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City Council Minutes 11-23-1992MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, November 23, 1992 - 7 p.m. Members Present: Ken Maus, Shirley Anderson, Clint Herbst, Dan Blonigen, Brad Fyle Members Absent: None 2. Approval of minutes. After discussion, a motion was made by Dan Blonigen and seconded by Brad Fyle to accept the minutes of the regular meeting held November 9, 1992, as presented. Motion carried unanimously. 3. Citizens comments/petitions, requests, and complaints. None forthcoming. 4. Consideration of approving agreement with Monticello Baseball Association for reimbursement of a portion of the lighting cost at the NSP ballfields. City Administrator, Rick Wolfsteller, reported that in 1992 the Council authorized installation of lighting for two fields at the NSP ballpark complex. As part of the decision to light the fields, the Monticello Baseball Association and the Monticello Men's Softball Association agreed to help defray the cost of the lighting project. The Baseball Association agreed to contribute $1,000 per year for 10 years, and the Softball Association pledged a contribution of $5,000 over 10 years. Wolfsteller noted that while the Baseball Association's commitment was acknowledged by the Council in February of 1992 as part of the decision to light the ballfields, he also has now prepared an agreement of understanding that should be of record which outlines the 10 -year commitment by the association. Wolfsteller also stated that the Baseball Association is supportive of the agreement. Wolfsteller also informed Council that he will be preparing an agreement with the Monticello Softball Association indicating their pledge of $500 per year starting at the conclusion of the 1993 season for a period of 10 years. This agreement requires that the Softball Association will reimburse the City for electrical costs associated with the lighting of the fields. Page 1 Council Minutes - 11/23/92 Roger Pribyl was in attendance to represent the Baseball Association. Pribyl noted the Baseball Association's support for the proposed agreement, and he submitted a check in the amount of $1,000 to the City of Monticello as their first installment toward their 10 -year commitment. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to accept the $1,000 payment and adopt the agreement with the Monticello Baseball Association for reimbursement of a portion of the lighting cost at the NSP ballfields. Motion carried unanimously. 5. Consideration of adopting an ordinance amendment setting minimum standards for commercial dog kennels. Rick Wolfsteller reviewed the proposed ordinance amendment. Wolfsteller reported that the main purpose of the ordinance amendment is to specifically outline requirements for dog kennels as a preventative measure. Wolfsteller noted that other cities have been unable to stop inhumane treatment of animals at dog kennels because their ordinances are not specific. The proposed ordinance is designed to prevent possible problems from arising should a commercial kennel be started in Monticello. Council reviewed the proposed ordinance. After discussion, staff was directed to review the ordinance for consistency with the sections of the zoning ordinance that address dog kennels and have the City Attorney review the document as well. 6. Consideration of reviewing the animal control program and agareement with Patty Salzwedel. Rick Wolfsteller reported that in June of 1992, Council approved the renewal of the animal service agreement with Patty Salzwedel, which included increasing the monthly compensation from $1,000 to $2,000 per month. Wolfsteller stated that Patty had been requesting an even larger increase in her compensation package due to the large increase in animal impoundments, complaints, and other duties she has been handling under her contract. Council action in June was to increase the compensation by $1,000 per month and attempt to reduce the number of hours being spent on animal control activities wherever possible. Page 2 Council Minutes - 11/23/92 Wolfsteller reported that after reviewing the activity for 1992, the number of impoundments, complaints, and inquiries concerning cats and dogs is continuing to increase over 1991. It was hoped that hours could be reduced; however, it does not appear possible at this time. As part of the contract renewal in June, we did agree to reduce the expected hours of availability from 8 a.m. to 6 p.m. rather than 8 a.m. to 8 p.m. In addition, we allowed Patty to reduce the weekend hours by allowing her not to respond to calls every other Saturday and only for emergency calls on Sundays. Wolfsteller went on to note that while having more reasonable hours has been appreciated by Patty, the actual work load has not decreased and that the number of animals impounded continues to rise and complaints and questions still have to be responded to. Calls that she would have normally responded to in the evenings are now usually delayed until the