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City Council Minutes 10-23-1995MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, October 23, 1995 - 7 p.m. Members Present: Brad Fyle, Shirley Anderson, Clint Herbst, Brian Stumpf, Tom Perrault Members Absent: None 2. Annroval of ,n , Pe of th r .e ar meeting.}ield Octnber 9, 1995. AFTER DISCUSSION, A MOTION WAS MADE BY TOM PERRAULT AND SECONDED BY CLINT HERBST TO APPROVE THE MINUTES OF THE MEETING HELD OCTOBER 9, 1995. Motion carried unanimously. 3. consideration of adding ite s to the agenda. A, i As noted in the staff report to Council, Bret Weiss and his new firm, WSB and Associates, Inc., requested that the City consider appointing WSB as the City Engineer. Staff reported that it would be beneficial to have Bret's input on a number of unfinished projects and that hiring a second engineer has been discussed in the past; however, replacement of OSM as the City Engineer had not been previously discussed. Councilmember Herbst questioned whether it would be difl"icult to have two engineering firms designing projects within the city and if OSM had additional engineers available if needed. Although Herbst felt WSB would do a good job for the City, it was his view that OSM should be given the chance to prove itself. Chuck Lepak of OSM stated that it would be possible for two engineering firms to design projects within the city; but if the need arose, OSM could appoint additional engineers to work in Monticello. Assistant Administrator O'Neill noted that the City should consider the person performing the work in additional to the overall firm. After working with Weiss for five to seven years, it was O'Neill's view that Weiss has been an asset to the community in that he has worked well with developers, residents, and the entire City staff. O'Neill also noted that Monticello had a very busy construction season this year, and much of the credit should be given to Weiss for how well the projects were handled. Page 1 Council Minutes - 10/23/95 Bret Weiss stated that one important aspect of engineering services is continuity; and after working with Monticello far five years, he is familiar with the residents, developments, and the municipal state aid system. Appointing WSB as the City Engineer would continue to provide Monticello with the continuity to which it has become accustomed. Councilmember Shirley Anderson stated that perhaps the City should hire two engineering firms. It was her view that Weiss's knowledge of the city is very valuable, and he has performed well and has excellent communication skills; therefore, the City should continue to contract with his firm in some capacity. Councilmembers agreed that they have also been impressed with Weiss's performance as City Engineer. AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY BRIAN STUMPF TO CONTINUE WITH OSM AS THE CITY ENGINEER AND APPOINT WSB AND ASSOCIATES, INC., AS THE SECOND ENGINEER. Motion includes authorization for staff to delegate engineering work to each firm at their discretion; and after becoming more familiar with WSB, Council can discuss at a later date whether to appoint WSB as the City Engineer. Motion carried unanimously. 4. None. 5. Consent agenda. Councilmember Herbst requested that item 5C be removed from the consent agenda for discussion, and Councilmember Perrault requested that item 5B also be removed from the consent agenda. A. ;enter 3rd Addition. Recommendation: Approve the final plat of the Monticello Commerce Center 3rd Addition subject to the following conditions: 1. Execution of an easement document providing storm water easements on the property adjacent to the Monticello Commerce Center 3rd Addition. _ 2. Final plat approval is contingent on execution of a development agreement which primarily outlines the proposal for designing and constructing Dundas Road utilities. Page 2 Council Minutes - 10/23/95 A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY SHIRLEY ANDERSON TO APPROVE ITEM 5A OF THE CONSENT AGENDA AS RECOMMENDED. Motion carried unanimously. B. (~pnsideration of purchasing council chamber chairs. Councilmember Perrault requested that this item be researched further, as it was his view that $75 per chair was too expensive. It was the consensus of Council to table purchase of council chamber chairs until further researched by Perrault and the City Administrator. C. Consideration of Meadow Oak pond outlet project change order-- Project 93-12C. Councilmember Herbst requested that expenses such as the $8,000 item on the proposed change order be discussed by Council prior to the work being performed. Public Works Director John Simola noted that extending the sanitary sewer across Dillard Avenue was suggested by the Mayor and recommended by the engineer. Staff concurred that extending the sanitary sewer at this time would avoid the cost of tearing up Dillard Avenue in the future if extension is needed. AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY SHIRLEY ANDERSON TO APPROVE CHANGE ORDER NO. 1 FOR THE MEADOW OAK OUTLET, PROJECT 93-12C, IN THE AMOUNT OF $16,379.84. Motion carried unanimously. 