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City Council Agenda Packet 11-13-2006 AGENDA REGULAR MEETING - MONTICLELO CITY COUNCIL Monday, November 13,2006 -7 p.m. SPECIAL MEETING - 5 P.M. - Budget; Possible Liquor Store sites SPECIAL MEETING - 6:45 P.M. - Canvass Election Returns Mayor: Clint Herbst Council Members: Wayne Mayer, Tom Perrault, Glen Posusta and Brian Stumpf 1. Call to Order and Pledge of Allegiance 2A. Approve minutes of October 23, 2006 Special Council Meeting 2B. Approve minutes of October 23,2006 Regular Council Meeting 3. Consideration of adding items to the agenda. 4. Citizen comments, petitions, requests and concerns. 5. Consent Agenda: A. Consideration of ratifying hires and departures City Hall and Parks. B. Consideration of approving Wright County Cooperative Agreement No. 06-55 (turnback ofCSAH 75 east ofCSAH 18.) C. Consideration of resolution for annexation ofCSAH 75 right-of-way. D. Consideration of resolution revoking a portion of County State Aid Highway No. 75 in the City of Monticello. E. REMOVED. F. Consideration of adopting resolution declaring City's intent to reimburse expenditures from the proceeds of bonds. 6. Consideration of items removed from the consent agenda for discussion. 7. Continuation of public hearing and adoption of assessment for improvements installed under the 2006 Core Street Project, City Project No. 2006-0IC. 8. Continuation of public hearing and adoption of assessment for improvements installed under the Chelsea Road Extension Project (90th Street to CSAH 39), City Project No. 2005-11 C. 9. Public Hearing and consideration of adoption of assessment roll for miscellaneous accounts receivable (MARS). 1 Agenda Monticello City Council November 13, 2006 Page Two 10. Consideration of authorizing completion of a financial management plan (FMP) for the City of Monticello to be completed by Ehlers and Associates, Inc. in the amount of$9,750. 11. Consideration of authorizing planning and implementation of Geographic and Property Data based information system. 12. Review area for 2007 Street Reconstruction Feasibility Report and consideration of authorizing feasibility study. 13. Approve payment of bills for November. 14. Adjourn. 2 Council Minutes: 10/23/06 MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday October 23, 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 PIedl!e of Allel!iance. Mayor Herbst called the meeting to order at 7 p.m. and declared a quorum present. The Pledge of Allegiance was said. 2. Approve minutes of the October 9. 2006 rel!uIar Council meetim!. Wayne Mayer suggested clarifying on page 10 of the minutes that the Electro Industries property was not among the properties being considered for a second liquor store site. GLEN POSUST A MOVED TO APPROVE THE MINUTES OF THE OCTOBER 9, 2006 REGULAR COUNCIL MEETING WITH THE CLARIFICATION NOTED. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Consideration of addin2 items to the al!enda. Brian Stumpf added holding a special meeting at 6:45 p.m. on November 13,2006 to canvass the election returns as item #5L on the consent agenda. Discussion of a letter relating to award of the bid for the Front Street/Linn Street Drainage Project was also added to the agenda. 4. Citizen comments. petitions. reauests and concerns. None. 5. Consent Al!enda: A. Consideration of ratifying hires and departures MCC and Parks. Recommendation: Approve the hires and departures as identified. B. Consideration of renewing currency exchange license - Wal-Mart. Recommendation: Approve the renewal ofthe currency exchange license for Wal-Mart located at 9320 Cedar Street. C. Consideration of appointment to fill vacancy on Planning Commission. Recommendation: Approve the appointment of Barry Voight to fill the term of Craig Schibonski expiring December 31, 2008 and Idella Ziegler to fill the term of Sandy Suchy expiring December 31,2007. 1 3 Council Minutes: 10/23/06 D. Consideration of approving credit application with Pitney Bowes and Northern Tool and Equipment/HSBC Business Solutions. Recommendation: Approve the credit applications with Pitney Bowes and Northern Tool and Equipment/HSBC Business Solution. E. Consideration of adopting resolution approving contribution for MCC and Park Department. Recommendation: Adopt the resolution approving the contribution and authorizing use of funds as specified and authorize the Monticello Lions to proceed with the project. Resolution No. 2006-88 and 2006-89. F. Consideration of fire contract renewals with City ofOtsego and Silver Creek Township. Recommendation: Authorize contract renewals with the City of Otsego and Silver Creek Township for fire protection services at a rate of$51/per parcel. G. Consideration of ordinance amendments related to utility billing regulations. Recommendation: Approve the ordinance amendment to Title 7, Chapters 2 and 6 as proposed. H. Consideration of approving Wright County Cooperative Agreement No. 06-55 (turn-back of CSAH 75 east ofCSAH 18). Recommendation: Approve Wright County Cooperative Agreement No. 06-55 contingent on the Wright County Board of Commissioners approving it at their October 24, 2006 meeting. I. ITEM REMOVED J. Consideration of resolution updating Municipal State Aid Street System for the City of Monticello. Recommendation: Approve the proposed resolution to designate Meadow Oak Avenue from CSAH 18 to CSAH 75 as a MSAS addition for the year 2006. Resolution No. 2006-90. K. Consideration of approving a revised final plat for Warnert Retail Development. Recommendation: Approve the revised final plat for the Wamert Retail Development. Resolution No. 2007-91. L. Consideration of holding a special meeting to canvass election results on November 13, 2006 at 6:45 p.m. Recommendation: Set a special meeting to canvass election results for November 13,2006 at 6:45 p.m. BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEMS #5B, #5C, #5D, #5G AND #5H AND THE ADDITION OF #5L. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 6. Consideration of items removed from the consent aszenda for discussion. #58 Renewal of Currency Exchange Licensefor Wal-Mart: This item was removed so that Tom Perrault could abstain from voting on it. 2 4 Council Minutes: 10/23/06 BRIAN STUMPF MOVED TO APPROVE THE RENEWAL OF THE CURRENCY EXCHANGE LICENSE FOR WAL-MART LOCATED AT 9320 CEDAR STREET. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT ABSTAINING. #5C Appointments to Planning Commission: Wayne Mayer stated he would like more input on how the two candidates were decided upon. Clint Herbst stated that the three applicants who interviewed for the position were all good candidates. The Planning Commission after the interview process carne up with the two candidates that were being proposed. Torn Perrault who was also present at the interviews agreed that the candidates considered were all well qualified for the position but he felt that only one of the vacancies should be filled at this time as the original advertisement was for only one position. TOM PERRAULT MOVED TO APPOINT BARRY VOIGHT TO COMPLETE THE TERM OF CRAIG SCHIBONSKI THAT WOULD EXPIRE ON DECEMBER 31, 2008 AND TO ADVERTISE FOR APPLICANTS TO FILL THE OTHER VACANCY. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED WITH BRIAN STUMPF VOTING IN OPPOSITION AS HE FELT SINCE BOTH CANDIDATES WERE WELL QUALIFED BOTH VACANCIES ON THE PLANNING COMMISSION SHOULD BE FILLED AT THIS TIME. #5D Approving Credit Card Applications for Pitney Bowes and Northern Tool and Equipment: Wayne Mayer said he understood why Public Works would want to shop at Northern Tool and Equipment but he felt with the opening of Horne Depot in Monticello, the City should also consider applying for a charge account at Horne Depot. WAYNE MAY MOVED TO APPROVE THE CREDIT APPLICA nONS WITH PITNEY BOWES, NORTHERN TOOL AND EQUIPMENT/HSBC SOLUTIONS AND HOME DEPOT. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. #5G Ordinance Amendment relating to utility billing: Torn Perrault stated the proposed language in the ordinance amendment contained some inconsistencies in Section 7-6-9A and 7-6-98. It was suggested that the either the reference to "30 days after the billing date" be deleted or replaced by the term "due date." TOM PERRAULT MOVED TO APPROVE THE AMENDMENT TO THE ORDINANCE WITH THE CLARIFICATIONS NOTED. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. #5H Wright County Cooperative Agreement No. 06-55 (turnback of CSAH 75 east of CSAH 18): Bruce Westby informed the Council that after the preparation of this agenda item he learned that the portion ofCSAH 75 that the County was proposing to turnback was not in the city limits and therefore the County could not turn it back. Staff will be doing further research into this. Glen Posusta asked about the $24,000 the County owed for work done a few years ago on CSAH 75 and why the City should be picking up that cost with the turnback ofthe road. Bret 3 5 Council Minutes: 10/23106 Weiss said the City would not be absorbing it because if Meadow Oak Avenue is added to the MSA system then CSAH 75 would remain on the MSA system. IfCSAH 75 is removed from the MSA system the $24,000 would be due to the state. He stated a street segment can be added to the MSA system only if it is connected on both ends by another street on the MSA system. Brian Stumpf asked if Meadow Oaks Avenue would have to be added to the MSA system. Bret Weiss stated having it on the system would give the City additional Municipal State Aid funds that could be used for streets. Wayne Mayer questioned provision #3 in the agreement which stated the $24,000 would be reimbursed from the $2,000,000 that the County will be reimbursing the City as part ofthe County's share of the interchange improvement project. Wright County has stated that the agreement for the $2,000,000 contribution includes the maintenance cost of the turnback. City Attorney, Tom Scott said he read the agreement on the interchange project and it did not cover the issue of the turnback. He concluded there is a difference of opinion on the maintenance cost of the turnback being included in the $2,000,000 payment. Bret Weiss indicated that the County is rather adamant that they will not give the City any additional funds. Wayne Mayer asked ifit was to the City's benefit at this time to have CSAH 75 turned back to the City. He asked how much it would cost the City for snow and ice removal for this section ofCSAH 75. John Simola noted the section ofCSAH 75 from the bridge to the freeway is the state's responsibility. If the City does not accept the street until spring, the County would pay for maintenance of the road over the winter. Bret Weiss aid the real reason for turning the road back sooner is that the County will not let the City take down the island that currently blocks the entrance to the O'Ryans site. Bret Weiss said the City could asked the County to allow them to take the median out to comply with the terms of the a!,rreement made with O'Ryans. The initial plan was to remove the island this year in coordination with the construction of the roundabout. The Council felt it needs to be determined if this segment of roadway is in the township and if so what is the possibility of annexing it into the City. Clint Herbst didn't feel that the money issue should be raised stating it was not common that the County would participate in a project like this in the amount of $2,000,000. GLEN POSUST A MOVED TO APPROVE WRIGHT COUNTY COOPERATIVE AGREEMENT NO. 06.55 CONTINGENT ON THE COUNTY BOARD'S APPROVAL ON OCTOBER 24, 2006 AND WITH THE CITY GOING FORWARD WITH THE REMOVAL OF THE MEDIAN. Tom Perrault suggested adding the condition of annexation to the motion. GLEN POSUST A AMENDED HIS MOTION TO INCLUDE PURSUING ANNEXATION OF THE RIGHT-OF-WAY IF IT WAS DETERMINED THE ROADWAY WAS NOT WITHIN THE CITY LIMITS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 4 6 Council Minutes: 10/23/06 7. Public hearin1! and consideration of adoptin2 assessment roll for the 2006-01C Core Street Reconstruction Pro2ram, Proiect No. 2006-01C. Consulting Engineer, Bret Weiss gave a presentation on the proposed assessment for the project noting that this was the fourth year of the street reconstruction program. As part of the 2006 project Sandy Lane was widened to 28 feet and Otter Creek Road and West River Street were widened to 32 feet. Concrete curb and gutter and storm sewer improvements were also included. Also part of the project was the construction of sidewalk along Otter Creek and River Street. Combined with the 2006 Core Street Project was some mill and overlay work done in the area of utility installations by Center Point Energy and improvements to the parking lot at Mississippi Park. Total project costs were $2,187,812 with $223,371.00 of the cost to be assessed. The rates for the project came to $3,000/residential unit for the street reconstruction, $484.39/per unit for the sidewalk improvement and $80/front foot for non-residential property. Bret Weiss noted since the area did not originally have curb and gutter the assessment was based on a higher cost. The increase in the street cost from the 2005 project, which did not include curb and gutter and storm sewer, was only $32/per residential unit more. The sidewalk was assessed at 25% of the cost and was assessed to all properties who had access to the sidewalk not just those properties abutting the sidewalk. The $80/front foot for non-residential covered everything including sidewalk. Bret Weiss noted that the Holthaus property was not charged for sidewalk since they were assessed at the non-residential rate which included the cost of sidewalk. He added that mobile homes park assessment were not on a per unit basis. Clint Herbst suggested putting the sidewalk on a per unit basis for the mobile home park properties. Bret Weiss sated that Riverside Circle and Sandy Lane were assessed for sidewalk even though it did not abut their property because they still had access to it. If the Council decides to spread the sidewalk assessment over more units, the property owners would have to be re-notified of the adjusted amount. Clint Herbst felt this was a dangerous area for pedestrians and that having the sidewalk installed here was important. Glen Posusta agreed that everyone who benefits, not just the abutting property owners, should pay for the cost of sidewalk. Bret Weiss said as far as the street assessment he didn't think there should be a change for the mobile home parks since they maintain the private streets within the park, but they could be included in the sidewalk assessment since they do derive benefit from the sidewalk. He also noted that Oakview Circle was not assessed sidewalk because they did not have access to it. He added that properties on the east side of Otter Creek were assessed under last year's project which did not include sidewalk and would not be assessed under the 2006 project. Bret Weiss addressed some other items raised. 