City Council Minutes 02-24-2014MINUTES
REGULAR MEETING — MONTICELLO CITY COUNCIL
Monday, February 24, 2014 — 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.
2A. Approval of Minutes — February 10, 2014 Regular Meeting
TOM PERRAULT MOVED TO ACCEPT THE FEBRUARY 10, 2014 REGULAR
MEETING MINUTES AS CORRECTED. LLOYD HILGART SECONDED THE
MOTION. MOTION CARRIED 5 -0.
3. Consideration of adding items to the agenda
• None
4. Citizen comments, public service announcements, and updates
A. Citizen Comments:
1) Rick Adamski from 102 Oakview Circle stated that he has been dealing
with frozen water pipes, which were unthawed by Monticello Plumbing &
Heating at a cost of about $490. Matt Theisen from the Water Department
was also helpful in getting the problem resolved. He mentioned that one
other house on Oakview Circle also had frozen water pipes. Water and
sewer improvements were made some years ago on this street, and he is
wondering why the pipes are freezing now. Matt Theisen stated that as of
today they have had 12 houses with frozen water lines in the city. In
Adamski's case, the lines were frozen about two feet inside the standpipe
out to the street. Matt Theisen commented that the frost has gone down
further than any other year he can remember. The water lines in this area
were lowered when the reconstruction was done as they had a history of
freezing prior to that. The city is now recommending running water to
keep the lines open for this neighborhood or in areas susceptible to
freezing. Glen Posusta asked why the city isn't using heat to keep the
lines open. Matt Theisen stated that they can't get a welder due to the
liability, and other sources for handling frozen lines are so busy they don't
have time.
City Council Minutes — February 24, 2014 Page 1
Clint Herbst asked if the city could pay the bill for these residents. Wayne
Oberg commented that he contacted the City Attorney who said the city
should not use city funds to pay for private services, as our ordinance
makes the residents responsible for the lines between their house and the
standpipe, which is private property. Jeff O'Neill added that the lines
from the houses may have been installed by a private company and not by
the city. With the Adamski house, most of the line is frozen in the right -
of -way and street. Clint Herbst commented that he would like to see the
city, as a first resource, attempt to thaw out the lines and help the residents
before calling in outside services. Matt Theisen explained that the Water
Department will help with frozen lines in the right of way and street.
They usually use hot water to open the pipes, although there are instances
where they could not get a pipe open with water. Matt Theisen noted that
he has several professional services that he works with when needed. In
these cases, the plumber or welder turns the bill into the city.
Matt Theisen explained the freeze -ups he found in the two houses on
Oakview Circle. He noted that they have since talked to the surrounding
property owners and suggested that they turn on their water to keep their
pipes from freezing. Clint Herbst stated that he feels that the citizens
should be entitled to assistance with the unusually cold year, especially
when part of the frozen area is located in the city street. Wayne Oberg
suggested that the city cap the amount that they will reimburse. Glen
Posusta agreed and recommended maybe using a percentage.
CLINT HERBST MOVED TO REIMBURSE PROPERTY OWNERS TO
COVER COSTS FOR REMEDIATION OF FROZEN LINES IN CITY
RIGHT OF WAY BETWEEN THE STANDPIPE AND CITY MAIN
LINES, PROVIDED THAT THEY WORK WITH THE CITY TO FIX
THE PROBLEM. LLOYD HILGART SECONDED THE MOTION.
MOTION CARRIED 5 -0.
2) Rick Adamski also mentioned that Caribou Coffee on Hwy 25 has not
been clearing their sidewalks along Hwy 25. City staff will check it out.
2) Public Service Announcements:
1) Spring Tree Sale (2/28) — Tom Pawelk invited city residents to order trees
for their property. The order form was sent out with the water bills and
residents can order up to three trees at a cost of $35 each. The deadline
for ordering is Friday, February 28th.
2) Public Open House I -94 Reconstruction Project (3/3) — Angela Schumann
stated that MnDOT will be holding an open house on Monday, March Yd
at MCC from 3:30 -5:30 p.m. for businesses and 6 -8:30 p.m. for residents.
City Council Minutes — February 24, 2014 Page 2
MnDOT will discuss the I -94 reconstruction project between County Road
18 and Hwy 25 overpasses. The project is anticipated to begin in April.
3) Breakfast with the Bunny — Angela Schumann reported that Swan River
PTO is hosting Breakfast with the Easter Bunny as a fundraiser on April
12, 2014 at the Monticello Community Center. More details to come.