6. R,blir Hraring--Consideration of adov .inn of pmpos d ass ssm n . rnll for d~l;n~ent nt lity b'lle a d c rtificatinn of assessment mll to CoL ty Auditor. Mayor Fyle opened the public hearing. City Administrator Rick Wolfsteller reported that the proposed assessment roll contains utility billing accounts which are delinquent mare than 60 days. 1t was recommended that the delinquent accounts be put on an assessment roll for certification in 1996 at an interest rate of 8%. There being no comment from the public, Mayor Fyle closed the public hearing. Page 3 Council Minutes - 10/23/95 AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY TOM PERRAULT TO ADOPT THE ASSESSMENT ROLL FOR THE DELINQUENT CHARGES AS PRESENTED. Motion carried unanimously. SEE RESOLUTION 95-59. 7. Public Hea~ng--Consideration of approving on-sale liquor license transfer-- J.P.s Annex. Mayor Fyle opened the public hearing. City Administrator Wolfsteller reported that Herbert Gutisnecht, Jr., of New Brighton applied for the on-sale liquor license currently granted to J.P.'s Annex to be transferred to his name, as he is purchasing the business from John Purmort. There being no comment from the public, Mayor Fyle closed the public hearing. AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY TOM PERRAULT TO APPROVE THE TRANSFER OF THE CURRENT ON-SALE LIQUOR LICENSE FOR J.P.'S ANNEX TO HERBERT GUTISNECHT, JR., FOR THE BAR AND RESTAURANT. Motion carried unanimously. $, n constructed by the School District. Assistant Administrator O'Neill reported that under the proposed ice arena program, the School District would be responsible for funding and constructing the arena, including all necessary purchases to allow full operation of the facility. Long-term replacement and maintenance expenses associated with the structure and parking lot would also be the responsibility of the School District, along with insurance for the building and summer ground maintenance. The cost of long-term replacement of the refrigeration system would be split 50/50 between the Schoal and the City. The School would retain ownership of the facility; however, it would enter into a long- term $1-per-year lease agreement with the City. City responsibilities would include managing and operating the facility on a day-to-day basis, including hiring of full-time and part-time staff, scheduling, operating the zamboni, providing liability insurance, and replacement of the original zamboni and one-half the cost of the refrigeration system. The policies governing usage of the facility would be administered by the City but developed jointly by the City and School District. Under the proposed program, the School District would pay the full hourly rate for use of the Page 4 Council Minutes - 10/23/95 facility after regular school hours. During the school day, the School District would be allowed to use the facility at no charge for community education or physical education activities; however, the School District would have to provide supervision and pay for any out-of-pocket expenses incurred by the City during the school day operations. The School would also be able to use the facility for dry-floor uses at no charge; however, paying customers for dry-floor rental would receive priority over non-paying School uses. Monticello School District Superintendent Shelly Johnson gave a brief overview of what amenities the arena would likely include such as a team meeting room, a family room with kitchenette, locker room, and concession area. An olyrnpic size ice sheet may also be considered. Johnson noted that the structure would meet all city codes and would not require any variances. O'Neill reviewed the proposed budget and noted that total ice time revenue for the arena was estimated at $156,200, which was based on approximately 1,263 hours of rented ice time and other various revenue sources. Based an budgets provided by five other arenas, he and Wolfsteller estimated expenses at $154,100, leaving an estimated net revenue of $2,100. Vance Ellis, Vice President of the Monticello Hockey Association, noted that the association has existed for 20 years and is comprised of more than 100 families. He noted that the largest amount of revenue would come from renting ice; however, dry-floor activities during the summer could include home shows, craft shows, indoor soccer, trade shows, etc. In addition, the arena would have a positive effect on the community, as business would increase For motels, restaurants, and gas stations. It was Ellis's view that the risk to the City for managing the arena would be low. The Assistant Administrator went on to report that the Parks Commission recommended that Council agree to operate the arena based an the following reasons: 1. The School District is the proper body for providing the underlying funding for the arena because it results in taxation of the user base of the facility. 