing - Certifying delinquent utility accounts to County Auditor for collection with real estate taxes. City Administrator stated the public hearing covers the proposed assessment for delinquent utility accounts. A revised listing of delinquent accounts was submitted to the Council. D Council Minutes - 10/25/04 Mayor Thielen opened the public hearing. There was no one present who spoke for or against the proposed assessment. Mayor Thielen then closed the public hearing. Glen Posusta asked about some of the larger water users with delinquent amounts and how the penalty was applied. He felt it was unfair that a delinquent bill of $20 received the same $50 penalty as a delinquent bill of $500. He felt the penalty should be based on the size of the delinquency with the smaller delinquents amounts receiving a smaller penalty. City Administrator, Rick Wolfsteller stated he would have to check if that is allowable under statutes. It was also noted that the $50 fee is the administrative cost to certify the delinquent accounts, which includes publication of hearing notice, mailing costs, preparation of assessment roll, etc. This cost is the same for processing a $20 delinquent bill or a $200 delinquent bill. BRIAN STUMPF MOVED TO ADOPT THE ASSESSMENT ROLL FOR THE DELINQUENT UTILITY CHARGES AS PRESENTED. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Res. #2004-78 8. Public Hearing - Certif ying delinquent miscellaneous accounts receivable (MARS) to County Auditor for collection with real estate taxes. City Administrator, Rick Wolfsteller stated that annually the City certifies any delinquent miscellaneous accounts receivable to the County Auditor. Most of the delinquent amounts relate to nuisance abatement costs such as mowing, etc. Mayor Thielen opened the public hearing. There was no one present who spoke for or against the proposed certification of the miscellaneous accounts receivable. Mayor Thielen then closed the public hearing. BRIAN STUMPF MOVED TO ADOPT THE ASSESSMENT ROLL FOR THE DELINQUENT MISCELLANEOUS ACCOUNT RECEIVABLE AS PRESENTED. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Res. #2004-79 9. Consideration of acceptance of draft Monticello Wellhead Protection Plan Part II and authorizing distribution for public comment and consideration of ordering a public hearing for review of the plan on January 10, 2005. Approved with the consent agenda to accept the Monticello Wellhead Protection Plan Part II in draft form and authorize its distribution to local units of government and other interested parties for review and comment and to schedule a public hearing for January 10, 2005 at 7 p.m. 10. Consideration of resolution declaring costs to be assessed and setting a date for assessment public hearing for TH 25/School Boulevard Traffic Signal Installation, City Project No 2004-19C. City Engineer Bret Weiss stated that three assessment scenarios had been prepared for assessing 7 Council Minutes - 10/25/04 this project. One option was based on 50% participation from MnDOT and the balance of the project cost being assessed. The second option would include 50% participation by MnDot and 10% being picked up by the City. The third option retains the 50% participation by MnDot and increases the City's contribution to 20%. In order to meet the statutory requirements, the notices were sent out prior to this meeting using Option #1 cost figures. The public hearing is proposed to be on November 8, 2004. Bret Weiss stated the project is under construction and it is planned to assess it this year even though construction will not be completed until mid-November. The City could delay the assessment until next year but then there would construction interest charges to include in the project costs. Brian Stumpf asked if there would be any type of informational meeting held prior to the assessment hearing. Bret Weiss indicated that there was an informational meeting held prior to the ordering of the improvement but there would not be one prior to the assessment hearing. Glen Posusta asked what the rush was to assess this project when some projects such as Cedar Street and Broadway were not assessed for two years after the projects were started. He questioned the logic of assessing the signal project now. City Administrator, Rick Wolfsteller stated that the project should be completed by November 15'' so the project will be completed this year. He added that normally the City tries to get the project assessed the same year the work is done. Delaying the project means that interest cost incurred by City in carrying the construction project cost is added to the totals to be assessed. Bruce Thielen stated the Council needs to select one of the options provided for the assessment of the signal project. Roger Carlson felt the City should pick up some of the cost since there was a safety benefit to the City. John Lundsten requested to speak on the proposed assessment. He stated at the public hearing prior to ordering the project he stated his opposition to this proposed assessment. He stated that the land he owns is vacant land that is currently being farmed. It generates no traffic and will not benefit from the installation of the signal. He referenced a previous assessment on his property for improvements to Dundas Road. Because of Green Acres his property received a deferment of the assessment. He stated he has paid this assessment which amounted to $200,000 and he questioned whether his property received that amount of benefit from the improvement. Mr. Lundsten said under the proposed assessment for the signal, the Wal-Mart site would be assessed at 63% and his parcel which is not developed would be assessed at 50%. Mr. Lundsten asked that his parcels be exempt from this assessment. City Engineer, Bret Weiss, responded that the Lundsten property, when developed, was estimated to generate 2000 trips and the Wal-Mart site was estimated