1) Bridge Improvement - The retaining wall was put in place in order to allow the sidewalk to go in. This cost was part of the street reconstruction cost. 2) Riverside Cemetery - Since the City is already picking up $1.1 million in costs there was no assessment against the cemetery. Bret Weiss addressed the concern of Tom Holthaus regarding the assessment of his property. The property originally received an assessment of $8,167.00 in an earlier project for its frontage along CSAH 75. This amount was reduced to $4,083.50 with the understanding the property owner would be responsible for the assessment for Otter Creek Road when it was 5 7 Council Minutes: 10/23/06 reconstructed. Tom Holthaus felt the assessment should be on the residential rate. Bret Weiss said since all new lots are assessed at the residential rate the assessment for the Holthaus property would be $15,000 (5 lots x $3,000). The Ritze property was assessed based on a portion of the property being commercial and a portion being residential. Brian Stumpf stated his concern that this parcel was paying 10% of the total project cost. He noted that since the non-residential portion of the property was being assessed at $80/front foot which included sidewalk, there should not be a separate sidewalk assessment on the parcel. Bret Weiss said the City cannot continue to go forward with the reconstruction program because they are not assessing enough of the cost. He stated the Ritze property was assessed according to the direction of the Council that the assessment be split based on its residential and non-residential use. The property is zoned residential but because there was a commercial use on the site the assessment was based on use not zoning. He conceded that other options could be looked at in assessing this property. Bret Weiss added that they have met with Mary Ritze and discussed some different options. One option was to base the assessment on the residential units that could be developed. Brian Stumpf felt that as a Council they should look carefully at the assessment in this area because they are dealing with so many people on fixed incomes. Wayne Mayer asked about going back to the trailer parks and assessing them for sidewalk. Bret Weiss said by increasing the number of units being assessed it would decrease the amount of the sidewalk assessment but he cautioned that he didn't know how much more they could assess to the mobile home lots even though they derive benefit from the sidewalk. Mayor Herbst opened the public hearing. Jim Kramer, representing Mary Ritze of 1405 River Street West, stated that many of the concerns they had about the assessment had been raised in earlier Council discussion. He noted Mary Ritze has a home on five acres and a couple of sheds. The property's use as commercial property is very limited and it is quite probable that the existing commercial use will cease. He suggested assessing the property based on its potential for residential development. He felt that if the property was developed there could be five lots created and therefore the property be assessed based on the five lots. Clint Herbst asked the City Attorney ifthere was some way to ensure that ifthe property developed at more than five units, that the additional units would pay the prevailing street reconstruction rate at the time of development. Tom Scott said you could make the initial assessment based on five lots and prepare another agreement laying out the assessments for anything in excess of five lots. Brian Stumpf asked if the proposed five lots would all be assessed for sidewalk. Jim Kramer suggested one sidewalk assessment for the existing house and the remaining sidewalk assessments be covered in an assessment agreement. In reviewing the assessment for 155-012-002010 it was noted that the parcel had one sidewalk assessment but received two street assessments. Paul Fuss who owns 1228 and 1232 Sandy Lane stated his property has only one driveway access but the structure is a duplex. Bret Weiss stated in that case since it was two residential units, there should have been two sidewalk assessments. Paul Fuss stated the notice he received contained no breakdown on what he was being charged for. 6 8 Council Minutes: 10/23/06 Bret Weiss said policy is if you develop a new lot you pay the full front foot cost for developing for new parcels. Glen Posusta felt if the city does this on the Ritze property they should also do it on the Holthaus property. Bret Weiss noted that Tom Holthaus has not signed the development agreement which states the cost would be on a front foot basis. Clint Herbst stated that ultimately the City would be looking at reviewing the sidewalk assessment. Glen Posusta added that the City is assessing only a small portion of what other communities assess for street reconstruction and this is a small portion of the project costs. In other communities reconstruction costs are assessed at $5,500-$7,500 per unit. Bret Weiss felt it was important for the City to continue the street reconstruction program. Glen Posusta noted that this reconstruction project did not seem to go as smoothly as previous projects. Bret Weiss noted there a number of circumstances that factor into that, such as soil conditions, weather conditions especially rainfall amounts and experience of the contracting crews. Wayne Mayer stated that in this project the initial assessment proposed was in excess of$5,000 and that the Council turned to use of other sources of funding to reduce the assessment cost. Greg Roden, 1222 River Street West, stated that at the first public hearing the sidewalk cost was estimated at $200 per unit and now it is at $484.39. He questioned why there was such an increase in the sidewalk cost. Bret Weiss indicated that construction costs had gone up substantially. Greg Roden pointed out that the street reconstruction cost had stayed the same as the original estimate. Bret Weiss pointed out the street reconstruction assessment was based on a fixed rate as established by Council while the sidewalk assessment was based on actual cost. Earl Swan, 1224 Sandy Lane had a number of questions about the sidewalk including how it was determined who would be assessed for it and who would be responsible for maintaining it. He also questioned the need for storm sewer in their area. Bret Weiss responded that when you put in curb and gutter you need to have storm sewer. He added that the issue with the sidewalk assessment is where the break point for benefit should be established. Bret Weiss said the sidewalk was not addressed in the overall street reconstruction program but is addressed on a case by case basis. This was an area where the Council felt sidewalk was necessary. Ed Solberg, 1204 Sandy Lane questioned the increase in cost over previous years project costs. Bret Weiss provided information on the assessment rate for each year the reconstruction program was in existence. Mayor Herbst closed the public hearing. Mayor Herbst stated that the assessment for street reconstruction was a good deal for the residents and the questions raised seemed to b primarily about the assessment for sidewalk. With the proposed change in the number of units to be assessed for sidewalk to include the units in the trailer park, it would require another hearing. Tom Scott stated the Council could establish a different rate for the trailer units and added that any changes that created an assessment more than the current proposal would require the hearing to be re-noticed. Clint Herbst felt that it would be best to re-notify everyone in the project area. 7 9 Council Minutes: 10/23/06 Brian Stumpf asked Bret Weiss ifhe was in contact with Tom Holthaus regarding the proposed assessment for his property. Bret Weiss stated they were not in agreement on the amount of the assessment. There is approximately $1,800 difference between what is proposed and what Mr. Holthaus felt he should be assessed. Wayne Mayer felt the same formula used for the Ritze property should be applied to the Holthaus property. The formula proposed for the Ritze property is based on street and sidewalk assessments for five units with an agreement that anything over five units would be assessed at the prevailing rate at the time of development. There was a question on the sidewalk for the Holthaus property. Jeff O'Neill indicated the developer in the development agreement which has not been signed, is required to install sidewalk along CSAH 75. The Council felt if the developer was building a sidewalk under the terms of the PUD, the Council should not be assessing any further sidewalk charges against the five lots. City Attorney, Tom Scott recommended a motion to continue the public hearing adding that whatever dollar amount the City puts forth in the notice to the property owner is the cap for the assessment. There was some discussion on the frontage used in estimating the number of lots that could be developed. BRIAN STUMPF MOVED TO CONTINUE THE PUBLIC HEARING UNTIL NOVEMBER 13, 2006 AND DIRECT STAFF TO RE-NOTICE THE AFFECTED PROPERTY OWNERS. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 8. Public hearinu; and consideration of adoptine assessment roll for the extension of School Boulevard from Deeean Avenue to Redford Lane. Proiect No. 200S-02e. Shibani Bisson provided the background information on this project pointing out that the project allowed for development of the Jefferson Commons property, Ocello property and Prairie Ponds development. School Boulevard was constructed to a 44' width with a trail on the north side. The total project cost was $1,393,197. The project was funded by $699,835 in special assessments and the use of trunk and general funds. Shibani Bisson noted that some of the assessments were covered by assessment agreements with the property owners. Mayor Herbst opened the public hearing. There was no one present who spoke for or against the proposed assessment. Wayne Mayer asked about the reduction of the assessment on the Taco Johns property. Shibani Bisson explained it was because there was a reduction in the cost of putting the trail in behind Taco Johns. BRIAN STUMPF MOVED TO ADOPT THE ASSESSMENT ROLL FOR THE EXTENSION OF SCHOOL BOULEVARD FROM DEEGAN A VENUE TO REDFORD LANE. TOM PERRAULT SECONDED THE MOTION. 8 10 Council Minutes: 10/23/06 16. Consideration of sale of City owned lot on River Street and review of home proposed to be located on the lot. This item was moved up on the agenda at the request of Council. The Council was being asked to consider the sale of a city owned lot on River Street to Joseph and Rita DeAntoni. The DeAntoni's are proposing to move a house onto the lot if they can acquire the property from the City. City Administrator, Jeff O'Neill explained that the house that was being proposed to be moved in is 1200 square feet and meets the standards for an R-2 District but not an R-l District. Wayne Mayer said he would like to see new construction on the lot rather than have a home moved in especially if the home being moved in is 20 years old. The DeAntoni's responded the house was similar in age to other homes along River Street. They would update the siding and make other changes as recommended by the Council including increasing the size to 1400 square feet. The DeAntoni's questioned whether a new home would fix the complexion of the area. They noted all improvements to the home would be done by late spring. Glen Posusta said he had some concern about the reaction of other residents in the area. Wayne Mayer felt the Council had to decide whether they wanted new construction on vacant city land or allow a home to be moved in. Wayne Mayer asked the procedure for moving a building in. Gary Anderson, Chief Building Official, said they would go visit site before the house was moved and let the owner know what items had to be corrected. Glen Posusta said he was not ready to vote on this because he wanted to know how the neighbors would react to it. WAYNE MAYER MOVED TO DENY AUTHORIZATION TO SELL THE RIVER STREET RESIDENTIAL PARCEL TO JOSEPH AND RITA DEANTONI BASED ON THE FINDING THAT THE PROPOSED HOME DOES NOT MEET STANDARDS AND TO ALLOW FOR NEW CONSTRUCTION ONLY ON THE CITY OWNED SITE. