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City Council Minutes 05-29-2007 Council Minutes: 5/29/07 MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Tuesday, May 29, 2007 - 7 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski. Members Absent: None. 1. Call to Order and Pledl!.e of Allel!.iance Mayor Herbst called the meeting to order at 7 p.m. and declared a quorum present. The Pledge of Allegiance was said. 2A Approve minutes of Mav 14. 2007 Special Council MeeOOl!. - Interview firms for Public Works Needs study. SUSIE WOJCHOUSKl MOVED TO APPROVE THE MINUTES OF THE MAY 14,2007 SPECIAL COUNCIL MEETING INTERVIEWING FIRMS FOR THE PUBLIC WORKS NEEDS STUDY. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2B. Approve minutes of the May 14.2007 Special Council Meetinl!. - Reconvened Board of Review. BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF THE MAY 14, 2007 SPECIAL COUNCIL MEETING RECONVENING THE BOARD OF REVIEW. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2C. Approve minutes of the May 14. 2007 Rel!.ular Council MeeOOl!.. Tom Perrault noted that on Item #11, Page 10, the motion to award the bid for Project No. 2006-9C was unanimous. TOM PERRAULT MOVED TO APPROVE THE MINUTES OF THE MAY 14,2007 REGULAR COUNCIL MEETING WITH THE CORRECTION NOTED. SUSIE WOJCHOUSKl SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2D. Approve minutes of April 23. 2007 Rel!.Ular Council MeeOOl!.. Tom Perrault indicated that it should be Lynn Olson not Len Olson who represented the Monticello-Big Lake hospital district. SUSIE WOJCHOUSKI MOVED TO APPROVE THE MINUTES OF THE APRIL 23,2007 REGULAR COUNCIL MEETING. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. I -- Council Minutes: 5/29/07 3. Consideration of addinl!: items to the al!:enda. The following items were added: 1) Setting a date to interview for the Finance Director position; 2) Update on omnibus tax bill; 3) Memorial Day observation; 4) Sidewalk on River Street; and 5) Letter regarding condition of fields at Freeway Fields. 4. Citizen comments. netitions, requests and concerns. Red Storo from Minnesota Midway Magic requested an extension of the carnival permit to allow operation through Saturday June 2, 2007. Brian Stumpf stated he was in opposition to granting an extension because on a previous occasion the firm holding the permit was here for a very extended period of time. SUSIE WOJCHOUSKI MOVED TO APPROVE AN EXTENSION OF THE CARNIVAL PERMIT FOR MINNESOTA MIDWAY MAGIC THROUGH SATURDAY, JUNE 2, 2007. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED WITH BRIAN STUMPF AND WAYNE MAYER VOTING IN OPPOSITION. 5. Consent Al!:enda: A. Consideration of ratifying hires and departures. Recommendation: Ratify hires and departures for MCC, Streets and Parks Department as identified. B. Consideration of approving monthly renewal of pawn shop license for Walt's Pawn Shop. Recommendation: Approve the renewal of the pawn shop license for Walt's Pawn shop for another month. C. Consideration of approving agreement for assessing services with Wright County. Recommendation: Authorize renewal of contract for assessing services with Wright County for the 2008 and 2009 assessment years. D. Consideration of approving appointment of part-time Finance Clerk. Recommendation: Approve appointment of Carolyn Becker to the Finance Clerk position effective immediately at the rate of $17.15 per hour. E. Consideration of approving appointment for Deputy Registrar Manager. Recommendation: Appoint Ann Johnson to the position of Deputy Registrar Manager with a starting pay based on Grade 9, Step 1. F. Consideration of accepting feasibility report for Tower Drive Improvements, Project No.2007-08C. Recommendation: Move to approve preparation of a feasibility report for Tower Drive improvements. G. Consideration of purchase of air pack equipment for the Fire Department. Recommendation: Move to authorize the Fire Department to seek quotes on purchase of9 air packs having the ability to be interoperable with the Nuclear Plan (MSA Air Packs) at an estimated total cost of $45,000. 2 Council Minutes: 5/29107 H. REMOVED FROM THE AGENDA. 1. Consideration of authorizing a feasibility report for the construction of a pathway along Fenning Avenue. Recommendation: Authorize the preparation of a feasibility report to consider a pathway along Fenning Avenue from Hillside Farms to School Boulevard. The cost of the report would be paid for from funds deposited by adjacent development. J. Consideration of annual renewal of on-sale liquor, optional 2 a.m. closing and Sunday liquor license for Chatters Restaurant and Bar. Recommendation: Approve an on-sale liquor license, optional 2 a.m. closing and Sunday liquor license for Chatters Restaurant and Bar at 4181 Cedar Street for the period covering July 1, 2007 through June 30, 2008 contingent upon submission of certificate of insurance covering the license period and payment oflicense fees. K. Consideration of contract options for extending garbage and recycling contracts for one year. Recommendation: Exercise the option in the contracts to extend the refuse pickup and hauling and the recycling contracts for a period of one year at a 4.12% increase. L. Consideration of a request from the Housing and Redevelopment Authority (HRA) requesting the City Council grant conceptual approval of a loan to the HRA for purchase of the property located at 201 East Broadway. Recommendation: Move to grant conceptual approval of a loan in the amount of$450,000 to the Housing and Redevelopment Authority in and for the City of Monticello for the purchase of the property located at 201 East Broadway. M. Consideration of approval of contribution for Fire Department. Recommendation: Approve the contribution and authorize use of funds as specified by the donor. Items #5B, #51, #5K and #5L were pulled from the consent agenda. BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEMS #5B, #51, #5K AND #5L. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 6. Consideration of items removed from the consent ae:enda for discussion. #5B Renewal of pawn shop license - Walt's Pawn Shop: Clint Herbst asked about a provision in the conditional use permit for outside sales storage that restricted parking vehicles on the grass area. City Administrator, Jeff O'Neill will check into this and notifY the property owner of any violation. CLINT HERBST MOVED TO APPROVE THE RENEWAL OF THE PAWN SHOP LICENSE FOR WALT'S PAWN SHOP FOR ANOTHER MONTH. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. #51 Authorizingfeasibility report for pathway construction along Fenning Avenue: Tom Perrault felt it was premature to do a study at this time because there are still undeveloped 3 - Council Minutes: 5/29/07 properties in the area and it is not known how those properties would be laid out for development. Wayne Mayer asked if the pathway would need to be reconstructed ifFenning A venue is improved. Bruce Westby responded that one of the reasons for the feasibility study was to determine if the pathway can be located in such a way so that it does not have to be relocated. It was noted that there are funds set aside for the cost of the study. BRIAN STUMPF MOVED TO AUTHORIZE THE PREP ARA TION OF A FEASIBILITY REPORT TO CONSIDER A PATHWAY ALONG FENNING A VENUE FROM HILLSIDE FARMS TO SCHOOL BOULEVARD WITH THE COST OF THE REPORT TO BE PAID FOR FROM FUNDS DEPOSITED FROM ADJACENT DEVELOPMENTS. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION. #5K Extending garbage and recycling contracts: Wayne Mayer questioned what the consumer price index (CPI) was since that information was not contained in the report Wayne Mayer noted staff was asking for an increase of 4.12% which was being justified because of the fuel price increase. Wayne Mayer said the CPI has the fuel price increase built into it. Wayne Mayer felt the proposed 4.12% increase was a reward for the contractor since the actual CPI is 2.6%. Public Works Director John Simola said the previous contract was a 2% increase over the original contract so in 6 years the contractor had only seen a 2% increase. lfthe price of fuel is greater than the CPl it should be looked at in next year's contract. Wayne Mayer did not like the proposed increase of 4.12% and suggested using 2.6% as a starting point for negotiations. Clint Herbst asked if John Simola had checked around to see what the rates are in other communities. John Simola said the City handles the hauling and landfilling as separate contracts. Landfilling costs increased a $1/ton. The City currently bills $9.45 for the cart. The prices in other communities he checked ranged from $11.92 to $20.49. Any increase in the contract has to be agreed to by both parties so the change proposed by the Council would have to go back to the contractor. Tom Perrault asked ifthey would discontinue service since the contract ends within a few days. John Simo1a stated that the provision has been added to the new contract that the contractor will be delivering the carts to the home owners. This will include assembly as well as delivery ofthe carts. WAYNE MAYER MOVED TO OFFER A 2.6% INCREASE TO THE CITY'S RECYCLING AND GARBAGE HAULING CONTRACT. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. #5L Consideration of a request from the HRA for conceptual approval of a loan to the HRAfor purchase of property located at 201 East Broadway: Wayne Mayer wanted verification if this property covered one or two parcels. It was not clear from the information supplied but the number of parcels will be verified if this proceeds further. The total acreage of the site is 1.2 acres (910ts 33' x 166') which according to Ollie Koropchak was the full site. Brian Stumpf asked where the $450,000 would be coming from. Finance Director, Rick W olfsteller indicated it would have to come from general fund reserves which the HRA would be paying back. Brian Stumpf asked why the City was looking at buying the site. Ollie Koropchak stated the property has been on the market for over a year. The goal of the 4 Council Minutes: 5/29/07 HRA is to look at this site for possible future downtown redevelopment but there is no immediate development plan for this parcel. Brian Stumpf asked at what point does the City say no to requests from property owners to buy their land. Brian Stumpf asked why developers are not the ones going out there to purchase the property for redevelopment Jeff O'Neill said it would be helpful to develop a financial plan for this need and then decide what properties should be acquired. He added that you can't always have your plan in place before you move forward on these properties. Ollie Koropchak stated that one of the reasons the HRA doesn't have cash is because they had stepped forward and covered some