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City Council Minutes 04-08-2013MINUTES REGULAR MEETING — MONTICELLO CITY COUNCIL Monday, April 8, 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 7:02 p.m. and declared a quorum present. The Pledge of Allegiance was recited. 2A. Approval of Minutes — March 25, 2013 Regular Meeting BRIAN STUMPF MOVED TO ACCEPT THE MARCH 25, 2013 MEETING MINUTES WITH A CORRECTION TO ITEM #8. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0. 3. Consideration of adding items to the agenda • National Guard return 4. Citizen comments, public service announcements, and updates a. Citizen Comments: 1) Presentation of donation from Xcel Energy — Jeff O'Neill introduced Scott Johnson who presented a check for $20,000 to the Mayor. This donation will go toward the costs for the pedestrian underpass on CSAH 75 at the west end of town. He also introduced several other representatives from Xcel Energy. b. Public Service Announcements: 1) Building Department spring clean -up reminders — Ron Hackenmueller provided several reminders to residents about cleaning up their yards this spring. Residents can contact the building department with questions. Ron Hackemnueller commented that the department does not do a sweep of the city anymore; complaints are handled on a case -by -case basis. 2) Leaf pick -up (5111) — Bob Paschke noted that residents can set bags of leaves or grass at curbside by 7 a.m. on Saturday, May 11th. This only includes leaves or grass, not branches. Residents can also bring leaves to public works for the compactor. Clint Herbst asked if the city might consider doing branch chipping once a year in the fall or spring. Brian Stumpf suggested doing this during the week to avoid paying overtime. City Council Minutes —April 8, 2013 Page 1 3) "Monticello Recycles" (5111) — Bob Paschke introduced Jason Warehime to talk about the recycling day sponsored by Metro Appliance Recycling. This will be held Saturday, May 11th at the commuter lot. Jason talked about items that would be accepted. Citizens can also check out a special website at www.tliinkgreetunn.net. Clint Herbst asked him if he could provide information to city staff to set up a link on our website. 4) MCC Community Garden— Angela Schumann reported that the community garden is accepting reservations for plots from City residents. They have a limited number left, the cost is $28 for the season. The plots are 20' by 15', there is water and hoses in the garden and some gardening implements for gardeners to use. Call Kitty at 763 - 271 -3268 to reserve your plot. C. Updates — Mark Pultusker, FiberNet Mark Pultusker told Council that he met with school district personnel to talk about what FiberNet Monticello could offer. He invited them to the head -end building for a presentation. They discussed the advantages that FiberNet Monticello could bring for their alternative learning programs and how they could benefit farther with their fiber connection between school buildings. FiberNet Monticello could help them with their video on demand content. The school asked for another meeting with principals and administrators along with city staff to talk about possible partnership for FiberNet Monticello and the school. Mark Pultusker feels this is a good indication of the ability to tan things around for FiberNet Monticello and offer more services to residents and businesses. Mark Pultusker also commented on the conversion to the new billing system. When the first bills went out there were a lot of phone calls. However the response from staff was very good and they were able to turn around the questions in a quick easy manner through email or phone. The goals are to increase revenue, maximize use of staff, and improve efficiencies in the system. Glen Posusta suggested that some of the school board members be invited to the next meeting between the school and city staff. 5. Consent Agenda: A. Consideration of approving payment of bills for April 8`11. Recommendation: Approve the bill and purchase card registers for a total amount of $772,488.76. B. Consideration of approving new hires and departures for City departments. Recommendation: Ratify new hires and terminations for Streets, MCC, and DMV. City Council Minutes —April 8, 2013 Page 2 C. Consideration of approving an application for temporary on -sale liquor licenses for the Monticello Lions Club for Riverfest for the dates of July 13 -14, 2013. Recommendation: Approve the applications for temporary on -sale liquor licenses for the Monticello Lions Club for Riverfest 2013. D. Consideration of adopting Resolution #2013 -016 calling for the public hearing for the West 7th Street Extension, City Project No. 12CO02 to be moved to April 22, 2013. Recommendation: Adopt Resolution #2013 -016 calling for the public hearing to be held April 22, 2013 for the West 7th Street Extension, City Project No. 12C002. E. Consideration of adopting Ordinance #576 amending the Monticello Zoning Ordinance, Section 2.4 — Specific Review Procedure & Requirements. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. F. Consideration of adopting Resolution #2013 -017 supporting state legislation related to Street Improvement Districts. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. G. Consideration of adopting Resolution 42013 -019 committing local matching funds for MAP -21 federal funding approved for construction of the TH 25 / CSAH 75 Intersection Improvements, City Project 100009. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. H. Consideration of adopting Resolution #2013 -020 approving a 5% deferred interest benefit level for 2012 and 2013 for the Monticello Fire Relief Association. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. GLEN POSUSTA MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEMS E, F, G AND H. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0. 