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION AS HE WOULD HAVE LIKE TO HAVE HAD THE CHIEF BUILDING OFFICIAL'S OPINION OF THE HOME. 9. Public hearim! and consideration of adoptin2 assessment roll for the extension of 7th Street from St. Henry's to CSAH 18 and the construction of Hi2hland Way from 7th Street to CSAH 75. Proiect No. 2004-02C. The extension ofih Street and Highland Way was done to accommodate the development of the Union Crossings commercial development. The total project cost came to $2,134,913. The Ryan Companies and St. Henry's are the primary properties affected by this project. Glen Posusta asked why 8t. Henry's was being assessed when it was the City that instituted the change. WSB responded the storm water pond could have stayed in its present location but 8t. Hemy's wanted to move it in order to create a lot. Another portion ofthis project is the assessment for the signal light at C8AH 75 and Highland Way. 25% of the signal cost was assessed with the cost spread out based on estimated trip generation. The proposed assessment for the signal includes the Jens Rivervue Apartments and apartments located in the Macarlund Plaza plat. 9 11 Council Minutes: 10/23/06 Mayor Herbst opened the public hearing. No one was present who spoke for or against the proposed assessment. Mayor Herbst then closed the public hearing. Glen Posusta questioned why the City didn't have street light in the area and felt the developer should be paying for them. Bret Weiss stated typically the City has not included street lighting in their projects because the developer puts them in. Bret Weiss said the City is not paying any cost of the street lights in this area as there are funds available for the improvement. He stated street lighting costs would be included in the overall project costs in the future which had not been the case in the past. Bret Weiss stated the City did get a letter from the developer stating that they felt St. Henry's should pick up half of the cost. BRIAN STUMPF MOVED TO ADOPT THE ASSESSMENT ROLL FOR THE EXTENSION OF 7TH STREET FROM ST. HENRY'S CHURCH TO CSAH 18 AND THE CONSTRUCTION OF HIGHLAND WAY FROM 7TH STREET TO CSAH 75. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION AS HE DID NOT BELIEVE THE APARTMENTS SHOULD BE INCLUDED IN THE SIGNAL ASSESSMENT. 10. Public hearine: and consideration of adoptine: assessment roll for the CSAH 18/1-94 interchane:e and related improvements. Proiect No. 2004-01C. Bret Weiss reviewed the proposed assessment for this project. Most of the assessments are covered by assessment agreements with the property owners which includes deferment of the assessments until 111/2011. He noted that the Monticello Industrial Park provided a significant amount of right-of-way for this project. Mayor Herbst opened the public hearing. There was no one present who spoke for or against the proposed assessment. Mayor Herbst then closed the public hearing. GLEN POSUSTA MOVED TO ADOPT THE ASSESSMENT ROLL FOR THE CSAH 18/1- 94 INTERCHANGE AND RELATED IMPROVEMENTS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 11. Public hearine: and consideration of adoptine: assessment roll for extension of Meadow Oak Avenue from the current termini to CSAH 18. Proiect No. 200S-0Sc. The extension of Meadow Oak Avenue was done to allow for a detour route during the construction ofthe interchange. The total project cost was $742,885. Monticello Industrial Park is proposed to be assessed a total of $408,994.00 and Resurrection Lutheran Church a total of $58,085.80. There are assessment agreements covering both properties. Shibani Bisson noted that Resurrection Lutheran Church was not assessed a street assessment because they provided the City with right-of-way for Meadow Oak Avenue. John Simola asked ifthe street light construction along Meadow Oak was included in this project. Shibani Bisson indicated it was as was the restoration costs. Mayor Herbst opened the public hearing. There was no one present who spoke for or against the proposed assessment. Mayor Herbst closed the public hearing. 10 12 Council Minutes: 10/23/06 WAYNE MAYER MOVED TO ADOPT THE ASSESSMENT ROLL FOR THE EXTENSION OF MEADOW OAK AVENUE, CITY PROJECT NO. 2005-05C. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 12. Public hearin2: and consideration of adoptin2: assessment roll for the Chelsea Road extension from 90th Street to CSAH 39 and School Boulevard (Chelsea Road to 1330 feet south). City Proiect No. 2005-11C. John Chadwick had submitted a request to the Council to table adoption of this assessment until they could further study the assessment amounts. Mayor Herbst opened the public hearing. There was no one present to speak for or against the proposed assessment. Mayor Herbst closed the public hearing. TOM PERRAULT MOVED TO CONTINUE THE PUBLIC HEARING ON THE PROPSOED ASSESSMENT FOR THE CHELSEA ROAD EXTENSION TO NOVEMBER 13, 2006. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 13. Public hearin2: and consideration of adoption of assessment roll for delinQuent utilities. Mayor Herbst opened the public hearing on the assessment for delinquent utilities. There was no one present who spoke for or against the proposed assessment. Mayor Herbst then closed the public hearing. WAYNE MAYER MOVED TO ADOPT THE ASSESSMETNT ROLL FOR DELINQUENT UTILITY CHARGES. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 14. REMOVED. 15. Consideration of authorizin2: 7th Street and Hi2:hland Way Street Li2:htin2:. John Simola provided background information on the project explaining that funds are available that could be used for the street lighting work. He was asking the Council to reconsider the tabling of the project and authorize moving forward with the work. Even if the project is started now the lights would not be ready until February. Brian Stumpf noted the contribution of the developer for the street lights. BRIAN STUMPF MOVED TO AUTHORIZE PREP ARA TION OF REQUESTS FOR PROPOSALS FOR STREET LIGHTING ON EAST 7TH STREET AND HIGHLAND WAY WITHIN THE RYAN DEVELOPMENT WITH THE PROPOSALS TO COME BEFORE THE COUNCIL FOR CONSIDERA nON IN NOVEMBER. Glen Posusta questioned doing this in the winter. Wayne Mayer said he understood the eagerness to get the project going but he would like to see how the franchise fee would impact this. 11 13 Council Minutes: 10/23/06 Director of Finance, Rick Wolfsteller indicated that the terms of the franchise fee have not been negotiated but he understood that if the City through the franchise acquires $1,000,000 in reserves then the franchise fee would be eliminated. Clint Herbst felt there was no reason to put the project off since the funds were available. Glen Posusta felt with the lights installed at the Target and Home Depot sites, there should be adequate lighting for the time being so there was no need to rush into the project. Wayne Mayer asked ifthere were any time constraints on the use of the $30,000 for the lighting. Staff indicated they were not aware of any time frame on the use of the funds. The three existing lights that were installed by the developer are not being used because they would have to be re-wired. Wayne Mayer asked how the number of lights to go in was determined. John Simola stated he had no indication of how it was determined. Bret Weiss said according to the Ryan Companies the lighting plan was approved by the previous Building Official. Rick Wolfsteller asked if the City had received the $30,000 or does the City get the funds once the street lighting is completed. It was felt that ifthe lights were not installed within a year there is a possibility the funds would not be available. MOTION CARRIED WITH WAYNE MAYER AND GLEN POSUSTA VOTING IN OPPOSITION. 16. Consideration of sale of City owned lot on River Street and review of home proposed to be located on the lot. Moved up in the agenda. 17. Consideration of establishine procedures for sale and marketine: of Citv-owned Jefferson Commons commercial property The Council reviewed a proposal for hand car wash in the city-owned Jefferson Commons development. Brian Stumpf did not feel this proposal was suited for this area and he would like to see any proposals come before the Council before a purchase offer is made. Clint Herbst felt with the bowling alley going in it would spark interest for other development in this area. He felt the Council should look at what they want to go in the area which he felt should be entertainment uses. Brian Stumpf also added the land should not be sold on speculation. Wayne Mayer asked if Council should be instructing staff to look at developments covering 4-7 acres site rather than smaller developments. The Council indicated they did want to review all proposals. Added Items: Linn Street/Front Street Contract: The Council brought up the letter received from the second low bidder on the project who had questioned why all bidders were not required to submit a security. Bruce Westby explained that in preparing the specifications he had included a requirement for a bid bond even though the project was less than $50,000. Torn Scott, City Attorney, said it was within the the City's right to waive this requirement. 12 14 Council Minutes: 10/23106 Ordinance Amendment for utility billing: Staff asked for clarification on the action on the ordinance amendment for utility billing. As part of the agenda item the Finance Department was also asking for direction in establishing a billing procedure for multiple dwelling units where there was only one sewer and water service. Since the ordinance establishes that each unit that can legally transferred as a separate unit should have its own individual sewer and water connection, Council questioned how this situation could exist as it was a violation of the ordinance. The Council indicated that they supported Option I as recommended by the Finance Department. 18. Approve payment of bills for October. BRIAN STUMPF MOVED TO APPROVE PAYMENT OF THE BILLS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 19. Adiourn. TOM PERRAULT MOVED TO ADJOURN AT 10: 15 P .M. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary 15 13 Joint Meeting YMCA Acquisition Wright County Board of Commissioners & Monticello City Council Attendance: Richard Norman Jack Russek Elmer Eichelberg Glen Posusta Clint Herbst Brian Stumpf Karla Heeter Pat Sawatzke Brian Asleson Tom Perrault Stacie Kvilvang Mark Ruff Rick Wolfsteller Tom Scott Steve Grittman Bret Weiss Wayne Mayer Marc Mattice Dick Mattson Paul Bakken Matthew Schroeder Jeff O'Neill Minutes 10-23-2006 Monticello City Hall County Coordinator County Commissioner County Commissioner Council Member Mayor Council Member Board Chair County Commissioner County Attorney's Office Council Member Ehlers and Associates Ehlers and Associates Finance Director City Attorney City Planner, NAC WSB and Associates Council Member Parks Administrator County Commissioner Appraiser Appraiser City Administrator Wright County Wright County Wright County City of Monticello City of Monticello City of Monticello Wright County Wright County Wright County City of Monticello City of Monticello City of Monticello City of Monticello City of Monticello City of Monticello City of Monticello City of Monticello Wright County Wright County The Valuation Group The Valuation Group City of Monticello Wright County Board of Commissioners and the City Council of Monticello hosted a joint meeting on Monday, October 23,2006. The meeting was called into session at 5:10 p.m. in the City Council chambers at Monticello City Hall. Mattice and O'Neill welcomed those in attendance and reviewed the format of the meeting. The meeting was called into a closed session, which lasted from 5:20 p.m. to 6:25 p.m. After the closed session ended, those present reviewed a draft Memorandum of Understanding that had been developed by staff. Asleson reviewed the draft Memorandum of Understanding and stated that this document can be amended, and once approved, would be an official document that can be used for making a purchase offer. The Memorandum of Understanding would not be used as a Joint Powers Agreement. A brief discussion took place. Staff will consider input from this meeting to establish a revised Memorandum of Understanding, which will then be presented to the Wright County Board of Commissioners as well as to the City Council of Monticello. No action was taken at this time to authorize signatures on the draft. On a motion by Perrault and a second by Sawatzke the joint meeting was adjourned at 6:52 p.m. 16 Council Agenda: 11/13/06 SA. Consideration of approvine: new hires and departures for City Hall and Parks (R W) A. REFERENCE AND BACKGROUND: The Council is asked to ratify the hiring and departures of employees that have occurred recently at the City Hall and Parks. It is recommended that the Council officially ratify the hiring/departure of all new employees including part-time and seasonal workers. B. AL TERNA TIVE ACTIONS: 1. Ratify the hiring/departures of the employees as identified on the attached list. C. SUPPORTING DATA: List of new employees. 