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City Council Minutes 10-24-2011MINUTES REGULAR MEETING — MONTICELLO CITY COUNCIL Monday, October 24, 2011— 7 p.m. Mississippi Room, Monticello Community Center Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf Absent: None 1. Call to Order and Pledge of Allegiance Mayor Herbst called the meeting to order at 7:04 p.m. and declared a quorum present. The Pledge of Allegiance was recited. Mayor Herbst thanked those that participated in a dedication ceremony, held prior to the meeting, in honor of Sheila Lawrence, fondly known as the "Swan Lady." A beautiful picture and plaque of commemoration were hung in the hallway of the community center. 2A. Approval of Minutes — October 10, 2011 Regular Meeting LLOYD HILGART MOVED TO APPROVE THE MINUTES FROM THE OCTOBER 10, 2011 REGULAR MEETING AS PRESENTED. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0. 3. Consideration of adding items to the agenda None 4. Citizen comments, public service announcements, and staff updates a. Citizen Comments: None b. Public Service Announcements: 1) Veolia Environmental Services donation presentation — Jeff O'Neill introduced Rob Holzer from Veolia Services, who presented a giant check for $15,000 that was donated toward the CSAH 75 pedestrian underpass. Jeff O'Neill thanked Rob Holzer and his company for their generous donation. Rob thanked Council and City staff for inviting them to be a part of this project. Clint Herbst commented on the generosity of Veolia in the Monticello community. C. Staff Updates: 1) Building Department — Ron Hackemnueller gave a presentation about the Building Department and highlighted the following areas: • Community service — blight notices, storm damage • REP (radiological emergency preparedness) — nuclear plant exercises, grants, develop plan, online training • Rental licensing — process applications, inspections, fees City Council Minutes — October 24, 2011 Page 1 • Building permits — commercial (Walgreens, Aroplax, New River Physician clinic, Walmart remodel, West Metro car wasb, Landmark Center/NAPA /Jimmy Johns, Pet Hospital, Suburban Mfg); residential (new construction, remodeling); sign permits; total value of permits to date in 2011 is $11,393,000. 5. Consent Agenda: A. Consideration of approving payment of bills for October 24th. Recommendation: Approve payment of the bill registers for October 24`x' in the amount of $1,028,883.81. B. Consideration of approving new hires and departures for City departments. Recommendation: Ratify new hires and terminations for DMV, MCC, Parks, and Streets. C. Consideration of adopting Resolution #2011 -98 approving contribution from Tom Perrault for the General Fund. Recommendation: Adopt Resolution #2011 -98 approving a donation of $250 from Tom Perrault to go to the General Fund. D. Consideration of accepting 3`a Quarter Financial Reports. Recommendation: Accept the 2011 3rd Quarter financial reports. E. Consideration of adopting a City Purchasing Card Policy and Procedures. Recommendation: Adopt the City Purchasing Card Policy and Procedures and the Purchase Card User Agreement form as proposed. F. Consideration of approving a request for extension of Conditional Use Pen-nit for Planned Unit Development for a multi- tenant commercial development in a B -3 (Highway Business) District; Applicant: Cornerstone /DOJO LLC. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. G. Consideration of adopting Resolutions #2011 -99A & B accepting improvements and approving final payments to Straightline Concrete, Inc. and Decorative Pavement Markings for the Walnut Street Boulevard Improvements, City Project No. 11C003. Recommendation: Adopt Resolution #2011 -99A accepting improvements and approving final payment to Straightline Concrete, Inc and adopt Resolution #2011 -99B accepting improvements and approving final payment to Decorative Pavement Markings for the Walnut Street Boulevard Improvements, City Project No. 11 C003. H. Consideration of approving the Wetland Replacement Plan Application for wetland mitigation/violation in Lot 1, Block 1, Otter Creek Crossing 4rh Addition; Applicant: City of Monticello. Recommendation: Approve the Wetland Replacement Plan Application for wetland violation in Lot 1, Block 1, Otter Creek Crossing 4ti' Addition, and authorize City payment of $9,016.92 to Philip City Council Minutes — October 24, 2011 Page 2 Miller for wetland credits. (WSB will pay $9,016.92 for wetland credits and $1,172.20 for the transaction fee. City will be responsible for LGU engineering costs of $6,000.) Consideration of approving a waiver of the Plan Review Fee for Jacobson Properties (Monticello Big Lake Pet Hospital) in accordance with the Business Expansion Incentive Pilot Program. Recommendation: Approve waiving $1,707.24 in plan review fees for Jacobson Properties (Monticello Big Lake Pet Hospital) as part of the Business Expansion Subsidy Pilot Program. GLEN POSUSTA MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEM F. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 5 -0. 6. Consideration of items removed from the consent asenda for discussion #5F. Consideration of approving a request for extension of Conditional Use Permit for Planned Unit Development for a multi- tenant commercial development in a B -3 (Highway Business) District; Applicant. Cornerstone /DOJO LLC Glen Posusta pulled this from the consent as he wished to abstain from voting as he has an interest in the property. LLOYD HILGART MOVED TO APPROVE A ONE -YEAR EXTENSION OF CONDITIONAL USE PERMIT FOR PLANNED UNIT DEVELOPMENT FOR A MULTI- TENANT COMMERCIAL DEVELOPMENT IN A B -3 DISTRICT FOR DOJO /CORNERSTONE PROPERTIES, CONTINGENT ON SUBMISSION OF AN APPLICATION FOR AMENDMENT TO THE DEVELOPMENT STAGE PUD CONSISTENT WITH THE CURRENT B -4 ZONING STANDARDS AND CONTINGENT ON ALL PREVIOUSLY APPROVED CONDITIONS AS FOLLOWS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 4 -0 WITH GLEN POSUSTA ABSTAINING FROM VOTING. EXHIBIT Z - Conditions of Approval 1. The proposed site access point locations be revised subject to review and approval by the City Engineer. 2. Any future proposal to accommodate uses which generate a greater off - street parking demand (i.e. restaurants); the processing of a PUD amendment and additional parking shall be required. 3. To better accommodate vehicular backing maneuvers, the parking stall in the extreme southwest corner of the site (along the site's southern boundary line) be eliminated. 4. Building colors be specified and subject to City approval. 5. The applicant revises the building materials as discussed in this report, particularly as related to the building facades facing the surrounding streets. 6. The landscape plan be amended to increase planting on the site, particularly along the south and west boundary areas. City Council Minutes — October 24, 2011 Page 3 7. A photometric lightingplan be submitted, in accordance with ordinance requirements, subject to City approval. 8. Consideration be given to attaching the two trash enclosures to the adjacent principal buildings. Such enclosures or "wing walls "should be finished in materials similar to those used on the principal buildings. 9. Requirements of the City Engineering staff are complied with, as agreed to at the staff - applicant meeting on July 29, 2008 10. Right of way dedications and vacations are finalized prior to final building permit approval. 7. Public Hearing — Consideration of adopting Resolution #2011 -100 approving assessment roll for delinquent utilities to be certified for 2012 payable tax year Tom Kelly introduced this item explaining that this is the semi - annual certification for delinquent utilities for the first and second quarters of 2011. The list contains 350 parcels totaling $76,750.28. Unpaid delinquents will have a $50 processing fee added to the balance due and can be paid through November 28, 2011 to avoid having them placed on the tax rolls for 2012. Mayor Herbst opened the public hearing. As there were no public comments, the public hearing was closed. GLEN POSUSTA MOVED FOR ALTERNATIVE #1 ADOPTING RESOLUTION #2011 -100 APPROVING THE ASSESSMENT ROLL FOR DELINQUENT UTILITIES TO BE CERTIFIED FOR 2012 PAYABLE TAXES. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5 -0. 8. Public Hearing — Consideration of adopting Resolution #2011 -101 approving assessment roll for delinquent miscellaneous accounts to be certified for 2012 payable tax year Tom Kelly pointed out that this is an annual certification for miscellaneous billings that have not been paid from the past year. He pointed out that the amount and number have dropped from previous years. There are 5 accounts in a total amount of $729.39 to be certified. Brian Stumpf asked if it would be possible to include comparisons of dollar amounts from prior years for the delinquent bills. Tom Kelly will add that information for delinquent assessment hearings in the fi ture. Mayor Herbst opened the public hearing. As there were no public comments, the public hearing was closed. BRIAN STUMPF MOVED FOR ALTERNATIVE #1 ADOPTING RESOLUTION #2011 -101 APPROVING THE ASSESSMENT ROLL FOR DELINQUENT MISCELLANEOUS ACCOUNTS TO BE CERTIFIED FOR 2012 PAYABLE TAXES. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 5 -0. City Council Minutes — October 24, 2011 Page 4 9. Public Hearing - Consideration of adopting Resolution #2011 -102 approving assessment roll for 2011 Street Reconstruction, City Project No. 11CO01 to be certified for 2012 payable tax year Bruce Westby introduced the assessment hearing for the 2011 Street Reconstruction project and gave a presentation on the project. The project scope included Area 4B (East River Street and adjoining side streets), West 7`I' Street, Ellison Park sanitary sewer/ water services and parking areas, East Bridge Park parking lot, and West River Street from CSAH 75 to the ball fields. West River Street improvements described as: reconstructing rural road, driveway culverts replaced, existing hydrants replaced, and utility services added for parcel at south end. Area 4B improvements described as: streets reconstructed, existing curb and gutter repaired /replaced as needed, existing sewer and water services repaired /replaced as needed, existing hydrants and valves replaced, existing sanitary sewer trunks repaired /replaced as needed, and on- street parking now restricted to one side of road on East River Street between Palm and Washington Streets, and on Palm and Washington Streets between East River Street and Broadway. The special assessments being considered are a flat rate for residential properties and a rate based on front feet for non - residential properties for Area 4B and West River Street. The interest rate would be 4% with a 10 year term (unless requested otherwise in writing). Bruce Westby provided maps showing West River Street parcels benefitting from road reconstruction and described areas to be assessed. Proposed total to be assessed would be $86,780. The assessment map for Area 4B (East River Street) was shown and areas to be assessed were described with proposed assessments totaling $456,867.94. Bruce Westby described the West 7`i' Street work and noted that no assessments are proposed for improvements in this area. Total project costs amount to $1,597,647 with funding sources from special assessments, state aid, street reconstruction fund, and trunk utility funds. Bruce Westby presented new information regarding the reduced construction costs that were realized with this project. Costs carne in 30 -40% less than anticipated for some portions. Due to the reduction in costs, City staff now recommends reducing the non- residential assessment rates to $45 per front foot for West River Street and to $55 per front foot for East River Street. It is recommended to keep the residential assessment at $4,000 per lot. Brian Stumpf asked about the formula for determining the requirement for 20% assessable costs on a project. Bruce Westby stated that even with the reduced assessment rates this project still meets the statutory requirements as the 20% is based on the portion of the project costs within the area to be assessed. Bruce Westby commented on the 3 letters that were submitted to City Council expressing their concerns about the amount to be assessed to their property. Of those, 2 were commercial properties: Electro Industries and Lisa and Tom Grossnickle. The Alano Society, a non -profit organization, is requesting consideration of deferring assessments to City Council Minutes — October 24, 2011 Page 5 one of their two residential units until such time that they further develop the property. Clint Herbst stated that he had talked to Jeff O'Neill earlier and requested staff to look at the project to determine if there were areas that assessments could be adjusted so there would not be such a great impact on businesses. He felt the proposed $80 per front foot was high considering the overall project costs. Lloyd Hilgart asked what the impact would be to the Alano Society with the change in the non - residential rate. Bruce Westby noted that they are currently listed to be assessed as a residential property with 2 units. If the lots were to be assessed as non - residential, that would reduce the assessment to slightly less than $7,875. Lloyd Hilgart also asked whether any of the properties on East River Street could be assessed for double lots. Bret Weiss with WSB and Associates noted that there were no residential properties that were considered as potential double lots in Area 4B. Lloyd Hilgart wanted to know how this year's project costs for the residential portion compared to last year's and whether that would justify the 5% increase that is intended to be applied to last year's rate. Bruce Westby explained that the residential assessment flat rates have been increased 5% per year for the last several years in an attempt to more closely match what other cities are assessing for their reconstruction projects. Bruce Westby pointed out that City staff will be reviewing the city's assessment policy during the next year to determine if changes are warranted to the current assessment rates. Clint Herbst asked how Monticello compares to other cities in the amount being assessed to residential properties. Bret Weiss commented on some assessment rates that other cities have recently applied to residential properties: Big Lake has assessed residential properties $7,000 +, Rogers is at about $6,000, and on average Bret thinks many metro area cities tend to be at $4,000 +. Bret noted that residential assessment rates over $5,000 may be harder to defend. Clint Herbst asked how the overall project costs compared from last year to this year. Bruce Westby noted that the overall project costs were quite a bit more last year since that was a larger project. Mayor Herbst opened the public hearing. Pat Holthaus, 105 Washington Street, commended the City for the communication that was provided to the public on this project. She noted that she had a concern about the 5% increase and feels it is kind of high compared to overall costs. She would like to see the rate remain no higher than last year's rate of $3,800. She does not like the idea of subsidizing businesses at the expense of homeowners. She also suggested that, in the future, the City consider the size of a lot when assessing residential properties. Glen Posusta explained that the business properties are not being subsidized by residential property as they pay a much higher percentage of the costs based on their front footage. Ms. Holthaus suggested that Council consider a reduction for residential properties and should not base their decision on surrounding cities or on past years. Lisa Grossnickle, 110 Washington Sheet, commented that she was glad to hear that City Council Minutes — October 24, 2011 Page 6 Council was considering a reduction in the assessments for non - residential properties. She would suggest that the City look at addressing how they apply assessments to corner lots to make sure that it is fair in comparison to surrounding properties. Bret Weiss noted that the City does have a policy that is followed for commercial properties: the front side is assessed at 100% and the side street is assessed at 50% if there is a drive access, but reduce it to 25% if no access exists. Steve Conroy, 261 East Broadway, commented that there is a rationale for assessing corner lots and understands that. He does appreciate that there is a consideration for reducing the assessments for commercial property. Steve noted that over time his options for property accesses have been reduced as the streets have been renovated and would appreciate a reduction in the assessment on his property. Paul Ruffin, representing the Monticello Alano Society, spoke in favor of allowing a deferment on one of the residential units they are being assessed until such time as the property is subdivided, sold, or further developed. Mr. Ruffin explained that the Alano Society is a non - profit organization and does not have the funds to pay the entire assessment at this time. Jim Dickrell, 707 East River Street, asked why the project stopped for a few weeks in September and when the final lift of pavement would be completed. He also wanted to know when the assessment would start. Bruce Westby explained that work on the project stopped briefly as they were waiting for the grading contractor to return from another job to complete grading operations so turf could be established. The final lift of pavement was delayed because the contractor is working on numerous state contracts that were pushed back due to the state shutdown in July. The contractor may return yet this year to place the final lift, otherwise it will be done next Spring. Tom Kelly explained that the assessment will start with 2012 payable taxes unless the property owner elects to pay the entire amount in the next 30 days. Clint Herbst said that in the past it was usual to wait until the following Spring for the final lift (wear course) and wondered why that was no longer common practice. Bruce Westby stated that was generally dependent on the depth of the utility work that was done in conjunction with road reconstruction. The deeper the utilities work is, the greater the chance for settlements over winter. As there were no further comments, Mayor Herbst closed the public hearing. Tom Perrault asked if the project is not finished this year, does the contractor absorb any increased costs for the final lift of asphalt. Clint Herbst verified that would be at the expense of the contractor. Lloyd Hilgart commented on the Alano property, which is zoned commercial, but is proposed to be assessed as residential (used by a non - profit). He wanted to know how that would work if the assessment were deferred. Bruce Westby pointed out that if one unit were deferred, they would be assessed $4,000 and would not activate the assessment for the other $4,000 unless the property were sold, developed and /or subdivided. The interest and principal would both be deferred indefinitely. Bruce explained that this is similar to the Rod & Gun Club assessment for the 2007 Street Reconstruction project which was considered as 3 residential units although the property City Council Minutes — October 24, 2011 Page 7 is classified commercial. GLEN POSUSTA MOVED FOR ALTERNATIVE #1 AS WRITTEN (NON- RESIDENTIAL RATE AT $80 PER FRONT FOOT AND RESIDENTIAL AT $4,000 PER LOT). MOTION FAILED FOR LACK OF A SECOND. BRIAN STUMPF MOVED TO ADOPT RESOLUTION #2011 -102 APPROVING THE ASSESSMENT ROLL FOR THE 2011 STREET RECONSTRUCTION PROJECT TO BE CERTIFIED FOR 2012 WITH ADJUSTMENTS FOR NON - RESIDENTIAL RATES AT $45 (WEST RIVER STREET) AND $55 (AREA 4B) AND RESIDENTIAL AT $4,000 PER LOT; AND DEFERRAL OF ONE UNIT FOR ALANO SOCIETY AS REQUESTED. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 3 -2 WITH CLINT HERBST AND LLOYD HILGART VOTING IN OPPOSITION. Lloyd Hilgart noted that he agrees with the motion but would have preferred to see the residential rate reduced to $3,800 to match last year's rate. Brian Stumpf commented that he did not feel that would be fair as the balance would have to be covered by all the taxpayers through the levy. Clint Herbst noted that he also would have preferred to keep the residential rate at $3,800. 10. Consideration of approving Snow Plowing/Removal Policy for 2011 -2012 season Tom Moores introduced the Snow Plowing policy for the upcoming season. He displayed a map showing the primary and secondary routes and described those routes for plowing. He explained the changes on those routes which are to accomodate the new routing of East River Street at Cedar Street. The next section that Tom Moores covered was for parking lots, noting a change for the FiberNet head -end building. Tom Moores mentioned that they are proposing to clear out a portion of the empty lot at Cedar and Broadway for overflow parking during the winter. Tom Moores covered some changes that are proposed for sidewalk plowing noting the new section on Cedar Street north of Broadway. Tom Moores also talked about a partial pathway in the Pioneer Park area that they would like to add to the snow removal route. This was brought to his attention by a student that wrote a letter asking for this path to be plowed. Public Works would like to experiment with clearing this path from Farmstead Avenue where it begins and through the south end of Pioneer Park to the parking lot. Public Works also plans to do clearing at Swan Park. Clint Herbst suggested that some of the time frames for plowing should be more lenient to allow more time if needed. For example, most pathways are set at 36 hours and could be moved to 48 hours. Torn Moores indicated that they would be willing to make an adjustment. He noted that they work with the school district and try to get the school routes cleared appropriately for students that walk to school. City Council Minutes —October 24, 2011 Page 8 GLEN POSUSTA MOVED FOR ALTERNATIVE #1 TO APPROVE THE 2011 -2012 SNOW REMOVAL POLICY WITH THE FOLLOWING UPDATES. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0. Primary Emergency Routes • River Street East —from Washington to the Nursing Home • Washington Street —from Broadway to East River Street Secondary Emergency Routes • River Street East —from TH 25 to Cedar Street (including Walgreen's block) • River Street West —from Xcel Ballfields to TH 25 Parking Lots - Plowed by 8 A.M. • Add: FiberNet Head -end Building parking lot Parking Lots - Plowed within 12 hours following snow event • Add: Cedar Street parking lot (overflow parking for Sliding Hill) • Remove: Mentie a F4 ,,.,nr r L e 4 ei 7 D,.;L7:, ..ai*4,.,.!e • Add: Territorial Road —driveway into the Rand Mansion City Sidewalks - Cleared within 24 hours following snow event • Add: Cedar Street —from Broadway to River Street (east side) Sidewalks cleared with City assistance 1) Remove last 2 sentences regarding pass with snow blower City Pathways — Cleared within 36 hours to a width of 6' • Add: Farmstead Ave —from 9144 Farmstead Av to Pioneer Park parking lot • Change: Edmonson Ave —West side from School Blvd to Orchard Cir and Orchard Cir to 89`x' Str in Featherstone • Add: Swan Park pathway Tom Perrault asked for an explanation on the proposed deletion related to downtown sidewalks. He wanted to know if there is still a provision to give notices to property owners. Tom Moores noted that the provision for notices is addressed in city ordinance; this change addresses the process that they plan to use for snow removal on downtown sidewalks, which allows for more flexibility than the policy previously did. 11. Added items There were no items added to the agenda. 12. Adiournment BRIAN STUMPF MOVED TO ADJOURN THE MEETING AT 8:43 P.M. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5 -0. Recorder: Catherine M. Shuman Cyd,� Approved: November 14, 2011 /J Attest: ofol Cit A,# inistrator City Council Minutes — October 24, 2011 Page 9