6. Consideration of items removed from the consent agenda for discussion 5E. Consideration of adopting Ordinance #576 amending the Monticello Zoning Ordinance, Section 2.4 — Specific Review Procedure & Requirements Tom Perrault removed this itern to ask about the wording in regard to residential and/or commercial zoning changes. Angela Schumann explained that this amendment is based on wording in state statutes and this is a correction to the new zoning ordinance where wording was switched around between two sections. He also had a question on the meeting date where this was reviewed by the Planning Commission. LLOYD HILGART MOVED TO ADOPT ORDINANCE 9576 AMENDING SECTION 2.4 OF THE MONTICELLO ZONING CODE AS PRESENTED BASED ON THE City Council Minutes —April 8, 2013 Page 3 FINDINGS IN PLANNING COMMISSION RESOLUTION #2013 -015. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 5 -0. SF. Consideration of adopting Resolution #2013 -017 supporting state legislation related to Street Improvement Districts Jeff O'Neill provided background on the proposed legislation to allow cities to create street improvement districts which could provide another means for funding maintenance improvements for streets. The League of MN Cities is asking for support from local governments for this legislation. Clint Herbst commented that he and Glen Posusta had talked to the Chamber director and some of its members and do not feel that this is something they would want to enact in Monticello. Bret Weiss explained that this legislation does not require cities to implement street improvement districts; this would be up to individual cities to determine whether they would want to use this method of funding. Clint Herbst stated that he feels that this is a lazy way of paying for street improvements. He feels that the present system of funding streets is adequate and requires councils to do their homework before assessing for improvements. Bret Weiss did ask Council to refrain from sending a letter in opposition to this legislation. There are a number of organizations that support this legislation and he feels that action could impact the city indirectly. Glen Posusta noted that this legislation has been proposed for awhile and has been turned down a number of times at the legislature. Bret Weiss explained that it generally was turned down because it was thought of as another tax. However, it does provide a method of funding for those cases where the Chapter 429 statutes are difficult to apply in terms of benefit. Glen stated that he was concerned that the City could choose to draw the district around only the business areas and charge the fee to only businesses. Bret stated that this would be the decision of the City council and that the fee can only be collected for a 20 year period. It was further discussed that by using general tax dollars to fund street improvements, businesses would pay a higher amount of the costs than if it was collected as a fee. Chamber Director Sandy Suchy thanked Council Members Glen Posusta and Clint Herbst for meeting with chamber members. She commented that the chamber businesses feel that this legislation is just another tax and could be detrimental to businesses. Sandy Suchy commented that, if there are issues with the current statutes, the focus should be on fixing what isn't working. Lloyd Hilgart asked Bret Weiss to give an example of where this might be useful. Lloyd asked if it be used for a pathway on the Monte Club hill. Bret Weiss explained that this legislation is meant for street maintenance and constriction. If the city were to do an overlay or street rehabilitation, the city currently charges a set amount to the residential properties through an assessment. Instead of the assessment process, wider this legislation the city could set up a district of the parcels to be included and charge a set fee over a number of years (up to 20 years). GLEN POSUSTA MOVED FOR ALTERNATIVE #2 DENYING SUPPORT FOR LEGISLATION RELATED TO STREET IMPROVEMENT DISTRICTS AND TO City Council Minutes —April 8, 2013 Page 4 SEND A LETTER FROM COUNCIL OPPOSING THE LEGISLATION. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED 5 -0. Lloyd Hilgart commented that he sees this legislation as another possible method of collecting money through the tax levy where everyone pays a portion. Clint Herbst expressed his concern over how such a tax district would be set up and whether that would be equitable. Jeff O'Neill pointed out that, under this legislation, you could actually charge properties for a share of the costs on a street project even if they don't immediately adjoin the street. Bret Weiss added an explanation on how this might apply for a project involving collector roads, where there might not be properties to assess. Many of the city collector streets do not have properties fronting on them which will reduce the opportunity to collect assessments and a higher percentage of the cost will be paid by general city funds. Tom Perrault stated that his understanding is that the legislation is still being worked on and there may be further changes. He does not support the legislation. 5G. Consideration of adopting Resolution #2013 -019 committing local matching funds for MAP -21 federal funding approved for construction of the TH 25 / CSAH 75 Intersection Improvements, City Project 100009 Bret Weiss talked about this request to commit to the minimum local funding match of $450,000 as required to receive the federal funding of $1,200,000, which has been approved by the state through the local initiative program. Bret Weiss explained that the council is being asked to adopt the resolution accepting the funding match. When the city was awarded the local initiative funding, they were informed of a requirement to apply for alternate funding through the CIMS (corridor investment management system) program. Whether or not the city would qualify for some additional funding, we would still receive the $450,000 as long as the application is submitted. Bret Weiss explained that he did some checking on the alternate funding because he did not feel that the project would be a high