17 NEW EMPLOYEES Name Title Department Hire Date Class TERMINATING EMPLOYEES Name Reason Department Last Day Class Grossnickle, Amy voluntary City Hall 10/13/2006 PT West, Donovan end of season Parks 10/24/2006 Seasonal Barthel, Gerald end of season Parks 10/24/2006 Seasonal Schoenborn, Herb end of season Parks 10/20/2006 Seasonal employee councillist.xls: 11/2/2006 18 Council Agenda: 11/13/06 SB. A. REFERENCE AND BACKGROUND: Following the substantial completion of the new County State Aid Highway No. 18 (CSAH 18) and Interstate Highway No. 94 (1-94) Interchange, Wright County wishes to turn-back County State Aid Highway No. 75 (CSAH 75) east ofCSAH 18 as identified in the attached turn-back agreement. The attached turn-back agreement was prepared by Wright County and approved by the Wright County Board of Commissioners on Tuesday, November 7,2006. This agreement has been reviewed by City staff, as well as the City attorney. The only issue that surfaced was in regards to whether the City should accept the road as is, or request additional funds for maintenance purposes based on the existing condition of the road. City staff subsequently contacted the County and were informed that the County will not provide any additional funds for maintenance purposes. In regards to the agreement that the City has with Q'Ryans to remove the easterly end of the raised median on CSAH 75 to allow direct access for EB CSAH 75 traffic to Q'Ryans, the County Board approved this work contingent on the City Council approving the turn-back agreement and the City providing the County with a letter holding them harmless from any issues arising from this work. Therefore, once the Council approves the attached agreement, staffwill submit a hold-harmless letter to the County and begin work on the raised median. B. ALTERNATIVE ACTIONS: 1. Motion to approve Wright County Cooperative Agreement No. 06-55. 2. Motion to deny approval of Wright County Cooperative Agreement No. 06-55. C. ST AFF RECOMMENDATION: It is the recommendation of the City Administrator and the City Engineer that the City Council approve Alternative Action #1. D. SUPPORTING DATA: Wright County Cooperative Agreement No. 06-55. 19 COOPERATIVE AGREEMENT No. 06-55 THIS AGREEMENT, made and entered into by and between the County of Wright, Minnesota, acting by and through its County Board of Commissioners, hereinafter referred to as the "County" and the City of Monticello, Minnesota, acting by and through their City Council, hereinafter refelTed to as the "City." WITNESSETH: WHEREAS, that portion of County State Aid Highway (CSAR) 75, within the limits of the City of Monticello and described as follows: CSAH 75 (Broadway Street East) from the intersection with CSAH 18 to the south and CSAH 39 to the north to Interstate 94,having a basic right of way width of 150 feet, for a distance of 1.17 miles. This project will remove the present CSAH 75 east termini from a state highway cOlmection, and therefore tIus segment would no longer meet the CSAH criteria. WHEREAS, this cooperative agreement between the County and the City outlines the conditions, responsibilities and financial obligations in making this jurisdictional change for this segment of County State Aid Highway 75. NOW, THEREFORE, IT IS MUTUALLY AGREED AND UNDERSTOOD THAT: 1. The County and City, hereby agree to revoke the County State Aid Highway status ofCSAH 75 as described herein and further revoke it to the jurisdiction of the City of Monticello. The City will be responsible for the State Aid Funding payback that would be due, since State Aid funds were used to place a bituminous overlay on this segment ofCSAH 75 in 2003. 2. All maintenance responsibilities, on the segment ofCSAH 75 described herein, shall become the responsibility of the City, including snow and ice control & signing, effective the date of this agreement being fully executed. The County will reimburse the City the equivalent cost of one (1) year of maintenance on the tumback segment. 3. The County will reimburse the City of Monticello for the construction cost of two-inch bituminous wear course (2005 dollars) for the segment ofCSAH 75 described in this jurisdictional change. Based on the length of the segment that was not overlayed in 2003 (500 feet) and the agreed on equivalent cost of a reclamation/two-inch overlay ($85,000/mile). However. the reimbursement amount described above will come out ofthe $2,000.000 that the County will reimburse to the City as part of the County's contribution towards this proiect since tius iurisdictional change was prompted bv the above-mentioned proiect. 4. The City shall indemnify, save and hold harmless the County and all of its agents and employees of any form against any and all claims, demands, actions or causes of action of whatever nature or character arising out of or by reason of the execution or performance of the work provided for herein to be perfom1ed by the City. 20 The County shall inderrmify, save and hold harmless the City and all of their agents and employees of any form against any and all claims, demands, actions or causes of action of whatever nature or character arising out of or by reason of the execution or performance of the work provided for herein to be performed by the County. 5. It is further agreed that any and all full-time employees of the City and all other employees of the City engaged in the performance of any work or services required or provided for herein to be perfonned by the City shall be considered employees of the City only and not ofthe County. It is further agreed that any and all claims that mayor might arise under Workman's Compensation Act of the State of Minnesota on behalf of said employees while so engaged and any and all claims made by any third parties as a consequence of any act or omission on the patt of said City employees while so engaged in any ofthe work or services provided to be rendered herein shall be the sole obligation and responsibility oftbe City. Any and all full-time employees of the County and all other employees ofthe County engaged in the performance of any work or services required or provided for herein to be performed by the County shall be considered employees ofthe County only and not of the City. It is further agreed that any and all claims that mayor might arise under Workmen's Compensation Act of the State of Minnesota on behalf of said employees while so engaged and any and all claims made by any third parties as a consequence of any act or omission on the part of said County employees while so engaged in any of the work or services provided to be rendered herein shall be the sole obligation and responsibility ofthe County. Before this agreement shall become binding and effective, it shall be approved by the City Council of Monticello and it shall also be approved by the Wright County Board of Commissioners and such other officers as law may provide. IN TESTIMONY WHEREOF the parties have duly executed tlus agreement by their duly authorized officers and caused their respective seals to be hereunto fixed. COUNTY OF WRIGHT CITY OF MONTICELLO Reconunended for Approval: Recommended for Approval: City Attorney, City ofMontlcello Wnght County Engineer APPROVED: APPROVED: Chairperson, Wright County Board Mayor, City ot Monticello Wright County Coordmator Clerk, City of Monticello Wnght County Attorney Date Date F:\dutu\HWY\AGREEMNTlMonti 75 tum.doc 2 21 Council Agenda: 11/13106 sc. Consideration of adoptin2 a resolution for annexation of CSAH 75 Ri2ht-of- Way and authorizin2 annexation under the terms of the City/Township ioint ae:reement 2overnin2 annexation. (BW) A. REFERENCE AND BACKGROUND: With the proposal by Wright County to turn-back the portion ofCSAH 75 east ofCSAH 18/CSAH 39, it was discovered that the roadway did not lie within the City limits. On November 1, 2006 City Engineer, Bruce Westby met with the Monticello Township Board to request their approval to the annexation of the CSAH 75 right-of-way as described in the attached document. The City requested Township approval not only for the portion of right- of-way the County is proposing to turn-back to the City at this time, but also for the right-of- way for the 1-94 access ramps that MnlDOT will be turning back at some future date and the right-of-way along the Burlington Northern Railroad corridor as identified in Exhibit A. The Township Board signed a document approving the City's annexation requests. This annexation request is being processed in accordance with the provisions of the approved annexation agreement between the City of Monticello and Monticello Township which allows under Section 2g, annexation of property by mutual agreement of the City and Township. The property lies within the annexation area agreed to by the City and Township. A resolution has been prepared for Council approval and a letter has been sent to the Township noting that the City is processing this annexation request according to the terms of the annexation agreement. B. ALTERNATIVE ACTIONS: 1. Motion to approve the resolution annexing a portion ofCSAH 75 as identified in the attached documents. This request meets the criteria set forth in the annexation agreement between the City and the Township. Upon approval of the annexation request, the resolution will be forwarded to the state who may review and comment on the annexation request but is required to order the annexation within 30 days of the receipt ofthe resolution. 2. Motion to deny approval of the resolution annexing a portion ofCSAH 75. C. ST AFF RECOMMENDATION: It is the recommendation of the City Administrator that the romexation petition covering the right-of-way for CSAH 75 be approved and the resolution forwarded to the state. The annexation ofthe property will allow for the turn-back ofthe right-of-way to the City which is necessary in order that the City can comply with conditions of their agreement with MMC Land Company. D. SUPPORTING DATA: Annexation approval document signed by Monticello Township. Exhibit A - Annexation Exhibit. Exhibit B - Legal Description for Proposed Annexation. 22 EXHIBIT B LEGAL DESCRIPTION FOR PROPOSED ANNEXATION November 13, 2006 The Subject Area of Monticello Township, Wright County, Minnesota, proposed for annexation to the City of Monticello, Wright County, Minnesota, (referenced in attached City of Monticello Resolution No. 2006~104, is legally described as follows: Lands in Township 121, Range 24 and Range 25, Wright County, Minnesota: That part of the C.S.A.H. No. 75 right of way, having a basic width of 150.00 feet, extending from the southeasterly right~of-way line ofC.S.A.H. No. 18, to the southeasterly right-of-way line of Meadow Oak Avenue. (Approximately 2800 feet) 23 Council Agenda: 11/13/06 5D. Consideration of resolution revokine: a portion of County State Aid Hie:hwav No. 75 in the City of Monticello. (BW) A. REFERENCE AND BACKGROUND: Wright County has requested that following the City Council's approval of Wright County Cooperative Agreement No. 06-55 providing for the turn-back of County State Aid Highway No. 75 (CSAH 75) east ofCSAH 18/CSAH 39, a resolution be adopted by the City approving the revocation of this portion ofCSAH 75 from the County to the City. B. ALTERNATIVE ACTIONS: 1. Motion to approve Resolution No. 2006-105 revoking a portion of CSAH 75 to the City of Monticello. 2. Motion to deny approval of Resolution No. 2006-105. C. ST AFF RECOMMENDATION: It is the recommendation of the City Administrator and the City Engineer that the City Council approve Alternative Action #1. D. SUPPORTING DATA: Resolution No. 2006-106. 