2. The arena is likely to cash flaw when long-term maintenance costs and debt service are not included in the budget as proposed under the City/School plan. 3. The arena would result in economic benefits to city commercial businesses. Page 5 Council Minutes - 1D/23/95 4. The need far this type of recreation service has been sufficiently demonstrated to justify a referendum on the topic. The area is ripe for development of an ice arena given the demand for ice time from nearby hockey associations. 5. The arena will make Monticella a more attractive community, which will benefit housing stock and real estate values. Councilmember Herbst stated that the projected revenue from signs and banners ($3,000) should be eliminated from the proposed budget. Because this type of advertising revenue is prohibited at the baseball fields, it should also be prohibited at the arena. Herbst also noted his concern that other nearby communities are considering construction of an arena, which could greatly reduce the number of ice time hours Monticello would be able to sell. It was his view that perhaps the School District should construct and operate the facility so that all taxpayers are responsible for all debt incurred rather than city residents having to pay possible additional debt incurred during operations. Mayor Fyle noted that the financial risk to the City was very small relative to the community gain and that he supported City participation in the project for reasons noted by the Parks Commission. City Attorney Paul Weingarden asked what length of time the School is requesting that the City commit to managing the arena, and would the City have the option of discontinuing operation of the facility in the event it failed. Weingarden also asked if restrictions would be placed on the fee charged for ice time, nr could the City increase the fee in order to cash flow the facility. Superintendent Johnson stated that a 25-year commitment would be ane alternative that could be considered; however, the City would nat have the option to commit to less than 25 years. In regard to the fee structure, Johnson stated that the fee would have to remain competitive and shauld be reviewed by a joint panel and the School as owner of the facility. AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY SHIRLEY ANDERSON TO DENY APPROVAL OF THE PLAN TO ENTER INTO A COOPERATIVE AGREEMENT WITH THE SCHOOL DISTRICT FOR PARTICIPATION TN OPERATING EXPENSES OF AN ICE ARENA. Voting in favor: Clint Herbst, Shirley Anderson, Tom Perrault. Opposed: Brad Fyle, Brian Stumpf. Motion passed. Page 6 Council Minutes - 10/23/95 9. City Administrator Wolfsteller reported that since the previous Council meeting, he discussed with Mr. Kruse the acquisition of his Fi-acre parcel adjacent to the wastewater treatment plant; however, a firm selling price had not been reached. Since the selling price of the land had not decreased from the half-million dollar amount, the City must decide whether it is in the best interest of the community to obtain the property and whether to continue negotiations or begin eminent domain proceedings. City Attorney Paul Weingarden explained the procedure for acquiring land for public purpose under normal condemnation, which takes approximately six to eight months. Under this procedure, the City can abandon the condemnation if unhappy with the value determined by the commissioners, or the decision could be appealed to jury. If the proceeding is abandoned, the City would be required to pay the other party's cost. Once a jury decision is reached, the City no longer has the option of abandonment, and the value of the property must be paid. Weingarden went on to explain the quick take condemnation procedure, which would allow the City to obtain the property within 90 days; however, the City would not be able to back out of purchasing the property if it decided the land was no longer needed. Public Works Director John Simola stated that it is staff's recommendation that the City acquire the property regardless of whether the new plant uses the SBR technology or the oxidation ditch. Without the additional property, the City would have to pay the cost of easements and/or sheetpiling, and it would be in the best interest of the City to design the plant using the additional 6 acres. Councilmembers Anderson and Herbst noted that purchasing additional land was not proposed when expansion of the plant was discussed last