priority for the CIMS funds. When Bret Weiss contacted the state aid engineer, he was informed that this project would probably be a good candidate for consideration for the funding. Bret Weiss explained to council that he was looking for their support in applying for additional funding of up to $850,000 above the original $450,000 in order to extend the median and signal improvements to the RR tracks on Hwy 25. Bret displayed a drawing showing the area of Hwy 25 and CSAH 75 that has received funding. If the City was interested in applying for additional funding, at the same time as applying for the $450,000, there is the possibility of obtaining funds that could be used toward improvements south of the 25/75 intersection along Hwy 25 in the Third Street area; these improvements were identified as part of the Embracing Downtown project. Either way there would be costs of about $10,000 involved with the application process, and the city could possibly garner more funding toward improvements along State Highway 25. Glen Posusta state that he is not convinced that closing 3`a Street on Hwy 25 is the answer. Clint Herbst feels that the state should be taking care of the improvements and City Council Minutes —April 8, 2013 Page 5 not asking the city to pay for this. Bret Weiss explained that there is a limited amount of funds that are provided for projects and if the city received the funds, the state would be paying for the improvements. When the City begins work on the downtown redevelopment, it will be necessary to close 3`d Street and construct a signal at 4"' Street to direct traffic to one location and to improve pedestrian crossing of TH 25. If the city wants to take care of congestion in the downtown, that would be up to the city to direct those improvements. Lloyd Hilgart asked when the application for the additional funding is due. Bret Weiss noted that is due by the end of April. Bret reiterated that staff just recently found out that there is a requirement to apply for a second round of funding with this match. Staff was attempting to determine if there was a possibility of avoiding that second round, but the state did say that is a requirement in order to receive the $450,000. Tom Perrault confirmed that the cost of the application would be around $10,000. LLOYD HILGART MOVED FOR ALTERNATIVE #1 TO ADOPT RESOLUTION #2013 -019 COMMITTING LOCAL MATCHING FUNDS FOR MAP -21 FEDERAL FUNDING APPROVED FOR CONSTRUCTION OF THE TH25 /CSAH 75 INTERSECTION IMPROVEMENTS, CITY PROJECT NO. 100009, AND AUTHORIZING APPLICATION FOR ALTERNATIVE FUNDING FOR THE $450,000 MATCH AT AN ESTIMATED COST OF $10,000. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 4 -1 WITH GLEN POSUSTA VOTING IN OPPOSITION. 5K Consideration of adopting Resolution #2013 -020 approving a 5% deferred interest benefit level for 2012 and 2013 for the Monticello Fire Relief Association Lloyd Hilgart wanted further explanation why Council is asked to approve this request. John Bauer explained that the state now requires the council to approve the funding percent; in the past this was handled between the Fire Relief Association and the State Auditor's office. Deferred interest is applied to payments received by firefighters when they are eligible for retirement pay up to the level approved by the Fire Relief Association Board of Trustees. Clint Herbst confirmed that the 5% percent is a maximum interest level and would be dependent on the investment. BRIAN STUMPF MOVED FOR ALTERNATIVE #1 TO ADOPT RESOLUTION #2013 -020 APPROVING A 5% MAXIMUM DEFERRED INTEREST BENEFIT LEVEL FOR THE MONTICELLO FIRE RELIEF ASSOCIATION FOR 2012 AND 2013, EFFECTIVE AFTER APRIL 8, 2013. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 5 -0. 7. Consideration of adopting Resolution #2013 -018 authorizing the sale of bonds for 2013 capital expenditure purchases Wayne Oberg explained that council is being asked to authorize the sale of bonds for 2013 at the lowest bid that was submitted by Harvest Bank for total interest of City Council Minutes —April 8, 2013 Page 6 $33,362.50 on the $500,000 bond. Other qualified bidders were Bremer Bank with total interest of $44,704.44 and Bank of Elk River with total interest of $43,112.21. Wayne Oberg explained that the rate is quite good and recommends that Council proceed at this time. Glen Posusta asked if it there would be any advantage to waiting until the city issues bonds for the Waste Water Treatment Facility improvements. Wayne Oberg said that it is not possible to know if the rates would be higher or lower when they are ready for that bond sale. Glen Posusta asked why the city is not bonding for the West 7`I' Street project. Wayne Oberg explained the funding sources that are being used on that project. GLEN POSUSTA MOVED FOR ALTERNATIVE #1 TO ADOPT RESOLUTION #2013 -018 APPROVING CERTIFICATE OF INDEBTEDNESS SALE IN THE AMOUNT OF $500,000 PLUS $33,362.50 INTEREST AWARDED TO THE LOWEST BIDDER, HARVEST BANK. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5 -0. 8. Added items • Monte Club Hill — Clint Herbst talked about the blog comments received by the Monticello Times regarding the discussion that the city recently held with IRET Properties for possible development of the Monte Club Hill. He wanted to snake the public aware that this was a chance for the city to listen to a proposal and no decision was made. Clint Herbst felt it might be worth asking the Parks Commission to meet and discuss ideas for possible uses of the Monte Club Hill. Clint Herbst also invited the public to contact council members with their concerns about the Monte Club Hill. • National Guard return — Council complimented the MCC and community for the nice job they did in welcoming the National Guard troops back to Monticello. 9. Adiournment TOM PERRAULT MOVED TO ADJOURN THE MEETING AT 8:44 P.M. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5 -0. Recorder: Catherine M. Shuman Approved: April 22, 2013 Attests: C y tninistrator City Cbuncil Minutes —April 8, 2013 Page 7