City Council Agenda Packet 01-08-2007
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, January 8, 2007 -7 p.m.
Mayor: Clint Herbst
Council Members: Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski
1 A. Call to Order and Pledge of Allegiance
lB. Oath of Office to Mayor and newly elected Council.
2A. Approve minutes of December 11, 2006 Regular Council meeting.
2B. Approve minutes of December 21,2006 Special 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 for MCC and liquor store.
B. Consideration of approval ofwine/strong beer license for Cornerstone Cafe and
Catering.
C. Consideration of application for off-sale 3.2 beer license for Target Store, T-2180 at
1147 East ih Street.
D. Consideration of approving amended contract for hazardous material removal from the
Monte Club site.
E. Consideration of final acceptance of the Hillside Farms 2nd Addition Development, City
Project No. 2004-08P.
F. Consideration of approving Change Order #1 for Xcel Ballfield Fencing and
consideration of final payment, City Project No. 2006-19c.
G. Consideration of revision to 2007 fee schedule.
H. Consideration of authorizing establishment of Deputy Registrar Manager position.
6. Consideration of items removed from the consent agenda for discussion.
7. Public Hearing - Consideration approving a tax revenue stabilization agreement which includes
a tax abatement process as part of the revenue stabilization agreement with Xcel Energy.
8. Consideration of authorization to submit grant application supporting construction of pedestrian
underpass at County Road 39 and CSAH 75.
9. Consideration of appointments for 2007.
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Agenda
Monticello City Council
January 8, 2007
Page 2
10. Approve payment of bills for January.
11. Adjourn.
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MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, December 11, 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 Plede:e of Allee:iance
Mayor Herbst called the meeting to order at 7 p.m. and declared a quorum present. The
Pledge of Allegiance was said.
2A. Approve minutes of November 27. 2006 Special Council Meetin2
BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF THE NOVEMBER 27,2006
SPECIAL COUNCIL MEETING. TOM PERRAULT SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY.
2B. Approve minutes of November 27. 2006 Re2ular Council Meetine:
Wayne Mayer noted a clarification on Page 12. The minutes read: "Wayne Mayer and Glen
Posusta felt the School Boulevard project should be done first." Wayne Mayer said it should
be added to the minutes that since $30,000 of the $66,391 of project cost was already paid, he
felt the project should go forward and Glen Posusta agreed.
On page 13 under Added Items: Bond Issue, Wayne Mayer asked that it be added to the
minutes that Mr. LinDell wanted the City to wait for private enterprise to offer this service.
Glen Posusta noted that the date for the hearing on the 2007 fee schedule should be December
11, 2006 not 2007.
TOM PERRAULT MOVED TO APPROVE THE MINUTES OF THE NOVEMBER 27,
2006 REGULAR COUNCIL MEETING WITH THE CORRECTIONS NOTED. GLEN
POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
3. Consideration of addin2 items to the aeenda.
The following items were added to the agenda: 1) Accept donation ofland to the City from
Brad Larson; 2) Designate three members of the Council to serve on the Task Force for the
Comprehensive Plan Update; 3) Updates on a)Revenue Stabilization Agreement with Xcel,
b)YMCA, c) Kjellberg accessory building and enforcement of code and d)DMV update;
4) Update on fiber optics; 5) Parking lot lights at Denny Hecker and 6) Need for a special
meeting in December.
4. Citizens comments. petitions. requests and concerns.
No one spoke under citizens comments.
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5. Consent A2enda:
A. Consideration of ratifying hires and departures for MCC. Recommendation: Ratify
hires and departures as identified.
B. Consideration of approving fund transfers for 2006. Recommendation: Approve
fund transfers for 2006.
C. Consideration of approval ofwine/3.2 beer license for Cornerstone Cafe and Catering.
Recommendation: Approve wine/3.2 beer license for Cornerstone Cafe and Catering
for the period January 1, 2007 through June 30, 2007 contingent upon payment of
license fee.
D. Consideration of City maintaining public streets for Hillside Farms 3rd and 4th
Additions. Recommendation: Accept maintenance responsibilities for public streets
in the Hillside Farms 3rd and 4th Additions, Projects No. 2004-22P and 2004-23P
subject to installation of street name signage.
E. REMOVED.
F. REMOVED.
G. Consideration of accepting quotes for replacement of furnace at Fire Hall.
Recommendation: Approve the removal of existing furnaces and air conditioners
and replace with single unit with staff reviewing the quotes to determine the best
replacement option.
H. Consideration of approving a request for preliminary and final plat approval for the
Carver Plat. Applicant: Tom Parker. Recommendation: Approve the preliminary
plat and final plat of the Carver Plat, a three lot residential subdivision subject to a
finding that the proposed use is consistent with the intent of the R-l, Single Family
Residential District and the Comprehensive Plan.
1. Consideration of authorizing WSB to assist the City in preparing the Storrnwater
Pollution Prevention Program. Recommendation: Authorize the City Engineer to
utilize WSB's services to prep arc the City's Stonnwater Pollution Prevention Program
(SWPPP) and MS4 permit application.
J. Consideration of approving a request for Development Stage Planned Unit
Development fur the proposed expansion ofthc5t. Benedict's Senior Community.
Applicant: CentraCare/St. Benedict's Senior Community. Recommendation:
Approve the Planned Unit Development for St. Benedict's based on a finding that the
proposed uses are consistent with the intent ofthe original PUD and the R-3 District,
subject to 1) Thc width of the fire access lane being subject to the approval of the City
Fire Marshall and 2) The applicant shall be required to revise the site plan to meet all
recommendations of the City Engineer as noted in the Council agenda item.
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K. Consideration of approving Change Order #1 for Xcel Ballfield Fencing and
consideration of final payment on City Project No. 2006-19C. Recommendation:
Approve Change Order No.1 for Xcel Ballfield Fencing Project deducting $964.35
from the final payment to Oberg Fence and to authorize final payment to Oberg Fence
in the amount of$13,935.90 for a total project cost of$18,902.65 for City Project No.
2006-19C.
L. Consideration of approving liquor providers for the Monticello Community Center for
2007. Recommendation: Approve the following liquor providers for the
Community Center for 2007: Classic Catering by RJ's, Crostini's Grille, Flaming June,
Geez Sports Bar & Grill and Russell's on the Lake.
M. Consideration of final acceptance for Hunters Crossing Addition and Hunters
Crossing 2nd Addition, City Project No. 2004-35P. Recommendation: Acceptance
of the public improvements for Hunters Crossing and Hunters Crossing 2nd Addition
subject to receipt of required documentation.
N. Consideration of approving final payment and accepting improvements for School
Boulevard (Deegan Avenue to Redford Lane) Street and Utility Improvements, City
Project No. 2005-02C. Recommendation: Accept the improvements for School
Boulevard (Deegan Avenue to Redford Lane), City Project No. 2005-02C and
authorize final payment of$92,213.82 to Randy Kramer Excavating, Inc. subject to
receipt of required paperwork.
O. Consideration of approving a job description and authorization of advertising for the
position of City Finance Director. Recommendation: Approve the job description
for City Finance Director at Grade 16 with a pay range of$58,796 to $76,535 and
authorize advertisement of the position.
P. Consideration of approving a request for extension of an Interim Use Permit for an
existing facility for open and outdoor sales in a B-3 District. Recommendation:
Approve the application for renewal of the existing Interim Use Permit subject to all
conditions of the original Interim Use Permit, based on the finding that the proposed
use will not interfere with the City's long range objectives of encouraging high quality
development in the area due to the temporary nature of the permit and subject to the
applicant providing a $15,000 letter of credit to assure updating of site to meet code at
the end of the 30 month period if necessary.
Q. NO ACTION REQUESTED - This item to be considered at the January 22, 2007
Council Meeting. Consideration of approving an amendment to the Monticello
Zoning Ordinance, Section 3-3[F] regulating front yard setback averaging. Applicant:
City of Monticello.
R. Consideration of accepting donation of land from Brad Larson to the City of
Monticello. Recommendation: Accept the donation of land from Brad Larson.
BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA CONSISTING OF
ITEMS 5A, 5B, 5C, 5D, 5H, 51, 5M, 5N, 50 AND 5R. WAYNE MAYER
SECONDED THE MOTION CARRIED UNANIMOUSLY.
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6. Consideration of items removed from the consent a2enda for discussion.
#5G: Replacement of Furnace at Fire Hall: Wayne Mayer questioned the reference to lowest
responsible bidder. He wondered whether noting the word "lowest" would open things up too much.
Because the bids were not bidding like items, Clint Herbst stated it was difficult to compare the bids.
Tom Scott said on anything that is under $10,000 the City could do a direct purchase and would not
be required to take the lowest responsible bidder. The Council reviewed the bids and what was
included with each with Gary Anderson, Chief Building official. Gary Anderson stated generally
furnace replacement would require ductwork and fittings and he described the existing system in
place at the fire hall. Quotes were also received to replace the existing air conditioner. The air
conditioner costs ranged from $2900-$3500. Gary Anderson noted that both the local heating
companies had been contacted and submitted quotes. Tom Perrault wanted verification that the quote
was still good even though one quote said it expired on November 30th. Gary Anderson confirmed he
had talked with the contractor and the price was still good.
WAYNE MAYER MOVED TO DIRECT STAFF TO REVIEW AND SELECT THE QUOTE FOR
THE FURNACE AND AIR CONDITIONING WORK FROM THE LOWEST RESPONSIBLE
BIDDER FOR A COST NOT TO EXCEED $5,000. BRIAN STUMPF SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY.
#51: Authorize WSB to assist in preparation of Storm Water Pollution Prevention Program:
Wayne Mayer stated that he wanted to make sure that the City Engineer was in control on this so that
he would be able to do the permit application and necessary reporting,
WAYNE MAYER MOVED TO AUTHORIZE THE CITY ENGINEER TO UTILIZE WSB'S
SERVICES TO PREPARE THE CITY'S SWPPP AND MS4 PERMIT APPLICATION. TOM
PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
#5K: Change Order #1 and Final Payment Xcel Ballfield Fencing City Project No. 2006-19C.
Glen Posusta pulled this item because he had heard that the fencing was not constructed according to
specifications and questioned why the contractor should receive the full amount of money when he
did not follow the contract. He felt the deduct should be more than the $964.35 being proposed since
the concrete work was a big portion of the contract. He added that at the time the bid was awarded,
the contractor indicated he would do the job even though he forgot to bid an item.
John Simola indicated that the contractor had omitted the mow strip on his bid proposal. The
contractor however did put the mow strip in at his own cost (approximately $5,000). The work that
was not done was that not all the posts were installed in concrete. John Simola felt that with the mow
strip in place to require the posts be put in concrete would be overkill but added it was part of the
specifications. A deduct had been negotiated with the contractor that covered the cost of the concrete
and the difference in installation costs between the two techniques for installing the posts. Glen
Posusta said that he was not concerned not so much about the quality of construction but the fact that
the contractor did not comply with specifications. Glen Posusta felt the contractor should be
complying with the specifications and he felt that the deduct should be more significant. He also
questioned whether $8/hour used in the deduct calculation was a realistic hourly wage. Wayne
Mayer stated that even though this is a minor contract, he didn't feel the specifications should be
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ignored. Glen Posusta wanted to know the difference in the amount between the low bidder and
second low bidder and suggested that amount be used for the deduct amount. He also suggested the
item be tabled until there is further information. John Simola explained the amount ofthe deduct is
the difference between the two methods of installing the posts.
GLEN POSUSTA MOVED TO TABLE THIS UNTIL THE NEXT MEETING WHEN THERE IS
MORE ACCURATE NUMBER FOR THE AMOUNT OF THE DEDUCT. TOM PERRAULT
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
#5L: Liquor Providersfor the Monticello Community Center for 2007: Wayne Mayer asked about
the state statute that require liquor providers to hold a retail license in the community or adjacent
communities. He questioned ifby adjacent the statute meant a community that physically abutted the
City of Monticello. MCC Director, Kitty Baltos stated that according to the Liquor Control
personnel, as long as it was considered a neighboring community it would be allowed even though it
wasn't physically adjacent to the City. Wayne Mayer asked that the City Attorney check on this
requirement and get something in writing from Liquor Control.
#5P: Extension of Interim Use Permit for open and outdoor sales in B-3 District Kim Holein from
Northwest Associated Consultants reviewed the request for an extension of an interim use permit for
open and outdoor sales for Denny Hecker. If approved the Interim Use Permit would be extended an
additional 30 months at which time there would either have to be a development plan for the site or
its use for outdoor sales would be abandoned. Wayne Mayer questioned whether the applicant had
submitted the $15,000 letter of credit as noted in the agenda item. Staff informed Council that the
letter of credit has been submitted.
WAYNE MAYER MOVED TO APPROVE THE APPLICATION FOR RENEWAL OF THE
EXISTING INTERIM USE PERMIT, SUBJECT TO ALL THE CONDITIONS OF THE
ORIGINAL INTERIM USE PERMIT BASED ON THE FINDING THAT THE PROPOSED USE
WILL NOT INTERFERE WITH THE CITY'S LONG RANGE OBJECTIVES OF
ENCOURAGING HIGH QUALITY DEVELOPMENT IN THE AREA DUE TO THE
TEMPORARY NATURE OF THE PERMIT AND SUBJECT TO THE APPLICANT PROVIDING
THE $15,000 LETTER OF CREDIT TO ASSURE UPDATING OF THE SITE AT THE END OF
THE 30 MONTH PERIOD TO MEET CODE, IF NECESSARY. GLEN POSUSTA SECONDED
THE MOTION. MOTION CARRIED UNANIMOUSLY.
7. Public Hearin2 on adoption of ordinance settin2 forth 2007 fee schedule.
The public hearing on an ordinance establishing City fees was set for this meeting to comply
with state statutes. The Council reviewed the proposed fee schedule. Brian Stumpf asked
about animal control as he understood that Monticello was the only city in the area that had
an animal control system. Rick Wolfsteller explained that the City does have a good
enforcement program and a nice facility in place. Although it generates revenue it is not a
main revenue producing facility. It was questioned whether the fees covered the costs
incurred and it was noted that the fees should have been increased earlier. The Council also
asked about getting a report on the operations of the animal shelter
Mayor Herbst opened the public hearing on the proposed fee increases for 2007. There was
no one present who spoke for or against the proposed 2007 fees. Mayor Herbst then closed
the public hearing.
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Tom Perrault asked about the temporary liquor license and its fee. The temporary licenses are
usually issued to non-profits such as the Lions Club or for church festivals. He also asked if
the bus price shown reflected the proposed increase in fares. It was also noted that the pawn
shop license holder is current on his fees.
Tom Perrault questioned the sanitary sewer rates for the industrial users. John Simola
eXplained that the industrial rate is made up of three factors: 1) clean water; 2) BOD
(biological oxygen demands) and 3)TSS (total suspended solids) and these are measured
separately for industrial users.