25 CITY OF MONTICELLO RESOLUTION NO. 2006-105 RESOLUTION REVOKING A PORTION OF COUNTY STATE AID HIGHWAY NO.75 TO THE CITY OF MONTICELLO WHEREAS, the new interchange a the intersection of Interstate 94 and County State Aid Highway (CSAH) No. 18 in the City of Monticello has been essentially completed; and WHEREAS, the new interchange traffic pattern will eliminate the need for eastbound entry onto Interstate 94 from CSAH No. 75, thereby changing its function to a local street and; WHEREAS, the City of Monticello and the County of Wright have agreed through Cooperative Agreement No. 06-55 that the jurisdiction ofCSAH No. 75 lying east of the intersection with CSAH 18 shall be revoked to the City of Monticello. NOW, THEREFORE, BE IT RESOLVED that the County Board of the County of Wright that the portion of County State Aid Highway No. 75 in the City of Monticello, described as follows, to wit: CSAH 75 (Broadway Street East) from the intersection with CSAH 18 to the south and CSAH 39 to the north to Interstate 94, having a basic right of way width of 150 feet, for a distance of 1.17 miles. Be and is hereby revoked as a County State Aid Highway of said County of Wright in accordance with State Statute 162.20, Subd. 10, and is hereby revoked to the jurisdiction of the City of Monticello, subject to the approval of the Commission of Transportation of the State of Minnesota BE IT FURTHER RESOL VED, that the County Coordinator is hereby authorized and directed to forward two (2) certified copies of this resolution to the Commissioner of Transportation for his/her consideration. BE IT FURTHER RESOLVED, that the City of Monticello, Wright County, Minnesota hereby approves the revocation of County State Aid Highway 75 from Wright County to the City of Monticello. Adopted by the Monticello City Council this 13th day of November, 2006. Clint Herbst, Mayor ATTEST: Jeff O'Neill, City Administrator 26 Council Agenda: 11/13/06 SF. Consideration of Resolution Declarin2 intent to Reimburse Proiect Costs throu2h Bond Sale Proceeds. (R.W.) A. REFERENCE AND BACKGROUND IRS regulations now require that before a city can issue bonds to reimburse itself for expenses it has already paid through a bond sale, a resolution needs to be passed indicating which projects the city will likely sell bonds for in the future. This resolution is simply a technical requirement required by the bond counsel. The resolution being proposed covers various improvement projects that are currently underway or will be started in the near future. This resolution will allow the City to finance any of these improvements in the future by selling bonds. Adoption of the resolution is not authorizing a bond sale at this time. B. ALTERNATIVE ACTION 1. Adopt a resolution declaring intent to reimburse expenditures to the proceeds of bond covering the various projects outlined. 2. Do not authorize the resolution. C. STAFF RECOMMENDATION It is the recommendation of the City Administrator that the resolution be adopted as proposed, thus enabling the City to sell bonds to finance the various improvement projects listed, if desired, in the future. D. SUPPORTING DATA Copy of resolution. 27 RESOLUTION 2006-100 RESOLUTION DECLARING THE OFFICIAL INTENT OF THE CITY OF MONTICELLO TO REIMBURSE CERT AIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY WHEREAS, the Internal Revenue Service has issued Treas. Reg. S 1.150-2 providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met; and WHEREAS, the City expects to incur certain expenditures which may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a bond; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MONTICELLO (THE "CITY'') AS FOLLOWS: 1. The City reasonably intends to make expenditures for the projects described in Exhibit A (the "Projects"), and reasonably intends to reimburse itself for such expenditures from the proceeds of debt to be issued by the City in the maximum principal amount described in Exhibit A. 2. 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Ehlers will review financial policies ofthe City and make recommendations on additional or replacement policies. At the third workshop, Ehlers will provide the City with a ten-year capital improvement and operating projections. Options for higher growth and lower growth projections are also included. Ehlers then details the strategy in a final report to be considered by the City Council. The report will also contain recommended action and policies that the city should undertake to enact the plan and to work toward a strong financial foundation to support the community. Completion Date: References: Mark Ruff and Stacie Kvilvang with Todd Hagen and Elizabeth Diaz (Ehlers employee and former finance director, City of Cottage Grove) Projections oftax rates, fund balances, and expected capital and operating costs based upon the city's capital improvement plan, methods of finance, and growth. Higher management scores for Moody's rating of management for the City's bond rating (see attached S&P document). $9,750 Additional services that the city identifies through this process may be completed at $175 per hour. Such services could include the work to refine the city's capital improvement plan, drafting of financial policies such as an expended fund balance policy, a debt policy, and/or an investment policy. On or about February 1, 2007 Bret Heitkamp, City of Champlin Dawn Meyer, City of Belle Plaine Staff: Outcomes: Fee: Ehlers' Scope of Services for the City of Monticello - November, 2006 Page 46 Council Agenda: 11/13/06 11. Consideration of Authorizin2 Plannin2 and Implementation of Geo2raphic and Property Data Based Information System (JO) A. REFERENCE AND BACKGROUND: The City Council is asked to consider investing in enhancements to information systems utilizing Geographic and Parcel Based data. Development of an information system allowing efficient and accurate assembly and retrieval of geographic and parcel information is the foundation of a well operating City organization and is key to facilitating staff succession. This is an item identified by the Community Development Department that Rick has listed in the 2007 budget. The project contemplates using existing hardware with any new equipment funded via budgeted funds used for regular upgrades. Following are a few key benefits of development of a GIS system. Improved efficiency . Better use of data that is already collected but is not readily available for use. . Better utilization of parcel data already collected and regularly updated by the by the County. . Improved speed of information retrieval. . Reduction in amount of redundant data entry along with improvements in accuracy. . Excellent data system allows staff to operate efficiently. Improved Effectiveness . Reduced reliance on memory of long standing employees. . Improved ability to display information using understandable formats thus enhancing decision making process. . Improved timeliness of data retrieval results in better service to customers. Please refer to the attached proposal that does a good job of outlining the program and identifies various benefits of development of a GIS system. B. ALTERNATIVE ACTIONS: 1. Motion to authorize WSB and Associates to expand and enhance the City's GIS system as proposed at a cost $35,010. Cost includes planning and implementation of applications described in the proposal. WSB has successfully completed similar work for a number of comparable communities such as Rosemount, Golden Valley, Shorewood and Mahtomedi. WSB has familiarity with County and City staff along with a basic understanding of existing information resources and systems. Due to this special background, it is our view that this work can be completed on time and within budget by WSB. Council does have the option of requesting that staff prepare a request for proposal for this project. 2. Motion to deny request for authorization to initiate GIS system development. 47 Council Agenda: 11/13106 C. STAFF RECOMMENDATION: It is the recommendation ofthe City Administrator to direct staff to work with WSB in getting this project completed as soon as possible. It is our view that the quote provided by WSB is reasonable and that WSB has unique qualifications and knowledge of the City that makes the company well suited for completing this mission. Time is of the essence as we strive to get our infonnation house in order prior to significant staff turnover that will be occurring in upcoming months. Conducting a request for proposal process including design of the RFP, advertising, evaluating responses and conducting interviews would add considerable time to the process. This additional time and effort to conduct and RFP process would not likely be off-set by savings. However, it is understood that RFP process could be desired by Council based on principal. D. SUPPORTING DATA: GIS Development Plan - WSB 48 .. WSB & .-' ~,;,'odult's. /m'. Infrastructure _ Engineering _ Planning - Construction 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763541.4800 Fax: 763541-1700 November 8, 2006 Mr. Jeff O'Neill City Administrator City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 Re: Geographic Information System (GIS) Development Plan City of Monticello, MN Dear Mr. O'Neill: WSB & Associates, Inc. (WSB) is excited to provide this proposal to expand and enhance the City of Monticello's Geographic Information System (GIS). As your former City engineer, we have managed the City's utility and mapping for the past 11 years. Over the past several years, we have been collecting infrastructure data on City and developer projects using GPS survey equipment so the data can be easily placed in a GIS system. GIS is a computer technology that combines geographic and other data sources, such as property information, to generate visual maps and reports. Currently, City staff have the ability to access aerial photography, parcel, and street information using GIS. A more effective GIS would give staff the ability to tie additional information about parcels, such as planning or easement documents, to the parcel database making this information easily retrievable using the GIS. By streamlining operations, a GIS can increase the quality of services offered to constituents, improve the consistency of document retrieval, allow more effective decision making, and save time and City funds. GIS can be an effective tool for the Police and Fire Departments by planning more efficient responses using a comprehensive, user-friendly mapping system. Based on conversations with City staff, some ways that GIS can be of benefit to City of Monticello staff are shown below: _ Interactive maps that allow utility workers to quickly retrieve as-built drawings. . Maps that allow staff to automatically retrieve planning case information for specific parcels. _ Mapping applications that support better decision making by giving managers the ability to quickly access and analyze multiple data sources. _ Mapping applications that decrease emergency response time. P: I[R7TER },ROPOSAI..\i.Montic~lIf1\LTR PROl'-i {ml!iIl-1J0806-0fSPhm.doc 49 Mr. Jeff O'Neill November 8, 2006 Page 2 . Reporting tools that can export parcel information to Excel. . Maps that allow the retrieval of easement information. . Mapping applications that show high resolution building images for emergency responders. . Mapping applications that show accurate hydrant information for the Fire Department. WSB proposes John Mackiewicz, GIS Consultant, as project manager for this project. John holds a Master's Degree in GIS from the University of Minnesota and has over eight years of experience in base mapping, application development, and providing GIS training for state, county, and city clients. John recently helped develop GIS solutions for the Cities of Rosemount, Shorewood, and Mahtomedi. John is currently assisting the Cities of Shakopee and Minnetrista in developing successful city~wide GIS solutions. He is the GIS team lead at WSB and has overseen quality assurance and quality control on all GIS work completed at WSB over the past six years. The Monticello City Council's goal is to develop efficient City programs by effectively managing resources. To realize this goal, it is recommended that the City proceed with developing a focused GIS strategy and the consolidation of GIS resources to the City server. Developin2 a Focused GIS Strateav Because GIS data and applications are complex in nature, it is strongly recommended that the City develop a focused GIS strategy before moving forward with developing the City's GIS. John has committed himself to helping our clients develop GIS in a cost-effective and timely fashion. Conducting a thorough examination of the data, business needs of staff, and available resources is the most cost-effective process. John has successfully worked with numerous cities similar in size to Monticello in focusing their GIS strategies. During this process John will: 1. Conduct a GIS Needs Assessment The conversations with City staff regarding ways that GIS can help them perfonn their daily duties will be continued in order to develop a GIS that supports their specific needs. The needs assessment will focus on documenting the operational needs of the departments within the City of Monticello. 2. System Architecture Design Based on the requirements that have been gathered from City staff in task no. 1, the following software and hardware platforms will be analyzed to determine the final system architecture that will be used for the City's GIS. . Desktop GIS - A variety of desktop GIS applications exist with varying costs and levels of functionality. Desktop GIS software will be selected based on need and cost. P.' ILEI11:."R l'JWPOSA1SIMunllt'ellu\L1R l'ROlJ~j Qndll.l108fJ6-GlSPfalt.doc 50 Mr. Jeff O'Neill November 8, 2006 Page 3 . Server Side/Web Based GIS - Based on conversations with City staff, using GIS to keep the public informed may require a web based GIS application. A web based GIS application may also satisfy many of the needs of City staff. The feasibility of a web based GIS application that ties with Wright County's existing web GIS will be examined. . Handheld GPS ~ Handheld GPS devices can be used to precisely locate buried utility structures and inventory structures within the City. There is a wide range of devices with varying levels of accuracy, functionality, and price that currently exists. WSB staff closely watches trends in GPS technology to deliver cities GPS devices that at meet their accuracy and budget requirements. . Mobile GIS - Mobile GIS can allow public works staff to access as-built drawings in the field, emergency responders to locate addresses faster, fire fighters to quickly locate the nearest hydrant, and provide up to date information to field staff. Mobile GIS applications will be selected based on functionality and cost. . Network Analysis - GIS applications can require significant network bandwidth. A GIS solution will be developed that is compatible with the City's existing network architecture. Data Consolidation Due to the variety of geographic information sources that currently exists for the City of Monticello, it will be necessary to complete an inventory of the available data at the onset of the project. In addition to the inventory, the essential data sets that are listed below will be converted to GIS shape files, referenced to Wright County Coordinates, then installed on the City server. 