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City Council Minutes 09-25-2006Council Minutes: 9/25/06 MINUTES REGULAR MEETING — MONTICELLO CITY COUNCIL Monday September 25, 2006 — 7 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Glen Posusta and Brian Stumpf. Members Absent: None 1. Call to Order and Pledge of Allegiance. Mayor Herbst called the meeting to order at 7 p.m. and declared a quorum present. The Pledge of Allegiance was said. 2A. Approve minutes of September 11, 2006 regular Council meeting. Tom Perrault stated under approval of the minutes it should read, "at least 40% of the funds would go to public transportation." Wayne Mayer made a change to the language in the third paragraph under Item #6 to read, "Wayne Mayer asked for an explanation of the resolution that the City was requested to approve." GLEN POSUSTA MOVED TO APPROVE THE MINUTES OF THE SEPTEMBER 11, 2006 REGULAR COUNCIL MEETING WITH THE CHANGES NOTED. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2B. Approve minutes of September 11, 2006 Special Council meeting. Tom Perrault stated his vote in opposition to approving the preliminary budget and tax levy was because he did not believe in the concept of the franchise fee for street lighting. WAYNE MAYER MOVED TO APPROVE THE MINUTES OF THE SEPTEMBER 11, 2006 SPECIAL COUNCIL MEETING. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2C. Approve minutes of September 13, 2006 Special Council meeting. WAYNE MAYER MOVED TO APPROVE THE MINUTES OF THE SEPTEMBER 13, 2006 SPECIAL COUNCIL MEETING. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Consideration of adding items to the agenda. Glen Posusta suggested adding agenda item #11, Approving Plans and Specifications and Advertising for bids for improvements at the Groveland Park to the consent agenda. He noted that there was only one person in attendance at the informational meeting on the Groveland Park Improvements held on September 21, 2006. BRIAN STUMPF MOVED TO PLACE AGENDA ITEM #9, AWARD OF CONTRACT FOR EXTENSION OF DALTON AVENUE, DALTON WAY AND DALTON COURT TO THE Council Minutes: 9/25/06 CONSENT AGENDA AND TO ADD AGENDA ITEM #11, APPROVING PLANS AND SPECIFICATIONS AND ADVERTISING FOR BIDS FOR PARKING LOT AND HARDCOURT IMPROVEMENTS FOR GROVELAND PARK. TO THE CONSENT AGENDA. Other items added to the agenda were: 1) Discussion of the proposed 2007 levy; 2) The 2006 Core Street Reconstruction Project; and 3) Employment agreement for City Administrator position. 4. Citizen comments, petitions, requests and concerns. No one spoke under citizens comments. 5. Consent Agenda: A. Consideration of ratifying hires and departures MCC, Water and Streets. Recommendation: Approve hires and departures as identified. B. Consideration of approving request for charitable gambling license for Wright County Ducks Unlimited for November 16, 2006 at Jala Penos. Recommendation: Adopt a resolution authorizing the State Gambling Control Board to issue the charitable gambling license to Wright County Ducks Unlimited to conduct charitable gambling activities at Jala Peno's on November 16, 2006. Resolution No. 2006-74. C. Consideration of a request by Crostini Grille to extend the time frame for the patio enclosure to encroach into the right of way. Recommendation: Consider extending the time frame of the license agreement to cover the holiday period. D. Consideration of appointing election judges for the November 7, 2006 general election. Recommendation: Appoint the following election judges for the November 7, 2006 general election: Gregory Ashfeld, Gladys Bitzer, Joan Bondhus, Ron Broekemeier, Janet Bromberg, Edith Custer, Rosemary Dahl, Mary Daniels, Agnes DeMarais, Kristi DeMarais, Richard Doucette, Jamie Fisher, Kaye Gauthier, Lynnea Gillham, Jan Irvine, Harvey Kendall, Lori Kraemer, Florence Mayer, Arlene McIntire, Judy Moody, Merrijo Nesland, Richard Quick, Jeanette Smith, Randy Smith, Darlene Solberg, Rita Soltau, Patricia Ann Sonju-Thielman, Opal Stokes, Sandy Suchy, Diane Wefel and Lorraine Wolff. E. Consideration of modification to the Otter Creek Crossing 3rd Addition Plat. Recommendation: Adopt a resolution approving the modified final plat of the Otter Creek Crossing 3rd Addition. F. Consideration to ratify the EDA approval of GMEF Loan No. 025 and the Loan Agreement (Business Subsidy Agreement) between the EDA and Karlsburger Foods, Inc. Recommendation: Ratifying the EDA approval of GMEF Loan No. 025 for Karlsburger Foods, Inc. is consistent with the GMEF Guidelines and approving the Business Subsidy Agreement within the Loan Agreement between the EDA and Karlsburger Foods, Inc. Council Minutes: 9/25/06 G. Consideration of an amendment to Chapter 11 of the Monticello Zoning Ordinance regulating the B-1 (Neighborhood Business District.) Recommendation: Adopt an amendment to Chapter 11 of the Monticello Zoning Ordinance regulating the B-1 (Neighborhood Business) District H. Consideration of a request for rezoning from R-2 (Single and Two Family Residential) to B-1 (Neighborhood