GLEN POSUST A MOVED TO ADOPT THE ORDINANCE ESTABLISHING THE 2007
CITY FEE SCHEDULE AS PROPOSED. WAYNE MAYER SECONDED THE
MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION
BECAUSE OF THE AMOUNT OF THE P ARK DEDICATION FEES.
11. Review area for 2007 Street Reconstruction Feasibility Report and consideration of
authorizine; feasibility study.
Because there were a number of residents in attendance at the meeting, this item was moved
up on the agenda.
Bret Weiss from WSB & Associates, Inc. made a presentation on the 2007 Core Street
Reconstruction Project. The City held an informational meeting for the residents in the area
proposed for reconstruction to see if there was an interest in moving forward with the
reconstruction project for the balance of Area #3 (River Street area). At the informational
meeting WSB did a short survey which was included with the Council's agenda packet. Forty
residents attended this informational meeting and another mailing was sent informing
residents that there was a meeting tonight to consider ordering the feasibility report but it was
not a public hearing.
Bret Weiss stated that most residents were in favor of reconstruction of the road but there
were questions on sidewalk, curb and gutter and the width of the street. Twenty-one residents
responded that they were in favor of sidewalk and ten were against it. Those who were
against the sidewalk were on River Street where it is proposed to locate the sidewalk. River
Street does have deep ditches that would make it more difficult to construct the road with curb
and gutter. The consulting engineer was recommending moving forward with a feasibility
report for the 2007 street reconstruction project. The study would look at the issue of
sidewalk and how it could happen with minimal tree removal and move forward with a
project proposal that would combine different approaches to handling the reconstruction
project.
Clint Herbst asked if there was a way to get a feel for what was going to be done without
doing major engineering work at this time.
Glen Posusta noted the Council had received a letter from the MPCA relating to runoff water
entering into Otter Creek. He also questioned the amount the City had budgeted and
whether there was sufficient funding to do this project. Bret Weiss stated the City does have
state aid funds that could be used in addition to the $547,000 budgeted for 2007. Bret Weiss
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felt they could to things that would still meet the requirements of the PCA. WSB would like
to try to find a solution to meet the needs of the residents and the requirements of the PCA.
Jeff Burns, 1517 West River Street stated he was glad to that the City plans to go ahead in
some form to pave the streets. His concern is that they try to reduce the street width. The
street is currently 24' and the new construction could widen it out to 32'. A wider street
means faster traffic. Bret Weiss noted at the informational meeting there was a lot of
discussion on the traffic speed and issues with the compost site.
Kurt Fasen, 110 Hillcrest Road stated hc was happy that the City was going to do somdhing.
If the City is going to proceed with the project they should do it right and do it in a manner so
that they don't regret it in 10 or 15 years. He added he didn't believe sidewalk on Hillcrest
would be necessary. It was noted that sidewalk is only being proposed on River Street.
Steve Andrews expressed his appreciation that the Council was revisiting this issue. He felt
more of the residents want to see the project move forward noting that the project would
increase the aesthetic value of the property and he too was also concerned about the faster
traffic.
Clint Herbst felt the concern of the previous year when this area was being considered was
that the residents in this area felt the roads were in good shape. Now he felt residents saw
how quickly the roads can deteriorate.
Bret Weiss also brought up the concern expressed by residents about a safe crossing of
County Road 75. Clint Herbst asked if that was something that WSB could come back with
some ideas on. Bret Weiss felt that with CSAH 75 being a county road they probably would
not let the City put flashers in the area.
BRIAN STUMPF MOVED TO AUTHORIZE WSB & ASSOCIATES, INC. TO
COMPLETE THE FEASIBILITY STUDY AND OTBAIN ADDITIONAL TOPOGRAPHIC
SURVEY FOR THE REMAINDER OF AREA 3 AND WEST RIVER STREET FROM
CSAH 75 TO 1-94. TOM PERRAULT SECONDED THE MOTION
Wayne Mayer felt that with the lack of funding proceeding with a feasibility study was
inappropriate. Rick Wolfsteller stated that $547,000 had been budgeted for 2007. Bret Weiss
stated it would be better to study the whole area and come back with options rather than to do
it in a piecemeal fashion. Clint Herbst stated there may be advantages in doing it as one
project rather than spreading it out too long.
MOTION CARRIED WITH GLEN POSUST A VOTING IN OPPOSITION.
Added Item: Since Bill Rambo from Denny Hecker auto was present, the Council brought up the
added agenda item relating to the parking lot lights at the auto dealership. Glen Posusta stated he had
received calls from a number of people wondering why all the lights have to be on all night long. Mr.
Rambo indicated the lights were for security but that he would talk his people to see if some
accommodation could be made.
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8. Review of status of water tower. Project No. 2004-30C and consideration of plan to
complete water tower in 2007.
John Simola reported that work on the tower was completed to a point on December 1,2006
where the tower could have been cleaned and filled but the cold weather made them change
their mind about trying to get this tower in operation this year.
Mark Rolfs, the project engineer from Bonestroo, Rosene, & Anderlik stated that the cleaning
right before filling the water tower has not been done. Mark Rolfs felt it was not in the staffs
best interest to fill it at this time. Mark Rolfs suggested suspending liquidated damages until
March 15, 2007 and reinstate them at a later time if at that time the tower is not up and on
line. With tower done, the Monte Tower could be taken down. Mark Rolfs was asking
Council direction on how to approach the contractor on this issue. The contractor did not
want to pay money for the logo that was wrong and come back to redo it. Mark Rolfs felt if
the City withheld money the contractor would come back to do the work. Liquidated
damages will be reinstated on March 15, 2007 if the tower is not in full operation. Brian
Stumpf said there is only one way he would consider suspending liquidate damages which is
if the work is not done by March 15,2007 the liquidated damages would be retroactive to
December. Brian Stumpf felt there was no reason why the project could not have been done
on time. Wayne Mayer agreed adding that the Council had to make many quick decisions
because of time constraints but the work is still not done. Mark Rolfs felt in March the
weather is generally above freezing most ofthe time so the work should be able to be
completed. Brian Stumpf felt the City should not be in this predicament.
BRIAN STUMPF MOVED TO AGREE TO SUSPEND THE LIQUIDATED DAMAGES
FROM DECEMBER 1, 2006 TO MARCH 15, 2007 FOR THE SUBSTANTIAL
COMPLETION OF THE TOWER AND TO SUSPEND LIQUIDATED DAMAGES FOR
FINAL COMPLETION UNTIL JUNE 1, 2007 AND IF THE TOWER IS NOT IN
OPERATION BY MARCH 15,2007 LIQUIDATED DAMAGES WOULD BE
RETROACTIVE TO DECEMBER 1, 2006. WAYNE MAYER SECONDED THE
MOTION.
Glen Posusta said with this hanging over the contractor's head what was to stop the contractor
from rushing the job in March and not do quality work. Brian Stumpf clarified that his
motion is that they are not suspending the $45,500 ofliquidated damages accrued thus far.
Matt Theisen stated when they clean tower he and his crew will be there to witness the
cleaning. Torn Perrault asked if the logo correction was part of his motion.
BRIAN STUMPF AMENDED HIS MOTION TO STATE THAT THEY WOULD STILL
BE DEDUCTING $45,500 FOR THE EXISTING LIQUIDATED DAMAGES AND $22,500
FOR THE LOGO SIZE CORRECTION. WAYNE MAYER SECONDED THE
AMENDED MOTION. MOTION CARRIED UNANIMOUSLY.
Added Item:
Roxanne Baxula, 1306 Prairie Creek Lane state she has a home business and that she is excited about
having a choice about getting high speed internet access. She thanked the Council for their support
of this project and encouraged them to move forward.
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9. Review of plans and specifications and review of cost estimates for biosolids dryer and
consideration of advertisement for bids. City Proiect No. 2005H37C.
Bob Brown from Bolton Menk made a presentation to the Council regarding the plans and
specifications for the biosolids dryer. He noted that the plans are about 98% complete. They
feel they need to get the process going so they could advertise for bids. The time schedule has
changed because of the permitting process. The PCA requires renewal of the City's permit
for another 5 years. Approval of the biosolids dryer plans and specifications is contingent
upon PCA approval of the permit.
Bob Brown explained the work that had been done on the project and gave a presentation
showing the proposed building site plan and layout and reviewed with the Council the
updated construction costs. He also addressed the mitigation of the wetland.
The designs were done to accommodate the two manufacturers that they were looking at. All
major items will be in the building with nothing outside or on the roof. In his review Bob
Brown noted the layout for the Kruger dryer was about 3000 feet larger because the
equipment was larger. The vehicle storage area which accommodates three vehicles was also
reviewed.
Increase in costs were attributed to the addition of the air scrubber and construction cost
increase of 8%. It is proposed to be award the bids on March 12, 2007.
Clint Herbst asked about the bagging the dried biosolids. John Simola said they would be
using the bags for storing the biosolids when they are not in the fertilizer season which is
spring and fall. The current renter of the farm has indicated a willingness to take the excess
biosolids material from the City. The bags when filled would be 1500 pounds and stand 6'
tall. A forklift would be needed for handling the bags and this equipment was budgeted for in
the 2007 budget.
Clint Herbst questioned ifin their consideration of the unit did they look at longevity, cost and
maintenance/ repair costs. Bob Brown said these factors were covered in the evaluation.
Clint Herbst asked about the Krueger system which was installed at Mystic Lake. Bob
Brown indicated that initially there had been some problems not with its operation but with
the equipment. That unit was removed and a replacement unit installed which thus far has
been working fine. Glen Posusta stated he would like to see how the project is working at
Mystic Lake. Glen Posusta asked ifthe manufacturers will provide a warranty on the process.
Bob Brown said there is a two year warranty on everything and a five year warranty on the
drying process. John Simola added that they are working with Kim Kozar on legal aspects in
drafting the warranty. Wayne Mayer stated that while he didn't want to hold this project up
he would like to see what Mystic Lake operating records are. The committee did have an
opportunity to see Mystic Lakes system in operation. The Mystic Lake system would have
to be up and running for at least a year in order to get proper information on its operation
because Mystic Lake does not generate a lots of solids which means that the dryer may be
operating only once a month.
Brian Stumpf expressed his thanks to the members of the Committee who had worked on this
project and got it to this point.
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BRIAN STUMPF MOVED TO APPROVE THE PLANS AND SPECIFICATIONS FOR
THE BIOSOLIDS DRYER AND AUTHORIZE THE ADVERTISEMENTS FOR BIDS
WITH THE REVISED DATE OF FEBRUARY 28, 2007 FOR THE BIDS TO BE
RECIVED. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY.
10. Consideration of annual cost of livin!! adiustment and consideration of adiustment to
pay scale for 2007 for the purpose of maintainiDlZ competitive Dav structures.
Jeff O'Neill presented information on the cost of living adjustment that other communities
were considering and provided information on the CPI (Consumer Price Index). Jeff O'Neill
also discussed planning needed to handle the City's growing workload and the replacement of
staff because of retirement. Some of the positions included Finance Director, Public Works
Director, Economic Development Director and Deputy City Clerk adding that there may be
other positions opening up in the next 4-5 years. He stated in reviewing the job descriptions
of the employees, there are certain areas that should be looked at such as, consolidating the
work for publications such as brochures, communications and the website; the possible need
for a human resource person to handle keeping job descriptions updated and pay equity
reporting and establishing a person to handle purchasing.
Looking particularly at the cost of living increases proposed by other cities, the range was
from 2%-4%. The Federal Reserve CPI was projected at 3.3%. The City wage scale on the
average for each position was 7.5% lower than that of other communities that were
compared. In 2005 the Council gave city employees a 3% increase in 2006 to catch up with
the wages of comparable cities and a 3.5% cost ofliving increase making a total increase of
6.5%. The City is still 4.5% lower than adjacent communities as far as the wage scale.
Overall pay scale adjustment is important so that the City remains competitive. It was
suggested adding a new step to the pay scale. This would be relatively inexpensive since it
applies only to those at the step and would not be applied across the board.
Wayne Mayer stated he would like to see in the future actual rates rather than percentage of
increase used as the justification. What he would like to see is the impact of a 1 % increase as
far as wages, withholding and other benefits.
Glen Posusta noted that one of the discussions in the Personnel Committee was adding
another step to the pay scale. He felt this would add incentive for employees. Glen Posusta
felt COLA increases reward those who don't work as hard in the same manner as those who
do work hard. He didn't feel giving people more money made them better employees or more
productive employees. He felt automatic pay increases were a vicious cycle that takes place
in the government sector. He stated the increase approved in 2005 and the proposed
increase submitted in 2006 was almost 10%. He didn't believe people in the private sector
get this type of increase. In addition government employees were not subject to layoffs like
the private sector is. He also felt the notion that it is difficult to replace good employees is a
fallacy. He said government jobs are secure jobs. He added in 2005 staff wanted 12% but the
Council settled for 6%. He felt no matter what staff gets it will never be enough. Glen
Posusta also felt that increases should not go by percentage but actual number.
10
12
Council Minutes: 12/11/06
Brian Stumpf asked where the step process came from. Rick Wolfsteller said when the
comparable worth study was done that method was adopted and it is something used by most
cities. Currently the pay scale has seven steps and takes approximately 9 years to get to step
#7. Rick W olfsteller said the pay system has not kept up with the market. Wayne Mayer
asked if any increase given would affect part-time employees. Rick W olfsteller replied it
would depend on whether it was permanent part-time or not. Wayne Mayer asked if a step
increase was automatic. He was told that if an individual is not performing up to standards
they do not get an increase. Wayne Mayer said by adding a step you are placing in the City
Administrator's hand the ability to reward those who are doing an outstanding job.
There was also discussion on the City's ability to attract employees who would be willing to
start at step #1. Step #1 is meant to be the starting point for an individual who meets the
minimum job requirements. Additional work experience or education may justify starting an
individual at a higher step. Rick Wolfsteller indicated that it had been some time since
anyone had been hired at Step #1.
Glen Posusta said the City needs to look at giving employees incentive to work hard. The
Council discussed addressing this issue at a special meeting in December. The Council was
not able to come up with a date where a quorum would be present.
BRIAN STUMPF MOVED TO WAIT UNTIL THE FIRST REGULAR MEETING IN
JANUARY TO ACT ON THE COST OF LIVING ADJUSTMENT AND PAY SCALE
ADJUSTMENT. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED
WITH TOM PERRAULT AND GLEN POSUSTA VOTING IN OPPOSITION.
11. Review area for 2007 Street Reconstruction Feasibilitv Report and consideration of
authorizine: feasibility study.
This was moved up on the agenda.