1. Storm Sewer The existing CAD-based storm sewer mapping will be converted to GIS and hyper linked to the as-built record drawings. Hyper linking the as-builts will allow City staff to retrieve as-built drawing by simply clicking on a pipe in a map. 2. Sanitary Sewer The existing CAD-based sanitary sewer mapping will be converted to GIS, pipe sizes will be added, and as-built record drawings will be hyper linked to the base map. Hyper linking the as-builts will allow City staf[to retrieve as-built drawing by simply clicking on a pipe in a map. 3. Water Main The existing CAD-based water main mapping will be converted to GIS and hyper linked to the as-built record drawings. Hyper linking the as-builts will allow City staff to retrieve as.built drawing by simply clicking on a pipe in a map. P; \fETTER PROrOSAlSIMuntlceflo\[TR P8.0P-j ondlll-l10806-GISP1!lh.doc 51 Mr. Jeff O'Neill November 8, 2006 Page 4 4. Zoning The existing zoning map will be transferred to the City server. This will allow City staff to quickly analyze zoning information along with other GIS data. It will also allow City staff to print zoning maps whenever they are needed. 5. Trails, Parks, and Schools Existing CAD-base maps depicting the location of trails, parks, and schools will be converted to GIS and tied to the parcel base map. This information will be of use for multiple departments. 6. CAD Base Layers The CAD base layers containing address, lot dimension, and available information regarding major gas and electric easements will be loaded onto the server. At this time this information will remain in CAD format because there is little functional advantage in fully converting it to GIS. 7. Planning Information A database system will be created so that planning case information can be linked to the base map and retrieved using GIS. Once fully implemented, this system will allow community development department staff to quickly retrieve multiple documents regarding parcels and developments using the GIS. All GIS data will be developed on Wright County Coordinates with full documentation. The following layers already exist in GIS and will be installed for the use of all City staff at no additional cost: · Zip codes . Water wells (From Minnesota Geologic Society) · Land use · Parcels boundaries · NWI wetlands · DNR public waters/wetlands · Soil survey data · County culvert information On Site Support WSB has found that dedicated on site support is essential in the successful development of a GIS. Being on site gives City staff greater access to the GIS Coordinator and allows the GIS Coordinator to be more responsive to staff needs. Tasks worked on during this time will include installing all of the data referenced above on the City's server, installing GIS software on desktop computers, training City staff, and customizing the AreGIS interface to better suit staff needs. It is proposed that John be on site at the City Hall building for approximately three or four hours every Wednesday for four months. p; VETTER },lWPOSAI.Sl.M(mtic~f/I)\l TR PRUP-j (me;ll.! J(}SfJ6-(TJS/"l1Il.doc 52 Mr. Jeff O'Neill November 8, 2006 Page 5 Cost Summary This proposal to develop a Geographic Information System (GIS) Implementation Plan consists of developing a focused GIS strategy and consolidating the available GIS resources so that they are available for City staff. It is proposed that this project be completed on a cost not to exceed basis with total cost not exceeding $35,010. Detailed costs can be provided if necessary. If you are in agreement with the terms as outlined above, please sign where indicated below and return one copy to our office. Thank you for this opportunity to enhance the City of Monticello' s GIS. I am confident that the level of service on this project will meet or exceed your expectations. If you should have any questions regarding this proposal, please contact me at 763-287-7194. Sincerely, WSB & Associates, Inc. ~2t~ GIS Consultant/Project Manager ACCEPTED BY: City of Monticello Name Title Date srb 1': 'J.lITTER PROI'OSAI..'1\Montic~lItJll.TR PROP-j f1nl;!ill-l J0806-CrSPIllfl.doc 53 Council Agenda: 11/13/06 12. Review Area for 2007 Street Reconstruction Feasibility Report and Consideration of Authorizine Feasibility Study (City of Monticello Proiect No. 2007-01C) (WSB) A. REFERENCE AND BACKGROUND: At the October 9,2006, City Council meeting, the Council authorized street ratings and preliminary cost estimates for Area 4A as part of the City's Overall Street Reconstruction Program. After the meeting, several residents from Area 3 requested that the City continue reconstructing the remaining streets in Area 3. Following consultation with Mayor Herbst, City staff rated these streets as well. The street rating information has been provided to the Mayor, Council Members, and City staff under separate cover for reVIew. In an effort to look at the overall program instead of just year to year, we have put together some preliminary funding information for Areas 3, 4A, 4B, and 5. These are the next most critical streets to reconstruct in the near future based on previous street ratings. Below is a summary of the estimated total cost to reconstruct these four areas and the funding sources: Area 4 B includes reconstructing River Street from TH 25 east past Dayton Street to the Hospital. Area 5 includes the remaining streets in the downtown area, east ofTH 25, between Broadway and 7th Street. The estimated project costs include a 10% contingency and 22% indirect costs, as well as a potential funding breakdown for the improvements in each area. The remaining $1,508,200 cost could be funded by spreading the costs over a 4-year period to construct these improvements, totaling $377,050 per year. Additional City revenue sources, special assessments, and general funds could be utilized to fund remaining project costs. Attached is a breakdown of the funding mechanisms for each area. Total Estimated Project Cost - Areas 3, 4A, 48, 5 $11,630,000 Storm Sewer Trunk Fund* $950,000 Watermain Trunk Fund* $1,079,000 Sanitary Sewer Trunk Fund* $1,755,000 Street Fund $2,000,000 Municipal State Aid Funds $1,560,000 Residential Assessment $1,581,800 Non-Residential Assessment $1,196,000 Net Remaining Cost to be Funded $1,508,200 F;\da'l1.Jlg\'r'\.(mipmc\2006 Council A1{€TUlus\11-13-06 ccagendal12 lteview 2007 SU'I,!et Reean-' /1306.doc 54 Council Agenda: 11/13/06 The funding sources are described in more detail below: Assessments: Assessments are based on the City's standard residential and non- residential rates with a 5% increase year to year, starting at $3,300 per residential unit for 2007 and $80 per front foot for non-residential lots. Since we are still under funded, we chose to use $3,300/unit for next year's project and then increase that amount annually. Accounting for comer lot assessments will need to be evaluated for each area in the feasibility stage based on the City's current assessment policy. State Aid Funds: State Aid funds can be utilized for River Street from Elm Street to Washington Street as it is designated as a Municipal State Aid Street eligible for funding. As of the end of2006, there is $1,033,000 available from State Aid funds. Approximately $550,000 is eligible for the Cedar Street and Dundas Road improvement project constructed this year. Approximately $130,000 ofthe $550,000 available would cover the remaining non-assessed street costs for Cedar Street. The remaining $420,000 could then be used for the Area 3 street improvement costs. Dundas Road is nearly 100% assessed and does not have significant City funding where State Aid Funds would be utilized. This method of distributing State funds for other roads is typical since only 20% of the City's roadways are eligible for State Aid funding. In addition, for funding of Area 4A, there is approximately $540,000 available for funds generated for River Street that could be back-charged to fund streets in Area 3, since none of these streets are State Aid routes. In addition, State Aid funds for Area 4B could be utilized to fund a portion of Area 5. The City received an allotment of approximately $230,000 for 2006 construction as this is a typical amount from year to year. It is anticipated that excess funds would still be available in addition to the $1,560,000 proposed to be utilized in the next 4 years for the projects. . Trunk Funds: It is anticipated that the current trunk fund balance is available to fund The sanitary sewer, watermain, and storm sewer improvements. Fund balances are expected to increase as development continues. This is somewhat concerning if the current rate of development continues since the trunk funding assumes 200+ homes constructed annually. Also, although use of Trunk Fees obtained from new development projects to help fund a portion of the cost of reconstruction is justifiable. Use of Trunk Funds as a major source of funding for reconstruction projects was not contemplated when the original trunkfee rates were established. When the Trunk Fee Program was established, the amount charged to developers related primarily to the cost to oversize systems in the areas of new development only. Thus, heavy use of trunk fees to pay for reconstruction projects could leave the City short when it comes time pay for projects that were originally intended for funding via trunkfees. At some point, the City will need to face the issue and resolve it using one or a combination of the following strategies. 1) Increase trunkfees paid by new development to reflect the need for reconstruction of existing systems. 2) Establishment ofa storm water utility program for the purpose of development offimds for maintenance and reconstruction of storm sewers. 3) Increase portion assessed to property owners. 4) Draw from General Fund reserves or finance gap via borrowed funds supported by a tax levy. 5)Adjust sewer and water rates to pay for a portion of the reconstruction costs. Analysis of this topic will be incorporated in the Financial Management Plan proposed under a separate agenda item. 55 F: Id(l\Ulgl.....vrdprncI2006 emmel' ;/,gelldlls\11-13-06 cxagelldalI2 Review 2007 Street RecQlI-l11306.doc Council Agenda: 11113/06 Street Fund: The City has budgeted approximately $500,000 annually for the street reconstruction projects and has typically not had to bond for the cost of the improvements. Other Funds: Additional City revenue sources, special assessments, and general funds could be utilized to fund remaining project costs. The attached financial analysis was completed to show that with the slightly increased assessments, use of State Aid funds and trunk funds will show a net deficit of $1 ,508,200. Looking at the total deficit over four projects shows that Area 3 is the toughest financially for the City and the Street Fund will catch up with the future projects. The Council may want to consider increasing the $500,000 street fund annually to deal with the increasing construction costs. As indicated in the street ratings, a majority of the streets in both Area 3 and Area 4A are in need of reconstruction. As the street rating report indicates, a rating under 35 indicates several distresses in the pavement, where the street has exceeded its life cycle and is therefore, in need of reconstruction. Comparing the street ratings in the 0 to 35 range does not result in a significant change in the type of maintenance method for these streets or make the street with the higher PCI rating in better condition that the street with the lower PCI rating. The Overall Street Reconstruction Program noted that both Areas 4A and 4B be constructed as one project to provide efficiency during construction that could potentially result in a cost savings for the sanitary sewer replacement part of the project. A major effort would need to be taken to plan for replacing the sanitary sewer in Area 4, as it would involve dewatering due to high groundwater levels, replacement of the watennain, along with providing temporary water service, investigation of the condition of the existing sewer services to determine replacement methods, and replacement of the stonn sewer. Considering how much of the City would be under construction at one time, it would likely be best to do these projects separately. In addition, since skin patching has been placed on River Street, it may be feasible to continue with Area 3 prior to Area 4A. The feasibility study would evaluate the scope ofthe 2007 project along with a more detailed economic analysis relating to cost and potential assessments for the project. This process can get stretched depending on the level of assessments and available funding as well as the development of a project that can realistically be constructed within the financial parameters established by the Council. By starting the process now, it will allow for time to work through those issues and work towards bidding a project in March or April of2007. B. ALTERNATIVE ACTIONS: 1. Authorize WSB & Associates, Inc. to complete the feasibility study for the remainder of Area 3. 