City Council Minutes 12-14-2009MINUTES
REGULAR MEETING — MONTICELLO CITY COUNCIL
Monday, December 14, 2009 — 7 p.m.
Present: Clint Herbst, Tom Perrault, Glen Posusta, Brian Stumpf, Susie Wojehouski
Absent: None
1. Call to Order and Pledge of Allegiance
Mayor Herbst called the meeting to order at 7 p.m. and declared a quorum present. The
Pledge of Allegiance was recited.
2. Approval of Minutes - November 23, 2009 Regular Meeting
SUSIE WOJHOUSKI MOVED TO APPROVE THE MINUTES OF THE NOVEMBER 23,
2009 REGULAR MEETING AS CORRECTED. TOM PERRAULT SECONDED THE
MOTION. MOTION CARRIED 5 -0.
3. Consideration of adding items to the agenda
The following items have been added to the consent agenda: 5P(2) Lions Gambling Permit.
4. Citizen comments, public service announcements and Council updates
a. Citizen Comments:
1) Idella Ziegler, Friends of the Library member, talked about what the Library
means to Monticello community. She thanked those that attended the 100`'
anniversary celebration. She noted that the Library brings children's
programming, internet use, and more. The City has been a member of Great
River Regional Library system since 1969 with a successful partnership between
different government agencies.
b. Public Service Announcements:
1) MCC New Year's Eve (12/31) — MCC Director Kitty Baltos explained that the
New Year's Event is being cancelled to low interest.
2) Holiday hours for city buildings - Angela Schumann noted the holiday hours for
MCC, Moose Sherritt Arena, City Hall, Public Works, and DMV — all will be
posted at buildings and on the website and Channel 12.
C. Council Updates:
1) MnDOT Bridge Replacement Project - Bruce Westby noted that the I -94 bridge
project has been closed down for the season. Next spring the project will
continue with lane closures as they rebuild the lanes. He will give an update
again at that time. There is room for snowmobiles to maneuver around the
construction area. Brian Stumpf asked about snow removal. Bruce noted that the
plows have to move the snow out of the barricades and out of the way. Bruce
noted that the public should contact the City if the notice problems in that area.
2) Liquor Store — Clint Herbst stated that he had heard there was an issue with the
credit card processing and asked how the Liquor Store was handling this.
Randall noted that the Finance Dept took care of correcting the problems and was
taking care of reimbursing for overdrafts or other charges. Part of the problem
was due to the software on one cash register that had never gotten upgraded some
City Council Minutes — December 14, 2009 Page 1
years ago. Manager Randall Johnson updated Council on financial status of the
Liquor Store. Trends have been showing increases in sales since the last time he
spoke to Council. He talked about the first ever beer tasting event and the Fall
wine tasting event. Both had good turnouts and resulted in corresponding sales
after the event. Increase of 38% (over $18,000) for the two weeks following the
Fall wine tasting. Increased sales over the Thanksgiving weekend in liquor, beer
and wine of approximately 10% over prior year. January 1 through December 1
showed increases in all those areas from last year and he expects that the sales for
the upcoming holidays will also show increases. Sales will total over a record $4
million for the year.
Randall noted the upcoming Holiday hours: 9 a.m. to 4 p.m. Christmas Eve and 9
a.m. to 8 p.m. on New Year's Eve and closed both Christmas and New Year's
days.
Randall was asked what he is doing different that might account for the increases.
Randall summarized: work on retaining customers, soliciting new customers,
proactive with beer sales, email advertising featuring wine and beer specials, re-
merchandising to make store more attractive, and gift packs for the holidays.
5. Consent Agenda
A. Consideration of approving new hires and departures for City departments.
Recommendation: Ratify new hires and departures for MCC.
B. Consideration of approving new 5 -year lease agreement with Christian Social Services,
Inc. for the food shelf and clothing center. Recommendation: Approve the 5 -year lease
agreement.
C. Consideration of adopting Resolution #2009 -75 to accept a contribution of $250 from
Tom Perrault to go into the General Fund. Recommendation: Adopt Resolution #2009-
75 to accept contribution.