12. Consideration of award of contract for demolition of Monte Club structure.
Because of the amount of damage by vandalism and the safety hazard the structure poses,
plans and specifications for the demolition of the septic system and the structure on the Monte
Club site were prepared. The City also had an asbestos survey done by a consultant at a cost
of $550. This has to be done before the building can be removed. The bids ranged from
$48,400 to $24,678. There will also be expense for the removal of the hazardous material.
Since Veit specializes in removal of hazardous material the City obtained a quote from them
that was in the amount of $4,825. Wayne Mayer asked is there was anything of value in the
building that could be reclaimed. John Simola said he was not aware of anything. Tom
Perrault asked about the well. John Simola indicated it was 300 feet deep and could possibly
be used for irrigation. He stated the well would not be left in an abandoned state but taking
care of that would be done under another contract.
WAYNE MAYER MOVED TO AWARD THE DEMOLITION PROJECT TO VEIT &
COMP ANY OF ROGERS, MN IN THE AMOUNT OF $24,678 AND TO AUTHORIZE
THE PUBLIC WORKS DIRECTOR AND CHIEF BUILDING OFFICIAL TO WORK
WITH VEIT & COMPANY OR ANOTHER CONTRACTOR TO HAVE THE ASBESTOS
ABATED AT COST NOT TO EXCEED $4,825 PRIOR TO DEMOLITION OF THE
11
13.
Council Minutes: 12/11/06
STRUCTURE. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY.
Added Items:
Task Force Membersfor Comp Plan Update: Brian Stumpf and Tom Perrault agreed to serve with
either Clint Herbst or Glen Posusta being the third member and Wayne Mayer serving as alternate.
Xcel Energy: The revenue stabilization agreement will be covered at the first meeting in January.
Also Jolm Simola, Rick Wolfsteller and Joel Janmik are working on the franchise agreement.
YMCA: An offer was submitted to the YMCA so the negotiation process has begun.
Kjellberg: The Council discussed the structure that was built on the property that is in violation of the
building code and zoning ordinance. Tom Scott, City Attorney is prosecuting this as two counts of a
misdemeanor. He is in the process of preparing a complaint.
Deputy Registrar: Some of thc local dealerships have withdrawn their business from the Deputy
Registrar and are getting their title work done through another entity. Wayne Mayer stated this was a
big issue and he would like to see some cost figures on the impact of the loss of this business. He
also asked ifthere was procedure in place to inform the Council on these issues noting this was the
first time he heard about it. City Administrator, Jeff O'Neill indicated they would get the information
requested.
Fiber Optics: Wayne Mayer updated the Council. The Council had authorized proceeding with the
project and discussed going with a bond issue based on revenue and not tax levy. The Fiber Optics
Task Force had applied to the Blandin Foundation and received a grant for general education on
broadband in the amount of $15,000 which the City has to match.
GLEN POSUSTA MOVED TO AUTHORIZE THE FIBER OPTIC TASK FORCE TO MOVE
FORW ARD WITH COMPLETION OF PRELIMINARY WORK TO PREP ARE AN
ENGINEERING AND DESIGN RFP FOR RELEASE EARLY IN 2007; SPECIFY
REQUIREMENTS FOR REVENUE BONDING, CLARIFY OPTIONS FOR VOICE SERVICES
AND SUPPLY OF VIDEO CONTENT AND CLARIFY NEXT STEPS FOR THE CITY AS A
UTILITY OPERATION. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY.
13. Approve payment of bills for December.
Glen Posusta questioned an invoice regarding the rental of a chocolate fountain. It was noted
that this was used in the liquor store's wine tasting event. Bruce Westby informed the
Council that the payment for work done on the Linn Street Drainage project was included in
the bills. There was also a question on the bill for the safety training.
GLEN POSUST A MOVED TO APPROVE THE BILLS. BRIAN STUMPF SECONDED
THE MOTION. MOTION CARRIED UNANIMOUS.
12
14
Council Minutes: 12/11/06
Other:
Brian Stumpf stated that while he and Glen Posusta didn't see eye to eye on a number of items he did
appreciate the time and effort Glen Posusta spent as a member of the Council over the past four
years. Clint Herbst also expressed his appreciation for the service Glen Posusta provided for the
City
Glen Posusta noted that he and Clint Herbst had spent the better portion of the day in court regarding
legal issues relating to the campaign conducted by Susie Wojchouski.
14. Adiourn.
The meeting was adjourned at 10 p.m.
Recording Secretary
13
14A
MINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Thursday, December 21,2006 - 5:30 p.m.
Members Present:
Clint Herbst, Wayne Mayer, Tom Perrault, Glen Posusta and Brian Stumpf.
Members Absent:
Nonc
1. Call to Order.
Mayor Herbst called the meeting to order at 5:30 p.m. and declared a quorum present.
2. Consideration of approvinl! charitable l!amblinl! license - Monticello Youth Hockey
Association.
Wayne Mayer had questions on the financial report that was submitted with the license
renewal request. The reporting requirements ask that a listing of donations made by the
organization be included with the financial report. The contribution portion of the report
that was submitted appeared to be more of a listing of bills paid by the association rather
than donations. The Council expressed their displeasure that there was no representative
from the hockey association present at the meeting since the special meeting was called for
the purpose of considering the license renewal so that there would be no disruption in the
charitable gambling operations conducted by thc hockey association. Wayne Mayer
suggested because the City had incurred costs in holding the special meeting that maybe the
hockey association should be asked to reimburse at least a portion of the cost. The Council
noted that except for this item, they would not have a held a special meeting. Although the
Council felt the financial information submitted with the report was insufficient, they stated
delaying action on the gambling license would hurt Hawk's Sports Bar as well as the hockey
association. They did feel that the hockey association needs to submit a detailed report on
the recipients of their donations and the amounts they received.
WAYNE MAYER MOVED TO ADOPT A RESOLUTION AUTHORIZING THE STATE
GAMBLING CONTROL BOARD TO RENEW THE CHARITABLE GAMBLING
LICENSE FOR THE MONTICELLO YOUTH HOCKEY ASSOCIATION FOR
CHARITABLE GAMBLING ACTIVITIES AT HAWKS SPORTS BAR AND GRILL.
TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
3. Approval of bills.
Brian Stumpf asked what the training at the University of Minnesota was for. He also asked
about the contribution to the YMCA Detached Worker Program. Finance Director, Rick
Wolfstellcr explained that it was the monthly payment for the $5,460 annual contribution of
the City to the YMCA.
BRIAN STUMPF MOVED TO APPROVE PAYMENT OF THE BILLS. WAYNE
MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
The item relating to cost oflivinglwage increases for 2007 was tabled to later on the agenda.
15
,~:{:.~:"
6. Consideration of appointments to Comp Plan Update Task Force.
The Council earlier in the year had established that three members of the City Council
would serve on the Task Force for the Comprehensive Plan Update and three residents of the
City would also be appointed.
BRIAN STUMPF MOVED TO APPOINT WAYNE MAYER, BRIAN STUMPF AND
TOM PERRAULT AS COUNCIL REPRESENTATIVES TO THE COMP PLAN TASK
FORCE AND GENE EMANUEL, RON BROEKEMEIR AND GLEN POSUST A AS
CITIZEN REPRESENTATIVES TO THE TASK FORCE. WAYNE MAYER
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
5. Deputy Ree:istrar Operations.
The Council discussed the recent loss of title work from local dealers and how that impacts
the Deputy Registrar operations. In an effort to regain the dealers business a letter had been
prepared by staff outlining services the Deputy Registrar's office would perform for the
dealers. The letter contained three provisions that covered training, providing an employee
to the dealers to do title work under certain circumstances and providing courier services.
The letter had not been sent as there were some issues raised by Wayne Mayer in his review
of the letter.
In discussing the provisions of the letter, Wayne Mayer stated that NADA (National Auto
Dealers Association) provides title training with the blessing ofthe state which includes a
title certification test. His primary concern with the letter was with the provision that the
City would provide an employee temporarily to these dealers to do their title work in certain
circumstances. Wayne Mayer did not feel comfortable with the City authorizing a city
employee to work in the private sector and cited similarities with the situation with the
fonner building official that is presently in litigation. Clint Herbst responded that in this
case the employee would not be making any extra money by doing the work as it was his
understanding that this employee would be paid by the City and would not receive any
compensation from the dealership.
Wayne Mayer felt the language about extenuating circumstances was too vague and as
written this provision could have unintended impact on the City. He asked if the document
had been reviewed by the City Attorney and was informed that it had not.
Wayne Mayer also felt that with this provision Deputy Registrar staff would end up with the
title problems. Ann Johnson from the Deputy Registrar's office stated that at the present
time their staff handles many of the title problems for the dealers already. Wayne Mayer
also questioned the difficulty in keeping the Deputy Registrar's office adequately staff when
on Sh01i notice they may be required to fill in for title staff at the dealerships. The concern
is that the dealership is looking for somebody to physically take the place of their absent
employee and do all the work of that position. Kim Barnes stated the Deputy Registrar staff
does not want to be working in the dealership's office but they would be willing, if the
dealerships were agreeable, to pick up the folders and the title paperwork and do the work at
the Deputy Registrar's office. Wayne Mayer did not feel the letter as written was tight
enough and felt it should be reviewed by legal counsel.
16
Deputy Registrar staff explained that although the letter was addressed specifically to the
Denny Hecker dealership, if the City proceeds with this service it would apply to all
dealerships which currently includes dealerships in Rogers and Buffalo. There was some
discussion on whether to provide this service only if the dealership requested it or make all
the dealerships aware of this service. Glen Posusta felt it would be better customer service
to let all the dealerships know of this service. He felt some dealers would be upset if they
weren't notified of this option. Wayne Mayer felt if the proposed services go forward they
should be part ofthe standard operating procedures for the Deputy Registrar's office.
Glen Posusta questioned why the supervisor for Deputy Registrar was not present at this
meeting and ielt her absence raised a red flag. He also questHmed if Deputy Itegistrar
provides courier service at what point would they need a city vehicle for their use. It was
pointed out that if the Deputy Registrar provides courier service they may need to be bonded
since they would be handling titles and money. Wayne Mayer felt the bonding should be
taken care of before the courier service is initiated.
Wayne Mayer reiterated his concern about liability to the City if this service is provided.
Clint Herbst suggested that Deputy Registrar staff draft a letter outlining the services
provided and that this draft be reviewed by the City Attorney. Once the letter is approved it
can then be sent to the dealers.
4. Consideration of cost of livinl!lwal!e increases for 2007.
Clint Herbst asked if there were any questions on the information presented. Glen Posusta
asked about the years the infonnation on the graph represented and was informed it covered
the years 2001-2006. Brian Stumpf asked about the extra step and where the 104.5% came
from. Rick Wolfsteller responded that the new step would be 100% of the previous step
plus 4.5%. Wayne Mayer would rather see another step addcd in lieu of a cost of living
increase or any other type of increase. Rick W olfstellcr indicated that there would be
employees who are at step #6 and would not get any increase until they have worked three
years and reached step #7. Brian Stumpf felt the employees needed something for today like
a cost ofliving adjustment.
Clint Herbst asked ifit was Wayne Mayer's intent that the step replace the cost of living
adjustment. Wayne Mayer stated he would like to see the City's payroll stay at about
$3,000,000. Presently the payroll is $2,900,000. Clint Herbst responded that since there are
a number of elllployees who alC already at the top step and could move to the newly created
step it could jump the payroll to the $3,000,000 level. Wayne Mayer stated that the
$3,000,000 payroll is 46% of the current tax levy of$6,500,000 and he does not want to see
it go to 50% of the tax levy. Brian Stumpf didn't feel employees should be penalized
becausc thc City cut the levy.
Glen Posusta said many of the people who interview for government jobs are coming
because the jobs provide security and employees are willing to sacrifice the higher salary for
job security. Layoffs and cutbacks are relatively rare in government but not so for the
privatc sector. Clint Herbst said he is not worried so much about losing employees but when
the City brings new people on, the City is bringing them in at risk to the comparable worth
system because of salaries offered in order to attract people to the position.
17
Clint Herbst felt the City should try to close the gap of 7 'i'2% between the City and other
communities that was brought up in the salary discussions of a year ago. For 2006 the
Council made a 3% salary adjustment plus a 3 'i'2% cost ofliving increase. He felt the City
should strive to reach that 7 'i'2% figure over the next year or two and not tie it to the cost of
living.
There was discussion on how long it takes to reach the top step. It was pointed out that
employees who change positions within the City are set back as far as the length of time it
takes them to reach the top step. There was also discussion of the financial impact for
employees who go from being hourly with overtime to being in a supervisory position that is
overtime exempt.
Wayne Mayer requested verification that if a cost of living increase is granted everyone
would receive that increase and if a step increase is granted everyone would receive that. He
wants to reward those who deserve it. Rick Wolfsteller responded that the cost ofliving
increase would apply to everyone. If you wanted to reward an employee you could move
them up a step. Wayne Mayer stated it boggles the mind that there is no procedure in place
to reward those who do a good job. Not getting a good performance review would keep an
employee from moving up a step and a good review could move them up a step or more. At
the present time there is about 4.5% difference between the steps. If an employee is not at
the top step it is possible that they could receive both a step increase and a cost of living
mcrease.
Tom Perrault asked about the union employees. There are approximately 15 union
employees all in the Public Works Department. The union contract expires in April 2007.
Wayne Mayer asked if whatever percentage given for wage adjustments is given to the
union employees. Rick W olfsteller stated since the contract is up in April that is something
that could be negotiated. Glen Posusta said he was of the understanding that under the
current contract if other employees were given 0% increase, the union employees would still
get a 1 'i'2% increase. Rick W olfsteller indicated that was part of the current contract but
could be an item to be negotiated with the new union contract.
GLEN POSUST A MOVED TO APPROVE A I % COST OF LIVING ADJUSTMENT
AND 1 % STEP INCREASE FOR 2007 AND ADD AN EIGHTH STEP WHICH WOULD
BE 104.5% OF STEP SEVEN. WAYNE MAYER SECONDED THE MOTION.
In additional discussion Cathy Shuman questioned whether step eight would be subject to
the I % cost ofliving adjustment and the 1 % step adjustment or would be a straight 104.5%
of step seven. There was discussion on longevity being rewarded. Glen Posusta said this is
not automatically tied to years of service but to the supervisor's performance review ofthe
individual. Rick Wolfsteller asked for clarification of when an employee is eligible for step
#8. Is it three years which is the time frame to move from step #6 to step #17 The Council
felt any step change should take place on the employee's anniversary date and would be
based on the supervisor's review.
Clint Herbst expressed some concern that the general public would not understand the added
step and the cost ofliving increase. Wayne Mayer felt by adding the additional step the
City will retain its key employees. Brian Stumpf asked how close the step increase would
bring the City wages in comparison to other communities. Rick W olfsteller indicated that at
18
the top step (step #8) the City would still be 2% below the other communities. He noted that
the amount of the gap may be greater if other communities gave cost ofliving increases and
the City did not.