Business) for 530 West Broadway. Applicant: David Thielman/Gateway Music Festivals. Recommendation: Approve an ordinance amendment rezoning 530 West Broadway from R-2 to B-1 based on a finding that the proposed use is consistent with the character of the surrounding area and the intent of the Comprehensive Plan, subject to the conditions that any future tenant must obtain a conditional use permit prior to operation, in compliance with the amended ordinance. I. Consideration to correct formal record by rescinding a motion to approve a conditional use permit for drive-through facility for Broadway Market with conditions to redesign a drive-through and approving a motion to approve a conditional use permit for a drive- through facility with no conditions. Recommendation: 1) Move to rescind the August 28, 2006 approval of the conditional use permit for a drive through facility with the following conditions: a) The parking lot shall be modified to include an access lane to the west side of the parking lot and the drive through entrance. Said drive lane shall be delineated with curbed islands and contain directional signage; b) The entire north side of the drive lane for the drive through shall be curbed to create stacking space for six vehicles and c) The island south of the pre -menu board shall be removed to allow room for a passing lane around the drive through; and 2) approve a conditional use permit with no conditions for a drive through facility for Broadway Market, based on a finding that the proposed use is consistent with the intent of the PZM District. J. Consideration of authorizing preliminary survey and feasibility study relating to reconstruction of Chelsea Road between Fallon Avenue and County Road 18. Recommendation: Authorize the feasibility report, topographic survey and soil borings for the reconstruction of Chelsea Road from CSAH 18 to Fallon Avenue, City Project No. 2006-31 C. K. Consideration of award of contract for extension of Dalton Avenue, Dalton Way and Dalton Court, City Project No. 2006-15C. Recommendation: Approve the award of a contract to R.L. Larson Excavating, Inc. in the amount of $1,003,560.02 including Alternate #1 for City Project No. 2006-15C the extension of Dalton Avenue, Dalton Way and Dalton Court. M. Consideration of approving plans and specifications and advertising for bids for parking lot and hardcourt improvements for Groveland Park, City Project No. 2006-27C. Recommendation: Approve the plans and specifications for the parking lot and hardcourt for Groveland Park, Project No. 2006-27C and authorize advertising for bids for the improvement. Items #5C, #5G, #5H and #5I were removed from the consent agenda for discussion. BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEMS #5C, #5G, #5H AND #5H AND THE ADDITION OF AGENDA ITEM Council Minutes: 9/25/06 #9 AS #5L AND AGENDA ITEM #11 AS #5M. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 6. Consideration of items removed from the consent agenda for discussion. #SC: Request by Crostini Grill for extension of time frame for license agreement for encroachment into right of way: Bob Hellman from Crostini Grille indicated they would like to keep the patio structure up year round and remove the skirting. The only part of the structure that would remain up would be the poles and the roof. It is their plan to use the structure for various activities over the holiday season (Thanksgiving through New Years). There is 8 Meet of sidewalk beyond the patio structure. Glen Posusta noted his concern about whether the structure was designed to handle a snow load and because of the structure's slanted roof if there was any danger of snow sliding off the roof onto the sidewalk. Bob Hellman indicated the structure was built for a snow load and he didn't anticipate the slope of the roof was so great as to cause the snow to slide off. Wayne Mayer stated while initially he was skeptical of having the patio structure encroaching into the right of way, it seems to have worked out well. He did caution that they would need to monitor the snow plowing in the area for snow being thrown up in the sidewalk area. WAYNE MAYER MOVED TO EXTEND THE TIME FRAME FOR THE LICENSE AGREEMENT WITH CROSTINI GRILLE THROUGH THE HOLIDAY PERIOD WITH THE UNDERSTANDING THAT THEY WILL SIGN AN AGREEMENT INDICATING THE CITY WOULD NOT BE HELD LIABLE FOR ANY POTENTIAL DAMAGE AS A RESULT OF SNOW REMOVAL AND ALLOW THE STRUCTURE TO REMAIN WITH SKIRTING REMOVED. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. #5G Ordinance Amendment for Chapter 11 of the zoning ordinance regulating the B-1 (Neighborhood Business) District: Kimberly Holien from Northwest Associated Consultants reviewed the proposed ordinance amendment. The B-1 District allows for commercial use embedded in a residential district to service the surrounding neighborhood. However the Planning Commission did not feel that in a small community a business would only be serving the immediate neighborhood. The City currently has one B-1 site. Wayne Mayer questioned the chapter and sections of the ordinance that were referenced in the amendment. Kimberly Holien noted the references were general and that they could be eliminated from the ordinance if that was what the Council wanted. City Attorney, Tom Scott concurred that the ordinance amendment didn't have to reference a particular section. Clint Herbst stated he was not in favor of any business in a residential neighborhood. The proposed ordinance came up in the Planning Commission's consideration of a request for the property at 530 West Broadway. The property which is used as a business is currently a legal non -conforming use. Any new use of this site would require a conditional use permit. TOM PERRAULT MOVED TO APPROVE THE AMENDMENT TO CHAPTER 11 OF THE MONTICELLO ZONING ORDINANCE WITH THE CHAPTER AND SECTION REFERENCES REMOVED REGULATING THE B-1 (NEIGHBORHOOD BUSINESS) DISTRICT. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Council Minutes: 9/25/06 #5H Rezoning request from R-2 to B -I for 530 West Broadway: Kimberly Holien noted if the Council approved the rezoning request it would be under the parameters of the approved ordinance amendment. Kimberly Holien reviewed the staff report noting that at the public hearing held by the Planning Commission the concern was raised that this was spot zoning. The B-1 designation is kind of spot zoning. The only condition on the site is that the parking lot be improved if the property is used for a commercial purpose. As it currently exists the parking lot has no striping or delineation. As long as the present use remains, no additional conditional use permit is required but any change in use would require a conditional use permit. Clint Herbst didn't feel business uses should be occurring in the residential areas. This property's previous use was that of a funeral home and its present business use is less intense than the funeral home. It was thought if the business use ceased, the building most likely would be converted to a duplex. Glen Posusta questioned if adjacent property owners had been notified of the proposed zoning change and staff indicated they were. Wayne Mayer noted in the staff report it stated that the applicant was proposing to relocate his business and was requesting rezoning of the site so he could market the property. Wayne Mayer stated he didn't feel comfortable with rezoning property to help somebody market it. He felt it would be more appropriate that when the property was sold the new owners would come before the Council to request the rezoning. Clint Herbst stated his concern is what is happening with the properties adjacent to this site. He would like to have the applicant come in for a conditional use permit so residents know what is coming in rather than having the property rezoned first and then a different locates to the site. BRIAN STUMPF MOVED TO DENY THE REQUEST FOR REZONING FROM R-2 TO B-1 FOR 530 WEST BROADWAY BASED ON A FINDING THAT THE PROPOSED USE IS NOT CONSISTENT WITH THE INTENT OF THE COMPREHENSIVE PLAN. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. In additional discussion, Jeff O'Neill noted that with the R-2 zoning you cannot get a conditional use permit. Clint Herbst felt the commercial use presently there would make other adjacent property owners also request rezoning. Tom Perrault thought it likely that more of the residential along Broadway will be converted to commercial uses. Brian Stumpf stated the reason he is not in favor of rezoning is because it is being rezoned to market the site. #5I Conditional Use Permit for Broadway Market (Steiner Development): Wayne Mayer asked that the item be paraphrased to make it less confusing. Jeff O'Neill stated there were some modifications to the plan. The previous approval was with the developer being able to determine how to configure the drive through layout. Jeff O'Neill said there was additional staff study of it Wayne Mayer asked about the two-way traffic coming from the O'Ryans area and if it runs parallel with CSAH 75. If so when the traffic comes to what appears has a hook on the plan is there still sufficient room for two way traffic. It was stated in the section of the plan where it is signed "Do Not Stand" that island needs to be removed to allow for drive through. Some parking spaces along CSAH 75 would be removed for a parking lane. The plan was short on parking stalls but the applicant did apply for a conditional use permit for joint parking. Council Minutes: 9/25/06 GLEN POSUSTA MOVED TO RESCIND THE AUGUST 28, 2006 COUNCIL APPROVAL OF THE CONDITIONAL USE PERMIT FOR THE DRIVE THROUGH FACILITY FOR BROADWAY MARKET. BRIAN STUMPF SECONDED THE MOTION. Lisa Diehl representing Steiner Development, 3610 TH 101, Wayzata asked for clarification on the motion. The response was that 1) "Do Not Stand" area to be curbed off, 2) All drive through traffic will be directed to the rear of the lot and 3) Bumpout be removed to allow for paving area. Lisa Diehl stated after the Fire Chief bought forward a