D. Consideration of adopting Resolution #2009 -76 approving final payment to LaTour
Construction and accepting work on Chelsea Road from County Road 18 to Fallon
Avenue, City Project No. 06C031. Recommendation: Adopt Resolution #2009 -76 to
accept project and approve final payment to LaTour Construction, subject to receipt of
final paperwork.
E. (Removed from consent agenda)
F. Consideration of adopting Resolution #2009 -74 approving final payment to Progressive
Stucco and accepting siding and stucco work on the Monticello Fire Hall, City Project
No. 09C009. Recommendation: Adopt Resolution #2009 -74 to accept project and
approve final payment to Progressive Stucco, subject to receipt of final paperwork.
G. Consideration of adopting Resolution 42009 -78 approving final payments to contractors
Morton Buildings, Wes Olson Electric, and Purcell Plumbing and Heating, and accepting
work on the FiberNet Monticello Garage, City Project No. 09C006. Recommendation:
Adopt Resolution #2009 -78 to accept project and approve final payments to contractors,
subject to receipt of final paperwork.
City Council Minutes - December 14, 2009 Page 2
H. Consideration of authorizing purchase of vehicles for FiberNet Monticello.
Recommendation: Approve purchase of two vans from Morrie's Buffalo Ford for a total
of $38,676.
I. Consideration of establishing a sales account manager position with FiberNet Monticello.
Recommendation: Approve establishing the Account Manager position.
Consideration of authorizing sale of the 1973 Chevrolet Fire Truck through an auction
service. Recommendation: Authorize sale of the 1973 Fire Truck.
K. (removed from consent agenda)
L. Consideration of renewing contract with Peterson - Grimsmo Chapel for cemetery
caretaker services at Riverside Cemetery. Recommendation: Approve renewal of
agreement with Peterson - Grimsmo Chapel for cemetery caretaker services at a cost of
$350 per month.
M. Consideration of approving renewal of pawn shop license for Michael Helm dba
Monticello Pawn, Gun and Bargain Center, 1219 TH 25. Recommendation:
Approve renewal of pawn shop license for Michael Helm dba Monticello Pawn,
Gun and Bargain Center.
N. (removed from consent agenda)
O. Consideration of approving 2010 Wright County Annual Highway Maintenance
agreement. Recommendation: Approve the 2010 Annual Highway Maintenance
Agreement with Wright County.
P. Consideration of adopting Resolution 92009 -73 approving a Gambling Premises Permit
application for Monticello Youth Hockey Program to conduct gambling at Chatter's
Restaurant and Bar. Recommendation: Adopt Resolution #2009 -73 for a gambling
permit for Monticello Youth Hockey.
P(2). Consideration of adopting Resolution #2009 -79 approving a Gambling Premises Permit
application for Monticello Lions Club to conduct gambling at Monticello Liquors.
Recommendation: Adopt Resolution #2009 -79 for a gambling permit for Monticello
Lions Club.
Q. (removed from consent agenda)
BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH ADDITION OF
ITEM P(2) AND REMOVAL OF ITEMS E, K, N AND Q. SUSIE WOJHOUSKI SECONDED
THE MOTION. MOTION CARRIED 5 -0.
6. Consideration of items removed from the consent agenda for discussion
#SE. Consideration of adopting Resolution #2009 -77 approving final payment to R. L. Larson
Construction and accepting work on I -94 /County Road 18 Interchange, City Project No.
04C001
City Council Minutes— December 14, 2009 Page 3
Bruce explained the purpose of this item is to approve final payment in amount of $167,454.35 to
RL Larson Construction and accept the I -94 Interchange and County Road 18 project. He
inquired as to whether Council might have any questions or comments.
SUSIE WOJCHOUSKI MOVED TO ACCEPT ALTERNATIVE #1 TO ADOPT RESOLUTION
#2009 -77 FOR APPROVAL OF FINAL PAYMENT OF $167,454.35 TO R. L. LARSON
CONSTRUCTION, INC., SUBJECT TO RECEIPT OF FINAL PAPERWORK, AND ACCEPT
THE PROJECT. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0.