Rick W olfsteller asked that the Council clarify for an employee currently at the top step
(step #7) when would they be eligible for the next step? Clint Herbst suggested having the
Personnel Committee look at this. Wayne Mayer stated that at the time an individual is
hired he agrees to work for a specified wage and there should be no step adjustment until the
anniversary date of his hire. Rick Wolfsteller asked ifit takes three years to go from step 6
to step 7 will it take three years to go from step 7 to step 8. Clint Herbst stated by the adding
the step the Council was trying to reward excellence and step increases were not
automatically given.
UPON VOTE BEING TAKEN, MOTION CARRIED UNANIMOUSLY.
7. Adjourn.
The special meeting adjourned at 7:10 p.m.
Recording Secretary
19
Council Agenda: 1/8/07
5A. Consideration of approvin2 new hires and departures for MCC and LiQuor.
(RW)
A. REFERENCE AND BACKGROUND:
The Council is asked to ratify the hiring and departures of employees that have
occurred recently at the MCC and liquor store. It is recommended that the
Council officially ratify the hiring/departure of all new employees including part-
time and seasonal workers.
B. ALTERNATIVE ACTIONS:
1. Ratify the hiring/departures of the employees as identified on the attached
list.
C. SUPPORTING DATA:
List of new employees.
20
NEW EMPLOYEES
Name Title Department Hire Date Class
Lantto, Lilia Lead Lifeguard MCC 12/5/2006 PT
Anderson, Katrina Lifeguard MCC 11/28/06 PT
Jones. Abigail Lifeguard MCC 11/27/06 PT
TERMINATING EMPLOYEES
Name
Freiberg, Dan
Reason
Department
MCC
Last Day
11/27/06 PT
Class
Voluntary
employee councillist.xls: 12/12/2006
21
NEW EMPLOYEES
Name Title Department Hire Date Class
Michael Bradshaw Slide Attendant MCC 11/30/2006 PT
Aaron Zierdt Life Guard MCC 12/12/06 PT
Elisabeth Palmquist Life Guard MCC 12/18/06 PT
Barry Voight Planning Comm P&Z 11/3/06 PT
TERMINATING EMPLOYEES
Name Reason Department Last Day Class
Sarah Ewert voluntary MCC 9/1/06 PT
Keith Johnson involuntary Liquor 12/8/06 PT
Alyssa Gueldner voluntary MCC 12/1/06 PT
employee councillist.xls: 12/27/2006
22
Council Agenda: 1/8/07
5B. Consideration of approval of wine/strom! beer license for Cornerstone Cafe and Caterinl!.
(JO)
A. REFERENCE AND BACKGROUND:
At the December 11, 2006 the Council approved the application for a wine/3.2 beer license for
Cornerstone Cafe and Catering. After the Council meeting had adjourned, the applicant
indicated to staff that they had intended to request a wine/strong beer license. Since the license
approval was on the consent agenda and the applicant did not bring the change up until after the
meeting had adjourned, the request for a wine/strong beer license is being submitted for
consideration at this meeting. The applicant has supplied an amended certificate of insurance
to reflect that any Council approval would not be until the January 8,2007 meeting.
B. ALTERNATIVE ACTIONS:
1. Approve the wine/strong beer license for Cornerstone Cafe and Catering contingent
upon payment of appropriate license fee.
2. Do not approve wine/strong beer license.
C. ST AFF RECOMMENDATION:
Since the clarification on the type of wine /beer license being requested was not brought up until
after the December 11 th meeting had adjourned, it was necessary to bring this item back to
Council. The applicant has submitted the necessary paperwork and certificate of insurance
which was amended to reflect the change in approval dates. It is the recommendation of the
City Administrator that request for a wine/strong beer license for Cornerstone Cafe and
Catering be approved.
D. SUPPORTING DATA:
Application
23
(rM.
.~
Minnesota Department of Public Safety
ALCOHOL AND GAMBLING ENFORCEMENT DIVISION
444 Cedar St., Suite 133, St. Paul, MN 5510 1-5133
(651) 201-7507 FAX (651) 297-5259 TTY (651) 282-6555
WWW.DPS.STATE.MN.US
APPLlCA TION FOR COUNTY/CITY ON-SALE WINE LICENSE
(Not to exceed 14% of alcohol by volume)
x~g\:~~fi~
~~. :~~~c.~:"",_,;"'"
.. -~"'.#-
. -
-. .f, " .'
-....-.~{.i~~l.:..(
EVERY QUESTION MUST BE ANSWERED. If a corporation, an officer shall execute this application. If a partnership, LLC, a paliner
shall execute this application. I . I . (: 'J
Workers compensation insurance company. Name .1nTf:Jrl-rl.j 'Iv\SQrMtt policy# ~{~^Of~ t ()O,,y,()
LICENSEE'S MN SALES & USE TAX ID # old to&;. To apply for MN Sales Tax # ?all (651) 296-6181
LICENSEE'S FEDERAL TAX ID# 0-- 0000
Ap licants Name (Business, Partnership, Corporation)
) ,..., (\
~
Trade Name or DBA
CJ).
Business Phone
53& (703) J<is- 38 g 8
Applicant's Home Phone
City
County
W(\' M
State
Zip Code
6631.0 L
M0,
o
Is this application
XNew or a l~ Transfer
If a transfer, give name of former owncr
License period
From
To
If a
DOB
--It
Address
5c.uAAe Qg,
Address
Ds'vp
Address
Social Security # DOB
f
, J
Isocial Security-# ~J Dm~
Social Security #
DOB
CORPORATIONS
Is corporation authorized to do business in Minnesota?
Yes [J No
If a subsidiary of another corporation, give name and address of parent corporation
ho l() 5 t-f
LuJ(e {h 10 $53
Has the building owner any connection, direct or indirect,
with the applicant? i Yes ] No
Hom's food will be available
Describe thc premise~bc licensed
f' s-\- c:t IJ.J Q J\J
()J\d (V~e.r i ~3
If the restaurant is in conjunction with another business (rcs0l1 etc.), describe business
~IIA
NO LICENSE WILL BE APPROVED OR RELEASED UNTIL THE $20 RETAILER ID CARD FEE IS RECEIVED BY AGED
I
'j
24
':.:' Yes ;zNO l.
i:-- Yes ;ko 2.
:] Yes XNO 3.
eYes ~o 4.
rWes *0 5.
i:JYes I~O 6.
OTHER INFORMATION
Has the applicant or associates been granted an on-sale non-intoxicating malt beverage (3.2) andlor a "set-up"
license in conjunction with this wine license?
Is the applicant or any of the associates in this application a member of the county board or the city council,
which will issue this license? If yes, in what capacity? . (If the applicant is
the spouse of a member of the governing body, or another family relationship exists, the member shall not vote
on this application.)
During the past license year, has a summons been issued under the liquor civil liability (Dram Shop) (M.S.
340A.802). If yes, attach a copy of the summons.
Has applicant, partners, officers or employees ever had any liquor law violations in Minnesota or elsewhere.
[f so, give names, dates, violations and final outcome.
Does any person other than the applicants, have any right, title or interest in the furniture, fixtures or equipment
in the licensed premiscs? [fyes, give names and details.
Have the applicants any interests, directly or indirectly, in any other liquor establishments in Minnesota? If yes,
give name and address of the establishment.
[ CERTIFY THAT I HAVE READ THE ABOVE QUESTIONS AND THA
BEST OF MY OWN KNOWLEDGE
The licensee must have one of the following: (Check one)
Y, A. Liquor Liability Insurance (Dram Shop) $50,000 per person; $100,000 more than one person; $10,000 property destlUction;
{, $50,000 and $100,000 for loss of means of support. ATTACH "CERTIFICATE OF INSURANCE" TO THIS FORM.
:-, B. A Surety bond from a surety company with minimum coverage as specified above in A.
, I C. A certificate from the State Treasurer that the Licensee has deposited with the State, Trust Funds having a market value of
$100,000 or $100,000 in cash or securities.
IF LICENSE IS ISSUED BY THE COUNTY BOARD, REPORT OF COUNTY ATTORNEY
l::Yes ,No
oJ.!
\JlU
[fno, state reason.
I certify that to the best of my knowledge the applicants named above are eligible to be licensed.
This is to certify that thc applicant and the associates, named herein have not been convicted within the past five years for any violation of
Laws oftl e Sta e fMinnesota t:1~icipa[ or County Ordinances relating to Intoxicating Liquor, except as follows: .___._..______
'/k-
- _"n_ -....-.-..-- (.;va- d c;,7 , ~,,~ .-Z~_.
Department and Title
Signature County Attorney
lJ!t~(
\~ I"
.. ./,
~.- ~
- ./
gnature
County
Date
REPORT BY POLICE OR SHERIFF'S DEPARTMENT
Date
IMPORT ANT NOTICE
ALL RETAIL LIQUOR LICENSEES MUST HAVE A CURRENT FEDERAL SPECIAL OCCUPATIONAL STAMP. FOR
INFORMATION REGARDINCl OBTAINING THIS STAMP, CONTACT THE BUREAU OF ALCOHOL TOBACCO AND F[REARMS
AT 65 [ 726-0220 (PS9114-2006
NOTICE
A $30.00 service charge will be added to all dishonored checks. You may also be subjected to a civil penalty of $100.00 or 100% of the value of the check,
whichever is greatcr, plus interest aud attorney fees.
25
ACORQ. CERTIFICATE OF LIABILITY INSURANCE ---------T DATE (MMIDDIYYYY)
12/28/2006
.RODUC.R (952)831-1928 FAX (952)831-0572 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
Advance Insurance Agency, Inc. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
5241 Viking Drive Ste 200 HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
Edi na, MN S54lS
INSURERS AFFORDING COVERAGE NAIC#
_._'.'_M,..' .-- .~. ,^, '. ...-----.,., 14303
INSURED INSURER A:. Integrity Mutual Ins Co
Cornerstone Cafe and Del; INSURER 6: Scottsdale
PO Box 535 INSURER c:
Mont; ce 11 0, MN 55362 INSURER D:
INSURER 1:;
THE POLICIES OF INSURANCE L1STEO SElOW HAVE SEEN ISSUED TO THE INSURED NAMED AllOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMeNT WITH RESPECT TO WHICH THIS CERTIFICATE MAY SE ISSUED OR
MAY PERTAIN. THI: INSURANC!: AFFORDED SY THE POLICIES DESCRIBED HEREIN IS SUIlJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE liMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
Ir1: ~'l.'I:; ..- POUGY EFFECTIVE
TYPE OF INsuAANCE PO",CY NUMgeR POl-leV I:;'XPIRA nON LIMITS
G~NfAAL. UABllITY CCPI21532902 12/29/2006 12/29/2007 EACH OCCURRENCE S 500,000
X COMMeRCIAl. Gf;NERAl UABlltT'f OAMAGE TO RE~~~nt'A\ S 100,000
= :=J CLAIMS MADe [K] OCCUR MEO EXP (Anyone p8f$On) $ 5,000
A PE:r<SONAL & N:)V INJURY $ 500,000
- _~,_r~~.~.
GENERAL AGGREGATE S 1,000,000
-----.
GEN'LAGGRE""TE llMrT APPL'ES peR PRODUCTS - COMP/QP AGO $ 1 000,000
Xl.ollCY n ~m n LOC
AUTOMOBIL~ LIABILITY CAI21SB002 12/29/2006 12/29/2007 COMPINE::D SINGLE. L1Mli
- S
ANY AUTO (EaBC:eldel1l) 300,000
-
ALL OWNED AUTOS aODIL Y INJURY
X S
SCHEDULED AUTOS (Per !)Orson)
A -
HI~EO A\Jl'OS aOOll Y INJURY
-- S
NON-OWNEO AlJ'iOS (Per .8~cldent)
--
PRoPERTY DAMAGE S
(Per sccidl!lnt)
'_M'_'_~~_' ..._--."---
GARAGE lIAB1UlY AlIrO ONLY. EA ACCIO!:.N'r $
==1 ANY AUTO OTHER THAN cAACC $
AUTO ONLY: AGG $
--
EXCESSIUMaR~lLA UAe,",yy EACH OCCURRENCe $
:=J OCCUR D CtAIMS MADE AGCHeGATe $
S
=1 DEDUCTIBLE .
RETENTION $ $
~,~"~._, we STATU- IO~'
WORKERS COMPENSATlON AND WCP121532802 12/29/2006 12/29/2007
EMPLOYERS' LIABILITY __~ 10_CL.QQQ
A ANY PROPR,ETORIPARTNERIt'XECUTIVE ~~~-::EI9_~___ s
._-"
OFFICERJl.tEMBER EXCLUDED? U. OISEASE . EA EMPLoyee s ..'!-.QO_..QQQ
II yes, describe ufide( --.------."..-- -_. '..'.'."
SPECIAL PROVISIONS below E,L. prS~SE - POLICY LIMIT S 500 000
OTHER PENDING 01/09/2007 06/30/2007 100,000 each occurrenc;e
B Liqour Liability 300,000 aggregate
Pending Underwriting Approval
OE:SCRIPTlON OF Op"EnAI1ON$ I lOCATIONS I VEIIICl.t$ J ~XCLUSK>NS ADDED BY E;t.lDORSEMEN1, SPECIAL PROVISIONS
DER ^
SUOULO ANY OF THE ABOVE OESCRlBI![J POl.ICII;S 61: CANCELL.ED E1E.FORE THE
~X~~Al'ON OATE THEREOF, THE ISSUING INSURER WI!..1.. ENOEAvOR TO MAll
~ DAYS WRITTEN NOTICE TO THE ceRTIFICATE HOLOI::R NA.M~D TO 'THE LEiFT,
aUl I="AlL.URE 10 MAlL SUCH NOTICE 5HAL..L IMPOSE No oallGA'tIoN OR llAalLlTY
O~ ANY KIND UPON THE IN5URf!l:R,"5 AQENTS Oft RI!PRI!:5E:NTAT/VE'S.
For information only AUTHORiZeD R~PR.S.NTATlV.
Erik Johnson
ACORD 25 (2001/0B)
@ACORDCORPORATION 1988
26
Council Agenda: 1/8/07
5C. Consideration of an application for off-sale 3.2 beer license - Applicant: Tareet. (10)
A. REFERENCE AND BACKGROUND:
The City has received an application for an off-sale 3.2 beer license for the Target store to be
located at 1447 East ih Street in Monticello. The license fee for an off-sale beer license is
$100 annually.
B. ALTERNATIVE ACTIONS:
1. Approve the request for an off-sale 3.2 beer license for the Target store at 1447 East ih
Street contingent upon submittal oflicense fees.
2. Do not approve license application.
C. STAFF RECOMMENDATION:
It is the recommendation of the City Administrator that the license application for an off-sale
beer license for the Target store located at 1447 East ih Street be approved and forwarded to
the state.