of the cost in the land purchase ofthe Chadwick property. Wayne Mayer said the City having to use monies from the general fund might create the misperception that the City has too large of a general fund.. Rick W olfsteller said if the City is going to proceed with the purchase of the property, the City would want to do so by Julyl, 2007. Otherwise the City would have to pay the taxes for the next year. Anything purchased after the July 1st would not qualify for a tax abatement for that year. Jeff O'Neill asked about the impact of delaying action on this for two weeks. Ollie Koropchak said that would make the 7/1107 date more difficult to meet. It would come back to the Couocil on June 11 which would only give a couple of weeks to complete the papers necessary for closing on the property. Brian Stumpf expressed his concern that there are too many instances of items that come before the Council that are on the fast track and have to be acted upon immediately. This does not allow sufficient time for Council review and study of the issue. SUSIE WOJCHOUSKI MOVED TO GRANT CONCEPTUAL APPROVAL OF A LOAN IN THE AMOUNT OF $450,000 TO THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO FOR THE PURCHASE OF THE PROPERTY LOCATED AT 201 EAST BROADWAY. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED WITH BRIAN STUMPF AND TOM PERRAULT VOTING IN OPPOSITION. 7. Public Hearim!.s 1) Vacation of Davton Street: 2) Vacation of Hart Boulevard: 3) Vacation of easements within the plat of Monticello-Bil!. Lake Community Hospital District and acquisition of remnant parcels. Rick W olfsteller noted that the vacations are being considered as part of the expansion plans for the Monticello Big Lake Hospital. As a result of the expansion the Monticello Big Lake Hospital is requiring vacation of Dayton Street, Hart Boulevard and a number of easements. The portion of Dayton Street proposed to be vacated lies west of the existing hospital parking lot. The City had vacated a portion of Hart Boulevard a number of years ago but the City could not vacate it entirely because access had to be provided to the dental clinic. Monticello Big Lake Hospital now owns the dental clinic site so the balance of Hart Boulevard can be vacated. In addition there are remnant parcels owned by the City that the hospital is also proposing to acquire. It was noted that the hospital district owns the land on both sides of Dayton Street. The hospital has also done the maintenance on the portion of Hart Boulevard that served as the access to the dental clinic. The final plat of the Monticello Big Lake Commuoity Hospital District Campus 2nd Addition will contain the necessary replacements for the easements proposed to be vacated. One of the easements proposed to be vacated covers the sanitary sewer line from Broadway to River Street. The other easements being vacated are perimeter drainage and utility easements arouod the existing platted lot. The 5 Council Minutes: 5/29/07 remnant parcels of approximately 5,000-6,000 square feet are located adjacent to the hospital entrance. The vacated street right-of-way and the remnant parcels that are left over would be purchased. Brian Stumpf asked if there would still be access onto County Road 75 from Dayton Street. Staff responded that access would be from the hospital parking lot onto CSAH 75. Susie W ojchouski questioned the street names shown on the drawings for the Monticello Big Lake Hospital expansion. Steve Grittman stated the old street names still show up on the plat books but are no longer the current names ofthe street. There are two decisions which are 1) to vacate the easements and the street right-of-way and; 2) what monetary consideration should be given for the street right-of-way and the remnant property. Wayne Mayer asked if there was anyway to tie the two actions together Rick Wolfsteller said the two streets in question are actually owned by the City and that does not mean the City automatically turns them over to anyone upon vacation. The City could, if they chose, put the right-of-way up for sale. Mayor Herbst opened the public hearing. Barb Schwientek, CEO of the Monticello Hospital District spoke saying she disagreed with having to pay for the streets that were being vacated. The PUD shows a pedestrian walkway going through their property which would cost the Monticello Big Lake Hospital in excess of $1 00,000 to build. Barb Schwintek stated the hospital has also picked up the cost of maintaining Hart Boulevard for the past five years. Barb Schwintek asked Council consideration to waive the cost for the vacated street right-of- way. She added that the tax revenue from the 60,000 sq. ft. expansion would be coming to the City of Monticello. Clint Herbst noted that the City works hard with public institutions like the school district and hospital and he disagreed with charging for the right-of-way. Clint Herbst agreed a pathway is needed to the river but he didn't feel the pathway had to be handicapped accessible. Brian Stumpf stated the Monticello Big Lake hospital has made a considerable investment in the City of Monticello and that is why he didn't feel the City should charge for the vacated right-of-way. Wayne Mayer said the City is being asked to make a significant contribution to the hospital district. He noted that Buffalo has a hospital but does not tax the residents for the hospital whereas