2. Authorize WSB & Associates, Inc. to complete the feasibility study for Area 4A. 3. Do not authorize the feasibility study at this time. 56 F:\damigIHl?rdproc\2(J()6 Cuul'lCil Agerlda.'iI\11-13.06 ccageluta\12 Revt~w 2007 S(l~t 1~CCOI1-l 11306,doc Council Agenda: 11/13/06 C. STAFF RECOMMENDATION: It is the recommendation ofthe City Administrator that the City Council take action on the next phase of the 2007 Reconstruction Project. The process on past projects in this area ofthe City has been lengthy and we have bid these projects in mid-summer as opposed to early spring, which is typically more suited for lower bid prices and interest from contractors. Initiation ofthe project now will allow more time for project scoping and public input. It is also recommended that the funding program supporting reconstruction especially heavy use oftrunk fees be examined closely in conjunction with the proposed development of a City financial management plan. Council should keep an open mind regarding future core street reconstruction work pending completion of the FMP. D. SUPPORTING DATA: Overall Street Reconstruction Map Funding Breakdown for Each Area 57 F: \daWflg\wrdproc\2006 C~llci/ Agellda.flJ 1~13-()6 ccagen4a\12 Review 2Q07 Stl'(!et &(:0'/-111306.110(: S!reet_Re_C!ons-.!ru~tio,!__Fun_dln9 Summa_ry_ Tota_1 EstimiJted Projec! Cost Storm Sewer Trunk Fund Area 3* ----".-.'.'-- $3,330,_00L_ Area 4A Area 48 . $2,206~900 "".~ "$2,,590,'0'00 .- Area 5 Total "_~~,600,09o" . $1"~_,f3.,36:690,~.". _~_47!?,00q __ --- ,,--,. ..--.,"--." .---- -- .--- --.. .-.- W.!iter'!1a!n Trunk_Fund $50,000__ -----------+------- ~anlt~ry Sew~r Trun~ Fund _ I ____n___ Street Fund __~J2!?,000 . $150,0_~_ _~09,000__ __~3?9,009_____~~0,000_ __$350,000_ _~655.000----.E00,000- $400,000__ ___n _.. ..- -. ---.,'--' ,.- - .".-. ..---- ..-..,- Muni~ipal Sti!~~~ Funds** .-.. -- .-.-- ".- ----... ..---- $500,00~__ $500,QOO___ ----.!?OO,OOO _n$500,00Q. Residential Assessment Non-Residential Assessment __~3~,600 $960,00~_ forwar~ed to Area 3 _---.!4 ~,500 --"... ,.--.- ----- ----., ".-., ----. "..--." ------ ~950,OQ~_ . $1~079,boo _- n-.1!.J5!?000- . -$2,000-,000 -- Remal_l1il19 C~st to be Funded ._~8~9,600- __$128&00 -- .---. .-----... -----..., ".--. ,.-- ____$252,000----~52-,OOO- ___~!53200 _.__ _ _ $129,5Q~ ___ $762,200._ __ $181 ,509__---.11~560,000 _. $1!581 ,~OQ___ -.,,'--'. .".- - .--. --". ---..".'- __--=-$14,500- $0 ..---.,.-- __$563,200 _---.1643, 1 00 . $1.1.96,000 _ $1.508~200_ .__... _._. ..n_.'" .___ ---. --- .---., -.... * assumes West River Street from CSAH 75 to City Ballfield;' bereconstructed as a rural section ;;. Excess State Aid Funds ene-rated for- Cedar sti Dundas Rd an-d River Street can be a----rred to other-----;:(ieCt areas- K:I01494-21 IQuantitylPrelim inarylF u nding .xls 58 Resolution No. 2006-100 Page 2 EXHIBIT A TO OFFICIAL INTENT RESOLUTION ADOPTED NOVEMBER 13, 2006 DATE OF ., .,', ',":", "",' , DECLARATION DESCRIPTION OF PROJECT 11/13/06 MAXIMUM :'.!:',,":., "., ',,: "i :p~!NCIIr AL AMOUNT OF DEBT FOR.PROJECT Dalton Avenue, Dalton Court and Dalton $1,254,450 Way street, utilities and appurtenant work, City Project No. 2006-16C 29 Council Agenda: 11/13106 7. Continuation of Public Hearine: and Consideration of Adoptine: the Assessment Roll for Public Improvement No. 2006-01C 2006 Street Reconstruction Pro ram Ci of Monticello Proiect No. 2006-01C) (WSB) A. REFERENCE AND BACKGROUND: The assessment hearing for the 2006 Street Reconstruction project was opened at the October 23,2006 City Council meeting. Public input received during the hearing was directed primarily at the basis of assessment for the sidewalk constructed along Otter Creek Road and River Street. As a result, the assessment hearing was scheduled for continuation at the November 13, 2006 Council meeting based on the following modifications to the proposed assessment roll: · Tom Holthaus - The proposed assessment for Mr. Holthaus has been modified to reflect a residential lot assessment for four new lots and one additional lot at $2,500, which was established as part of the CSAH 75 improvement project. This property will also be assessed for one lot sidewalk assessment. Mr. Holthaus was also assessed $4,083.50 as part of the CSAH 75 project, which has been deducted for his overall assessment for this project. Mr. Holthaus continues to state that because of all the delays to his plat and because he didn't receive any curb and gutter, he should have four lots at $2,500 and one lot at $3,000. This is a difference of$I,500 from what we have proposed. As we mentioned at the last meeting, Mr. Holthaus had requested payment for the use of his property as a staging site. We checked with Buffalo Bituminous and they don't feel a need to pay for the use of their property since it was offered to them free of charge. · Paul and Janet Fuss - The assessment for Mr. Fuss has been revised to include two sidewalk assessments and two residential lot street assessments for his duplex lot. · Mary Ritze - The basis for the assessment to this parcel has been changed to reflect five lot assessments for both the street and sidewalk instead of on a front foot basis as proposed previously. Two options have been developed for the proposed sidewalk assessment. The attached assessment rolls have been modified to include 94 additional assessable lots within the Red Rooster and River Terrace mobile home parks. The assessment options are based the following: · Option No. 1- Includes reducing the assessment rate for the sidewalk to $200 per lot for the 45 residential lots in the project area, which was proposed at the public hearing. The additional 94 lots in the mobile home parks would then be assessed at $110.38 per lot. The amount of assessment for the sidewalk stays consistent over both options. · Option No.2 - Includes an equal assessment of $13 9.39 for all 13 9 lots including both single family lots and the additional lots in the trailer park areas. c., IDucumt!I/l.5 and Setting~i'v:Jali'n.gmSSlnger\WcQ' SeUingsITempof't/ry f1Utrnti!( File,flOlK3lAGN rFM-200tiStteetRecoIlAsse;nHl'gCollt_( 1 J 306.doc 30 Council Agenda: 11/13106 Previously proposed assessment rates for residential units have remained as previously proposed. Following the public hearing, the City Council will be asked to adopt the assessment roll based on input from affected residents. It should be noted that the notices mailed to the affected properties included the $200 per lot assessment rate to single family property owners and the $139.39 per lot for the mobile home parks as it represents the highest possible amount of assessment for the different types of properties. The $200 single family assessment is what was originally proposed. It might make sense for Council to apply a lower rate for the mobile home parks. If the Council wants to stay with the 25% assessment and charge the single family $200, then the mobile home rate would be $11 O/unit. If the Council wants everyone charged the same rate, the cost would be $ 139/unit. B. AL TERNA TIVE ACTIONS: 1. Adopt the assessment roll as proposed using the assessment rates of$3,000/assessable unit, $80.00 per front for non-single family properties, $200/single family unit, and $139.39 per lot in the mobile home parks as proposed. 2. Other alternative. 3. Do not adopt the assessment roll as proposed. C. STAFF RECOMMENDATION: It is the recommendation of the City Administrator that the assessment roll as presented be adopted in order to meet the November 30,2006 certification deadline for collection with 2007 taxes. Adoption of the assessment roll with the assessment rates as proposed in Action No. 1 will allow the Council flexibility to reduce the assessments with the Red Rooster and the River Terrace Park to an amount less than $139, but no lower than $11O/10t. The $200 per lot for single family lots should be maintained to stay consistent with the information presented at the public hearing. D. 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Z c: c: 3 N 3 c- o c- CD 0 CD " ~ " ~ N 0 ~ .... 0 ! ~ ~ ;u CD ~ n 8 ::I en 2 0. 0" ::I ~ a '" OJ 3 o ""C -I (5 Z N Council Agenda: 11/13/06 8. Continuation of Assessment Hearine: and Adopt Assessment Roll for Public Improvement No. 200S-11C for the Chelsea Road Extension (90th Street to CSAH 39) and School Boulevard (Chelsea Road to 1.330 Feet South) Proiect (City of Monticello Proiect No. 200S-11C) (WSB) A. REFERENCE AND BACKGROUND: This item is the continuation of the assessment hearing from the previous meeting. We have met with Mr. Chadwick and the assessments outlined below have been ahl'feed to by both parties. The Chelsea Road extension project included extending Chelsea Road from 90th Street to CSAH 39. Extension of the roadway and utilities provided access and development of property owned by Chadwick/Bowers and development of the Monticello Business Center owned by the City. Since the improvements were constructed, development of the Dahlheimer distributing plant and plat approval for the Apple Valley Ready Mix and Karlsburger Foods sites has occurred. The project cost totals $4,642,579.25. The construction cost totals $2,792,513.85. Indirect costs totaled $1,850,065.40, which includes engineering, material testing, administration, legal, Rask property and house purchase, and financing costs. An Assessment Agreement, outlining a 79%-21 % split between Chadwick/Bowers and the City of Monticello was entered into on September 29,2004. The assessment numbers were modified after the October 23 council meeting. John Chadwick and WSB met with Bruce Westby regarding line items from the assessment agreement and an adjustment to the allocation ofthe administrative costs between Chelsea Road and School Boulevard. The assessment numbers listed below were the result of that meeting. The following assessments have been calculated per the agreement. The proposed assessments are as follows: · Moon Motors............................................................................ .$284,680.40 · City of Monticello.. ........................................................ ........ .$2,3 84,347.42 Monticello Business Center..........$1,382,164.1] 34.49-foot Strip ..................................$23,055.10 Trunk Funds (Water Main) ................$48,688.05 Trunk Funds (San Sewer) ................$710,976.33 Trunk Funds (Storm Sewer).............$219,463.83 · Chadwick/Bowers.............. .............. ............ ..... ................ ......$2,311,908.93 Per the Assessment Agreement dated September 29,2004, the Chadwick/Bowers assessment includes $131,155.00 for the purchase of the excess property located north of the Chelsea Road right-of-way from the Rask property purchase. The Monticello Business Center assessment includes $207,202.50 for the purchase of the excess property located south of the Chelsea Road right-of-way from the Rask property purchase. 34 c: !Documents ami Settillg.~ldawngrosj"nger\Local Setti1W.f\'J'empOl'afY lmemet Files\OLK3\AGN ITM-Chel,ff!fJRd(}maIJCIAsseslfrg.111306.doc Council Agenda: 11/13/06 The trunk fund assessments include upsizing the water main to 16 inches within Chelsea Road and School Boulevard (now Dalton Avenue), the construction of the sanitary sewer lift station, and drainage ponds for the Monticello Business Center and contributing drainage basin. The assessment to the Monticello Business Center is for the agreed upon share of the Chelsea Road assessment and all of School Boulevard (Dalton Way). The 34.49-foot strip is located adjacent to the eastern property line of Moon Motors and is designated as Outlot A on the Otter Creek Crossing plat. The final assessment amount shall be assessed against the properties over a ten (10) year period accruing interest at the rate of 6.5% per annum, with interest to accrue as payment is made for the costs of the project. Street lighting costs are not included with the project costs as this will be addressed via a separate public hearing. B. AL TERNA TIVE ACTIONS: 1. Adopt the assessment roll. 2. Do not adopt the assessment roll at this time. C. STAFF RECOMMENDATION: The City Administrator recommends that the Council authorize Alternative No.1 as this alternative is supported by Chadwick and consistent with funding program expectations. D. SUPPORTING DATA: Assessment Roll Map 35 C: \DocumentS oM SettingsltJaW'U;I'O,fsinget\f...