D. SUPPORTING DATA:
License application.
27
T-J.IBO
CD
Alr,Qhlll &. GiHTlbtinq 1=1\IL'lrCt!fl1Ufll
Minnesota Department of Public Safety
Alcohol and Gambling Enforcement Division (AGED)
444 Cedar Street, Suite 133, S1. Paul, MN 55]01-5133
Telephone 651 ~296-6979 Fax 651-297-5259 TTY 651-282-6555
Certification oran On Sale LiQuor License, 3.2% LiQuor license. or Sunday LiQuor License
Cities and Counties: You are required by law to complete and sign this form to certify the issuance of the following liquor
license types: I) City issued on sale intoxicating and Sunday liquor licenses
2) City and County issued 3.2% on and off sale malt liquor licenses
Name of City or County Issuing Liquor License.Mt\^~l,Q\\O License Period From:_._ To:___..__
Circle Onc: ~w L~e~ License Transfer Suspension Revocation Cancel _.___
(former licensee name) (Give dales)
License type: (circle all that apply) On Sale Intoxicating Sunday Liquor 3.2% On sale ~Io O~
Fee(s): On Sale License fee:$____ Sunday License fee: $__._ 3.2% On Sale fee: $__3.2% Off Sale fee: $,___
Licensee Name:. Tt\(,~+ Cr>~orttt\D~l DOB Social Security #______.
(corporatll,;;-, partnershIp, LLC, or IndIvIdual)
Business Trade Name Tttrgt.+ GiDntI-.:LI'Oo Business Address 14"41 Ettfzt"')..K, ~..~_ City..Mi:ln:hctllo
Zip Code_~_~.~_z.... County_~~ Business Phone p4>N\tij~_______ Home Phone ~1'l"'lfd~%l.i\
Home Address.l.OOO. N \(.blte:l H~l1JIPI':l.pqIa::ity ---.f::1.i.n'(\€l1.poll5__ Licensee's MN Tax ID # tiO~b~1-4
Licensee's Federal Tax ID #---'!t::.D216l1D _.
I f above named licensee is a corporation, partnership, or LLC, complete the following for each partner/officer:
oJ 2d? Neil R€A:f ._____..
Partner/Officer Namc (First Middle Last)
Social security #
lffl9~ ""~ Or, ~!dillttNN
Home Address
DOB
1i~l2c~f+ ~ _~
(Partner/O cer Namc (First MIddle Last)
Social Security #
bUJI &O\~ ltl, ~d..it\0l1 Mr-l
Home Address
DOB
Partner/Officer Name (First Middle l.ast)
DOB
Social Sccurity #
Homc Address
Intoxicating liquor licensees must attach a certificate ofLiqllor Liability Insurance to this form. The insurance certificate
must contain all of the following: see ~o\
I) Show the exact licensee name (corporation, partnership, LLC, etc) and business address as shown on the license.
2) Cover completely the license period set by the loca! city or county licensing authority as shown on the license.
Circle One: (Yese During the past year has a summons been issued to the licensee under the Civil Liquor Liability Law?
Workers Compensation I nsurance is also requ ired by all I icensees: Please complete the following:
Workers Compensation Insurance Company Name: see A#zuheA __ Policy #___~_.u
I Certify that this license(s) has been approved in an official meeting by the governing body of the city or county.
City Clerk or County Auditor Signatllrc_______~~~..._______".. ....__. Date__.._~____
(title)
On Sale intoxicating Iiqllor licensees mllst also purchase a $20 Retailer Buyers Carel. To obtain the
application for the Buyers Card, please call 651-215-6209, or visit our website at WWW.dDs.state.lllll.us.
(Form 9011-2004)
28
Council Agenda - 0I/08/2007
5D. Consideration of approvinl! amended contract for hazardous material removal from
the Monte Club buUdinl!. City Proiect #2007-02C-A. (J.S.)
A. REFERENCE AND BACKGROUND:
The City entered into a contract with Veit & Company, Inc. to do asbestos removal at the Monte
Club building based upon an inspection and asbestos analysis performed by Dale Mashuga. Mr.
Mashuga is a certified Minnesota Department of Health Asbestos Inspector hired by the City.
Based upon Mr. Mashuga's report, Veit & Company gave us a price of $4,825 to do the asbestos
removal. Upon beginning the work, there was approximately 875 square feet of ceiling in the
dining room at the kitchen level that had to be removed and abated. During this removal the
paneling on the walls in the dining area was removed and it was noted that the ceiling spray
material containing asbestos extended part way down the walls as well. This material had to be
soaked in water and scraped to be removed prior to the demolition continuing. Veit & Company
requested an additional $4,060 to complete the removal of the additional asbestos found behind
the paneling. This would bring the total cost of the asbestos removal to $8,885. Rather than stop
the project and bring this forward to a council meeting in January, the City Engineer and the
Street Superintendent amended Veit's contract to include the additional $4,060 and authorized
them to proceed with the asbestos abatement on the walls behind the paneling.
B. ALTERNATIVE ACTIONS:
1. The first alternative is to approve an amended contract with Veit & Company for asbestos
removal at the Monte Club for $8,885. A copy of the signed contract is included for your
reVIew.
2. The second alternative would be not to approve the amended contract with Veit &
Company. This alternative does not seem to be very appropriate at this time since the
work has been performed.
C. STAFF RECOMMENDATION:
It is the recommendation of the City Engineer, Street Superintendent and Public Works Director
that the City Council authorize approval of the new amended contract for asbestos abatement at
the Monte Club with Veit & Company as outlined in alternative #1.
D. SUPPORTING DATA:
Copy of the amended contract for asbestos abatement.
29
, I ,J
I
~
MONTICELLO
S.l.IPROBrl~,(;gAIA;:'" "I
CONTRACT
FOR
ASBESTOS ABATEMENT
OF THE MONTE CLUB AND APPURTENANCES
AT 8932 FENNING AVENUE
CITY PROJECT #2007-02C-A
FOR THE
CITY OF MONTICEllO, MINNESOTA
~J..,
THIS AGREEMENT, made and entered into as of the -z. l -
day of December. 2006, by and
between the City of Monticello. Minnesota, a municipal corporation under the laws of the State of
Minnesota (hereinafter called the "Owner") and Veit & Company. Inc. (hereinafter called the
"Contractor") .
WITNESSETH
That in consideration of their mutual covenants and agreements as hereinafter set forth, the Owner for itself
and the Contractor for itself, its successors and assigns, covenants and agrees as follows:
The Contractor agrees to furnish all the necessary materials, labor, use of tools, equipment, plant,
and every other thing necessary to perform the work designated and referred to in this contract,
including all Contractor's superintendence and to furnish everything necessary for the completion
of the project which is the subject of this agreement (except such things as the Owner has specifically
agreed to provide according to the contract documents); and agrees under penalty of",a public
e ~\...;.~ ~(lI,J$(i.r\d.u~...-\ \.,<J1.\r-d <-(5~ +:-t'vi...
contractor's corporate surety bond in the amount Of,J;<:6Hr tll9ysaRd ehdtt hURtb cd twc:~and
Slcaes.oo
no/l00 ( $4.&25.99), to pcrform and complete the work as noted in Mr. Dale Mashuga's letter and
lab reports on asbestos samples from 8932 Fenning A venue dated December 6, 2006, and to conform
in all respects with the provisions and requirements of the general conditions, special provisions of
thc recommendations to remove all noted asbestos containing materials greater than one-percent
(1%).
1.
({)
2. The Contractor agrees that perfonnanee shall be in accordance with the terms, requirements, and
conditions of this instrument, and laws of the State of Minnesota, and the following documents:
- PAGE I OF 3 -
F,V\OMINIW...P,O<\JOtlN IAGReeMTS'.GONTAACT .fOR.A seesTos AllATehlENT .FOR. T ~E""ONTE ClUR_
30
Proposal for said Asbestos Abatement Report for the Monte Club and Appurtenances at 8932
Fenning Avenue.
Proposal by the Contractor, presented to the City Council of Monticello, Monday, December 1 L
2006, and accepted by the City Council of Monticello on Monday, December II, 2006.
Specifications for said Project referred to in paragraph one of this Agreement and made a patt of the
aforementioned proposal.
3. Insurance. The CONTRACTOR agrees that in order to protect itself and the CITY under the
indemnity provisions set forth above, it will at all times during the term of this Agreement, keep in
foree, at a minimum, policies of insurance as indicated herein. The CONTRACTOR shall not
commence work until a Certificate of Insurance covering all of the insurance required by this
paragraph is approved and a written Notice to Proceed is issued by an authorized representative of
the CITY.
The following insurance policies must be certified to the City of Monticello for approval:
A. The CONTRACTOR shall purchase and maintain a commercial general liability insurance
policy (CGL) to insure its operations. The CGL policy shall be in the amount of One Million
and Noll 00 Dollars ($1,000,000) in combined bodily injury and property coverage.
B. The CONTRACTOR shall purchase and maintain an automobile policy which provides
coverages for all owned, non-owned and rented or hired automobiles. The Automobile
Policy shall be in the amount of at least One Million and No/100 Dollars ($1,000,000)
combined single limit coverage.
C. The CONTRACTOR shall purchase and maintain Worker's Compensation insurance in
accordance with Chapter 176 of the Minnesota Statutes.
The City of Monticello shall be named as an "additional insured" party on both the CONTRACTOR's COL
and automobile insurance policies. The CITY shall receive at least 30 days written notice of cancellation,
non-renewal. or any material changes of the insurance policies specified above.
~,~'AOMIN'.WordPr{x;'JOHN "AGAEEMTS~,CONmACf.FOR.,l!\ SBESTOS ABA rE.MENT .l="OR;.THE.NON'tE ClUB.~
- PAGE 2 OF 3 -
31
4, The Owner agrees to pay the Contractor for the performance of this Agreement and the Contractor
agrees to accept in full compensation therefor, the sum set forth within the aforementioned proposal
of the Contractor for the work to be performed, It is understood and agreed that the said proposal
is for the perfonnance of sa~' estos Removal Project ona "lump sum" basis in accordance with
~,BeS.oo
the said proposal, and that s 0 $4.8:15.9& as set out in saidproposal, is the total lump sum for the
work specified,
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals as ofthe day and )ear
first above written,
:IT ;;\~~Y: 71C.
'&:;1?~
ITS Sr. VJ.-( g I/Cs-trXtvtA-,
CITY OF MONTICELLO
BY ^JU^-L-~
I
ITS Q \~ ~t"\<<_r
F.\A.OMIN'lWc:lf'tl~O....w\.AGAC.e:MTS\CONTR.4CT"Oft.A SGE;STOS ABAfE....ENT .FOR-THE-MONTE Clue,~
- PAGE 3 OF 3 -
32
Council Agenda: 1/1/08
5E. Consideration of Final Acceptance for the Hillside Farms 2nd Addition Development
(City of Monticello Proiect No. 2004-08P) (WSB)
A. REFERENCE AND BACKGROUND:
The developer (Trison Development, Inc.) of the Hillside Farms 2nd Addition
development has requested final City acceptance of the public improvements within the
development. The Hillside Farms 2nd Addition development project was completed to
provide streets and utilities within Elk Avenue from Badger Street to Deer Street and
Deer Street from Elk Avenue to the easterly boundary of the development. The final lift
of bituminous pavement was placed on the roadways in the fall of2005 and all public
utilities have been tested and approved. Final acceptance will include the release of the
development's general letter of credit held for street and utility construction. A separate
landscaping letter of credit needs to be provided in the amount of $7,600 for the
completion oflandscaping improvements prior to release of the general letter of credit.
As per City policy, the City will retain a portion of cash securities to cover warranty
inspection and as-built plan review. A reconciliation of final project expenses will be
completed by City staff. The developer will be responsible for any expenses over the
deposited amounts. We are recommending that the City accept the public improvements
to allow for the two-year warranty period to begin subject to receipt of the two-year
warranty bond and submittal of the landscaping letter of credit.
B. ALTERNATIVE ACTIONS:
1. Acceptance of the public improvements subject to receipt of the documentation
noted in Item A above.
C. ST AFF RECOMMENDATION:
It is the recommendation ofthe City Administrator that the project be accepted by the
City.
D. SUPPORTING DATA:
None
33
c: \l)QCWllents and SettingslJei\iVn,gYO.fstflKer\Local &UingslTemporary Internet Ftle.'i\OLK3\AGN rrM-Hi.lJ...ideFtlft,u]nd~OlQ807.doc
Council Agenda - 1/08/2007
SF. Consideration of approvin2 Chan2e Order No.1 for Xcel Ballfield Fencin2 and
consideration of final payment. City Proiect No. 2006-19C. (B.W.)
A. REFERENCE AND BACKGROUND:
On December 11, 2006 the City Council questioned whether the deduct included in Change
Order No.1 to City Project No. 2006-19C, Xcel Field #4 Fencing and Backstop, was sufficient
to offset the contractor's failure to install ninety-eight (98) line posts in concrete footings as
specified. As such, the Council requested that the City Engineer review the procedure used by
the Parks Department to calculate the total cost deduction included in Change Order No.1 and
report back to the Council with his recommendation for an adequate deduction.
As Council may recall, the contractor failed to recognize that the line posts were to be set in
concrete footings per the project specifications and instead drove line posts directly into the
ground. This installation method will not present a problem in itself as the City has installed
fencing by driving line posts directly into the ground in similar soils in the past, rather than
setting the posts in concrete footings. If you then couple that with the fact that the driven posts
are encapsulated in a concrete mow strip 16-inches wide by 4-inches deep, the fencing should be
capable of withstanding the forces associated with its intended use.
Previously, the total deduct for Change Order No. 1 was calculated by adding the estimated costs
for the materials omitted from the project to the difference in labor associated with the different
construction methods. It was determined that the omitted materials consisted only of concrete
for the footings, which was estimated to be $836.35. In regards to the difference in labor, the
contractor estimated that the increased labor associated with setting the posts in concrete versus
driving the posts directly into the ground would amount to eight-hour's labor for two men, which
at $8.00Ihour is $128.00. The total deduct was therefore estimated at $964.35.
Upon reviewing the project specifications it is my opinion that the total deduct to the contractor
should indeed be calculated by estimating the various cost components for the omitted materials
and the difference in labor associated with the different construction methods. Since 7.4 cubic-
yards of footing concrete were omitted the contractor saved approximately $860.00. In addition,
I would assume an hour of stand-by time for the concrete truck would have been required which
costs about $80Ihour. Then the contractor's estimate of labor reduction at two-people working
eight-hour's each seems reasonable and I estimate each person would have been billed out at
$10Ihour, which includes their base salary of $8.00Ihour plus $2.00Ihour for miscellaneous
insurance coverage, therefore the estimated labor savings was $160.00. In addition, they would
have had to commute to the site for that day's work which would have cost another $50 or so. I
therefore estimate that the total deduct for this work should be in the amount of$1,150.00.