the Monticello Hospital District does. Wayne Mayer felt the City should be getting something for the Dayton Street right-of-way and he felt it would be fiscally irresponsible not to look at that. Clint Herbst pointed out that the 60,000 clinic expansion would be paying taxes. He felt the right-of-way was a small thing for the City to give up and noting that Dayton Street was not a major access point to any other businesses. Jeff O'Neill clarified that the clinic site would be paying property taxes but the hospital site does not. Clint Herbst closed the public hearing. SUSIE WOJCHOUSKI MOVED TO VACATE DAYTON STREET AND HART BOULEVARD RIGHT-OF-WAYS AS OUTLINED ALONG WITH THE DRAINAGE AND UTILITY EASEMENTS IDENTIFIED CONTINGENT UPON THE HOSPITAL DISTRICT AGREEING TO PROVIDE NEW UTILITY EASEMENTS AS NECESSARY. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Tom Scott clarified that the vacation does not turn the street over to the hospital district. 6 Council Minutes: 5/29/07 Rick W olfsteller stated in determining the cost of the right of way he wanted to clarify that the hospital did agree to pay for Hart Boulevard. The Council established a cost of$.611sq. ft. which the hospital would have paid for the land five years ago had the City had been able to vacate all of Hart Boulevard at that time. Brian Stumpf asked about the agreement and if it contained a provision as far as access to the WWTP. The sludge hauling vehicle utilizes the hospital entrance because it can't make the radius on Hart Boulevard. John Simola explained the sludge vehicle is tri-axle and all axles must be on ground so they have difficulty turning when the vehicle is loaded. Brian Stumpf said he was aware of the $.61/sq ft. cost that was established but he felt that the hospital had taken care of maintenance on Hart Boulevard for these years which should be considered. BRIAN STUMPF MOVED THAT BEING THERE IS A DIRECT BENEFIT TO THE CITY OF MONTICELLO THAT THE COUNCIL TRANSFER THE RIGHT-OF-WAY TO THE HOSPITAL DISTRICT AT NO COST AS LONG AS THE PATHWAY/STAIRS IS INSTALLED. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED WITH WAYNE MAYER VOTING IN OP~OSITION. 8. Consideration of approval of a request for Development Stal!.e Planned Unit Development (PUD) and Preliminary and Final plat for the Monticello-Bil!. Lake Hospital District to allow for expansion of a medical office buildinl!.. Applicant: Monticello-Bil!. Lake Hospital District. Steve Grittman provided background information on the PUD and the preliminary and final plat to allow for expansion of a medical office building. Steve Grittman reviewed the proposed site plan. The project consists of a new 60,000 sq. ft. clinic building on two levels located just west of the hospital. The ambulance garage would be moved off site to another location. The hospital had sought vacation of a portion of River Street but staff felt instead vacating the street a license agreement should be entered into for use ofthe right of way. The Monticello Big Lake hospital had made changes that resolved a number of the issues listed on Exhibit Z. Steve Grittman reviewed the location of the walkway on the site and noted staff had requested it to be moved as far east as possible. Staff had asked for a handicapped ramp but the hospital district does not want to put that in. Staff recommended approval of the PUD, preliminary and final plat. Jeff O'Neill added that the stairway is an essential part of the City's pathway system. Clint Herbst asked about the grade. Bruce Westby said for a pathway to be handicapped accessible it has to be at 5% continuous grade. To make this handicap accessible would be a significant cost. Bruce Westby noted that a number of residents have problems getting around town on the pathway system. The grade is too steep for any ADA pathway requirements. Steve Grittman noted the design ofthe plat split the hospital into one block and the parking lot into another lot. Outlot A as shown on the plat would be the site for the pathway. Staff recommended eliminating the outlot and putting an easement over the area. The hospital said the county surveyor would not allow the elimination of the outlot because of the need to have separation between blocks. Sidewalk access between CSAH 75 and River Street would be contained in the public easement and the City should check and make sure ADA accessibility is not required. Ifhandicap accessibility is necessary then it may require some plan modification. Steve Grittman noted that the City does have pathway along River Street that is down below the nursing home area. 7 Council Minutes: 5/29/07 BRIAN STUMPF MOVED TO APPROVE THE DEVELOPMENT STAGE PLANNED UNIT DEVELOPMENT AND PRELIMINARY AND FINAL PLAT BASED ON A FINDING THAT THE PROPOSED USES ARE CONSISTENT WITH THE INTENT OF THE EXISTING PUD AND THE PZM DISTRICT SUBJECT TO THE CONDITIONS OUTLINED IN EXHIBIT Z WITH THE ELIMINATION OF #6 ON EXHIBIT Z PROVIDING THERE IS NO ADA ACCESSIBILITY REQUIREMENT. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Clint Herbst suggested that signage can be placed to note that the pathway is not ADA accessible. Wayne Mayer asked about the sign. Clint Herbst said the sign would direct people to the pathway on the east side. It was noted that City does not have easement covering all of the pathway. Pathway access would have to be granted from Mississippi Shores and that would need to be worked out. 9. Review of 2006 Audit Report - Larson Allen. Doug Host from Larson Allen provided a review of the recently completed 2006 audit report. He noted there are certain requirements of the audit that the auditor must communicate to the Council. In addition to these communications he would also be reviewing the financial condition of the City. The auditor also tested internal controls and compliance testing of state statutes, such as support documentation for disbursements, signing of all documents that go through the finance process, any collection of receivables and non-collection of receivables. A significant audit adjustment is also required to be communicated. If a portion of the audit will be used but not the entire audit report there are certain procedures that need to be followed. Any significant difficulty encountered in performance of the audit must also be communicated. Doug Host stated the management letter was sent out in the Council packet. He talked about material weakness noting one audit adjustment would be considered a material weakness and added that very few entities have no audit adjustments. Audit adjustments may result due to an error in coding of expenditures and revenues or allocation of funds. The auditor noted the City was still preparing adjusting entries during field work. Wayne Mayer asked what was meant by that. Doug Host responded adjusting entries should be put into the system rather than being client identified adjustments. The City should prepare every report, amortization reports, statement schedules, etc. Ifthey do not it also has to be communicated to the Council. Doug Host felt there was some inefficiencies in not having the auditing firm assist in pulling together some ofthese reports. He talked about control efficiencies and segregation of duties. In the MCC there was one individual who does overlapping duties when ideally the various duties should be done by separate individuals. While it is difficult for smaller communities to have complete segregation of duties, the City should just be aware of these situations. Information technology and controls were addressed with Doug Host specifically stating the disaster recovery plan needs to be updated; password security needs to be changed periodically and computer screens should automatically go to screen saver when not being used. In testing for compliance with state statutes there was one reimbursement of a small amount that may not meet the public purpose requirement. Doug Host reviewed the items from last years management letter and noted the items have been resolved this year. Doug Host felt the City had a good management letter. 8 ...- Council Minutes: 5/29/07 Doug Host went on to summarize graphs and charts prepared by the firm. He noted there is a cushion of 8-10 months in the fund balances which shows the City is in stable condition. The net assets of the City increased in all funds. Since 2004 there has been a $24,000,000 increase in assets. He reviewed the debt liability of the City noting the revenue levels for 2005-2006 were fairly level but expenditures increased because of construction activities. Taxes and special assessments are the predominant revenue source for the City. The water fund is not generating enough funds to cover all the depreciation ofthe assets while the sewer fund is not generating enough to cover any of the depreciation costs. The recent sewer rate increase was to cover shortfalls in other government funds. Doug Host suggested the City may want to look at re-evaluating the useful life used in the depreciating equipment assets. The liquor store operations have increased their revenues over the last three years with an excess of$350,000 annually in revenue over expenses including depreciation. Brian Stumpf asked if that amount was taking into consideration fund transfers. Rick Wolfsteller indicated it was before any transfers. Brian Stumpf asked about the pension amount for the Firemens Relief Association on page 46 of the audit which showed it at $2,175 per year. He indicated the correct figure was $3,275. He also questioned the statement that the City made a contribution to the relief association which he says it does not. The City only transfers state aid to the Fire Department. Rick Wolfsteller will check when the pension increase went into effect. BRIAN STUMPF MOVED TO ACCEPT THE AUDIT REPORT FOR 2006 AS PRESENTED WlTH THE TWO ITEMS NOTED ON THE RELIEF ASSOClATION AND AUTHORIZE SUBMITTAL OF A COPY TO THE STATE AUDITOR. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. At this time the Council recessed for five minutes. 