3) Updates:
1) Highway Liquors report and DMV report
Wayne Oberg led off the presentation on both of these departments. He
talked about the mission statement and core values established for the
DMV. In 2013 the DMV had revenues and expenditures of $456,384 and
$301,500 respectively with net change of $154,884. The annual
transaction count was 62,420 which was a slight decrease from 2012.
Brian Stumpf asked if any dealer accounts were dropped or what affected
the decrease. Wayne Oberg said no accounts were lost and the manager
felt the change was due to the economy more than anything else. Clint
Herbst asked whether the DMV office would be authorized to issue full
driver's licenses in the future. Wayne Oberg will have Manager Ann
Eckman contact the Mayor on the status of that. Oberg noted that the
DMV does handle simple driver's license transactions that don't require a
photo.
Hi Way Liquors also established a mission statement. Wayne Oberg
commented that the real mission of the liquor store is to make money.
Manager Randall Johnsen went through revenues by various categories
resulting in increases in each area over the past five years: 16% for beer,
24% for liquor, and 50% for wine. The city's store is third in the state for
municipal liquor stores with only one store. Randall Johnsen pointed out
that the store broke the $5 million mark in sales last year. Beer is the most
popular sale item at 50% of sales with liquor sales at 30% and wine at
17 %. Craft beers are definitely a hot trend. Annual sales have slowly
increased since 2008, which is a good steady trend. This shows that the
prices are good and customers are getting good service. Randall Johnsen
also showed the gross profit margin was 26% for 2013, which is a good
average that has been maintained over the past years.
Randall Johnsen announced the Spring Wine Tasting on Friday, May 2nd
followed by a wine sale during the following week. Hi Way Liquors has
been named as the best liquor store in the Great River Readers' Choice
awards for several years.
City Council Minutes — February 24, 2014 Page 3
Lloyd Hilgart asked if Randall Johnsen had net profit numbers. Wayne
Oberg noted that the net change between revenues and expenditures was
$688,021 for 2013.
Wayne Oberg noted that the annual DMV survey from the public was
quite positive and thanked the DMV and liquor store staff for their service.
2) Clint Herbst thanked the MCC for hosting the Winter Block Party that was
held on Saturday, February 22nd. It was a great success with many people
attending. Kitty Baltos commented that they plan to do this again next
year.
5. Consent Agenda:
A. Consideration of approving payment of bills for February 24th.
Recommendation: Approve the bill and purchase card registers for payment in
the total amount of $515,645.89.
B. Consideration of approving new hires and departures for City departments.
Recommendation: Ratify new hires and terminations for MCC and Streets.
C. Consideration of approving a Conditional Use Permit for Vehicle Sales and
Rental in a B -4 (regional business) District for Lot 1, Block 1, 90t' Street 2nd
Addition (3801 Chelsea Rd W). Applicant: Dell, Inc. /Quality RV.
Recommendation: Approve the Conditional Use Permit for Vehicle Sales and
Rental in a B -4 (Regional Business) District for Lot 1, Block 1, 90th Street 2nd
Addition for Quality RV /Dell, Inc., based on findings in Planning Commission
Resolution #2014 -010 and subject to conditions in Exhibit Z as follows.
• The applicant will prepare a certificate of survey and submit it for final review
prior to occupancy.
• Signage plans will be submitted for permits in accordance with sign ordinance
allowances and processing.
D. Consideration of adopting Ordinance #588 amending the Monticello Zoning
Ordinance, Chapter 6 — Non - Conformities, Section 6.2. Applicant: City of
Monticello. Recommendation: Adopt Ordinance #588 amending Zoning
Ordinance, Section 6.2 as follows:
Section 62 — Authority to Continue (Non- Conformities)
(A) Legally conforming existing structures and uses in existence on the effective date
of this ordinance as denoted in Section 1.4 which become non - conforming to this
ordinance shall *of be considered legally non- conforming, but irk and shall
be treated as follows:
(1) A use which is no longer permitted due to a change in zoning shall be
considered a legally non- conforming use subject to all conditions for such
City Council Minutes — February 24, 2014 Page 4
use as outlined in this ordinance, and shall not be expanded, except that
legally non - conforming owner - occupied residential uses may be expanded
to improve livability, provided the expansion meets all other applicable
conditions of the zoning district in which the residential use is located and
does not increase any existing non - conforming condition on the property,
including the number of residential units in a building
(2) A structure which becomes non - conforming to a required setback or setbacks
shall be viewed as a legally non - conforming structure. suloet to -the
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E. Consideration of adopting Resolution #2014 -012 accepting a petition and calling
for a public hearing for vacation of a portion of Otter Creek Road right -of -way
and for vacation of drainage and utility easements ( Outlot A and Lots 1 -2, Block
],Pine View Addition). Applicant: K.K. Construction, Inc./Kjellberg, Kent.