#5K Consideration of appointing Ron Hackenmueller as Chief Building Official
Glen Posusta explained that he pulled this item because he understood that the extra vacation
accrual was to start after 1 year rather than 6 months. HR Director Tracy Ergen explained that
she had discussed an extra five days of vacation with Hackenmueller and the extra vacation would
not start to accrue until after 6 months in the position. Hackenmueller had requested this as part
of the move. Tracy noted that he would be eligible for the next vacation step in about a year.
Council noted that they would prefer to bring this up for discussion after the 6 months
probationary period.
GLEN POSUSTA MOVED TO ACCEPT ALTERNATIVE #1 TO APPROVE THE
APPOINTMENT OF RON HACKENMUELLER AS CHIEF BUILDING OFFICIAL, WITH
CONSIDERATION OF ADDITIONAL VACATION ACCRUAL AFTER 6 MONTH
PROBATIONARY PERIOD. BRIAN STUMPF SECONDED THE MOTION. MOTION
CARRIED 5 -0.
#5N. Consideration of preliminary approval of fire contract renewals with the City of Otsego
and Silver Creek Township
Clint Herbst asked for verification on the proposed cost of $51 per parcel. He thought that might
have to be increased due to the recent purchase of a new fire truck. Tom Kelly explained that the
previous contract had an inflation factor that kept the contract up to the cost of providing service
and included the estimated cost of a new fire truck. Tom Kelly noted that the formula for
calculating the cost for services has been in use for a number of years and appears to be providing
the revenue needed.
Brian Stumpf also noted that Tom Kelly, Fire Chief Steve Joerg, and himself had met with
Monticello Township a week ago to discuss fire protection services. It is proposed to set up a 2
year contract with them at the $5 ]/parcel rate. The Township is reviewing the proposal. Susie
Wojchouski asked why the Township is receiving free service. It was explained that the
dissolution of the Joint Fire Board led to an agreement for 6 years of service at no charge in
exchange for the assets they turned over to the City. That agreement will expire in January of
2011.
BRIAN STUMPF MOVED TO ACCEPT ALTERNATIVE #1 TO APPROVE RENEWAL OF
FIRE CONTRACTS WITH THE CITY OF OTSEGO AND TOWNSHIP OF SILVER CREEK
FOR 2010 THROUGH 2012 AT A COST OF $51 PER PARCEL. TOM PERRAULT
SECONDED THE MOTION. MOTION CARRIED 5 -0.
#5Q. Consideration of approving a contractor for repairing newly discovered hailstorm -
related damage on various City buildings (costs covered entirely by insurance)
City Council Minutes — December 14, 2009 Page 4
Glen Posusta noted that he was somewhat concerned about a contractor receiving a percentage of
the repairs and whether the repairs should be done without using local contractors. He was also
concerned that we are asking the League of MN Cities (LMC) to pay for repairs that might not be
needed. Bob Paschke explained that a LMCIT adjustor is actually reviewing the damages and has
concurred with the consultant that the damages should be repaired. The consultant from Pro
Contracting Consultants (PCC) has been very helpful in providing assistance in coordinating the
review of the damages and it is felt that they would ensure the job would be done correctly. Jeff
O'Neill noted that the City would make the final decision as to whether the repairs should be
made after we receive the report from the LMCIT adjuster. Glen Posusta stated that he does not
have a problem with the repairs as long as the LMC is doing the reviews of the damages and will
make the final report.
BRIAN STUMPF MOVED TO ACCEPT ALTERNATIVE #1 FOR PRO CONTRACTING
CONSULTANTS TO SERVE AS GENERAL CONTRACTOR FOR STORM DAMAGE
REPAIRS ON STRUCTURES AS APPROVED BY LMCIT, THAT PCC ABIDES BY
PURCHASING PRACTICES OF THE CITY, THAT LOCAL CONTRACTORS ARE
INCLUDED IN THE BID PROCESS, AND APPROVAL FOR FURTHER REPAIRS ARE
PRESENTED TO COUNCIL BEFORE WORK IS DONE. GLEN POSUSTA SECONDED
THE MOTION. MOTION CARRIED 5 -0.