next morning; but the increase in incidents continues to show steady growth. Since City Council did agree to review the program after six months, Patty still feels that she is required to work the 200 hours per month to provide the level of service the citizens have been accustomed to. Though the reduction in weekend hours is much appreciated, she is still requesting Council consideration of the additional $200 per month. If her hours remain at 200 hours per month on an average, her compensation is approximately $9 an hour after deducting her mileage expenditures. Rick Wolfsteller reported that the request made by Salzwedel is fair, and the increase in compensation will not affect our net program cost on an annual basis, as our revenue from other communities has increased because of our change in disposal costs being charged. In addition, we are able to save a substantial amount of money ($6,000) in euthanization cost now that Patty is willing to perform the service for the City. Brad Fyle noted that he had received no complaints regarding our animal control service provided to citizens. Patty has done a fine job. In addition, there has been a substantial increase in complaints this year, which has added to her work load. He also noted, however, that the proposed increase is large and at some point we will need to put the animal control contract out for bids. After discussion, a motion was made by Clint Herbst and seconded by Dan Blonigen to increase the monthly rate from $2,000 to $2,200. Voting in favor of the motion: Dan Blonigen, Clint Herbst, Ken Maus, Shirley Anderson. Opposed: Brad Fyle. Page 3 Council Minutes - 11/23/92 7. Consideration of a resolution authorizing the issuance of G.O. taxable increment bonds--Aroplax Corp. Rick Wolfsteller reported that as part of the tax increment financing plan for Aroplax Corporation, TIF 1-12, a TIF grant in the amount of $70,000 for land write-down will occur when the new building is 30% complete. In addition, a $15,000 loan will be disbursed at 30% completion of the building, making the total assistance to Aroplax at $85,000. Additional administrative and professional fees inccurred to date for tax increment project related financing packages total $20,500. Based on the projected tax increment revenue for this project, a $120,000 bond issue would be the maximum financing amount available. A $120,000 bond issue would include $9,750 for capitalized interest to cover interest expense through February 1, 1994, the first year tax increment revenue would be received. Wolfsteller noted that originally the financing for Aroplax called for the issuance of a general obligation taxable bond issue. Wolfsteller went on that given the high bond issuance cost and difficulty in obtaining more than 3% to 4% interest on investments on a short-term basis, it makes more sense financially to have the City loan the funds to the HRA for the tax increment project than sell the bonds on the open market. Wolfsteller went on to recommend that Council adopt a resolution authorizing issuance of the bonds. Due to the high issuance cost of a normal bond issue ($12,000 to $15,000), Wolfsteller noted it did not seem feasible to structure the bond issue for sale to the public since the City has the funds available and could use a good investment at this time. Under this scenerio, the City would be actually lending $120,000 to the HRA at 6 1/2%, which is better than the City could get if it invested the money on the open market. Structuring the bonds internally would allow the City to sell them on an open market if need be in the future and save the City $10,000 to $12,000 in issuance costs. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to adopt a resolution authorizing the issuance of $120,000 in general obligation taxable tax increment bonds, Series 1992, for the Aroplax TIF District. Motion carried unanimously. SEE RESOLUTION 92-32. Page 4 Council Minutes - 11/23/92 8. Consideration of resolution authorizing issuance of $535,000 in general obligation refunding bonds, Series 1993 (A). Rick Wolfsteller reported that the City currently has two outstanding bond issues that are eligible for possible refinancing. The largest issue was a 1985 general obligation bond for the fire hall, with an outstanding balance of $475,000 for which we are paying an average interest rate of 8.8%. The City also has $40,000 remaining on the 1984 general obligation improvement bonds that are callable on February 1, 1993. This issue has an interest rate averaging 8.93%. Jerry Shannon of Springsted, Inc., was in attendance. He said he is somewhat nervous about the stability in bond market interest rates; a swing of 5% interest will erode a significant amount of the potential savings. He expects, however, that the proposed refinancing will save the City, at a minimum, $32,000 to $38,000. After discussion, a motion was made by Shirley Anderson and seconded by Dan Blonigen, to adopt a resolution authorizing the issuance of $535,000 in general obligation refunding bonds with a sale date of December 14 or December 21, the specific date to be selected by Springsted, Inc.. Motion carried unanimously. SEE RESOLUTION 92-33. 