at 7000 trips going to the signal. John 0 Council Minutes - 10/25/04 Lundsten stated he couldn't understand how bare land could generate 2000 trips. Bret Weiss stated that it was unlikely the property would remain vacant and that the City could defer the proposed assessment until such time as the property developed. Glen Posusta questioned why the housing development was not included in the assessment. Bret Weiss indicated that typically residential property is not assessed for signals as it is difficult to show the benefit to residential property for this kind of improvement. Glen Posusta felt because it was a safety issue the residential property should be included in the assessment. Bret Weiss stated that if the City deemed the signal was a benefit, the City may want to pick up some of the cost. Glen Posusta stated that by the City not picking up anything on this project when they did participate on other projects shows that the City is trying to stick it to the businesses of Monticello. He stated the City is treating commercial property differently than residential property. City Engineer, Bret Weiss noted that it is common that residential and commercial property are assessed differently. Bret Weiss stated the City has options it can select that allow City participation if the City so chooses. John Lundsten stated that he did not want his parcel assessed for improvements benefitting other properties in the area. Regardless of whether the City participated in the project or not, he did not feel his property should be assessed. Bruce Thielen pointed out that this was not the assessment hearing. The Council was being asked to select an option for assessing this project. Glen Posusta felt the City should pick up 50% of the $176,000 cost and give it to other landowners in the area and not specifically the big developers. He felt the assessment cost should be based on who was closest to the intersection. Roger Carlson stated he didn't have a problem with the City picking up 50% of the cost as there was a safety benefit in having the signal. He didn't know how far back from the intersection the assessment should be applied. He added that what is vacant land now may not be vacant in the future. Bret Weiss stated that benefit is derived at the point of development and when the Lundsten property develops it will see the benefit of the signal. Bret Weiss commented on using proximity to the intersection as the basis for assessment. He questioned if distance could justify the validity of an assessment. Glen Posusta felt that traffic counts would be a more equitable means than land mass in determining assessment amounts. Bret Weiss said even though the intent of the City was to have development pick up the cost of improvements, if the City felt there was a benefit that justified a City contribution, the City has the option to do so. Bret Weiss suggested if the Council would like to look at additional options, they should let him know what those options are and he would calculate the assessments based on that. GLEN POSUSTA MOVED TO ADOPT THE RESOLUTION DECLARING COSTS TO BE ASSESSED FOR THE TH 25/SCHOOL BOULEVARD SIGNAL AT $176,000 WITH THE CITY TO PICK UP 50% OF THE COST THROUGH AD VALOREM TAXES AND THE REMAINING 50% WOULD BE ASSESSED TO THE PARCELS NOTED ON THE ENGINEER'S PARCEL MAP BASED ON A TRIPS GENERATED SCENARIO RATHER 9 11. 12. Council Minutes - 10/25/04 THAN LAND MASS. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED WITH BRUCE THIELEN VOTING IN OPPOSITION AS HE FELT THE DEVELOPERS SHOULD BE PAYING MORE OF THE SIGNAL COST. Bret Weiss asked if the Council wanted to re -notice the affected property owners. The City Attorney indicated that was not necessary as the City could assess a lesser amount than what was noticed without having to renotify the property owners. Consideration of a resolution declaring costs to be assessed and setting a date for assessment public hearing for 2004 Core Street Reconstruction Project No. 2004-06C. Again it was questioned why the rush to assess this project when the work was not yet completed. Bret Weiss stated that on the Core Street Project the street costs were known and were calculated based on the City's street reconstruction policy. He pointed out that the construction cost index was 5.7% and that amounted to a street assessment of $2,642.50. The storm sewer work cost was not discussed at the hearing prior to ordering the improvement. Residents have indicated to John Simola that they would prefer to do their own restoration work and that would reduce the storm sewer cost somewhat. The cost of the storm sewer working including sod was approximately $19,000. Having the property owners do the restoration would reduce the cost by $4,000-$5,000. Bret Weiss stated that the drain tile work was put in place but not everyone has connected to it. The City could collect the cost at the time of connection to the drain tile rather than assess it. It was pointed out that the notices of assessment hearing were mailed on October 25th and not October 22nd as noted in the agenda item. Bret Weiss also noted that the overlay on Sandberg Road would be assessed next year. John Simola stated that the road is breaking up pretty badly and needs to be looked at. BRIAN STUMPF MOVED TO ADOPT THE RESOLUTION DECLARING THE COST TO BE ASSESSED FOR THE CORE STREET RECONSTRUCTION PROJECT NO.2004-06C EXCLUDING SANDBERG ROAD AND TO SET A PUBLIC HEARING DATE FOR NOVEMBER 8, 2004. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Consideration of extending the Joint Fire Board agreement between Monticello Township and the City of Monticello. City Administrator, Rick Wolfsteller provided background information relating to the history of the Joint Fire Board and the provisions of the agreement establishing the board. The agreement had periodically been renewed for 5 year periods. The term of the last agreement expired December 2000 but had gone unnoticed by the parties. When it was brought to the attention of the entities involved it was determined to continue on the present basis until the issue could be resolved. The Joint Fire Board felt it was time to make a decision to either finalize a new agreement or dissolve the board. 