concern about fire trucks having full access.. Angela Schumann told Jeff O'Neill that the developer was agreeable to the conditions listed. Lisa Diehl said there apparently was a misunderstanding. She said they were in favoring of signing it rather than combining it with other conditions. Brian Stumpf said he didn't want to speak for the Fire Chief but personally he felt that would be the last place he would locate it and make the trucks pass through the drive-through section. He felt another route would be safer. Jeff O'Neill said if the summary was wrong they should go back and get it resolved. Glen Posusta said a big problem was the bumpout. Wayne Mayer asked the reason for having the bumpout and Lisa Diehl said it was to protect the trucks going through. Lisa Diehl suggested changing the signing to direct this as one-way traffic flow. Kimberly Holien. noted there is a "Trucks Only" sign on Hart Boulevard. GLEN POSUSTA MOVED TO RESCIND THE MOTION TO RESCIND APPROVAL OF THE CONDITIONAL USE PERMIT GRANTED ON AUGUST 28, 2006 AND TO TABLE THIS MATTER UNTIL THE NEXT MEETING WHEN THE CONDITIONS RELATING TO THE CONDITIONAL USE PERMIT CAN BE CLARIFIED. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 8. Review of updated information for Street Lighting improvements on School Boulevard from Edmonson Avenue to Fenning Avenue and 7th Street East from Washington Street to St. Benedicts and Phase II of Pedestrian Safety Improvements for School Boulevard. This item was moved up on the agenda to accommodate those present who wish to address the item. City Engineer, Bruce Westby stated at the last meeting the Council had requested additional information concerning these projects be brought back at this meeting. Lighting Project #1 covered street lighting on School Boulevard from Edmonson Avenue to Fallon Avenue. The Council at the September 11, 2006 meeting expressed concern about the lack of lighting on the pedestrian facilities along School Boulevard. Bruce Westby presented three layouts for Council consideration. Layout #1 A provided lighting for the pathway by adding light fixtures on the back side of the proposed poles and fixtures mounted on 14' poles between the proposed street lights. A total of 17 street lights with the mounted light fixtures for pedestrian lighting and 19 individual pedestrian lights would be installed under this plan. Plans #1B and #1C covered the same area but with just a different street light layout. The Council needs to determine what level of lighting they want on the pathway. Clint Herbst asked about the difference in the number of lights on the plans but that cost difference was not that great. Bruce Westby stated the costly part is not the light but the wiring. The prices he submitted do not include maintenance costs. Glen Posusta believes the Council Minutes: 9/25/06 maintenance cost would be prohibitive and felt the project should be done without the maintenance agreement. Glen Posusta felt lights 300'-350' apart was a ridiculous idea because it wouldn't light up a sufficient area. He felt that distance might be okay for the streets lights because they are staggered but he didn't think that it would work on the pathway. It was noted that 300'-350' was the standard spacing for lights. Bruce Westby noted the previous design was not approved by Great River Energy so the layout was revised and has been approved by Great River Energy. Clint Herbst said the City's goal is to make the area safe, however he felt they need to check out having the City maintain the lights. Brian Stumpf asked where the money was coming from for these improvements. Bruce Westby said the only area that could be assessed is the School District property and they are opposed to any assessment. Brian Stumpf noted that the franchise fee is not effective yet so there would be interim funding needed for the project. City Administrator, Rick Wolfsteller indicated the City could pay for the improvements out of reserves and then reimburse the reserve fund from revenue generated by a franchise fee. Project #4 covered the street lights at 7th Street and Highland Way. No pedestrian lights are proposed as part of this project. The major discussion at the last meeting was cost and funding sources. Ryan Companies has agreed to contribute $30,000 of the $96,000 project costs. Clint Herbst asked about dedication of the three lights which are not usable. Bruce Westby stated that lights in question are not the design the City uses and therefore Xcel Energy would not maintain them. The lights would also have to be re -wired because they are tied to the parking lot wiring. Glen Posusta asked how this development got by without paying for lights for the entire area and only installing three lights. Jeff O'Neill said there was a misunderstanding about the lights that were needed. Tom Perrault felt the City should wait to see what the lighting needs are once Target and that immediate area develops. Clint Herbst asked if the Ryan Companies expected the lights to be installed