7. Public Hearing - Consideration of denial of Rental License and authorization for City
Attorney to take action related to non - compliance with licensing requirements
DJ Hennessey explained that this item is being brought to Council to review three properties in
violation of the rental licensing ordinance. DJ discussed the status of the properties. Glen
Posusta asked about the home that is in foreclosure and would the City be able to do anything
regarding the rental license. Attorney Joel Jamnik explained that the City could still enforce the
ordinance through the financing company. Clint Herbst asked why the process takes so long to
bring these properties to a hearing. DJ explained that the building department has been working
to catch up on the rental licenses and inspections since starting the program in 2007. There were
delays in keeping up with the rental inspections due to the hailstorm in 2008 and they are now
back on track.
Susie Wojehouski asked if the City can prosecute all 3 properties under the housing ordinance
including the one under foreclosure. Joel reiterated that the City can prosecute the financing
company that is in charge of the property. Brian Stumpf asked if the City could put some kind of
a deadline on the process if the City files a criminal complaint to try to get a resolution on the
problems. Joel noted that this would come back to Council in a month or two as part of the
review process.
Mayor Herbst opened the public hearing.
James Groetken, tenant at 2661 Oak Ridge Dr wanted to know what happens if they get evicted
due to imminent or life safety dangers. Would they lose the money they have been paying to a
management company /landlord for rent? Glen Posusta suggested that perhaps he would want to
talk to the management company that is collecting the rent. Since the property is under
foreclosure, the landlord should be able to address his questions. Joel Jamnik suggested that the
renter look into tenants' rights before he withholds any rent payments or puts the money into
escrow. Renter asked if he could have the City come in and do a rental inspection. It was noted
that would be acceptable as the renter can sign off on the inspection.
City Council Minutes — December 14, 2009 Page 5
Mayor Herbst closed the public hearing.
Brian Stumpf asked if the City would be obligated to evict a tenant if they found a life threatening
situation. Joel noted that would be up to the City to look at but there would not be an obligation
to evict.
Joel noted that one of the other owners contacted him this afternoon and stated that she has had
health problems and is looking at selling the property. She wanted to know if she could work
with the City to rectify the situation.
BRIAN STUMPF MOVED TO ACCEPT ALTERNATIVE #2 FOR ALL THREE
PROPERTIES, DIRECTING STAFF TO PROCEED WITH CRIMINAL COMPLAINTS AND
TABLE ACTION ON DENIAL OF RENTAL LICENSE PENDING OUTCOME OF LEGAL
ACTION. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 5 -0.
S. Public Hearing — Consideration of adopting Resolution #2009 -72 to approve final tax levy
and 2010 budget
Tom Kelly summarized the 2010 budget process starting in June 2009 with staff preparation,
council workshops and adoption of a preliminary levy in September. He explained that the State
no longer requires a Truth and Taxation hearing if levy increased more than a certain percentage.
Instead, cities are to hold a public hearing as part of the process of setting a final tax levy. Tom
Kelly presented a powerpoint showing the proposed budget highlights with an 8.28% decrease in
expenditures from 2009. Tom Kelly reviewed various areas where the City is reducing budgets in
various funds. Although the City is supposed to be receiving additional Transition Aid due to a
calculation error, that is not included in the budget in the event that amount would be eliminated
at the state level. Tom Kelly noted that the budget will not be balanced using reserves, as has
been done in some prior years. The tax levy would be proposed at $7,644.272 which is slightly
lower than the preliminary levy that was adopted. Current tax capacity is listed as $16,653,416
from the County. With additional capacity from 3 decertified TIF districts, the total tax capacity
would be slightly higher. Tom Kelly explained the effect on city property taxes would generally
show a decrease in residential and commercial taxes. At the proposed levy, Monticello would
have the 7°i lowest levy in Wright County which is better than it has been in past years. Jeff
O'Neill noted that this includes garbage collection in our tax rate, which most other cities do not
provide. Tom Kelly compared the value of city taxes to other costs a taxpayer might have for
living expenses.