10 Council Minutes - 10/25/04 If the Joint Fire Board is dissolved, the Township wanted credit amounting to six years of fire protection service. The City Administrator felt based on the figures he had for equipment, building and land, that 3-4 years of fire protection service would be more in line. If the Joint Fire Board is to continue the City felt there needed to some modification to the agreement that would clarify what is considered capital equipment and spell out procedures for use of equipment purchased by only one of the parties involved in the agreement. The agreement states that if the board is dissolved the equipment would be sold at public sale. However since the fire department would still need equipment it would be a buyout of the Township's interest in the fire department. Rick Wolfsteller explained how he arrived at the cost for the equipment and noted that the value for the building was obtained from the Wright County Assessor. Based on these figures he came up with $260,000 as the number for the buyout of the Township's interest. With the contract price for Silver Creek and Otsego at $45/parcel, taking this rate per parcel into the $260,000 buyout amount it would come out to 3 to 3 V2 years of service not 6 years. Rick Wolfsteller stated the decision needs to be made whether to dissolve the board or continue the board under a modified agreement. Brett Holker, Monticello Township supervisor, stated the township is in support of the buyout. He didn't want to get into a discussion of numbers as he didn't think the Township and the City would agree as he felt the City would have a lower number than the Township would come up with. He said if the City wants a buyout of the township's interest the township would be looking for years of service. By using years of service the township would have some assurance as to what their cost would be in the future. He said with ownership, the township has not been able to control costs. Giving up ownership their costs would go from $30/parcel to $45/parcel. Rick Wolfsteller noted the $30/parcel does not include any new equipment cost. Bret Holker said as soon as the township is bought out they have no control over what the cost is going to be. Brett Holker said the Township was comfortable in still using the current agreement but they would want to discuss any proposed modification which includes putting a dollar value on capital equipment items and the procedures for purchase of equipment by one entity and how the other entity is charged for use of that equipment. Brian Stumpf felt the cleaner the break the better. He was comfortable with years of service but felt six years was too high. He noted that the township paid 33% of the cost but had 50% of the say in decision which he didn't feel was appropriate. He also felt having just one governing entity was simpler. Bruce Thielen said he had no problem with the City remaining in the agreement. Glen Posusta didn't feel that Rick Wolfsteller was giving proper value to the township. He compared it to a divorce where in the separation is made but it needs to be done amicably. Rick Wolfsteller emphasized the numbers were calculated based on the provisions of the agreement . If the Council approved more than that the Monticello taxpayers would be subsidizing the township. Bruce Thielen asked if five years of service would be acceptable to the Township. The township representatives present said it was not acceptable. Brett Holker said the first preference of the Township would be just to change the date of the agreement but if the City was considering any modifications to the agreement, the Township 11 Council Minutes - 10/25/04 would want to discuss those. ROBBIE SMITH MOVED TO ACCEPT THE PROPOSAL FROM MONTICELLO TOWNSHIP TO TERMINATE THE JOINT FIRE BOARD AGREEMENT AND BUYOUT THE TOWNSHIP'S SHARE OF THE JOINT FIRE DEPARTMENT IN THE FORM OF FIVE YEARS OF FUTURE SERVICE INSTEAD OF SIX. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 13. Approve payment of bills for October. Glen Posusta questioned the purchase of drywall material that was shown on the bills. John Simola indicated that was material used to board up broken windows on the Kramer house. GLEN POSUSTA MOVED TO APPROVE PAYMENT OF BILLS. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Added Items: Leaf Pickup: Brian Stumpf questioned why the fall leaf pickup couldn't take place later in the year. He said many trees have not lost their leaves yet and he noted that many homeowners use leaf stuffed Halloween bags as decoration. John Simola indicated that this was something that would have to be negotiated with the Oynx. Northern Natural Gas: The City Attorney explained that the easement between Northern Natural Gas and the City of Monticello needed to be amended to allow for the relocation of their lines in the Sunset Ponds area. John Simola explained that in the Sunset Ponds it is proposed to fill over the existing line which runs through the park land and the amount of fill over the pipe is not acceptable to Northern Natural Gas. They will be bringing in a new line eventually and the existing line will be abandoned. The encroachment agreement covers the construction of 94t' Street NE which would cross Northern Natural Gas pipeline. BRIAN STUMPF MOVED TO APPROVE THE AMENDED EASEMENT DOCUMENT AND THE ENCROACHMENT AGREEMENT BETWEEN THE CITY OF MONTICELLO AND NORTHERN NATURAL GAS. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 14. Adjourn ROBBIE SMITH MOVED TO ADJOURN AT 9:30 P.M. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary 12