10. Consideration of adontinl!: ordinance establishinl! license requirements for rental housinl!. Jeff O'Neill commented on the proposed rental ordinance. The building department met with St. Louis Park staff to discuss the rental ordinance and forms that St. Louis Park uses. Staff also met with owners of rental property on April 10, 2007. The ordinance consists of three parts; a licensing procedure, adoption of a property management code and a fee schedule. Clint Herbst asked how often after the initial inspection a fee was charged. DJ Hennessey said it was an annual fee. Clint Herbst asked what negative impact there was for the property owner. DJ Hennessey said most of the comments were monetary complaints about having to pay a fee. Many individuals commented that it was time the City put an ordinance like this into effect. John Bergstad, Cedar Crest Apartments, stated that Cedar Crest apartments were built in 1997. He thinks there needs to be an explanation as to the way fees will be charged. For them the fee under the rental ordinance would be about $600. He stated they already have inspections by HUD and MHF A which are very extensive inspections and this would be just another expense. Clint Herbst stated the City is not looking to duplicate inspections. He suggested the property owners could supply a copy of the inspection report to the City which the City could use either in lieu of the City's inspection or to determine what items had not been inspected. John Bergstad noted that government financed housing does require more inspections. John Bergstad said that the various entities are inspecting some ofthe same 9 Council Minutes: 5/29/07 things such as fire hazards, electrical, plumbing and physical structure. Clint Herbst said he doesn't like to see duplication and suggested Gary Anderson look at the report to see what is inspected and what is not. John Bergstad said they have not dealt with this type of ordinance in any other communities. It was suggested having inspectors from the various entities work with staff to look at the inspections process. DJ. Hennessey noted some communities have different levels oflicensing. Brian Stumpf asked where the International Property Maintenance Code came from. DJ. Hennessy stated it was from the same group that generated the Uniform Building Code. Bob Viering, President of 1st Minnesota Bank stated he supported the concept behind the ordinance but he did want them to consider how long after the fee is paid and property passes inspection will the license be current. He questioned the proposed fee schedule. The people who create the problems should pay for the cost of correcting them but under this fee schedule the landlord who complies pays as well. As a bank they become owners of property through foreclosure and this would require them to be a licensed landlord. He talked about the foreclosure process and when an individual becomes a landlord. He would like to exempt banks and transitory owners, such as executors and trustees of property from the provisions of the ordinances Darwin Straw a resident who has rental property spoke saying the ordinance was designed for the protection of the general public and the renter but nothing protects the small property owner from the renter. He went on to say in Minnesota you cannot evict someone during the time frame of October through April. He wondered what protection he is given from the actions of a renter when he is unable to evict them. DJ. Hennessey said eviction is covered by Minnesota Statutes. Section 3-8E allows the landlord to start the eviction process even though they could not evict them until October. DJ. Hennessey said the intent of the ordinance is to get the landlord to work with staff to correct the problem. Clint Herbst asked if the rental license is pulled do the tenants have to move. There was some discussion on what legal recourse is available to the landlord who has a problem renter. Susie Wojchouski asked what staff brought back from their visit to St. Louis Park. St. Louis Park has a great deal of rental property and Gary Anderson indicated that St. Louis Park's policy applies to industrial and commercial property as well as rental property. Susie Wojchouski asked about the fee schedule. The fee schedule ofSt. Louis Park is close to what the City is proposing. St. Louis Park has a different rate for apartment buildings than it does for houses. As St. Louis Park saw results from the enforcement ofthe ordinance support for the ordinance grew. Clint Herbst questioned the fee structure and whether there should be exceptions from the licensing requirements. He felt these items should be looked at further. Susie W ojchouski asked if inspection applied with a change of renters. Gary Anderson said it did not. He added that some of the inspections are driven by tenant concerns which may result in an inspection. DJ. Hennessey said if the Council decides to table the rental licensing, he did recommend going with adoption of the International Property Management Code because it would give staff the tools to deal with complaints on rental property. He urged passage of at least that portion of the ordinance. Clint Herbst said unresolved issues are the fee structure, duplication of inspections on some property and whether certain property should be exempt from the provisions ofthe ordinance. Gary Anderson noted that all non-homestead property was sent a notice ofthe meeting tonight. Clint Herbst asked how a duplex that is owner occupied would be handled under the 10 Council Minutes: 5/29107 ordinance. Gary Anderson replied it would be considered as only one rental unit. Clint Herbst suggested adopting the International Property Management Code and directing Gary Anderson and DJ. Hennessey to sit down with the property owners dealing with HUD, and/or MHF A to see about reducing the number of inspections. As a result of this meeting, staff should come back with some recommendations. Brian Stumpf stated he still wanted staff to look at the fee structure. Wayne Mayer asked Tom Scott, legal counsel, ifhad an opportunity to look at the property maintenance