B. ALTERNATIVE ACTIONS:
1. Motion to approve Change Order No.1 in the amount of a deduct of $1,150.00 and to
authorize final payment to Oberg Fence for City Project No. 2006-19C in the amount of
$13,750.25, resulting in a total project cost of$18,717.00.
2. Motion to deny approval of Change Order No.1 and final payment to Oberg Fence.
34
Council Meeting - 1/08/2007
C. STAFF RECOMMENDATION:
It is the recommendation of the City Engineer that the City Council approves Change Order No.
1 in the amount of a deduct of $1,150.00 and authorize final payment to Oberg Fence of
Deerwood, Minnesota in the amount of $13,750.25 as outlined in alternative action #1. The
installation of the fence at Xcel field #4 is satisfactory as constructed with the driven posts and
the concrete mow strip as noted above.
D. SUPPORTING DATA:
None.
35
Council Agenda: 1/8/07
5G. Consideration of revision to 2007 fee schedule. (JO)
A. REFERENCE AND BACKGROUND:
At the December 11, 2006 meeting the City Council conducted a public hearing for the
proposed 2007 fees. In discussion of the proposed fees, the charges for animal control service
were brought up. In October the City of Monticello notified the cities we have animal control
contracts with that the fees would be increasing effective January 1,2007. Unfortunately the
revised figures were not listed on the fee schedule the Council reviewed at the December 11 th
meeting. It was also felt by staff that since the City does not set the fee for the bus
transportation system that item should be removed from the fee schedule.
The City Attorney has indicated that the public hearing requirement applies to development
type fees such as trunk and area charges, etc. In his opinion it does not require a public hearing
for non-development fees such as the revisions to the animal control fees.
The proposed changes for animal control are: 1) Boarding fee to increase from $12 to $13 per
day; and 2) Disposition fee to increase from $32 to $35 if an animal is not claimed.
B. ALTERNATIVE ACTIONS:
1. Approve a revision to the 2007 fee schedule reflecting a fee of $13/per day for animal
boarding and $35 for animal disposition and to delete the reference to bus tickets since
that is no longer a city fee.
2. Do not approve the proposed revisions.
C. STAFF RECOMMENDATION:
It is the recommendation of the City Administrator that the proposed revisions to the 2007 fee
schedule be approved.
D. SUPPORTING DATA:
None.
36
Council Agenda: 1/8/07
5H. Consideration of authorization to prepare iob description. establish pay scale and to
advertise openine: for Deputy Ree:istrar Manae:er position. (10)
A. REFERENCE AND BACKGROUND:
City Council is asked to authorize the City Administrator and Personnel Committee to create
a new position within the Motor Vehicle/Deputy Registrar Department. The position as
proposed would be in replacement of the current highest ranking position in the organization
known as the Sr. Deputy Registrar Clerk.
Certain managerial responsibilities associated with operating an enterprise such as the Deputy
Registrar are not sufficiently identified in Sr. Deputy Clerk job description. The job
description for the new position will be crafted to include managerial tasks necessary for
operating the department. A position within the department needs to be clearly identified as
the leader and accountable for successful business operation. Such added tasks or
responsibilities to include but not limited to:
. Direct responsibility for identifying performance concerns, training and evaluation of
clerks. It appears by the job description that the Senior Clerk is only responsible for
making recommendations on evaluations to the City Administrator. It is not
reasonable or advisable to have the City Administrator be responsible for conducting
evaluations for employees rarely seen by the Administrator.
. Responsibility for conducting customer surveys and identifying service problems or
issues. Identify and meeting customer service goals thus increasing the chance of
retaining business.
. Responsibility for advertising and public relations. Development of printed and web
based materials identifying and promoting services.
. Responsibility for responding proactively to service complaints.
. Identify and implement methods for improving efficiency.
. Track hours of service or other cost information in order to evaluate efficiency of
operation.
In that this represents a completely new position, it is proposed that all staff within the
Department and general public would be eligible to apply for the position.
A complete job description along with points has not been created for review at this time.
B. ALTERNATIVE ACTIONS:
1. Motion authorizing preparation of job description and establishment of points and advertise
opening for the position of Deputy Registrar/Motor Vehicle Manager.
37
Council Agenda: 1/8/07
Under this alternative the City Administrator will work with the Personnel Committee to
implement the hiring process as soon as possible but without final approval by Council of the
details such as final job description and final pay range.
2. Motion authorizing preparation of job description and establishment of points for further
review by the City Council at an upcoming meeting.
Under this alternative the City Council would review the final job description and review the
proposed points (salary range) prior to formally advertising the opening.
3. Deny authorization as requested.
C. STAFF RECOMMENDATION:
To expedite the process, it is recommended that Council select Alternative 1. However, if
Council prefers to take a slower approach and have a chance to review the final job
description and proposed pay range then Alternative 2 should be selected.
D. SUPPORTING DATA:
Copy ofSr. Deputy Registrar Clerk Job Description.
37-1
Sr. Deputy Registrar Clerk
City of Monticello
Title of Class:
Effective Date:
Revised:
Revised:
Sr. Deputy Registrar Clerk
August 8, 1994
July 15, 1995
August 1998
DESCRIPTION OF WORK
General Statement of Duties: Performs skilled clerical work as an agent for the State in
processing DMV and DNR transactions; and performs related duties as required.
Supervision Received: Works under the general supervision of the State Deputy Registrar Field
Representative and the City Administrator.
Supervision Exercised: Performs routine supervision of part-time deputy registrar clerks.
TYPICAL DUTIES PERFORMED
The listed examples may not include all duties performed by all positions in this class. Duties
may vary somewhat from position to position within a class.
Supervises part-time deputy registrar clerks, including: scheduling staff, approving vacations,
approving timesheets, providing input to City Administrator for annual evaluations.
Registers new and used snowmobiles, all-terrain vehicles, and watercraft for the Department of
Natural Resources.
Registers and transfers bicycle licenses.
Transfers titles for motor vehicles and watercraft as appropriate; calculates excise tax based on
purchase price or book value according to guidelines.
Answers questions, by phone and in person, related to transactions, forms, attachments, and other
rules, laws, and requirements.
Collects fees and ensures all forms and documents are complete and accurate; assists customers
in completing forms.
Processes applications for new and used vehicles brought in by dealers.
Enters transaction information into computer, audits for accuracy, and prints a daily report with
required information and fees broken down by fund.
Organizes daily report by registration class and ensures all appropriate documents and forms are
attached; mails to regional processing group.
Completes Fin-8 form for the State Treasurer.
Totals daily receipts, separates City filing fees, and deposits correct amount into the state
account; sends copy of the deposit and Fin-8 form to the State Treasurer.
Maintains a variety of records.
(continued on next page)
37A
Sr. Deputy Registrar Clerk
City of Monticello
Prints monthly inventory of stickers and goes through stickers to ensure none have been lost;
orders more as appropriatc.
Prints annual inventory and goes through stickers listing those that are obsolete; destroys
obsolete stickers after the field representative checks them.
Checks in the annual allocation of stickers for the next year, separates stickers and groups them
by weight; verifies all stickers have been received; enters stickers and plates into
computer.
Generates two weekly DNR reports (one for registrations and one for titles) including entering
transaction information on the computer, auditing for accuracy, and printing.
Prepares "verified" slip with fee information and distributes to bookkeeper for processing of state
checks.
Maintains records of fee by fee type and files with reports.
Submits excise tax reporting forms to Department of Revenue weekly.
Prepares daily and weekly City deposit by totaling City filing fees and DNR fees, adjusting for
NSF checks, obtaining a deposit number, completing a dcposit slip, and depositing;
enters deposit in ledger and files appropriate forms and receipts.
Answers phones and provides information or transfers calls as appropriate.
May provide newsletter article input as directed.
Handles NSF checks by redepositing and/or contacting person by phone, sending form letters,
and completing and sending notice to Sheriffs Department with appropriatc
documentation.
Sets up the front counter in the morning and lock up at the end of day.
Notarize or witness documents as needed.
May initiate daily computer backup processes.
Attends annual deputy registrar school and keeps informed of changes through meetings and
bulletins.
Maintains adequate supplies for office.
KNOWLEDGE, SKILLS, AND ABILITIES
Considerable knowlcdge of laws, rules, regulations, procedures, and forms applicable to deputy
registrar work.
Considcrablc knowledge of the operation of a computer tcrminal to cntcr and look up data,
develop and print reports, makc corrcctions, and perform backup processes.
Considerable skill in the use of a calculator and in typing with speed and accuracy.
Considerable ability to communicate effectively and tactfully, both orally and in writing, with
customers, state officials, City staff, and the general public.
Considerable ability to analyze problems and exccptions and to determine the appropriate
procedure or resolution.
(continued on next page)
37B
Sr. Deputy Registrar Clerk
City of Monticello
Considerable ability to read and interpret a variety of written manuals and bulletins and to utilize
resources effectively.
Considerable ability to learn a variety of rules, regulations, and procedures and be able to adapt
to frequently changing requirements.
Considerablc ability to account for and handle money.
Working ability to operate normal office equipment and some routine maintenance.
Working ability to supervise staff.
MINIMUM QUALIFICATIONS
Two years of responsible clerical work involving considerable public contact, typing, and
recordkeeping.
37C
Council Agenda: 1/8/07
7. Public Hearin2 and Consideration of approvin2 a tax revenue stabilization a2reement
which includes a tax abatement process as part of the revenue stabilization a2;reement
with Xcel Ener2V. (10)
A. REFERENCE AND BACKGROUND:
Due to the fact that there is a provision within the stabilization agreement that under certain
circumstances would result in a tax abatement payment being made to Xcel Energy, there is a
need to conduct a public hearing relating to the abatement provision.
As you know, with the potential decrease in plant valuation resulting from pending action by
the Department of Revenue, the property taxes generated by the facility are likely to be
reduced significantly. The revenue stabilization agreement requires a separate payment from
Xcel to the City equal to the City's loss in tax revenue resulting from this valuation change.
Conversely, ifXcel's tax liability increases beyond the base year liability, then the City of
Monticello will be required to make a tax abatement payment to Excel when a future annual
tax exceeds the original base rate. The mechanism delineating the process and conditions
when the abatement payment would come into play will be discussed at the workshop at 5:30.
In addition to reviewing the abatement concept Council will be asked to review the agreement
in some detail and determine next steps with regards to the approval process. Please see the
copy of the agreement provided previously. If you need a copy of that agreement, please let
me know. To assist you in general review, the first two pages of the agreement covering
purpose and recitals are provided.
Please note that Steve Bubul and Martha Ingram from Kennedy and Graven have been
assisting staff in fully understanding the document and associated implications. As a result of
their input and due to further discussion a memo was sent to Xcel requesting clarification of a
few points. It also listed certain negotiation points (see attached) established with the input
from Mayor Herbst that Council will want to review at the workshop.
Finally, I took the liberty of having Mark Ruff jump-start preparation of the Financial
Management plan in order for Council to have a context for this important decision. Mark has
updated information provided at the previous workshop and will provide it to you accordingly
on Monday. Please note that his new spreadsheet has a more comprehensive list of projects in
the pipeline. After reviewing this information Council will have a better idea as to the
financial capacity to fund projects and a better understanding of the financial implications of
approving the agreement. It is possible that at the conclusion of the workshop, Council will
have sufficient information to consider adopting the agreement with conditions, or it could be
tabled pending response from Xcel on certain negotiation points.
B. ALTERNATIVE ACTIONS:
1. Motion to adopt agreement contingent on preparation of clarification of certain language and
conditioned upon acceptance of modifications to the agreement as proposed by Mayor, staff
and consultants.
Under this alternative Xcel would have the opportunity to look over the proposed changes to
the agreement. If Xcel accepts the proposed changes then no further consideration by Council
38
Council Agenda: 1/8/07
would be required. If however, Xcel would like to discuss or negotiate further, then it is
likely that this agreement will be back before Council.
2. Motion to deny approval of agreement
3. Motion to accept agreement as presented.
c. STAFF RECOMMENDATION:
At this point in time, it has not been detennined if there is a financial advantage to adopting
the agreement under the current terms. Information from Mark Ruff will shed more light on
this subject.
It is recommended that the Council review the financial information that will be provided by
Mark Ruff, review points of negotiation and consider adopting the agreement with conditions
as confirmed by the City Council. As an alternative, Council may wish to table the matter and
continue negotiations.
D. SUPPORTING DATA:
Revenue Stabilization Agreement Negotiation Points.
Purpose & Recital of Revenue Stabilization Agreement
39
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis MN 55402
&
(612) 337-9300 telephone
(612) 337-9310 fax
http://www. kennedy-graven. com
CHARTERED
MEMORANDUM
To: Michael Grimes
From: Steve Bubul and Martha Ingram
Re: Revenue Stabilization Agreement Negotiation Points
Date: January 3, 2007
The City of Monticello (the "City"), its financial consultants and legal counsel have
met to discuss the draft Revenue Stabilization Agreement (the "Agreement") proposed to
be executed by the City and Northern States Power Company d/b/a Xcel Energy ("NSP").
Some points of negotiation and/or clarification arose from that discussion, and are laid out
in this memo.
A. Modification of Section 2
The City requests that the Agreement define the Base Year as taxes payable year
2006. The City's position is that taxes payable year 2007 reflects an uncharacteristically
low tax rate caused by a confluence of many factors, including unusually large commercial
growth, and that establishing the Base Year as taxes payable year 2006 is more equitable.
In any event, the current definitions and examples of Base Year and Base Year
Amount are inconsistent within the Agreement and its exhibits. We assume that the Base
Year means the calendar year that the Rule changes take effect, and that the Base Year
Amount is the utility property tax payable in the Base Year based on prior year
assessments, as depicted in Exhibit B. If NSP does not wish to set the Base Year as taxes
payable year 2006, we will need to discuss redrafting of Section 2 so that the definitions,
exhibits and examples are consistent.
303784vl MNI MN190-126
40
B. Clarification of Section 3
The Term of the Agreement is defined as ten years after the Base Year, if the Rule
changes are implemented for assessment in 2007, provided that if the Rules are
implemented for assessment after 2007, the Agreement will terminate no later than
December 31, 2018. The City would like to clarify the definition of the Term. The
Agreement appears to provide that if the Base Year is 2007, the Agreement terminates on
December 31, 2016. Since Abatements or Stabilization Payments are payable one year
after the year in which they are assessed, this appears to result in a total of nine years of
Abatements or Stabilization Payments, since other sections of the Agreement provide for
reconciliation payments at the end of the Term (see, e.g., Section 5(c)(ii) and (iii)).
However, Section 5(d) provides that the Abatement period shall not exceed ten years.