Recommendation: Adopt Resolation #2014 -012 accepting petition from K.K.
Construction, Inc. and calling for a public hearing on March 24, 2014 to consider
vacation of a portion of Otter Creek Road right -of -way and vacation of drainage
and utility easements over Outlot A and Lots 1 and 2, Block 1, Pine View
Addition.
F. Consideration of adopting Interim Ordinance #590 allowing places of Public
Assembly on a temporary basis as a principal or accessory use in a B -3 (Highway
Business) District by Interim Use Permit and approving an Interim Use Permit for
a Place of Public Assembly in a B -3 District. Applicant: Faith Family Life
Center. Recommendation: Decision 1: Adopt Interim Ordinance #590 allowing
places of Public Assembly on a temporary basis as a principal or accessory use in
a B -3 (Highway Business) District by interim use permit; Decision 2: Approve an
Interim Use Permit for a Place of Public Assembly in a B -3 District for Faith
Family Life Center.
Angela Schumann noted that Item 5F received unanimous recommendation for
both decisions from the Planning Commission at their special meeting.
G. Consideration of extending the Public Works Director interim assignments and
compensation for an additional six months. THIS ITEM WAS REMOVED
FROM THE CONSENT AGENDA.
H. Consideration of reducing the retainage to MBI for Sludge Dewatering Facility
Improvements, City Project No. 12C003. THIS ITEM WAS REMOVED
FROM THE CONSENT AGENDA.
City Council Minutes — February 24, 2014 Page 5
Consideration of approving a request for one -year extension of a Conditional Use
Permit for an antenna support structure in a R -2 (Single and Two - Family
Residential) District, and a request for one -year extension of a Conditional Use
Permit for co- location of wireless telecommunication service antenna.
Applicants: City of Monticello and Verizon Wireless. THIS ITEM WAS
REMOVED FROM THE CONSENT AGENDA.
BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH THE
REMOVAL OF ITEMS G, H, AND I. GLEN POSUSTA SECONDED THE MOTION.
MOTION CARRIED 5 -0.
6. Consideration of items removed from the consent asenda for discussion
SG. Consideration of extending the Public Works Director interim assignments and
compensation for an additional six months
Tom Perrault removed this item because he wants more information on the work that is
being done for the extra compensation and that the compensation matches the work
levels. Glen Posusta stated that he would also like some verification of the workload
change for the employees that are involved. Jeff O'Neill indicated that staff is asking for
extra time to look at the workload. He inquired if Council would like a pay equity
analysis completed based on the past six months.
GLEN POSUSTA MOVED TO TABLE UNTIL THE MARCH 10TH, 2014 COUNCIL
MEETING AND DIRECT THE CITY ADMINISTRATOR TO PERFORM AN
ANALYSIS TO DETERMINE THAT THE WORK NORMALLY PERFORMED BY
THE PUBLIC WORKS DIRECTOR IS BEING HANDLED AND TO REVIEW THE
PAY EQUITY POINTS FOR THE EMPLOYEES INVOLVED. TOM PERRAULT
SECONDED THE MOTION. MOTION CARRIED 5 -0.
Clint Herbst commented that this had been discussed at a Personnel Committee meeting
and consensus was to look at the job over a full year rather than six months. He concurs
with the decision to look at the pay equity points at this time.
5H. Consideration of reducing the retainage to MBI for Sludge Dewatering Facility
Improvements, City Project No. 12CO03
Glen Posusta pulled this item because he wanted to know why the city would reduce the
retainage if the city's policy is to retain 5% to make sure the work gets completed. Glen
Posusta also commented on repair /replacement of the digester lid.