()cl1[ Setting~i\Tf.mpor{//y ltlte,.,let Fill!:s\OI.K3\AGN ITM_Chel.~eaRdCotlductAss(':j'H''g-111306.doc I L....I [ """""1f"'--'- City Council Agenda - 11/13/06 9. Public hearin~--Adoption of proposed assessment roll for delinauent accounts receivable bills and certification of assessment roll to Countv Auditor. (C.S.) A. REFERENCE AND BACKGROUND: The City Council is asked to adopt an assessment roll for accounts receivable bills which are delinquent more than 60 days and to certify the assessment roll to the County Auditor for collection on next 2007 real estate taxes ifnot paid within 30 days of this public hearing. It is recommended that the delinquent accounts be put on an assessment roll for certification in 2007 at an interest rate of 6% as allowed by state statute. As in the past, if any accounts are paid within 30 days after the adoption ofthe assessment roll, they can be paid without any additional interest. B. ALTERNATIVE ACTIONS: 1. Adopt the assessment roll for the delinquent charges as presented. 2. Based on public hearing input, adjust the assessment roll as required. C. STAFF RECOMMENDATION: It is staff recommendation that the Council adopt the assessment roll as presented. All of the accounts are at least 60 days past due and have been given proper notice of this assessment hearing and ample opportunity to pay the accounts in full. D. SUPPORTING DATA: Copy of resolution adopting assessment roll; Complete listing of delinquent accounts to be certified. 38 CITY OF MONTICELLO RESOLUTION NO. 2006-103 RESOLUTION ADOPTING ASSESSMENT ROLL FOR DELINQUENT ACCOUNTS RECEIVABLE WHEREAS, pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessment for delinquent accounts receivable charges; NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF MONTICELLO, MINNESOTA: 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessments against the parcels named herein and each tract of land therein included is hereby found to be benefited by the assessment levied against it. 2. Such assessment shall be payable in one (1) annual installment payable on or before the first Monday in January 2007 and shall bear interest at the rate of six percent (6%) per annum from the date of the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment from the date of this resolution until December 31,2006. 3. The owner ofthe property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property with interest accrued to the date of payment to the City, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of this resolution. 4. The City Administrator shall forthwith transmit a certified duplicate of this assessment roll to the County Auditor to be extended on the proper tax list of the county, and such assessment shall be collected and paid over in the same manner as other municipal taxes. Adopted by the Monticello City Council this 13th day of November, 2006. ATTEST: Clint Herbst, Mayor Jeff O'Neill, City Administrator 39 CITY OF MONTICELLO 2006 DELINQUENT ACCOUNTS RECEIVABLE CHARGES Annual Installments: (1) year Method: Principal plus interest Interest Rate: Six percent (6%) Interest Due From: January 1, 2007 1 st Installment Due: 2007 Purpose: Delinquent miscellaneous accounts receivable. Fund: General Fund #101 TOTAL ASSESSED: $6,323.09 40 Vi 0::: <( :!: - 00 00 ...... 00 M...... 00 00 I I NM NL{) ...... ...... I I L{)L{) L{)L{) ...... M ~ ~N ~ MNOOOOOO OO~~M......L{)NM~~~~~MMM~MMMMMM OO............oo............NNNNNN......~~.......................................... OOOOOOOOOOOOOO~~OOOOOOO 00......00 00...... oooooooooooo......~~............ ............ ...... c o Vl ...... <l) "'C ~ .S: ii) :J Cl :;:, Vl :J ...... Cl- O.:.t. Vl c C ro .r::.OJ o <l) .r::. 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I I L{)L{) L{)L{) ...... ...... 0000000 oomN~L{)~~ 00........0000 NNMNNNN 0000000 0000000 I I I I I I I NNN~~~~ ~~~~~~~ .,.... T"'" ~.,.... ~ ~ "f"'"" I I 1 I I I I L{)L{)L{)L{)L{)L{)L{) L{)L{)L{)L{)L{)L{)L{) ,...,.... ,... "f"'"" 00 L{)~ 00 L{)N 00 00 I I L{)M ......M 00 , I L{)L{) L{)L{) ...... 00000 ......~ON...... O............NO M~M~~ 00000 00000 I I I I I O~N~~ gg:g:g:g J,J,J,J,J, L{)L{)L{)L{)L{) ,.... ~ 'f"'""""" ~ o M N M ~ ...... -:;t ~ o o ~ Q2 ...... ...... (f) ~ (J) 0:: <( ::2: I (J) OJ :::> a .....l w o ;::::- o o N >. ro a. '-' ~ o o N Council Agenda: 11/13/06 10. Consideration Authorizinl! Completion of a financial manal!ement plan (FMP) for the City of Monticello to be completed bv Ehlers and Associates Ine in the amount of $9.750. (JO) A. REFERENCE AND BACKGROUND: City COWlcil is asked to consider authorizing completion of a comprehensive fiscal plan for the community. The process reviews all of the governmental revenues and expenditures of the community in a manner that allows the community to determine its options and then set policy to guide fmancial expenditures for both the short and long term. This process is an interactive one involving both the staff and City Council. In addition, financial policies such as debt policies and minimum balance per fund policies are reviewed to assure that the community has appropriate control mechanisms in place. Why complete a FMP? Although the City has done a good job of financial management and met high standards as defmed by Moody's investment services it is my view that the time is right to inventory revenue demands and resources and establish a plan accordingly. In recent months, a number of projects have been identified for completion in the next few years. At the same time, the slow down in construction and other factors are having an affect on revenue streams. The goal of the FMP is to provide information to the City Council necessary to set priorities and project timing based on availability of funds. Following is a list of the various projects that will require funding in the next few years. . Wastewater treatment plant expansion! dryer . Fire Department expansion or relocation . Public Works Facility . Various trunk sewer improvement . Fallon Avenue overpass . Orchard Road Interchange . West 7th Street Extension . YMCA purchase . North Frontage Road/Interchange . Second Liquor Store . Core Street Reconstruction - ongoing . Sanitary SewerlRoad reconstruction - Chestnut to Ramsey . Redevelopment expenses . Restructuring repayment of recent $25,000,000 debt - making sure we can meet obligation. . Street Lighting projects . Chelsea Road redevelopment . Increases in operation funding demands resulting from growth. The FMP will identify various funding sources for the projects noted above and will analyze the impact of development trends on the City's financial ability to fund projects. This information will be useful in Council prioritization and timing ofprojects. Such funding sources include but are not limited to: . General Fund (taking into account growing tax base,). 42 Council Agenda: 11/13/06 . General Fund Reserve (taking into account portion set aside or earmarked for certain projects) . SACIWAC funds. . Storm Sewer Trunk Funds Water and Sewer Fees. . Additional Utility Fees (Should City consider establishing a storm water utility fee) . Xcel surcharge. . Liquor Store Funds. . Establishment ofXcel Revenue stabilization program. The FMP will compare options available to the community so that the real results of financial decisions can be seen. Questions such as "How long will fund balances be able to pay for street reconstruction?"; "How does declining growth projections affect our tax rate if we still want the three big projects on the horizon?"; or "How much debt is too much debt?" can be addressed in this format. Financial actions or inactions will reflect in a way that allows the City Council to make realistic decisions for the future. This process will provide the community with information to make decisions related to their revenue and expenditure practices and to assist them in matching resources to future needs. The resulting product of a FMP is a 10 year forecast and capital improvement plan with a funding strategy. As an added benefit, it is likely that the completion of this process will coincide with the hiring of a Finance Director. Thus the new Director will start his/her job with good direction. In a perfect world, it would be great to have the Director participate in the FMP development process but I prefer not to wait on this until we have someone on-board. It certainly is an option however to wait on development of this plan until a Finance Director has been hired. Budget Impact This is not an item budgeted for 2006 and thus funding would need to be drawn from existing reserves. B. AL TERNA TIVE ACTIONS: 1. Motion to authorize Ehlers and Associates to complete a Comprehensive Fiscal Plan for the City at an estimated cost of $9,750. It is my view that the price quoted by Ehlers and Associates, Inc. is reasonable and that the company has done a very good job as the City's financial advisor therefore Council should consider awarding this work directly. However, Council is certainly free to request that staff obtain a quote for similar services from other [mancial consulting firms. 2. Motion to table matter pending hiring of a Finance Director. Council may select this option if you believe that preparation of the report, though important, can wait until the Finance Director is on board. His or her ability to understand the City's finance capacity to fund projects could be enhanced by allow the new Director to playa major role in development the plan. 3. Motion to deny request to complete a Financial Management Plan for the City of Monticello. 43 Council Agenda: 11/13/06 C. STAFF RECOMMENDATION: The City Administrator recommends Alternative #1. The City Council has identified a number of worthy projects all requiring significant funding while at the same time the development pace has slowed and there is ongoing desire to keep tax levy increases to a minimum. The development of this plan becomes the roadmap for Council defining the path for funding and completing important projects at an affordable pace. D. SUPPORTING DATA: Copy of proposal submitted by Ehlers and Associates, Inc. 44 City of Monticello Ehlers & Associates Proposal for Services Financial Management Plan A financial management plan (FMP) is a comprehensive fiscal plan for the community. The process reviews all of the governmental revenues and expenditures of the community in a manner that allows the community to determine its options and then set policy to guide financial expenditures for both the short and long term. This process is an interactive one involving both the staff and City Council. In addition, financial policies such as debt policies and minimum balance per fund policies are reviewed to assure that the community has appropriate control mechanisms in place. The FMP wilI compare options available to the community so that the real results of financial decisions can be seen. Questions such as "How long will fund balance be able to pay for street reconstruction?"; "How does declining growth projections affect our tax rate if we still want the three big projects on the horizon?"; or "How much debt is too much debt?" can be addressed in this format. Financial actions or inactions will reflect in a way that allows the City Council to make realistic decisions for the future. This process will provide the community with information to make decisions related to their revenue and expenditure practices and to assist them in matching resources to future needs. The resulting product of a FMP is a 10 year forecast and capital improvement plan with a funding strategy. For the general fund and associated expenditures, the following items will be included in this process: . Review the community's current financial position; . Develop an inventory of capital and staff/operational needs and program requests . Develop an inventory of financial resources; . Present options; . Analyze the financial impact of each option; . Benchmark levels of debt and taxes to other similar communities . Prepare an affordable, comprehensive financial plan; . Develop a framework to review future capital projects. Ehlers will make up to three presentations to the City Council. The first wilI be to explain the program and deliverable product. The second (if needed) will provide a progress report on accomplishments to date. The final workshop will present the final report and answer questions regarding its use. Ehlers will also conduct three workshops with the City staff. Between workshops, Ehlers will work with city staff to refine data and provide information for the next workshop. For the initial workshop, Ehlers will prepare a report on the base-line status ofthe City's financial condition from the budgets and annual reports provided by the staft~ Evaluations will be made relative to debt margins, fund balance, and apparent trends. At the end of this first session a comprehensive list of major capital items will be developed with the City staff For the second workshop Ehlers will develop long-range projections of the City's revenues. Ten-year projections of revenues that mirror previous growth will be provided. Discussions will then take place regarding the consequences of these ten-year operating and budget Ehlers' Scope of Services for the City of Monticello - November, 2006 Page 45