immediately. Brian Stumpf felt the most important thing was to get the pathway along School Boulevard taken care off. If the City moves ahead with the project Ryan Companies would pay $30,000. Brian Stumpf said the City should check with Ryan Companies to see if the funding would still be available if the street lighting was not installed until April. Brian Stumpf felt the City should hold off on Highland Way but proceed with School Boulevard using Layout # 1 A. Phase II of the pedestrian safety improvements for School Boulevard were discussed. The improvements include construction of two bituminous paths on the south side of School Boulevard between Country Avenue and Farmstead Avenue and between the two mid -block crossings on School Boulevard including a concrete walk between School Boulevard and Falcon Avenue. The project also includes making the temporary bumpouts permanent, construction of pedestrian curb ramps and a pedestrian flasher signal. There was discussion on the location of the crossing. Bruce Westby thought it might more appropriate to have the crosswalk at the intersection. At the last meeting it was requested that staff talk with the School District. The School District is supportive of the improvement but didn't want to be assessed for the improvements. Residents are opposed to concrete sidewalk between Falcon Avenue and School Boulevard and felt the mid -block crossing at Eider Lane would be safer for the children. Bruce Westby did not recommend a crosswalk at this location. Clint Herbst said at least with the crosswalk at the intersection you would have people stopping and starting whereas having the crossing mid -block means people will have stopped at the stop signs and by mid -block would have gotten up to a pretty good speed. The Council discussed the safety conditions on School Boulevard and the question was raised why there were no turn lanes on School Boulevard. Glen Council Minutes: 9/25/06 Posusta felt it was something the City should look into. Bruce Westby felt there was sufficient right of way to handle the addition of turn lanes. Glen Posusta suggested getting input from the School District. There was discussion on sources of power for the light. Power would come from 2-3 sources; Edmonson Avenue and School Boulevard, Fallon Avenue and School Boulevard and Fenning Avenue and School Boulevard. Brian Stumpf felt since it was getting late in the season and they need to meet with the School District, they should hold off on this until all the issues are resolved. Wayne Mayer asked which option would have least modification to wire size. Bruce Westby indicated that would be Layout #IA. TOM PERRAULT MOVED TO TABLE ACTION ON ALL LIGHTING AND PEDESTRIAN SAFETY RPOJECTS. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 10. Consideration to hear the findings of the Broadband Feasibility Study and to approve the recommendation of the Fiber Optic Task Force. This item was moved up on the agenda to accommodate members of the Optic Fiber Task Force who were in attendance at the meeting. Doug Dawson from CCG Consulting who did the feasibility study for broadband service gave a presentation to the Council. He stated that they looked at the financial, engineering and legal aspects to see if was feasible to have the City of Monticello provide fiber optics to its residents. They did a telephone survey which he stated is reliable to 95% accuracy. The survey was sent to 270 households. 84% felt the City should provide cable, telephone, data access and 64% indicated they would switch to the City if the City offered these services. Doug Dawson reviewed other aspects of the survey noting that residents were more interested in cable TV. While they did not survey businesses their firm did conduct telephone interview with a number of them. The business owners were more interested in quality of service and fast response time in solving a problem and residents were more interested in cost savings. The study also identified why the community would benefit from having fiber optics. One area of benefit was economic development. Craig Rapp from Springsted stated that broadband has made significant impact on economic development. For each $1 invested in broadband there is $3 in economic benefit. He talked about the community's vision as far as economic development. Communities that use broadband as an incentive target IT companies. Other areas of benefit include education, health care, improved city services and telecommuting. Savings the residents would realize from utilizing the service would help stimulate the local community and the profits that are realized by the entity providing the service would stay in the community. The network would be laid out by putting fiber in every street in town. When a person signs up for service the fiber loop would be extended to that home. Doug Dawson reviewed the different types of technology and the level of service it provides. Doug Dawson felt that 20 years out fiber optics will still be the best technology. Council