Bret Weiss explained that the city normally holds 5% retainage but the contractor can
request a reduction, which is somewhat typical. The city still holds a bond on the project
and there are additional funds available beyond the retainage, so there is no concern over
the job being completed. Bret Weiss stated that MBI has been very responsive to getting
the work done and has completed everything that has been asked of them. Bret Weiss
City Council Minutes — February 24, 2014 Page 6
also indicated they are aware of the need to come back to Council with a
recommendation on the digester tank for the future.
BRIAN STUMPF MOVED TO APPROVE THE REDUCTION IN RETAINAGE TO
2.5% ($33,672.28) AND AUTHORIZE PAYMENT OF $33,672.28 TO MUNICIPAL
BUILDERS, INC. LLOYD HILGART SECONDED THE MOTION. MOTION
CARRIED 4 -1 WITH GLEN POSUSTA VOTING IN OPPOSITION.
51 Consideration of approving a request for one-year extension of a Conditional Use
Permit for an antenna support structure in a R -2 (Single and Two - Family Residential)
District, and a request for one-year extension of a Conditional Use Permit for co-
location of wireless telecommunication service antenna. Applicants: City of
Monticello and Verizon Wireless
Tom Perrault pulled this item to get an update on the status of the tower project. Jeff
O'Neill explained that the CUP expires after six months and Verizon wished to extend
the CUP as the project bidding process is not complete. O'Neill noted that it is expected
to bring something to Council before long.
GLEN POSUSTA MOVED TO APPROVE BOTH DECISIONS 1 AND 2
EXTENDING FOR ONE YEAR THE SEPTEMBER 9r ", 2013 CONDITIONAL USE
PERMIT FOR AN ANTENNA SUPPORT STRUCTURE IN AN R -2 (SINGLE AND
TWO FAMILY RESIDENTIAL) DISTRICT AND EXTENDING FOR ONE YEAR
THE SEPTEMBER 9TH, 2013 CONDITIONAL USE PERMIT FOR CO- LOCATION
OF WIRELESS TELECOMMUNICATION SERVICE ANTENNA FOR VERIZON
WIRELESS; BOTH APPROVALS SUBJECT TO ALL PREVIOUS CONDITIONS.
BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 4 -1 WITH
LLOYD HILGART VOTING IN OPPOSITION.
7. Restular Agenda:
A. Public Hearing — Consideration of adopting Resolution #2014 -013 approving the
Phosphorus Reduction Facility Plan Amendment for the Wastewater Treatment
Facility to maintain compliance with NPDES permit requirements
Bret Weiss of WSB introduced Tom Roushar who presented this item for
consideration of approval of the Phosphorus Reduction Facility Plan Amendment.
Tom Roushar explained that the Minnesota Pollution Control Agency (MNPCA)
requires a public hearing to be held as part of the process for approving the
Facility Plan Amendment. Tom Roushar provided a slide presentation regarding
the new phosphorus reduction regulations for the NPDES permit. He reviewed
the existing NPDES permit and phosphorus levels currently allowed at the
Wastewater Treatment Facility. He discussed the timeline for submitting the plan
amendment and to meet compliance with the new standards, with the Plan
Amendment to be submitted by March 1, 2014 and the final compliance date set
at December 31, 2018. Tom Roushar discussed the alternatives for phosphorus
City Council Minutes — February 24, 2014 Page 7
reduction by either a biological or chemical method, with the chemical method
recommended. Tom Roushar next went through a cost analysis of biological and
chemical phosphorus reduction methods, comparing capital cost, operation and
maintenance costs, and a present worth analysis to determine cost - effectiveness.
Under the chemical method (chem. P), the annual cost for operation and
maintenance is estimated at $72,500. The capital costs are expected to total over
$1 million. However, the overall chem P process was less costly.
Implementation of chem P will require: installation of two mixers in each of the
three SBR basins; installation of a chemical feed system which includes a
building to house two bulk chemical storage tanks, a day tank, a scale, and
chemical feed pumps; and chemical feed distribution to each of the three SBR
basins. The capital cost also includes new diffuser membranes for the SBR tanks,
which is not related to the phosphorus reduction, but those membranes would
need to be replaced and the cost could be absorbed into an anticipated low cost
loan.
Next steps will include determination of financing, determination of the schedule
to meet compliance, and implementation of a rate increase to cover ongoing costs.
Tom Roushar noted that the public hearing must address the effect on water and
sewer rates for the phosphorus reduction implementation and ongoing costs. It's
estimated that the rate increase would amount to $.33/748 gallons or
approximately 10% based on volume. The city could contemplate adding a
surcharge to users that generate higher phosphorus levels, such as car washes.