code. Tom Scott indicated he had and he didn't see any problem with the City putting it in place. Gary Anderson noted that the City of St. Louis Park invited them to go along on their rental inspections which the Council felt this was a good idea. CLINT HERBST MOVED TO APPROVE THE ADOPTION OF CITY ORDINANCE TITLE 4, CHAPTER 4, "ADOPTION OF THE INTERNATIONAL PROPERTY MAINTENANCE CODE" AND TO TABLE ORDINANCE TITLE 3, CHAPTER 16 "RENTAL HOUSING LICENSING PROVISIONS" WITH THE UNDERSTANDING THAT STAFF WILL MAKE CONTACT WITH INDIVIDUALS PRESENT AT THIS MEETING REGARDING THEIR CONCERNS ON THE ORDINANCE AND LOOK AT THE PROPOSED FEE STRUCTURE. BRlAN STUMPF SECONDED THE MOTION. The ordinance would take effect upon publication. Gary Anderson suggested that the Council adopt both the Rental Housing Licensing provision and the International Property Maintenance Code. Brian Stumpf didn't want to do that and Tom Scott suggested tabling the entire ordinance until the next meeting. CLINT HERBST WITHDREW HIS MOTION AND BRIAN STUMPF WITHDREW THE SECOND TO THE MOTION. CLINT HERBST THEN MOVED TO TABLE UNTIL THE NEXT MEETING ANY ACTION ON THE RENTAL HOUSING LICENSING PROVISION AND THE INTERNATIONAL PROPERTY MAINTENANCE CODE. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY 11. Consideration of assessment policv for 2007 Core Street Proiect on multiple drivewavs. Brett Weiss stated that at the public hearing for the 2007 Core Street Project the proposed assessment for properties with multiple driveways was discussed. The reconstruction project includes seven properties with multiple driveways; 5 with two separate driveways and 2 with horseshoe driveways. Three options were being offered for Council consideration: 1) Charge all properties a full assessment for each driveway; 2) Exempt existing horseshoe driveways; and 3) Exempt all multiple driveways and assess the street cost per residential unit. Clint Herbst suggested handling it like the City did the Ritze property where if something develops that is greater than the number of units assessed, additional assessments would be levied. Multiple driveways are not allowed per the ordinance. The existing multiple driveways either existed prior to the ordinance or were constructed in violation of the ordinance. If the City goes the route of exempting all multiple driveways the City could go back to previous years and adjust assessments made to any other properties with multiple driveways. Bret Weiss said if the property was split the City would charge them another assessment. Bret Weiss believes there are about 7 properties involved but he will go back and do an inventory to make sure of the final number. He will bring this information back to the Council. 11 Council Minutes: 5/29/07 BRIAN STUMPF MOVED TO TABLE ACTION ON THE ASSESSMENT POLICY UNTIL WSB BRINGS BACK THE INFORMATION ON THE NUMBER OF PROPERTIES INVOLVED. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 13. Consideration of a request for an amendment to the Zoninl!: Ordinance establishinl!: off-site directional sil!:ns. Applicant: Monticello American Lel!:ion. This item was moved up on the agenda. Steve Grittman provided background on the off-site directional signs. Staff provided some ordinance language that would allow civic groups to have off-site directional signs in the public right-of-way. The applicant has asked for a number of signs but the ordinance would allow only one. The proposed ordinance defined the groups that would be allowed to have off-site directional signs and limits them to one 18" x 24" sign. It was noted the City only has jurisdiction for signs placed within City right-of- way not county or state road right-of-ways. The signs are not meant for advertising but for direction. Clint Herbst asked why staff limited it to one sign. Steve Grittman said the intent was to limit the use of the signs as much as possible. Brian Stumpf felt if there were quite a number civic groups it might be wise to limit it to one sign for each group. Brian Stumpf also asked why the Planning Commission recommendation was not included in the agenda item. The Planning Commission had recommended denial oftbe ordinance amendment. Wayne Mayer asked if labeling it civic group would open it up to religious groups. Steve Grittman indicated that it does. Wayne Mayer asked how the City could restrict it to just veteran's groups. Tom Scott stated because of first amendment rights and other issues this was a very complex topic and he didn't feel you could restrict it to a specific group such as the veterans. If the City is going to open it up it has to be open to every kind of group within that category. The off-site directional sign would be a permitted use and would not come before the Council but the applicant would have to get a sign permit. Wayne Mayer stated that veterans will, when traveling, seek out other veteran groups and he didn't think limiting them to one sign was appropriate. He felt it was imperative to connect one veteran to another. Clint Herbst asked if the ordinance could be crafted to allow "up to" a certain number of sign. The Council could then review the number of signs on each specific request. Steve Grittman said you could write it that way but there would be concerns about discrimination if each case is reviewed separately. Clint Herbst felt location would determine that. Susie Wojchouski said she felt allowing