Does this mean the Term of the Agreement is actually ten years after the first payment
year, rather than ten years after the Base Year (provided that the Agreement will terminate
no later than December 31, 2018)? Or is the Term ten years from January 1 of the year
following the Base Year, to allow for payments of the final year of
Abatements/Stabilization Payments and final reconciliation payments? To confuse the
issue further, Schedule 5(c)(iv) shows payments made in 2019, which seems inconsistent
with the rest of the Agreement. Clarification of what is meant by the Term of the
Agreement would help the City to understand when its final payment obligations, if any,
are payable to NSP.
C. Clarification of Sections 5(b ) (i) and (ii).
The City would like to clarify that each Abatement and Stabilization Payment
applies only to the amount of utility property tax on the Stabilization Property payable in a
given year over or under the Base Year Amount, exclusive of any amount resulting from
an abatement levy resulting from Abatements collected in that year. In this case, we
propose the following language in Section 5(b )(i):
In the event that the utility property tax on Stabilization Property in any year during
the Term, exclusive of any levy amounts resulting from Abatements payable to
NSP in that year (including any Abatements levied but not payable in that
year because the amount does not reach the Abatement Payment Threshold),
is less than the Base Year Amount, NSP will remit to the Host Community the
difference between the higher Base Year Amount and the lower utility property
taxes on Stabilization Property paid by NSP to the Host Community (a
"Stabilization Payment"), subject to offset due to tracking of unpaid Abatements
(defined in Section 5(b )(ii) below), reconciliation of Abatements at the end of the
Term and the effect of Extraordinary Investment and future divestiture provisions
described below in this Section 5.
Likewise, we propose parallel language in Section 5(b )(ii):
In the event that the utility property tax on Stabilization Property in any year during
the Term, exclusive of any levy amounts resulting from Abatements payable to
303784vl MNl MN190-126
41
NSP in that year (including any Abatements levied but not payable in that
year because the amount does not reach the Abatement Payment Threshold),
is greater than the Base Year Amount, the Host Community will remit to NSP the
difference between the higher utility property tax paid by NSP to the Host
Community and the lower Base Year Amount pursuant to Minn. Stat. ~ ~
469.1813-1815, as amended (an "Abatement Payment" or an "Abatement"), subject
to offset due to the deferral and tracking of unpaid Abatements, reconciliation of
Abatements at the end of the Term and Extraordinary Investment and future
divestiture provisions described below in this Section 5.
D. Section 5(c)(ii) - Abatement Payment Threshold
As we understand the Agreement, any Abatement amounts below the Abatement
Payment Threshold are tracked but not levied until the end of the Term. The City would
like to have the option, at its sole discretion, to levy for Abatement amounts below the
Abatement Payment Threshold in any year following any year in which it is determined
that an Abatement is payable. This would enable the City to increase its tax levy
gradually, rather than requiring a potentially large increase at the end of the Term. While
this might be implied, we would like to make the point explicit in the text of the
Agreement.
E. Abatement Cap
In light of additional modeling by the City's financial consultants of future City tax
levies, which project relatively rapid property tax increases under some possible scenarios,
we would like to discuss the possible inclusion in the Agreement of the concept of an
Abatement cap, i.e. a maximum annual or cumulative amount of Abatement payments.
F. Section 7 - Extraordinary Investment Percentage
Section 7 of the Agreement currently provides for exclusion from Abatement
payments of any utility property tax increases resulting from an Extraordinary Investment,
defined as a capital investment in the plant that results in a "significant increase" in the
Market Value of the Stabilization Property. A "significant increase" is currently stated to
equal an amount in excess of 7%. The City believes that this number is unacceptably high,
and proposes that a "significant increase" should equal an amount in excess of3%.
G. Section 11 - Dispute Resolution
The Agreement currently calls for mediation followed by binding
arbitration as the mechanism for the resolution of disputes arising under the
Agreement. The City would prefer that the Agreement not be subject to binding
arbitration, and requests that Section ll(b) be deleted from the Agreement.
303784vl MNI MN190-126
42
The Monticello City Council plans to hold its public hearing on the Agreement and
the potential abatements on January 8. No formal action is expected on the Agreement
while these negotiation points are unresolved. Please feel free to contact either of us to
discuss these points.
303784vl MNI MN190-126
43
[PROTOTYPE CITY OF MONTICELLO]
REVENUE STABILIZATION AGREEMENT
THIS REVENUE STABILIZATION AGREEMENT (this "Agreement") is entered
into as of the _ day of , 2006 by and between the City of Monticello,
Minnesota (the "City" or the "Host Community") and Northern States Power Company
d/b/a Xcel Energy, a corporation existing andgovemed under the laws of the State of Minnesota
("NSP"). The Host Community and NSP may be collectively refelTed to herein as the "Parties"
and each individually may be referred to herein as a "Party."
PURPOSE
NSP owns the Monticello nuclear power plant, which power plant is located in Wright
County, Minnesota (the "County" or "Wright County"). The power plant operates as a
baseload plant which is operated continuously without interruption, except for periods of time
required for maintenance and refueling outages. The utility property tax revenues from this plant
constitute a significant portion of the tax base of the Host Community and the Host Community
is significantly impacted by changes in utility property tax policy. The Host Community has in
recent years experienced a decline in its property tax base revenues.
As a consequence of the uncertain nature of regulatory, administrative, statutory and
judicial developments that may affect the future valuation of, and assessment of taxes upon,
property owned by utilities within the State of Minnesota, which are reasonably anticipated to
create a degree of instability and uncertainty in the revenue base of the Host Community, the
Parties are entering into this Agreement for the purposes of, among other things: (i) promoting
in the public interest a stable and controlled revenue stream for the Host Community,
(ii) promoting a stable and controlled expense base for NSP, (iii) providing a basis for long-term
budgetary planning of revenues and expenses for each of the Parties to this Agreement, and
(iv) continuation ofNSP's responsible and proactive stewardship of costs to utility customers.
RECITALS
A. Utility property owned and operated by NSP that is located within Wright County
is subject to property taxes imposed under Applicable Laws of the State of Minnesota, including
without limitation, (i) Chapter 272, et. seq., of the Minnesota Statutes, and (ii) Minnesota Rules,
Chapter 8100, in each case as amended. Minnesota law requires that all property be valued at its
"market value" pursuant to MINN. STAT. SS273.11, Subd. 1,273.12, and 272.03, Subd. 8, in each
case as amended.
B. The existing rules within Applicable Law governing valuation and assessment of
utility property taxes within the State of Minnesota (the "Rule" or the "Rules") have generated
ongoing controversies and litigation challenging, among other things; the market values of utility
property assessed by the State of Minnesota and the assessment of utility property. In an
ostensible effort to address such controversies, the Minnesota Department of Revenue (the
"DOR") published a request for comments on possible amendments to the Rules governing
valuation and assessment of property owned by utilities and has established a rulemaking process
by which the DOR may recommend changes to the Rules.
1 959470vl
44
[PROTOTYPE CITY OF MONTICELLO]
C. NSP and the Host Community, have in the past and will in the future pursue
changes to the Minnesota Statutes and Rules governing utility property valuation and assessment
(i) to assure accurate reflection of market value(s), and (ii) that they believe are equitable and
warranted on behalf of their respective customers and taxpayers. Notwithstanding these efforts,
NSP and the Host Community desire to also facilitate stable and predictable revenue and expense
streams for, respectively, the Host Community and NSP.
D. In the event that there is a change in or to utility propeliy tax valuation and
assessment Rules with respect to NSP utility property, it is possible that the Host Community
could experience a substantial reduction in property tax revenues.
E. Recognizing that changes in the Rules goveming the valuation of, and the
assessment of utility property tax on, utility propeliy may result in a significant detriment to the
Host Community, and to lessen the impact of any such changes, the Parties have agreed upon
celiain revenue and expense stabilization measures set f01ih herein by which the Patiies seek to
achieve unifom1 utility property tax revenue streams for the Telm set forth in at1d defined by this
Agreement.
F. As an integral and essential legal consideration with respect to the Parties'
purpose hereunder to stabilize utility property tax revenues and expenses pursuant to the
provisions of this Agreement, the Parties have agreed that the Host Community shall authorize
the Abatement Payments that may arise under Section 5 of this Agreement pursuant to the
statutory authority for such payments granted in and by MINN. STAT. SS 469.1813 through
469.1815, as amended (collectively, the "Abatement Statutes"). The abatement authorization
adopted by the Host Community is attached hereto and incorporated by reference herein as
Exhibit A to this Agreement.
G. At the time of this Agreement, the Parties are unable to predict with any certainty
the outcome or the economic impact, if any, of (i) controversies that may arise with respect to, or
matters that may be litigated conceming, utility property valuation and assessment, and/or
(ii) changes to the Rules which affect the respective utility property tax burden or benefit to the
Host Community and/or NSP.
H. This Agreement does not apply to the state general tax, and any other tax and/or
assessments, that may be now or in the future set forth on the Wright County property tax
statement, other than the utility property taxes of the Host Community as described herein.
AGREEMENT
NOW, THEREFORE, in consideration of the (i) foregoing Purposes alld the Recitals,
each provision of which is incorporated by reference as essential terms alld understandings of
and with respect to this Agreement, (ii) the covenants of the Parties set forth -herein, and
(iii) other good alld valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties hereto agree as follows:
1. Property Tax Payments Generallv. During the Term of this Agreement (as
defined in Section 3 hereof), NSP shall remit the properly computed and undisputed amount of
property tax set forth on the property tax statements issued by the County on or before the
I 959470vl
2
45
Council Agenda: 1/08/07
8. Consideration of approval of Resolution 2007-1 authorizine: application for SAFETEA-
LU Transportation Enhancement funds for CSAH 75 and CR 39 pedestrian crossin2
underpasses and pathway improvements. (B.W.)
A. REFERENCE AND BACKGROUND:
In 1991 Congress created the Intermodal Surface Transportation Efficiency Act (ISTEA) to
address growing concerns about air quality, open space and traffic congestion. One of the
several programs in ISTEA was the Transportation Enhancements (TE) program which was
meant to foster more choices for travel by providing $2.8 billion in funding for pedestrian
and bicycle facilities. With the passage of the Transportation Equity Act for the 21 st Century
(TEA-21) in 1998, Congress reaffirmed it's commitment by providing an additional $3.6
billion in TE funding. Then in 2005 with the passage of the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), the TE program
was continued.
SAFETEA-LU defines 12 exclusive activities that qualify for Transportation Enhancement
(TE) funds, and one or more of these 12 activities must constitute at least 70 percent ofthe
project cost. The first activity on the list is "Provision of facilities for pedestrians and
bicycles". As such, staff is requesting approval from the Council to apply for federal funding
through the TE program to construct two (2) grade-separated pedestrian crossing facilities
(underpasses), one on the westerly edge ofthe City for CSAH 75 west of River Street and the
other on the easterly edge of the City for CR 39 at Gillard Avenue. In addition, about 4,300
linear feet of8-foot wide bituminous pathway is being proposed to connect the pedestrian
underpasses to local pathway systems, as is some scenic landscaping.
The construction of grade-separated pedestrian crossings is necessary because the Wright
County Highway Department does not allow at-grade pedestrian crossings on any of its
County Roads with speeds posted above 30 mph. The City must therefore construct grade-
separated pedestrian crossings if we wish to provide pedestrians with designated crossings
for any of the County Roads in our City limits.
The CSAH 75 pedestrian underpass is being proposed based on the requests of numerous
residents that utilize the pedestrian facilities on this end ofthe City and have requested a
designated pedestrian crossing for CSAH 75 to connect the existing pedestrian facilities on
both sides of the highway. Construction of an underpass at this location makes more sense
than an overpass due to the local topography. The exact location of this underpass will be
better defined if federal funding is secured, which will of course affect the length of the
connecting pathways and crossing and therefore the cost of the project as well.
The CR 39 pedestrian underpass is being proposed based on the fact that a pedestrian fatality
occurred at this intersection. Again, at this location it makes sense to construct an underpass
crossing rather than an overpass due to the local topography. In addition, right-of-way is
limited in this area and underpasses typically require less right-of-way to construct than
overpasses due to the fact that overpasses typically result in greater vertical separation from
the adjacent roadway, therefore more room for ramps or stairs is required. And as with the
other pedestrian underpass the exact location of this underpass will be better defined if
federal funding is secured, which will again affect the cost of the project.
46
Council Agenda: 1/08/07
In order to receive federal funding through the TE program the City is required to provide a
non-federal (local) match at a minimum of20% of the total eligible project costs, which are
estimated to be $1,135,500 for the underpasses, connecting pathways and landscaping as
proposed under this project. The City's minimum matching cost is therefore estimated to be
$227,100. In addition, preliminary and construction engineering expenses are ineligible for
TE funding, as are appraisal fees, legal fees, and other costs associated with the acquisition of
right-of-way. These costs would therefore also need to be provided by the City, which for
this project are estimated to be $317,940, or 28% of the total eligible costs. In total, the City
would therefore need to contribute an estimated $545,040 to this project. SAFETEA-LU
does allow for the matching of federal funds with right-of-way on all projects.
The Council should be aware that if the project costs are so large that they would require
funding beyond the City's ability to provide the local match in a single year, or the required
funding would require a significant amount of federal funding, we do have the option of
submitting the project in segments. However, if we do submit our project in segments we
must be sure that each segment has the ability to stand alone as a single project, and we must
provide detailed cost estimates for each segment and prioritize the different segments of the
project. This is because there is no guarantee of federal funding for anyone segment of a
project therefore each segment must be able to function separately from the others.
Applications outlining projects that include the following elements will rank higher than
others:
);> Shows an achievable and realistic plan for property and/or right-of-way acquisition.
);> Provides for the required local match (i.e. through resolution).
);> The project is identified in a statewide, regional or local plan previously adopted.
);> The project completes a larger project.
);> The project enhances bicycle and pedestrian travel, scenic elements and historical
preservation.
It should be noted that there are significant state and federal project processing requirements
that come with federal funds. These requirements translate into expenditures oftime and
money on the parts of both the agency proposing the project and the agency administering
the federal funds for the project. Projects are also subject to specific standards during the
design and construction stages. In addition, applicants must agree to operate and maintain
facilities constructed with federal transportation funds for the useful life of the improvement
and not change the use of any right-of-way acquired without prior approval from the FHW A.
If federal funding is granted the funds would be made available for projects starting in State
Fiscal Year 2011, which is July 1, 2010 to June 30,2011.
B. ALTERNATIVE ACTIONS:
1. Motion to approve Resolution 2007-1 authorizing application for Transportation
Enhancement funding for two pedestrian underpasses.
2. Motion to deny approval of Resolution 2007-1.
47
Council Agenda: 1108/07
C. STAFF RECOMMENDATION:
It is the recommendation of the City Administrator and the City Engineer that the City
Council approve Resolution 2007-1 per alternative action # 1. It is also recommended that
the projects be submitted as one overall project, and that the crossings and pathways not be
split into individual segments.
