City Council Minutes 01-28-2013MINUTES
REGULAR MEETING — MONTICELLO CITY COUNCIL
Monday, January 28, 2013 — 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 7:01 p.m. and declared a quorum present.
The Pledge of Allegiance was recited.
2. Minutes
Minutes from January 14, 2013 Special & Regular Meetings will be presented at
February 11, 2013 meeting
3. Consideration of adding items to the agenda
• FiberNet capital expenditure (Jeff O'Neill)
4. Citizen comments, public service announcements, and updates
a. Citizen Comments: None
b. Public Service Announcements:
1) Indoor Farmer's Market (2/2) — Angela Schumann provided information
on the next Fanner's Market on Feb 2 "d inside the Community Center
from 9am to 1pm. Clint Herbst invited the public to also take a look at the
new equipment in the new fitness area.
2) Clint Herbst reported that he met with Michelle Bachmann today and she
will be focusing on funding for I -94 improvements. They also discussed
Pelican Lake and DNR plans to drain the lake for a wildlife habitat.
Bachmann is willing to look into that and see if there are still possibilities
of keeping it as a fishing lake.
C. Updates:
1) DMV Review — Ann Eckman spoke on behalf of the DMV and reported
that statistics are up in all categories. They are bringing in a lot of
business from outside the community on Saturdays, as most other offices
are closed. Aim reviewed the number of services they offer: title
transfers, expedited transfers, dealer transactions, game and fish
transactions, and other miscellaneous services. Glen Posusta asked about
updating driver licenses for addresses and Ann confirmed that they can do
that. Lloyd Hilgart asked about the possibility of adding driver licenses
City Council Minutes — January 28, 2013 Page 1
renewals with the camera. Ann explained that they were not approved for
that previously. They could restart the process which may require the City
to purchase the camera equipment that would be needed, if they could get
approvals from the State.
5. Consent Agenda:
A. Consideration of approving payment of bill registers for January 28th.
Recommendation: Approve payment of bill and purchase registers in the total
amount of $720,657.08.
B. Consideration of approving new hires and departures for City departments.
Recommendation: Approve new hires and terminations for MCC and Water
Department.
C. Consideration of adopting Resolution 42013 -003 accepting a contribution for
2013 from Tom Perrault for the General Fund. Recommendation: Adopt
Resolution #2013 -003 accepting a donation of $3000 from Tom Perrault for the
General Fund.
BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH NO
CHANGES. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5-
0.
6. Consideration of items removed from the consent agenda for discussion
No items were removed from the consent agenda.
7. Continuation of Public Hearing - Consideration of adopting Resolution #2013 -001
Bruce Westby noted that this is a continuation of the public hearing from Jan 14`x' and he
will provide updates on discussions with Kjellberg's that have occurred since that
meeting. Kjellberg's indicated they are interesting in setting up an agreement for Option
4 and provided a list of considerations to Bruce just before the meeting tonight which was
given to Council to look over. Bruce Westby noted there are several items on the list that
the City would probably not agree to. He mentioned that Mn /DOT is willing to wait for a
decision until February 1 Ith if the City wants to work out differences on the list in order
to develop an agreement with Kjellberg's for Option 4.
Mayor Herbst opened the public hearing.
Kirk and Marty Kjellberg approached the podium to answer questions and address their
concerns. Brian Stumpf pointed out Council was provided with the information from
Kjellberg's just prior to the start of the meeting and questioned why Kjellberg's took this
City Council Minutes — January 28, 2013 Page 2
long to come up with this. Marty Kjellberg explained that they have been in
conversations with the City over the last two weeks. Although there were some delays,
they did manage to come up with considerations for an agreement which contains some
points for the City to consider. Clint Herbst was concerned over the length of time that it
is taking for Kjellberg's to come up with a decision and noted that he is okay with either
Option 3 or 4. Glen Posusta expressed his concern over some of the items in the
considerations. Kirk Kjellberg pointed out that they have worked very hard at coming up
with these considerations in order to work out an agreement for Option 4, rather than
suing over this project. Kirk asked Council to consider spending a little extra time to sit
down and discuss the considerations and see if they can come up with terms to make it
work for Option 4.
Bret Weiss suggested that Council might want to go over the list of considerations and
see where there might be agreement. Brian Stumpf stated that he would not be
comfortable with making any decisions regarding zoning since there would probably be a
lot of unknowns at this time. Marty acknowledged that she had provided the wording for
the considerations with the intent to look at the considerations with the goal to arrive at
an agreement. Brian Stumpf asked if the Council decided to go with Option 3 could the
State override the decision and opt for a different choice. Claudia Dumont stated that the
State would construct whichever option the Council chooses and would not change that
direction.
Council discussed points that were listed in the proposed considerations from Kjellberg's,
Inc. as follows:
1) Assessment costs for Kiellberg's: Mn/DOT would not assess Kjellberg's for any of
their costs related to Hwy 25 improvements on this project. (Value of service road
improvements is estimated at $375,000.)
2) Right of WU remnant: Mn/DOT would return any parcel remnants outside their
right -of -way to Kjellberg's that is not needed for the project.