Mayor Herbst opened the public hearing.
Jean Farraud, 4758 Eagle Ridge Lane, asked how much revenue has been decreased due to loss of
property values and was wondering about the effect on City's reserves. Tom Kelly explained that
the City's total tax capacity is slightly lower than in the past. However, the City has worked hard
to decrease the tax levy which should help in keeping taxes down and most people should see a
tax decrease. Clint Herbst explained that the amount of taxes that the City is proposing to raise is
calculated on the total tax capacity. If the tax capacity decreases, it could cost taxpayers more
money. Since the City has also decreased the amount that it intends to raise, this should help
offset the decrease in property values in most cases. Ms. Harraud asked about the use of reserves
that were mentioned in the slide presentation. Tom Kelly noted that some of the City's reserves
come from payments derived from projects, and it is proposed to use a small amount of the
reserves from those sources to offset costs for some 2010 projects and programs.
City Council Minutes — December 14, 2009 Page 6
Mayor Herbst closed the public hearing.
Susie request that Council should consider restoring some of the funding for Library
programming. She has heard from many people in this regard.
GLEN POSUSTA MOVED TO ACCEPT ALTERNATIVE #1 TO ADOPT RESOLUTION
#2009 -72 SETTING THE TAX LEVY AT $7,648,272 AND THE 2010 BUDGET AT
$34,891,113, WHICH RESTORES $4000 FOR LIBRARY PROGRAMMING. SUSIE
WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED 5 -0.
9. Consideration of approving the 2010 -2014 Capital Improvement Plan for the City of
Monticello
Tom Kelly noted that the Capital Improvement Plan (CIP) is basically the same that was
presented to Council previously. He noted a few changes that have been made in the final draft.
He also noted that capital items would be brought to Council for approval before purchases are
made. Clint Herbst noted he is in favor of adopting the plan but it should be recognized as a
guide. Jeff O'Neill asked Tom Kelly to explain how the CIP works in putting together the
budget. Tom Kelly explained that each department looks at their needs and makes
recommendations. Then adjustments are made to stay within the annual budget that is adopted. It
serves as a guide for future purchases and tracks equipment as it may need to be replaced. This
plan will aid in future long range planning and could also help the City maintain a good bond
rating..
SUSIE WOJCHOUSKI MOVED TO ACCEPT ALTERNATIVE #1 TO APPROVE THE 2010-
2014 CAPITAL IMPROVEMENT PLAN. TOM PERRAULT SECONDED THE MOTION.
MOTION CARRIED 5 -0.
10. Consideration of authorizing City staff to facilitate Interim (6 month) Outdoor
Storage of Large Commercial Vehicles at 101 Chelsea Road (old bowling alley site)
Clint Herbst explained what he would like to see if the old bowling alley were to be developed as
a parking site. The City could keep the lot plowed and those interested in parking large
commercial vehicles in that site would have to register at City Hall. They would have to be city
residents in order to use the lot. He does not think the City should provide electric hookups.
Susie Wojehouski asked if there would be any liability on the part of the City. Brian Stumpf
suggested that users should sign a form releasing the City from liability and could do that when
they register. Brian Stumpf said that he does not understand why the City would set this up as an
interim use and then take it away after a short time.
CLINT HERBST MOVED TO AUTHORIZE THE CITY TO ISSUE SHORT TERM PARKING
PERMITS, AT A COST OF $25 PER VEHICLE PER MONTH (PREPAID FOR 6 MONTH
SEASON), FOR LARGE COMMERCIAL VEHICLES TO PARK AT 101 CHELSEA ROAD
(OLD BOWLING ALLEY LOT). SUSIE WOJCHOUSKI SECONDED THE MOTION.
MOTION CARRIED 5 -0.