year; therefore, it was their view that the new plant should be constructed on the current site. Herbst also suggested that the Council table this item until after the SBR plant tours scheduled for October 24 and 25. AFTER DISCUSSION, A MOTION WAS MADE BY BRAD FYLE TO BEGIN THE QUICK TAKE PROCESS OF ACQUIRING THE 6-ACRE PARCEL ADJACENT TO THE WASTEWATER TREATMENT PLANT. Motion failed for lack of a second. A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY TOM PERRAULT TO AUTHORIZE THE CITY ATTORNEY TO COMMENCE NORMAL EMINENT DOMAIN PROCEEDINGS TO ACQUIRE THE 6-ACRE KRUSE Page 7 Council Minutes - 10/23/95 PROPERTY. Voting in favor: Brian Stumpf and Tom Perrault. Opposed: Shirley Anderson, Clint Herbst, and Brad Fyle. Motion failed. It was the view of Anderson and Herbst that the plant expansion should occur on the current site. It was Fyle's view that the quick take process should be used to acquire the property. AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY CLINT HERBST TO TABLE CONSIDERATION OF EMINENT DOMAIN PROCEEDINGS UNTIL THE RESULTS OF THE ADDITIONAL TESTING ARE AVAILABLE. Motion carried unanimously. 10. City Administrator Wolfsteller explained that the City has had health insurance coverage For its employees through Principal Mutual Insurance Company (formerly known as Bankers Life) for the past 15 years, which includes health, dental, life, and short-term disability insurance. State statutes require that when group insurance coverage exceeds 25 employees, the City is required to advertise for bids for insurance coverage once every 6 years. The City then has the choice of analyzing the proposals and selecting the coverage which is most appropriate. This year the City exceeded 25 employees, and specifications were prepared outlining the City's current coverage along with an advertisement for bids that was published in the local newspaper. The City's insurance agent, Dan Carlson, also solicited quotations from a number of independent insurance companies. Wolfsteller went on to note that in response to the advertisement, the City did not directly receive any proposals; however, Dan Carlson did receive seven quotations from companies he had solicited. A11 of the quotations received were the companies' generic basic plans and were technically non- responsive bids that did not try to meet the specific specifications. AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY CLINT HERBST TO REJECT ALL BIDS ASNON-RESPONSIVE FOR FAILING TO MEET THE MINIMUM SPECIFICATIONS OF THE CITY AND TO CONTINUE WITH ITS PRESENT GROUP HEALTH INSURANCE COMPANY, PRINCIPAL MUTUAL. Motion carried unanimously. 11. to the Wastewate Treatment Plant Facilities Plan. City Administrator Wolfsteller reported that on Monday, October 16, the Mayor requested that the City Administrator publish a notice for a special meeting and public hearing on an amendment to the Wastewater Treatment Plant Facilities Plan. It is expected that the week-long testing at the plant Page 8 Council Minutes - 10/23/95 and Sunny Fresh Foods in regard to fluctuation of flows and loads will be completed an October 22, and the results will be available by October 30, which will be passed on to HDR and selected manufacturers of SBR equipment. Wolfsteller also noted that additional SBR plans will be toured on October 24 and 25 for continued evaluation of the SBR technology. After discussion, it was the consensus of Council to set a special Council meeting for Wednesday, November 1, 1995, at 7 p.m., for the purpose of conducting a public hearing on an amendment to the Wastewater Treatment Plant Facilities Plan. 12. consideration of a uroposal to amend,~n,Q„rQ,;~:ctve covenants for the F~astwood Knoll subdivision. Assistant Administrator O'Neill reported that some relatively minor issues have arisen in regard to the restrictive covenants for the Eastwood Knoll subdivision. Council was asked to adjust the covenants to allow for flexibility in applying the 20% brick requirement if a unique architectural style is not complemented by the brick treatment. Tn addition, it was proposed that the definition of a "modified two-story" outlining the minimum square foot requirements be added to the covenants. It was also noted that changes to the covenants must be agreed to by all property owners in the Eastwood Knoll subdivision. AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY SHIRLEY ANDERSON TO ADOPT THE AMENDMENTS TO THE RESTRICTNE COVENANTS FOR EASTWOOD KNOLL AS OUTLINED. Motion carried unanimously. 13. Consideration of bills for the month of October 1995. AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY SHIRLEY ANDERSON TO APPROVE THE BILLS FOR THE MONTH OF OCTOBER AS PRESENTED. Motion carried unanimously. There being no further business, the meeting was adjourned. ~~~~y~ ~~ Kar n Daty Office Manager Page 9