9. Consideration of a resolution requesting reimbursement from MN/DOT state aid funds for the 7th Street right-of-way purchase --Mary Kramer property. Rick Wolfsteller reported that the City entered into a purchase agreement with Marvin and Deborah Kramer for the purchase of their property, which will be used for future 7th Street right-of-way. As part of the process to obtain state aid funds for the cost of this roadway, OSM has prepared a 7th Street alignment plan and proposed reconstruction design, which has already been submitted and approved by MN/DOT. The next step in the process is for the City Council to adopt a resolution requesting reimbursement for the $149,307.34 in acquisition cost. Wolfsetller went on to recommend that the City Council adopt the resolution requesting reimbursement. The request will use up the remaining 1992 state aid funds and a portion of the 1993 allotment. Page 5 Council Minutes - 11/23/92 After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to adopt a resolution requesting reimbursement from state aid funds for the Kramer property right-of-way acquisition. Motion carried unanimously. SEE RESOLUTION 92-34. 11. Consideration of iackina under Burlington Northern Railway for culvert to drain public works property. John Simola reported that the drainage from the public works site located on West County Road 39 flows to the Burlington Northern Railway ditch, then goes northwest along the railroad tracks and drops into the low area behind West Cello Apartments, then goes northerly under the Burlington Northern Railroad through an existing culvert. The drainage basin behind the West Cello Apartments was not completed by West Cello as designed or has been obliterated due to erosion and lack of maintenance. Simola stated that the proposal calls for interrupting the flow of storm water from the public works facility onto the West Cello property by taking it north underneath the railroad tracks through a new culvert. The Burlington Northern Railway company is giving us a permit for construction of the culvert. The cost of the railroad permit along with the culvert would bring the total cost to about $5,000 utilizing Twin City Tunneling. As a second alternative, the City could continue to drain the water to the railroad ditch onto the West Cello Apartment site. Under this alternative, we would have to work with West Cello Apartments and attempt to get their drainage basin constructed properly so that our water does not affect their property. Using this alternative could result in periodic maintenance problems for the City for years to come. Simola went on to recommend that the City Council authorize installation of the casing at a total cost of $5,000. Clint Herbst suggested that the City consider working with the property owner prior to spending $5,000 on a new culvert. Dan Blonigen concurred that the City should make an effort to work with the property owner prior to developing a new culvert. Page 6 Council Minutes - 11/23/92 After discussion, a motion was made by Brad Fyle and seconded by Dan Blonigen to take no action at this time to construct a new culvert and direct City staff to contact the adjoining property owner to determine if he would like to work cooperatively with the City to manage storm water problems in the area. Voting in favor: Brad Fyle, Dan Blonigen, Ken Maus, Clint Herbst. Opposed: Shirley Anderson. Shirley Anderson noted that she did not see a great problem with the cost and that, ultimately, it might be more efficient and less costly to simply handle the matter as proposed by City staff. 10. Consideration of adopting an ordinance amendment establishing speed limits for snowmobile operation. Rick Wolfsteller stated that at the previous Council meeting, Council reviewed citizen complaints regarding snowmobile use and discussed how the ordinance might be changed in an effort to provide more control. As part of the discussion, it was suggested that a 15 mph speed limit be established for snowmobiles operating on city streets. Wolfsteller noted that establishing a speed limit is relatively easy. Enforcement may be more difficult; however, including a speed limit restriction would provide the Sheriff's Department with another tool for issuing a citation to an obvious violator. In addition, Wolfsteller noted that apart from the ordinance, the City will continue to publish notices in the local newspaper that the City does have snowmobile restrictions which limit operation of a snowmobile on city streets for the purpose of entering and leaving the city only. Warren Smith was in attendance and noted that, as a police commissioner, he had received a number of complaints regarding operation of snowmobiles. He also noted, however, that the Police Commission had not had an opportunity to see the proposed ordinance amendment at this time. Dan Blonigen was concerned that a 15 mph speed limit may not be realistic, as the machines are not designed to operate at such a slow level. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to adopt an ordinance amendment to Title 6, Chapter 5, Section 2 C, by creating a 15 mph speed limit for snowmobile operations within the city of Monticello. Motion carried unanimously. SEE ORDINANCE AMENDMENT NO. 233. Page 7 Council Minutes - 11/23/92 12. Consideration of policy for city sewer cleaning services for private lines. John Simola reported that the City of Monticello Ordinance places liability for repairs of sanitary services on the property owner. The property owner's liability extends from the City's sewer main to the home. Liability for repairs also includes any street or sidewalk replacement due to the repair of private sewer service. Simola requested that the City Council consider adopting a policy for providing sewer cleaning services for private sanitary sewers. Simola noted that this request for clarification stems from instances where the City is requested to provide sewer rodding services for a portion of what is now considered to be the private sewer line. Simola noted that this service is now available at a local level; and it may, therefore, not make sense for the City to be providing this service except under unique situations. Brad Fyle noted his concern over the present policy which makes home owners liable for the sewer service from home to the street. He noted that the City bids out all projects and has complete control of the installation of the sewer line from the main to the property line; but the home owners pick up the liability for long-term maintenance. Brad Fyle asserted that the City should be responsible for maintaining the individual service lines from the main to the property line. John Simola responded by saying that one of the reasons why the present policy was adopted 10 years ago was because every time an individual property owner had a problem with their private sewer line, the first thing they would do is call city hall to make sure that the service line between the main and the property line was clear. Determining if the problem was located somewhere between the main and the property line required considerable effort; and in the majority of cases, the problem with the private line was somewhere between the property line and the home. Brad Fyle noted that he agreed that the City should not do any sewer rodding service on private property and that individual property owners should pay for the cost to have the City service that portion of the sewer line on city property. Clint Herbst noted that the City should keep its hands out of private industry and that the City should not be involved in cleaning services if equipment and manpower is available in the private sector. Council Minutes - 11/23/92 A motion was then made by Brad Fyle to adopt a policy which would require that the City be responsible for maintaining sewer service stubs. The City would provide sewer rodding service for sewer stubs up to the city property line only. The cost for this service is to be paid by the property owner benefiting from the service. Motion died for lack of a second. A motion was then made by Clint Herbst and seconded by Dan Blonigen to adopt a policy for providing sewer cleaning services for private sanitary sewers as follows: 1. The City will not provide sewer cleaning services for private sanitary sewer services or systems. 2. The above does not preclude the City or subcontractor of the City assisting with sanitary sewer repairs to private sewer lines or systems when an emergency exists that could interrupt the City's sewer collection system or when a threat to public safety exists. Authorization to provide assistance under these circumstances must come from the City Administrator or, in his absence, the Public Works Director. The cost incurred by the City which directly benefits a single contractor or property will be billed to the appropriate party. Voting in favor of the motion: Clint Herbst, Dan Blonigen, Shirley Anderson, Ken Maus. Opposed: Brad Fyle. 13. Consideration of approval of bills for the month of November. A motion was made by Shirley Anderson and seconded by Brad Fyle to approve the bills as submitted. Motion carried unanimously. 14. Other matters. A. A motion was made by Brad Fyle and seconded by Dan Blonigen to appoint Brian Stumpf to the vacant position on the Planning Commission. Motion carried unanimously. Page 9 Council Minutes - 11/23/92 B. John Simola reported on the recent odor problems at the wastewater treatment plant. Simola reported that the level of sulfuric acid coming from the Sunny Fresh facility is high, and the cost to treat this affluent is expensive. They have spent $5,000 on chemicals to treat the problem. Simola went on to report that he is working with Sunny Fresh on ways to manage the problem in a cost-effective basis. There being no further business, the meeting was adjourned. Jeff O'Neill Assistant Administrator Page 10