3) Future Signal light assessment: — The City would assess their share of costs to all
benefitting properties including Kjellberg's, if a signal light would be installed at the
new intersection in the future. Bret Weiss suggested that the agreement could note
that the State would absorb 50% of the cost. Claudia Dumont noted that some of the
infrastructure for a signal is being built into the project which will keep costs down in
the future. She estimated that the cost for a new signal would probably run about
$200,000 with the State paying for half of that. Bret felt that the cost may run a little
higher, but the share for Kjellberg's would only be a portion of the total cost.
4) Future signal criteria: — Claudia Dumont pointed out that the State has a number of
criteria that has to be met before a signal would go in. Kirk Kjellberg noted that their
concern is that they would like to have advance notice of when signal studies and
possible installation might occur. Claudia stated that the State would monitor the
intersection and would be the one to decide when installation would occur. However,
the public would be made aware of progress toward installation of a signal.
5) Stormwater ponding/fees — Kirk Kjellberg expressed concern about possible water
retention on their site. Bruce Westby noted that the road construction would not
City Council Minutes — January 28, 2013 Page 3
generate any trunk fees for stormwater, and he does not anticipate a problem with on-
site water retention from the project. Any future stormwater trunk fees would not
occur until development of the Berry Farms site. Bruce Westby also explained that
stormwater ponding could be handled through either onsite ponding or directing
stormwater runoff to a regional pond. Kirk stated that Kjellberg's want to make sure
their concerns are addressed in some manner so there are no surprises. Kirk also
noted there is a drainage pipe in the mobile home park right now and they wanted to
make sure that would not be impacted by the road.
6) Land restoration: Claudia Dumont will check on the procedures for restoration with
road construction and get back to Kjellberg's. Normally restoration is done by a
general contractor as part of road construction and those arrangements would be
between Kjellberg's and Mn/DOT.
7) Future Utility Services: The City of Monticello and Mn/DOT would attempt to
include in the project design a provision for installing casing pipes under TH 25 to
eventually connect utility trunk lines between both sides of the park for future water
and sanitary sewer lines. Bret Weiss noted that this work normally falls under a trunk
line expenditure, and would not be assessed.
8) Future development of Berry Farms: Clint Herbst stated that this would be difficult
to establish at this time; however, normally the City does not object to annexation if
the developer is ready to go and has an approved plan. Steve Grittman noted that
there is a legal process that must be followed so the City cannot really commit in
advance to these conditions as requested by Kjellberg's: allow annexation of
property, allow rezoning with combination of commercial and multi - family
residential, and allow access to city water. However, an understanding of the process
could be included in the agreement. Kirk Kjellberg commented that he wanted to be
aware of all the considerations that might affect their development of this area. In
regard to park dedication, Glen Posusta noted that the City would not likely ask for
land to be dedicated; instead they would likely use park dedication fees for
improvements at a regional parkland, such as Bertram Chain of Lakes.
9) Pedestrian traffic: Kjellberg's would like to see traffic pavement markings or a
pedestrian crossing light included for pedestrians crossing Hwy 25 between the west
and east park. Claudia Dumont stated that Mn/DOT is aware of the pedestrian traffic
but does not provide marked crosswalks where high speeds are posted. She stated
that she would talk to experts at Mn/DOT to see if there might be some other options
available.
Brian Stumpf reviewed the discussion points that Kjellberg's presented and proposed
they be addressed in some manner in an agreement with the City.
Bruce Westby suggested that Council may want to adopt Alternative #1 which approves
Option 3 with adjustments that would incorporate the service roads from Option 4 along
with the required access closures. Claudia Dumont explained the reasons for selecting
this alternative would allow flexibility if an agreement cannot be reached and to avoid
resetting the 90 -day hearing requirements, which would delay the project.
Mayor Herbst closed the public hearing.
City Council Minutes — January 28, 2013 Page 4
GLEN POSUSTA MOVED FOR ALTERNATIVE #1 APPROVING MUNICIPAL
CONSENT FOR MN /DOT'S LAYOUT FOR STATE PROJECT NO. 8605 -50, ALSO
KNOWN AS OPTION 3, WITH THE ADDITION OF SERVICE ROADS TO
KJELLBERG'S EAST AND WEST MANUFACTURED HOME PARKS AND THE
ELIMINATION OF THE ACCESSES AS SHOWN IN OPTION 4; WITH
ADJUSTMENTS CONTINGENT ON REACHING AGREEMENT WITH
KJELLBERG'S, INC. FOR DONATION OF LAND FOR ROAD RIGHT -OF -WAY.
TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0.
8. Consideration of adopting Ordinance #566 for amendments to the Monticello
Zoning Ordinance, Section 3.4(H) — (medium density) Residential District and to
add an R -4 (medium to high density) Residential District to Section 3.4 — Residential
Base Zoning Districts and adopting Summary. Ordinance #566A for publication.