only one sign was appropriate but she questioned why there was nothing in the ordinance that restricts the off-site directional signs to civic groups within the City of Monticello. Otherwise she felt there could be a proliferation of signs. Tom Scott said you could restrict it to civic organizations within the city. John Simola suggested allowing double faced signs. Brian Stumpf pointed out that the City was being asked to amend the ordinance to allow off-site direction signs but were not being asked where the signs could be placed. Wayne Mayer asked how they came up with a size of 18" x 24". He felt a slightly larger sign (24' x30") would create greater visibility. Steve Grittman said this reflect standards set by the City a number of years ago. John Simola felt you have to be careful with the size ofthe signs because they are in the street right of way and you don't want the signs to block visibility. 12 Council Minutes: 5/29/07 Wayne Mayer asked if an ordinance amendment was the only venue to address this issue. He asked if they had considered the variance process. Steve Grittman responded the variance would require a hardship. With an ordinance amendment there would be less the chance there would be discrimination. Clint Herbst said the hardship was when the freeway went in CSAH 75 was no longer the major thoroughfare. BRIAN STUMPF MOVED TO RECOMMEND APPROVAL OF THE AMENDMENT ALLOWING UP TO THREE OFF SITE DIRECTIONAL SIGNS AT THE DISCRETION OF COUNCIL BASED ON A FINDING THAT THE AMENDMENT WILL HELP REDUCE TRAFFIC CONFUSION BY PERMITTING CIVIC INTEREST GROUPS TO BETTER ATTRACT VISITORS TO THEIR F ACILITIES. WAYNE MAYER SECONDED THE MOTION. BRIAN STUMPF AMENDED HS MOTION TO SPECIFY CITY OF MONTICELLO CIVIC INTEREST GROUPS. WAYNE MAYER SECONDED THE AMENDED MOTION. MOTION CARRIED UNANIMOUSLY. Brian Stumpf stated he would like to see the recommendation of any entity that reviews an item, like the Planning Commission be included in the agenda packet. 12. Consideration of award of bids for Core Street Reconstruction Proiect. City Proiect No.2007-01C. Bret W ciss reported that seven bids were received on the above project. There were four alternates bid in the project. These alternates include bidding corrugated high density polyethylene (HDPE) pipe or concrete pipe and to either pave the Hillcrest Park parking lot or use bituminous millings. The engineer's recommendation was to award the project to Northwest Asphalt Inc. based on using HDPE pipe and paving the Hillcrest Park parking lot for a total bid amount of$I,295,661.32. SUSIE WOJCHOUSKI MOVED TO AWARD THE PROJECT TO NORTHWEST ASPHALT, INC. BASED ON THE TOTAL BID ALTERNATE #3 HDPE PIPE AND PAVING THE HILLCREST PARK PARKING LOT FOR A TOTAL OF $1,295,661.32. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 14. Consideration of adoptin!!: ioint plannin!!: a!!:reement with Bi!!: Lake and Bi!!: Lake Township. Jeff O'Neill summarized what had transpired thus far. The direction was for the Council to work with Big Lake and Big Lake Township to develop a resolution to address a transportation study and joint planning issues. This resulted in a resolution slightly modified from what was adopted by Big Lake and Big Lake Township. The City's revision to the resolution included discussion of planning topics. The proposed resolution does state the City will withdraw their Notice of Intent to Annex. It was felt there was enough at stake to keep all parties involved. BRIAN STUMPF MOVED TO ADOPT RESOLUTION #2 WITH THE REVISIONS. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Added Items: 13 14 Council Minutes: 5/29/07 Finance Director Interviews: The Council selected Wednesday, June 6, 2007 at 7 a.m. as the date for a special meeting to interview for the Finance Director position. Omnibus Tax Bill: The Council was informed that Governor Pawlenty will veto the omnibus tax bill which would mean the tax rate established for the power plant would not go into effect. This would be a loss of 10% of the tax value. Because of this loss in valuation, the City will need look carefully at City expenditures. Memorial Day: Tom Perrault pointed out the activities conducted by the Legion in honor of Memorial Day. Freeway Fields: Wayne Mayer brought up a letter he had received regarding the condition of the ballfields at Freeway Fields and some suggested improvements. This information will be passed onto the Parks Superintendent. The Council asked that the Parks Superintendent report back to them on the comments and suggestions contained in the letter. Sidewalk: Clint Herbst had a resident ask about sidewalk from TH 25 to River Street. He asked staff to see if there was any interest in this and to monitor pedestrian activity in the area. Brian Stumpf noted that between 4:00 p.m. and 5:30 p.m. there were three non-injury accidents on TH 25 between Monticello Ford and Maus Foods. He wondered what it would take to get MnDOT to do something about the traffic conditions on TH 25. Wayne Mayer suggested that with Big Lake, Monticello and possibly Sherburne and Wright Counties working on transportation issues they might carry more clout with MnDOT. 15. Consideration of approvin2 pavment of bills for Mav. 2007. TOM PERRAULT MOVED TO APPROVE PAYMENT OF THE BILLS. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 16. Adiourn. The meeting adjourned at 11 :20 p.m. ~ ~S~Q' Recording Secretary