D. SUPPORTING DATA:
Resolution 2007-1.
48
CITY OF MONTICELLO
RESOLUTION NO. 2007-1
RESOLUTION AUTHORIZING APPLICATION FOR
SAFETEA-W ENHANCEMENT FUNDS FOR
CONSTRUCTION OF PEDESTRIAN CROSSING, UNDERPASSES AND CONNECTING
PATHWAY SYSTEM
WHEREAS, the City of Monticello has adopted a long-term plan for pathway development in the
city, and
WHEREAS, construction of pedestrian crossing underpasses and connecting pathways is consistent
with the long-tenn plan and is now a high priority for immediate construction, and
WHEREAS, off-road pathway and pedestrianlbike development along the County Road 39 corridor
is necessary to provide a safe route for pedestrians and bikers traveling to many various points of
destination along the city pathway system, and
WHEREAS, off-road pathway and pedestrianlbike development along the CSAH 75 corridor is
necessary to provide a safe route for pedestrians and bikers traveling to many various points of
destination along the city pathway system, and
WHEREAS, pedestrian crossing underpasses and pathway improvements can be constructed
primarily on county and city right-of-way, and preliminary permission for use of county road right-
of-way for off-road paths built by the City has been granted, and
WHEREAS, the City of Monticello has conducted a citizen survey which has indicated that walking
and biking is a leisure activity enjoyed by a cross-section of the population, and whereas the survey
indicated popular support for further development of pathway systems, and
WHEREAS, development of pedestrian crossing underpasses and pathway improvements along with
landscaping enhancements will enhance the experience of travelers following the historic and scenic
Great River Road,
NOW, THEREFORE, LET IT BE RESOLVED:
1. The City authorizes submittal of SAFETEA-W Transportation Enhancements Fund
application for funds necessary to complete pedestrian crossing underpasses, pathway
improvements and associated landscaping.
2. The City authorizes funding of ineligible expenses estimated at a cost of $317,94 which, when
combined with 20% of project cost ($227,100) results in a cost to the City of$545,040.
3. The City authorizes funding of 20% of the total construction cost outlined in the grant. Total
construction cost is estimated at $1,135,500. City share at 20% equals $227,100.
4. The City shall maintain all improvements constructed for the life of the improvements, which
include sealcoating, crack filling, mowing, tree trimming, etc. Annual maintenance and
sinking fund expenses are estimated at $25,000/year.
49
5. The City shall develop policies and ordinances that will promote the safe and effective use of
the facilities by all citizens.
Adopted by the Monticello City Council this 8th day of January 2007.
Clint Herbst, Mayor
ATTEST:
Jeff O'Neill, City Administrator
50
Council Agenda: 1/8/07
9. Consideration of annual appointments for 2007. (JO)
A. REFERENCE AND BACKGROUND:
Minnesota Statutes require that at the first meeting of each year, certain appointments be made.
Attached you will find a list of the required appointments that may be approved in either one
single motion or separately. This lineup is presented based on input from Mayor Herbst.
a. City Depositories: The City utilizes one bank to provide banking service for the City
which is Wells Fargo. In addition, under Minnesota Statutes 239. the Chief Financial
Officer has also been designated the authority to name other official depositories for the
purpose of investments. The motion includes the authorization for the Chief financial
Officer to designate other depositories when necessary for investment purposes only.
b. Official Newspaper: In the past the Monticello Times has been designated as the
official paper. On occasions the Council has discussed possibly changing the official
paper but staff has not been directed to research this further.
c. Health Officer: In the past the City has appointed the River Place Physician Clinic in
this capacity.
d. Acting Mayor: Previously Glen Posusta was appointed as Acting Mayor in the absence
ofthe Mayor. It is proposed by Mayor Herbst that Brian Stumpfbe appointed.
e. Representatives to Other Multi-Jurisdictional Bodies: This appointment is for
selecting the City representatives to serve on the Community Education Advisory Board
and the Orderly Annexation Board. As part of the orderly annexation agreement, the
Orderly Annexation Board was created to handle zoning and land use issues in the area
covered by the annexation agreement. Members were appointed for one year with Clint
Herbst and Glen Posusta serving for the City. It is proposed that Susan Wojchouski be
appointed to the Community Education Advisory Board and Clint Herbst and Brian
Stumpfbe appointed to the Orderly Annexation Board.
f. Housing and Redevelopment Authority: Annually one appointment is required for the
Housing and Redevelopment Authority. The term of Bill Fair expired December 31 st.
Mr. Fair indicated he was willing to serve another term.
g. Planning Commission: The term of William Spartz expired December 31 st. Mr.
Spartz is willing to serve another term.
h. Library Board: The terms of Sandra Foster and Jacque Gordon expired on December
31 sl and they have indicated they will not serve another term. The Library Board has
recommended Janet Bridgeland and Claudia Tollefson as replacements.
1. Recycling Committee: Brian Stumpf served as Council representative on this
committee in 2006.
J. Economic Development: the Economic Development Authority is currently composed
of seven members serving six year terms. The term of Tom Perrault expired December
51
Council Agenda: 1/8/07
31 sl and he has indicated he is willing to serve another term. At the present time the
term of Wayne Mayer would expire in December of2008 and Susie Wojchouski is
currently a member at large whose term expires December of 20 11. The makeup of the
Commission as it is presently would mean that there would be three representatives of
the Council on the EDA. It is proposed that Susie W ojchouski be appointed to
complete the term of Wayne Mayer and that the City advertise for the position held by
Susie Wojchouski that would expire in 2001.
k. Police Advisory Commission: The terms of David Gerads and Dick Slais are up. Mr.
Slais and Mr. Gerads both indicated they are willing to serve another term. With the
resignation of Jon Hoff there is a vacancy on the board which has not been filled. The
City did advertise for bids and two applicants expressed their interest in serving on the
board. The two applicants are Jim Roberts a Monticello resident and Kathy Hanson a
township resident. The ordinance establishing the Police Commission states "A
general member of the police Commission shall be any adult resident of the city."
1. Parks Commission: The term of Fran Fair is up and she indicated she will not serve
another term. Fran Fair served on the Parks Commission since its inception in 1991 and
her many of years of service are appreciated. The City is currently advertising for the
vacancy. The Council may want to decide whether they will be part of the interview
process or will act on the recommendation ofthe Parks Commission.
m. DA T (Design Advisory Team): The terms of Pam Campbell, Sheila Stumpf and Patty
Pratt expired in December. All three have indicated they are willing to serve another
term.
n. MCC Advisory Board: The terms of Harvey Kendall and Sandy Theros expired in
December and they have both indicated they are willing to serve another term.
The following appointments are not required to be made annually by statutes but each ofthem
performs services on an as-needed basis for the City. The consulting services andlor individuals are
listed below and can be individually discussed by the Council if desired.
1. City Attorney: The firm of Campbell Knutson has served as the City's general legal
counsel with Tom Scott being the primary attorney for Monticello. The City has also
used the services of Flaherty and Hood for more specialized areas such as annexation.
In addition, the City has utilized Frank Madden and Associates for a number of
personnel related issues and Kim Kozar on issues relating to the wastewater treatment
plant. It should be noted that the firm of Campbell Knutson is increasing their fees as
shown on the attached letter.
2. City Auditor: Larson Allen provided audit services in previous years and by contract is
set to conduct the 2006 audit for the City. A contract price to perform the 2007 audit
has not been requested.
3. Consulting Engineer: Currently WSB & Associates serves as the City's consulting
engineer. The City has used other consulting firms for specific projects such as Bolton
Menk for the biosolids drying system or Bonestroo Rosene Anderlik & Associates for
52
Council Agenda: 1/8/07
the water tower depending on the project. The attached letter from WSB & Associates
notes that fees will increase effective January I, 2007.
4. City Planner: Steve Grittman of Northwest Associated Consultants has served as the
City Plarmer for a number of years. It is recommended that this relationship continue
on an as-needed basis.
5. Financial Consultants: The City designated Ehlers and Associates as its primary
financial advisor and it is suggested that the City continue with Ehlers and Associates.
In addition to the armual appointments, individual Councilmembers have been appointed as liaison
members with various committees and commissions of the City. A list of these committee assignments
is attached for Council review. The Mayor and Council may want to discuss whether any commission
assignments need to be changed.
The attached sheet as supporting data lists all of the members of the various commissions and
appropriate appointments, both required and discretionary, that the Council can consider for 2007. the
names in bold print are the ones that are in need of appointment
B. ALTERNATIVE ACTION:
1. Motion by the Council appointing organization and individuals to various roles and
advisory boards as noted with modifications, if any.
C. SUPPORTING DATA:
List of current appointments and current office holders.
Letter from Campbell Knutson
Letter from WSB & Associates
53
Official Depositories:
Newspaper:
Health Officer:
(1 year)
Acting Mayor
(1 year)
Joint Commissions:
Community Education
Joint Planning Board (Annexation area)
Attorney:
Planner:
Auditor:
Consulting Engineer:
COMMISSION
Housing & Redevelopment Authority
(5-year staggered terms)
Parks Commission
(3-year staggered terms)
Planning Commission
(3-year staggered terms)
2007 ANNUAL APPOINTMENTS
Wells Fargo
Chief Financial Officer - authorized to designate other
depositories for investment purposes only.
Monticello Times
River Place Physician Clinic
Brian Stumpf
Clint Herbst
Clint Herbst & Brian Stumpf
Campbell Knutson
Northwest Associated Consultants (Steve Grittman)
Larson Allen & Associates
WSB & Associates
NAME
Bill Fair
Steve Andrews
Dan Frie
Brad Barger
Darrin Lahr
Fran Fair
Ben Hitter
Rick Traver
Nancy McCaffrey
Larry Nolan
William Spartz
Lloyd Hilgart
Charlotte Gabler
Rod Dragsten
Barry Voight
DAWN/XCELlDAWN:Appointments List.xls: 1 /4/2007
TERM EXPIRES
12/2006
12/2007
12/2008
12/2009
12/2010
12/2006
12/2007
12/2007
12/2008
12/2008
12/2006
12/2007
12/2007
12/2008
12/2008
54
Library Board Sandra Foster 12/2006
(3-year staggered terms) Jacque Gordon 12/2006
Chris Anderly 12/2007
Tom Parker 12/2008
Ralph Olsen 12/2008
Economic Development Authority Tom Perrault 12/2006
(6-year staggered terms) Ron Hoglund 12/2007
Wayne Mayer 12/2008
Darrin Lahr 12/2009
Barb Schwientek 12/2010
Susie Wojchouski 12/2011
Bill Oemeules 12/2012
Police Advisory Commission David Gerads 12/2006
Dick Slais 12/2006
Brad Fyle 12/2007
Wayne Mayer 12/2008
Vacant 12/2008
DAT (Design Advisory Team) Pam Campbell 12/2006
(2~year staggered term) Sheila Stumpf 12/2006
Patty Pratt 12/2006
Charlotte Gabler 12/2007
Carey Tidblom 12/2007
Roberta Gerads 12/2007
Cindy Anderson 12/2007
MCC Advisory Board Harvey Kendall 12/2006
(3~year staggered terms) Sandra Theros 12/2006
Bob Grabinski 12/2007
Clint Herbst, Council 12/2008
Richard Quick 12/2008
Council Liaison (ex-officio) appointments to City committees:
Proposed
2006 Liaison 2007 Liaison
HRA Wayne Mayer Wayne Mayer
Planning Commission Glen Posusta Brian Stumpf
Parks Commission Tom Perrault Tom Perrault
Police Commission Wayne Mayer Susie Wojchouski
Library Board BrianStumpf Susie Wojchouski
MCC Advisory Board Clint Herbst Clint Herbst
Recycling Committee Brian Stumpf Brian Stumpf
Personnel Committee Herbst & Posuta Herbst & Mayer
Wellhead Protection Tom Perrault Tom Perrault
IOC Herbst & Mayer Herbst & Mayer
Outdoor Storage Glen Posusta
Fiber Optics Wayne Mayer
DAWN/XCEUDA WN:Appointments List.xls:1/4/2007
55
\!;Itthcw fl...
fohn F. Kc
Sorell .1\1. Mattick
11". h,; 'fr' t\. h;'h:.(f~,'!. t ~!
,\ l.C 'V1. \'lel ::HTI'"
i'n W
t '!'\rj'H,H"'i'll.'( (:l.~nt:cr (
l,.}'7",
,\'1
In
.
CAMPBELL KNUTSON
ssociatwon
October 2, 2006
Mr. Jeff O'Neill
City of Monticello
505 Walnut Street, Suite I
Monticello, MN 55362
Re: 2007 Billing Rates
Dear Jeff:
Our firm has been providing legal services to the City since September
2002. Our current attorney billing rate of $115.00 per hour has never been
increased. During that time, our costs of doing business have gone up each year.
W c request an increase in the attorneys hourly rate to $125.00 per hour
effective January 1, 2007.
We appreciate very much the City's business and look forward to a long-
term professional relationship. Our goal is to provide quality legal services in the
most cost-effective manner.
Thank you for your consideration.
Best regards,
Campbell Knutson
Profess ,anal Ass:c:atij tK
homas M. Scott
TMS:cjh
56
.A
WSB
a
~
Infrastructure I Engineering I Planning I Construction
~
701 Xenia Avenue South
Suite 300
Minneapolis. MN 55416
Tel: 763-541-4800
Fax: 763-541-1700
& Associates, fnc.
November 6, 2006
Mr. Jeff O'Neill
City Administrator
City of Monticello
505 Walnut Street
Suite 1
Monticello, MN 55362
Re: 2007 Rate Schedule
Dear Mr. O'Neill:
On behalf of WSB & Associates, Inc., I would like to thank the City of Monticello for utilizing our firm for
consulting engineering services in 2006. We very much appreciate the opportunities we have been provided
and look forward to working with you and your staff on upcoming projects in 2007.
Please find attached for your consideration a copy of the WSB & Associates, Inc. rate schedule for the year
2007. These rates will become effective January 1,2007 for work performed by WSB & Associates on an
hourly basis. We have an overall 2007 rate increase of less than 4%.
WSB & Associates, Inc. prides itself on maintaining one of the lowest overhead rates in the industry and as a
result, has one of the lowest billing rates of any consulting firm in the metro area. Our billing rates continue to
include all miscellaneous costs associated with word processing, mileage, cellular phones, reproduction, and
mailing, which provides for easy-to-understand invoicing.
Once again, thank you for allowing WSB & Associates to provide professional engineering services. We are
enthusiastic about continuing to provide professional engineering services to the City of Monticello. If you
have any questions or comments, please do not hesitate to contact me at (763) 287-7190.
Sincerely,
WSB & Associates, Inc.
~A.~
Bret A. Weiss, PE
President
Attachment
57
Minneapolis I St. Cloud
Equal Opportunity Employer
.
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