Applicant: City of Monticello
Steve Grittman from Northwest Associated Consultants explained that this zoning
amendment is being presented to Council to address higher density housing needs in the
future. When the new zoning ordinance was adopted, higher density housing with larger
number of units was not incorporated into the code. Steve Grittman gave several
examples of when this type of housing may be desired, such as high amenity senior or
retirement housing. Some other demographics that might be addressed by this would be
young singles looking for rental housing with more desirable amenities. The current
ordinances for higher density have caps on the number of units, which restricts the ability
to develop housing with a large number of units.
When the proposed ordinance was addressed by the Planning Commission, they added
some requirements such as greater setbacks, greater open space, larger buffer from single
family, stricter and internal parking requirements, architectural specifications, and greater
minimum unit sizes.
Steve Grittman noted that the ordinance amendment is designed to create an R -4 zoning
district but not place any land into the district. In order for a development to take place,
the developer would have to apply for a zoning change from an R -3 district to an R -4
district. This would allow the Planning Commission and Council to provide input into
such a proposed project from the very start. Steve Grittman also noted that,
coincidentally, the City has been presented with a proposal that may fit into this new
zoning district. Steve Grittman remarked that the proposed unit size of 900 sq ft could be
established as an average or a minimum under the PUD approach. Clint Herbst
commented that he would be surprised if a developer would recommend smaller I-
bedroom units in a higher amenity housing plan.
Steve Grittman explained that, under this zoning amendment, any proposal for senior
housing which is zoned as an R -4 district would require a PUD approach to address
features such as densities, unit sizes, parking supply and other senior- specific housing
designs. Lloyd Hilgart asked if the 100 foot setback could be circumvented by the PUD
City Council Minutes — January 28, 2013 Page 5
approach. Steve Grittman replied that could be a possibility but the trade -off may be to
require more open space.
GLEN POSUSTA MOVED FOR ALTERNATIVE #1 TO ADOPT ORDINANCE #566
AMENDING THE R -3 ZONING DISTRICT, SECTION 3.4(H) WITH ADDITION OF
PERFORMANCE STANDARDS; ESTABLISHING THE R -4 (MEDIUM -HIGH
RESIDENCE) DISTRICT WITH RELATED PERFORMANCE STANDARDS AND
HIGHER DENSITY ALLOWANCES; AND MAKING ASSOCIATED CHANGES TO
SECTIONS 4.1(J) — LANDSCAPING, 4.8 — PARKING, 4.11(C) — BUILDING
MATERIALS, AND 5.2(C)(2) — ATTACHED DWELLING STANDARDS; ALSO
ADOPT SUMMARY ORDINANCE #566A FOR PUBLICATION. LLOYD
HILGART SECONDED THE MOTION. MOTION CARRIED 5 -0.
9. Added items
FiberNet capital expenditure — Mark Pultusker presented this request to Council.
Marls explained that FiberNet has the right to insert their own advertising into
much of the programming that they produce for cable TV. However they have
not taken advantage of this due to the cost for the equipment to create the
advertising. Mark commented that they are marketing FiberNet services to
businesses not just as telephone or internet or TV. Instead they try to portray all
the services as a good business investment. Having the ability to produce local
commercials for businesses could be a "value- added" service for FiberNet to
market to their customers.
Investing in this system would include costs for equipment, training, software and
personnel resources. Mark explained that he has been restructuring the FiberNet
staff to handle a variety of tasks and cross - training them to cover a multitude of
duties. Although there would be additional cross - training involved with this
system, it will enable a number of staff to work on it. Mark has been discussing
this improvement with the vendor that can provide the equipment. He is
proposing to replace some older equipment with this new system upgrade, which
will allow FiberNet to provide more services including the ability to create
commercials. With this upgrade, the FiberNet system will provide greater video
capability than other local competitors. This should give FiberNet a better
marketing position with local customers. With the exchange of hardware, the
proposed upgrade is expected to cost about $210,000 for Phase I.
Clint Herbst commented that FiberNet has introduced a few new channels, which
has been a good move. Mark commented that he will be able to add another 20 to
25 desirable channels to the line -up if he can purchase the new equipment. Brian
Stumpf asked how he plans to get some of the old customers back that have left
FiberNet. Mark said that, once the upgrades are completed, he plans to use
demonstrations and hands -on trials for potential customers to draw them in. The
first contacts will be made to former customers and those that have a fiber
connection but have not taken service yet with FiberNet.
City Council Minutes — January 28, 2013 Page 6
Jeff O'Neill explained that they would propose to use the Cable Commission
franchise fees previously returned to the City as a funding source for this upgrade.
LLOYD HILGART MOVED TO APPROVE A CAPITAL EXPENDITURE
FOR CABLE SYSTEM IMPROVEMENTS AT AN ESTIMATED AMOUNT
OF $210,000 FOR PHASE I TO BE FUNDED OUT OF CABLE COMMISSION
FRANCHISE FEES. TOM PERRAULT SECONDED THE MOTION.
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10. Adiournment
GLEN POSUSTA MOVED TO ADJOURN THE MEETING AT 8:36 P.M. TOM
PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0.
Recorder: Catherine M. Shuman d/
Approved: February 11, 2013
Attest:
Cit inistrator
City Council Minutes — January 28, 2013 Page 7