11. Consideration of authorizing the firm of Flaherty Hood to provide services regarding
Legislative Advocacy pertaining to the permanent storage of Nuclear Waste at the
Monticello Nuclear Generating Plant (MNGP)
City Council Minutes — December 14, 2009 Page 7
Jeff O'Neill introduced this item and the request for authorizing an agreement with Flaherty Hood
for assistance with legislation regarding storage of nuclear waste. He noted that the Federal
Government was working on a storage site for 22 years and then abandoned the plans this year.
This proposal would combine efforts on behalf of Red Wing and Monticello. Funding would be
capped at $75,000 for Monticello and $110,000 for Red Wing for Flaherty Hood to represent the
two cities at the legislature. Joe Sullivan of Flaherty Hood introduced himself and explained that
they have been working for Red Wing for about 2 months so far. Brian Stumpf asked how much
he would anticipate the costs to run and would they be coming back to the City when they reach
$75,000. Sullivan explained that the $75,000 would be a cap for the year. If they reach that
amount, they would not bill beyond that. He explained that the problem with permanent storage
of the nuclear waste cannot be ignored and has been put off for many years by the Federal
government. Clint Herbst stated that it is mind boggling that the Yucca Mountain site, which is
desert land, was rejected but they are willing to let nuclear waste be stored in vulnerable areas.
Glen Posusta noted that the Federal Government is charging Xcel Energy a fee for finding a site
for nuclear waste but is not using the money for the stated purpose. Glen Posusta asked how
Flaherty Hood is approaching this — will it be as a lawsuit or for legislative action? Sullivan
explained that they are advocating for legislation action and will be doing a media campaign
regarding the issues surrounding nuclear waste. Jeff O'Neill asked how much time he would
estimate that Council and /or City staff would need to commit for legislative action. Sullivan said
they would expect visibility at some legislative sessions and support from staff.
GLEN POSUSTA MOVED TO ACCEPT ALTERNATIVE #1 TO APPROVE A CONTRACT
WITH THE FIRM OF FLAHERTY HOOD IN THE AMOUNT OF $75,000 FOR 2010 TO
PROVIDE SERVICES FOR LEGISLATIVE ADVOCACY ADDRESSING LONG TERM
STORAGE OF NUCLEAR WASTE IN MINNESOTA. BRIAN STUMPF SECONDED THE
MOTION. MOTION CARRIED 5 -0.
Tom Perrault asked how Flaherty Hood would keep the City informed on costs being incurred
versus advocacy progress so that Council is aware of progress. Sullivan noted that he will be
working closely with Jeff O'Neill and keeping him informed on a regular basis. If they find that
the advocacy is not producing results, they can revisit the value of the efforts and whether to keep
it going.
12. Consideration of calling for a Special Meeting during the last week of December for
approval of bills
BRIAN STUMPF MOVED TO HOLD A SPECIAL COUNCIL MEETING ON TUESDAY,
DECEMBER 29, 2009 AT 6:30 A.M. FOR APPROVAL OF BILLS. SUSIE WOJCHOUSKI
SECONDED THE MOTION. MOTION APPROVED 4 -1 WITH GLEN POSUSTA VOTING
IN OPPOSITION.
It was noted that the meeting may also include an item for approving a pole attachment agreement
with Xcel Energy.
13. Approve payment of bills for December 14`h
GLEN POSUSTA MOVED TO APPROVE PAYMENT OF THE BILLS FOR DECEMBER
1411'. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 5 -0 TO PAY THE
BILL REGISTER TOTALING $827,622.70.
City Council Minutes — December 14, 2009 Page 8
14. Adiournment
TOM PERRAULT MOVED TO ADJOURN THE MEETING AT 9:15 P.M. BRIAN STUMPF
SECONDED THE MOTION. MOTION CARRIED 5 -0.
Recorder: Catherine M Shuman Cd/
Approved: January 11, 2010
Attest:
ne-1-a-
Citf/AfAistrator
City Council Minutes — December 14, 2009 Page 9