Clint Herbst asked if the city would have a better chance for a grant award if they
act as soon as possible to implement the changes. Brian Stumpf asked if there
was a possibility that the state would be inundated with requests and would decide
not require the reduction in phosphorus levels. Bret Weiss stated that this
requirement is driven by the federal government and the phosphorus reduction
program will not go away. Bret Weiss explained that the city could adopt a
timeline to start the capital improvements in the near future to have the structure
in place before the compliance deadline, and then start using the chemicals when
they are needed. WSB will be looking into the grant program.
Tom Perrault had some questions about the facility plan amendment document.
He wondered if the chemicals would have any adverse reactions or cause
corrosion to the equipment. Tom Roushar stated that the chemicals should not
cause corrosion but the polymers used in the sludge dewatering process may need
to be adjusted if there are adverse reactions. Tom Roushar noted that his staff will
be going over the draft copy to finalize it before submitting to the MNPCA. Final
copies will be provided for Council and city staff.
Mayor Herbst opened the public hearing. As there were no comments, the public
hearing was closed.
City Council Minutes — February 24, 2014 Page 8
LLOYD HILGART MOVED FOR ALTERNATIVE #1 TO ADOPT
RESOLUTION #2014 -013 ACCEPTING THE PHOSPHORUS REDUCTION
FACILITY PLAN AMENDMENT FOR THE MONTICELLO WASTEWATER
TREATMENT FACILITY AND DIRECT WSB TO SUBMIT THE PLAN
AMENDMENT TO MNPCA BY MARCH 1sT, 2014. BRIAN STUMPF
SECONDED THE MOTION. MOTION CARRIED 5 -0.
In addition, WSB is requested to update the city's placement on the Public
Facilities Authority Project Priority List and research the possibility of obtaining a
grant through the Point Source Implementation Grant program. City Council
would be interested in speeding up the implementation of the phosphorus
reduction requirements.
B. Consideration of adopting Resolution #2014 -014 authorizing submission of a
2014 Outdoor Recreation Grant application for 50% match grant funding for land
acquisition at the Bertram Chain of Lakes Regional Park
Angela Schumann introduced this item with a presentation related to the proposed
Phase VIII land acquisition and grant application for funding the acquisition.
Staff is proposing to submit two grant applications, of which one would support
the acquisition of the remaining 10.62 acres of Parcel 1 and the other would
facilitate the acquisition of 20 acres of Parcel 2, which totals 39.89 acres.
The acreage proposed in the grant application represents critical land area for the
active recreational area of the park, which would become the Bertram Chain of
Lakes Regional Athletic Complex. Angela Schumann pointed out that the
Outdoor Recreation Grant program is the only one that funds acquisition for
active recreation area development. If awarded, this would be a matching grant
with the city and county each providing a share of $282,750 plus closing and
appraisal costs.
Rationale for the grant applications include: $350,736 in Outdoor Recreation
grant funds is available, maximum award for a single application is $100,000,
applications must include at least a 50% match, and two applications provide an
opportunity to access up to $200,000 in grant awards.
Brian Stumpf expressed his thanks for the work that the county and city has put
into all of the grant applications.
BRIAN STUMPF FOR ALTERNATIVE #1 TO ADOPT RESOLUTION #2414-
014 AUTHORIZING SUBMISSION OF TWO GRANT APPLICATIONS
THROUGH THE 2014 OUTDOOR RECREATION GRANT PROGRAM ON
BEHALF OF THE CITY OF MONTICELLO AND WRIGHT COUNTY. GLEN
POSUSTA SECONDED THE MOTION. MOTION CARRIED 4 -1 WITH TOM
PERRAULT VOTING IN OPPOSITION.
City Council Minutes — February 24, 2014 Page 9
Tom Perrault asked about the grant application resolution as to whether the city
has a purchase agreement in place for the land acquisitions. Angela Schumann
confirmed that the City and/or County does not have a purchase agreement with
the YMCA.
8. Added items
No items were added to the agenda.
9. Adjournment
TOM PERRAULT MOVED TO ADJOURN THE MEETING AT 8:45 P.M. GLEN
POSUSTA SECONDED THE MEETING. MOTION CARRIED 5 -0.
Recorder: Catherine M. Shuman Cpe
Approved: March 10, 2014
Attest:
Ci inistrator
City Council Minutes — February 24, 2014 Page 10