Minutes: 9/25/06 Doug Dawson went over revenue assumptions that were used in the study. The City would provide a discount of 15% to their customers and each primary product would be enhanced. The City would increase rates to compensate for increases in programming costs for cable TV. Other rates (data and telephone) would not be increased. The City would offer everything as far as products. The task force is recommending that City provide voice services but purchase the switching from an outside vendor at least for now. If the City decides they would put in switching the City would have to hold a referendum and get 65% approval. As part of the study CCG Consulting looked at rates for the services. At the present time the rates in Monticello for cable, telephone and data are among the highest. Doug Dawson discussed the expenditures for the system. The largest expenditure would be the programming. There is a cooperative of service providers (NCTC) National Cable TV Cooperative. However at the present time there is a moratorium on new members so the city would have to wait until the moratorium was lifted or find another cooperative. In addition there would be cost for personnel. It is estimated 9 employees with technical skill would be needed to run the system. The study also based expenditure cost on the city purchasing switching from an outside provider. Brenda Krueger from Springsted discussed the bonding required for the system. There would be short term financing for the construction which would be about 18 months. There would be a long term revenue bond running for 20 years which would finance the construction loan, interest, two years of capital, capitalized interest making a total bond of about $23,000,000-$24,000,000. In the early years the revenue would probably just cover operating costs until more residents have signed up for the service but later years enough revenue should be generated to cover all costs of the system. Brian Stumpf asked if there were additional savings if the City could utilize any the fiber optics TDS has in place. Doug Dawson said if the City could share other facilities, there would be a cost savings. Mr. 011ig, from TDS indicated that their firm does have some fiber optics in place. Doug Dawson indicated that this portion of the plan assumes the City is doing everything on their own. However, he noted there are cities that have partnered with other providers within their community. Milda Hedbloom talked about the legal issues which include: 1) The authority of cities to engage in telecommunication services. She stated the authority is inherent or implied authority. While the power of the city do so is not specifically identified, no city who has entered into providing the service has been challenged in court that they lack statutory authority to do so. The telephone portion of the statute has some specific conditions. If a city wants to provide the switching capability that must be approved through a referendum with 65% approval. Other items she felt the city needed to consider was carrying out an education program to let residents know what is being provided. She noted that there may be some issues with current providers that may end up in legal action. She added that the LMC does provide insurance coverage for this. The recommendations of the task force were: 1) there are benefits to the community and its residents by having the City build and operate a fiber network; 2) there are no legal impediments to prevent the City from doing so; 3) there is a financing method in the revenue bond that would keep taxpayers from being at risk by the city investment in a fiber network. Because of its size Council Minutes: 9/25/06 the City would need a larger amount of customers to make this work, at least 50%-55%. They also recommended doing an education program which the Task Force would be responsible for. Glen Posusta suggested that if residents had any questions regarding the fiber optic system, they should contact the Council or there would be information on www.Monticellofiberoptic.com The task force has a plan on how to carry the education program forward with the education program to be done between now and December, assuming the Council moves forward. Brian Stumpf asked that it be considered as part of the motion that City try to work with the local providers such as TDS to reduce cost for the fiber optic system. Glen Posusta felt that would be up to TDS. Wayne Mayer said it has been past practice for the Council to try to keep things on a local basis and he didn't anticipate this would be any different. GLEN POSUSTA MOVED TO PROCEED WITH A CITYWIDE BROADBAND FIBER OPTIC NETWORK PROJECT FOR THE PROVISION OF TELECOMMUNCIATIONS SERVICES BY THE CITY TO ALL ITS RESIDENTS AND BUSINESSES ON THE CONDITION OF FINANCING SUCH SERVICES SOLELY BY REVENUES AND NOT BY A TAX LEVY. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 7. Consideration of approving resolution declaring costs to be assessed; authorizing preparation of assessment rolls and setting a public hearing date for the following projects: Shibani Bisson from WSB & Associates reviewed the process for the assessment of the construction projects. It is proposed to schedule the assessment hearings for these projects on October 23, 2006 in order to meet the cutoff date for submitting assessments to the County. a. Meadow Oak Avenue, Project No. 2005-05C This project covered the extension of Meadow Oak Avenue to CSAH 18. Monticello Industrial Park and Resurrection Lutheran Church are proposed to be assessed a total of $477,079.80 for the improvements and $249,022.50 will be funded utility trunk funds. WAYNE MAYER MOVED TO ADOPT THE RESOLUTION DECLARING THE COSTS TO BE ASSESSED FOR THE EXTENSION OF MEADOW OAK AVENUE FROM ITS CURRENT TERMINI TO CSAH 18 AND TO SET A PUBLIC HEARING FOR OCTOBER 23, 2006. b. School Boulevard west (Deegan Avenue to Redford Lane), Project No. 2005-02C Among the properties proposed to be assessed under this project are Ocello LLC, Prairie Ponds and Taco Johns with a total amount of $419,673.00 being assessed. In addition the City owned development, Jefferson Commons picked up $826,452 in cost and city trunk fund reserves picked up $147,872 of project costs. City Administrator, Rick Wolfsteller noted that in the Jefferson Commons development there is an agreement in place with River City Lanes. TOM PERRAULT MOVED TO APPROVE THE RESOLUTION FOR THE IMPROVEMENT PROJECT DECLARING THE COSTS TO BE ASSESSED AND Council Minutes: 9/25/06 SETTING THE ASSESSMENT HEARING FOR OCTOBER 23, 2006. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. C. 71h Street/Highland Way, Project No. 2004-02C A portion of the project costs was funded through a special assessment agreement with Ryan Companies and the traffic signal at CSAH 75 and Highland Way are proposed to be assessed against adjacent benefiting properties based on trip generation. It is proposed to assess apartment buildings in this area for a portion of the cost. The signal would be funded 50% by the City, 25% by Ryan Companies and 25% to properties along CSAH 75. Tom Perrault indicated he did not feel the apartment buildings should be assessed for this project. Shibani Bisson noted that these properties were shown as non-residential. GLEN POSUSTA MOVED TO ADOPT A RESOLUTION FOR THE IMPROVEMENT PROJECT DECLARING COSTS TO BE ASSESSED AND SETTING THE ASSESSMENT HEARING FOR OCTOBER 23, 2006. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION. d. CSAH 18/I-94 Interchange, Project No. 2004 -OIC Properties proposed to be assessed under this project include the Union Crossings development (Target/Home Depot sites), Monticello Industrial Park, Outlot A of Liberty Park and the Riverview Square Addition. TOM PERRAULT MOVED TO ADOPT A RESOLUTION FOR THE IMPROVEMENT PROJECT DECLARING THE COSTS TO BE ASSESSED, AND SETTING THE ASSESSMENT HEARING FOR OCTOBER 23, 2006. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. e. 2006 Street Reconstruction, Project No. 2006-01C. At the public hearing on the improvement project it was estimated that the reconstruction cost for a residential lot would be $3,000 per unit and the sidewalk would be $200 per unit. Due to increases in construction cost these figures came in at $3,150 for street reconstruction and about $500 for the sidewalk. Clint Herbst noted that this reconstruction did not appear to go as smoothly as previous projects. He indicated that he had received a number of complaints from residents impacted by the construction. Brian Stumpf questioned the assessment for the Ritze property which was shown as being assessed 273 feet at the commercial rate. Since a portion of the site is used as a residence he asked whether the assessment could be split with half of the property be assessed at a commercial rate and half as residential. Another option would be to assess based on number of residential units that could be contained on the site. Council directed the consulting engineer to look at this property further. Council Minutes: 9/25/06 Tom Perrault asked about the assessment on the property at 1129 West Broadway, now platted as the Pineview Addition which had received an assessment based on commercial use. The engineer was also directed to study this property further and provide and update to the Council. BRIAN STUMPF MOVED TO ADOPT THE RESOLUTION FOR THE IMPROVEMENT PROJECT DECLARING THE COSTS TO BE ASSESSED AND SETTING THE ASSESSMENT HEARING FOR OCTOBER 23, 2006. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. f. Chelsea Road West/Dalton Avenue (formerly School Blvd) Project No. 2005-11C It was noted that the assessment to the Chadwick and Moon Motors property were part of an overall agreement between Chadwick and the City. The total amount proposed to be assessed is $2,683,166.01. WAYNE MAYER MOVED TO ADOPT A RESOLUTION FOR THE IMPROVEMENT PROJECT DECLARING THE COSTS TO BE ASSESSED AND SETTING THE ASSESSMENT HEARING FOR OCTOBER 23, 2006. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 9. Consideration of award of contract for extension of Dalton Avenue, Dalton Way and Dalton Court, City Project No. 2006-15C. Approved with the consent agenda as #5K. 11. Consideration of approving plans, specifications and advertising for bids for parking lot and hardcourt for Groveland Park, City Project No. 2006-27C. Approved with the consent agenda as #5L. 12. Consideration of authorizing improvements for the River Mill Pathway between Mill Run Road and River Forest Drive. This segment of trail had been proposed for paving some time ago but had been delayed to see how the trail would fit in with the proposed north frontage road. Jeff O'Neill stated that the decision to complete the path is dependent on the alignment of the north frontage road but a decision on the frontage road could be 3-4 years away. Clint Herbst noted the traffic in the area. Glen Posusta asked why they didn't pull the road closer to the freeway and further away from the residential area. Shibani Bisson said there was a flat area that they were trying to meet. They could put it closer to the interstate but the retaining wall would have to be higher. Another issue would be that they would be within MN DOT right-of-way and they would need to get permission from MnDOT. Clint Herbst asked if there was a possibility of getting the work done this fall. Shibani Bisson stated it would be pretty tight schedule. She questioned if funding had been established for this project. The Council felt if the project goes forward, they would like to see it happen this year if possible. Council Minutes: 9/25/06 CLINT HERBST MOVED TO AUTHORIZE PREPARATION OF PLANS AND OBTAIN QUOTES TO CONSTRUCT THE RIVER MILL PATHWAY AS A BITUMINOUS PATHWAY AND IF POSSIBLE TO GET IT STARTED THIS YEAR AND IF BITUMINOUS CANNOT BE PLACED THIS YEAR AT LEAST DO THE SUBGRADE PREPARATION AND BASE. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Added Items: Street Reconstruction Project: Tom Perrault thanked the Street Department for going out to the site and cleaning up the area after the rainfall. The Class V is supposed to be placed this week and that should take care of the problem. City Administrator Position: Clint Herbst indicated that the Personnel Committee reviewed the employment contract for the City Administrator position being offered to Jeff O'Neill. He noted the contract had a 5% increase in wages making the contract amount $86,000. There is a three month severance clause. After December 31, 2007 termination without just cause could occur. Brian Stumpf stated his appreciation for the years of service given by Rick Wolfsteller in his role as City Administrator and Chief Financial Officer. BRIAN STUMPF MOVED TO APPROVE THE EMPLOYMENT AGREEMENT BETWEEN THE CITY AND JEFF O'NEILL FOR THE CITY ADMINISTRATOR POSITION. Tom Scott, City Attorney, suggested adding language to Section 4B as follows: "and further subject to the City's ordinance on outside employment." BRIAN STUMPF AMENDED HIS MOTION TO INCLUDE THE LANGUAGE RECOMMENDED BY THE CITY ATTORNEY. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Tax Levy: Glen Posusta questioned comments in the Monticello Times attributed to the City Administrator relating to the City's 2007 budget and tax levy. He also questioned conflicting information in the comparison of the budgets of the City of Monticello to that of the City of Buffalo. Jeff O'Neill has asked staff to come up with places where the City could save money. Rick Wolfsteller explained his remarks stating that in the preliminary budget that went to the Council the proposed levy was $7.1 million the Council lowered this amount to $6.5 million but did not specify how this reduction was to be accomplished. Glen Posusta did not feel that the tax levy should be used for items such as financing the biosolids expansion at the wastewater treatment plan. Glen Posusta stated that the comment was made that Monticello's budget was $16 million and Buffalo's was $25 million and added that on a sheet submitted as part of the preliminary budget it showed a budget amount of $37 million. Rick Wolfsteller pointed out that the $37 million figure included depreciation expense in the various funds and also included the cost of the biosolids expansion ($8,490,000). Glen Posusta questioned other figures used in the comparison and stated he felt there was misinformation. Glen Posusta said he hoped Jeff O'Neill would present a budget based on what the City needs not on what the City wants. Rick Wolfsteller indicated that from the budget workshop he thought sewer and water rates would be the primary source to make up the difference. Glen Posusta stated that because $600,000 is cut from the levy does not mean that you have to make that up somewhere else. He felt the City should make cuts in their expenditures. Council Minutes: 9/25/06 13. Approve payment of bills for September. WAYNE MAYER MOVED TO APPROVE PAYMENT OF THE BILLS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 14. Adjourn. The meeting was adjourned at 10:45 p.m. S Recording Secretary